Albertsons Companies(ACI) - 2025 Q1 - Quarterly Results

Sales Performance - Identical sales increased by 1.4% to $24.3 billion in Q1 FY2024 compared to $24.1 billion in Q1 FY2023[3] - Digital sales surged by 23% year-over-year, contributing to the overall sales growth[2] Income and Earnings - Net income for Q1 FY2024 was $240.7 million, or $0.41 per share, down from $417.2 million, or $0.72 per share in Q1 FY2023[7] - Adjusted net income decreased to $391.6 million, or $0.66 per share, compared to $545.7 million, or $0.93 per share in the prior year[7] - Net income for the 16 weeks ended June 15, 2024, was $240.7 million, down 42.3% from $417.2 million for the same period last year[26] - Adjusted net income for the 16 weeks ended June 15, 2024, was $391.6 million, down 28.3% from $545.7 million in the previous year[29] - Net income decreased from $1,446.5 million to $1,119.5 million year-over-year, a decline of approximately 22.6%[39] EBITDA and Margins - Adjusted EBITDA for Q1 FY2024 was $1,183.9 million, representing 4.9% of net sales, down from $1,318.5 million, or 5.5% in Q1 FY2023[7] - Adjusted EBITDA for the same period was $1,183.9 million, a decrease of 8.1% from $1,318.5 million year-over-year[31] - Adjusted EBITDA decreased from $4,575.2 million to $4,183.1 million year-over-year, a decline of approximately 8.6%[39] Expenses - Selling and administrative expenses rose to 25.9% of net sales in Q1 FY2024, up from 25.0% in Q1 FY2023, primarily due to increased operating expenses[5] - Selling and administrative expenses increased from $10.0 million to $12.4 million year-over-year[35] - Interest expense increased from $420.6 million to $482.9 million year-over-year[39] - Merger-related costs increased significantly from $97.5 million to $225.8 million year-over-year[39] Cash Flow and Assets - Net cash provided by operating activities increased to $960.9 million, compared to $838.3 million in the prior year, reflecting a growth of 14.6%[26] - Cash and cash equivalents at the end of the period increased to $295.3 million from $233.2 million, a rise of 26.6%[26] - Cash and cash equivalents increased from $225.2 million to $291.1 million year-over-year[38] Liabilities and Equity - Total current assets decreased to $6,207.9 million from $6,287.5 million, a decline of 1.3%[24] - Total liabilities decreased to $23,163.8 million from $23,473.1 million, a reduction of 1.3%[24] - Total stockholders' equity increased to $2,913.1 million from $2,747.5 million, an increase of 6.0%[24] - Total debt decreased from $8,399.2 million to $7,857.4 million year-over-year[38] - Payments on long-term borrowings decreased to $200.2 million from $500.2 million, a reduction of 60%[26] Other Financial Metrics - Gross margin rate increased to 27.8% in Q1 FY2024 from 27.7% in Q1 FY2023, although it decreased by 22 basis points when excluding fuel and LIFO expenses[4] - The company reported a net loss on property dispositions of $5.3 million in Q1 FY2024, significantly lower than $27.6 million in Q1 FY2023[5] - The company is facing headwinds in FY2024 related to investments in associate wages and benefits, and an increasing mix of lower-margin pharmacy and digital businesses[2] - Miscellaneous adjustments totaled $19.8 million compared to $(2.4) million in the previous year[35] - LIFO expense decreased from $239.9 million to $32.6 million year-over-year[39] - Total Net Debt Ratio increased slightly from 1.79 to 1.81 year-over-year[38]