SpartanNash Announces Third Quarter Fiscal 2020 Financial Results
SpartanNash reported Q3 2020 net sales of $2.06 billion, a 3.1% increase from the previous year. This marks the 18th consecutive quarter of growth. The adjusted EPS rose 133% to $0.70, with adjusted EBITDA increasing 37.2% to $57.0 million. Retail comparable store sales grew 10.6%, while military distribution faced a 9.5% drop in sales due to COVID-19 restrictions. The company updated its fiscal 2020 guidance, projecting adjusted EPS between $2.42 and $2.50, reflecting uncertainties from stock warrants.
- Net sales increased by 3.1% to $2.06 billion.
- Adjusted EPS rose 133% to $0.70.
- Adjusted EBITDA increased 37.2% to $57.0 million.
- Retail comparable store sales grew by 10.6%.
- Military Distribution net sales decreased by 9.5%.
GRAND RAPIDS, Mich.--(BUSINESS WIRE)--SpartanNash Company (the “Company”) (Nasdaq: SPTN) today reported financial results for its 12-week third quarter ended October 3, 2020.
Third Quarter Fiscal 2020 Highlights
-
Net sales growth of
3.1% to$2.06 billion from$2.00 billion in the prior year quarter, representing the eighteenth consecutive quarter of growth. -
Retail comparable store sales of
10.6% were positive for the fifth consecutive quarter. -
EPS of
$0.56 per share, compared to a loss of$(0.01) per share in the prior year quarter; adjusted EPS of$0.70 per share, an increase of133% over$0.30 per share in the prior year quarter. -
Adjusted EBITDA increase of
37.2% , to$57.0 million from$41.6 million in the prior year quarter. - Subsequent to the end of the third quarter, the Company extended its commercial agreement with Amazon. In connection with this agreement, the Company issued stock warrants to a subsidiary of Amazon, subject to certain vesting conditions.
“In the past nine weeks since taking the CEO position I’ve visited a great number of our distribution centers and retail stores. The passion demonstrated by our associates is nothing short of inspirational,” said Tony Sarsam, President and Chief Executive Officer. “I am energized and excited about the profitable growth opportunities that lie ahead for our business. As I immerse further into our business, I will continue to assess our long-term strategy, focus on motivating our associates and recognizing their accomplishments, identifying opportunities to make investments to improve the efficiency and effectiveness of our supply chain, and evaluating how to best position SpartanNash to deliver shareholder value for years to come.”
Consolidated net sales for the third quarter increased
Gross profit for the third quarter was
Reported operating expenses for the third quarter were
The Company reported operating earnings of
Interest expense decreased
The Company reported earnings from continuing operations of
Adjusted EBITDA(3) increased
Please see the financial tables at the end of this press release for a reconciliation of each non-GAAP financial measure to the most directly comparable measure, prepared and presented in accordance with GAAP.
Segment Financial Results
Food Distribution
Net sales for Food Distribution increased
Reported operating earnings for Food Distribution were
Retail
Net sales for Retail increased
Reported operating earnings for Retail were
Military Distribution
Net sales for Military Distribution decreased
The reported operating loss for Military Distribution was
Balance Sheet and Cash Flow
Cash flows provided by operating activities for the year-to-date period of fiscal 2020 were
Capital expenditures and IT capital(6) totaled
Through the third quarter of fiscal 2020, the Company has declared
Outlook
For the 53-week fiscal year ending January 2, 2021, the Company is updating its annual outlook from what was previously provided on August 12, 2020 to reflect actual financial results, its expectations for the remainder of the fiscal year, and the forecasted impact of stock warrants, which were granted early in the fourth quarter.
For fiscal year 2020, the Company now anticipates adjusted earnings per share from continuing operations(7) of approximately
The Company now expects fiscal 2020 adjusted EBITDA to range from
The Company's updated guidance now reflects capital expenditures and IT capital in the range of
Conference Call
A telephone conference call to discuss the Company’s third quarter 2020 financial results is scheduled for Thursday, November 12, 2020 at 8:00 a.m. ET. A live webcast of this conference call will be available on the Company’s website, www.spartannash.com/webcasts. Simply click on “For Investors” and follow the links to the live webcast. The webcast will remain available for replay on the Company’s website for approximately ten days.
About SpartanNash
SpartanNash (Nasdaq: SPTN) is a Fortune 400 company whose core businesses include distributing grocery products to a diverse group of independent and chain retailers, its corporate-owned retail stores and U.S. military commissaries and exchanges; as well as operating a premier fresh produce distribution network. SpartanNash serves customer locations in all 50 states and the District of Columbia, Europe, Cuba, Puerto Rico, Honduras, Bahrain, Djibouti and Egypt. SpartanNash currently operates 156 supermarkets, primarily under the banners of Family Fare, Martin's Super Markets, D&W Fresh Market, VG's Grocery and Dan's Supermarket. Through its MDV military division, SpartanNash is a leading distributor of grocery products to U.S. military commissaries.
Forward-Looking Statements
This press release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These include statements preceded by, followed by or that otherwise include the words “outlook,” “believe,” “anticipates,” “continue,” “expects,” “guidance,” “trend,” “on track,” “encouraged” or “plan” or similar expressions. The statements in the “Outlook” section of this press release are inherently forward looking. Forward-looking statements relating to expectations about future results or events are based upon information available to SpartanNash as of today's date, and are not guarantees of the future performance of the Company, and actual results may vary materially from the results and expectations discussed. Additional risks and uncertainties include, but are not limited to, disruption associated with the COVID-19 pandemic and the Company's ability to compete in the highly competitive grocery distribution, retail grocery, and military distribution industries. Additional information concerning these and other risks is contained in SpartanNash’s most recently filed Annual Report on Form 10-K, recent Current Reports on Form 8-K and other SEC filings. All subsequent written and oral forward-looking statements concerning SpartanNash, or other matters and attributable to SpartanNash or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. SpartanNash does not undertake any obligation to publicly update any of these forward-looking statements to reflect events or circumstances that may arise after the date hereof.
(1) A reconciliation of operating earnings to adjusted operating earnings, a non-GAAP financial measure, is provided in Table 3 below.
(2) A reconciliation of earnings from continuing operations to adjusted earnings from continuing operations, a non-GAAP financial measure, is provided in Table 4 below.
(3) A reconciliation of net earnings to Adjusted EBITDA, a non-GAAP financial measure, is provided in Table 2 below.
(4) A reconciliation of net cash provided by operating activities to free cash flow, a non-GAAP financial measure, is provided in Table 6 below.
(5) A reconciliation of long-term debt and finance lease obligations to net long-term debt, a non-GAAP financial measure, is provided in Table 5 below.
(6) A reconciliation of purchases of property and equipment to capital expenditures and IT capital, a non-GAAP financial measure, is provided in Table 7 below.
(7) A reconciliation of projected earnings per share from continuing operations to adjusted earnings per share from continuing operations, a non-GAAP financial measure, is provided in Table 8 below.
SPARTANNASH COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
||||||||||||||||||||
|
12 Weeks Ended |
|
|
40 Weeks Ended |
|
|
||||||||||||||
|
October 3, |
|
|
October 5, |
|
|
October 3, |
|
|
October 5, |
|
|
||||||||
(In thousands, except per share amounts) |
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
||||||||
Net sales |
$ |
|
2,060,816 |
|
|
$ |
|
1,999,808 |
|
|
$ |
|
7,101,373 |
|
|
$ |
|
6,538,112 |
|
|
Cost of sales |
|
|
1,735,994 |
|
|
|
|
1,709,447 |
|
|
|
|
6,014,610 |
|
|
|
|
5,581,015 |
|
|
Gross profit |
|
|
324,822 |
|
|
|
|
290,361 |
|
|
|
|
1,086,763 |
|
|
|
|
957,097 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
289,039 |
|
|
|
|
273,286 |
|
|
|
|
981,066 |
|
|
|
|
900,160 |
|
|
Merger/acquisition and integration |
|
|
242 |
|
|
|
|
— |
|
|
|
|
242 |
|
|
|
|
1,364 |
|
|
Restructuring charges and asset impairment |
|
|
6,543 |
|
|
|
|
1,296 |
|
|
|
|
20,455 |
|
|
|
|
10,215 |
|
|
Total operating expenses |
|
|
295,824 |
|
|
|
|
274,582 |
|
|
|
|
1,001,763 |
|
|
|
|
911,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings |
|
|
28,998 |
|
|
|
|
15,779 |
|
|
|
|
85,000 |
|
|
|
|
45,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expenses and (income) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
3,522 |
|
|
|
|
7,375 |
|
|
|
|
14,810 |
|
|
|
|
27,952 |
|
|
Loss on debt extinguishment |
|
|
— |
|
|
|
|
329 |
|
|
|
|
— |
|
|
|
|
329 |
|
|
Postretirement benefit expense (income) |
|
|
101 |
|
|
|
|
10,221 |
|
|
|
|
(597 |
) |
|
|
|
19,677 |
|
|
Other, net |
|
|
(141 |
) |
|
|
|
(180 |
) |
|
|
|
(547 |
) |
|
|
|
(1,071 |
) |
|
Total other expenses, net |
|
|
3,482 |
|
|
|
|
17,745 |
|
|
|
|
13,666 |
|
|
|
|
46,887 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before income taxes and discontinued operations |
|
|
25,516 |
|
|
|
|
(1,966 |
) |
|
|
|
71,334 |
|
|
|
|
(1,529 |
) |
|
Income tax expense (benefit) |
|
|
5,564 |
|
|
|
|
(1,656 |
) |
|
|
|
7,513 |
|
|
|
|
(1,973 |
) |
|
Earnings (loss) from continuing operations |
|
|
19,952 |
|
|
|
|
(310 |
) |
|
|
|
63,821 |
|
|
|
|
444 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of taxes |
|
|
— |
|
|
|
|
(27 |
) |
|
|
|
— |
|
|
|
|
(126 |
) |
|
Net earnings (loss) |
$ |
|
19,952 |
|
|
$ |
|
(337 |
) |
|
$ |
|
63,821 |
|
|
$ |
|
318 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing operations |
$ |
|
0.56 |
|
|
$ |
|
(0.01 |
) |
|
$ |
|
1.78 |
|
|
$ |
|
0.01 |
|
|
Loss from discontinued operations |
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
Net earnings (loss) |
$ |
|
0.56 |
|
|
$ |
|
(0.01 |
) |
|
$ |
|
1.78 |
|
|
$ |
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing operations |
$ |
|
0.56 |
|
|
$ |
|
(0.01 |
) |
|
$ |
|
1.78 |
|
|
$ |
|
0.01 |
|
|
Loss from discontinued operations |
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
Net earnings (loss) |
$ |
|
0.56 |
|
|
$ |
|
(0.01 |
) |
|
$ |
|
1.78 |
|
|
$ |
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
35,730 |
|
|
|
|
36,340 |
|
|
|
|
35,900 |
|
|
|
|
36,248 |
|
|
Diluted |
|
|
35,732 |
|
|
|
|
36,340 |
|
|
|
|
35,900 |
|
|
|
|
36,248 |
|
|
SPARTANNASH COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||||||
|
October 3, |
|
|
December 28, |
|
||||
(In thousands) |
2020 |
|
|
2019 |
|
||||
Assets |
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
|
26,903 |
|
|
$ |
|
24,172 |
|
Accounts and notes receivable, net |
|
|
387,114 |
|
|
|
|
345,320 |
|
Inventories, net |
|
|
586,351 |
|
|
|
|
537,212 |
|
Prepaid expenses and other current assets |
|
|
73,192 |
|
|
|
|
58,775 |
|
Property and equipment held for sale |
|
|
21,942 |
|
|
|
|
31,203 |
|
Total current assets |
|
|
1,095,502 |
|
|
|
|
996,682 |
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
562,326 |
|
|
|
|
615,816 |
|
Goodwill |
|
|
181,035 |
|
|
|
|
181,035 |
|
Intangible assets, net |
|
|
119,039 |
|
|
|
|
130,434 |
|
Operating lease assets |
|
|
269,025 |
|
|
|
|
268,982 |
|
Other assets, net |
|
|
94,632 |
|
|
|
|
82,660 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
|
2,321,559 |
|
|
$ |
|
2,275,609 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
Accounts payable |
$ |
|
501,099 |
|
|
$ |
|
405,370 |
|
Accrued payroll and benefits |
|
|
91,001 |
|
|
|
|
59,680 |
|
Other accrued expenses |
|
|
53,439 |
|
|
|
|
51,295 |
|
Current portion of operating lease liabilities |
|
|
43,705 |
|
|
|
|
42,440 |
|
Current portion of long-term debt and finance lease liabilities |
|
|
5,338 |
|
|
|
|
6,349 |
|
Total current liabilities |
|
|
694,582 |
|
|
|
|
565,134 |
|
|
|
|
|
|
|
|
|
|
|
Long-term liabilities |
|
|
|
|
|
|
|
|
|
Deferred income taxes |
|
|
52,952 |
|
|
|
|
43,111 |
|
Operating lease liabilities |
|
|
261,621 |
|
|
|
|
267,350 |
|
Other long-term liabilities |
|
|
48,033 |
|
|
|
|
30,272 |
|
Long-term debt and finance lease liabilities |
|
|
540,920 |
|
|
|
|
682,204 |
|
Total long-term liabilities |
|
|
903,526 |
|
|
|
|
1,022,937 |
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
|
|
|
|
|
|
|
Common stock, voting, no par value; 100,000 shares authorized; 35,871 and 36,351 shares outstanding |
|
|
484,612 |
|
|
|
|
490,233 |
|
Preferred stock, no par value, 10,000 shares authorized; no shares outstanding |
|
|
— |
|
|
|
|
— |
|
Accumulated other comprehensive loss |
|
|
(1,479 |
) |
|
|
|
(1,600 |
) |
Retained earnings |
|
|
240,318 |
|
|
|
|
198,905 |
|
Total shareholders’ equity |
|
|
723,451 |
|
|
|
|
687,538 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
|
2,321,559 |
|
|
$ |
|
2,275,609 |
|
SPARTANNASH COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
|||||||||
|
40 Weeks Ended |
|
|||||||
(In thousands) |
October 3, 2020 |
|
|
October 5, 2019 |
|
||||
Cash flow activities |
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ |
|
223,832 |
|
|
$ |
|
140,034 |
|
Net cash used in investing activities |
|
|
(35,536 |
) |
|
|
|
(117,645 |
) |
Net cash used in financing activities |
|
|
(185,565 |
) |
|
|
|
(17,385 |
) |
Net cash used in discontinued operations |
|
|
— |
|
|
|
|
(153 |
) |
Net increase in cash and cash equivalents |
|
|
2,731 |
|
|
|
|
4,851 |
|
Cash and cash equivalents at beginning of the period |
|
|
24,172 |
|
|
|
|
18,585 |
|
Cash and cash equivalents at end of the period |
$ |
|
26,903 |
|
|
$ |
|
23,436 |
|
SPARTANNASH COMPANY AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA Table 1: Net Sales and Operating Earnings (Loss) by Segment (Unaudited) |
|||||||||||||||||||||||||||||||
|
12 Weeks Ended |
|
|
40 Weeks Ended |
|
||||||||||||||||||||||||||
(In thousands) |
October 3, 2020 |
|
|
October 5, 2019 |
|
|
October 3, 2020 |
|
|
October 5, 2019 |
|
||||||||||||||||||||
Food Distribution Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
|
1,012,204 |
|
|
49.1 |
% |
|
$ |
|
939,047 |
|
|
47.0 |
% |
|
$ |
|
3,471,561 |
|
|
48.9 |
% |
|
$ |
|
3,043,668 |
|
|
46.6 |
% |
Operating earnings |
|
|
9,191 |
|
|
|
|
|
|
|
11,699 |
|
|
|
|
|
|
|
34,990 |
|
|
|
|
|
|
|
36,564 |
|
|
|
|
Retail Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
|
596,659 |
|
|
29.0 |
% |
|
|
|
561,605 |
|
|
28.1 |
% |
|
|
|
2,010,483 |
|
|
28.3 |
% |
|
|
|
1,833,347 |
|
|
28.0 |
% |
Operating earnings |
|
|
22,318 |
|
|
|
|
|
|
|
6,726 |
|
|
|
|
|
|
|
59,416 |
|
|
|
|
|
|
|
14,600 |
|
|
|
|
Military Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
|
451,953 |
|
|
21.9 |
% |
|
|
|
499,156 |
|
|
24.9 |
% |
|
|
|
1,619,329 |
|
|
22.8 |
% |
|
|
|
1,661,097 |
|
|
25.4 |
% |
Operating loss |
|
|
(2,511 |
) |
|
|
|
|
|
|
(2,646 |
) |
|
|
|
|
|
|
(9,406 |
) |
|
|
|
|
|
|
(5,806 |
) |
|
|
|
Total: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
|
2,060,816 |
|
|
100.0 |
% |
|
$ |
|
1,999,808 |
|
|
100.0 |
% |
|
$ |
|
7,101,373 |
|
|
100.0 |
% |
|
$ |
|
6,538,112 |
|
|
100.0 |
% |
Operating earnings |
|
|
28,998 |
|
|
|
|
|
|
|
15,779 |
|
|
|
|
|
|
|
85,000 |
|
|
|
|
|
|
|
45,358 |
|
|
|
|
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with GAAP, the Company also provides information regarding Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“adjusted EBITDA”), adjusted operating earnings, adjusted earnings from continuing operations, total net long-term debt, free cash flow and projected adjusted earnings per diluted share from continuing operations. These are non-GAAP financial measures, as defined below, and are used by management to allocate resources, assess performance against its peers and evaluate overall performance. The Company believes these measures provide useful information for both management and its investors. The Company believes these non-GAAP measures are useful to investors because they provide additional understanding of the trends and special circumstances that affect its business. These measures provide useful supplemental information that helps investors to establish a basis for expected performance and the ability to evaluate actual results against that expectation. The measures, when considered in connection with GAAP results, can be used to assess the overall performance of the Company as well as assess the Company’s performance against its peers. These measures are also used as a basis for certain compensation programs sponsored by the Company. In addition, securities analysts, fund managers and other shareholders and stakeholders that communicate with the Company request its financial results in these adjusted formats.
Current year adjusted operating earnings, adjusted earnings from continuing operations, and adjusted EBITDA exclude “Fresh Cut operating losses” subsequent to the decision to exit these operations during the first quarter, severance associated with cost reduction initiatives, and fees paid to a third-party advisory firm associated with Project One Team, the Company’s initiative to drive growth while increasing efficiency and reducing costs. Pension termination income related to a refund from the annuity provider associated with the final reconciliation of participant data is excluded from adjusted earnings from continuing operations. These items are considered “non-operational” or “non-core” in nature. Prior year adjusted operating earnings, adjusted earnings from continuing operations, and adjusted EBITDA exclude “Fresh Kitchen operating losses” subsequent to the decision to exit these operations at the beginning of the third quarter, costs associated with organizational realignment, which include significant changes to the Company’s management team, and fees paid to a third-party advisory firm associated with Project One Team, the Company’s initiative to drive growth while increasing efficiency and reducing costs. Pension termination costs, primarily related to non-operating settlement expense associated with the distribution of pension assets, are excluded from adjusted earnings from continuing operations, and to a lesser extent adjusted operating earnings.
Table 2: Reconciliation of Net Earnings to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) (A Non-GAAP Financial Measure) (Unaudited) |
|||||||||||||||||||
|
12 Weeks Ended |
|
|
40 Weeks Ended |
|
||||||||||||||
(In thousands) |
October 3, 2020 |
|
|
October 5, 2019 |
|
|
October 3, 2020 |
|
|
October 5, 2019 |
|
||||||||
Net earnings (loss) |
$ |
|
19,952 |
|
|
$ |
|
(337 |
) |
|
$ |
|
63,821 |
|
|
$ |
|
318 |
|
Loss from discontinued operations, net of tax |
|
|
— |
|
|
|
|
27 |
|
|
|
|
— |
|
|
|
|
126 |
|
Income tax expense (benefit) |
|
|
5,564 |
|
|
|
|
(1,656 |
) |
|
|
|
7,513 |
|
|
|
|
(1,973 |
) |
Other expenses, net |
|
|
3,482 |
|
|
|
|
17,745 |
|
|
|
|
13,666 |
|
|
|
|
46,887 |
|
Operating earnings |
|
|
28,998 |
|
|
|
|
15,779 |
|
|
|
|
85,000 |
|
|
|
|
45,358 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense |
|
|
387 |
|
|
|
|
1,268 |
|
|
|
|
3,158 |
|
|
|
|
3,761 |
|
Depreciation and amortization |
|
|
20,858 |
|
|
|
|
20,351 |
|
|
|
|
68,611 |
|
|
|
|
67,513 |
|
Merger/acquisition and integration |
|
|
242 |
|
|
|
|
— |
|
|
|
|
242 |
|
|
|
|
1,364 |
|
Restructuring, asset impairment and other charges |
|
|
6,543 |
|
|
|
|
1,296 |
|
|
|
|
20,455 |
|
|
|
|
10,215 |
|
Fresh Cut operating losses |
|
|
— |
|
|
|
|
— |
|
|
|
|
2,262 |
|
|
|
|
— |
|
Fresh Kitchen operating losses |
|
|
— |
|
|
|
|
2,204 |
|
|
|
|
— |
|
|
|
|
2,204 |
|
Stock-based compensation |
|
|
1,033 |
|
|
|
|
638 |
|
|
|
|
5,181 |
|
|
|
|
6,735 |
|
Non-cash rent |
|
|
(1,188 |
) |
|
|
|
(1,082 |
) |
|
|
|
(3,981 |
) |
|
|
|
(4,542 |
) |
Costs associated with Project One Team |
|
|
— |
|
|
|
|
— |
|
|
|
|
493 |
|
|
|
|
5,428 |
|
Organizational realignment costs |
|
|
— |
|
|
|
|
935 |
|
|
|
|
— |
|
|
|
|
1,812 |
|
Severance associated with cost reduction initiatives |
|
|
40 |
|
|
|
|
— |
|
|
|
|
5,121 |
|
|
|
|
— |
|
Loss on disposal of assets |
|
|
35 |
|
|
|
|
— |
|
|
|
|
3,462 |
|
|
|
|
— |
|
Other non-cash charges |
|
|
94 |
|
|
|
|
187 |
|
|
|
|
193 |
|
|
|
|
710 |
|
Adjusted EBITDA |
$ |
|
57,042 |
|
|
$ |
|
41,576 |
|
|
$ |
|
190,197 |
|
|
$ |
|
140,558 |
|
Table 2: Reconciliation of Net Earnings to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization, continued (Adjusted EBITDA) (A Non-GAAP Financial Measure) (Unaudited) |
|||||||||||||||||||
|
12 Weeks Ended |
|
|
40 Weeks Ended |
|
||||||||||||||
(In thousands) |
October 3, 2020 |
|
|
October 5, 2019 |
|
|
October 3, 2020 |
|
|
October 5, 2019 |
|
||||||||
Food Distribution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings |
$ |
|
9,191 |
|
|
$ |
|
11,699 |
|
|
$ |
|
34,990 |
|
|
$ |
|
36,564 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense |
|
|
295 |
|
|
|
|
639 |
|
|
|
|
1,684 |
|
|
|
|
1,869 |
|
Depreciation and amortization |
|
|
7,413 |
|
|
|
|
7,390 |
|
|
|
|
24,561 |
|
|
|
|
25,368 |
|
Merger/acquisition and integration |
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
(130 |
) |
Restructuring, asset impairment and other charges |
|
|
6,538 |
|
|
|
|
1,043 |
|
|
|
|
19,222 |
|
|
|
|
10,724 |
|
Fresh Cut operating losses |
|
|
— |
|
|
|
|
— |
|
|
|
|
2,262 |
|
|
|
|
— |
|
Fresh Kitchen operating losses |
|
|
— |
|
|
|
|
2,204 |
|
|
|
|
— |
|
|
|
|
2,204 |
|
Stock-based compensation |
|
|
522 |
|
|
|
|
302 |
|
|
|
|
2,524 |
|
|
|
|
3,319 |
|
Non-cash rent |
|
|
31 |
|
|
|
|
147 |
|
|
|
|
125 |
|
|
|
|
353 |
|
Costs associated with Project One Team |
|
|
— |
|
|
|
|
— |
|
|
|
|
265 |
|
|
|
|
2,877 |
|
Organizational realignment costs |
|
|
— |
|
|
|
|
495 |
|
|
|
|
— |
|
|
|
|
960 |
|
Severance associated with cost reduction initiatives |
|
|
— |
|
|
|
|
— |
|
|
|
|
3,143 |
|
|
|
|
— |
|
(Gain) loss on disposal of assets |
|
|
(6 |
) |
|
|
|
— |
|
|
|
|
1,613 |
|
|
|
|
— |
|
Other non-cash charges |
|
|
52 |
|
|
|
|
14 |
|
|
|
|
103 |
|
|
|
|
391 |
|
Adjusted EBITDA |
$ |
|
24,036 |
|
|
$ |
|
23,933 |
|
|
$ |
|
90,492 |
|
|
$ |
|
84,499 |
|
Retail: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings |
$ |
|
22,318 |
|
|
$ |
|
6,726 |
|
|
$ |
|
59,416 |
|
|
$ |
|
14,600 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO (gain) expense |
|
|
(15 |
) |
|
|
|
257 |
|
|
|
|
586 |
|
|
|
|
858 |
|
Depreciation and amortization |
|
|
10,489 |
|
|
|
|
10,197 |
|
|
|
|
34,570 |
|
|
|
|
33,048 |
|
Merger/acquisition and integration |
|
|
242 |
|
|
|
|
— |
|
|
|
|
242 |
|
|
|
|
1,494 |
|
Restructuring charges (gains) and asset impairment |
|
|
5 |
|
|
|
|
253 |
|
|
|
|
1,233 |
|
|
|
|
(509 |
) |
Stock-based compensation |
|
|
364 |
|
|
|
|
222 |
|
|
|
|
1,756 |
|
|
|
|
2,325 |
|
Non-cash rent |
|
|
(1,134 |
) |
|
|
|
(1,149 |
) |
|
|
|
(3,818 |
) |
|
|
|
(4,612 |
) |
Costs associated with Project One Team |
|
|
— |
|
|
|
|
— |
|
|
|
|
164 |
|
|
|
|
1,845 |
|
Organizational realignment costs |
|
|
— |
|
|
|
|
318 |
|
|
|
|
— |
|
|
|
|
616 |
|
Severance associated with cost reduction initiatives |
|
|
9 |
|
|
|
|
— |
|
|
|
|
1,441 |
|
|
|
|
— |
|
Loss on disposal of assets |
|
|
34 |
|
|
|
|
— |
|
|
|
|
1,905 |
|
|
|
|
— |
|
Other non-cash charges |
|
|
30 |
|
|
|
|
243 |
|
|
|
|
64 |
|
|
|
|
410 |
|
Adjusted EBITDA |
$ |
|
32,342 |
|
|
$ |
|
17,067 |
|
|
$ |
|
97,559 |
|
|
$ |
|
50,075 |
|
Military: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
$ |
|
(2,511 |
) |
|
$ |
|
(2,646 |
) |
|
$ |
|
(9,406 |
) |
|
$ |
|
(5,806 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense |
|
|
107 |
|
|
|
|
372 |
|
|
|
|
888 |
|
|
|
|
1,034 |
|
Depreciation and amortization |
|
|
2,956 |
|
|
|
|
2,764 |
|
|
|
|
9,480 |
|
|
|
|
9,097 |
|
Stock-based compensation |
|
|
147 |
|
|
|
|
114 |
|
|
|
|
901 |
|
|
|
|
1,091 |
|
Non-cash rent |
|
|
(85 |
) |
|
|
|
(80 |
) |
|
|
|
(288 |
) |
|
|
|
(283 |
) |
Costs associated with Project One Team |
|
|
— |
|
|
|
|
— |
|
|
|
|
64 |
|
|
|
|
706 |
|
Organizational realignment costs |
|
|
— |
|
|
|
|
122 |
|
|
|
|
— |
|
|
|
|
236 |
|
Severance associated with cost reduction initiatives |
|
|
31 |
|
|
|
|
— |
|
|
|
|
537 |
|
|
|
|
— |
|
Loss (gain) on disposal of assets |
|
|
7 |
|
|
|
|
— |
|
|
|
|
(56 |
) |
|
|
|
— |
|
Other non-cash charges (gains) |
|
|
12 |
|
|
|
|
(70 |
) |
|
|
|
26 |
|
|
|
|
(91 |
) |
Adjusted EBITDA |
$ |
|
664 |
|
|
$ |
|
576 |
|
|
$ |
|
2,146 |
|
|
$ |
|
5,984 |
|
Notes: Adjusted EBITDA is a non-GAAP operating financial measure that the Company defines as net earnings plus interest, discontinued operations, depreciation and amortization, and other non-cash items including deferred (stock) compensation, the LIFO provision, as well as adjustments for items that do not reflect the ongoing operating activities of the Company and costs associated with the closing of operational locations.
Adjusted EBITDA and adjusted EBITDA by segment are not measures of performance under accounting principles generally accepted in the United States of America and should not be considered as a substitute for net earnings, cash flows from operating activities and other income or cash flow statement data. The Company’s definitions of adjusted EBITDA and adjusted EBITDA by segment may not be identical to similarly titled measures reported by other companies.
Table 3: Reconciliation of Operating Earnings to Adjusted Operating Earnings (A Non-GAAP Financial Measure) (Unaudited) |
|||||||||||||||||||
|
12 Weeks Ended |
|
|
40 Weeks Ended |
|
||||||||||||||
(In thousands) |
October 3, 2020 |
|
|
October 5, 2019 |
|
|
October 3, 2020 |
|
|
October 5, 2019 |
|
||||||||
Operating earnings |
$ |
|
28,998 |
|
|
$ |
|
15,779 |
|
|
$ |
|
85,000 |
|
|
$ |
|
45,358 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger/acquisition and integration |
|
|
242 |
|
|
|
|
— |
|
|
|
|
242 |
|
|
|
|
1,364 |
|
Restructuring, asset impairment and other |
|
|
6,543 |
|
|
|
|
1,296 |
|
|
|
|
20,455 |
|
|
|
|
10,215 |
|
Fresh Cut operating losses |
|
|
— |
|
|
|
|
— |
|
|
|
|
2,262 |
|
|
|
|
— |
|
Fresh Kitchen operating losses |
|
|
— |
|
|
|
|
2,204 |
|
|
|
|
— |
|
|
|
|
2,204 |
|
Costs associated with Project One Team |
|
|
— |
|
|
|
|
— |
|
|
|
|
493 |
|
|
|
|
5,428 |
|
Organizational realignment costs |
|
|
— |
|
|
|
|
935 |
|
|
|
|
— |
|
|
|
|
1,812 |
|
Expenses associated with tax planning |
|
|
(15 |
) |
|
|
|
— |
|
|
|
|
82 |
|
|
|
|
— |
|
Pension termination |
|
|
— |
|
|
|
|
28 |
|
|
|
|
— |
|
|
|
|
48 |
|
Severance associated with cost reduction initiatives |
|
|
40 |
|
|
|
|
43 |
|
|
|
|
5,121 |
|
|
|
|
484 |
|
Adjusted operating earnings |
$ |
|
35,808 |
|
|
$ |
|
20,285 |
|
|
$ |
|
113,655 |
|
|
$ |
|
66,913 |
|
Reconciliation of operating earnings (loss) to adjusted operating earnings (loss) by segment: |
|
||||||||||||||||||
Food Distribution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings |
$ |
|
9,191 |
|
|
$ |
|
11,699 |
|
|
$ |
|
34,990 |
|
|
$ |
|
36,564 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger/acquisition and integration |
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
(130 |
) |
Restructuring, asset impairment and other |
|
|
6,538 |
|
|
|
|
1,043 |
|
|
|
|
19,222 |
|
|
|
|
10,724 |
|
Fresh Cut operating losses |
|
|
— |
|
|
|
|
— |
|
|
|
|
2,262 |
|
|
|
|
— |
|
Fresh Kitchen operating losses |
|
|
— |
|
|
|
|
2,204 |
|
|
|
|
— |
|
|
|
|
2,204 |
|
Costs associated with Project One Team |
|
|
— |
|
|
|
|
— |
|
|
|
|
265 |
|
|
|
|
2,877 |
|
Organizational realignment costs |
|
|
— |
|
|
|
|
495 |
|
|
|
|
— |
|
|
|
|
960 |
|
Expenses associated with tax planning |
|
|
(8 |
) |
|
|
|
— |
|
|
|
|
44 |
|
|
|
|
— |
|
Pension termination |
|
|
— |
|
|
|
|
15 |
|
|
|
|
— |
|
|
|
|
26 |
|
Severance associated with cost reduction initiatives |
|
|
— |
|
|
|
|
31 |
|
|
|
|
3,143 |
|
|
|
|
392 |
|
Adjusted operating earnings |
$ |
|
15,721 |
|
|
$ |
|
15,487 |
|
|
$ |
|
59,926 |
|
|
$ |
|
53,617 |
|
Retail: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings |
$ |
|
22,318 |
|
|
$ |
|
6,726 |
|
|
$ |
|
59,416 |
|
|
$ |
|
14,600 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger/acquisition and integration |
|
|
242 |
|
|
|
|
— |
|
|
|
|
242 |
|
|
|
|
1,494 |
|
Restructuring charges (gains) and asset impairment |
|
|
5 |
|
|
|
|
253 |
|
|
|
|
1,233 |
|
|
|
|
(509 |
) |
Costs associated with Project One Team |
|
|
— |
|
|
|
|
— |
|
|
|
|
164 |
|
|
|
|
1,845 |
|
Organizational realignment costs |
|
|
— |
|
|
|
|
318 |
|
|
|
|
— |
|
|
|
|
616 |
|
Expenses associated with tax planning |
|
|
(5 |
) |
|
|
|
— |
|
|
|
|
27 |
|
|
|
|
— |
|
Pension termination |
|
|
— |
|
|
|
|
10 |
|
|
|
|
— |
|
|
|
|
17 |
|
Severance associated with cost reduction initiatives |
|
|
9 |
|
|
|
|
12 |
|
|
|
|
1,441 |
|
|
|
|
83 |
|
Adjusted operating earnings |
$ |
|
22,569 |
|
|
$ |
|
7,319 |
|
|
$ |
|
62,523 |
|
|
$ |
|
18,146 |
|
Military: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
$ |
|
(2,511 |
) |
|
$ |
|
(2,646 |
) |
|
$ |
|
(9,406 |
) |
|
$ |
|
(5,806 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs associated with Project One Team |
|
|
— |
|
|
|
|
— |
|
|
|
|
64 |
|
|
|
|
706 |
|
Organizational realignment costs |
|
|
— |
|
|
|
|
122 |
|
|
|
|
— |
|
|
|
|
236 |
|
Expenses associated with tax planning |
|
|
(2 |
) |
|
|
|
— |
|
|
|
|
11 |
|
|
|
|
— |
|
Pension termination |
|
|
— |
|
|
|
|
3 |
|
|
|
|
— |
|
|
|
|
5 |
|
Severance associated with cost reduction initiatives |
|
|
31 |
|
|
|
|
— |
|
|
|
|
537 |
|
|
|
|
9 |
|
Adjusted operating loss |
$ |
|
(2,482 |
) |
|
$ |
|
(2,521 |
) |
|
$ |
|
(8,794 |
) |
|
$ |
|
(4,850 |
) |
Notes: Adjusted operating earnings is a non-GAAP operating financial measure that the Company defines as operating earnings plus or minus adjustments for items that do not reflect the ongoing operating activities of the Company and costs associated with the closing of operational locations.
Adjusted operating earnings is not a measure of performance under accounting principles generally accepted in the United States of America and should not be considered as a substitute for operating earnings, cash flows from operating activities and other income or cash flow statement data. The Company’s definition of adjusted operating earnings may not be identical to similarly titled measures reported by other companies.
Table 4: Reconciliation of Earnings (loss) from Continuing Operations to Adjusted Earnings from Continuing Operations (A Non-GAAP Financial Measure) (Unaudited) |
||||||||||||||||||||
|
12 Weeks Ended |
|
|
|||||||||||||||||
|
October 3, 2020 |
|
|
October 5, 2019 |
|
|
||||||||||||||
|
|
|
|
per diluted |
|
|
|
|
|
per diluted |
|
|
||||||||
(In thousands, except per share amounts) |
Earnings |
|
|
share |
|
|
Earnings |
|
|
share |
|
|
||||||||
Earnings (loss) from continuing operations |
$ |
|
19,952 |
|
|
$ |
|
0.56 |
|
|
$ |
|
(310 |
) |
|
$ |
|
(0.01 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger/acquisition and integration |
|
|
242 |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
Restructuring, asset impairment and other |
|
|
6,543 |
|
|
|
|
|
|
|
|
|
1,296 |
|
|
|
|
|
|
|
Fresh Kitchen operating losses |
|
|
— |
|
|
|
|
|
|
|
|
|
2,204 |
|
|
|
|
|
|
|
Organizational realignment costs |
|
|
— |
|
|
|
|
|
|
|
|
|
935 |
|
|
|
|
|
|
|
Loss on debt extinguishment |
|
|
— |
|
|
|
|
|
|
|
|
|
329 |
|
|
|
|
|
|
|
Severance associated with cost reduction initiatives |
|
|
40 |
|
|
|
|
|
|
|
|
|
43 |
|
|
|
|
|
|
|
Expenses associated with tax planning |
|
|
(15 |
) |
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
Pension termination |
|
|
— |
|
|
|
|
|
|
|
|
|
10,159 |
|
|
|
|
|
|
|
Total adjustments |
|
|
6,810 |
|
|
|
|
|
|
|
|
|
14,966 |
|
|
|
|
|
|
|
Income tax effect on adjustments (a) |
|
|
(1,830 |
) |
|
|
|
|
|
|
|
|
(3,751 |
) |
|
|
|
|
|
|
Impact of CARES Act (b) |
|
|
212 |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
Total adjustments, net of taxes |
|
|
5,192 |
|
|
|
|
0.14 |
* |
|
|
11,215 |
|
|
|
|
0.31 |
|
|
|
Adjusted earnings from continuing operations |
$ |
|
25,144 |
|
|
$ |
|
0.70 |
|
|
$ |
|
10,905 |
|
|
$ |
|
0.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40 Weeks Ended |
|
|
|||||||||||||||||
|
October 3, 2020 |
|
|
October 5, 2019 |
|
|
||||||||||||||
|
|
|
|
per diluted |
|
|
|
|
|
per diluted |
|
|
||||||||
(In thousands, except per share amounts) |
Earnings |
|
|
share |
|
|
Earnings |
|
|
share |
|
|
||||||||
Earnings from continuing operations |
$ |
|
63,821 |
|
|
$ |
|
1.78 |
|
|
$ |
|
444 |
|
|
$ |
|
0.01 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger/acquisition and integration |
|
|
242 |
|
|
|
|
|
|
|
|
|
1,364 |
|
|
|
|
|
|
|
Restructuring, asset impairment and other |
|
|
20,455 |
|
|
|
|
|
|
|
|
|
10,215 |
|
|
|
|
|
|
|
Fresh Cut operating losses |
|
|
2,262 |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
Fresh Kitchen operating losses |
|
|
— |
|
|
|
|
|
|
|
|
|
2,204 |
|
|
|
|
|
|
|
Costs associated with Project One Team |
|
|
493 |
|
|
|
|
|
|
|
|
|
5,428 |
|
|
|
|
|
|
|
Organizational realignment costs |
|
|
— |
|
|
|
|
|
|
|
|
|
1,812 |
|
|
|
|
|
|
|
Loss on debt extinguishment |
|
|
— |
|
|
|
|
|
|
|
|
|
329 |
|
|
|
|
|
|
|
Severance associated with cost reduction initiatives |
|
|
5,121 |
|
|
|
|
|
|
|
|
|
484 |
|
|
|
|
|
|
|
Expenses associated with tax planning |
|
|
82 |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
Pension termination |
|
|
(1,004 |
) |
|
|
|
|
|
|
|
|
19,510 |
|
|
|
|
|
|
|
Total adjustments |
|
|
27,651 |
|
|
|
|
|
|
|
|
|
41,346 |
|
|
|
|
|
|
|
Income tax effect on adjustments (a) |
|
|
(6,827 |
) |
|
|
|
|
|
|
|
|
(10,166 |
) |
|
|
|
|
|
|
Impact of CARES Act (b) |
|
|
(9,298 |
) |
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
Total adjustments, net of taxes |
|
|
11,526 |
|
|
|
|
0.32 |
|
|
|
|
31,180 |
|
|
|
|
0.86 |
|
|
Adjusted earnings from continuing operations |
$ |
|
75,347 |
|
|
$ |
|
2.10 |
|
|
$ |
|
31,624 |
|
|
$ |
|
0.87 |
|
|
* Includes rounding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
The income tax effect on adjustments is computed by applying the applicable tax rate to the adjustments. |
|
(b) |
Represents tax impacts attributable to the Coronavirus Aid, Relief and Economic Security (“CARES”) Act, primarily related to additional deductions and the utilization of net operating loss carrybacks. |
Notes: Adjusted earnings from continuing operations is a non-GAAP operating financial measure that the Company defines as earnings from continuing operations plus or minus adjustments for items that do not reflect the ongoing operating activities of the Company and costs associated with the closing of operational locations.
Adjusted earnings from continuing operations is not a measure of performance under accounting principles generally accepted in the United States of America and should not be considered as a substitute for net earnings, cash flows from operating activities and other income or cash flow statement data. The Company’s definition of adjusted earnings from continuing operations may not be identical to similarly titled measures reported by other companies.
Table 5: Reconciliation of Long-Term Debt and Finance Lease Obligations to Net Long-Term Debt (A Non-GAAP Financial Measure) (Unaudited) |
|||||||||
|
October 3, |
|
|
December 28, |
|
||||
(In thousands) |
2020 |
|
|
2019 |
|
||||
Current portion of long-term debt and finance lease liabilities |
$ |
|
5,338 |
|
|
$ |
|
6,349 |
|
Long-term debt and finance lease liabilities |
|
|
540,920 |
|
|
|
|
682,204 |
|
Total debt |
|
|
546,258 |
|
|
|
|
688,553 |
|
Cash and cash equivalents |
|
|
(26,903 |
) |
|
|
|
(24,172 |
) |
Net long-term debt |
$ |
|
519,355 |
|
|
$ |
|
664,381 |
|
Notes: Net long-term debt is a non-GAAP financial measure that is defined as long-term debt and finance lease obligations plus current maturities of long-term debt and finance lease obligations less cash and cash equivalents. The Company believes both management and its investors find the information useful because it reflects the amount of long-term debt obligations that are not covered by available cash and temporary investments. Net long-term debt is not a substitute for GAAP financial measures and may differ from similarly titled measures of other companies.
Table 6: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (A Non-GAAP Financial Measure) (Unaudited) |
|||||||||
|
40 Weeks Ended |
|
|||||||
(In thousands) |
October 3, 2020 |
|
|
October 5, 2019 |
|
||||
Net cash provided by operating activities |
$ |
|
223,832 |
|
|
$ |
|
140,034 |
|
Less: |
|
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
45,880 |
|
|
|
|
46,905 |
|
Free cash flow |
$ |
|
177,952 |
|
|
$ |
|
93,129 |
|
Notes: Free cash flow is a non-GAAP financial measure calculated by subtracting capital expenditures from cash flows provided by operating activities, the most directly comparable GAAP measure. The Company believes it is a useful indicator of liquidity that provides information to both management and investors about the amount of cash generated from operations that, after capital expenditures, can be used for strategic business objectives, including the repayment of long-term debt. Free cash flow is not a substitute for GAAP financial measures and may differ from similarly titled measures of other companies.
Table 7: Reconciliation of Purchases of Property and Equipment to Capital Expenditures and IT Capital (A Non-GAAP Financial Measure) (Unaudited) |
|||||||||
|
40 Weeks Ended |
|
|||||||
(In thousands) |
October 3, 2020 |
|
|
October 5, 2019 |
|
||||
Purchases of property and equipment |
$ |
|
45,880 |
|
|
$ |
|
46,905 |
|
Plus: |
|
|
|
|
|
|
|
|
|
Cloud computing spend |
|
|
7,658 |
|
|
|
|
— |
|
Capital expenditures and IT capital |
$ |
|
53,538 |
|
|
$ |
|
46,905 |
|
Notes: Capital expenditures and IT capital is a non-GAAP financial measure calculated by adding spending related to the development of cloud computing applications spend to capital expenditures, the most directly comparable GAAP measure. Cloud computing spend only includes costs incurred during the application development phase and does not include ongoing costs of hosting or maintenance associated with these applications, which are expensed as incurred. The Company believes it is a useful indicator of the Company’s investment in its facilities and systems as it transitions to more cloud-based IT systems. Capital expenditures and IT capital is not a substitute for GAAP financial measures and may differ from similarly titled measures of other companies.
Table 8: Reconciliation of Projected Earnings per Diluted Share from Continuing Operations to Projected Adjusted Earnings per Diluted Share from Continuing Operations (A Non-GAAP Financial Measure) (Unaudited) |
|||||||||
|
53 Weeks Ending January 2, 2021 |
|
|||||||
|
Low |
|
|
High |
|
||||
Earnings from continuing operations |
$ |
|
2.09 |
|
|
$ |
|
2.17 |
|
Adjustments, net of taxes: |
|
|
|
|
|
|
|
|
|
Merger/acquisition and integration expenses |
|
|
0.01 |
|
|
|
|
0.01 |
|
Costs associated with Project One Team |
|
|
0.01 |
|
|
|
|
0.01 |
|
Pension termination |
|
|
(0.02 |
) |
|
|
|
(0.02 |
) |
Restructuring and asset impairment |
|
|
0.43 |
|
|
|
|
0.43 |
|
Severance associated with cost reduction initiatives |
|
|
0.11 |
|
|
|
|
0.11 |
|
Fresh Cut operating losses |
|
|
0.05 |
|
|
|
|
0.05 |
|
Impact of CARES Act |
|
|
(0.26 |
) |
|
|
|
(0.26 |
) |
Adjusted earnings from continuing operations |
$ |
|
2.42 |
|
|
$ |
|
2.50 |
|
