Core Insights - Spartan Stores reported quarterly earnings of $0.42 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and showing an increase from $0.35 per share a year ago, resulting in an earnings surprise of 44.83% [1] - The company posted revenues of $2.26 billion for the quarter ended December 2024, slightly missing the Zacks Consensus Estimate by 0.09%, and showing a year-over-year increase from $2.25 billion [2] - The stock has gained approximately 2.8% since the beginning of the year, underperforming compared to the S&P 500's gain of 3.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.52 on revenues of $2.85 billion, and for the current fiscal year, the estimate is $2 on revenues of $9.82 billion [7] - The estimate revisions trend for Spartan Stores is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Food - Natural Foods Products industry, to which Spartan Stores belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Sprouts Farmers, is expected to report quarterly earnings of $0.71 per share, reflecting a year-over-year change of +44.9%, with revenues anticipated to be $1.95 billion, up 14.8% from the previous year [9][10]

Financial Performance - Net sales for Q4 2024 increased by 0.7% to $2.26 billion, with Retail segment sales up 7.7% to $697.1 million, while Wholesale segment sales decreased by 2.1% to $1.56 billion[5]. - The company reported a net loss of $1.04 per diluted share, a decrease from net earnings of $0.30 per diluted share in the previous year, impacted by a $45.7 million goodwill write-off[5]. - Adjusted EBITDA for Q4 2024 was $58.6 million, up from $53.6 million, driven by higher gross margin rates and contributions from recently acquired retail stores[5]. - Fiscal 2024 total net sales decreased by 1.9% to $9.55 billion, with Wholesale segment sales down 3.0% to $6.71 billion, while Retail segment sales increased by 1.1% to $2.84 billion[5]. - For the 12 weeks ended December 28, 2024, the company reported a net loss of $35,081,000 compared to net earnings of $10,305,000 for the same period in 2023[30]. - For the 52 weeks ended December 28, 2024, adjusted earnings from continuing operations were $69,286,000, or $2.03 per diluted share, compared to $76,012,000, or $2.18 per diluted share, for the previous year[35]. Cash Flow and Debt - Cash generated from operating activities increased by 130.5% to $205.9 million, primarily due to working capital improvements[5]. - The net long-term debt to adjusted EBITDA ratio increased to 2.8x from 2.4x, reflecting investments in inorganic growth during Q4[5]. - The company’s total debt as of December 28, 2024, was $753,807,000, with net long-term debt amounting to $732,237,000, resulting in a net long-term debt to adjusted EBITDA ratio of 2.8[38]. - Long-term debt and finance lease liabilities increased to $740,969, up from $588,667, representing a 25.9% increase[17]. Future Projections - For fiscal 2025, the company projects total net sales between $9.8 billion and $10.0 billion, with adjusted EBITDA expected to range from $263 million to $278 million[6]. - Adjusted EPS guidance for fiscal 2025 is projected between $1.60 and $1.85, reflecting an approximate $0.30 impact from increased non-cash expenses[6]. - Capital expenditures for fiscal 2025 are expected to be between $150 million and $165 million, incorporating investments from the company's strategic initiatives[6]. Segment Performance - Wholesale segment net sales for the 52 weeks ended December 28, 2024, were $6,709,305, a decrease of 3.0% from $6,919,217 in the prior year[21]. - Retail segment net sales increased to $2,840,019, up 1.1% from $2,810,002 year-over-year[21]. - Operating loss for the total segment was $27,700 compared to operating earnings of $23,542 in the prior year, indicating a significant decline[21]. - Operating earnings in the wholesale segment for the 12 weeks ended December 28, 2024, were $18,300,000, down from $21,681,000 in the same period last year[30]. - The retail segment reported an operating loss of $46,000,000 for the 12 weeks ended December 28, 2024, compared to operating earnings of $1,861,000 in the prior year[30]. Asset and Liability Management - Total assets increased to $2,602,296, up from $2,355,575, representing a growth of 10.5% year-over-year[17]. - Total liabilities rose to $1,858,806, an increase of 20.5% from $1,576,393 in the previous year[17]. - Cash and cash equivalents at the end of the period increased to $21,570 from $17,964, reflecting a 20.5% rise[19]. - The company’s cash and cash equivalents were $21,570,000 as of December 28, 2024, indicating a slight increase from $17,510,000 on October 5, 2024[38]. Capital Expenditures - Capital expenditures and IT capital for the 52 weeks ended December 28, 2024, totaled $144,444,000, an increase from $127,370,000 for the same period in 2023, representing a growth of approximately 13.4%[41]. - Purchases of property and equipment increased to $132,394,000 in 2024 from $120,330,000 in 2023, reflecting a rise of about 10.0%[41]. - Cloud computing spend rose significantly to $12,050,000 in 2024, compared to $7,040,000 in 2023, marking an increase of approximately 71.5%[41]. Adjustments and Impairments - The company incurred restructuring and goodwill/asset impairment costs of $56,835,000 for the 12 weeks ended December 28, 2024, compared to $7,819,000 in the same period last year[30]. - The company reported a total of $83,207,000 in adjustments for the 52 weeks ended December 28, 2024, which included various non-cash items and restructuring costs[35]. - The company anticipates potential adjustments in fiscal 2025 related to restructuring and acquisition costs, which may significantly impact GAAP financial results[27]. Performance Metrics - Adjusted EBITDA measures are used to assess overall performance and are important for resource allocation and peer comparison[22]. - Adjusted EBITDA for the 12 weeks ended December 28, 2024, was $58,598,000, an increase from $53,649,000 in the prior year, reflecting a growth of approximately 1.76%[30]. - The company’s adjusted EBITDA for the rolling 52 weeks ended December 28, 2024, was $258,486,000, compared to $253,537,000 for the previous period, showing a modest increase[38].

Core Insights - SpartanNash reported significant growth in adjusted EBITDA for the fourth quarter of fiscal 2024, marking the third consecutive year of record performance, driven by margin-enhancing programs and strategic acquisitions [2][3][4] - The company is optimistic about its fiscal 2025 outlook, projecting total net sales between $9.8 billion and $10 billion, with adjusted EBITDA expected to range from $263 million to $278 million [7][9] Fiscal 2024 Highlights - Total net sales for fiscal 2024 decreased by 1.9% to $9.55 billion, with the wholesale segment net sales down 3.0% to $6.71 billion, while retail segment net sales increased by 1.1% to $2.84 billion [8][19] - The company reported a net loss of $35.1 million, or $1.04 per diluted share, compared to net earnings of $10.3 million, or $0.30 per diluted share in the previous year [15][28] - Adjusted EPS for fiscal 2024 was $2.03, down from $2.18 in fiscal 2023, while adjusted EBITDA increased slightly to $258.5 million from $257.4 million [8][28] Fourth Quarter Fiscal 2024 Highlights - In the fourth quarter, net sales increased by 0.7% to $2.26 billion, with retail segment sales rising by 7.7% to $697.1 million, despite a 0.7% decline in comparable store sales [8][19] - The wholesale segment experienced a 2.1% decline in net sales, primarily due to reduced case volumes [8][19] - Adjusted EBITDA for the fourth quarter was $58.6 million, up from $53.6 million, attributed to higher gross margin rates and contributions from recently acquired retail stores [8][19] Cash Flow and Capital Expenditures - Cash generated from operating activities increased by 130.5% to $205.9 million, primarily due to working capital improvements [8][18] - Capital expenditures and IT capital for the year totaled $144.4 million, compared to $127.4 million in the previous year [8][34] Debt and Shareholder Returns - The net long-term debt to adjusted EBITDA ratio increased to 2.8x from 2.4x, reflecting investments in inorganic growth [8][32] - The company returned $45 million to shareholders through share repurchases and dividends [8][18]

GRAND RAPIDS, Mich., Jan. 29, 2025 /PRNewswire/ -- Food solutions company SpartanNash (the "Company") (Nasdaq: SPTN) will announce its financial results before the stock market opens on Wednesday, Feb. 12, 2025, for the 12-week fourth quarter and 52-week fiscal year ended Dec. 28, 2024.  The Company will host a conference call to discuss its quarterly results with additional comments and details on Wednesday, Feb. 12, 2025, at 8:30 a.m. ET. There will also be a simultaneous, live webcast made available on S ...

Food solutions company sends six truckloads of donated product and launches fundraiser for the American Red CrossGRAND RAPIDS, Mich., Jan. 13, 2025 /PRNewswire/ -- Food solutions company SpartanNash® (the "Company") (Nasdaq: SPTN) today announced its latest disaster relief efforts to support residents of Greater Los Angeles affected by the devastating wildfires. As part of its response, SpartanNash has already donated six truckloads of essential products, including bottled water, ready-to-eat snacks and per ...

Community members teamed with SpartanNash Foundation to donate $565,000—or about 204,000 meals—this holiday seasonGRAND RAPIDS, Mich., Dec. 18, 2024 /PRNewswire/ -- Food solutions company SpartanNash® (the "Company") (Nasdaq: SPTN) and the SpartanNash Foundation® achieved a record-breaking donation following their eighth annual in-store fundraiser supporting food pantries across the Midwest. The SpartanNash Foundation® was able to support multiple food pantries across the Midwest, including Kids Food Ba ...

Third annual Our Family® Scholarship program awards 25 $2,500 scholarships to students making a differenceGRAND RAPIDS, Mich., Dec. 16, 2024 /PRNewswire/ -- Food solutions company SpartanNash® (the "Company") (Nasdaq: SPTN) today announced the recipients of its 2024 Our Family® Scholarship. This year, the Company set a new record by awarding 25 students with $2,500 scholarships in recognition of outstanding service to their local communities. SpartanNash awarded 25 students with $2,500 scholarships in re ...

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AXFOF, SPTN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financia ...

Financial Data and Key Metrics Changes - Consolidated net sales decreased by 0.6% to $2.25 billion compared to $2.26 billion in Q3 2023 [15] - Adjusted EBITDA was $60.5 million, with an adjusted EBITDA margin of 2.7%, flat compared to the previous year [12][17] - Consolidated net earnings decreased by $200,000 to $10.9 million, while EPS remained flat at $0.32 per diluted share [17] Business Line Data and Key Metrics Changes - Wholesale segment net sales decreased by 1.6% to $1.58 billion, primarily due to reduced case volumes [18] - Retail segment sales grew by 1.9% to $675 million, driven by contributions from recently acquired Metcalfe's [20] - Comparable store sales in the Retail segment were down 0.7%, but same-store sales improved sequentially [11] Market Data and Key Metrics Changes - The grocery markets where the company operates grew only 40 basis points compared to Q3 2023, while total U.S. grocery was up about 1.1% [8] - The military channel within the Wholesale segment has seen sales growth for 11 consecutive quarters [10] Company Strategy and Development Direction - The company is focused on a "people first" culture and has improved its total retention rate by nearly 20% since launching its strategic plan [5] - Recent acquisitions, including Fresh Encounter and Markham Enterprises, are expected to enhance the company's retail footprint and fuel distribution capabilities [6][7] - The company plans to continue evaluating M&A opportunities to maximize shareholder value [7] Management's Comments on Operating Environment and Future Outlook - Management expects macroeconomic headwinds to persist into 2025, impacting previously communicated targets [9] - The company is taking a practical approach to mitigate these pressures while driving results and growing shareholder value [9] - For fiscal 2025, the company anticipates low single-digit top-line growth and mid-single-digit adjusted EBITDA growth [25] Other Important Information - The company has generated $123.3 million in cash from operating activities year-to-date, an increase of over 28% compared to the same period last year [21] - The leverage ratio of net long-term debt to adjusted EBITDA increased to 2.4 times [21] - The company updated its full-year guidance, expecting net sales to be between $9.5 billion and $9.7 billion [22] Q&A Session Summary Question: Strategic importance of the Markham acquisition in fuel distribution - Management highlighted the stability and good margins of fuel distribution, indicating plans for further expansion in this area [32][34] Question: Performance of private label products - The company reported stable performance in private label penetration, maintaining strong levels and seeing progress in premium offerings [35] Question: Timing and rationale behind recent acquisitions - Management indicated that the timing was right for both acquisitions, emphasizing long-standing relationships with the previous owners [38][39] Question: Update on Amazon Fresh business - Management noted improvements in stability but does not expect significant growth from this segment in the near future [41] Question: Consumer behavior and sales volume updates - Management observed sequential improvement in retail sales and is focusing on pricing strategies to enhance consumer value [43][45] Question: Digital capabilities and customer demand - The company is expanding its digital offerings and has seen increased interest from customers in electronic shelf labels and enhanced media [46][49] Question: Addressing industry trends and future M&A - Management is focusing on local and specialty products to meet consumer demand and is considering these factors in future acquisitions [53][54] Question: Anticipated promotional activity from CPGs - Management expects increased promotional activity and is working closely with suppliers to find effective pricing strategies [56][58]

Spartan Stores (SPTN) came out with quarterly earnings of $0.48 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.54 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this grocery store operator and grocery distributor would post earnings of $0.52 per share when it actually produced earnings of $0.59, delivering a surprise of 13.46%.Over the last four quarters, the company has surpassed consensus EPS estimates jus ...