Delivers Fiscal 2020 Results Above
Outlook Provides Fiscal 2021 Outlook
Albertsons Companies, Inc. (NYSE: ACI) (the "Company") today
reported results for the fourth quarter of fiscal 2020 and full
year fiscal 2020, which ended February 27, 2021, and provided a
fiscal 2021 outlook.
Fourth Quarter 2020
Highlights
- Identical sales growth of 11.8%
- Digital sales growth of 282%
- Net loss per Class A common share of ($0.37); Adjusted Net
Income Per Class A Common Share of $0.60
- Net loss of ($144 million); Adjusted Net Income of $347
million
- Adjusted EBITDA of $917 million
Fiscal 2020 Highlights
- Identical sales growth of 16.9%
- Digital sales growth of 258%
- Net income per Class A common share of $1.47; Adjusted Net
Income Per Class A Common Share of $3.24
- Net income of $850 million; Adjusted Net Income of $1.9
billion
- Adjusted EBITDA of $4,524 million
- Total Net Debt Ratio reduced to 1.5x, an improvement from 2.9x
a year ago
"We are very proud of what our team accomplished in fiscal 2020,
serving our customers and communities throughout the COVID-19
pandemic," said Vivek Sankaran, President & CEO. "As a result
of our strong execution, we delivered record full-year results,
drove meaningful market share gains and are well positioned for
continued success and strong performance in fiscal 2021.
"We have made substantial progress against our strategic
priorities, and are still in the early innings of our
transformation journey. Looking ahead, we remain committed to
further strengthening our relationships with our customers,
offering a superior shopping experience and generating value for
all stakeholders."
Fourth Quarter of Fiscal 2020
Results
Sales and other revenue was $15.8 billion during the 12 weeks
ended February 27, 2021 ("fourth quarter of fiscal 2020") compared
to $15.4 billion during the 13 weeks ended February 29, 2020
("fourth quarter of fiscal 2019"). The increase in sales was
primarily driven by the Company's 11.8% increase in identical
sales, partially offset by the impact of the 53rd week in the
fourth quarter of fiscal 2019 and lower fuel sales. Identical sales
also benefited from the Company's 282% growth in digital sales.
Gross profit margin increased to 28.9% during the fourth quarter
of fiscal 2020 compared to 28.6% during the fourth quarter of
fiscal 2019. Excluding fuel, gross profit margin increased 10 basis
points. The increase was primarily attributable to improvements in
shrink expense and continued sales leverage, partially offset by
our growth in digital sales and strategic investments in price.
Selling and administrative expenses increased to 30.0% of sales
during the fourth quarter of fiscal 2020 compared to 26.5% of sales
for the fourth quarter of fiscal 2019. Excluding fuel and the
$607.2 million Combined Pension Plan (as defined herein) withdrawal
charge, selling and administrative expenses as a percentage of
sales were 80 basis points lower than the fourth quarter of fiscal
2019 primarily driven by sales leverage, partially offset by
incremental COVID-19 related investments to protect and safeguard
customers and associates.
Interest expense was $113.1 million during the fourth quarter of
fiscal 2020 compared to $140.5 million during the fourth quarter of
fiscal 2019. The decrease in interest expense is primarily
attributable to lower average interest rates driven by our
refinancing activities.
Loss on debt extinguishment was $27.6 million during the fourth
quarter of fiscal 2020 compared to $45.6 million during the fourth
quarter of fiscal 2019. The loss on debt extinguishment during the
fourth quarter of fiscal 2020 related to the Company's partial
redemption of its 5.750% senior notes due 2025.
Other income was $107.2 million during the fourth quarter of
fiscal 2020 compared to other expense of $50.4 million during the
fourth quarter of fiscal 2019. The increase in other income is
primarily attributable to unrealized gains on non-operating
investments and non-service cost components of net pension and
post-retirement expense.
Income tax benefit of $64.1 million, representing a 30.8%
effective tax rate, was the result of the loss before income taxes
which was driven by the $607.2 million Combined Pension Plan
withdrawal charge during the fourth quarter of fiscal 2020. Income
tax expense was $22.3 million, representing a 24.8% effective tax
rate, during the fourth quarter of fiscal 2019.
Net loss was ($144.2 million) or ($0.37) per share during the
fourth quarter of fiscal 2020 compared to net income of $67.8
million or $0.12 per share during the fourth quarter of fiscal
2019. Net loss during the fourth quarter of fiscal 2020 included
the $449.4 million charge, net of tax, related to the Combined
Pension Plan.
Adjusted Net Income was $347.2 million, or $0.60 per share,
during the fourth quarter of fiscal 2020 compared to $194.2
million, or $0.33 per share, during the fourth quarter of fiscal
2019.
Adjusted EBITDA was $916.9 million during the fourth quarter of
fiscal 2020 compared to $755.6 million during the fourth quarter of
fiscal 2019. The increase in Adjusted EBITDA was primarily
attributable to the Company's 11.8% increase in identical sales and
related sales leverage, excluding the adjustment items, partially
offset by the impact of the extra week in the fourth quarter of
fiscal 2019.
Fiscal 2020 Results
Sales and other revenue was $69.7 billion during the 52 weeks
ended February 27, 2021 ("fiscal 2020") compared to $62.5 billion
during the 53 weeks ended February 29, 2020 ("fiscal 2019"). The
increase in sales was primarily driven by the Company's 16.9%
increase in identical sales, partially offset by lower fuel sales
and the extra week in the fourth quarter of fiscal 2019. Identical
sales also benefited from the Company’s 258% growth in digital
sales.
Gross profit margin increased to 29.3% in fiscal 2020 compared
to 28.2% in fiscal 2019. Excluding the impact of fuel, gross profit
margin increased 55 basis points.
Selling and administrative expenses increased 40 basis points to
27.0% of sales in fiscal 2020 from 26.6% in fiscal 2019. Excluding
fuel and the aggregate $892.9 million Combined Pension Plan and
UFCW National Fund (as defined herein) withdrawal charges, selling
and administrative expenses as a percentage of sales decreased 155
basis points during fiscal 2020 compared to fiscal 2019.
Income tax expense was $278.5 million, representing a 24.7%
effective tax rate, in fiscal 2020 compared to $132.8 million,
representing a 22.2% effective tax rate, in fiscal 2019. The
increase in the effective tax rate was primarily driven by the
increase in income before taxes relative to the amount of certain
tax deductions and credits realized during the comparable fiscal
year.
Net income was $850.2 million or $1.47 per share during fiscal
2020 compared to net income of $466.4 million or $0.80 per share
during fiscal 2019.
Adjusted Net Income was $1,891.4 million, or $3.24 per share,
during fiscal 2020 compared to $612.1 million, or $1.04 per share,
during fiscal 2019.
Adjusted EBITDA was $4,524.0 million during fiscal 2020 compared
to $2,834.4 million during fiscal 2019. The increase in Adjusted
EBITDA primarily reflects the Company's increase in identical sales
and sales leverage on gross margin and selling and administrative
expenses, excluding the adjustment items, during fiscal 2020,
partially offset by the impact of the extra week in fiscal
2019.
Fiscal 2020 Liquidity and Capital
Allocation
Net cash provided by operating activities was $3,902.5 million
during fiscal 2020 compared to $1,903.9 million during fiscal 2019.
The increase in cash flow from operations compared to fiscal 2019
was primarily due to improvements in operating performance and
changes in working capital.
During fiscal 2020 the Company spent $1.63 billion in capital
expenditures, which included accelerated investment in digital and
productivity initiatives, and the completion of 409 store
remodels.
The Company continues to make progress in delevering the balance
sheet, reducing its debt balance by approximately $400 million
during fiscal 2020. At the end of fiscal 2020, the Company's total
Net Debt Ratio was 1.5x, compared to 2.9x at the end of fiscal
2019.
During fiscal 2020, the Company repurchased an aggregate of 7.9
million shares of common stock for a total of $119.1 million
pursuant to the Company's $300 million share repurchase
authorization. The Company also paid a quarterly dividend of $0.10
per share on November 10, 2020 and February 10, 2021, respectively.
On April 13, 2021, the Company announced the next quarterly
dividend of $0.10 per share payable on May 10, 2021 to stockholders
of record as of April 26, 2021.
Fiscal 2021 Outlook
The Company is providing its fiscal 2021 outlook as follows:
- Identical sales in fiscal 2021 of approximately (6%) to (7.5%),
representing two-year stacked growth of 9.4% to 10.9%
- Adjusted Net Income Per Class A Common Share in the range of
$1.95 per share to $2.05 per share, representing compound annual
growth of 37% to 40% compared to fiscal 2019
- Adjusted EBITDA in the range of $3.5 billion to $3.6 billion,
representing compound annual growth of 12% to 14% compared to
fiscal 2019
- Effective tax rate to be approximately 25% excluding discrete
items
- Capital expenditures in the range of $1.9 billion to $2.0
billion
The Company is unable to provide a full reconciliation of the
GAAP and Non-GAAP Measures (as defined below) used in the fiscal
2021 outlook without unreasonable effort because it is not possible
to predict certain of the adjustment items with a reasonable degree
of certainty. This information is dependent upon future events and
may be outside of the Company's control and could have a
significant impact on its GAAP financial results for fiscal
2021.
About Albertsons
Companies
Albertsons Companies is a leading food and drug retailer in the
United States. As of February 27, 2021, the Company operated 2,277
retail stores with 1,727 pharmacies, 400 associated fuel centers,
22 dedicated distribution centers and 20 manufacturing facilities.
The Company operates stores across 34 states and the District of
Columbia with more than 20 well-known banners including Albertsons,
Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls,
United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings
Food Markets and Balducci's Food Lovers Market. The Company is
committed to helping people across the country live better lives by
making a meaningful difference, neighborhood by neighborhood. In
2020, along with the Albertsons Companies Foundation, the Company
gave $260 million in food and financial support, including $94
million through our Nourishing Neighbors Program to ensure those
living in our communities have enough to eat. Albertsons Companies
also pledged $5 million to organizations supporting social justice.
These efforts have helped millions of people in the areas of hunger
relief, education, cancer research and treatment, social justice
and programs for people with disabilities and veterans'
outreach.
Forward-Looking Statements, Non-GAAP
Measures and Identical Sales
This earnings report may include forward-looking statements
within the meaning of the federal securities laws. Forward-looking
statements contain information about future operating or financial
performance. Forward-looking statements are based on the Company's
current expectations and assumptions about market conditions and
our future operating performance which the Company believes to be
reasonable at this time. The Company's results may vary
significantly from quarter to quarter, and these expectations and
assumptions involve risks and uncertainties, including changes in
macroeconomic conditions and the Company's industry, failure to
achieve anticipated synergies and cost-savings, increased rates of
food price inflation or deflation and other factors, that could
cause actual results or events to be materially different from
those anticipated. These risks and uncertainties that could cause
actual results to differ materially from those expressed or implied
in the forward-looking statements include those related to the
COVID-19 pandemic, about which there are still many unknowns,
including the duration of the pandemic and the extent of its
impact. The Company undertakes no obligation to update or revise
any such statements as a result of new information, future events
or otherwise.
EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net
Income Per Class A Common Share and Net Debt Ratio (collectively,
the "Non-GAAP Measures") are performance measures that provide
supplemental information the Company believes is useful to analysts
and investors to evaluate its ongoing results of operations, when
considered alongside other GAAP measures such as net income,
operating income, gross profit, and net income per Class A common
share. These Non-GAAP Measures exclude the financial impact of
items management does not consider in assessing the Company's
ongoing operating performance, and thereby facilitate review of its
operating performance on a period-to-period basis. Other companies
may have different capital structures or different lease terms, and
comparability to the Company's results of operations may be
impacted by the effects of acquisition accounting on its
depreciation and amortization. As a result of the effects of these
factors and factors specific to other companies, the Company
believes EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net
Income Per Class A Common Share and Net Debt Ratio provide helpful
information to analysts and investors to facilitate a comparison of
its operating performance to that of other companies. The Company
also uses Adjusted EBITDA, as further adjusted for additional items
defined in its debt instruments, for board of director and bank
compliance reporting. The Company's presentation of Non-GAAP
Measures should not be construed as an implication that its future
results will be unaffected by unusual or non-recurring items.
As used in this earnings release, the term "identical sales"
includes stores operating during the same period in both the
current fiscal year and the prior fiscal year, comparing sales on a
daily basis. Direct to consumer internet sales are included in
identical sales, and fuel sales are excluded from identical
sales.
Albertsons Companies, Inc. and
Subsidiaries
Consolidated Statements of
Operations
(dollars in millions)
(unaudited)
Fourth Quarter
Fiscal 2020
Fourth Quarter
Fiscal 2019
Fiscal
2020
Fiscal
2019
Net sales and other revenue
$
15,772.3
$
15,436.8
$
69,690.4
$
62,455.1
Cost of sales
11,212.8
11,018.8
49,275.9
44,860.9
Gross profit
4,559.5
4,418.0
20,414.5
17,594.2
Selling and administrative
expenses
4,726.1
4,093.5
18,835.8
16,641.9
Loss (gain) on property dispositions
and impairment losses, net
8.2
(2.1
)
(38.8
)
(484.8
)
Operating (loss) income
(174.8
)
326.6
1,617.5
1,437.1
Interest expense, net
113.1
140.5
538.2
698.0
Loss on debt extinguishment
27.6
45.6
85.3
111.4
Other (income) expense, net
(107.2
)
50.4
(134.7
)
28.5
Income before income taxes
(208.3
)
90.1
1,128.7
599.2
Income tax (benefit) expense
(64.1
)
22.3
278.5
132.8
Net (loss) income
$
(144.2
)
$
67.8
$
850.2
$
466.4
Net (loss) income per Class A common
share
Basic net (loss) income per Class A common
share
$
(0.37
)
$
0.12
$
1.53
$
0.80
Diluted net (loss) income per Class A
common share
(0.37
)
0.12
1.47
0.80
Weighted average Class A common shares
outstanding
Basic
464.1
579.8
500.3
579.4
Diluted
464.1
580.6
578.1
580.3
Margins
Gross profit
28.9
%
28.6
%
29.3
%
28.2
%
Selling and administrative
expenses
30.0
%
26.5
%
27.0
%
26.6
%
Store data
Number of stores at end of
quarter/year
2,277
2,252
Albertsons Companies, Inc. and
Subsidiaries
Consolidated Balance
Sheets
(in millions)
(unaudited)
February 27,
2021
February 29,
2020
ASSETS
Current assets
Cash and cash equivalents
$
1,717.0
$
470.7
Receivables, net
550.9
525.3
Inventories, net
4,301.3
4,352.5
Prepaid assets
317.2
255.0
Other current assets
101.6
127.8
Total current assets
6,988.0
5,731.3
Property and equipment, net
9,412.7
9,211.9
Operating lease right-of-use assets
6,015.6
5,867.4
Intangible assets, net
2,108.8
2,087.2
Goodwill
1,183.3
1,183.3
Other assets
889.6
654.0
TOTAL ASSETS
$
26,598.0
$
24,735.1
LIABILITIES
Current liabilities
Accounts payable
$
3,487.3
$
2,891.1
Accrued salaries and wages
1,474.7
1,126.0
Current maturities of long-term debt and
finance lease obligations
212.4
221.4
Current operating lease obligations
605.3
563.1
Current portion of self-insurance
liability
321.4
308.9
Taxes other than income taxes
339.1
318.1
Other current liabilities
392.0
475.7
Total current liabilities
6,832.2
5,904.3
Long-term debt and finance lease
obligations
8,101.2
8,493.3
Long-term operating lease obligations
5,548.0
5,402.8
Deferred income taxes
533.7
613.8
Long-term self-insurance liability
837.7
838.5
Other long-term liabilities
1,821.8
1,204.3
Commitments and contingencies
Series A convertible preferred stock
844.3
—
Series A-1 convertible preferred stock
754.8
—
STOCKHOLDERS' EQUITY
Class A common stock
5.9
5.8
Additional paid-in capital
1,898.9
1,824.3
Treasury stock, at cost
(1,907.0
)
(25.8
)
Accumulated other comprehensive income
(loss)
63.5
(118.5
)
Retained earnings
1,263.0
592.3
Total stockholders' equity
1,324.3
2,278.1
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
$
26,598.0
$
24,735.1
Albertsons Companies, Inc. and
Subsidiaries
Consolidated Statements of
Cash Flows
(in millions)
(unaudited)
Fiscal
2020
Fiscal
2019
Cash flows from operating
activities:
Net income
$
850.2
$
466.4
Adjustments to reconcile net income to net
cash provided by operating activities:
Gain on property dispositions and
impairment losses, net
(38.8
)
(484.8
)
Depreciation and amortization
1,536.9
1,691.3
Operating lease right-of-use assets
amortization
581.5
570.3
LIFO expense
58.7
18.4
Deferred income tax
(112.3
)
(5.9
)
Pension and post-retirement benefits
income
(36.4
)
(2.0
)
Contributions to pension and
post-retirement benefit plans
(60.0
)
(11.0
)
Loss on interest rate swaps and commodity
hedges, net
16.9
50.6
Deferred financing costs
20.9
39.8
Loss on debt extinguishment
85.3
111.4
Equity-based compensation expense
59.0
32.8
Other operating activities
(143.0
)
2.5
Changes in operating assets and
liabilities, net of effects of acquisition of businesses:
Receivables, net
0.4
60.8
Inventories, net
9.2
(38.1
)
Accounts payable, accrued salaries and
wages and other accrued liabilities
787.4
85.3
Operating lease liabilities
(563.3
)
(584.4
)
Pension withdrawal liabilities
672.3
(62.3
)
Self-insurance assets and liabilities
6.5
(4.0
)
Other operating assets and liabilities
171.1
(33.2
)
Net cash provided by operating
activities
3,902.5
1,903.9
Cash flows from investing
activities:
Business acquisitions, net of cash
acquired
(97.9
)
—
Payments for property, equipment and
intangibles, including lease buyouts
(1,630.2
)
(1,475.1
)
Proceeds from sale of assets
161.6
1,096.7
Other investing activities
(5.5
)
(0.1
)
Net cash used in investing
activities
(1,572.0
)
(378.5
)
Fiscal
2020
Fiscal
2019
Cash flows from financing
activities:
Proceeds from issuance of long-term
debt
4,094.0
3,874.0
Payments on long-term borrowings
(4,446.7
)
(5,676.6
)
Payments of obligations under finance
leases
(79.9
)
(109.3
)
Payment of redemption premium on debt
extinguishment
(71.6
)
—
Payments for debt financing costs
(21.9
)
(53.2
)
Dividends paid on common stock
(93.7
)
—
Dividends paid on convertible preferred
stock
(66.0
)
—
Proceeds from convertible preferred
stock
1,680.0
—
Third party issuance costs on convertible
preferred stock
(80.9
)
—
Treasury stock purchase, at cost
(1,881.2
)
—
Employee tax withholding on vesting of
restricted stock and phantom units
(14.1
)
(18.8
)
Other financing activities
(59.8
)
(30.3
)
Net cash used in financing
activities
(1,041.8
)
(2,014.2
)
Net increase (decrease) in cash and
cash equivalents and restricted cash
1,288.7
(488.8
)
Cash and cash equivalents and
restricted cash at beginning of period
478.9
967.7
Cash and cash equivalents and
restricted cash at end of period
$
1,767.6
$
478.9
Albertsons Companies, Inc. and
Subsidiaries
Adjusted Net Income Per Class
A Common Share
(in millions, except per share
data)
The following tables reconcile Net (loss)
income to Adjusted Net Income, and Net (loss) income per Class
A common share to Adjusted Net Income Per Class A Common Share:
Fourth Quarter
Fiscal 2020
Fourth Quarter
Fiscal 2019
Fiscal
2020
Fiscal
2019
Numerator:
Net (loss) income
$
(144.2
)
$
67.8
$
850.2
$
466.4
Adjustments:
(Gain) loss on interest rate and commodity
hedges, net (d)
(7.1
)
50.2
16.9
50.6
Facility closures and transformation
(1)(b)
23.5
7.3
58.0
18.3
Acquisition and integration costs
(2)(b)
2.1
9.5
12.6
60.5
Equity-based compensation expense (b)
15.6
8.0
59.0
32.8
Loss (gain) on property dispositions and
impairment losses, net
8.2
(2.1
)
(38.8
)
(484.8
)
LIFO expense (a)
21.2
(0.5
)
58.7
18.4
Discretionary COVID-19 pandemic related
costs (3)(b)
—
—
134.6
—
Civil disruption related costs (4)(b)
—
—
13.0
—
Transaction and reorganization costs
related to convertible preferred stock issuance and initial public
offering (b)
0.4
0.3
23.8
3.7
Amortization of debt discount and deferred
financing costs (c)
4.2
5.0
20.3
73.9
Loss on debt extinguishment
27.6
45.6
85.3
111.4
Amortization of intangible assets
resulting from acquisitions (b)
12.3
46.6
55.8
273.6
Combined Plan and UFCW National Fund
withdrawal (5)(b)
607.2
—
892.9
—
Miscellaneous adjustments (6)(f)
(51.8
)
(2.7
)
4.2
35.0
Tax impact of adjustments to Adjusted Net
Income
(172.0
)
(40.8
)
(355.1
)
(47.7
)
Adjusted Net Income
$
347.2
$
194.2
$
1,891.4
$
612.1
Denominator:
Weighted average Class A common shares
outstanding - diluted
464.1
580.6
578.1
580.3
Adjustments:
Convertible preferred stock (7)
101.6
—
—
—
Restricted stock units and awards (8)
10.4
6.8
6.3
6.6
Adjusted weighted average Class A common
shares outstanding - diluted
576.1
587.4
584.4
586.9
Adjusted Net Income Per Class A Common
Share - diluted
$
0.60
$
0.33
$
3.24
$
1.04
Albertsons Companies, Inc. and
Subsidiaries
Adjusted Net Income Per Class
A Common Share
(in millions, except per share
data)
Fourth Quarter Fiscal
2020
Fourth Quarter Fiscal
2019
Fiscal
2020
Fiscal
2019
Net (loss) income per Class A common share
- diluted
$
(0.37
)
$
0.12
$
1.47
$
0.80
Convertible preferred stock (7)
0.12
—
—
—
Non-GAAP adjustments (9)
0.86
0.22
1.80
0.25
Restricted stock units and awards (8)
(0.01
)
(0.01
)
(0.03
)
(0.01
)
Adjusted Net Income Per Class A Common
Share - diluted
$
0.60
$
0.33
$
3.24
$
1.04
(1) Includes costs related to closures of
operating facilities and third-party consulting fees related to our
strategic priorities and associated business transformation.
(2) Related to conversion activities and
related costs associated with integrating acquired businesses,
primarily the Safeway acquisition. Also includes expenses related
to management fees paid in connection with acquisition and
financing activities.
(3) Includes $44.7 million in bonus
payments related to front-line associates during the third quarter
of fiscal 2020. Also includes $53 million of charitable
contributions to our communities and hunger relief and $36.9
million in final reward payments to front-line associates at the
end of the first quarter of fiscal 2020.
(4) Primarily includes costs related to
store damage, inventory losses and community support as a result of
the civil disruption during late May and early June in certain
markets.
(5) Includes the $607.2 million charge in
the fourth quarter of fiscal 2020 related to the withdrawal from
the Food Employers Labor Relations Association and United Food and
Commercial Workers Pension Fund ("FELRA") and the Mid-Atlantic UFCW
and Participating Pension Fund ("MAP" and together with FELRA, the
"Combined Pension Plan") and the $285.7 million charge in the third
quarter of fiscal 2020 related to the withdrawal from the United
Food and Commercial Workers International Union ("UFCW")
Union-Industry Pension Fund ("National Fund").
(6) Primarily includes lease adjustments
related to non-cash rent expense and costs incurred on leased
surplus properties, net realized and unrealized gains and losses
related to non-operating investments and adjustments for
unconsolidated equity investments.
(7) Represents the conversion of
convertible preferred stock to the fully outstanding as-converted
Class A common shares as of the end of each respective period, for
periods in which the convertible preferred stock is antidilutive
under GAAP.
(8) Represents incremental unvested
restricted stock units (RSUs) and unvested restricted stock awards
(RSAs) to adjust the diluted weighted average Class A common shares
outstanding during each respective period to the fully outstanding
RSUs and RSAs as of the end of each respective period.
(9) Reflects the per share impact of
Non-GAAP adjustments for each period. See the reconciliation of Net
(loss) income to Adjusted Net Income above for further
details.
Albertsons Companies, Inc. and
Subsidiaries
Adjusted Net Income Per Class
A Common Share
(in millions, except per share
data)
The following table is a reconciliation of
Adjusted Net Income to Adjusted EBITDA:
Fourth Quarter
Fiscal 2020
Fourth Quarter
Fiscal 2019
Fiscal
2020
Fiscal
2019
Adjusted Net Income (1)
$
347.2
$
194.2
$
1,891.4
$
612.1
Tax impact of adjustments to Adjusted Net
income
172.0
40.8
355.1
47.7
Income tax (benefit) expense
(64.1
)
22.3
278.5
132.8
Amortization of debt discount and deferred
financing costs, net (c)
(4.2
)
(5.0
)
(20.3
)
(73.9
)
Interest expense, net
113.1
140.5
538.2
698.0
Amortization of intangible assets
resulting from acquisitions (b)
(12.3
)
(46.6
)
(55.8
)
(273.6
)
Depreciation and amortization (e)
365.2
409.4
1,536.9
1,691.3
Adjusted EBITDA
$
916.9
$
755.6
$
4,524.0
$
2,834.4
(1) Reflects the impact of Non-GAAP
adjustments for each period presented. See the reconciliation of
Net (loss) income to Adjusted Net Income above for further
details.
Non-GAAP adjustment classifications within
the Consolidated Statement of Operations:
(a) Cost of sales
(b) Selling and administrative
expenses
(c) Interest expense, net
(d) (Gain) loss on interest rate and
commodity hedges, net:
Fourth Quarter
Fiscal 2020
Fourth Quarter
Fiscal 2019
Fiscal
2020
Fiscal
2019
Cost of sales
$
(6.9
)
$
2.3
$
(2.6
)
$
2.7
Other (income) expense, net
(0.2
)
47.9
19.5
47.9
Total (Gain) loss on interest rate and
commodity hedges, net
$
(7.1
)
$
50.2
$
16.9
$
50.6
(e) Depreciation and amortization:
Fourth Quarter
Fiscal 2020
Fourth Quarter
Fiscal 2019
Fiscal
2020
Fiscal
2019
Cost of sales
$
40.7
$
43.2
$
172.6
$
171.5
Selling and administrative expenses
324.5
366.2
1,364.3
1,519.8
Total Depreciation and amortization
$
365.2
$
409.4
$
1,536.9
$
1,691.3
(f) Miscellaneous adjustments:
Fourth Quarter
Fiscal 2020
Fourth Quarter
Fiscal 2019
Fiscal
2020
Fiscal
2019
Selling and administrative expenses
$
30.9
$
(7.6
)
$
75.6
$
21.0
Other (income) expense, net
(82.7
)
4.9
(71.4
)
14.0
Total Miscellaneous adjustments
$
(51.8
)
$
(2.7
)
$
4.2
$
35.0
Albertsons Companies, Inc. and
Subsidiaries
Adjusted Net Income Per Class
A Common Share
(in millions, except per share
data)
The following table is a reconciliation of
Net Debt Ratio:
Fiscal
2020
Fiscal
2019
Total debt (including finance leases)
$
8,313.6
$
8,714.7
Cash and cash equivalents
1,717.0
470.7
Total debt net of cash
6,596.6
8,244.0
Adjusted EBITDA
$
4,524.0
$
2,834.4
Total Net Debt Ratio
1.5
2.9
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210426005160/en/
Melissa Plaisance Melissa.Plaisance@albertsons.com
925-226-5115
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