Albertsons Companies(ACI)

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Albertsons Companies(ACI) - 2026 Q1 - Quarterly Report
2025-07-22 20:05
[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1 - Condensed Consolidated Financial Statements (unaudited)](index=3&type=section&id=Item%201%20-%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements for the 16-week period ended June 14, 2025, including balance sheets, income, cash flows, and equity statements with detailed notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased slightly to $26.47 billion as of June 14, 2025, primarily due to reduced cash, while total liabilities were $23.25 billion and equity declined to $3.22 billion Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 14, 2025 | February 22, 2025 | | :--- | :--- | :--- | | **Total Assets** | **$26,469.8** | **$26,755.7** | | Cash and cash equivalents | $151.0 | $293.6 | | Total current assets | $6,416.9 | $6,559.0 | | **Total Liabilities** | **$23,245.5** | **$23,369.8** | | Total current liabilities | $7,867.9 | $7,251.0 | | Long-term debt and finance lease obligations | $7,005.6 | $7,762.5 | | **Total Stockholders' Equity** | **$3,224.3** | **$3,385.9** | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Net sales increased to $24.88 billion for the 16 weeks ended June 14, 2025, while net income slightly decreased to $236.4 million, and diluted EPS remained flat at $0.41 Q1 2025 vs Q1 2024 Statement of Operations (in millions, except per share data) | Metric | 16 weeks ended June 14, 2025 | 16 weeks ended June 15, 2024 | | :--- | :--- | :--- | | Net sales and other revenue | $24,880.8 | $24,265.4 | | Gross margin | $6,738.3 | $6,738.9 | | Operating income | $449.3 | $459.6 | | Net income | $236.4 | $240.7 | | Diluted net income per Class A common share | $0.41 | $0.41 | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to $754.4 million, with significant cash used in investing ($474.1 million) and financing ($422.9 million), leading to a $142.6 million net decrease in cash Cash Flow Summary (in millions) | Cash Flow Activity | 16 weeks ended June 14, 2025 | 16 weeks ended June 15, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $754.4 | $960.9 | | Net cash used in investing activities | ($474.1) | ($538.0) | | Net cash used in financing activities | ($422.9) | ($320.8) | | Net (decrease) increase in cash | ($142.6) | $102.1 | - Significant financing activities in Q1 2025 included **$314.8 million** for treasury stock purchases and **$85.7 million** for dividend payments[12](index=12&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity decreased from $3.39 billion to $3.22 billion, primarily due to $314.8 million in stock repurchases and $85.7 million in dividends, partially offset by net income - The company repurchased **14,249,535 shares** of common stock for **$314.8 million** during the quarter[14](index=14&type=chunk) - Cash dividends of **$0.15 per common share** were declared, totaling **$85.7 million**[14](index=14&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue disaggregation, debt, and legal contingencies, including pharmacy revenue growth, Kroger merger litigation, and ongoing False Claims Act, PBM, and Opioid lawsuits Disaggregated Revenues by Product Type (in millions) | Product Type | Q1 2025 Amount | Q1 2025 % of Total | Q1 2024 Amount | Q1 2024 % of Total | | :--- | :--- | :--- | :--- | :--- | | Non-perishables | $12,141.7 | 48.8% | $12,054.0 | 49.7% | | Fresh | $7,986.8 | 32.1% | $7,904.9 | 32.6% | | Pharmacy | $3,155.0 | 12.7% | $2,622.8 | 10.8% | | Fuel | $1,229.9 | 4.9% | $1,320.9 | 5.4% | | Other | $367.4 | 1.5% | $362.8 | 1.5% | - On December 10, 2024, the company terminated its merger agreement with Kroger and subsequently filed a lawsuit against Kroger for willful breach of the agreement, seeking damages and a **$600 million** termination fee[61](index=61&type=chunk)[62](index=62&type=chunk) - The company is defending against multiple significant legal actions, including two False Claims Act cases, PBM litigation, and numerous Opioid-related lawsuits. Estimated liabilities have been recorded for some of these matters[46](index=46&type=chunk)[53](index=53&type=chunk)[56](index=56&type=chunk) [Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202%20-%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 performance, highlighting 2.8% identical sales growth, 25% digital sales surge, and loyalty program expansion, alongside a decline in Adjusted EBITDA to $1.11 billion due to strategic investments and sales mix shifts Q1 2025 Key Performance Indicators | Metric | Q1 2025 | Change (YoY) | | :--- | :--- | :--- | | Identical sales (ex-fuel) | 2.8% | +1.4 p.p. | | Digital sales | 25% | N/A | | Loyalty members | 47.3 million | +14% | Q1 2025 vs Q1 2024 Financial Summary (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales and Other Revenue | $24,880.8 | $24,265.4 | | Net Income | $236.4 | $240.7 | | Adjusted Net Income | $318.9 | $391.6 | | Adjusted EBITDA | $1,111.0 | $1,183.9 | | Diluted EPS | $0.41 | $0.41 | | Adjusted Diluted EPS | $0.55 | $0.66 | - The company continued to execute its "Customers for Life" strategy, focusing on digital engagement, customer value, technology modernization, and productivity[91](index=91&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Net sales increased 2.5% to $24.88 billion, driven by identical sales growth and pharmacy, while gross margin rate decreased by 70 basis points, and selling and administrative expenses improved due to lower merger costs - The **2.5% increase** in Net sales and other revenue was primarily driven by a **2.8% increase** in identical sales, with strong growth in pharmacy sales being a key contributor[100](index=100&type=chunk) - Gross margin rate, excluding fuel and LIFO, decreased by **85 basis points** due to investments in customer value, a sales mix shift to pharmacy, and higher digital sales costs[104](index=104&type=chunk) - Selling and administrative expenses as a percentage of sales decreased by **50 basis points**, largely attributable to lower Merger-related costs, which were **$19.0 million** in Q1 2025 compared to **$92.3 million** in Q1 2024[105](index=105&type=chunk)[72](index=72&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity, with $754.4 million in operating cash flow, $585 million in capital expenditures, and returned $314.8 million via repurchases and $85.7 million in dividends, while managing debt through new note issuance - The company estimates liquidity needs of approximately **$5.5 billion** over the next 12 months for working capital, capital expenditures, debt service, and shareholder returns[128](index=128&type=chunk) - During Q1 2025, the company repurchased **14.2 million shares** of common stock for **$314.8 million**[127](index=127&type=chunk) - The company issued **$600.0 million** of **6.250%** senior unsecured notes due 2033 to redeem **$600.0 million** of **7.500%** notes due 2026[125](index=125&type=chunk) [Item 3 - Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203%20-%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposure were reported compared to the prior fiscal year's Annual Report on Form 10-K - No material changes in market risk exposure were reported for the quarter[131](index=131&type=chunk) [Item 4 - Controls and Procedures](index=31&type=section&id=Item%204%20-%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed effective by management, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures are effective[132](index=132&type=chunk) - No material changes in internal control over financial reporting were identified during the quarter[133](index=133&type=chunk) [PART II - OTHER INFORMATION](index=32&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1 - Legal Proceedings](index=32&type=section&id=Item%201%20-%20Legal%20Proceedings) This section refers to Note 5 for details on legal proceedings, with management asserting no expected material adverse effect on business or financial condition - The company is subject to various claims and lawsuits arising in the ordinary course of business. For detailed information, the report refers to Note 5 of the Condensed Consolidated Financial Statements[135](index=135&type=chunk) [Item 1A - Risk Factors](index=32&type=section&id=Item%201A%20-%20Risk%20Factors) No material changes to previously disclosed risk factors were reported since the Annual Report on Form 10-K - No material changes to risk factors were reported since the last annual report filed on April 21, 2025[138](index=138&type=chunk) [Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202%20-%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered equity sales occurred; the company repurchased 14.2 million shares for $314.8 million under its $2.0 billion program, with $1.6 billion remaining Share Repurchase Activity - Q1 2025 | Metric | Value | | :--- | :--- | | Total Shares Purchased | 14,249,535 | | Average Price Paid per Share | $21.93 | | Total Cost (in millions) | $314.8 | | Remaining Authorization (in millions) | $1,604.9 | [Item 3 - Defaults Upon Senior Securities](index=33&type=section&id=Item%203%20-%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - None[143](index=143&type=chunk) [Item 4 - Mine Safety Disclosures](index=33&type=section&id=Item%204%20-%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not Applicable[144](index=144&type=chunk) [Item 5 - Other Information](index=33&type=section&id=Item%205%20-%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q1 2025[145](index=145&type=chunk) [Item 6 - Exhibits](index=33&type=section&id=Item%206%20-%20Exhibits) This section lists exhibits filed with the Form 10-Q, including retention stock agreements, officer certifications, and Inline XBRL financial data files - Exhibits filed include officer certifications under Sarbanes-Oxley Sections 302 and 906, and Inline XBRL documents[146](index=146&type=chunk)
Albertsons Says New AI and Interactive Features Boost Digital Sales
PYMNTS.com· 2025-07-16 19:39
Core Insights - Albertsons Companies experienced a 25% increase in digital sales for the quarter ending June 14, significantly outpacing the 2.8% increase in identical sales [2] - The company's loyalty program membership grew by 14%, reaching a total of 47 million members [5] Digital Sales and Engagement - The growth in digital sales has increased eCommerce's share of total grocery revenue to 9% during the quarter, attributed to improvements in customer service and the mobile app [3] - Ongoing investments in strategic priorities have driven increased engagement across digital platforms, including enhancements like artificial intelligence and interactive features for customer communication [4] Loyalty Program - The loyalty program has been simplified and enhanced, leading to increased member engagement and spending [5] - Members are utilizing more features of the program, resulting in more frequent interactions with the company [5] Future Outlook - The company views eCommerce as a significant growth opportunity for customer acquisition and retention beyond 2025, despite current penetration being below industry peers [4] - The eCommerce business is nearing breakeven in terms of profitability, indicating potential for future growth [4]
Albertsons' Q1 Earnings Beat Estimates, Identical Sales Rise 2.8% Y/Y
ZACKS· 2025-07-16 14:01
Core Insights - Albertsons Companies, Inc. (ACI) reported first-quarter fiscal 2025 results with sales and earnings exceeding the Zacks Consensus Estimate, although the bottom line declined year-over-year [1][3] Financial Performance - Adjusted quarterly earnings were 55 cents per share, surpassing the Zacks Consensus Estimate of 53 cents, but down 16.7% from 66 cents in the prior year [3][10] - Net sales and other revenues reached $24,880.8 million, exceeding the Zacks Consensus Estimate of $24,719 million, and rose 2.5% year-over-year, driven by a 2.8% increase in identical sales and a 20% increase in pharmacy sales [3][10] - Digital sales grew by 25%, primarily due to strong first-party sales, although these gains were partially offset by a decline in fuel sales [3][10] Customer Engagement and Growth Initiatives - Identical sales growth was supported by advancements in pharmacy, digital platforms, and loyalty programs, with loyalty membership increasing by 14% to 47.3 million [2][4] - The company is focused on enhancing customer value, modernizing operations through technology, and investing in store upgrades and efficiency for long-term growth [2] Margins and Expenses - Gross profit remained flat at $6.74 billion, but gross margin contracted by 70 basis points to 27.1% compared to the previous year [5][10] - Selling and administrative expenses increased by 0.7% to $6.32 billion, with a decline of 50 basis points as a percentage of net sales [7] - Adjusted EBITDA declined 6.2% year-over-year to $1.11 billion, with an adjusted EBITDA margin of 4.5%, down 40 basis points [8] Capital Expenditures and Shareholder Returns - Capital expenditures totaled $584.6 million, reflecting the completion of 36 remodels and the opening of three new stores, with a forecast of $1.7-$1.9 billion for fiscal 2025 [12] - The company paid a quarterly dividend of 15 cents per share and repurchased 14.2 million shares for $314.8 million under a $2 billion repurchase authorization [13] Fiscal 2025 Outlook - Albertsons updated its fiscal 2025 outlook, expecting identical sales growth of 2.0-2.75% and adjusted EBITDA between $3.8 billion and $3.9 billion [15] - Adjusted earnings per share are projected to be in the range of $2.03-$2.16, down from $2.34 in fiscal 2024 [16]
Albertsons Companies: This Plunge Puts It On Sale
Seeking Alpha· 2025-07-16 06:58
Group 1 - Albertsons Companies experienced a 5.1% drop in share price following the announcement of its financial results for the first quarter of the 2025 fiscal year [1] - The financial results announcement was a significant event impacting shareholder sentiment [1] Group 2 - The focus of Crude Value Insights is on cash flow and companies in the oil and natural gas sector, highlighting value and growth prospects [1] - The service offers subscribers access to a stock model account, cash flow analyses of exploration and production firms, and live discussions about the sector [2] - A promotional offer for a two-week free trial is available for new subscribers [3]
Albertsons Q1 Sales Up on Digital Growth
The Motley Fool· 2025-07-15 18:17
Core Insights - Albertsons Companies reported first quarter 2025 results with same-store sales growth of 2.8%, adjusted EBITDA of $1.11 billion, and adjusted EPS of $0.55, indicating lower year-over-year profitability [1] - Management raised FY2025 same-store sales growth outlook to 2%–2.75%, driven by strong pharmacy and digital performance, while maintaining adjusted EBITDA and adjusted EPS guidance [1][10] Digital Transformation - E-commerce revenue grew 25% year-over-year, accounting for 9% of total grocery sales, although still below peers [3] - Investments in digital capabilities and mobile apps are enhancing customer engagement across omni-channel touchpoints [3][4] Pharmacy Performance - Pharmacy sales surged 20%, with GLP-1 medications contributing significantly to growth, and increased store traffic from pharmacy customers driving long-term value [5][6] - Integration of pharmacy and grocery is expected to enhance customer loyalty and increase visit frequency [6] Margin Dynamics - Gross margin declined by 85 basis points due to investments in customer value and a shift towards pharmacy and digital sales, partially offset by productivity gains [7] - National buying initiatives and automation are anticipated to provide gross margin support in the latter half of FY2025 [7][9] Future Outlook - Management expects adjusted EBITDA for FY2025 to be between $3.8 billion and $3.9 billion, with capital expenditures projected at $1.7 billion to $1.9 billion [10] - For FY2026, the company targets long-term identical sales growth of 2% or more and adjusted EBITDA growth exceeding sales [10]
Albertsons Companies(ACI) - 2025 Q1 - Earnings Call Transcript
2025-07-15 13:30
Financial Data and Key Metrics Changes - In Q1 2025, the company reported ID sales growth of 2.8%, adjusted EBITDA of $1,110 million, and adjusted earnings per share of $0.55, indicating solid results and gradual progress against strategic priorities [5][21][22] - The gross margin rate decreased to 27.1%, down 85 basis points year-over-year, primarily due to investments in customer value and a mix shift from strong pharmacy and digital growth [20][21] - Adjusted EBITDA decreased from $1,184 million in the previous year to $1,111 million [21][22] Business Line Data and Key Metrics Changes - E-commerce sales grew by 25%, reaching 9% of total grocery revenue, driven by strong performance in the first-party business and enhanced digital shopping experiences [6][20] - Loyalty program membership increased by 14% to 47 million members, with higher engagement and spending observed [7][9] - Pharmacy and Health platform grew by 20% year-over-year, benefiting from script and immunization growth [10][20] Market Data and Key Metrics Changes - The company anticipates identical sales growth in the range of 2% to 2.75% for the remainder of fiscal 2025, up from previous guidance of 1.5% to 2.5% [25] - The effective income tax rate for Q1 2025 was 24.1%, compared to 22.3% in the previous year, primarily due to a reduction of an uncertain tax position [21] Company Strategy and Development Direction - The company is focused on five strategic priorities: driving customer growth through digital connection, enhancing customer value, modernizing capabilities through technology, and driving transformational productivity [5][15] - Investments in digital platforms, including e-commerce and pharmacy, are expected to drive higher future customer lifetime value, despite creating near-term margin headwinds [24][25] - The company aims to leverage its consolidated scale for national buying and efficient supplier relationships, expecting to deliver $1.5 billion in savings from productivity initiatives from FY 2025 to 2027 [17][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing investments and their impact on customer engagement and traffic growth, particularly in the second half of 2025 [27][28] - The competitive pricing environment remains rational, with continued promotional investments observed [33][34] - Management highlighted the importance of cross-shopping between pharmacy and grocery, noting that pharmacy customers tend to visit stores more frequently and contribute to higher overall sales [10][52] Other Important Information - The company invested $585 million in capital expenditures during Q1 2025, including the opening of three new stores and the completion of 36 remodels [22] - The company has reached agreements covering nearly half of the 120,000 associates involved in labor negotiations, focusing on improving wages and benefits while maintaining operational flexibility [18][17] Q&A Session Summary Question: Drivers of gross margin decline and pricing environment - Management indicated that the focus remains on driving sales and unit growth, with expectations for productivity to provide a tailwind as national buying initiatives progress [32][33] - The pricing environment is characterized as rational, with continued promotional investments from competitors [34][35] Question: E-commerce profitability and media collective impact - E-commerce is nearing breakeven, driven by volume and operational efficiencies, with no financial impact from the media collective on the e-commerce P&L [37][38] Question: ID sales guidance and consumer changes - Management noted that pharmacy growth impacts ID sales comparisons, with expectations for gradual improvement in grocery units as the year progresses [42][43] Question: Price investment goals and productivity initiatives - The company is making surgical price investments based on data, with expectations for productivity initiatives to provide a tailwind in the second half of the year [46][49] Question: Pharmacy contribution from GLP-1s and customer engagement - GLP-1s contribute significantly to pharmacy comp, with strong engagement from customers leading to increased profitability in other categories [84][86] Question: Impact of tariffs on inflation - The company is actively managing cost increases from tariffs, focusing on domestic sourcing and exploring OwnBrands as a potential solution [88][90]
Albertsons Companies(ACI) - 2025 Q1 - Earnings Call Presentation
2025-07-15 12:30
Financial Performance - Adjusted EBITDA reached $1.11 billion[2] - The company aims to deliver $1.5 billion in savings from FY25 to FY27[12] - Digital sales increased by 25%[2] - ID sales increased by 2.8%[2] - Adjusted EPS was $0.55[2] Strategic Initiatives - The company focuses on driving customer growth through digital engagement[4] - Building the media business to fuel reinvestment into the core business[6] - The company plans to open new demand channels[7] - The company plans to enhance the customer value proposition by amplifying Own Brands presence[8] - Partnering with strategic vendors to invest in price[10] - Modernizing capabilities with a "Technology-first focus" and leveraging AI to accelerate operations[12]
Albertsons Companies(ACI) - 2026 Q1 - Quarterly Results
2025-07-15 11:31
[First Quarter Fiscal 2025 Highlights](index=1&type=section&id=First%20Quarter%20of%20Fiscal%202025%20Highlights) Albertsons reported solid operating and financial performance in the first quarter of fiscal 2025, driven by strategic investments in its digital platforms, pharmacy operations, and loyalty program Q1 Fiscal 2025 Key Performance Indicators | Metric | Value | Change | | :--- | :--- | :--- | | Identical Sales | 2.8% | Increase | | Digital Sales | 25% | Increase | | Loyalty Members | 47.3 million | +14% | | Net Income | $236 million | - | | Diluted EPS | $0.41 | - | | Adjusted Net Income | $319 million | - | | Adjusted Diluted EPS | $0.55 | - | | Adjusted EBITDA | $1,111 million | - | - CEO Susan Morris attributed the solid performance to ongoing investments in strategic priorities, which increased customer engagement across digital platforms and were funded by productivity initiatives[4](index=4&type=chunk) [First Quarter Fiscal 2025 Financial Performance](index=1&type=section&id=First%20Quarter%20of%20Fiscal%202025%20Results) Net sales and other revenue grew 2.5% to $24.9 billion, primarily due to a 2.8% increase in identical sales, fueled by strong pharmacy performance and 25% growth in digital sales Q1 FY2025 vs Q1 FY2024 Financial Summary | Metric | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | Net Sales & Other Revenue | $24,880.8 M | $24,265.4 M | | Identical Sales Growth | 2.8% | N/A | | Gross Margin Rate | 27.1% | 27.8% | | S&A as % of Revenue | 25.4% | 25.9% | | Net Income | $236.4 M | $240.7 M | | Adjusted Net Income | $318.9 M | $391.6 M | | Adjusted EBITDA | $1,111.0 M | $1,183.9 M | - The increase in Net Sales was driven by a **2.8%** rise in identical sales, with strong growth in pharmacy sales being the primary contributor, alongside a **25%** increase in digital sales, partially offset by lower fuel sales[5](index=5&type=chunk) - Gross margin rate decreased by **70 basis points** (**85 basis points** excluding fuel and LIFO) due to investments in customer value, the sales mix shifting towards lower-margin pharmacy products, and higher digital delivery costs[6](index=6&type=chunk) - Selling and administrative expenses as a percentage of sales decreased, primarily due to lower merger-related costs compared to the prior year[7](index=7&type=chunk)[8](index=8&type=chunk) [Capital Allocation and Corporate Actions](index=2&type=section&id=Capital%20Allocation%20and%20Common%20Stock%20Repurchase%20Program) In Q1 fiscal 2025, the company executed a balanced capital allocation strategy, investing in capital expenditures, paying dividends, repurchasing shares, and refinancing debt - Capital expenditures totaled **$584.6 million**, used for **36 remodels**, **three new stores**, and investments in digital and technology platforms[14](index=14&type=chunk) - The company repurchased **14.2 million shares** of common stock for **$314.8 million** under its existing **$2.0 billion** authorization[15](index=15&type=chunk) - A quarterly dividend of **$0.15 per share** was paid on May 9, 2025, and the next quarterly dividend of **$0.15 per share** was announced for payment on August 8, 2025[14](index=14&type=chunk) - The company issued **$600.0 million** of **6.250%** senior unsecured notes due 2033 to redeem its **7.500%** senior unsecured notes due 2026, effectively lowering its interest expense on this debt[16](index=16&type=chunk) [Fiscal 2025 Outlook](index=3&type=section&id=Fiscal%202025%20Outlook) Albertsons has updated its fiscal 2025 outlook, raising its identical sales growth forecast while maintaining other key guidance metrics Updated Fiscal 2025 Guidance | Metric | Fiscal 2025 Outlook | Status | | :--- | :--- | :--- | | Identical Sales Growth | 2.0% to 2.75% | **Updated** (from 1.5% - 2.5%) | | Adjusted EBITDA | $3.8B to $3.9B | Unchanged | | Adjusted Net Income per Share | $2.03 to $2.16 | Unchanged | | Effective Income Tax Rate | 23.5% to 24.5% | Unchanged | | Capital Expenditures | $1.7B to $1.9B | Unchanged | - The company is unable to provide a full reconciliation for its forward-looking non-GAAP measures to GAAP measures without unreasonable effort due to the unpredictability of certain adjustment items[17](index=17&type=chunk) [Company Overview and Forward-Looking Statements](index=3&type=section&id=About%20Albertsons%20Companies) Albertsons is a leading U.S. food and drug retailer operating 2,264 stores, with the report including forward-looking statements subject to numerous risks and uncertainties - As of June 14, 2025, the company operated **2,264 retail stores**, **1,725 pharmacies**, and **408 fuel centers** across **35 states** and D.C[19](index=19&type=chunk) - The report contains forward-looking statements regarding future performance, which are not guarantees and are subject to significant risks and uncertainties[21](index=21&type=chunk)[23](index=23&type=chunk) - Key risks include macroeconomic changes, consumer behavior shifts, labor negotiations, supply chain challenges, and litigation surrounding the terminated merger with Kroger[26](index=26&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) This section provides the unaudited condensed consolidated financial statements for the 16 weeks ended June 14, 2025, including Statements of Operations, Balance Sheets, and Statements of Cash Flows [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the first quarter of fiscal 2025, Net Sales and Other Revenue increased to $24.88 billion, while Operating Income slightly decreased, and Net Income remained relatively flat Q1 FY2025 Statement of Operations (in millions) | Line Item | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | Net sales and other revenue | $24,880.8 | $24,265.4 | | Gross margin | $6,738.3 | $6,738.9 | | Operating income | $449.3 | $459.6 | | Income before income taxes | $311.4 | $309.9 | | Net income | $236.4 | $240.7 | | Diluted net income per share | $0.41 | $0.41 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 14, 2025, total assets slightly decreased to $26.47 billion, cash and equivalents declined, total liabilities increased, and total stockholders' equity decreased due to share repurchases Balance Sheet Summary (in millions) | Line Item | June 14, 2025 | February 22, 2025 | | :--- | :--- | :--- | | Total current assets | $6,416.9 | $6,559.0 | | Total assets | $26,469.8 | $26,755.7 | | Total current liabilities | $7,867.9 | $7,251.0 | | Total liabilities | $23,245.5 | $23,370.8 | | Total stockholders' equity | $3,224.3 | $3,385.9 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first quarter, net cash provided by operating activities decreased to $754.4 million, while net cash used in investing and financing activities resulted in a net decrease in cash of $142.6 million Q1 Cash Flow Summary (in millions) | Cash Flow Activity | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $754.4 | $960.9 | | Net cash used in investing activities | ($474.1) | ($538.0) | | Net cash used in financing activities | ($422.9) | ($320.8) | | Net (decrease) increase in cash | ($142.6) | $102.1 | [Reconciliation of Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides detailed reconciliations of GAAP financial measures to non-GAAP measures, including Adjusted Net Income, Adjusted EBITDA, and the Total Net Debt Ratio Reconciliation of Net Income to Adjusted EBITDA (Q1 FY2025, in millions) | Line Item | Amount | | :--- | :--- | | **Net income** | **$236.4** | | Depreciation and amortization | $572.7 | | Interest expense, net | $141.8 | | Income tax expense | $75.0 | | Business transformation | $38.3 | | Merger-related costs | $19.0 | | (Gain) on property dispositions | ($31.9) | | Other adjustments | $58.7 | | **Adjusted EBITDA** | **$1,111.0** | Reconciliation of Diluted EPS to Adjusted Diluted EPS (Q1 FY2025) | Line Item | Per Share Amount | | :--- | :--- | | **Net income per Class A common share - diluted** | **$0.41** | | Non-GAAP adjustments | $0.15 | | Restricted stock units adjustment | ($0.01) | | **Adjusted net income per Class A common share - diluted** | **$0.55** | - The Total Net Debt Ratio increased to **1.96x** as of Q1 FY2025, compared to **1.81x** in the prior-year period[43](index=43&type=chunk)
Albertsons Companies (ACI) Q1 Earnings on the Horizon: Analysts' Insights on Key Performance Measures
ZACKS· 2025-07-10 14:16
Core Viewpoint - Analysts project that Albertsons Companies, Inc. (ACI) will report quarterly earnings of $0.53 per share, reflecting a year-over-year decline of 19.7%, while revenues are expected to reach $24.72 billion, an increase of 1.9% from the same quarter last year [1]. Earnings Projections - The consensus EPS estimate for the quarter has been revised downward by 6.6% over the past 30 days, indicating a collective reassessment by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue and Key Metrics - Analysts expect 'Revenues- Fuel' to be $1.28 billion, which represents a decrease of 3.2% from the prior-year quarter [5]. - The average forecast for 'Number of stores at end of quarter' is 2,270, slightly up from 2,269 reported in the same quarter last year [5]. - The projected 'Total Square Footage - Retail Square Feet' is 113.03 million, compared to 112.80 million in the same quarter last year [6]. Market Performance - Over the past month, Albertsons Companies shares have gained 5%, outperforming the Zacks S&P 500 composite's increase of 4.4% [6]. - Based on its Zacks Rank 4 (Sell), ACI is expected to underperform the overall market in the upcoming period [6].
Albertsons Companies: Steady Fundamentals And Capital Return Support
Seeking Alpha· 2025-07-08 14:20
Group 1 - Albertsons Companies, Inc. is a leading grocery retailer in the United States, operating 2,270 stores under more than 20 brands across 34 states and the District of Columbia [1] - The company's network includes supermarkets and various other retail formats, indicating a diverse operational structure [1] Group 2 - The company is listed on the New York Stock Exchange under the ticker symbol ACI, highlighting its public trading status [1]