Delivers Fiscal 2023 Growth in Net Earnings of
51% and Adjusted EBITDA(1) of 6%
Provides Fiscal 2024 Outlook
GRAND RAPIDS, Mich.,
Feb. 15,
2024 /PRNewswire/ -- Food solutions company
SpartanNash (the "Company") (Nasdaq: SPTN) today reported
financial results for its 12-week fourth quarter and 52-week fiscal
year ended Dec. 30, 2023.
"Our team is proud of another strong year in which we have
demonstrated year-over-year growth, delivered record profitability,
and performed in line with our expectations, all in spite of a
challenging macroeconomic environment," said SpartanNash President
and CEO Tony Sarsam. "We are on
track to achieve the objectives in our long-term strategic plan as
we focus on creating enhanced customer value and capturing
additional cost savings from our transformational initiatives. We
expect 2024 to be another pivotal year of market share growth in
our Wholesale and Retail segments. Our talented Associates have
built a strong foundation for us to pursue both organic and
inorganic opportunities."
Fourth Quarter Highlights(2)
- Net sales decreased 2.8% to $2.25
billion, driven by lower volumes in both the Wholesale and
Retail segments.
- Wholesale segment net sales decreased 2.0% to $1.60 billion due primarily to lower volume in
the national accounts customer channel.
- Retail segment net sales decreased 4.5% to $647.0 million, with comparable store sales down
2.8%. The net sales decrease was primarily driven by a reduction in
food assistance program benefits and lower fuel sales.
- Net earnings of $0.30 per diluted
share, compared to $0.02 per diluted
share in the prior year.
- The increase was primarily due to a higher gross profit rate
and lower incentive compensation. This favorability was partially
offset by lower unit volumes and an increase in restructuring and
asset impairment charges.
- Adjusted EPS(3) of $0.35, compared to $0.28 in the prior year. Adjusted
EBITDA(1) of $53.6
million, compared to $47.2
million in the prior year.
- These measures exclude, among other items, the impact of the
LIFO provision and restructuring and asset impairment charges.
Fiscal 2023 Highlights(4)
- Net sales increased 0.9% to $9.73
billion.
- Wholesale net sales increased 1.1% to $6.92 billion.
- Retail increased 0.4% to $2.81
billion, with a comparable store sales increase of
2.0%.
- Net earnings of $1.50 per diluted
share increased compared to $0.95 per
diluted share.
- Adjusted EPS(3) of $2.18 decreased from $2.33. Adjusted EBITDA(1) of
$257.4 million increased from
$242.9 million.
- Cash generated from operating activities of $89.3 million decreased from $110.4 million.
- Net long-term debt(5) to adjusted
EBITDA(1) ratio of 2.3x at year end increased
sequentially compared to 2.1x at the end of the third quarter.
- Capital expenditures and IT capital(6) of
$127.4 million increased compared to
$102.1 million.
- Returned $48.3 million to
shareholders through $18.6 million in
share repurchases and $29.7 million
in dividends compared to $62.2
million returned to shareholders in the prior year.
(1)
|
A reconciliation of
net earnings to adjusted EBITDA, a non-GAAP financial measure, is
provided in Table 2.
|
(2)
|
All comparisons are
for the fourth quarter of 2023 compared with the fourth quarter of
2022, unless otherwise noted.
|
(3)
|
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.
|
(4)
|
All comparisons are
for the fiscal year 2023 compared with the fiscal year 2022, unless
otherwise noted.
|
(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
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
The following table provides the Company's guidance for fiscal
2024:
|
Fiscal
2023
|
|
|
Fiscal 2024
Outlook
|
|
(In millions, except
adjusted EPS(3))
|
Actual
|
|
|
Low
|
|
|
High
|
|
Total net
sales
|
$
|
|
9,729
|
|
|
$
|
|
9,700
|
|
|
$
|
|
9,900
|
|
Adjusted
EBITDA(1)
|
$
|
|
257
|
|
|
$
|
|
255
|
|
|
$
|
|
270
|
|
Adjusted
EPS(3)
|
$
|
|
2.18
|
|
|
$
|
|
1.85
|
|
|
$
|
|
2.10
|
|
Capital expenditures
and IT capital(6)
|
$
|
|
127
|
|
|
$
|
|
135
|
|
|
$
|
|
145
|
|
Guidance incorporates the Company's long-term strategic
initiatives, including all transformational programs and tuck-in
acquisitions.
Conference Call & Supplemental Earnings
Presentation
The Company will host a conference call to discuss its quarterly
results with additional comments and details on Thursday, February 15, 2024, at 8:30 a.m. ET. There will also be a simultaneous,
live webcast made available at SpartanNash's website at
www.spartannash.com/webcasts under the "Investor Relations" section
and will remain archived on the Company's website through
Thursday, February 29, 2024.
A supplemental quarterly earnings presentation will also be
available on the Company's website at
www.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 approximately 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 U.S. military commissaries and exchanges.
The Company distributes products for every aisle in the grocery
store, from fresh produce to household goods to its OwnBrands,
which include the Our Family® portfolio of products. On
the retail side, SpartanNash operates 144 brick-and-mortar grocery
stores, primarily under the banners of Family Fare, Martin's Super
Markets and D&W Fresh Market, in addition to dozens of
pharmacies and fuel centers. Leveraging insights and solutions
across its segments, SpartanNash offers a full suite of support
services for independent grocers. For more information, visit
spartannash.com.
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 U.S. military
commissaries, including the termination of the program or not
achieving the desired results; impairment charges for goodwill or
other long-lived assets; the Company's level of indebtedness;
interest rate fluctuations; the Company's ability to service its
debt and to comply with debt covenants; changes in government
regulations; labor relations issues; changes in the military
commissary system, including its supply chain, or in the level of
governmental funding; product recalls and other product-related
safety concerns; cost increases related to multi-employer pension
plans; and other risks and uncertainties listed under "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in the Company's most recent
Annual Report on Form 10-K and in subsequent filings with the
Securities and Exchange Commission. Additional risks and
uncertainties not currently known to the Company or that the
Company currently believes are immaterial also may impair its
business, operations, liquidity, financial condition and prospects.
The Company undertakes no obligation to update or revise its
forward-looking statements to reflect developments that occur or
information obtained after the date of this press release.
INVESTOR CONTACT:
Kayleigh
Campbell
Head of Investor Relations
kayleigh.campbell@spartannash.com
MEDIA CONTACT:
Adrienne Chance
SVP, Communications
press@spartannash.com
SPARTANNASH COMPANY
AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF
EARNINGS (Unaudited)
|
|
|
12 Weeks
Ended
|
|
|
52 Weeks
Ended
|
|
|
December
30,
|
|
|
December
31,
|
|
|
December
30,
|
|
|
December
31,
|
|
(In thousands,
except per share amounts)
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Net
sales
|
$
|
|
2,245,183
|
|
|
$
|
|
2,309,040
|
|
|
$
|
|
9,729,219
|
|
|
$
|
|
9,643,100
|
|
Cost of
sales
|
|
|
1,906,214
|
|
|
|
|
1,967,601
|
|
|
|
|
8,243,663
|
|
|
|
|
8,145,625
|
|
Gross
profit
|
|
|
338,969
|
|
|
|
|
341,439
|
|
|
|
|
1,485,556
|
|
|
|
|
1,497,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative
|
|
|
306,451
|
|
|
|
|
333,361
|
|
|
|
|
1,366,238
|
|
|
|
|
1,427,783
|
|
Acquisition and integration, net
|
|
|
1,157
|
|
|
|
|
245
|
|
|
|
|
3,416
|
|
|
|
|
343
|
|
Restructuring and asset impairment, net
|
|
|
7,819
|
|
|
|
|
(933)
|
|
|
|
|
9,190
|
|
|
|
|
805
|
|
Total
operating expenses
|
|
|
315,427
|
|
|
|
|
332,673
|
|
|
|
|
1,378,844
|
|
|
|
|
1,428,931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
|
|
23,542
|
|
|
|
|
8,766
|
|
|
|
|
106,712
|
|
|
|
|
68,544
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
expenses and (income)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
|
|
9,669
|
|
|
|
|
8,027
|
|
|
|
|
39,887
|
|
|
|
|
22,791
|
|
Other,
net
|
|
|
(790)
|
|
|
|
|
(778)
|
|
|
|
|
(3,300)
|
|
|
|
|
(1,162)
|
|
Total other
expenses, net
|
|
|
8,879
|
|
|
|
|
7,249
|
|
|
|
|
36,587
|
|
|
|
|
21,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
before income taxes
|
|
|
14,663
|
|
|
|
|
1,517
|
|
|
|
|
70,125
|
|
|
|
|
46,915
|
|
Income
tax expense
|
|
|
4,358
|
|
|
|
|
867
|
|
|
|
|
17,888
|
|
|
|
|
12,397
|
|
Net
earnings
|
$
|
|
10,305
|
|
|
$
|
|
650
|
|
|
$
|
|
52,237
|
|
|
$
|
|
34,518
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
per basic common share
|
$
|
|
0.30
|
|
|
$
|
|
0.02
|
|
|
$
|
|
1.53
|
|
|
$
|
|
0.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
per diluted common share
|
$
|
|
0.30
|
|
|
$
|
|
0.02
|
|
|
$
|
|
1.50
|
|
|
$
|
|
0.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
34,039
|
|
|
|
|
34,732
|
|
|
|
|
34,211
|
|
|
|
|
35,279
|
|
Diluted
|
|
|
34,670
|
|
|
|
|
35,866
|
|
|
|
|
34,901
|
|
|
|
|
36,313
|
|
SPARTANNASH COMPANY
AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE
SHEETS (Unaudited)
|
|
|
December
30,
|
|
|
December
31,
|
|
(In
thousands)
|
2023
|
|
|
2022
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
|
17,964
|
|
|
$
|
|
29,086
|
|
Accounts and
notes receivable, net
|
|
|
421,859
|
|
|
|
|
404,016
|
|
Inventories,
net
|
|
|
575,226
|
|
|
|
|
571,065
|
|
Prepaid
expenses and other current assets
|
|
|
62,440
|
|
|
|
|
62,244
|
|
Total
current assets
|
|
|
1,077,489
|
|
|
|
|
1,066,411
|
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
649,071
|
|
|
|
|
610,220
|
|
Goodwill
|
|
|
182,160
|
|
|
|
|
182,160
|
|
Intangible
assets, net
|
|
|
101,535
|
|
|
|
|
106,341
|
|
Operating
lease assets
|
|
|
242,146
|
|
|
|
|
257,047
|
|
Other assets,
net
|
|
|
103,174
|
|
|
|
|
84,382
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
|
2,355,575
|
|
|
$
|
|
2,306,561
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
|
473,419
|
|
|
$
|
|
487,215
|
|
Accrued payroll
and benefits
|
|
|
78,076
|
|
|
|
|
103,048
|
|
Other accrued
expenses
|
|
|
57,609
|
|
|
|
|
62,465
|
|
Current portion
of operating lease liabilities
|
|
|
41,979
|
|
|
|
|
45,453
|
|
Current portion
of long-term debt and finance lease liabilities
|
|
|
8,813
|
|
|
|
|
6,789
|
|
Total
current liabilities
|
|
|
659,896
|
|
|
|
|
704,970
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
|
73,904
|
|
|
|
|
66,293
|
|
Operating lease
liabilities
|
|
|
226,118
|
|
|
|
|
239,062
|
|
Other long-term
liabilities
|
|
|
28,808
|
|
|
|
|
33,376
|
|
Long-term debt
and finance lease liabilities
|
|
|
588,667
|
|
|
|
|
496,792
|
|
Total
long-term liabilities
|
|
|
917,497
|
|
|
|
|
835,523
|
|
|
|
|
|
|
|
|
|
|
|
Commitments
and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
|
|
|
|
Common stock,
voting, no par value; 100,000 shares
authorized; 34,610 and 35,079 shares
outstanding
|
|
|
460,299
|
|
|
|
|
468,061
|
|
Preferred stock,
no par value, 10,000 shares
authorized; no shares
outstanding
|
|
|
—
|
|
|
|
|
—
|
|
Accumulated
other comprehensive income
|
|
|
796
|
|
|
|
|
2,979
|
|
Retained
earnings
|
|
|
317,087
|
|
|
|
|
295,028
|
|
Total
shareholders' equity
|
|
|
778,182
|
|
|
|
|
766,068
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and
shareholders' equity
|
$
|
|
2,355,575
|
|
|
$
|
|
2,306,561
|
|
SPARTANNASH COMPANY
AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (Unaudited)
|
|
|
|
|
|
52 Weeks
Ended
|
|
(In
thousands)
|
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
Cash flow
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by operating activities
|
|
|
|
$
|
|
89,327
|
|
|
$
|
|
110,350
|
|
Net cash used
in investing activities
|
|
|
|
|
|
(116,517)
|
|
|
|
|
(100,948)
|
|
Net cash
provided by financing activities
|
|
|
|
|
|
16,068
|
|
|
|
|
9,018
|
|
Net (decrease)
increase in cash and cash equivalents
|
|
|
|
|
|
(11,122)
|
|
|
|
|
18,420
|
|
Cash and cash
equivalents at beginning of the period
|
|
|
|
|
|
29,086
|
|
|
|
|
10,666
|
|
Cash and cash
equivalents at end of the period
|
|
|
|
$
|
|
17,964
|
|
|
$
|
|
29,086
|
|
SPARTANNASH COMPANY
AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL
DATA
|
|
Table 1: Sales and
Operating Earnings by Segment (Unaudited)
|
|
|
12 Weeks
Ended
|
|
|
52 Weeks
Ended
|
|
(In
thousands)
|
December 30,
2023
|
|
|
December 31,
2022
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
Wholesale
Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
$
|
|
1,598,169
|
|
|
71.2
|
%
|
|
$
|
|
1,631,503
|
|
|
70.7
|
%
|
|
$
|
|
6,919,217
|
|
|
71.1
|
%
|
|
$
|
|
6,845,236
|
|
|
71.0
|
%
|
Operating
earnings
|
|
|
21,681
|
|
|
|
|
|
|
|
303
|
|
|
|
|
|
|
|
87,701
|
|
|
|
|
|
|
|
55,137
|
|
|
|
|
Retail
Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
|
647,014
|
|
|
28.8
|
%
|
|
|
|
677,537
|
|
|
29.3
|
%
|
|
|
|
2,810,002
|
|
|
28.9
|
%
|
|
|
|
2,797,864
|
|
|
29.0
|
%
|
Operating
earnings
|
|
|
1,861
|
|
|
|
|
|
|
|
8,463
|
|
|
|
|
|
|
|
19,011
|
|
|
|
|
|
|
|
13,407
|
|
|
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
$
|
|
2,245,183
|
|
|
100.0
|
%
|
|
$
|
|
2,309,040
|
|
|
100.0
|
%
|
|
$
|
|
9,729,219
|
|
|
100.0
|
%
|
|
$
|
|
9,643,100
|
|
|
100.0
|
%
|
Operating
earnings
|
|
|
23,542
|
|
|
|
|
|
|
|
8,766
|
|
|
|
|
|
|
|
106,712
|
|
|
|
|
|
|
|
68,544
|
|
|
|
|
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, a non-routine settlement related to a legal
matter resulting from a previously closed operation that was
resolved during the year and operating and non-operating costs
associated with the postretirement plan amendment and settlement.
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 non-operating
expenses associated with recognition of plan settlement losses and
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. Prior year adjusted earnings from continuing operations,
and adjusted EBITDA exclude, among other items, LIFO expense, costs
related to shareholder activism, operating and non-operating costs
associated with the postretirement plan amendment and settlement,
non-operating costs associated with the write off of certain
unamortized deferred financing costs related to the debt
modification, organizational realignment, and severance associated
with cost reduction initiatives. Costs related to shareholder
activism include consulting, legal and other expenses incurred in
relation to shareholder activism activities. Prior year
organizational realignment includes benefits for associates
terminated as part of leadership transition plans, which do not
meet the definition of a reduction-in-force.
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 (Adjusted EBITDA) (A
Non-GAAP Financial Measure) (Unaudited)
|
|
|
12 Weeks
Ended
|
|
|
52 Weeks
Ended
|
|
(In
thousands)
|
December 30,
2023
|
|
|
December 31,
2022
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
Net
earnings
|
$
|
|
10,305
|
|
|
$
|
|
650
|
|
|
$
|
|
52,237
|
|
|
$
|
|
34,518
|
|
Income tax
expense
|
|
|
4,358
|
|
|
|
|
867
|
|
|
|
|
17,888
|
|
|
|
|
12,397
|
|
Other expenses,
net
|
|
|
8,879
|
|
|
|
|
7,249
|
|
|
|
|
36,587
|
|
|
|
|
21,629
|
|
Operating
earnings
|
|
|
23,542
|
|
|
|
|
8,766
|
|
|
|
|
106,712
|
|
|
|
|
68,544
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO (benefit)
expense
|
|
|
(6,341)
|
|
|
|
|
13,907
|
|
|
|
|
16,104
|
|
|
|
|
56,823
|
|
Depreciation
and amortization
|
|
|
23,394
|
|
|
|
|
21,906
|
|
|
|
|
98,639
|
|
|
|
|
94,180
|
|
Acquisition and
integration, net
|
|
|
1,157
|
|
|
|
|
245
|
|
|
|
|
3,416
|
|
|
|
|
343
|
|
Restructuring
and asset impairment, net
|
|
|
7,819
|
|
|
|
|
(933)
|
|
|
|
|
9,190
|
|
|
|
|
805
|
|
Cloud computing
amortization
|
|
|
1,349
|
|
|
|
|
956
|
|
|
|
|
5,034
|
|
|
|
|
3,650
|
|
Organizational
realignment, net
|
|
|
529
|
|
|
|
|
—
|
|
|
|
|
5,239
|
|
|
|
|
1,859
|
|
Severance
associated with cost reduction initiatives
|
|
|
7
|
|
|
|
|
36
|
|
|
|
|
318
|
|
|
|
|
831
|
|
Stock-based
compensation
|
|
|
2,463
|
|
|
|
|
1,381
|
|
|
|
|
12,536
|
|
|
|
|
8,589
|
|
Stock
warrant
|
|
|
280
|
|
|
|
|
499
|
|
|
|
|
1,559
|
|
|
|
|
2,158
|
|
Non-cash
rent
|
|
|
(505)
|
|
|
|
|
(753)
|
|
|
|
|
(2,599)
|
|
|
|
|
(3,444)
|
|
(Gain) loss on
disposal of assets
|
|
|
(45)
|
|
|
|
|
1,141
|
|
|
|
|
259
|
|
|
|
|
1,073
|
|
Legal
settlement
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
900
|
|
|
|
|
—
|
|
Postretirement
plan amendment and settlement
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
94
|
|
|
|
|
133
|
|
Costs related
to shareholder activism
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
7,335
|
|
Adjusted
EBITDA
|
$
|
|
53,649
|
|
|
$
|
|
47,151
|
|
|
$
|
|
257,401
|
|
|
$
|
|
242,879
|
|
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
|
|
|
52 Weeks
Ended
|
|
(In
thousands)
|
December 30,
2023
|
|
|
December 31,
2022
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
Wholesale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
$
|
|
21,681
|
|
|
$
|
|
303
|
|
|
$
|
|
87,701
|
|
|
$
|
|
55,137
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO (benefit)
expense
|
|
|
(4,346)
|
|
|
|
|
13,144
|
|
|
|
|
12,388
|
|
|
|
|
48,282
|
|
Depreciation
and amortization
|
|
|
12,370
|
|
|
|
|
10,999
|
|
|
|
|
51,535
|
|
|
|
|
47,601
|
|
Acquisition and
integration, net
|
|
|
27
|
|
|
|
|
239
|
|
|
|
|
216
|
|
|
|
|
239
|
|
Restructuring
and asset impairment, net
|
|
|
7,860
|
|
|
|
|
(147)
|
|
|
|
|
8,548
|
|
|
|
|
(2,363)
|
|
Cloud computing
amortization
|
|
|
915
|
|
|
|
|
664
|
|
|
|
|
3,414
|
|
|
|
|
2,537
|
|
Organizational
realignment, net
|
|
|
330
|
|
|
|
|
—
|
|
|
|
|
3,269
|
|
|
|
|
1,160
|
|
Severance
associated with cost reduction initiatives
|
|
|
7
|
|
|
|
|
27
|
|
|
|
|
303
|
|
|
|
|
689
|
|
Stock-based
compensation
|
|
|
1,601
|
|
|
|
|
903
|
|
|
|
|
8,216
|
|
|
|
|
5,646
|
|
Stock
warrant
|
|
|
280
|
|
|
|
|
499
|
|
|
|
|
1,559
|
|
|
|
|
2,158
|
|
Non-cash
rent
|
|
|
4
|
|
|
|
|
(94)
|
|
|
|
|
(134)
|
|
|
|
|
(382)
|
|
(Gain) loss on
disposal of assets
|
|
|
(72)
|
|
|
|
|
696
|
|
|
|
|
(83)
|
|
|
|
|
512
|
|
Legal
settlement
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
900
|
|
|
|
|
—
|
|
Postretirement
plan amendment and settlement
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
59
|
|
|
|
|
83
|
|
Costs related
to shareholder activism
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
4,577
|
|
Adjusted
EBITDA
|
$
|
|
40,657
|
|
|
$
|
|
27,233
|
|
|
$
|
|
177,891
|
|
|
$
|
|
165,876
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
$
|
|
1,861
|
|
|
$
|
|
8,463
|
|
|
$
|
|
19,011
|
|
|
$
|
|
13,407
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO (benefit)
expense
|
|
|
(1,995)
|
|
|
|
|
763
|
|
|
|
|
3,716
|
|
|
|
|
8,541
|
|
Depreciation
and amortization
|
|
|
11,024
|
|
|
|
|
10,907
|
|
|
|
|
47,104
|
|
|
|
|
46,579
|
|
Acquisition and
integration, net
|
|
|
1,130
|
|
|
|
|
6
|
|
|
|
|
3,200
|
|
|
|
|
104
|
|
Restructuring
and asset impairment, net
|
|
|
(41)
|
|
|
|
|
(786)
|
|
|
|
|
642
|
|
|
|
|
3,168
|
|
Cloud computing
amortization
|
|
|
434
|
|
|
|
|
292
|
|
|
|
|
1,620
|
|
|
|
|
1,113
|
|
Organizational
realignment, net
|
|
|
199
|
|
|
|
|
—
|
|
|
|
|
1,970
|
|
|
|
|
699
|
|
Severance
associated with cost reduction initiatives
|
|
|
—
|
|
|
|
|
9
|
|
|
|
|
15
|
|
|
|
|
142
|
|
Stock-based
compensation
|
|
|
862
|
|
|
|
|
478
|
|
|
|
|
4,320
|
|
|
|
|
2,943
|
|
Non-cash
rent
|
|
|
(509)
|
|
|
|
|
(659)
|
|
|
|
|
(2,465)
|
|
|
|
|
(3,062)
|
|
Loss on
disposal of assets
|
|
|
27
|
|
|
|
|
445
|
|
|
|
|
342
|
|
|
|
|
561
|
|
Postretirement
plan amendment and settlement
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
35
|
|
|
|
|
50
|
|
Costs related
to shareholder activism
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
2,758
|
|
Adjusted
EBITDA
|
$
|
|
12,992
|
|
|
$
|
|
19,918
|
|
|
$
|
|
79,510
|
|
|
$
|
|
77,003
|
|
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 Adjusted Earnings from
Continuing Operations, as well as per diluted share ("adjusted
EPS") (A Non-GAAP Financial
Measure) (Unaudited)
|
|
|
12 Weeks
Ended
|
|
|
|
December 30,
2023
|
|
|
|
December 31,
2022
|
|
|
|
|
|
|
per diluted
|
|
|
|
|
|
|
per diluted
|
|
|
(In thousands,
except per share amounts)
|
Earnings
|
|
|
share
|
|
|
|
Earnings
|
|
|
share
|
|
|
Net
earnings
|
$
|
|
10,305
|
|
|
$
|
|
0.30
|
|
|
|
$
|
|
650
|
|
|
$
|
|
0.02
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO (benefit)
expense
|
|
|
(6,341)
|
|
|
|
|
|
|
|
|
|
|
13,907
|
|
|
|
|
|
|
|
Acquisition and
integration, net
|
|
|
1,157
|
|
|
|
|
|
|
|
|
|
|
245
|
|
|
|
|
|
|
|
Restructuring
and asset impairment, net
|
|
|
7,819
|
|
|
|
|
|
|
|
|
|
|
(933)
|
|
|
|
|
|
|
|
Organizational
realignment, net
|
|
|
529
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
Severance
associated with cost reduction initiatives
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
36
|
|
|
|
|
|
|
|
Postretirement
plan amendment and settlement
|
|
|
(763)
|
|
|
|
|
|
|
|
|
|
|
(758)
|
|
|
|
|
|
|
|
Write off of
deferred financing costs
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
236
|
|
|
|
|
|
|
|
Total
adjustments
|
|
|
2,408
|
|
|
|
|
|
|
|
|
|
|
12,733
|
|
|
|
|
|
|
|
Income tax
effect on adjustments (a)
|
|
|
(693)
|
|
|
|
|
|
|
|
|
|
|
(3,213)
|
|
|
|
|
|
|
|
Total adjustments, net
of taxes
|
|
|
1,715
|
|
|
|
|
0.05
|
|
|
|
|
|
9,520
|
|
|
|
|
0.26
|
|
*
|
Adjusted
earnings from continuing operations
|
$
|
|
12,020
|
|
|
$
|
|
0.35
|
|
|
|
$
|
|
10,170
|
|
|
$
|
|
0.28
|
|
|
* Includes
rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
52 Weeks
Ended
|
|
|
|
December 30,
2023
|
|
|
|
December 31,
2022
|
|
|
|
|
|
|
per diluted
|
|
|
|
|
|
|
per diluted
|
|
|
(In thousands,
except per share amounts)
|
Earnings
|
|
|
share
|
|
|
|
Earnings
|
|
|
share
|
|
|
Net
earnings
|
$
|
|
52,237
|
|
|
$
|
|
1.50
|
|
|
|
$
|
|
34,518
|
|
|
$
|
|
0.95
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO
expense
|
|
|
16,104
|
|
|
|
|
|
|
|
|
|
|
56,823
|
|
|
|
|
|
|
|
Acquisition and
integration, net
|
|
|
3,416
|
|
|
|
|
|
|
|
|
|
|
343
|
|
|
|
|
|
|
|
Restructuring
and asset impairment, net
|
|
|
9,190
|
|
|
|
|
|
|
|
|
|
|
805
|
|
|
|
|
|
|
|
Organizational
realignment, net
|
|
|
5,239
|
|
|
|
|
|
|
|
|
|
|
1,859
|
|
|
|
|
|
|
|
Severance
associated with cost reduction initiatives
|
|
|
318
|
|
|
|
|
|
|
|
|
|
|
831
|
|
|
|
|
|
|
|
Pension refund
from annuity provider
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
(200)
|
|
|
|
|
|
|
|
Legal
settlement
|
|
|
900
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
Postretirement
plan amendment and settlement
|
|
|
(3,174)
|
|
|
|
|
|
|
|
|
|
|
(776)
|
|
|
|
|
|
|
|
Costs related
to shareholder activism
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
7,335
|
|
|
|
|
|
|
|
Write off of
deferred financing costs
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
236
|
|
|
|
|
|
|
|
Total
adjustments
|
|
|
31,993
|
|
|
|
|
|
|
|
|
|
|
67,256
|
|
|
|
|
|
|
|
Income tax
effect on adjustments (a)
|
|
|
(8,218)
|
|
|
|
|
|
|
|
|
|
|
(17,083)
|
|
|
|
|
|
|
|
Total
adjustments, net of taxes
|
|
|
23,775
|
|
|
|
|
0.68
|
|
|
|
|
|
50,173
|
|
|
|
|
1.38
|
|
|
Adjusted earnings from
continuing operations
|
$
|
|
76,012
|
|
|
$
|
|
2.18
|
|
|
|
$
|
|
84,691
|
|
|
$
|
|
2.33
|
|
|
|
|
(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
(A Non-GAAP Financial Measure)
(Unaudited)
|
|
(In
thousands)
|
December 30,
2023
|
|
|
December 31,
2022
|
|
Current portion of
long-term debt and finance lease liabilities
|
$
|
|
8,813
|
|
|
$
|
|
6,789
|
|
Long-term debt and
finance lease liabilities
|
|
|
588,667
|
|
|
|
|
496,792
|
|
Total
debt
|
|
|
597,480
|
|
|
|
|
503,581
|
|
Cash and cash
equivalents
|
|
|
(17,964)
|
|
|
|
|
(29,086)
|
|
Net long-term
debt
|
$
|
|
579,516
|
|
|
$
|
|
474,495
|
|
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 (A Non-GAAP Financial
Measure) (Unaudited)
|
|
|
|
|
|
52 Weeks
Ended
|
|
(In
thousands)
|
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
Purchases of property
and equipment
|
|
|
|
$
|
|
120,330
|
|
|
$
|
|
97,280
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud computing
spend
|
|
|
|
|
|
7,040
|
|
|
|
|
4,817
|
|
Capital expenditures
and IT capital
|
|
|
|
$
|
|
127,370
|
|
|
$
|
|
102,097
|
|
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.
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SOURCE SpartanNash