- Consolidated operating earnings of
$101 million; Adjusted EBITDA of $182 million for Q3 fiscal
2016
- Net earnings per share from
continuing operations of $0.13; adjusted earnings per share of
$0.16
- Redeemed remaining $278 million of
8.00% Senior Notes due May 2016 on January 6, 2016
SUPERVALU INC. (NYSE: SVU) today reported third quarter fiscal
2016 net sales of $4.11 billion and net earnings from continuing
operations of $35 million, or $0.13 per diluted share, which
included $11 million in after-tax charges and costs related to
asset impairments, the potential separation of Save-A-Lot, and
employee severance. When adjusted for these items, third quarter
fiscal 2016 net earnings from continuing operations were $46
million, or $0.16 per diluted share.
Net earnings from continuing operations for last year’s third
quarter were $12 million, or $0.04 per diluted share, which
included a $36 million after-tax pension settlement charge and $1
million in after-tax debt refinancing and net information
technology intrusion costs. When adjusted for these items, third
quarter fiscal 2015 net earnings from continuing operations were
$49 million, or $0.18 per diluted share. [See tables 1-5 for a
reconciliation of GAAP and non-GAAP (adjusted) results appearing in
this release.]
"Although third quarter adjusted EBITDA was in-line with our
operating plan, we continue to operate in a challenging
environment," said President and CEO Sam Duncan. "Improving sales
is a primary focus as we look to complete the fiscal year."
Third Quarter Results - Continuing Operations
Third quarter net sales were $4.11 billion compared to $4.23
billion last year, a decrease of $111 million or 2.6 percent.
Save-A-Lot network identical store sales were negative 3.4 percent.
Identical store sales for corporate stores within the Save-A-Lot
network were negative 0.4 percent. Retail Food identical store
sales were negative 2.6 percent. Total net sales within the
Independent Business segment decreased 3.5 percent. Fees earned
under transition services agreements (“TSAs”) in the third quarter
were $46 million compared to $43 million last year.
Gross profit for the third quarter was $601 million, or 14.6
percent of net sales. Last year’s third quarter gross profit was
$596 million, or 14.1 percent of net sales. The increase in gross
profit rate compared to last year was primarily driven by higher
base margins across all three segments, lower logistics costs, and
higher TSA fees, partially offset by higher employee and occupancy
costs.
Selling and administrative expenses in the third quarter were
$494 million and included charges and costs of $10 million for the
potential separation of Save-A-Lot, store closure impairments and
employee severance. When adjusted for these items, selling and
administrative costs were $484 million, or 11.7 percent of net
sales. Selling and administrative expenses in last year’s third
quarter were $540 million and included a $63 million pension
settlement charge and $1 million in information technology
intrusion costs, net of insurance recoverable. When adjusted for
these items, last year's selling and administrative expenses were
$476 million, or 11.3 percent of net sales.
Net interest expense for the third quarter was $45 million. Last
year's third quarter interest expense was $46 million and included
$1 million in debt refinancing costs. When adjusted for this item,
last year's third quarter interest expense was $45 million.
Income tax expense was $22 million, or 37.6 percent of pre-tax
earnings, for the third quarter, compared to an income tax benefit
of $1 million, or 8.9 percent of pre-tax earnings in last year’s
third quarter. The increase in the effective tax rate is primarily
due to the pension settlement charge included in the prior
year.
Independent Business
Third quarter Independent Business net sales were $1.90 billion,
compared to $1.97 billion last year, a decrease of 3.5 percent. The
decrease is primarily due to lower sales to existing customers and
lost stores, partially offset by increased sales to new customers
and new stores operated by existing customers.
Independent Business operating earnings in the third quarter
were $54 million, or 2.8 percent of net sales, and included a
$6 million intangible asset impairment charge. When adjusted
for this item, Independent Business operating earnings were
$60 million or 3.2 percent of net sales. Last year’s
Independent Business operating earnings in the third quarter were
$60 million, or 3.1 percent of net sales.
Save-A-Lot
Third quarter Save-A-Lot net sales were $1.07 billion, compared
to $1.09 billion last year, a decrease of 1.5 percent. The sales
decrease reflects identical store sales across the Save-A-Lot
network of negative 3.4 percent and the impact of closed
stores.
Save-A-Lot operating earnings in the third quarter were $32
million, or 2.9 percent of net sales, and included $2 million of
store closure impairment charges. When adjusted for this item,
Save-A-Lot's operating earnings were $34 million, or 3.1 percent of
sales. Last year’s Save-A-Lot operating earnings in the third
quarter were $34 million, or 3.1 percent of net sales.
Retail Food
Third quarter Retail Food net sales were $1.10 billion, compared
to $1.13 billion last year, a decrease of 2.5 percent. The sales
decrease reflects negative identical store sales of 2.6
percent.
Retail Food operating earnings in the third quarter were $21
million, or 2.0 percent of net sales, and included $1 million of
store closure impairment charges. When adjusted for this item,
Retail Food operating earnings were $22 million, or 2.1 percent of
sales. Last year’s Retail Food operating earnings were $28 million,
or 2.5 percent of net sales. The decrease in Retail Food operating
earnings was driven by higher employee-related costs.
Corporate
Third quarter fees earned under the TSAs were $46 million
compared to $43 million last year.
Net Corporate operating loss in the third quarter was $6 million
and included $7 million of costs related to the potential
separation of Save-A-Lot and employee severance. When adjusted for
these items, net Corporate operating earnings were $1 million. Last
year’s third quarter net Corporate operating loss was $66 million
and included $64 million in charges and costs for a pension
settlement charge and information technology intrusion costs, net
of insurance receivable. When adjusted for these items, last year's
net Corporate operating loss was $2 million. The improvement in net
Corporate operating earnings was primarily driven by lower
employee-related costs and higher fees earned under the TSAs.
Cash Flows - Continuing Operations
Year-to-date fiscal 2016 net cash flows provided by operating
activities of continuing operations were $251 million compared to
$104 million last year, reflecting lower levels of investment in
working capital and lower benefit plan contributions. Year-to-date
net cash flows used in investing activities of continuing
operations were $198 million compared to $209 million last year.
Year-to-date net cash flows used in financing activities of
continuing operations were $34 million compared to net cash flows
provided by financing activities of $438 million last year, which
included proceeds from a bond issuance.
Conference Call
A conference call to review the third quarter results is
scheduled for 9:00 a.m. central time today. The call will be
webcast live at www.supervaluinvestors.com (click on microphone
icon). A replay of the call will be archived at
www.supervaluinvestors.com. To access the website replay go to the
"Investors" link and click on "Presentations and Webcasts."
About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and
retailers in the U.S. with annual sales of approximately $18
billion. SUPERVALU serves customers across the United States
through a network of 3,407 stores composed of
1,871 independent stores serviced primarily by the Company’s
food distribution business; 1,336 Save-A-Lot stores, of which 883
are operated by licensee owners; and 200 traditional retail grocery
stores (store counts as of December 5, 2015). Headquartered in
Minnesota, SUPERVALU has approximately 40,000 employees. For more
information about SUPERVALU visit www.supervalu.com.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION
FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995.
Except for the historical and factual information contained
herein, the matters set forth in this news release, particularly
those pertaining to SUPERVALU’s expectations, guidance, or future
operating results, and other statements identified by words such as
"estimates," "expects," "projects," "plans," "intends," and similar
expressions are forward-looking statements within the meaning of
the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are subject to
risks and uncertainties that may cause actual results to differ
materially, including competition, ability to execute initiatives,
substantial indebtedness, labor relations issues, escalating costs
of providing employee benefits, relationships with Albertson’s LLC,
New Albertson’s Inc., and Haggen, intrusions to and disruption of
information technology systems, impact of economic conditions,
governmental regulation, food and drug safety issues, legal
proceedings, severe weather, natural disasters and adverse climate
changes, disruption to supply chain and distribution network,
changes in military business, adequacy of insurance, volatility in
fuel and energy costs, asset impairment charges, fluctuations in
our common stock price and other risk factors relating to our
business or industry as detailed from time to time in SUPERVALU's
reports filed with the SEC. You should not place undue reliance on
these forward-looking statements, which speak only as of the date
of this news release. Unless legally required, SUPERVALU undertakes
no obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise.
SUPERVALU INC. and Subsidiaries
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
(In millions, except percent and per
share data)
Third Quarter Ended Year-To-Date Ended
December 5,2015(12
weeks)
November 29,2014(12
weeks)
December 5,2015(40
weeks)
November 29,2014(40
weeks)
Net sales(1) $ 4,114 100.0 % $ 4,225
100.0 % $ 13,583 100.0 % $ 13,530 100.0 %
Cost of
sales 3,513 85.4 3,629 85.9
11,589 85.3 11,605 85.8
Gross profit 601 14.6 596 14.1 1,994 14.7 1,925 14.2
Selling and administrative expenses(2) 494 12.0 540
12.8 1,635 12.0 1,640 12.1
Intangible asset impairment
charge(2) 6 0.2 — —
6 — — —
Operating earnings 101 2.4 56 1.3 353 2.6 285 2.1
Interest expense, net(2) 45 1.1 46 1.1 148 1.1 156
1.2
Equity in earnings of unconsolidated affiliates
(1 ) — (1 ) — (3 ) — (3 )
—
Earnings from continuing operations before income
taxes(2) 57 1.4 11 0.3 208 1.5 132 1.0
Income tax
provision (benefit) 22 0.5 (1 ) —
79 0.6 41 0.3
Net earnings from continuing operations(2) 35 0.9 12
0.3 129 1.0 91 0.7
Income from discontinued operations, net of
tax — — 69 1.6
3 — 68 0.5
Net earnings
including noncontrolling interests 35 0.9 81 1.9 132 1.0 159
1.2
Less net earnings attributable to noncontrolling
interests (1 ) — (2 ) — (6 )
— (6 ) —
Net earnings attributable to
SUPERVALU INC. $ 34 0.8 % $ 79 1.9 % $ 126
0.9 % $ 153 1.1 %
Basic net earnings per share
attributable to SUPERVALU INC.: Continuing operations $ 0.13 $
0.04 $ 0.47 $ 0.33 Discontinued operations $ — $ 0.27 $ 0.01 $ 0.26
Basic net earnings per share $ 0.13 $ 0.31 $ 0.48 $ 0.59
Diluted
net earnings per share attributable to SUPERVALU INC.:
Continuing operations(2) $ 0.13 $ 0.04 $ 0.46 $ 0.33 Discontinued
operations $ — $ 0.26 $ 0.01 $ 0.26 Diluted net earnings per share
$ 0.13 $ 0.30 $ 0.47 $ 0.58
Weighted average number of shares
outstanding: Basic 264 261 263 260 Diluted 268 265 268 263
(1) In the first quarter of fiscal 2016, the Company
completed an assessment of its revenue and expense presentation
primarily related to professional services and certain other
transactions. Expenses related to transactions in which the Company
determined it was the principal were previously presented net of
related revenues within Net sales in the Consolidated Statements of
Operations. The presentation of these expenses has been revised to
include them within Cost of sales and Selling and administrative
expenses. These revisions had the effect of increasing Net sales
with a corresponding increase to Cost of sales and Selling and
administrative expenses. These revisions did not impact Operating
earnings, Earnings from continuing operations before income taxes,
Net earnings attributable to SUPERVALU INC., cash flows, or
financial position for any period reported. (2) Results from
continuing operations for the third quarter ended December 5, 2015
include net charges and costs of $16 before tax ($11 after tax, or
$0.03 per diluted share), comprised of an intangible asset
impairment charge of $6 before tax ($4 after tax, or $0.02 per
diluted share) within Intangible asset impairment charge, and costs
related to the potential Save-A-Lot separation of $5 before tax ($4
after tax, or $0.01 per diluted share), store closure impairment
charges of $3 before tax ($2 after tax, or $0.00 per diluted share)
and severance costs of $2 before tax ($1 after tax, or $0.00 per
diluted share) within Selling and administrative expenses. Results
from continuing operations for the third quarter ended November 29,
2014 include net charges and costs of $65 before tax ($37 after
tax, or $0.14 per diluted share), comprised of a pension settlement
charge of $63 before tax ($36 after tax, or $0.14 per diluted
share) and information technology intrusion costs, net of insurance
recoverable, of $1 before tax ($0 after tax, or $0.00 per diluted
share) included within Selling and administrative expenses, and
debt refinancing costs of $1 before tax ($1 after tax, or $0.00 per
diluted share) included within Interest expense, net. Results from
continuing operations for the year-to-date ended December 5, 2015
include net charges and costs of $27 before tax ($19 after tax, or
$0.07 per diluted share), comprised of costs related to the
potential Save-A-Lot separation of $12 before tax ($9 after tax, or
$0.03 per diluted share), severance costs of $6 before tax ($4
after tax, or $0.02 per diluted share) and store closure impairment
charges of $3 before tax ($2 after tax, or $0.00 per diluted share)
within Selling and administrative expenses, and an intangible asset
impairment charge of $6 before tax ($4 after tax, or $0.02 per
diluted share) within Intangible asset impairment charge. Results
from continuing operations for the year-to-date ended November 29,
2014 include net charges and costs of $69 before tax ($40 after
tax, or $0.15 per diluted share), comprised of a pension settlement
charge of $63 before tax ($36 after tax, or $0.14 per diluted
share), information technology intrusion costs, net of insurance
recoverable, of $2 before tax ($1 after tax, or $0.00 per diluted
share) and severance costs of $1 before tax ($1 after tax, or $0.00
per diluted share) included within Selling and administrative
expenses, and unamortized financing cost charges of $2 before tax
($1 after tax, or $0.01 per diluted share) and debt refinancing
costs of $1 before tax ($1 after tax, or $0.00 per diluted share)
included within Interest expense, net.
SUPERVALU INC. and Subsidiaries
CONSOLIDATED SEGMENT FINANCIAL
INFORMATION
(Unaudited)
(In millions, except percent
data)
Third Quarter Ended Year-To-Date Ended
December 5,2015(12
weeks)
November 29,2014(12
weeks)
December 5,2015(40
weeks)
November 29,2014(40
weeks)
Net sales Independent Business $ 1,902 $ 1,972 $ 6,195 $
6,227 % of total 46.2 % 46.7 % 45.6 % 46.0 % Save-A-Lot 1,069 1,085
3,568 3,498 % of total 26.0 % 25.7 % 26.3 % 25.8 % Retail Food
1,097 1,125 3,662 3,660 % of total 26.7 % 26.6 % 27.0 % 27.1 %
Corporate 46 43 158 145 % of total 1.1 % 1.0 %
1.1 % 1.1 % Total net sales $ 4,114 $ 4,225 $ 13,583 $
13,530 100.0 % 100.0 % 100.0 % 100.0 %
Operating earnings Independent Business(1) $ 54 $ 60 $ 180 $
180 % of Independent Business sales 2.8 % 3.1 % 2.9 % 2.9 %
Save-A-Lot(2) 32 34 115 106 % of Save-A-Lot sales 2.9 % 3.1 % 3.2 %
3.0 % Retail Food(3) 21 28 64 78 % of Retail Food sales 2.0 % 2.5 %
1.8 % 2.1 % Corporate(4) (6 ) (66 ) (6 )
(79 ) Total operating earnings 101 56 353 285 % of total net
sales 2.4 % 1.3 % 2.6 % 2.1 %
Interest expense,
net(5) 45 46 148 156
Equity in earnings of
unconsolidated affiliates (1 ) (1 ) (3 )
(3 )
Earnings from continuing operations before income
taxes 57 11 208 132
Income tax provision (benefit)
22 (1 ) 79 41
Net earnings from continuing operations 35 12 129 91
Income from discontinued operations, net of tax —
69 3 68
Net
earnings including noncontrolling interests 35 81 132 159
Less net earnings attributable to noncontrolling interests
(1 ) (2 ) (6 ) (6 )
Net earnings
attributable to SUPERVALU INC.
$
34
$
79
$
126
$
153
LIFO charge Independent Business $ — $ 1 $
2 $ 3 Retail Food 1 2 4
4 Total LIFO charge $ 1 $ 3 $ 6
$ 7
Depreciation and amortization Independent
Business $ 12 $ 10 $ 37 $ 36 Save-A-Lot 16 15 54 50 Retail Food 35
40 118 133 Corporate 1 — 2
— Total depreciation and amortization $ 64
$ 65 $ 211 $ 219 (1)
Independent Business operating earnings for the third quarter and
year-to-date ended December 5, 2015 include an intangible asset
impairment charge of $6. Independent Business operating earnings
for the year-to-date ended November 29, 2014 include severance
costs of $1. (2) Save-A-Lot operating earnings for the third
quarter and year-to-date ended December 5, 2015 include store
closure impairment charges of $2. (3) Retail Food operating
earnings for the third quarter and year-to-date ended December 5,
2015 include store closure impairment charges of $1. (4)
Corporate operating loss for the third
quarter ended December 5, 2015 includes costs related to the
potential Save-A-Lot separation of $5 and severance costs of $2.
Corporate operating loss for the third quarter ended November 29,
2014 includes a pension settlement charge of $63 and information
technology intrusion costs, net of insurance recoverable, of $1.
Corporate operating loss for the year-to-date ended December 5,
2015 includes costs related to the potential Save-A-Lot separation
of $12 and severance costs of $6. Corporate operating loss for the
year-to-date ended November 29, 2014 includes a pension settlement
charge of $63 and information technology intrusion costs, net of
insurance recoverable, of $2.
(5) Interest expense, net for the third quarter ended November 29,
2014 includes debt refinancing costs of $1. Interest expense, net
for the year-to-date ended November 29, 2014 includes unamortized
financing cost charges of $2 and debt refinancing costs of $1.
SUPERVALU INC. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(In millions, except par value
data)
December 5,2015
February 28,2015
(Unaudited) ASSETS Current assets Cash and
cash equivalents $ 134 $ 114 Receivables, net 485 482 Inventories,
net 1,170 984 Other current assets 78 120
Total current assets 1,867 1,700
Property, plant and equipment, net 1,458 1,470
Goodwill 867 865
Intangible assets, net 57 48
Deferred tax assets 246 265
Other assets 148
137
Total assets $ 4,643 $ 4,485
LIABILITIES AND STOCKHOLDERS’ DEFICIT Current
liabilities Accounts payable $ 1,200 $ 1,121 Accrued vacation,
compensation and benefits 187 204 Current maturities of long-term
debt and capital lease obligations
224
35 Other current liabilities 175 173
Total current liabilities
1,786
1,533
Long-term debt
2,281
2,480
Long-term capital lease obligations 209 213
Pension
and other postretirement benefit obligations 513 602
Long-term tax liabilities 129 119
Other long-term
liabilities 169 174
Commitments and contingencies
Stockholders’ deficit Common stock, $0.01 par value: 400
shares authorized; 266 and 262 shares issued, respectively 3 3
Capital in excess of par value 2,802 2,810 Treasury stock, at cost,
1 and 2 shares, respectively (5 ) (33 ) Accumulated other
comprehensive loss (375 ) (423 ) Accumulated deficit (2,877
) (3,003 )
Total SUPERVALU INC. stockholders’ deficit
(452 ) (646 ) Noncontrolling interests 8 10
Total stockholders’ deficit (444 ) (636
)
Total liabilities and stockholders’ deficit $ 4,643
$ 4,485
SUPERVALU INC. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
(In millions)
Year-To-Date Ended
December 5,2015(40
weeks)
November 29,2014(40
weeks)
Cash flows from operating activities Net earnings including
noncontrolling interests $ 132 $ 159 Income from discontinued
operations, net of tax 3 68 Net
earnings from continuing operations 129 91 Adjustments to reconcile
Net earnings from continuing operations to Net cash provided by
operating activities – continuing operations: Intangible asset
impairment charge 6 — Asset impairment and other charges 7 3 Net
gain on sale of assets and exits of surplus leases (3 ) (11 )
Depreciation and amortization 211 219 LIFO charge 6 7 Deferred
income taxes (19 ) (41 ) Stock-based compensation 19 18 Net pension
and other postretirement benefits cost 29 82 Contributions to
pension and other postretirement benefit plans (38 ) (115 ) Other
adjustments 20 15 Changes in operating assets and liabilities, net
of effects from business acquisitions (116 ) (164 )
Net cash provided by operating activities – continuing
operations 251 104
Net cash provided by operating activities
– discontinued operations 1 2
Net cash provided by operating activities 252
106
Cash flows from investing activities
Proceeds from sale of assets 4 7 Purchases of property, plant and
equipment (169 ) (164 ) Payments for business acquisitions (9 ) (55
) Other (24 ) 3
Net cash used in investing
activities (198 ) (209 )
Cash flows from
financing activities Proceeds from issuance of debt — 484
Proceeds from sale of common stock 10 5 Payments of debt and
capital lease obligations (35 ) (37 ) Distributions to
noncontrolling interests (8 ) (8 ) Payments of debt financing costs
(1 ) (7 ) Other — 1
Net cash (used
in) provided by financing activities (34 ) 438
Net increase in cash and cash equivalents 20 335
Cash and
cash equivalents at beginning of period 114
83
Cash and cash equivalents at the end of
period $ 134 $ 418
SUPPLEMENTAL CASH FLOW
INFORMATION The Company’s non-cash activities were as follows:
Purchases of property, plant and equipment included in Accounts
payable $ 31 $ 10 Capital lease asset additions $ 18 $ 1 Interest
and income taxes paid: Interest paid, net of amounts capitalized $
150 $ 136 Income taxes paid, net $ 44 $ 55
SUPERVALU INC. and
SubsidiariesSUPPLEMENTAL FINANCIAL
INFORMATION(Unaudited)
SUPERVALU INC.'s consolidated financial statements are
prepared and presented in accordance with generally accepted
accounting principles ("GAAP"). The measures and items identified
below, and the adjusted Selling and administrative expenses, are
provided as a supplement to our consolidated financial statements
and should not be considered an alternative to any GAAP measure of
performance or liquidity. The presentation of these financial
measures and items is not intended to be a substitute for or be
superior to any financial information prepared and presented in
accordance with GAAP. Investors are cautioned that there are
material limitations associated with the use of non-GAAP financial
measures as an analytical tool. Certain adjustments to our GAAP
financial measures exclude certain items that are occasionally
recurring in nature and may be reflected in our financial results
for the foreseeable future. These measurements and items may be
different from non-GAAP financial measures used by other companies.
All measurements are provided as a reconciliation from a GAAP
measurement. Management believes the measurements and items
identified below are important measures of business performance
that provide investors with useful supplemental
information. SUPERVALU utilizes certain non-GAAP measures
to analyze underlying core business trends to understand operating
performance. In addition, management utilizes certain non-GAAP
measures as a compensation performance measure. The items below
should be reviewed in conjunction with SUPERVALU
INC.'s financial results reported in accordance with GAAP, as
reported in SUPERVALU's Quarterly Reports on Form 10-Q
and the Annual Report on Form 10-K for the fiscal year
ended February 28, 2015.
RECONCILIATIONS OF EARNINGS FROM CONTINUING
OPERATIONS TO EARNINGS FROM CONTINUING OPERATIONS AFTER
ADJUSTMENTS
Table 1 Third Quarter Ended December
5, 2015 (In millions, except per share data)
EarningsBefore Tax
EarningsAfter Tax
DilutedEarnings
PerShare
Continuing operations $ 57 $ 35 $ 0.13 Adjustments: Intangible
asset impairment charge 6 4 0.02 Costs related to the potential
Save-A-Lot separation 5 4 0.01 Store closure impairment charges 3 2
— Severance costs 2 1 — Continuing operations
after adjustments $ 73 $ 46 $ 0.16
Table 2 Year to
Date December 5, 2015 (In millions, except per share
data)
EarningsBefore Tax
EarningsAfter Tax
DilutedEarnings
PerShare
Continuing operations $ 208 $ 129 $ 0.46 Adjustments: Costs related
to the potential Save-A-Lot separation 12 9 0.03 Intangible asset
impairment charge 6 4 0.02 Severance costs 6 4 0.02 Store closure
impairment charges 3 2 — Continuing operations
after adjustments $ 235 $ 148 $ 0.53
Table 3 Third
Quarter Ended November 29, 2014 (In millions, except per
share data)
EarningsBefore Tax
EarningsAfter Tax
DilutedEarnings
PerShare
Continuing operations $ 11 $ 12 $ 0.04 Adjustments: Pension
settlement charge 63 36 0.14 Information technology intrusion
costs, net of insurance recoverable 1
—
— Debt refinancing costs 1
1
— Continuing operations after adjustments $ 76 $ 49 $ 0.18
Table 4 Year to Date November 29, 2014 (In
millions, except per share data)
EarningsBefore Tax
EarningsAfter Tax
DilutedEarnings
PerShare
Continuing operations $ 132 $ 91 $ 0.33 Adjustments: Pension
settlement charge 63 36 0.14 Unamortized financing costs charges 2
1 0.01 Information technology intrusion costs, net of insurance
recoverable 2 1 — Severance costs 1 1 — Debt refinancing costs
1 1 — Continuing operations after adjustments
$ 201 $ 131 $ 0.48
RECONCILIATION OF OPERATING EARNINGS FROM
CONSOLIDATED SEGMENT FINANCIAL INFORMATION AS REPORTED TO
SUPPLEMENTALLY PROVIDED ADJUSTED EBITDA
Table 5 Third Quarter Ended
Year-To-Date Ended (In millions)
December 5,2015(12
weeks)
November 29,2014(12
weeks)
December 5,2015(40
weeks)
November 29,2014(40
weeks)
Independent Business operating earnings, as reported $ 54 $ 60 $
180 $ 180 Adjustments: Intangible asset impairment charge 6 — 6 —
Severance costs — — — 1
Independent Business operating earnings, as adjusted 60 60 186 181
Independent Business depreciation and amortization 12 10 37 36 LIFO
charge — 1 2 3
Independent Business adjusted EBITDA(1) $ 72 $ 71 $
225 $ 220 Save-A-Lot operating earnings, as
reported $ 32 $ 34 $ 115 $ 106 Adjustments: Store closure
impairment charges 2 — 2
— Save-A-Lot operating earnings, as adjusted
34 34 117 106 Save-A-Lot depreciation and amortization 16
15 54 50 Save-A-Lot adjusted
EBITDA(1) $ 50 $ 49 $ 171 $ 156
Retail Food operating earnings, as reported $ 21 $ 28 $ 64 $ 78
Adjustments: Store closure impairment charges 1
— 1 — Retail Food operating earnings,
as adjusted 22 28 65 78 Retail Food depreciation and amortization
35 40 118 133 LIFO charge 1 2 4 4 Equity in earnings of
unconsolidated affiliates 1 1 3 3 Net earnings attributable to
noncontrolling interests (1 ) (2 ) (6 ) (6 ) Retail
Food adjusted EBITDA(1) $ 58 $ 69 $ 184 $ 212
Corporate operating loss, as reported $ (6 ) $ (66 )
$ (6 ) $ (79 ) Adjustments: Pension settlement charge — 63 — 63
Costs related to the potential Save-A-Lot separation 5 — 12 —
Severance costs 2 — 6 — Information technology intrusion costs, net
of insurance recoverable — 1 — 2
Corporate operating earnings (loss), as adjusted 1 (2 ) 12
(14 ) Corporate depreciation and amortization 1
— 2 — Corporate adjusted EBITDA(1) $ 2
$ (2 ) $ 14 $ (14 ) Total adjusted EBITDA(1) $ 182
$ 187 $ 594 $ 574 (1) The
Company's measure of adjusted EBITDA includes SUPERVALU INC.'s
segment operating earnings (loss), as reported, plus depreciation
and amortization, LIFO charge (credit), equity earnings of
unconsolidated affiliates and any unusual items, and less net
earnings attributable to noncontrolling interests.
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SUPERVALU INC.Investor
ContactSteve Bloomquist,
952-828-4144steve.j.bloomquist@supervalu.comorMedia ContactJeff Swanson,
952-903-1645jeffrey.s.swanson@supervalu.com
Supervalu (NYSE:SVU)
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Supervalu (NYSE:SVU)
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From Mar 2023 to Mar 2024