Sales Growth of 3.7%, Included a 1.6% Increase in
Retail Comparable Store Sales
Reaffirms Fiscal 2025 Guidance
GRAND
RAPIDS, Mich., May 29, 2025
/PRNewswire/ -- Food solutions company
SpartanNash® (the "Company") (Nasdaq: SPTN) today
reported financial results for its 16-week first quarter ended
April 19, 2025.
"We continue to execute on our strategic initiatives and deliver
on our commitments. SpartanNash hit the ground running in 2025,
posting another quarter of growth and achieving record adjusted
EBITDA in the first quarter," said SpartanNash President and
CEO Tony Sarsam. "The team's focus on operational excellence
contributed to the quarter's strong Wholesale margins, positive
comparable store sales, and increased sales from our recent Retail
acquisitions. Our results and the success of our strategic plan
gives us further confidence that we will achieve our 2025
guidance."
First Quarter Fiscal 2025 Highlights(1)
- Net sales increased 3.7% to $2.91
billion, driven by an increase in volume in the Retail
segment, partially offset by lower volume in the Wholesale segment.
- Wholesale segment net sales decreased 2.6% to $1.96 billion primarily due to reduced case
volumes in the national accounts customer channel and the
elimination of intercompany sales to the newly acquired Fresh
Encounter Inc. stores, partially offset by higher sales in the
military customer channel.
- Retail segment net sales increased 19.6% to $947.2 million due primarily to incremental sales
from acquired stores. Retail comparable store sales also increased
1.6%.
- Net earnings of $2.1 million or
$0.06 per diluted share, compared to
$13.0 million or $0.37 per diluted share. Adjusted
EPS(2)(3) of $0.35,
compared to $0.53.
- Net earnings were lower due to planned increases in
depreciation and amortization expense, organizational realignment
expense, and Retail store wages. These impacts were partially
offset by increased Wholesale segment gross margin rate, lower
restructuring and asset impairment charges, and decreased corporate
administrative costs. Adjusted EPS(2)(3) excludes the
impact of organizational realignment, restructuring and asset
impairment charges.
- Adjusted EBITDA(3)(4) of $76.9 million, compared to $74.9 million.
- The improvement was driven by the factors above, excluding the
unfavorable increase in non-cash expenses, primarily depreciation
and amortization that impacted adjusted EPS(2)(3).
- Cash generated from operating activities of $25.8 million compared to $36.5 million.
- Capital expenditures and IT capital(5) of
$34.6 million compared to
$44.1 million.
- Returned $8.0 million to
shareholders through dividends.
|
(1)
|
All comparisons are
for the first quarter of 2025 compared with the first quarter of
2024, 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)
|
Non-GAAP
profitability measures exclude, among other items, restructuring
and asset impairment charges and the impact of the LIFO
provision.
|
|
(4)
|
A reconciliation of
net earnings to adjusted EBITDA, a non-GAAP financial measure, is
provided in Table 2.
|
|
(5)
|
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 2025 Outlook
Based on the Company's performance to date and the current
outlook for the remainder of the year, the Company reaffirms its
previous fiscal 2025 guidance provided on February 12, 2025. The following table provides
the Company's guidance for fiscal 2025:
|
|
|
Fiscal 2025
Outlook
|
|
|
|
|
53
Weeks
|
|
|
(In millions, except
adjusted EPS)
|
|
|
Low
|
|
|
High
|
|
|
Total net
sales
|
|
|
$
|
|
9,800
|
|
|
$
|
|
10,000
|
|
|
Adjusted
EBITDA
|
|
|
$
|
|
263
|
|
|
$
|
|
278
|
|
|
Adjusted EPS
|
|
|
$
|
|
1.60
|
|
|
$
|
|
1.85
|
|
|
Capital expenditures
and IT capital
|
|
|
$
|
|
150
|
|
|
$
|
|
165
|
|
Guidance incorporates both the investments and benefits from the
Company's long-term strategic initiatives, including all
transformational programs and tuck-in acquisitions. The adjusted
EPS guidance for the fiscal year also reflects an approximate
$0.30 impact due to an increase in
non-cash expenses primarily depreciation and amortization, as well
as incremental interest costs associated with recent acquisitions
and capital investments. The Company estimates that the
53rd week will contribute net sales of $0.2 billion, adjusted EBITDA of $4.0 million and adjusted EPS of $0.06.
Conference Call & Supplemental Earnings
Presentation
The Company will host a conference call to discuss its quarterly
results with additional comments and details on Thursday, May 29, 2025, at 8:30 a.m. ET. There will also be a simultaneous,
live webcast made available on SpartanNash's website at
corporate.spartannash.com/events under the "Investors" section and
will remain archived on the Company's website through Thursday, June 12, 2025.
A supplemental quarterly earnings presentation will also be
available on the Company's website at
corporate.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 20,000 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 nearly 200 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 with convenience stores. 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 report, in the Company's press
releases, and in the Company's website-accessible conference calls
with analysts 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 technology systems and 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, tariffs 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; changes in geopolitical conditions;
impairment charges for goodwill or other long-lived assets; impacts
to the Company's business and reputation due to 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; 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; 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 report.
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
CONDENSED CONSOLIDATED STATEMENTS OF
EARNINGS
(Unaudited)
|
|
16 Weeks
Ended
|
|
|
April
19,
|
|
|
April
20,
|
|
|
(In thousands,
except per share amounts)
|
2025
|
|
|
2024
|
|
|
Net
sales
|
$
|
|
2,909,624
|
|
|
$
|
|
2,806,263
|
|
|
Cost of
sales
|
|
|
2,428,130
|
|
|
|
|
2,365,919
|
|
|
Gross
profit
|
|
|
481,494
|
|
|
|
|
440,344
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
459,061
|
|
|
|
|
403,633
|
|
|
Acquisition and
integration, net
|
|
|
3,840
|
|
|
|
|
327
|
|
|
Restructuring and asset
impairment, net
|
|
|
(368)
|
|
|
|
|
5,768
|
|
|
Total operating
expenses
|
|
|
462,533
|
|
|
|
|
409,728
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
|
|
18,961
|
|
|
|
|
30,616
|
|
|
|
|
|
|
|
|
|
|
Other expenses and
(income)
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
15,212
|
|
|
|
|
13,487
|
|
|
Other, net
|
|
|
(251)
|
|
|
|
|
(1,048)
|
|
|
Total other
expenses, net
|
|
|
14,961
|
|
|
|
|
12,439
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
|
4,000
|
|
|
|
|
18,177
|
|
|
Income tax
expense
|
|
|
1,920
|
|
|
|
|
5,206
|
|
|
Net
earnings
|
$
|
|
2,080
|
|
|
$
|
|
12,971
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
basic common share
|
$
|
|
0.06
|
|
|
$
|
|
0.38
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
diluted common share
|
$
|
|
0.06
|
|
|
$
|
|
0.37
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
33,727
|
|
|
|
|
34,139
|
|
|
Diluted
|
|
|
34,082
|
|
|
|
|
34,593
|
|
|
SPARTANNASH COMPANY
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
|
|
|
April
19,
|
|
|
December
28,
|
|
|
(In
thousands)
|
2025
|
|
|
2024
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
|
19,970
|
|
|
$
|
|
21,570
|
|
|
Accounts and notes
receivable, net
|
|
|
465,218
|
|
|
|
|
448,887
|
|
|
Inventories,
net
|
|
|
527,428
|
|
|
|
|
546,312
|
|
|
Prepaid expenses and
other current assets
|
|
|
86,000
|
|
|
|
|
75,042
|
|
|
Total current
assets
|
|
|
1,098,616
|
|
|
|
|
1,091,811
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
766,015
|
|
|
|
|
779,984
|
|
|
Goodwill
|
|
|
181,035
|
|
|
|
|
181,035
|
|
|
Intangible assets,
net
|
|
|
116,541
|
|
|
|
|
117,821
|
|
|
Operating lease
assets
|
|
|
314,008
|
|
|
|
|
327,211
|
|
|
Other assets,
net
|
|
|
104,361
|
|
|
|
|
104,434
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
|
2,580,576
|
|
|
$
|
|
2,602,296
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
|
491,116
|
|
|
$
|
|
485,017
|
|
|
Accrued payroll and
benefits
|
|
|
53,340
|
|
|
|
|
85,829
|
|
|
Other accrued
expenses
|
|
|
55,697
|
|
|
|
|
61,993
|
|
|
Current portion of
operating lease liabilities
|
|
|
47,401
|
|
|
|
|
49,562
|
|
|
Current portion of
long-term debt and finance lease liabilities
|
|
|
15,043
|
|
|
|
|
12,838
|
|
|
Total current
liabilities
|
|
|
662,597
|
|
|
|
|
695,239
|
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
|
100,675
|
|
|
|
|
91,010
|
|
|
Operating lease
liabilities
|
|
|
290,472
|
|
|
|
|
305,051
|
|
|
Other long-term
liabilities
|
|
|
25,310
|
|
|
|
|
26,537
|
|
|
Long-term debt and
finance lease liabilities
|
|
|
761,985
|
|
|
|
|
740,969
|
|
|
Total long-term
liabilities
|
|
|
1,178,442
|
|
|
|
|
1,163,567
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
Common stock, voting,
no par value; 100,000 shares
authorized; 33,857 and 33,752 shares
outstanding
|
|
|
458,421
|
|
|
|
|
454,751
|
|
|
Preferred stock, no par
value, 10,000 shares
authorized; no shares
outstanding
|
|
|
—
|
|
|
|
|
—
|
|
|
Accumulated other
comprehensive (loss) income
|
|
|
(521)
|
|
|
|
|
1,337
|
|
|
Retained
earnings
|
|
|
281,637
|
|
|
|
|
287,402
|
|
|
Total shareholders'
equity
|
|
|
739,537
|
|
|
|
|
743,490
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
$
|
|
2,580,576
|
|
|
$
|
|
2,602,296
|
|
|
SPARTANNASH COMPANY
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited)
|
|
|
|
|
|
16 Weeks
Ended
|
|
|
(In
thousands)
|
|
|
|
April 19,
2025
|
|
|
April 20,
2024
|
|
|
Cash flow
activities
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
|
$
|
|
25,828
|
|
|
$
|
|
36,463
|
|
|
Net cash used in
investing activities
|
|
|
|
|
|
(36,960)
|
|
|
|
|
(38,104)
|
|
|
Net cash provided by
financing activities
|
|
|
|
|
|
9,532
|
|
|
|
|
2,645
|
|
|
Net (decrease)
increase in cash and cash equivalents
|
|
|
|
|
|
(1,600)
|
|
|
|
|
1,004
|
|
|
Cash and cash
equivalents at beginning of the period
|
|
|
|
|
|
21,570
|
|
|
|
|
17,964
|
|
|
Cash and cash
equivalents at end of the period
|
|
|
|
$
|
|
19,970
|
|
|
$
|
|
18,968
|
|
|
SPARTANNASH COMPANY
AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA
Table 1: Sales and Operating Earnings (Loss) by Segment
(Unaudited)
|
|
16 Weeks
Ended
|
|
|
(In
thousands)
|
April 19,
2025
|
|
|
April 20,
2024
|
|
|
Wholesale
Segment:
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
|
1,962,421
|
|
|
67.4
|
%
|
|
$
|
|
2,014,021
|
|
|
71.8
|
%
|
|
Operating
earnings
|
|
|
33,249
|
|
|
|
|
|
|
36,002
|
|
|
|
|
Retail
Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
947,203
|
|
|
32.6
|
%
|
|
|
|
792,242
|
|
|
28.2
|
%
|
|
Operating
loss
|
|
|
(14,288)
|
|
|
|
|
|
|
(5,386)
|
|
|
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
|
2,909,624
|
|
|
100.0
|
%
|
|
$
|
|
2,806,263
|
|
|
100.0
|
%
|
|
Operating
earnings
|
|
|
18,961
|
|
|
|
|
|
|
30,616
|
|
|
|
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, and severance associated with cost
reduction initiatives. Current year organizational realignment
includes consulting and severance costs associated with the
Company's long-term plan, which relates to the reorganization of
certain functions. Prior 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 prior year and operating and non-operating
costs associated with the postretirement plan amendment and
settlement. Costs related to the postretirement plan amendment and
settlement include 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.
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 2025 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, 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 2025.
|
Table 2:
Reconciliation of Net Earnings to Adjusted Earnings Before
Interest, Taxes, Depreciation and
Amortization
(Adjusted EBITDA)
(A
Non-GAAP Financial Measure)
(Unaudited)
|
|
|
16 Weeks
Ended
|
|
|
(In
thousands)
|
April 19,
2025
|
|
|
April 20,
2024
|
|
|
Net earnings
|
$
|
|
2,080
|
|
|
$
|
|
12,971
|
|
|
Income tax
expense
|
|
|
1,920
|
|
|
|
|
5,206
|
|
|
Other expenses,
net
|
|
|
14,961
|
|
|
|
|
12,439
|
|
|
Operating
earnings
|
|
|
18,961
|
|
|
|
|
30,616
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
LIFO expense
|
|
|
4,634
|
|
|
|
|
2,020
|
|
|
Depreciation and
amortization
|
|
|
36,843
|
|
|
|
|
30,646
|
|
|
Acquisition and
integration, net
|
|
|
3,840
|
|
|
|
|
327
|
|
|
Restructuring and asset
impairment, net
|
|
|
(368)
|
|
|
|
|
5,768
|
|
|
Cloud computing
amortization
|
|
|
2,673
|
|
|
|
|
2,018
|
|
|
Organizational
realignment, net
|
|
|
4,617
|
|
|
|
|
306
|
|
|
Severance associated
with cost reduction initiatives
|
|
|
89
|
|
|
|
|
69
|
|
|
Stock-based
compensation
|
|
|
5,769
|
|
|
|
|
3,720
|
|
|
Stock
warrant
|
|
|
188
|
|
|
|
|
326
|
|
|
Non-cash
rent
|
|
|
(484)
|
|
|
|
|
(901)
|
|
|
Loss (gain) on disposal
of assets
|
|
|
102
|
|
|
|
|
(20)
|
|
|
Adjusted
EBITDA
|
$
|
|
76,864
|
|
|
$
|
|
74,895
|
|
|
Wholesale:
|
|
|
|
|
|
|
|
|
Operating
earnings
|
$
|
|
33,249
|
|
|
$
|
|
36,002
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
LIFO expense
|
|
|
3,247
|
|
|
|
|
1,555
|
|
|
Depreciation and
amortization
|
|
|
18,091
|
|
|
|
|
16,078
|
|
|
Acquisition and
integration, net
|
|
|
2,061
|
|
|
|
|
—
|
|
|
Restructuring and asset
impairment, net
|
|
|
(3,605)
|
|
|
|
|
(150)
|
|
|
Cloud computing
amortization
|
|
|
1,788
|
|
|
|
|
1,369
|
|
|
Organizational
realignment, net
|
|
|
2,881
|
|
|
|
|
191
|
|
|
Severance associated
with cost reduction initiatives
|
|
|
89
|
|
|
|
|
69
|
|
|
Stock-based
compensation
|
|
|
3,910
|
|
|
|
|
2,504
|
|
|
Stock
warrant
|
|
|
188
|
|
|
|
|
326
|
|
|
Non-cash
rent
|
|
|
(31)
|
|
|
|
|
(300)
|
|
|
Gain on disposal of
assets
|
|
|
(73)
|
|
|
|
|
(18)
|
|
|
Adjusted
EBITDA
|
$
|
|
61,795
|
|
|
$
|
|
57,626
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
|
(14,288)
|
|
|
|
|
(5,386)
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
LIFO expense
|
|
|
1,387
|
|
|
|
|
465
|
|
|
Depreciation and
amortization
|
|
|
18,752
|
|
|
|
|
14,568
|
|
|
Acquisition and
integration, net
|
|
|
1,779
|
|
|
|
|
327
|
|
|
Restructuring and asset
impairment, net
|
|
|
3,237
|
|
|
|
|
5,918
|
|
|
Cloud computing
amortization
|
|
|
885
|
|
|
|
|
649
|
|
|
Organizational
realignment, net
|
|
|
1,736
|
|
|
|
|
115
|
|
|
Stock-based
compensation
|
|
|
1,859
|
|
|
|
|
1,216
|
|
|
Non-cash
rent
|
|
|
(453)
|
|
|
|
|
(601)
|
|
|
Loss (gain) on disposal
of assets
|
|
|
175
|
|
|
|
|
(2)
|
|
|
Adjusted
EBITDA
|
$
|
|
15,069
|
|
|
$
|
|
17,269
|
|
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)
|
|
16 Weeks
Ended
|
|
|
|
April 19,
2025
|
|
|
|
April 20,
2024
|
|
|
|
|
|
|
per diluted
|
|
|
|
|
|
|
per diluted
|
|
|
|
(In thousands,
except per share amounts)
|
Earnings
|
|
|
share
|
|
|
|
Earnings
|
|
|
share
|
|
|
|
Net earnings
|
$
|
|
2,080
|
|
|
$
|
|
0.06
|
|
|
|
$
|
|
12,971
|
|
|
$
|
|
0.37
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
|
|
|
4,634
|
|
|
|
|
|
|
|
|
|
2,020
|
|
|
|
|
|
|
|
Acquisition and
integration, net
|
|
|
3,840
|
|
|
|
|
|
|
|
|
|
327
|
|
|
|
|
|
|
|
Restructuring and asset
impairment, net
|
|
|
(199)
|
|
|
|
|
|
|
|
|
|
5,768
|
|
|
|
|
|
|
|
Organizational
realignment, net
|
|
|
4,617
|
|
|
|
|
|
|
|
|
|
306
|
|
|
|
|
|
|
|
Severance associated
with cost reduction initiatives
|
|
|
89
|
|
|
|
|
|
|
|
|
|
69
|
|
|
|
|
|
|
|
Postretirement plan
amendment and settlement
|
|
|
—
|
|
|
|
|
|
|
|
|
|
(945)
|
|
|
|
|
|
|
|
Total
adjustments
|
|
|
12,981
|
|
|
|
|
|
|
|
|
|
7,545
|
|
|
|
|
|
|
|
Income tax effect on
adjustments (a)
|
|
|
(3,101)
|
|
|
|
|
|
|
|
|
|
(2,036)
|
|
|
|
|
|
|
|
Total adjustments, net
of taxes
|
|
|
9,880
|
|
|
|
|
0.29
|
|
|
|
|
|
5,509
|
|
|
|
|
0.16
|
|
|
|
Adjusted earnings from
continuing operations
|
$
|
|
11,960
|
|
|
$
|
|
0.35
|
|
|
|
$
|
|
18,480
|
|
|
$
|
|
0.53
|
|
|
|
|
(a)
|
The income tax effect
on adjustments is computed by applying the applicable tax rate to
the adjustments.
|
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 (Loss) Earnings to Adjusted
EBITDA
(A Non-GAAP Financial
Measure)
(Unaudited)
|
|
(In
thousands)
|
April 19,
2025
|
|
|
December 28,
2024
|
|
|
Current portion of
long-term debt and finance lease liabilities
|
$
|
|
15,043
|
|
|
$
|
|
12,838
|
|
|
Long-term debt and
finance lease liabilities
|
|
|
761,985
|
|
|
|
|
740,969
|
|
|
Total debt
|
|
|
777,028
|
|
|
|
|
753,807
|
|
|
Cash and cash
equivalents
|
|
|
(19,970)
|
|
|
|
|
(21,570)
|
|
|
Net long-term
debt
|
$
|
|
757,058
|
|
|
$
|
|
732,237
|
|
|
|
Rolling 52- Weeks
Ended
|
|
|
(In thousands,
except for ratio)
|
April 19,
2025
|
|
|
December 28,
2024
|
|
|
Net (loss)
earnings
|
$
|
|
(10,592)
|
|
|
$
|
|
299
|
|
|
Income tax
expense
|
|
|
7,440
|
|
|
|
|
10,726
|
|
|
Other expenses,
net
|
|
|
45,458
|
|
|
|
|
42,936
|
|
|
Operating
earnings
|
|
|
42,306
|
|
|
|
|
53,961
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
LIFO expense
|
|
|
7,781
|
|
|
|
|
5,167
|
|
|
Depreciation and
amortization
|
|
|
109,609
|
|
|
|
|
103,412
|
|
|
Acquisition and
integration, net
|
|
|
6,626
|
|
|
|
|
3,113
|
|
|
Restructuring and
goodwill / asset impairment, net
|
|
|
67,971
|
|
|
|
|
74,107
|
|
|
Cloud computing
amortization
|
|
|
8,240
|
|
|
|
|
7,585
|
|
|
Organizational
realignment, net
|
|
|
7,068
|
|
|
|
|
2,757
|
|
|
Severance associated
with cost reduction initiatives
|
|
|
557
|
|
|
|
|
537
|
|
|
Stock-based
compensation
|
|
|
12,792
|
|
|
|
|
10,743
|
|
|
Stock
warrant
|
|
|
730
|
|
|
|
|
868
|
|
|
Non-cash
rent
|
|
|
(2,262)
|
|
|
|
|
(2,679)
|
|
|
Gain on disposal of
assets
|
|
|
(162)
|
|
|
|
|
(284)
|
|
|
Legal
settlement
|
|
|
(900)
|
|
|
|
|
(900)
|
|
|
Postretirement plan
amendment and settlement
|
|
|
99
|
|
|
|
|
99
|
|
|
Adjusted
EBITDA
|
$
|
|
260,455
|
|
|
$
|
|
258,486
|
|
|
|
|
|
|
|
|
|
|
Net long-term debt to
adjusted EBITDA ratio
|
|
|
2.9
|
|
|
|
|
2.8
|
|
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. 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)
|
|
|
|
|
|
16 Weeks
Ended
|
|
|
(In
thousands)
|
|
|
|
April 19,
2025
|
|
|
April 20,
2024
|
|
|
Purchases of property
and equipment
|
|
|
|
$
|
|
31,593
|
|
|
$
|
|
40,163
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
Cloud computing
spend
|
|
|
|
|
|
3,031
|
|
|
|
|
3,898
|
|
|
Capital expenditures
and IT capital
|
|
|
|
$
|
|
34,624
|
|
|
$
|
|
44,061
|
|
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
