SpartanNash Announces Third Quarter Fiscal 2024 Results
SpartanNash (Nasdaq: SPTN) announced its third quarter fiscal 2024 results, reporting net sales of $2.25 billion, a 0.6% decrease compared to the prior year. The Wholesale segment saw a 1.6% decline in net sales to $1.58 billion due to reduced case volumes, while the Retail segment experienced a 1.9% increase to $674.6 million, supported by acquisitions. Net earnings remained at $0.32 per diluted share. Adjusted EPS was $0.48, down from $0.54. Adjusted EBITDA was $60.5 million, slightly down from $60.9 million. Cash from operations rose by 28.8% to $123.3 million. SpartanNash updated its fiscal 2024 guidance, maintaining net sales between $9.5 billion and $9.7 billion, but lowering adjusted EBITDA to $252-$257 million and adjusted EPS to $1.85-$1.95. The company anticipates low-single-digit topline growth and mid-single-digit adjusted EBITDA growth for fiscal 2025.
SpartanNash (Nasdaq: SPTN) ha annunciato i risultati del terzo trimestre dell'anno fiscale 2024, riportando vendite nette pari a 2,25 miliardi di dollari, con una diminuzione dello 0,6% rispetto all'anno precedente. Il segmento all'ingrosso ha registrato un calo delle vendite nette del 1,6%, scendendo a 1,58 miliardi di dollari a causa della riduzione dei volumi. D'altra parte, il segmento retail ha visto un aumento dell'1,9% a 674,6 milioni di dollari, sostenuto da acquisizioni. Gli utili netti sono rimasti a 0,32 dollari per azione diluita. L'EPS corretto è stato di 0,48 dollari, in calo rispetto a 0,54 dollari. L'EBITDA corretto è stato di 60,5 milioni di dollari, leggermente in diminuzione rispetto ai 60,9 milioni di dollari. I flussi di cassa dalle operazioni sono aumentati del 28,8%, raggiungendo i 123,3 milioni di dollari. SpartanNash ha aggiornato le previsioni per l'anno fiscale 2024, mantenendo le vendite nette tra i 9,5 e i 9,7 miliardi di dollari, abbassando però l'EBITDA corretto a 252-257 milioni di dollari e l'EPS corretto a 1,85-1,95 dollari. L'azienda prevede una crescita dei ricavi a singolo cifra bassa e una crescita dell'EBITDA corretto a cifra media per l'anno fiscale 2025.
SpartanNash (Nasdaq: SPTN) anunció los resultados del tercer trimestre del ejercicio fiscal 2024, reportando ventas netas de 2.25 mil millones de dólares, una disminución del 0.6% en comparación con el año anterior. El segmento mayorista experimentó una caída del 1.6% en ventas netas a 1.58 mil millones de dólares debido a la reducción de volúmenes. Por otro lado, el segmento minorista vio un aumento del 1.9% hasta 674.6 millones de dólares, apoyado por adquisiciones. Las ganancias netas se mantuvieron en 0.32 dólares por acción diluida. El EPS ajustado fue de 0.48 dólares, en baja desde 0.54 dólares. El EBITDA ajustado fue de 60.5 millones de dólares, ligeramente inferior a los 60.9 millones de dólares. El flujo de caja de las operaciones aumentó un 28.8% hasta 123.3 millones de dólares. SpartanNash actualizó su guía para el ejercicio fiscal 2024, manteniendo ventas netas entre 9.5 y 9.7 mil millones de dólares, pero reduciendo el EBITDA ajustado a 252-257 millones de dólares y el EPS ajustado a 1.85-1.95 dólares. La empresa anticipa un crecimiento bajo de un solo dígito en la línea superior y un crecimiento del EBITDA ajustado de un solo dígito medio para el ejercicio fiscal 2025.
SpartanNash (Nasdaq: SPTN)는 2024 회계연도 3분기 실적을 발표하며 순매출 22억 5천만 달러를 보고했으며, 이는 전년 대비 0.6% 감소한 수치입니다. 도매 부문에서는 순매출이 16억 달러로 1.6% 감소했으며, 이는 케이스 물량 감소 때문입니다. 소매 부문은 6억 7천 4백 6십만 달러로 1.9% 증가했으며, 이는 인수합병의 지원 덕분입니다. 희석주당 순이익은 0.32 달러로 유지되었습니다. 조정된 EPS는 0.48 달러로, 0.54 달러에서 하락했습니다. 조정된 EBITDA는 6천 5백만 달러로, 6천 9백만 달러에서 소폭 감소했습니다. 운영으로부터의 현금 흐름은 28.8% 증가하여 1억 2천 3백 3십만 달러에 달했습니다. SpartanNash는 2024 회계연도 전망을 업데이트하며, 순매출은 95억 달러에서 97억 달러 사이를 유지하지만, 조정된 EBITDA를 2억 5천 2백만에서 2억 5천 7백만 달러로 하향 조정하며, 조정된 EPS는 1.85달러에서 1.95달러로 하향 조정했습니다. 이 회사는 2025 회계연도에 저수익 성장과 중간수익 성장률을 예상하고 있습니다.
SpartanNash (Nasdaq: SPTN) a annoncé ses résultats pour le troisième trimestre de l'exercice fiscal 2024, rapportant des ventes nettes de 2,25 milliards de dollars, soit une baisse de 0,6% par rapport à l'année précédente. Le segment de gros a enregistré une baisse des ventes nettes de 1,6% à 1,58 milliard de dollars en raison de volumes de cas réduits, tandis que le segment de détail a connu une augmentation de 1,9% à 674,6 millions de dollars, soutenue par des acquisitions. Les bénéfices nets sont restés à 0,32 dollar par action diluée. Le BPA ajusté était de 0,48 dollar, en baisse par rapport à 0,54 dollar. L'EBITDA ajusté était de 60,5 millions de dollars, légèrement inférieur à 60,9 millions de dollars. Les flux de trésorerie provenant des opérations ont augmenté de 28,8% pour atteindre 123,3 millions de dollars. SpartanNash a mis à jour ses prévisions pour l'exercice 2024, maintenant des ventes nettes entre 9,5 et 9,7 milliards de dollars, mais abaissant l'EBITDA ajusté à 252-257 millions de dollars et le BPA ajusté à 1,85-1,95 dollar. L'entreprise prévoit une croissance à un chiffre bas du chiffre d'affaires et une croissance à un chiffre moyen de l'EBITDA ajusté pour l'exercice 2025.
SpartanNash (Nasdaq: SPTN) hat die Ergebnisse des dritten Quartals des Geschäftsjahres 2024 bekannt gegeben und dabei einen Nettoumsatz von 2,25 Milliarden Dollar berichtet, was einem Rückgang von 0,6% im Vergleich zum Vorjahr entspricht. Im Großhandelssegment sank der Nettoumsatz um 1,6% auf 1,58 Milliarden Dollar aufgrund reduzierter Fallzahlen, während das Einzelhandelssegment ein Plus von 1,9% auf 674,6 Millionen Dollar verzeichnete, unterstützt durch Übernahmen. Der Nettoertrag blieb bei 0,32 Dollar pro verwässerter Aktie. Der bereinigte EPS betrug 0,48 Dollar, was einem Rückgang von 0,54 Dollar entspricht. Das bereinigte EBITDA betrug 60,5 Millionen Dollar und ist leicht gesunken von 60,9 Millionen Dollar. Der Cashflow aus dem operativen Geschäft stieg um 28,8% auf 123,3 Millionen Dollar. SpartanNash aktualisierte die Prognose für das Geschäftsjahr 2024 und hielt die Nettoumsätze zwischen 9,5 und 9,7 Milliarden Dollar bei, senkte jedoch das bereinigte EBITDA auf 252-257 Millionen Dollar und den bereinigten EPS auf 1,85-1,95 Dollar. Das Unternehmen erwartet ein geringfügiges Wachstum des Umsatzes im niedrigen einstelligen Bereich und ein mittleres einstelliges Wachstum des bereinigten EBITDA für das Geschäftsjahr 2025.
- Retail segment net sales increased by 1.9% to $674.6 million.
- Cash generated from operating activities increased by 28.8% to $123.3 million.
- Increased Wholesale segment gross margin rates.
- Reduced corporate administrative costs.
- Net sales decreased by 0.6% to $2.25 billion.
- Wholesale segment net sales decreased by 1.6% to $1.58 billion.
- Comparable store sales in the Retail segment were down 0.7%.
- Adjusted EPS decreased from $0.54 to $0.48.
- Adjusted EBITDA decreased from $60.9 million to $60.5 million.
- Higher restructuring charges and increased healthcare costs.
- Updated fiscal 2024 guidance with lower adjusted EBITDA and adjusted EPS.
Insights
SpartanNash's Q3 results reveal mixed performance with some concerning trends. Net sales declined -0.6% to
The company's guidance revision is noteworthy - lowering FY2024 adjusted EBITDA range to
Positively, cash flow generation improved
Updates Fiscal 2024 Guidance and Provides Preview of Fiscal 2025
Retail Segment Sales Increased
GRAND RAPIDS, Mich., Nov. 7, 2024 /PRNewswire/ -- Food solutions company SpartanNash (the "Company") (Nasdaq: SPTN) today reported financial results for its 12-week third quarter ended October 5, 2024.
"Our team made significant progress on our strategic plans this past quarter, while sustaining profitability in a complex environment," said SpartanNash President and CEO Tony Sarsam. "We continue to invest in our business to expand margin, capture additional cost savings, collaborate with our suppliers, and deliver value-add products and outstanding service to our Wholesale customers and Retail shoppers. All of these elements have established a solid foundation to drive organic and inorganic growth, including the upcoming acquisitions of Fresh Encounter and Markham."
Third Quarter Fiscal 2024 Highlights(1)
- Net sales decreased
0.6% to$2.25 billion - Wholesale segment net sales decreased
1.6% to$1.58 billion - Retail segment net sales increased
1.9% to$674.6 million 0.7% . Incremental sales from the recently acquired Metcalfe's Market stores more than offset lower consumer demand trends.
- Wholesale segment net sales decreased
- Net earnings were
$0.32 - Increased Wholesale segment gross margin rates, including benefits from the merchandising transformation, and lower corporate administrative costs, as well as reduced LIFO expense were offset by lower case volumes, higher restructuring charges, increased healthcare costs, and increased Retail segment store labor.
- Adjusted EPS(2) of
$0.48 $0.54 $60.5 million $60.9 million
Other Fiscal 2024 Highlights(4)
- Cash generated from operating activities of
$123.3 million $95.7 million 28.8% increase in cash from operating activities is due primarily to ongoing working capital management initiatives. - Net long-term debt(5) to adjusted EBITDA(5) ratio of 2.4x compared to 2.2x at the end of the second quarter.
- Capital expenditures and IT capital(6) of
$106.3 million $90.3 million - Returned
$37.7 million $15.1 million $22.6 million
(1) | All comparisons are for the third quarter of 2024 compared with the third quarter of 2023, unless otherwise noted. |
(2) | A reconciliation of net earnings to adjusted earnings from continuing operations, as well as per diluted share ("adjusted EPS"), a non-GAAP financial measure, is provided in Table 3. |
(3) | A reconciliation of net earnings to adjusted EBITDA, a non-GAAP financial measure, is provided in Table 2. |
(4) | All comparisons are for the fiscal year-to-date 2024 compared with the fiscal year-to-date 2023, unless otherwise noted. |
(5) | A reconciliation of long-term debt and finance lease obligations to net long-term debt and Net Earnings to Adjusted EBITDA, non-GAAP financial measures, are provided in Table 4. |
(6) | A reconciliation of purchases of property and equipment to capital expenditures and IT capital, a non-GAAP financial measure, is provided in Table 5. |
Fiscal 2024 Outlook
Based on the Company's performance to date and the current outlook for the remainder of fiscal 2024, the Company is updating its guidance to reflect current trends and market conditions. The following table provides the Company's updated guidance for fiscal 2024:
Fiscal 2023 | Previous Fiscal 2024 Outlook | Updated Fiscal 2024 Outlook | ||||||||||||||||||||||
(In millions, except adjusted EPS(2)) | Actual | Low | High | Low | High | |||||||||||||||||||
Total net sales | $ | 9,729 | $ | 9,500 | $ | 9,700 | $ | 9,500 | $ | 9,700 | ||||||||||||||
Adjusted EBITDA(3) | $ | 257 | $ | 255 | $ | 270 | $ | 252 | $ | 257 | ||||||||||||||
Adjusted EPS(2) | $ | 2.18 | $ | 1.85 | $ | 2.10 | $ | 1.85 | $ | 1.95 | ||||||||||||||
Capital expenditures and IT capital(6) | $ | 127 | $ | 135 | $ | 145 | $ | 135 | $ | 140 | ||||||||||||||
Guidance incorporates the Company's long-term strategic initiatives, including all transformational programs and tuck-in acquisitions.
Considering the impact of current market conditions tempered by ongoing investments in growth, in fiscal 2025 the Company expects low-single-digit topline growth and mid-single-digit adjusted EBITDA growth compared to fiscal 2024. The Company plans to provide its full fiscal 2025 outlook when it announces its fourth quarter and fiscal 2024 results in February 2025.
Conference Call & Supplemental Earnings Presentation
The Company will host a conference call to discuss its quarterly results with additional comments and details on Thursday, Nov. 7, 2024, at 8:30 a.m. ET. There will also be a simultaneous, live webcast made available at SpartanNash's website at spartannash.com/webcasts under the "Investor Relations" section and will remain archived on the Company's website through Thursday, Nov. 21, 2024.
A supplemental quarterly earnings presentation will also be available on the Company's website at spartannash.com/investor-presentations.
About SpartanNash
SpartanNash (Nasdaq: SPTN) is a food solutions company that delivers the ingredients for a better life. Committed to fostering a People First culture, the SpartanNash family of Associates is 17,000 strong. SpartanNash operates two complementary business segments – food wholesale and grocery retail. Its global supply chain network serves wholesale customers that include independent and chain grocers, national retail brands, e-commerce platforms, and
Forward-Looking Statements
The matters discussed in this press release and in the Company's website-accessible conference calls with analysts and investor presentations include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"), about the plans, strategies, objectives, goals or expectations of the Company. These forward-looking statements may be identifiable by words or phrases indicating that the Company or management "expects," "projects," "anticipates," "plans," "believes," "intends," or "estimates," or that a particular occurrence or event "may," "could," "should," "will" or "will likely" result, occur or be pursued or "continue" in the future, that the "outlook," "trend," "guidance" or "target" is toward a particular result or occurrence, that a development is an "opportunity," "priority," "strategy," "focus," that the Company is "positioned" for a particular result, or similarly stated expectations. Undue reliance should not be placed on these forward-looking statements, which speak only as of the date made. Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which, with respect to future business decisions, are subject to change. These uncertainties and contingencies may affect actual results and could cause actual results to differ materially. These risks and uncertainties include the Company's ability to compete in an extremely competitive industry; the Company's dependence on certain major customers; the Company's ability to implement its growth strategy and transformation initiatives; the Company's ability to implement its growth strategy through acquisitions and successfully integrate acquired businesses; disruptions to the Company's information security network, including security breaches and cyber-attacks; impacts to the availability and performance of the Company's information technology systems; changes in relationships with the Company's vendor base; changes in product availability and product pricing from vendors; macroeconomic uncertainty, including rising inflation, potential economic recession, and increasing interest rates; difficulty attracting and retaining well-qualified Associates and effectively managing increased labor costs; failure to successfully retain or manage transitions with executive leaders and other key personnel; impacts to the Company's business and reputation due to an increasing focus on environmental, social and governance matters; customers to whom the Company extends credit or for whom the Company guarantees loans may fail to repay the Company; changes in the geopolitical conditions; disruptions associated with severe weather conditions and natural disasters, including effects from climate change; disruptions associated with disease outbreaks; the Company's ability to manage its private brand program for
INVESTOR CONTACT:
Kayleigh Campbell
Head of Investor Relations
kayleigh.campbell@spartannash.com
MEDIA CONTACT:
Adrienne Chance
SVP and Chief Communications Officer
press@spartannash.com
SPARTANNASH COMPANY AND SUBSIDIARIES | |||||||||||||||||||
12 Weeks Ended | 40 Weeks Ended | ||||||||||||||||||
October 5, | October 7, | October 5, | October 7, | ||||||||||||||||
(In thousands, except per share amounts) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
Net sales | $ | 2,250,681 | $ | 2,264,248 | $ | 7,287,700 | $ | 7,484,036 | |||||||||||
Cost of sales | 1,896,032 | 1,916,709 | 6,139,704 | 6,337,449 | |||||||||||||||
Gross profit | 354,649 | 347,539 | 1,147,996 | 1,146,587 | |||||||||||||||
Operating expenses | |||||||||||||||||||
Selling, general and administrative | 324,061 | 322,796 | 1,045,851 | 1,059,787 | |||||||||||||||
Acquisition and integration, net | 272 | 2,130 | 3,212 | 2,259 | |||||||||||||||
Restructuring and asset impairment, net | 5,397 | (458) | 17,272 | 1,371 | |||||||||||||||
Total operating expenses | 329,730 | 324,468 | 1,066,335 | 1,063,417 | |||||||||||||||
Operating earnings | 24,919 | 23,071 | 81,661 | 83,170 | |||||||||||||||
Other expenses and (income) | |||||||||||||||||||
Interest expense, net | 9,915 | 9,280 | 33,943 | 30,218 | |||||||||||||||
Other, net | (216) | (786) | (1,814) | (2,510) | |||||||||||||||
Total other expenses, net | 9,699 | 8,494 | 32,129 | 27,708 | |||||||||||||||
Earnings before income taxes | 15,220 | 14,577 | 49,532 | 55,462 | |||||||||||||||
Income tax expense | 4,300 | 3,450 | 14,152 | 13,530 | |||||||||||||||
Net earnings | $ | 10,920 | $ | 11,127 | $ | 35,380 | $ | 41,932 | |||||||||||
Net earnings per basic common share | $ | 0.33 | $ | 0.33 | $ | 1.05 | $ | 1.22 | |||||||||||
Net earnings per diluted common share | $ | 0.32 | $ | 0.32 | $ | 1.03 | $ | 1.20 | |||||||||||
Weighted average shares outstanding: | |||||||||||||||||||
Basic | 33,580 | 34,020 | 33,847 | 34,262 | |||||||||||||||
Diluted | 34,102 | 34,523 | 34,266 | 34,967 | |||||||||||||||
SPARTANNASH COMPANY AND SUBSIDIARIES | |||||||||
October 5, | December 30, | ||||||||
(In thousands) | 2024 | 2023 | |||||||
Assets | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 17,510 | $ | 17,964 | |||||
Accounts and notes receivable, net | 490,131 | 421,859 | |||||||
Inventories, net | 557,955 | 575,226 | |||||||
Prepaid expenses and other current assets | 74,167 | 62,440 | |||||||
Total current assets | 1,139,763 | 1,077,489 | |||||||
Property and equipment, net | 668,927 | 649,071 | |||||||
Goodwill | 190,023 | 182,160 | |||||||
Intangible assets, net | 101,817 | 101,535 | |||||||
Operating lease assets | 259,890 | 242,146 | |||||||
Other assets, net | 107,013 | 103,174 | |||||||
Total assets | $ | 2,467,433 | $ | 2,355,575 | |||||
Liabilities and Shareholders' Equity | |||||||||
Current liabilities | |||||||||
Accounts payable | $ | 513,577 | $ | 473,419 | |||||
Accrued payroll and benefits | 70,516 | 78,076 | |||||||
Other accrued expenses | 65,432 | 57,609 | |||||||
Current portion of operating lease liabilities | 42,355 | 41,979 | |||||||
Current portion of long-term debt and finance lease liabilities | 9,747 | 8,813 | |||||||
Total current liabilities | 701,627 | 659,896 | |||||||
Long-term liabilities | |||||||||
Deferred income taxes | 85,660 | 73,904 | |||||||
Operating lease liabilities | 245,270 | 226,118 | |||||||
Other long-term liabilities | 26,611 | 28,808 | |||||||
Long-term debt and finance lease liabilities | 626,957 | 588,667 | |||||||
Total long-term liabilities | 984,498 | 917,497 | |||||||
Commitments and contingencies | |||||||||
Shareholders' equity | |||||||||
Common stock, voting, no par value; 100,000 shares authorized; 33,755 and 34,610 shares outstanding | 452,024 | 460,299 | |||||||
Preferred stock, no par value, 10,000 shares authorized; no shares outstanding | — | — | |||||||
Accumulated other comprehensive (loss) income | (325) | 796 | |||||||
Retained earnings | 329,609 | 317,087 | |||||||
Total shareholders' equity | 781,308 | 778,182 | |||||||
Total liabilities and shareholders' equity | $ | 2,467,433 | $ | 2,355,575 | |||||
SPARTANNASH COMPANY AND SUBSIDIARIES | ||||||||||||
40 Weeks Ended | ||||||||||||
(In thousands) | October 5, 2024 | October 7, 2023 | ||||||||||
Cash flow activities | ||||||||||||
Net cash provided by operating activities | $ | 123,255 | $ | 95,680 | ||||||||
Net cash used in investing activities | (110,652) | (82,003) | ||||||||||
Net cash used in financing activities | (13,057) | (25,209) | ||||||||||
Net decrease in cash and cash equivalents | (454) | (11,532) | ||||||||||
Cash and cash equivalents at beginning of the period | 17,964 | 29,086 | ||||||||||
Cash and cash equivalents at end of the period | $ | 17,510 | $ | 17,554 | ||||||||
SPARTANNASH COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||
Table 1: Sales and Operating Earnings by Segment | |||||||||||||||||||||||||||||||
12 Weeks Ended | 40 Weeks Ended | ||||||||||||||||||||||||||||||
(In thousands) | October 5, 2024 | October 7, 2023 | October 5, 2024 | October 7, 2023 | |||||||||||||||||||||||||||
Wholesale Segment: | |||||||||||||||||||||||||||||||
Net sales | $ | 1,576,082 | 70.0 | % | $ | 1,602,000 | 70.8 | % | $ | 5,144,731 | 70.6 | % | $ | 5,321,048 | 71.1 | % | |||||||||||||||
Operating earnings | 21,054 | 18,153 | 79,123 | 66,020 | |||||||||||||||||||||||||||
Retail Segment: | |||||||||||||||||||||||||||||||
Net sales | 674,599 | 30.0 | % | 662,248 | 29.2 | % | 2,142,969 | 29.4 | % | 2,162,988 | 28.9 | % | |||||||||||||||||||
Operating earnings | 3,865 | 4,918 | 2,538 | 17,150 | |||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||
Net sales | $ | 2,250,681 | 100.0 | % | $ | 2,264,248 | 100.0 | % | $ | 7,287,700 | 100.0 | % | $ | 7,484,036 | 100.0 | % | |||||||||||||||
Operating earnings | 24,919 | 23,071 | 81,661 | 83,170 | |||||||||||||||||||||||||||
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with GAAP, the Company also provides information regarding adjusted earnings from continuing operations, as well as per diluted share ("adjusted EPS"), net long-term debt, capital expenditures and IT capital, and adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA"). 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 earnings from continuing operations, and adjusted EBITDA exclude, among other items, LIFO expense, organizational realignment, severance associated with cost reduction initiatives, operating and non-operating costs associated with the postretirement plan amendment and settlement and a non-operating benefit associated with a pension refund from an annuity provider. Current year organizational realignment includes consulting and severance costs associated with the Company's change in its go-to-market strategy as part of its long-term plan, which relates to the reorganization of certain functions. Costs related to the postretirement plan amendment and settlement include operating and non-operating expenses associated with amortization of the prior service credit related to the amendment of the retiree medical plan, which are adjusted out of adjusted earnings from continuing operations. Postretirement plan amendment and settlement costs also include operating expenses related to payroll taxes which are adjusted out of all non-GAAP financial measures. The pension refund from an annuity provider is related to a terminated pension plan and is a non-operating benefit which is adjusted out of adjusted earnings from continuing operations. Prior year adjusted earnings from continuing operations, and adjusted EBITDA exclude, among other items, LIFO expense, organizational realignment, severance associated with cost reduction initiatives and a non-routine settlement related to a legal matter resulting from a previously closed operation that was resolved during the prior year and operating and non-operating costs associated with the postretirement plan amendment and settlement.
Each of these items are considered "non-operational" or "non-core" in nature.
The Company is unable to provide a full reconciliation of the GAAP to non-GAAP measures used in the Fiscal 2024 Outlook section of this press release without unreasonable effort because it is not possible to predict certain adjustment items with a reasonable degree of certainty since they are not yet known or quantifiable, and do not relate to the Company's normal operating activities. These adjustments may include, among other items, restructuring and asset impairment activity, acquisition and integration costs, severance, costs related to the postretirement plan amendment and settlement, and organizational realignment costs, and the impact of adjustments to the LIFO inventory reserve. This information is dependent upon future events, which may be outside of the Company's control and could have a significant impact on its GAAP financial results for fiscal 2024.
Table 2: Reconciliation of Net Earnings to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization | |||||||||||||||||||
12 Weeks Ended | 40 Weeks Ended | ||||||||||||||||||
(In thousands) | October 5, 2024 | October 7, 2023 | October 5, 2024 | October 7, 2023 | |||||||||||||||
Net earnings | $ | 10,920 | $ | 11,127 | $ | 35,380 | $ | 41,932 | |||||||||||
Income tax expense | 4,300 | 3,450 | 14,152 | 13,530 | |||||||||||||||
Other expenses, net | 9,699 | 8,494 | 32,129 | 27,708 | |||||||||||||||
Operating earnings | 24,919 | 23,071 | 81,661 | 83,170 | |||||||||||||||
Adjustments: | |||||||||||||||||||
LIFO expense | 1,517 | 6,606 | 5,046 | 22,445 | |||||||||||||||
Depreciation and amortization | 24,159 | 23,042 | 78,147 | 75,245 | |||||||||||||||
Acquisition and integration, net | 272 | 2,130 | 3,212 | 2,259 | |||||||||||||||
Restructuring and asset impairment, net | 5,397 | (458) | 17,272 | 1,371 | |||||||||||||||
Cloud computing amortization | 1,748 | 1,259 | 5,606 | 3,685 | |||||||||||||||
Organizational realignment, net | 240 | 2,681 | 1,915 | 4,710 | |||||||||||||||
Severance associated with cost reduction initiatives | 279 | 39 | 420 | 311 | |||||||||||||||
Stock-based compensation | 2,519 | 2,461 | 8,139 | 10,073 | |||||||||||||||
Stock warrant | 184 | 319 | 700 | 1,279 | |||||||||||||||
Non-cash rent | (655) | (531) | (2,281) | (2,094) | |||||||||||||||
(Gain) loss on disposal of assets | (92) | 258 | (48) | 304 | |||||||||||||||
Legal settlement | — | — | — | 900 | |||||||||||||||
Postretirement plan amendment and settlement | — | — | 99 | 94 | |||||||||||||||
Adjusted EBITDA | $ | 60,487 | $ | 60,877 | $ | 199,888 | $ | 203,752 | |||||||||||
Wholesale: | |||||||||||||||||||
Operating earnings | $ | 21,054 | $ | 18,153 | $ | 79,123 | $ | 66,020 | |||||||||||
Adjustments: | |||||||||||||||||||
LIFO expense | 1,153 | 4,411 | 3,861 | 16,734 | |||||||||||||||
Depreciation and amortization | 12,747 | 12,151 | 41,126 | 39,165 | |||||||||||||||
Acquisition and integration, net | 71 | 65 | 2,048 | 189 | |||||||||||||||
Restructuring and asset impairment, net | 6,824 | (293) | 6,792 | 688 | |||||||||||||||
Cloud computing amortization | 1,098 | 834 | 3,622 | 2,499 | |||||||||||||||
Organizational realignment, net | 148 | 1,673 | 1,194 | 2,939 | |||||||||||||||
Severance associated with cost reduction initiatives | 131 | 39 | 230 | 296 | |||||||||||||||
Stock-based compensation | 1,711 | 1,621 | 5,572 | 6,615 | |||||||||||||||
Stock warrant | 184 | 319 | 700 | 1,279 | |||||||||||||||
Non-cash rent | (246) | — | (789) | (138) | |||||||||||||||
(Gain) loss on disposal of assets | (108) | 24 | (127) | (11) | |||||||||||||||
Legal settlement | — | — | — | 900 | |||||||||||||||
Postretirement plan amendment and settlement | — | — | 62 | 59 | |||||||||||||||
Adjusted EBITDA | $ | 44,767 | $ | 38,997 | $ | 143,414 | $ | 137,234 | |||||||||||
Retail: | |||||||||||||||||||
Operating earnings | $ | 3,865 | $ | 4,918 | $ | 2,538 | $ | 17,150 | |||||||||||
Adjustments: | |||||||||||||||||||
LIFO expense | 364 | 2,195 | 1,185 | 5,711 | |||||||||||||||
Depreciation and amortization | 11,412 | 10,891 | 37,021 | 36,080 | |||||||||||||||
Acquisition and integration, net | 201 | 2,065 | 1,164 | 2,070 | |||||||||||||||
Restructuring and asset impairment, net | (1,427) | (165) | 10,480 | 683 | |||||||||||||||
Cloud computing amortization | 650 | 425 | 1,984 | 1,186 | |||||||||||||||
Organizational realignment, net | 92 | 1,008 | 721 | 1,771 | |||||||||||||||
Severance associated with cost reduction initiatives | 148 | — | 190 | 15 | |||||||||||||||
Stock-based compensation | 808 | 840 | 2,567 | 3,458 | |||||||||||||||
Non-cash rent | (409) | (531) | (1,492) | (1,956) | |||||||||||||||
Loss on disposal of assets | 16 | 234 | 79 | 315 | |||||||||||||||
Postretirement plan amendment and settlement | — | — | 37 | 35 | |||||||||||||||
Adjusted EBITDA | $ | 15,720 | $ | 21,880 | $ | 56,474 | $ | 66,518 | |||||||||||
Table 2: Reconciliation of Net Earnings to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization, continued | |||||||||||||
52 Weeks Ended | |||||||||||||
(In thousands) | 2023 | ||||||||||||
Net earnings | $ | 52,237 | |||||||||||
Income tax expense | 17,888 | ||||||||||||
Other expenses, net | 36,587 | ||||||||||||
Operating earnings | 106,712 | ||||||||||||
Adjustments: | |||||||||||||
LIFO expense | 16,104 | ||||||||||||
Depreciation and amortization | 98,639 | ||||||||||||
Acquisition and integration, net | 3,416 | ||||||||||||
Restructuring and asset impairment, net | 9,190 | ||||||||||||
Cloud computing amortization | 5,034 | ||||||||||||
Organizational realignment, net | 5,239 | ||||||||||||
Severance associated with cost reduction initiatives | 318 | ||||||||||||
Stock-based compensation | 12,536 | ||||||||||||
Stock warrant | 1,559 | ||||||||||||
Non-cash rent | (2,599) | ||||||||||||
Loss on disposal of assets | 259 | ||||||||||||
Legal settlement | 900 | ||||||||||||
Postretirement plan amendment and settlement | 94 | ||||||||||||
Adjusted EBITDA | $ | 257,401 | |||||||||||
Notes: Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("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 share-based payments (equity awards measured in accordance with ASC 718, Stock Compensation, which include both stock-based compensation to employees and stock warrants issued to non-employees) and the LIFO provision, as well as adjustments for items that do not reflect the ongoing operating activities of the Company.
Adjusted EBITDA and adjusted EBITDA by segment are not measures of performance under GAAP 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 Net Earnings to | |||||||||||||||||||||
12 Weeks Ended | |||||||||||||||||||||
October 5, 2024 | October 7, 2023 | ||||||||||||||||||||
per diluted | per diluted | ||||||||||||||||||||
(In thousands, except per share amounts) | Earnings | share | Earnings | share | |||||||||||||||||
Net earnings | $ | 10,920 | $ | 0.32 | $ | 11,127 | $ | 0.32 | |||||||||||||
Adjustments: | |||||||||||||||||||||
LIFO expense | 1,517 | 6,606 | |||||||||||||||||||
Acquisition and integration, net | 272 | 2,130 | |||||||||||||||||||
Restructuring and asset impairment, net | 5,397 | (458) | |||||||||||||||||||
Organizational realignment, net | 240 | 2,681 | |||||||||||||||||||
Severance associated with cost reduction initiatives | 279 | 39 | |||||||||||||||||||
Postretirement plan amendment and settlement | — | (762) | |||||||||||||||||||
Pension refund from annuity provider | (239) | — | |||||||||||||||||||
Total adjustments | 7,466 | 10,236 | |||||||||||||||||||
Income tax effect on adjustments (a) | (1,895) | (2,600) | |||||||||||||||||||
Total adjustments, net of taxes | 5,571 | 0.16 | 7,636 | 0.22 | |||||||||||||||||
Adjusted earnings from continuing operations | $ | 16,491 | $ | 0.48 | $ | 18,763 | $ | 0.54 | |||||||||||||
40 Weeks Ended | |||||||||||||||||||||
October 5, 2024 | October 7, 2023 | ||||||||||||||||||||
per diluted | per diluted | ||||||||||||||||||||
(In thousands, except per share amounts) | Earnings | share | Earnings | share | |||||||||||||||||
Net earnings | $ | 35,380 | $ | 1.03 | $ | 41,932 | $ | 1.20 | |||||||||||||
Adjustments: | |||||||||||||||||||||
LIFO expense | 5,046 | 22,445 | |||||||||||||||||||
Acquisition and integration, net | 3,212 | 2,259 | |||||||||||||||||||
Restructuring and asset impairment, net | 17,272 | 1,371 | |||||||||||||||||||
Organizational realignment, net | 1,915 | 4,710 | |||||||||||||||||||
Severance associated with cost reduction initiatives | 420 | 311 | |||||||||||||||||||
Postretirement plan amendment and settlement | (1,458) | (2,411) | |||||||||||||||||||
Pension refund from annuity provider | (239) | — | |||||||||||||||||||
Legal settlement | — | 900 | |||||||||||||||||||
Total adjustments | 26,168 | 29,585 | |||||||||||||||||||
Income tax effect on adjustments (a) | (6,698) | (7,525) | |||||||||||||||||||
Total adjustments, net of taxes | 19,470 | 0.57 | 22,060 | 0.63 | |||||||||||||||||
Adjusted earnings from continuing operations | $ | 54,850 | $ | 1.60 | $ | 63,992 | $ | 1.83 | |||||||||||||
(a) | The income tax effect on adjustments is computed by applying the effective tax rate, before discrete tax items, to the total adjustments for the period. |
52 Weeks Ended | ||||||||||
December 30, 2023 | ||||||||||
per diluted | ||||||||||
(In thousands, except per share data) | Earnings | share | ||||||||
Net earnings | $ | 52,237 | $ | 1.50 | ||||||
Adjustments: | ||||||||||
LIFO expense | 16,104 | |||||||||
Acquisition and integration, net | 3,416 | |||||||||
Restructuring and asset impairment, net | 9,190 | |||||||||
Organizational realignment, net | 5,239 | |||||||||
Severance associated with cost reduction initiatives | 318 | |||||||||
Legal settlement | 900 | |||||||||
Postretirement plan amendment and settlement | (3,174) | |||||||||
Total adjustments | 31,993 | |||||||||
Income tax effect on adjustments (a) | (8,218) | |||||||||
Total adjustments, net of taxes | 23,775 | 0.68 | ||||||||
Adjusted earnings from continuing operations | $ | 76,012 | $ | 2.18 | ||||||
(a) | The income tax effect on adjustments is computed by applying the effective tax rate, before discrete tax items, to the total adjustments for the period. |
Notes: Adjusted earnings from continuing operations, as well as per diluted share ("adjusted EPS"), is a non-GAAP operating financial measure that the Company defines as net 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 earnings from continuing operations is not a measure of performance under GAAP 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 4: Reconciliation of Long-Term Debt and Finance Lease Obligations to Net Long-Term Debt and Net Earnings to Adjusted EBITDA | |||||||||
(In thousands) | October 5, 2024 | July 13, 2024 | |||||||
Current portion of long-term debt and finance lease liabilities | $ | 9,747 | $ | 9,754 | |||||
Long-term debt and finance lease liabilities | 626,957 | 586,427 | |||||||
Total debt | 636,704 | 596,181 | |||||||
Cash and cash equivalents | (17,510) | (25,242) | |||||||
Net long-term debt | $ | 619,194 | $ | 570,939 | |||||
Rolling 52- Weeks Ended | |||||||||
(In thousands, except for ratio) | October 5, 2024 | July 13, 2024 | |||||||
Net earnings | $ | 45,685 | $ | 45,892 | |||||
Income tax expense | 18,510 | 17,660 | |||||||
Other expenses, net | 41,008 | 39,803 | |||||||
Operating earnings | 105,203 | 103,355 | |||||||
Adjustments: | |||||||||
LIFO (benefit) expense | (1,295) | 3,794 | |||||||
Depreciation and amortization | 101,541 | 100,424 | |||||||
Acquisition and integration, net | 4,369 | 6,227 | |||||||
Restructuring and asset impairment, net | 25,091 | 19,236 | |||||||
Cloud computing amortization | 6,955 | 6,466 | |||||||
Organizational realignment, net | 2,444 | 4,885 | |||||||
Severance associated with cost reduction initiatives | 427 | 187 | |||||||
Stock-based compensation | 10,602 | 10,544 | |||||||
Stock warrant | 980 | 1,115 | |||||||
Non-cash rent | (2,786) | (2,662) | |||||||
(Gain) loss on disposal of assets | (93) | 257 | |||||||
Postretirement plan amendment and settlement | 99 | 99 | |||||||
Adjusted EBITDA | $ | 253,537 | $ | 253,927 | |||||
Net long-term debt to adjusted EBITDA ratio | 2.4 | 2.2 | |||||||
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 5: Reconciliation of Purchases of Property and Equipment to Capital Expenditures and IT Capital | ||||||||||||
40 Weeks Ended | ||||||||||||
(In thousands) | October 5, 2024 | October 7, 2023 | ||||||||||
Purchases of property and equipment | $ | 97,867 | $ | 86,212 | ||||||||
Plus: | ||||||||||||
Cloud computing spend | 8,401 | 4,065 | ||||||||||
Capital expenditures and IT capital | $ | 106,268 | $ | 90,277 | ||||||||
52 Weeks Ended | ||||||||||
(In thousands) | December 30, 2023 | |||||||||
Purchases of property and equipment | $ | 120,330 | ||||||||
Plus: | ||||||||||
Cloud computing spend | 7,040 | |||||||||
Capital expenditures and IT capital | $ | 127,370 | ||||||||
Notes: Capital expenditures and IT capital is a non-GAAP financial measure calculated by adding spending related to the development of cloud computing applications 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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/spartannash-announces-third-quarter-fiscal-2024-results-302297882.html
SOURCE SpartanNash
FAQ
What were SpartanNash's net sales for Q3 fiscal 2024?
How did the Wholesale segment perform in Q3 fiscal 2024?
What was the Retail segment's sales growth in Q3 fiscal 2024?
What was SpartanNash's adjusted EPS for Q3 fiscal 2024?
What is SpartanNash's updated guidance for fiscal 2024?
What is SpartanNash's outlook for fiscal 2025?
