Under CEO Vivek Sankaran, Albertsons has invested heavily in digital transformation, customer engagement, and operational efficiency. Even after the halt of the proposed merger with Kroger, the company remained committed to expanding its digital capabilities, improving customer experiences and positioning itself for long-term growth.“While we are disappointed the merger was terminated, we never stopped investing in our business and our customers,” Sankaran said Wednesday (Jan. 8) during the company’s third- ...

Financial Data and Key Metrics - The company will provide an overview of its Q3 2024 financial results and fiscal 2024 outlook during the call [3] Business Line Data and Key Metrics - No specific data or metrics related to individual business lines were mentioned in the provided content Market Data and Key Metrics - No specific data or metrics related to individual markets were mentioned in the provided content Company Strategy and Industry Competition - The CEO will provide an update on the company's progress since the merger announcement and share early insights into strategic priorities moving forward [3] Management Commentary on Operating Environment and Future Outlook - Management may make forward-looking statements during the call, which could include commentary on the operating environment and future outlook [4] Other Important Information - The call will last approximately one hour and will include a Q&A session after management comments [2][3] Q&A Session Summary - No specific questions or answers were provided in the content for the Q&A session

For the quarter ended November 2024, Albertsons Companies, Inc. (ACI) reported revenue of $18.77 billion, up 1.2% over the same period last year. EPS came in at $0.71, compared to $0.79 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $18.8 billion, representing a surprise of -0.11%. The company delivered an EPS surprise of +7.58%, with the consensus EPS estimate being $0.66.While investors closely watch year-over-year changes in headline numbers -- revenue and earnin ...

Financial Performance - Net sales for the 12 weeks ended November 30, 2024, were $18.77 billion, a 1.2% increase compared to $18.56 billion in the same period last year[10] - Net income for the 12 weeks ended November 30, 2024, was $400.6 million, up 10.8% from $361.4 million in the same period last year[10] - Net income for the period ending November 30, 2024, was $400.6 million[15] - Net income for the period ending December 2, 2023, was $361.4 million[18] - Net income for the 12 weeks ended November 30, 2024 was $400.6 million, compared to $361.4 million for the same period in 2023[82] - Net income for Q3 fiscal 2024 was $400.6 million ($0.69 per Class A common share), compared to $361.4 million ($0.62 per share) in Q3 fiscal 2023[124] - For the first 40 weeks of fiscal 2024, net income was $786.8 million ($1.35 per Class A common share), compared to $1,045.5 million ($1.80 per share) in the same period of fiscal 2023[125][126] Assets and Liabilities - Total assets as of November 30, 2024, were $26.67 billion, a 1.7% increase from $26.22 billion as of February 24, 2024[8] - Cash and cash equivalents increased to $202.3 million as of November 30, 2024, up 7.2% from $188.7 million as of February 24, 2024[8] - Inventories, net, increased to $5.14 billion as of November 30, 2024, up 3.9% from $4.95 billion as of February 24, 2024[8] - Long-term debt and finance lease obligations were $7.78 billion as of November 30, 2024, slightly down from $7.78 billion as of February 24, 2024[8] - Total stockholders' equity increased to $3.37 billion as of November 30, 2024, up 22.5% from $2.75 billion as of February 24, 2024[8] - Total current assets as of November 30, 2024, were $6,665.5 million, a 6.0% increase from $6,287.5 million as of February 24, 2024[8] - Inventories, net as of November 30, 2024, were $5,137.2 million, a 3.9% increase from $4,945.2 million as of February 24, 2024[8] - Total stockholders' equity as of November 30, 2024, was $3,365.7 million, a 22.5% increase from $2,747.5 million as of February 24, 2024[8] - Total stockholders' equity increased from $2,747.5 million as of February 24, 2024, to $3,365.7 million as of November 30, 2024[15] - Total stockholders' equity increased from $1,610.7 million as of February 25, 2023, to $2,527.3 million as of December 2, 2023[18] - Restricted cash was $4.2 million as of November 30, 2024, compared to $4.5 million as of February 24, 2024[22] - Third-party receivables from pharmacy sales were $545.3 million as of November 30, 2024, compared to $376.1 million as of February 24, 2024[30] - Contract liability related to gift cards was $119.3 million as of November 30, 2024, compared to $111.4 million as of February 24, 2024[31] - Total assets measured at fair value on a recurring basis as of November 30, 2024 were $132.5 million, with $13.6 million in Level 1 and $118.9 million in Level 2[48] - The fair value of total debt as of November 30, 2024 was $7,299.6 million compared to the carrying value of $7,467.4 million[54] - Total long-term debt and finance lease obligations as of November 30, 2024 were $7,838.4 million, with $7,777.1 million in long-term portion[57] Cash Flow and Liquidity - Net cash provided by operating activities for the 40 weeks ended November 30, 2024, was $1.92 billion, an 11.1% increase from $1.73 billion in the same period last year[13] - Payments for property, equipment, and intangibles, including lease buyouts, were $1.45 billion for the 40 weeks ended November 30, 2024, a 5.8% decrease from $1.54 billion in the same period last year[13] - Net cash provided by operating activities for the 40 weeks ended November 30, 2024, was $1,922.1 million, an 11.0% increase from $1,730.8 million in the same period last year[13] - Payments for property, equipment, and intangibles, including lease buyouts, for the 40 weeks ended November 30, 2024, were $1,446.7 million, a 5.7% decrease from $1,535.0 million in the same period last year[13] - Cash and cash equivalents and restricted cash at the end of the period as of November 30, 2024, were $206.5 million, a 9.1% decrease from $227.2 million as of December 2, 2023[13] - Net cash provided by operating activities increased to $1,922.1 million for the first 40 weeks of fiscal 2024, up from $1,730.8 million in the same period of fiscal 2023[135] - Net cash used in investing activities was $1,416.5 million for the first 40 weeks of fiscal 2024, compared to $1,328.8 million in the same period of fiscal 2023[138][139] - Net cash used in financing activities decreased to $492.3 million in the first 40 weeks of fiscal 2024, down from $638.6 million in the same period of fiscal 2023[140][141] - The company estimates liquidity needs over the next 12 months to be approximately $5.0 billion, covering working capital, capital expenditures, pension obligations, and other expenses[145] - As of November 30, 2024, the company had no borrowings under its ABL Facility and total availability of $3,962.8 million (net of letter of credit usage)[146] Dividends and Share Repurchases - Cash dividends declared on common stock were $69.5 million for each quarter in 2024[15] - Cash dividends declared on common stock were $69.1 million for the period ending December 2, 2023[18] - Cash dividends paid on Class A common stock were $208.5 million ($0.36 per share) in the first 40 weeks of fiscal 2024, slightly up from $207.1 million ($0.36 per share) in the same period of fiscal 2023[142] - The company announced a 25% increase in the quarterly cash dividend from $0.12 to $0.15 per common share, effective December 11, 2024[142] - A share repurchase program of up to $2.0 billion was authorized, inclusive of existing authorizations, to be executed through various methods including open market repurchases and tender offers[143][144] Legal and Litigation - The company terminated the Merger Agreement with Kroger on December 10, 2024, following a preliminary injunction by the United States District Court for the District of Oregon[42] - The King County Superior Court for the State of Washington issued a permanent injunction on December 10, 2024, enjoining the consummation of the Merger[43] - The company filed a lawsuit against Kroger seeking damages in addition to the $600 million termination fee due to alleged breach of the Merger Agreement[45] - Kroger disputes the $600 million termination fee, claiming the company failed to comply with the Merger Agreement[46] - The company is involved in legal proceedings, including two qui tam actions alleging violations of the False Claims Act, which could result in treble damages and penalties[65] - The Company is facing litigation alleging overcharging of federal government healthcare programs by not providing usual and customary prices, with potential damages exceeding $100 million before trebling and excluding penalties[69] - The Company has recorded an estimated liability for the litigation matters related to overcharging federal government healthcare programs[69] - The Company is defending against a lawsuit challenging prescription-drug prices reported to a pharmacy benefit manager, with the case scheduled for trial on or after March 9, 2026[72] - The Company has recorded an estimated liability for the Pharmacy Benefit Manager (PBM) litigation[72] - The Company is named in approximately 83 opioid-related lawsuits, with trial dates scheduled in 2025 for cases in Dallas County (Texas), the State of Washington, and the City of Philadelphia (Pennsylvania)[73] - The Company settled 15 cases in New Mexico and Nevada, recording a liability of $21.5 million, which was paid by insurers in the fourth quarter of fiscal 2022[74] - The Company has received subpoenas and Civil Investigative Demands from the U.S. Department of Justice and state Attorneys General regarding purported violations of the federal Controlled Substances Act and the FCA[75] Operational Metrics - Digital sales increased 23% during the third quarter of fiscal 2024 compared to the same period in 2023[95] - Loyalty members increased 15% to 44.3 million in the third quarter of fiscal 2024 compared to the same period in 2023[95] - Identical sales, excluding fuel, increased 2.0% during the third quarter of fiscal 2024[95] - Adjusted EBITDA for the third quarter of fiscal 2024 was $1,065 million[100] - Adjusted net income for the third quarter of fiscal 2024 was $420 million, or $0.71 per Class A common share[100] - Capital expenditures were approximately $1,447 million during the first 40 weeks of fiscal 2024[98] - Net sales and other revenue increased 1.2% to $18,774.5 million for the third quarter of fiscal 2024, driven by a 2.0% increase in identical sales, primarily from strong pharmacy sales growth[104] - Identical sales, excluding fuel, were 2.0% for the 12 weeks ended November 30, 2024, compared to 2.9% for the same period in 2023[106] - Gross margin rate decreased to 27.9% during the third quarter of fiscal 2024, down from 28.0% in the same period of 2023, primarily due to lower-margin pharmacy sales and increased digital sales costs[109] - Selling and administrative expenses increased to 25.1% of net sales and other revenue in the third quarter of fiscal 2024, up from 24.8% in the same period of 2023, driven by merger-related costs and higher occupancy expenses[113] - Total retail square footage increased to 113.2 million at the end of the third quarter of fiscal 2024, up from 112.9 million in the same period of 2023[101] - Pharmacy sales accounted for 13.8% of net sales in the third quarter of fiscal 2024, up from 12.3% in the same period of 2023[106] - Digital sales continued to grow during the third quarter of fiscal 2024, contributing to the increase in identical sales[104] - The company operated 2,273 stores at the end of the third quarter of fiscal 2024, with 56.3% of stores being larger than 50,000 square feet[101] - Loss on property dispositions and impairment losses decreased to $10.2 million in the third quarter of fiscal 2024, down from $23.9 million in the same period of 2023[115] - Net loss on property dispositions and impairment losses for the first 40 weeks of fiscal 2024 was $59.4 million, driven by $62.7 million in asset impairments, including $39.8 million related to equipment from micro-fulfillment center closures, $19.5 million in retail store impairment losses, and $3.5 million related to technology assets, partially offset by $3.3 million in net gains from real estate sales[116] - Interest expense, net decreased to $109.0 million in Q3 fiscal 2024 from $116.3 million in Q3 fiscal 2023, primarily due to lower average outstanding borrowings, with a weighted average interest rate of 5.6% for both periods[117][119] - Other income, net for Q3 fiscal 2024 was $5.6 million, driven by unrealized gains from non-operating investments and non-service cost components of net pension and post-retirement expense, compared to $6.7 million in Q3 fiscal 2023[120] - Income tax expense for Q3 fiscal 2024 was $14.5 million with an effective tax rate of 3.5%, significantly lower than the $95.1 million and 20.8% rate in Q3 fiscal 2023, due to $81.0 million in discrete state income tax benefits from audit settlements[122] - Adjusted EBITDA for Q3 fiscal 2024 was $1,065.1 million (5.7% of net sales and other revenue), down from $1,106.5 million (6.0% of net sales) in Q3 fiscal 2023[127] - Adjusted EBITDA for the first 40 weeks of fiscal 2024 was $3,149.6 million (5.1% of net sales and other revenue), compared to $3,401.9 million (5.6% of net sales) in the same period of fiscal 2023[127] Taxes and Expenses - Income tax expense for the 12 weeks ended November 30, 2024 was $14.5 million, representing a 3.5% effective tax rate[26] - Income tax expense for the 40 weeks ended November 30, 2024 was $124.7 million, representing a 13.7% effective tax rate[28] - LIFO expense for the 12 weeks ended November 30, 2024 was $3.5 million, compared to $27.6 million for the same period in 2023[23] - LIFO expense for the 40 weeks ended November 30, 2024 was $22.9 million, compared to $87.8 million for the same period in 2023[23] - The company recorded $6.0 million in retail store impairment losses during the 12 weeks ended November 30, 2024[56] - The company contributed $42.5 million to its defined pension plans during the 12 weeks ended November 30, 2024[60] - The company anticipates contributing an additional $11.9 million to its defined benefit pension plans for the remainder of fiscal 2024[60] - Net pension and post-retirement expense for the 12 weeks ended November 30, 2024 was $1.1 million[60] - Total miscellaneous adjustments for the 12 weeks ended November 30, 2024, were $4.8 million, up from $3.4 million in the same period of fiscal 2023[133] - Total depreciation and amortization for the 12 weeks ended November 30, 2024, was $423.0 million, compared to $414.7 million in the same period of fiscal 2023[133] Other Financial Metrics - Basic net income per Class A common share for the 12 weeks ended November 30, 2024, was $0.69, up 9.5% from $0.63 in the same period last year[10] - Diluted net income per Class A common share for the 40 weeks ended November 30, 2024, was $1.35, a 25.0% decrease from $1.80 in the same period last year[10] - The company's accumulated other comprehensive income (AOCI) balance increased to $90.9 million as of November 30, 2024, from $88.0 million at the beginning of the period[79] - The company's net income per Class A common share is calculated using the two-class method, with no Convertible Preferred Stock outstanding as of June 17, 2023[80] - The company realized a gain of $10.5 million from the repurchase of its 45% ownership interest in El Rancho during the first quarter of fiscal 2023[24] - The company repaid $250.0 million and borrowed $50.0 million under the ABL Facility during the 40 weeks ended November 30, 2024[58]

Sales Performance - Net sales and other revenue increased 1.2% to $18,774.5 million in Q3 fiscal 2024, driven by a 2.0% increase in identical sales and a 23% growth in digital sales[5] - Digital sales grew 23% in Q3 fiscal 2024, with loyalty members increasing 15% to 44.3 million[7] - Net sales and other revenue for the 12 weeks ended November 30, 2024, were $18,774.5 million, a 1.2% increase compared to $18,557.3 million in the same period in 2023[31] - Identical sales include stores operating during the same period in both the current and prior fiscal year, comparing sales on a daily basis, with direct-to-consumer digital sales included and fuel sales excluded[28] Profitability and Margins - Gross margin rate decreased to 27.9% in Q3 fiscal 2024, primarily due to strong growth in pharmacy sales and increased digital sales costs[6] - Gross margin for the 12 weeks ended November 30, 2024, was $5,246.4 million, representing 27.9% of net sales, slightly down from 28.0% in the same period in 2023[31] - Adjusted EBITDA was $1,065.1 million, or 5.7% of net sales, in Q3 fiscal 2024, compared to $1,106.5 million, or 6.0% of net sales, in Q3 fiscal 2023[13] - Adjusted EBITDA for the 12 weeks ended November 30, 2024, was $1,065.1 million, compared to $1,106.5 million for the same period in 2023[37] - Rolling four quarters Adjusted EBITDA as of November 30, 2024, was $4,065.4 million, compared to $4,452.1 million as of December 2, 2023[47] Net Income and Earnings - Net income for the 12 weeks ended November 30, 2024, was $400.6 million, an 11% increase compared to $361.4 million in the same period in 2023[31] - Net income for the 12 weeks ended November 30, 2024, was $400.6 million, compared to $361.4 million for the same period in 2023[37] - Adjusted net income per Class A common share for the 12 weeks ended November 30, 2024, was $0.71, compared to $0.79 for the same period in 2023[39] Capital Expenditures and Investments - Capital expenditures totaled $1,446.7 million in the first 40 weeks of fiscal 2024, including 84 remodels and 9 new store openings[14] - Payments for property, equipment, and intangibles, including lease buyouts, for the 40 weeks ended November 30, 2024, were $1,446.7 million, a 5.8% decrease compared to $1,535.0 million in the same period in 2023[35] Dividends and Share Repurchases - The company increased its quarterly common stock dividend by 25% to $0.15 per share[7] - The company authorized a share repurchase program of up to $2.0 billion[16] Legal and Merger Activities - The company terminated the Merger Agreement with Kroger and filed a lawsuit seeking damages, including a $600 million termination fee[17][18] - Merger-related costs for the 12 weeks ended November 30, 2024, were $61.1 million, compared to $35.9 million for the same period in 2023[37] Financial Position and Debt - Total assets as of November 30, 2024, were $26,665.3 million, a 1.7% increase compared to $26,221.1 million as of February 24, 2024[33] - Inventories, net as of November 30, 2024, were $5,137.2 million, a 3.9% increase compared to $4,945.2 million as of February 24, 2024[33] - Long-term debt and finance lease obligations as of November 30, 2024, were $7,777.1 million, slightly down from $7,783.4 million as of February 24, 2024[33] - Total debt net of cash and cash equivalents as of November 30, 2024, was $7,636.1 million, compared to $8,312.1 million as of December 2, 2023[47] Operational Costs and Expenses - Business transformation costs for the 12 weeks ended November 30, 2024, were $15.0 million, compared to $12.3 million for the same period in 2023[37] - Equity-based compensation expense for the 12 weeks ended November 30, 2024, was $21.7 million, compared to $23.3 million for the same period in 2023[37] - LIFO expense for the 12 weeks ended November 30, 2024, was $3.5 million, compared to $27.6 million for the same period in 2023[37] - Depreciation and amortization for the 12 weeks ended November 30, 2024, was $423.0 million, compared to $414.7 million for the same period in 2023[37] Cash Flow - Net cash provided by operating activities for the 40 weeks ended November 30, 2024, was $1,922.1 million, an 11% increase compared to $1,730.8 million in the same period in 2023[35] Fiscal 2024 Outlook - Fiscal 2024 outlook includes identical sales growth of 1.8% to 2.0% and adjusted EBITDA in the range of $3.95 billion to $3.99 billion[21] - The company expects an effective tax rate of 15% to 16% for fiscal 2024, reflecting $81.0 million of discrete state income tax benefits recognized in Q3 fiscal 2024[20] Store Operations - Number of stores at the end of the quarter was 2,273, a slight increase from 2,271 in the previous quarter[31]

Key TakeawaysAlbertsons is set to report fiscal 2024 third-quarter results Wednesday morning, its first report since the grocery chain's proposed merger with Kroger fell apart last month after months of legal challenges.All the analysts covering Albertsons tracked by Visible Alpha expect the stock to rise in the coming months. The analysts expect Q3 revenue to have risen year-over-year but profit to have fallen.The grocery chains called off their merger last month, and have since accused each other of viola ...

CNBC's Jim Cramer on Friday walked investors through next week's market action, highlighting new economic data from the nonfarm payroll report and the latest purchasing managers' index, as well as earnings from grocery giant Albertsons."It's a light week, but still impactful, accept that people will be on edge ahead of Friday's employment report," he said. "Still, I think you should do some buying if the market gets hammered. As we saw today, it's not nearly as bad out there as so many think."Monday's PMI r ...

Analysts on Wall Street project that Albertsons Companies, Inc. (ACI) will announce quarterly earnings of $0.66 per share in its forthcoming report, representing a decline of 16.5% year over year. Revenues are projected to reach $18.8 billion, increasing 1.3% from the same quarter last year.The current level reflects an upward revision of 2.5% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial ...

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If you're concerned about rising valuations in the stock market or just want some reliable income for your portfolio, now may be an optimal time to load on dividend stocks, many of which are looking incredibly cheap. While growth investors have largely looked past dividend stocks this year, the good news is that if you're targeting these types of investments right now, you don't have to look far to find some good deals.Three stocks that pay you more than the S&P 500 average yield of 1.2% and which are tradi ...