Shares of Albertsons Companies Inc. ACI, -0.22% dropped 0.7% in premarket trading Tuesday, after the grocery-store chain reported fiscal third-quarter profit and sales that exceeded expectations but saw a drop in gross margins. Albertsons, which is in the process of being acquired by Kroger Co. KR, -0.17%, said net income for the quarter to Dec. 2 was $361.4 million, or 62 cents a share, after income of $375.5 million, or 20 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earn ...

Financial Performance - Net sales for the 12 weeks ended December 2, 2023, were $18,557.3 million, an increase from $18,154.9 million for the same period in 2022, representing a growth of 2.2%[9] - Gross margin for the 12 weeks ended December 2, 2023, was $5,197.3 million, compared to $5,121.7 million in the prior year, reflecting an increase of 1.5%[9] - Operating income for the 12 weeks ended December 2, 2023, was $566.1 million, a decrease from $582.4 million in the same period last year, indicating a decline of 2.2%[9] - Net income for the 12 weeks ended December 2, 2023, was $361.4 million, down from $375.5 million in the prior year, representing a decrease of 3.5%[9] - Basic net income per Class A common share for the 12 weeks ended December 2, 2023, was $0.63, compared to $0.20 in the same period last year[9] Assets and Liabilities - Total assets as of December 2, 2023, were $26,496.5 million, an increase from $26,168.2 million as of February 25, 2023[6] - Total liabilities as of December 2, 2023, were $22,019.3 million, compared to $21,200.5 million as of February 25, 2023, reflecting an increase of 3.8%[6] - Total stockholders' equity as of December 2, 2023, was $2,527.3 million, an increase from $2,216.6 million[15] - The company had $4.5 million in restricted cash as of December 2, 2023, down from $8.0 million as of February 25, 2023[22] Cash Flow and Investments - Cash flows from operating activities for the 40 weeks ended December 2, 2023, were $1,045.5 million, compared to $1,202.4 million for the same period in 2022, indicating a decrease of 13.1%[9] - Net cash provided by operating activities decreased to $1,730.8 million from $2,072.0 million, reflecting a decline of 16.5%[12] - Net cash used in investing activities was $1,328.8 million, down from $1,478.7 million, indicating a reduction of 10.1%[12] - Cash and cash equivalents at the end of the period were $227.2 million, a substantial decrease from $4,420.3 million at the end of the previous year[12] Debt and Interest - Interest expense for the 12 weeks ended December 2, 2023, was $116.3 million, an increase from $84.3 million in the same period last year, reflecting a rise of 38%[9] - The fair value of total debt as of December 2, 2023, was $7,841.7 million, compared to a carrying value of $8,134.3 million, reflecting a decrease in fair value[50] - As of December 2, 2023, total debt decreased to $8,534.8 million from $8,910.1 million as of February 25, 2023, representing a reduction of approximately 4.2%[53] Taxation - The effective tax rate for the 12 weeks ended December 2, 2023, was 20.8%, down from 24.4% for the same period in 2022, primarily due to an increase in federal tax credits[29] - For the 40 weeks ended December 2, 2023, the company reported an effective tax rate of 17.9%, compared to 24.1% for the same period in 2022[30] Legal Matters - The company is involved in ongoing litigation related to the False Claims Act, with potential damages exceeding $100 million before trebling and excluding penalties[68] - The company has recorded an estimated liability for ongoing legal matters, although management believes that the aggregate estimated liabilities are reasonable[62] - The Company recorded a liability of $21.5 million for settlements related to opioid litigation in New Mexico and Nevada, which was paid by insurers in Q4 of fiscal 2022[73] Sales Performance - Pharmacy sales increased to $2,282.8 million for the 12 weeks ended December 2, 2023, compared to $1,724.4 million in the same period last year, representing a growth of 32.4%[35] - Non-perishable product sales accounted for 49.8% of total revenue for the 12 weeks ended December 2, 2023, slightly down from 51.0% in the same period last year[35] - Fresh product sales represented 30.8% of total revenue for the 12 weeks ended December 2, 2023, compared to 31.7% in the prior year[35] Merger and Acquisition Activities - The merger agreement with Kroger includes a cash consideration of $34.10 per share, reduced by a special cash dividend of $6.85 per share[38] - The company and Kroger announced a definitive agreement for the sale of select stores and distribution centers to C&S Wholesale Grocers, LLC[42] Stockholder Information - The company declared cash dividends of $0.12 per common share, totaling $69.0 million for the period[15] - The company reported a basic net income of $361.4 million for the 12 weeks ended December 2, 2023, resulting in a basic net income per Class A common share of $0.63[86] - The diluted net income per Class A common share for the 12 weeks ended December 2, 2023, was $0.62, with a net income allocated to Class A common stockholders of $361.4 million[86] Operational Metrics - The company operated 2,271 stores as of December 2, 2023, with a total retail square footage of 112.9 million[106][107] - The company has 1,726 pharmacies and 1,332 in-store branded coffee shops as of December 2, 2023[98] - Identical sales increased by 2.9% in the third quarter of fiscal 2023[104] - Digital sales surged by 21% compared to the previous year[104] Other Comprehensive Income - The ending balance of accumulated other comprehensive income (AOCI) was $68.7 million as of December 2, 2023[80] - The Company has recorded a total comprehensive income of $68.7 million for the 40 weeks ended December 2, 2023[79] Accounting and Reporting - The company is currently evaluating the impact of recently issued accounting standards on its consolidated financial statements[36][37] - Fair value measurements are categorized into a three-level hierarchy based on the transparency of inputs[44]

Core Insights - Albertsons Companies has launched its 2nd Annual Innovation Launchpad competition to discover emerging brands in food, beverage, and pet products [1][2] - The competition invites independent specialty and natural food brands with net retail sales between $2 million and $8 million to apply [1] - The event will take place at the Natural Products Expo West in California, with the award ceremony scheduled for March 13 [1] Competition Details - Last year, the competition attracted over 900 applicants, with 47 selected to present their products [2] - The three grand prize winners from the previous year received prizes valued at $170,000 each, including cash and industry recognition [2] - This year's top brands will be considered for distribution in various Albertsons banner stores [2] Application Process - Applications for the competition are open until January 19 [3] - Interested brands can find more information and apply through the designated website [3] Company Overview - Albertsons Companies operates 2,272 retail food and drug stores across 34 states and the District of Columbia [4] - The company runs 1,726 pharmacies, 401 associated fuel centers, and 22 dedicated distribution centers [4] - In 2022, Albertsons contributed over $200 million in food and financial support to communities [4]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 9, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 001-39350 Albertsons Companies, Inc. (Exact name of registrant as specified in its charter) Delaware 47-4376911 (State or other ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 17, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 001-39350 Albertsons Companies, Inc. (Exact name of registrant as specified in its charter) Delaware 47-4376911 (State or other jur ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 25, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 001-39350 Albertsons Companies, Inc. (Exact name of registrant as specified in its charter) Delaware 47-4376911 (State or other jurisdi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 3, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 001-39350 Albertsons Companies, Inc. (Exact name of registrant as specified in its charter) Delaware 47-4376911 (State or other ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 10, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 001-39350 Albertsons Companies, Inc. (Exact name of registrant as specified in its charter) Delaware 47-4376911 (State or othe ...

Albertsons Companies, Inc. (NYSE:ACI) Q1 2022 Earnings Conference Call July 26, 2022 8:30 AM ET Company Participants Melissa Plaisance - SVP, IR Vivek Sankaran - CEO Sharon McCollam - President and CFO Conference Call Participants John Heinbockel - Guggenheim Michael Kessler - Morgan Stanley Paul Lejuez - Citi Edward Kelly - Wells Fargo Rupesh Parikh - Oppenheimer Ken Goldman - JPMorgan Michael Montani - Evercore ISI Scott Mushkin - R5 Capital Robert Moskow - Credit Suisse Spencer Hanus - Wolfe Research Mel ...

PART I - FINANCIAL INFORMATION [Condensed Consolidated Financial Statements (unaudited)](index=3&type=section&id=Item%201%20-%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) This section presents the unaudited interim financial statements for the 16-week period ended June 18, 2022, including balance sheets, income statements, cash flow statements, and accompanying notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 18, 2022, total assets increased slightly to **$28.22 billion**, with total stockholders' equity rising to **$4.07 billion** from **$3.02 billion** at fiscal year-end 2021 Condensed Consolidated Balance Sheets (in millions) | Account | June 18, 2022 | February 26, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $8,678.2 | $8,366.4 | | **TOTAL ASSETS** | **$28,220.0** | **$28,123.0** | | **Total Current Liabilities** | $7,912.3 | $8,348.5 | | **Total Liabilities** | $24,149.4 | $25,098.4 | | **Total Stockholders' Equity** | $4,070.6 | $3,024.6 | | **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** | **$28,220.0** | **$28,123.0** | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) For the 16 weeks ended June 18, 2022, net sales and other revenue increased to **$23.31 billion**, with net income rising to **$484.2 million** and diluted EPS reaching **$0.84** Statement of Operations Highlights (in millions, except per share data) | Metric | 16 Weeks Ended June 18, 2022 | 16 Weeks Ended June 19, 2021 | | :--- | :--- | :--- | | Net sales and other revenue | $23,310.3 | $21,269.4 | | Gross margin | $6,545.0 | $6,191.0 | | Operating income | $760.1 | $687.1 | | Net income | $484.2 | $444.8 | | Diluted net income per Class A common share | $0.84 | $0.78 | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities decreased to **$991.9 million** for the first 16 weeks of fiscal 2022, while cash and cash equivalents increased to **$3.26 billion** by period-end Cash Flow Summary (in millions) | Cash Flow Activity | 16 Weeks Ended June 18, 2022 | 16 Weeks Ended June 19, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $991.9 | $1,059.0 | | Net cash used in investing activities | ($551.4) | ($493.0) | | Net cash used in financing activities | ($129.5) | ($109.2) | | **Net increase in cash and cash equivalents** | **$311.0** | **$456.8** | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies, revenue recognition, debt, and legal contingencies, highlighting a significant increase in LIFO expense and ongoing opioid litigation - LIFO expense increased to **$62.1 million** for the 16 weeks ended June 18, 2022, compared to **$14.5 million** for the same period in 2021, reflecting an inflationary environment[15](index=15&type=chunk) - The company's revenue is disaggregated into Non-perishables (**49.1%**), Fresh (**33.8%**), Pharmacy (**8.3%**), Fuel (**7.1%**), and Other (**1.7%**) for the first quarter of fiscal 2022[25](index=25&type=chunk) - The company is a defendant in over **90 lawsuits** related to the national opioid epidemic, with active cases in New Mexico and Nevada, and is unable to determine the probability of outcome or range of loss[55](index=55&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=19&type=section&id=Item%202%20-%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong Q1 2022 performance, with **9.6%** net sales growth driven by identical sales and higher fuel prices, alongside increased digital sales and loyalty program membership, while addressing inflationary impacts and reaffirming capital expenditure plans - Identical sales increased by **6.8%** and digital sales grew by **28%** in Q1 2022 compared to Q1 2021[83](index=83&type=chunk)[84](index=84&type=chunk)[91](index=91&type=chunk) - The Just for U loyalty program grew by **16%** year-over-year to **31 million** members, with a retention rate of over **90%** for actively engaged members[84](index=84&type=chunk) - Own Brands sales penetration reached a high of **25.8%** during the first quarter of fiscal 2022[87](index=87&type=chunk) Q1 2022 Financial Highlights | Metric | Q1 2022 | Change vs. Q1 2021 | | :--- | :--- | :--- | | Net Income | $484 million | +8.9% | | Adjusted Net Income | $582 million | +12.5% | | Adjusted EBITDA | $1,420 million | +8.6% | | Diluted EPS | $0.84 | +7.7% | | Adjusted Diluted EPS | $1.00 | +12.4% | [Results of Operations](index=23&type=section&id=RESULTS%20OF%20OPERATIONS) Net sales and other revenue increased **9.6%** to **$23.31 billion** in Q1 2022, driven by identical sales and higher fuel prices, while gross margin rate decreased to **28.1%** and selling and administrative expenses as a percentage of sales decreased to **25.2%** - Net sales and other revenue increased **9.6%** to **$23.31 billion**, driven by a **6.8%** increase in identical sales and higher fuel sales[97](index=97&type=chunk) - Gross margin rate decreased to **28.1%** from **29.1%** in the prior year, with a **27 basis point** decrease excluding fuel and LIFO, mainly due to fewer high-margin COVID-19 vaccine administrations[102](index=102&type=chunk) - Selling and administrative expenses as a percentage of sales decreased by **70 basis points** to **25.2%**, primarily due to sales leverage, lower COVID-19 expenses, and productivity initiatives[103](index=103&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company maintains strong liquidity with **$991.9 million** in operating cash flow, forecasting **$2.0 billion** to **$2.1 billion** in fiscal 2022 capital expenditures, and believes current resources are sufficient for future needs - Net cash provided by operating activities was **$991.9 million** for the first quarter of fiscal 2022[121](index=121&type=chunk) - Capital expenditures for the quarter were **$613.8 million**, with the full-year fiscal 2022 forecast between **$2.0 billion** and **$2.1 billion**[123](index=123&type=chunk)[124](index=124&type=chunk) - As of June 18, 2022, the company had no borrowings outstanding under its ABL Facility and total availability of **$3.75 billion**[130](index=130&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203%20-%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes to the company's market risk exposure since the last annual report on Form 10-K - There have been no material changes in the company's exposure to market risk since the last annual report[132](index=132&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204%20-%20Controls%20and%20Procedures) The Principal Executive Officer and Principal Financial Officer concluded that disclosure controls and procedures are effective, with no material changes to internal control over financial reporting during the quarter - The company's disclosure controls and procedures were deemed effective by the CEO and CFO[133](index=133&type=chunk) - No changes in internal control over financial reporting occurred during the first quarter of fiscal 2022 that have materially affected, or are reasonably likely to materially affect, internal controls[134](index=134&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=32&type=section&id=Item%201%20-%20Legal%20Proceedings) The company is subject to routine legal proceedings, including an agreement in principle to pay **$6.9 million** to settle a California investigation regarding underground storage tanks - The company has reached an agreement in principle to pay **$6.9 million** to settle an investigation by the State of California concerning underground storage tanks at its fueling stations[137](index=137&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A%20-%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's most recent Annual Report on Form 10-K - There have been no material changes to the risk factors previously included in the company's most recent Annual Report on Form 10-K[138](index=138&type=chunk) [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) The company issued **256,162** shares of common stock upon conversion of Convertible Preferred Stock, exempt from registration under the Securities Act of 1933 - On July 6, 2022, the company issued **256,162** shares of common stock upon the conversion of approximately **4,411** shares of Convertible Preferred Stock, relying on a registration exemption under Section 3(a)(9) of the Securities Act[138](index=138&type=chunk) [Other Information](index=33&type=section&id=Item%205%20-%20Other%20Information) New employment agreements were executed with the EVP & COO and EVP & CTO, effective July 20, 2022, amending their prior contracts regarding employment terms and termination provisions - New employment agreements were executed for the EVP & COO (Susan Morris) and EVP & CTO (Anuj Dhanda), which amend the term of employment to be continuous until termination and modify termination benefits[141](index=141&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk) [Exhibits](index=33&type=section&id=Item%206%20-%20Exhibits) This section lists exhibits filed with the Form 10-Q, including a Lock-Up Agreement, new executive employment agreements, and Sarbanes-Oxley Act certifications - The exhibits filed with this report include new employment agreements for the COO and CTO, and certifications by the CEO and CFO as required by Sections 302 and 906 of the Sarbanes-Oxley Act[145](index=145&type=chunk)[146](index=146&type=chunk)