Albertsons Companies(US:ACI)2024-10-15 12:33Financial 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]