Core Insights - Albertsons Companies, Inc. (ACI) reported second-quarter fiscal 2024 results with both net sales and earnings surpassing the Zacks Consensus Estimate, although earnings decreased compared to the previous year [1][2] Financial Performance - Adjusted quarterly earnings were 51 cents per share, exceeding the Zacks Consensus Estimate of 48 cents, but down 19% from 63 cents per share in the prior-year period [2] - Net sales and other revenues reached $18,551.5 million, beating the Zacks Consensus Estimate of $18,451 million, and increased by 1.4% year over year, driven by a 2.5% rise in identical sales and a 24% increase in digital sales [3] - Gross profit was $5.1 billion, up 1.6% year over year, while the gross margin remained flat at 27.6% [3] - Selling and administrative expenses rose 4.1% to $4.8 billion, increasing to 25.8% as a percentage of net sales, attributed to higher operating expenses related to digital and omnichannel development, merger-related costs, and increased employee expenses [4] - Adjusted EBITDA declined 7.8% year over year to $900.6 million, with the adjusted EBITDA margin contracting by 40 basis points [4] Balance Sheet and Future Outlook - As of September 7, 2024, cash and cash equivalents stood at $280 million, with long-term debt and finance-lease obligations totaling $7.78 billion and total stockholders' equity at $3 billion [6] - Management anticipates margin pressure in fiscal 2024 due to competitive challenges, investments in wages and benefits, and a higher mix of lower-margin pharmacy and digital businesses, although productivity initiatives are expected to mitigate some of these pressures [6] Market Performance - Shares of Albertsons have declined by 8% over the past three months, contrasting with a 4% growth in the industry [6]

Albertsons Companies saw its digital sales increase 24% during a quarter in which its identical store sales increased 2.5%. During the quarter ended Sept. 7, the food and drug retailer also reported a 15% increase in its loyalty members, bringing the total to 43 million, according to a Tuesday (Oct. 15) earnings release. "In the second quarter of fiscal 2024, investments in our Customers for Life strategy continued to drive strong growth in our digital sales and pharmacy operations," Vivek Sankaran, CEO of ...

Core Insights - Albertsons Companies, Inc. reported revenue of $18.55 billion for the quarter ended August 2024, reflecting a year-over-year increase of 1.4% [1] - The company's EPS was $0.51, down from $0.63 in the same quarter last year [1] - Revenue exceeded the Zacks Consensus Estimate of $18.45 billion by 0.55%, while EPS surpassed the consensus estimate of $0.48 by 6.25% [1] Performance Metrics - Same-store sales increased by 2.5%, outperforming the average estimate of 1.4% from five analysts [2] - The number of stores at the end of the quarter was 2,267, slightly below the average estimate of 2,269 from four analysts [2] - Total retail square footage was reported at 112.8 million, marginally above the three-analyst average estimate of 112.78 million [2] - Fuel revenue was $951.30 million, significantly below the average estimate of $1.09 billion from three analysts, representing a year-over-year decline of 15.6% [2] Stock Performance - Over the past month, shares of Albertsons Companies have decreased by 3.2%, contrasting with a 4.3% increase in the Zacks S&P 500 composite [2] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [2]

Financial Performance - Net sales for the 12 weeks ended September 7, 2024, were $18,551.5 million, an increase from $18,290.7 million for the same period in 2023, representing a growth of 1.4%[9] - Gross margin for the 12 weeks ended September 7, 2024, was $5,121.3 million, compared to $5,041.5 million in the prior year, reflecting an increase of 1.6%[9] - Operating income decreased to $292.0 million for the 12 weeks ended September 7, 2024, down from $454.4 million in the same period last year, a decline of 35.7%[9] - Net income for the 12 weeks ended September 7, 2024, was $145.5 million, compared to $266.9 million in the prior year, a decrease of 45.3%[9] - Basic net income per Class A common share for the 12 weeks ended September 7, 2024, was $0.25, compared to $0.46 in the prior year, a decrease of 45.7%[9] - The company reported a comprehensive income of $151.4 million for the 12 weeks ended September 7, 2024, down from $265.4 million in the same period last year[9] - Adjusted net income reached $301 million, or $0.51 per Class A common share, with an Adjusted EBITDA of $901 million[99] - Net income for the second quarter of fiscal 2024 was $146 million, or $0.25 per Class A common share, compared to $266.9 million, or $0.46 per Class A common share in the same period last year[99] Assets and Liabilities - Total current assets increased to $6,646.6 million as of September 7, 2024, from $6,287.5 million as of February 24, 2024, an increase of 5.7%[6] - Total liabilities increased to $23,508.1 million as of September 7, 2024, compared to $23,473.9 million as of February 24, 2024, a rise of 0.1%[6] - Total stockholders' equity increased to $3,020.3 million as of September 7, 2024, from $2,747.5 million as of February 24, 2024, an increase of 9.9%[6] - Total assets increased to $26,528.4 million as of September 7, 2024, from $26,221.1 million as of February 24, 2024[6] - The fair value of total debt as of September 7, 2024, was $7,411.9 million, compared to a carrying value of $7,533.8 million[53] - The company's long-term debt as of September 7, 2024, was $7,908.4 million, with senior unsecured notes due between 2026 and 2030 totaling $6,512.0 million[57] Cash Flow - The company generated net cash provided by operating activities of $1,374.1 million for the 28 weeks ended September 7, 2024, compared to $1,347.9 million for the same period in 2023, an increase of 1.9%[13] - Cash and cash equivalents at the end of the period were $284.2 million, up from $270.5 million in the prior year, an increase of 5.5%[13] - Net cash used in investing activities was $925.3 million for the first 28 weeks of fiscal 2024, compared to $890.1 million for the same period in fiscal 2023[13] - Net cash used in financing activities decreased to $357.8 million in the first 28 weeks of fiscal 2024 from $651.1 million in the same period of fiscal 2023[13] Sales and Revenue Composition - Non-perishables accounted for 49.9% of total revenue for the 12 weeks ended September 7, 2024, while fresh products contributed 31.9%[40] - Pharmacy sales increased to $2,132.0 million, representing 11.5% of total revenue for the 12 weeks ended September 7, 2024, compared to 9.5% in the prior year[40] - Fuel sales decreased to $951.3 million, representing 5.2% of total sales, down from 6.1% at $1,126.8 million in the previous year[40] - Identical sales increased by 2.5% year-over-year, while digital sales surged by 24%[99] Merger and Legal Matters - 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 has extended the original outside date for the merger to October 9, 2024, with a termination fee of $600 million if the agreement is terminated[44] - The FTC has initiated proceedings to prohibit the merger, with ongoing legal challenges from multiple states[45] - The company is subject to various claims and lawsuits, including those related to trade practices and employment issues, but management believes these will not materially affect its financial condition[64] - The Company is facing allegations of FCA damages exceeding $100 million in ongoing litigation, with the Supreme Court's recent ruling adversely affecting its position[70] Operational Metrics - The company operated 2,267 stores as of September 7, 2024, down from 2,272 stores a year earlier[102] - The company has 285,000 employees serving an average of 36.8 million customers each week[96] - The company operates 1,726 pharmacies and 1,330 in-store branded coffee shops[96] Tax and Accounting - The effective tax rate for the 12 weeks ended September 7, 2024, was 22.0%, compared to 20.2% for the same period in 2023[27] - The company is evaluating the impact of recently issued accounting standards on its financial statements, effective for fiscal years beginning after December 15, 2023[36][37]

[Executive Summary & Business Update](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Update) This section provides an overview of Albertsons Companies' Q2 FY24 financial performance, strategic achievements, and future operational outlook [Second Quarter Fiscal 2024 Highlights](index=1&type=section&id=Second%20Quarter%20Fiscal%202024%20Highlights) Albertsons Companies reported a 2.5% increase in identical sales, a 24% rise in digital sales, and a 15% growth in loyalty members for Q2 FY24, achieving $146 million in net income, $301 million in adjusted net income, and $901 million in adjusted EBITDA Key Financial Highlights | Metric | Value | | :-------------------- | :------------------- | | Identical sales | Increased 2.5% | | Digital sales | Increased 24% | | Loyalty members | Increased 15% to 43.0 million | | Net income | $146 million | | Net income per share | $0.25 | | Adjusted net income | $301 million | | Adjusted net income per share | $0.51 | | Adjusted EBITDA | $901 million | [CEO Commentary and Outlook](index=1&type=section&id=CEO%20Commentary%20and%20Outlook) CEO Vivek Sankaran highlighted the success of the "Customers for Life strategy" in driving digital sales, pharmacy growth, and loyalty, while anticipating future headwinds from wage/benefit investments, lower-margin business mix, and competition, partially offset by productivity initiatives - Investments in the "Customers for Life strategy" continued to drive **strong growth** in digital sales and pharmacy operations[2](index=2&type=chunk) - **Strong year-over-year growth** in loyalty members and omnichannel shoppers, and **accelerated growth** in Albertsons Media Collective[2](index=2&type=chunk) - **Expected headwinds** for the balance of fiscal 2024 include investments in associate wages and benefits, an increasing mix of **lower-margin** pharmacy and digital businesses, and an **increasingly competitive backdrop**, though these are expected to be **partially offset by ongoing and new productivity initiatives**[2](index=2&type=chunk) [Second Quarter Fiscal 2024 Financial Performance](index=1&type=section&id=Second%20Quarter%20Fiscal%202024%20Financial%20Performance) This section details Albertsons Companies' Q2 FY24 financial results, including net sales, gross margin, operating expenses, and key profitability metrics [Net Sales and Other Revenue](index=1&type=section&id=Net%20Sales%20and%20Other%20Revenue) Net sales and other revenue increased to $18.6 billion in Q2 FY24 from $18.3 billion in Q2 FY23, primarily driven by a 2.5% increase in identical sales, particularly strong pharmacy sales, and a 24% rise in digital sales, partially offset by lower fuel sales Net Sales and Other Revenue Overview | Metric | Q2 FY24 (12 weeks ended Sep 7, 2024) | Q2 FY23 (12 weeks ended Sep 9, 2023) | Change | | :----- | :----------------------------------- | :----------------------------------- | :----- | | Amount | $18.6 billion | $18.3 billion | +$0.3 billion | - The increase was driven by a **2.5% increase in identical sales**, with **strong growth in pharmacy sales**[3](index=3&type=chunk) - Digital sales **increased 24%** during the second quarter of fiscal 2024, partially offset by **lower fuel sales**[3](index=3&type=chunk) [Gross Margin Analysis](index=1&type=section&id=Gross%20Margin%20Analysis) The reported gross margin rate remained flat at 27.6% for both Q2 FY24 and Q2 FY23, though it decreased by 44 basis points excluding fuel and LIFO expense, mainly due to lower-margin pharmacy sales and increased digital picking/delivery costs Gross Margin Rate | Metric | Q2 FY24 | Q2 FY23 | | :----------- | :------ | :------ | | Gross margin rate | 27.6% | 27.6% | - Excluding the impact of fuel and LIFO expense, gross margin rate **decreased 44 basis points** compared to the second quarter of fiscal 2023[4](index=4&type=chunk) - Primary drivers of the decrease were **strong growth in pharmacy sales** (lower gross margin rate) and **increases in picking and delivery costs** related to digital sales growth, partially offset by **procurement and sourcing productivity initiatives**[4](index=4&type=chunk) [Selling and Administrative Expenses](index=1&type=section&id=Selling%20and%20Administrative%20Expenses) Selling and administrative expenses increased to 25.8% of Net sales and other revenue in Q2 FY24, rising 41 basis points excluding fuel, primarily due to digital/omnichannel investments, merger costs, higher employee costs, and security services Selling and Administrative Expenses as Percentage of Revenue | Metric | Q2 FY24 | Q2 FY23 | | :------------------------------------ | :------ | :------ | | Selling and administrative expenses (% of Net sales and other revenue) | 25.8% | 25.1% | - Excluding the impact of fuel, Selling and administrative expenses as a percentage of Net sales and other revenue **increased 41 basis points**[4](index=4&type=chunk) - The increase was primarily attributable to operating expenses for digital and omnichannel capabilities, Merger-related costs, **higher employee costs**, business transformation costs, and additional third-party store security services, **partially offset by productivity benefits**[5](index=5&type=chunk) [Property Dispositions and Impairment Losses](index=2&type=section&id=Property%20Dispositions%20and%20Impairment%20Losses) The company reported a net loss on property dispositions and impairment losses of $43.9 million in Q2 FY24, a significant shift from a net gain in Q2 FY23, driven by micro-fulfillment center and retail store impairments Net Loss (Gain) on Property Dispositions and Impairment Losses | Metric | Q2 FY24 | Q2 FY23 | | :------------------------------------------ | :-------------- | :-------------- | | Net loss (gain) on property dispositions and impairment losses | $43.9 million (loss) | $8.4 million (gain) | - The net loss was primarily due to impairment losses of **$39.8 million** related to equipment from micro-fulfillment center closings and **$13.5 million** of retail store impairment losses[5](index=5&type=chunk) - Partially offset by **$9.4 million of gains** from the sale of real estate assets[5](index=5&type=chunk) [Interest and Other Expenses](index=2&type=section&id=Interest%20and%20Other%20Expenses) Interest expense, net, decreased to $103.6 million in Q2 FY24 from $111.9 million in Q2 FY23 due to lower average outstanding borrowings, with other expense, net, also significantly decreasing Interest and Other Expenses | Metric | Q2 FY24 | Q2 FY23 | Change | | :------------------ | :-------------- | :-------------- | :------------- | | Interest expense, net | $103.6 million | $111.9 million | -$8.3 million | | Other expense, net | $1.9 million | $8.1 million | -$6.2 million | - The decrease in interest expense, net, was primarily attributable to **lower average outstanding borrowings**[6](index=6&type=chunk) [Income Tax Expense](index=2&type=section&id=Income%20Tax%20Expense) Income tax expense for Q2 FY24 was $41.0 million, with an effective tax rate of 22.0%, down from $67.5 million and a 20.2% effective tax rate in Q2 FY23 Income Tax Expense and Effective Tax Rate | Metric | Q2 FY24 | Q2 FY23 | | :----------------- | :-------------- | :-------------- | | Income tax expense | $41.0 million | $67.5 million | | Effective tax rate | 22.0% | 20.2% | [Net Income and Earnings Per Share (GAAP)](index=2&type=section&id=Net%20Income%20and%20Earnings%20Per%20Share%20(GAAP)) Net income for Q2 FY24 significantly decreased to $145.5 million, or $0.25 per share, compared to $266.9 million, or $0.46 per share, in Q2 FY23 GAAP Net Income and Earnings Per Share | Metric | Q2 FY24 | Q2 FY23 | Change | | :-------------------- | :-------------- | :-------------- | :-------------- | | Net income | $145.5 million | $266.9 million | -$121.4 million | | Net income per share | $0.25 | $0.46 | -$0.21 | [Adjusted Net Income and Earnings Per Share (Non-GAAP)](index=2&type=section&id=Adjusted%20Net%20Income%20and%20Earnings%20Per%20Share%20(Non-GAAP)) Adjusted net income for Q2 FY24 was $301.0 million, or $0.51 per share, a decrease from $367.7 million, or $0.63 per share, in Q2 FY23 Adjusted Net Income and Earnings Per Share (Non-GAAP) | Metric | Q2 FY24 | Q2 FY23 | Change | | :-------------------- | :-------------- | :-------------- | :-------------- | | Adjusted net income | $301.0 million | $367.7 million | -$66.7 million | | Adjusted net income per share | $0.51 | $0.63 | -$0.12 | [Adjusted EBITDA (Non-GAAP)](index=2&type=section&id=Adjusted%20EBITDA%20(Non-GAAP)) Adjusted EBITDA for Q2 FY24 was $900.6 million, representing 4.9% of Net sales and other revenue, down from $976.9 million, or 5.3% of Net sales and other revenue, in Q2 FY23 Adjusted EBITDA (Non-GAAP) | Metric | Q2 FY24 | Q2 FY23 | Change | | :-------------------- | :-------------- | :-------------- | :-------------- | | Adjusted EBITDA | $900.6 million | $976.9 million | -$76.3 million | | % of Net sales and other revenue | 4.9% | 5.3% | -0.4% | [Operational and Corporate Developments](index=2&type=section&id=Operational%20and%20Corporate%20Developments) This section outlines Albertsons Companies' capital investments, the ongoing merger agreement with Kroger, and its operational profile and community contributions [Capital Expenditures](index=2&type=section&id=Capital%20Expenditures) For the first 28 weeks of fiscal 2024, capital expenditures totaled $952.3 million, primarily allocated to completing 44 remodels, opening two new stores, and ongoing investments in digital and technology platforms - Capital expenditures were **$952.3 million** during the first 28 weeks of fiscal 2024[8](index=8&type=chunk) - Investments primarily included the completion of **44 remodels**, the opening of **two new stores**, and continued investment in digital and technology platforms[8](index=8&type=chunk) [Merger Agreement with The Kroger Company](index=2&type=section&id=Merger%20Agreement%20with%20The%20Kroger%20Company) Albertsons Companies announced on October 13, 2022, an Agreement and Plan of Merger with The Kroger Company, under which Kroger will acquire all outstanding shares of Albertsons' common stock, subject to regulatory approval - On **October 13, 2022**, the Company entered into a Merger Agreement with The Kroger Company[9](index=9&type=chunk) - Under the terms, Kroger will acquire **all outstanding shares** of the Company's common stock, subject to regulatory approval[9](index=9&type=chunk) [Company Profile and Operations](index=2&type=section&id=Company%20Profile%20and%20Operations) Albertsons Companies is a leading US food and drug retailer, operating 2,267 retail food and drug stores, 1,726 pharmacies, 405 fuel centers, 22 distribution centers, and 19 manufacturing facilities across 34 states and D.C. under over 20 banners [Business Overview](index=2&type=section&id=Business%20Overview) Albertsons Companies is a leading US food and drug retailer, operating 2,267 retail food and drug stores, 1,726 pharmacies, 405 fuel centers, 22 distribution centers, and 19 manufacturing facilities across 34 states and D.C. under over 20 banners - Albertsons Companies is a **leading food and drug retailer** in the United States[10](index=10&type=chunk) Operational Footprint | Metric (as of Sep 7, 2024) | Count | | :------------------------- | :---- | | Retail food and drug stores | 2,267 | | Pharmacies | 1,726 | | Associated fuel centers | 405 | | Dedicated distribution centers | 22 | | Manufacturing facilities | 19 | - The Company operates stores across **34 states and the District of Columbia** under **more than 20 well-known banners**[10](index=10&type=chunk) [Community Engagement](index=3&type=section&id=Community%20Engagement) In 2023, Albertsons Companies, along with its Foundation, contributed over $350 million in food and financial support, including more than $35 million through its Nourishing Neighbors Program, to support communities and disaster relief efforts - In 2023, along with the Albertsons Companies Foundation, the Company contributed **more than $350 million** in food and financial support[11](index=11&type=chunk) - **More than $35 million** was contributed through the Nourishing Neighbors Program to ensure those living in communities and those impacted by disasters have enough to eat[11](index=11&type=chunk) [Legal and Disclosure Information](index=3&type=section&id=Legal%20and%20Disclosure%20Information) This section addresses forward-looking statements, key risk factors, and important disclosure information regarding the company and its merger [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The press release contains forward-looking statements regarding the company's business, industry, and the outcome of the Merger, identifiable by terms like "outlook," "expects," and "intends," which are not guarantees of future performance and are subject to numerous risks and uncertainties - This press release includes "forward-looking statements" about the business, industry, and the outcome of the Merger[12](index=12&type=chunk) - Forward-looking statements are identifiable by words such as "outlook," "may," "should," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future" and "intends"[12](index=12&type=chunk) - These statements are **not guarantees of future performance** and are subject to **numerous risks and uncertainties** beyond control that could cause actual results to differ materially[13](index=13&type=chunk) [Risk Factors](index=3&type=section&id=Risk%20Factors) Key risks include uncertainties related to closing the Merger (regulatory approval, legal actions, consumer confidence erosion, operational restrictions, employee retention challenges), macroeconomic conditions (inflation/deflation, fuel prices, student loan deferments), failure to achieve productivity, supply chain issues, cyber incidents, and changes in tax laws - Risks include uncertainties related to the ability to close the Merger, including resolution of pending legal actions and regulatory approval[13](index=13&type=chunk) - Challenges in retaining and motivating associates until the closing of the Merger and difficulties in attracting new employees[13](index=13&type=chunk) - Changes in macroeconomic conditions such as rates of food price inflation or deflation, fuel and commodity prices, and expiration of student loan payment deferments[13](index=13&type=chunk) - Operational and financial effects resulting from cyber incidents at the Company or at a third party[13](index=13&type=chunk) [Additional Information](index=4&type=section&id=Additional%20Information) The company has filed a definitive information statement on Schedule 14C with the SEC regarding the Merger approval, which is available free of charge on the SEC's website (www.sec.gov) or the company's investor relations website - The Company has filed with the SEC a **definitive information statement on Schedule 14C** with respect to the approval of the Merger[16](index=16&type=chunk) - Copies of all documents filed by the Company with the SEC regarding this transaction are available **free of charge** at www.sec.gov or from the Company's website at https://www.albertsonscompanies.com/investors/overview/[16](index=16&type=chunk) [Non-GAAP Measures and Key Definitions](index=4&type=section&id=Non-GAAP%20Measures%20and%20Key%20Definitions) This section defines the company's key Non-GAAP financial measures and the methodology for calculating identical sales [Non-GAAP Measures Definition](index=4&type=section&id=Non-GAAP%20Measures%20Definition) The company uses Non-GAAP Measures (EBITDA, Adjusted EBITDA, Adjusted net income, Adjusted net income per Class A common share, and Net debt ratio) to provide supplemental information for evaluating ongoing operations, excluding items management does not consider core, though these measures may not be comparable to those of other companies - Non-GAAP Measures include **EBITDA, Adjusted EBITDA, Adjusted net income, Adjusted net income per Class A common share and Net debt ratio**[17](index=17&type=chunk) - These measures provide supplemental information useful to analysts and investors to evaluate ongoing results of operations, excluding financial impact of items management does not consider in assessing core operating performance[17](index=17&type=chunk) - Other companies may have **different definitions** of Non-GAAP Measures, impacting comparability[17](index=17&type=chunk) [Identical Sales Definition](index=4&type=section&id=Identical%20Sales%20Definition) "Identical sales" refers to sales from stores operating during the same period in both the current and prior fiscal years, compared on a daily basis, including direct-to-consumer digital sales but excluding fuel sales - The term "identical sales" includes stores operating during the same period in both the current fiscal year and the prior fiscal year, comparing sales on a daily basis[18](index=18&type=chunk) - Direct to consumer digital sales are included in identical sales, and fuel sales are excluded[18](index=18&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the condensed consolidated statements of operations, balance sheets, and cash flows for the reported periods [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations show a decrease in net income for both the 12-week and 28-week periods ending September 7, 2024, compared to the prior year, despite a slight increase in net sales and other revenue, with operating income also declining significantly Condensed Consolidated Statements of Operations (Selected Data) | Metric (in millions, except per share) | 12 weeks ended Sep 7, 2024 | 12 weeks ended Sep 9, 2023 | 28 weeks ended Sep 7, 2024 | 28 weeks ended Sep 9, 2023 | | :------------------------------------- | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | Net sales and other revenue | $18,551.5 | $18,290.7 | $42,816.9 | $42,340.9 | | Gross margin | $5,121.3 | $5,041.5 | $11,860.2 | $11,704.2 | | Operating income | $292.0 | $454.4 | $751.6 | $1,076.6 | | Net income | $145.5 | $266.9 | $386.2 | $684.1 | | Basic net income per Class A common share | $0.25 | $0.46 | $0.67 | $1.19 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 7, 2024, total assets increased to $26,528.4 million from $26,221.1 million at February 24, 2024, driven by increases in cash and cash equivalents, receivables, and inventories, while total liabilities remained relatively stable and total stockholders' equity increased Condensed Consolidated Balance Sheets (Selected Data) | Metric (in millions) | September 7, 2024 | February 24, 2024 | | :------------------- | :---------------- | :---------------- | | Total current assets | $6,646.6 | $6,287.5 | | Total assets | $26,528.4 | $26,221.1 | | Total current liabilities | $7,422.4 | $7,457.7 | | Total liabilities and stockholders' equity | $26,528.4 | $26,221.1 | - Cash and cash equivalents increased from **$188.7 million to $280.0 million**[23](index=23&type=chunk) - Total stockholders' equity increased from **$2,747.5 million to $3,020.3 million**[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first 28 weeks of fiscal 2024, net cash provided by operating activities slightly increased to $1,374.1 million from $1,347.9 million in the prior year, while net cash used in investing activities increased to $925.3 million, and net cash used in financing activities decreased significantly to $357.8 million Condensed Consolidated Statements of Cash Flows (Selected Data) | Metric (in millions) | 28 weeks ended Sep 7, 2024 | 28 weeks ended Sep 9, 2023 | | :---------------------------------------------------------------- | :------------------------- | :------------------------- | | Net cash provided by operating activities | $1,374.1 | $1,347.9 | | Net cash used in investing activities | $(925.3) | $(890.1) | | Net cash used in financing activities | $(357.8) | $(651.1) | | Net increase (decrease) in cash and cash equivalents and restricted cash | $91.0 | $(193.3) | - Payments for property, equipment and intangibles, including lease buyouts, decreased from **$1,084.3 million to $952.3 million**[25](index=25&type=chunk) - Payments on long-term borrowings, including ABL facility, decreased from **$500.5 million to $200.4 million**[25](index=25&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of GAAP net income to Adjusted net income, Adjusted EBITDA, and the Net Debt Ratio [Reconciliation of Net Income to Adjusted Net Income and EPS](index=8&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income%20and%20EPS) The reconciliation shows that Adjusted net income for Q2 FY24 was $301.0 million ($0.51 per share), compared to GAAP net income of $145.5 million ($0.25 per share), with key adjustments including merger-related costs, loss on property dispositions, business transformation costs, and equity-based compensation Reconciliation of Net Income to Adjusted Net Income (Selected Adjustments, in millions) | Adjustment Category | 12 weeks ended Sep 7, 2024 | 12 weeks ended Sep 9, 2023 | | :------------------ | :------------------------- | :------------------------- | | Net income | $145.5 | $266.9 | | Merger-related costs | $67.4 | $41.2 | | Loss (gain) on property dispositions and impairment losses, net | $43.9 | $(8.4) | | Business transformation | $20.5 | $13.5 | | Equity-based compensation expense | $29.5 | $25.3 | | Adjusted net income | $301.0 | $367.7 | Adjusted Net Income Per Class A Common Share - Diluted | Metric | 12 weeks ended Sep 7, 2024 | 12 weeks ended Sep 9, 2023 | | :----- | :------------------------- | :------------------------- | | Adjusted net income per Class A common share - diluted | $0.51 | $0.63 | [Reconciliation of Adjusted Net Income to Adjusted EBITDA](index=9&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Income%20to%20Adjusted%20EBITDA) Adjusted EBITDA for Q2 FY24 was $900.6 million, reconciled from Adjusted net income of $301.0 million by adding back tax impact of adjustments, income tax expense, interest expense, and depreciation and amortization, while subtracting certain non-cash items Reconciliation of Adjusted Net Income to Adjusted EBITDA (in millions) | Metric | 12 weeks ended Sep 7, 2024 | 12 weeks ended Sep 9, 2023 | 28 weeks ended Sep 7, 2024 | 28 weeks ended Sep 9, 2023 | | :------------------------------------------------ | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | Adjusted net income | $301.0 | $367.7 | $692.6 | $913.4 | | Tax impact of adjustments to Adjusted net income | $47.8 | $29.9 | $92.8 | $71.2 | | Income tax expense | $41.0 | $67.5 | $110.2 | $133.6 | | Interest expense, net | $103.6 | $111.9 | $249.3 | $266.8 | | Depreciation and amortization | $421.9 | $414.6 | $973.9 | $945.2 | | Adjusted EBITDA | $900.6 | $976.9 | $2,084.5 | $2,295.4 | [Reconciliation of Net Debt Ratio](index=12&type=section&id=Reconciliation%20of%20Net%20Debt%20Ratio) The Net Debt Ratio as of September 7, 2024, was 1.86, calculated from total debt net of cash and cash equivalents of $7,628.4 million and rolling four quarters Adjusted EBITDA of $4,106.8 million, representing a slight increase from 1.82 in the prior year Net Debt Ratio Reconciliation (in millions) | Metric | September 7, 2024 | September 9, 2023 | | :------------------------------------ | :---------------- | :---------------- | | Total debt (including finance leases) | $7,908.4 | $8,449.6 | | Cash and cash equivalents | $280.0 | $266.1 | | Total debt net of cash and cash equivalents | $7,628.4 | $8,183.5 | | Rolling four quarters Adjusted EBITDA | $4,106.8 | $4,503.6 | | Total Net Debt Ratio | 1.86 | 1.82 | [Reconciliation of Net Income to Adjusted EBITDA (Rolling Four Quarters)](index=12&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA%20(Rolling%20Four%20Quarters)) The rolling four quarters Adjusted EBITDA was $4,106.8 million as of September 7, 2024, a decrease from $4,503.6 million as of September 9, 2023, providing a comprehensive view of EBITDA adjustments over a longer period Reconciliation of Net Income to Adjusted EBITDA (Rolling Four Quarters, in millions) | Metric | Rolling four quarters ended Sep 7, 2024 | Rolling four quarters ended Sep 9, 2023 | | :-------------------------------------- | :-------------------------------------- | :-------------------------------------- | | Adjusted EBITDA | $4,106.8 | $4,503.6 | - Key adjustments include business transformation, equity-based compensation, loss (gain) on property dispositions and impairment losses, LIFO expense, merger-related costs, and certain legal and regulatory accruals and settlements[41](index=41&type=chunk)

Core Insights - Albertsons Companies, Inc. (ACI) is expected to report quarterly earnings of $0.48 per share, reflecting a year-over-year decline of 23.8% [1] - Revenue projections stand at $18.47 billion, indicating a 1% increase from the same quarter last year [1] - Analysts have revised their consensus EPS estimate upward by 2.7% over the past 30 days, indicating a reassessment of initial projections [1] Revenue and Key Metrics - Analysts estimate 'Revenues- Fuel' to be $1.09 billion, which represents a year-over-year decline of 3.3% [2] - The expected 'Number of stores at end of quarter' is 2,269, down from 2,272 reported in the same quarter last year [2] - 'Total Square Footage - Retail Square Feet' is forecasted to reach 112.78 million, slightly lower than the 112.9 million reported in the same quarter last year [2] Stock Performance - Albertsons Companies shares have decreased by 0.5% over the past month, contrasting with a 5.9% increase in the Zacks S&P 500 composite [3] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [3]

I am initiating my coverage of ACI Worldwide (NASDAQ: ACIW ) with a ‘Buy’ rating for long-term investors primarily due to their mature business model, expanding margins, and modest relative valuation despite 100%+ appreciation in their stock price over the last year.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinion ...

Investors like to think of themselves as rational and unattached. Still, the movement of stock prices shows that this isn’t always true — and the existence of technical signals like oversold or undersold confirms that fact. Sometimes, investors let emotions get the best of them and stampede toward the exit following a bad earnings report, CEO departure, or product recall. However, not every negative story is a reason to sell, and investors who trust the data (while keeping a calm composure) often find the b ...

Certain stocks stand out as attractively priced and well-positioned for potential appreciation for value investors focused on long-term growth with a defensive approach. While not isolated from risks and challenges, the three companies discussed below trade at favorable valuations based on P/E ratios and earnings growth and offer the added benefit of dividend income, making them appealing to those seeking steady returns and compounding growth. So, let's explore three defensive stocks that present potential ...

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:Albertsons Companies, Inc. (ACI) is an operator of food and drug stores. The Zacks Consensus Estimate for its current year earnings has been revised 5.1% downward over the last 60 days.Amkor Technology, Inc. (AMKR) is a semiconductor packaging and test services outsourcer. The Zacks Consensus Estimate for its current year earnings has been revised 12.5% downward over the last 60 days.ArcBest Corporation (ARCB) is a freight transportat ...