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SpartanNash(SPTN) - 2024 Q4 - Annual Results
SPTNSpartanNash(SPTN)2025-02-12 12:00

Financial Performance - Net sales for Q4 2024 increased by 0.7% to 2.26billion,withRetailsegmentsalesup7.72.26 billion, with Retail segment sales up 7.7% to 697.1 million, while Wholesale segment sales decreased by 2.1% to 1.56billion[5].−Thecompanyreportedanetlossof1.56 billion[5]. - The company reported a net loss of 1.04 per diluted share, a decrease from net earnings of 0.30perdilutedshareinthepreviousyear,impactedbya0.30 per diluted share in the previous year, impacted by a 45.7 million goodwill write-off[5]. - Adjusted EBITDA for Q4 2024 was 58.6million,upfrom58.6 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 9.55billion,withWholesalesegmentsalesdown3.09.55 billion, with Wholesale segment sales down 3.0% to 6.71 billion, while Retail segment sales increased by 1.1% to 2.84billion[5].−Forthe12weeksendedDecember28,2024,thecompanyreportedanetlossof2.84 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 10,305,000forthesameperiodin2023[30].−Forthe52weeksendedDecember28,2024,adjustedearningsfromcontinuingoperationswere10,305,000 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 2.03perdilutedshare,comparedto2.03 per diluted share, compared to 76,012,000, or 2.18perdilutedshare,forthepreviousyear[35].CashFlowandDebt−Cashgeneratedfromoperatingactivitiesincreasedby130.52.18 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,withnetlong−termdebtamountingto753,807,000, 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,upfrom740,969, up from 588,667, representing a 25.9% increase[17]. Future Projections - For fiscal 2025, the company projects total net sales between 9.8billionand9.8 billion and 10.0 billion, with adjusted EBITDA expected to range from 263millionto263 million to 278 million[6]. - Adjusted EPS guidance for fiscal 2025 is projected between 1.60and1.60 and 1.85, reflecting an approximate 0.30impactfromincreasednon−cashexpenses[6].−Capitalexpendituresforfiscal2025areexpectedtobebetween0.30 impact from increased non-cash expenses[6]. - Capital expenditures for fiscal 2025 are expected to be between 150 million and 165million,incorporatinginvestmentsfromthecompany′sstrategicinitiatives[6].SegmentPerformance−Wholesalesegmentnetsalesforthe52weeksendedDecember28,2024,were165 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 6,919,217intheprioryear[21].−Retailsegmentnetsalesincreasedto6,919,217 in the prior year[21]. - Retail segment net sales increased to 2,840,019, up 1.1% from 2,810,002year−over−year[21].−Operatinglossforthetotalsegmentwas2,810,002 year-over-year[21]. - Operating loss for the total segment was 27,700 compared to operating earnings of 23,542intheprioryear,indicatingasignificantdecline[21].−Operatingearningsinthewholesalesegmentforthe12weeksendedDecember28,2024,were23,542 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 21,681,000inthesameperiodlastyear[30].−Theretailsegmentreportedanoperatinglossof21,681,000 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 1,861,000intheprioryear[30].AssetandLiabilityManagement−Totalassetsincreasedto1,861,000 in the prior year[30]. Asset and Liability Management - Total assets increased to 2,602,296, up from 2,355,575,representingagrowthof10.52,355,575, representing a growth of 10.5% year-over-year[17]. - Total liabilities rose to 1,858,806, an increase of 20.5% from 1,576,393inthepreviousyear[17].−Cashandcashequivalentsattheendoftheperiodincreasedto1,576,393 in the previous year[17]. - Cash and cash equivalents at the end of the period increased to 21,570 from 17,964,reflectinga20.517,964, 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 17,510,000onOctober5,2024[38].CapitalExpenditures−CapitalexpendituresandITcapitalforthe52weeksendedDecember28,2024,totaled17,510,000 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 127,370,000forthesameperiodin2023,representingagrowthofapproximately13.4127,370,000 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 120,330,000in2023,reflectingariseofabout10.0120,330,000 in 2023, reflecting a rise of about 10.0%[41]. - Cloud computing spend rose significantly to 12,050,000 in 2024, compared to 7,040,000in2023,markinganincreaseofapproximately71.57,040,000 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 7,819,000inthesameperiodlastyear[30].−Thecompanyreportedatotalof7,819,000 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,anincreasefrom58,598,000, 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,comparedto258,486,000, compared to 253,537,000 for the previous period, showing a modest increase[38].