GRAND RAPIDS, Mich-- Food solutions company SpartanNash (the 'Company') (Nasdaq: SPTN) today reported financial results for its 16-week first quarter ended April 20, 2024.
'SpartanNash continues to prove that we can deliver despite the challenging market dynamics, and we remain on target to reach the $125 to $150 million of gross benefits set out in our strategic plan by the end of 2024 - a year earlier than initially communicated. Thanks to the operational excellence and dedication of our Associates, along with our investments in supply chain and merchandising transformations, we continued to expand our adjusted EBITDA margin in the first quarter,' said SpartanNash CEO Tony Sarsam.
First Quarter Fiscal 2024 Highlights(1)
Net sales decreased 3.5% to $2.81 billion, driven by lower volumes in both the Wholesale and Retail segments.
Wholesale segment net sales decreased 3.4% to $2.01 billion due to reduced revenue in the national accounts customer channel.
Retail segment net sales decreased 3.6% to $792.2 million, with comparable store sales down 2.5%. The net sales decrease included a reduction in food assistance program benefits and lower fuel sales.
Net earnings of $0.37 per diluted share, compared to $0.32 per diluted share.
The increase was primarily due to a higher gross profit rate, which included lower LIFO expense of $9.2 million and benefits from the merchandising transformation, as well as decreased incentive compensation. This favorability was partially offset by lower unit volumes, changes in customer mix within the Wholesale segment, as well as higher interest, tax, and asset impairment expenses.
Adjusted EPS(2) of $0.53, compared to $0.64. Adjusted EBITDA(3) of $74.9 million, compared to $76.8 million. These measures exclude, among other items, restructuring and asset impairment charges and the impact of the LIFO provision.
Cash generated from operating activities of $36.5 million increased from the cash flows used in operations of $2.7 million.
Net long-term debt(4) to adjusted EBITDA(3) ratio of 2.4x increased sequentially compared to 2.3x at the end of the fourth quarter.
Capital expenditures and IT capital(5) of $44.1 million increased compared to $39.8 million.
Returned $10.7 million to shareholders through $2.6 million in share repurchases and $8.1 million in dividends.
Transformational programs on track to deliver $50 million to $60 million of annual run rate savings from supply chain transformation, merchandising transformation, and go-to-market strategy.
(1)
All comparisons are for the first quarter of 2024 compared with the first quarter of 2023, 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)
A reconciliation of net earnings to adjusted EBITDA, a non-GAAP financial measure, is provided in Table 2.
(4)
A reconciliation of long-term debt and finance lease obligations to net long-term debt, a non-GAAP financial measure, is provided in Table 4.
(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 2024 Outlook
The Company has reaffirmed its previous profitability guidance provided on February 15, 2024, with respect to adjusted EBITDA, adjusted EPS, and capital expenditures and IT capital, and is updating its total net sales guidance to reflect current trends and market conditions. The following table provides the Company's updated guidance for fiscal 2024:
See full release at: https://www.spartannash.com/investors/news/release/?id=134737
SOURCE SpartanNash
SPARTANNASH COMPANY 
