SpartanNash Company Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended January 03, 2015; Provides Earnings Guidance for the First Quarter Ended April 25, 2015 and Full Year Ended January 2, 2016
Mar 3 15
SpartanNash Company reported unaudited consolidated earnings results for the fourth quarter and full year ended January 03, 2015. For the quarter, the company reported net sales of $1,962,589,000 compared to $1,128,548,000 a year ago. Operating earnings were $21,007,000 compared to operating loss of $13,077,000 a year ago. Earnings before income taxes and discontinued operations of $15,030,000 compared to loss before income taxes and discontinued operations of $22,595,000 a year ago. Earnings from continuing operations were $12,037,000 compared to loss from continuing operations of $14,459,000 a year ago. Net earnings were $11,871,000 compared to net loss of $14,756,000 a year ago. Basic and diluted net earnings per share were $0.32 compared to basic and diluted net loss per share of $0.49 a year ago. Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) increased 60.6% to $55.3 million, or 2.8% of net sales, when including the 53rd week, and increased 49.9% to $51.7 million, or 2.8% of net sales, excluding the 53rd week, compared to $34.5 million, or 3.1% of net sales last year. Adjusted earnings from continuing operations were $18.5 million, or $0.49 per diluted share, when including the 53rd week, and $16.5 million, or $0.44 per diluted share, when excluding the 53rd week, compared to $9.4 million, or $0.31 per diluted share. The increase in revenue was primarily due to $0.7 billion in sales from the merger of Nash Finch and the 2 extra weeks in this year's fourth quarter compared to last year, partially offset by $18 million in loss sales related to store closures.
For the full year, the company reported net sales of $7,916,062,000 compared to $3,190,039,000 a year ago. Operating earnings were $114,846,000 compared to operating earnings of $35,553,000 a year ago. Earnings before income taxes and discontinued operations of $90,449,000 compared to $15,082,000 a year ago. Earnings from continuing operations were $59,120,000 compared to $9,168,000 a year ago. Net earnings were $58,596,000 compared to $8,443,000 a year ago. Diluted net earnings per share were $1.55 compared to basic and diluted net earnings per share of $0.36 a year ago. Basic and diluted earnings per share from continuing operations of $1.57 compared to $0.39 a year ago. Net cash provided by operating activities was $139,073,000 compared to $97,055,000 a year ago. Adjusted earnings from continuing operations were $69.9 million, or $1.85 per diluted share, including the 53rd week, and $67.9 million, or $1.80 per diluted share, excluding the benefit of the 53rd week. Adjusted earnings from continuing operations for fiscal 2014 exclude net after-tax charges of $10.8 million, primarily related to merger integration expenses and asset impairment, restructuring charges and other non-cash charges. Capital expenditures totaled $90.0 million. The increase in operating cash flow was the result of contributions from the merger and favorable expense reductions. Total net long-term debt was $563.8 million as of January 3, 2015, versus $596.4 million last year. Adjusted EBITDA for the year was $234.4 million when including the 53rd week and $230.8 million when excluding the 53rd week compared to $126.9 million last year.
The company provided earnings guidance for the full year ended January 2, 2016. For the period, the company expects capital expenditures to be in the range of $75.0 million to $80.0 million, with depreciation and amortization of approximately $86.0 million to $90.0 million and total interest expense of approximately $23.5 to $25.0 million. Diluted earnings per share from continuing operations expected to be in the range of $1.56 to $1.65. Adjusted Diluted earnings per share from continuing operations expected to be in the range of $1.89 to 1.98.
For the quarter ended April 25, 2015, the company expects Diluted earnings from continuing operations to be in the range of $9,140,000 or $0.24 per share. Adjusted Diluted earnings from continuing operations expected to be of $15,194,000 or $0.40 per share.
SpartanNash Company Announce Executive Promotions
Mar 3 15
SpartanNash Company announced that the company has promoted two Executive Vice Presidents to key positions within the company. Dave Staples, SpartanNash's current Executive Vice President and Chief Financial Officer, has been appointed Chief Operating Officer (COO), and Derek Jones, Executive Vice President, Food Distribution, has been promoted to President, Wholesale and Distribution Operations. Both appointments are effective March 1, 2015. As Chief Operating Officer, Staples will oversee all three operating segments of the company: retail, wholesale and military distribution. His appointment will enable Eidson to focus more of his time on the Company's long term strategic plans and potential growth opportunities. The company has initiated recruiting efforts for a Chief Financial Officer; Staples will continue to serve as CFO until his replacement is hired. Staples joined SpartanNash in January 2000, serving as the company's Executive Vice President and Chief Financial Officer since November of 2000. Prior to joining SpartanNash, Staples held positions with Kmart and Arthur Andersen. Staples currently serves on the Board of Directors of the Michigan Chamber of Commerce and the Grand RapidsSymphony. As part of the company's strategic development plan, Derek Jones, SpartanNash's Executive Vice President, Food Distribution, has been promoted to President, Wholesale and Distribution Operations. Jones will report to Dave Staples and oversee the entire supply chain, including military supply chain operations. Jones joined the company in 2006 from Unisource Worldwide Inc., where he served as Vice President of Distribution for the company's eastern region. Jones currently serves on the Board of Directors of National Grocers Association, and he served on the Board of Directors of the Heart of West Michigan United Way from June 2011 to June 2014.