SpartanNash(SPTN) - 2024 Q4 - Annual Results

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].