Financial Performance - Wholesale segment net sales decreased by 209.9million,or3.06.71 billion in 2024, primarily due to lower case volumes in national accounts and independent retailers [140]. - Retail segment net sales increased by 30.0million,or1.12.84 billion in 2024, despite a 1.7% decrease in comparable store sales due to lower consumer demand trends [141]. - The Company reported adjusted EBITDA of 258.5millionforthefiscalyear,aslightincreasefrom257.4 million in the prior year [137]. - Gross profit increased by 26.9million,or1.81.51 billion, with the gross profit margin improving from 15.3% to 15.8% [143]. - Operating earnings decreased by 52.8million,or49.454.0 million, driven by changes in net sales, gross profit, and operating expenses [148]. - Adjusted earnings from continuing operations for 2024 were 69,286,000,withanadjustedEPSof2.03, down from 76,012,000and2.18 in 2023, indicating a decline of 8.3% [167]. - Net earnings for 2024 were 299,000,asignificantdecreasefrom52,237,000 in 2023, representing a decline of approximately 99.43% [173]. - Adjusted EBITDA for 2024 was 258,486,000,slightlyupfrom257,401,000 in 2023, indicating a growth of about 0.42% [173]. Expenses and Impairments - Selling, general and administrative expenses rose by 15.1million,or1.11.38 billion, increasing as a percentage of net sales from 14.0% to 14.5% [144]. - The Company incurred 45.7millioningoodwillimpairmentchargeswithintheRetailsegmentduetocompetitivepressuresimpactingcashflowtrends[146].−Interestexpenseincreasedby4.9 million, or 12.4%, to 44.8million,attributedtoahigheraveragedebtbalance,withtotaldebtrisingto753.8 million [151]. - The effective income tax rate for 2024 was 97.3%, significantly higher than 25.5% in 2023, primarily due to non-deductible goodwill impairment and state taxes [152]. - Restructuring and goodwill/asset impairment costs increased to 74,107,000in2024from9,190,000 in 2023, indicating a substantial rise of 706.5% [162]. - The company recorded non-cash goodwill impairment charges of 45.7millionrelatedtotheretailreportingunitin2024[185].−Impairmentsoflong−livedassetswere8.2 million in 2024, compared to 11.7millionin2023and5.1 million in 2022 [188]. Cash Flow and Investments - Net cash provided by operating activities increased by 116.6millionin2024comparedto2023,totaling205.9 million [196]. - Net cash used in investing activities rose by 130.5millionin2024,primarilyduetoacquisitionsintheRetailsegmentandincreasedcapitalexpenditures,totaling247.0 million [197]. - Capital expenditures for 2024 were 132.4million,with50120.3 million in the prior year [198]. Debt and Dividends - Long-term debt and finance lease liabilities increased by 156.3millionto753.8 million as of December 28, 2024, driven by additional borrowings for acquisitions and capital expenditures [200]. - The Company's current ratio was 1.57:1 at December 28, 2024, down from 1.63:1 at December 30, 2023 [202]. - Net long-term debt increased to 732.2millionasofDecember28,2024,comparedto579.5 million at December 30, 2023 [204]. - The Company declared quarterly cash dividends of 0.2175persharein2024,upfrom0.215 in 2023 [206]. Segment Performance - The company’s adjusted operating earnings for the wholesale segment in 2024 were 120,966,000,anincreaseof6.4113,384,000 in 2023 [162]. - The retail segment reported adjusted operating earnings of 17,875,000in2024,adecreaseof37.628,589,000 in 2023, indicating challenges in retail operations [162]. - Operating earnings in the wholesale segment increased to 97,423,000in2024from87,701,000 in 2023, reflecting a growth of approximately 19.6% [173]. - The retail segment reported an operating loss of 43,462,000in2024,comparedtoaprofitof19,011,000 in 2023, marking a decline of 328.8% [173]. - The company’s adjusted EBITDA for the retail segment was 71,280,000in2024,downfrom79,510,000 in 2023, a decrease of approximately 2.5% [173]. Other Financial Metrics - The company incurred LIFO expenses of 5,167,000in2024,downfrom16,104,000 in 2023, showing a significant reduction of 67.8% [162]. - Depreciation and amortization expenses increased to 103,412,000in2024from98,639,000 in 2023, representing a rise of about 4.8% [173]. - The company’s income tax expense decreased to 10,726,000in2024from17,888,000 in 2023, a reduction of approximately 40.0% [173]. - The company’s total other expenses, net, increased to 42,936,000in2024from36,587,000 in 2023, indicating an increase of about 17.4% [173]. - A hypothetical 0.50% increase in interest rates would increase annual interest expense by approximately 3.1million[209].−TheestimatedfairvalueoftheCompany′sfixedratelong−termdebtwaslessthanbookvaluebyapproximately2.1 million as of December 28, 2024 [211].
SpartanNash(SPTN)2025-02-26 21:10