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Albertsons Companies, Inc. reported positive fourth-quarter and full-year results for fiscal 2023, highlighted by a 1.0% increase in identical sales and a 24% growth in digital sales in the fourth quarter. Net income for the quarter was $251 million, with adjusted net income at $318 million. For fiscal 2023, identical sales increased by 3.0% and digital sales by 22%. Net income for the year was $1,296 million, with adjusted net income at $1,694 million. The CEO emphasized the company's focus on the 'Customers for Life' strategy, with investments in digital and omnichannel capabilities. The company expects challenges in fiscal 2024 due to various factors but plans to offset them with ongoing productivity initiatives.
Albertsons Companies, Inc. ha riportato risultati positivi per il quarto trimestre e l'intero anno fiscale 2023, mettendo in evidenza un aumento dell'1,0% nelle vendite identiche e una crescita del 24% nelle vendite digitali nel quarto trimestre. Il reddito netto per il trimestre è stato di 251 milioni di dollari, con un reddito netto rettificato di 318 milioni di dollari. Per l'anno fiscale 2023, le vendite identiche sono aumentate del 3,0% e le vendite digitali del 22%. Il reddito netto per l'anno è stato di 1.296 milioni di dollari, con un reddito netto rettificato di 1.694 milioni di dollari. Il CEO ha sottolineato l'attenzione della compagnia sulla strategia 'Clienti per la Vita', con investimenti nelle capacità digitali e omnicanale. L'azienda prevede sfide per l'anno fiscale 2024 a causa di vari fattori, ma ha in programma di compensarle con iniziative di produttività in corso.
Albertsons Companies, Inc. reportó resultados positivos para el cuarto trimestre y el año fiscal completo 2023, destacando un aumento del 1.0% en ventas idénticas y un crecimiento del 24% en ventas digitales en el cuarto trimestre. La ganancia neta para el trimestre fue de 251 millones de dólares, con un ingreso neto ajustado de 318 millones de dólares. Para el año fiscal 2023, las ventas idénticas aumentaron un 3.0% y las ventas digitales un 22%. La ganancia neta para el año fue de 1.296 millones de dólares, con un ingreso neto ajustado de 1.694 millones de dólares. El CEO enfatizó el enfoque de la compañía en la estrategia 'Clientes para Toda la Vida', con inversiones en capacidades digitales y omnicanal. La compañía espera desafíos para el año fiscal 2024 debido a varios factores, pero planea contrarrestarlos con iniciativas de productividad continuas.
Albertsons Companies, Inc.는 2023 회계연도 4분기 및 전체 연도에 대해 긍정적인 결과를 보고하였으며, 4분기에 동일 매출은 1.0% 증가하고 디지털 매출은 24% 성장하였습니다. 분기 순이익은 2억 5100만 달러이며 조정 순이익은 3억 1800만 달러입니다. 2023 회계연도에는 동일 매출이 3.0% 증가하고 디지털 매출은 22% 증가했습니다. 연간 순이익은 12억 9600만 달러이며 조정 순이익은 16억 9400만 달러입니다. CEO는 디지털 및 옴니채널 기능에 대한 투자와 함께 '평생 고객' 전략에 대한 회사의 초점을 강조했습니다. 회사는 2024 회계연도에 여러 요인으로 인해 도전을 예상하지만, 지속적인 생산성 개선 활동으로 이를 상쇄할 계획입니다.
Albertsons Companies, Inc. a rapporté des résultats positifs pour le quatrième trimestre et pour l'année fiscale complète 2023, avec une augmentation de 1,0% des ventes identiques et une croissance de 24% des ventes numériques au quatrième trimestre. Le revenu net pour le trimestre était de 251 millions de dollars, avec un revenu net ajusté de 318 millions de dollars. Pour l'année fiscale 2023, les ventes identiques ont augmenté de 3,0% et les ventes numériques de 22%. Le revenu net pour l'année était de 1,296 milliard de dollars, avec un revenu net ajusté de 1,694 milliard de dollars. Le PDG a souligné l'accent mis par l'entreprise sur la stratégie 'Clients à vie', avec des investissem*nts dans les capacités numériques et omnicanal. L'entreprise s'attend à des défis pour l'année fiscale 2024 en raison de divers facteurs mais prévoit de les compenser par des initiatives de productivité en cours.
Albertsons Companies, Inc. berichtete positive Ergebnisse für das vierte Quartal und das gesamte Geschäftsjahr 2023, mit einem Anstieg der identischen Verkaufszahlen um 1,0% und einem Wachstum der digitalen Verkäufe um 24% im vierten Quartal. Der Nettogewinn für das Quartal betrug 251 Millionen Dollar, mit einem bereinigten Nettogewinn von 318 Millionen Dollar. Für das Geschäftsjahr 2023 stiegen die identischen Verkäufe um 3,0% und die digitalen Verkäufe um 22%. Der Nettogewinn für das Jahr betrug 1,296 Milliarden Dollar, mit einem bereinigten Nettogewinn von 1,694 Milliarden Dollar. Der CEO betonte den Fokus des Unternehmens auf die Strategie 'Kunden fürs Leben' mit Investitionen in digitale und Omnichannel-Fähigkeiten. Das Unternehmen rechnet im Geschäftsjahr 2024 mit Herausforderungen aufgrund verschiedener Faktoren, plant jedoch, diese mit laufenden Produktivitätsinitiativen auszugleichen.
Positive
- Identical sales increased by 1.0% in the fourth quarter of fiscal 2023.
- Digital sales grew by 24% in the fourth quarter of fiscal 2023.
- Net income for the fourth quarter was $251 million, with adjusted net income at $318 million.
- For fiscal 2023, identical sales increased by 3.0% and digital sales by 22%.
- Net income for fiscal 2023 was $1,296 million, with adjusted net income at $1,694 million.
- CEO Vivek Sankaran highlighted the company's focus on the 'Customers for Life' strategy.
- The company expects challenges in fiscal 2024 due to various factors but plans to offset them with ongoing productivity initiatives.
Negative
- None.
Examining the recent financial statements from Albertsons Companies, Inc., several key figures are noteworthy. A
Albertsons' commitment to omnichannel growth is noteworthy, reflecting a broader industry pivot towards integrated retail strategies. The
The mention of ongoing Merger-related costs in Albertsons' financial report indicates a significant legal and regulatory undertaking as they progress towards the merger with Kroger. This event has profound implications for shareholders, as mergers can lead to increased market share and potential economies of scale, but also come with risks such as regulatory challenges or cultural integration issues. Investors should stay attuned to updates from the SEC filings and ongoing regulatory scrutiny, particularly in a sector like grocery retail where antitrust considerations are paramount. Clarity on the merger's progress, expected timelines and the strategic fit between the companies will be essential for shareholders to fully assess the impact on their investments. The long-term synergies and operational efficiencies promised by such a merger must be balanced against the upfront costs and potential disruption during the integration phase.
Fourth Quarter of Fiscal 2023 Highlights
- Identical sales increased
1.0% - Digital sales increased
24% - Loyalty members increased
16% to 39.8 million - Net income of
, or$251 million $0.43 per share - Adjusted net income of
, or$318 million $0.54 per share - Adjusted EBITDA of
$916 million
Fiscal 2023 Highlights
- Identical sales increased
3.0% - Digital sales increased
22% - Net income of
, or$1,296 million $2.23 per share - Adjusted net income of
, or$1,694 million $2.88 per share - Adjusted EBITDA of
$4,318 million
"We delivered another solid quarter amidst a difficult industry backdrop," said Vivek Sankaran, CEO. "Again this quarter, we focused on our strategy to create Customers for Life, which drove strong growth in digital and pharmacy, deepened our omnichannel relationships with our customers and improved our in-store experience. We are pleased with our fiscal 2023 financial results, particularly in omnichannel where we have increased our investments in technology, digital and in-store customer experience and supply chain operations. We want to thank all of our teams who continue to deliver on our commitment to serving our customers and communities."
Mr. Sankaran added, "As we look forward to fiscal 2024, we will continue investing in our Customers for Life strategy and developing the digital and omnichannel capabilities necessary to support it. Our Customers for Life strategy is placing the customer at the center of everything we do, with the ultimate goal of supporting them every day, every week, and for a lifetime. It is a multi-year journey that we will continue to build on in fiscal 2024 as we invest in capabilities that allow us to digitally connect and further engage our customers through a frictionless omnichannel experience, enhance what we offer, modernize our operational capabilities and transform our ways of working."
Mr. Sankaran concluded, "At the same time, we expect to face ongoing headwinds posed by investments in associate wages and benefits, cycling significant prior year food inflation, lower government assistance for our customers, declining COVID-related income, and the increasing mix of our pharmacy and digital businesses, which carry lower margins. We expect these headwinds to be much stronger in the first half of fiscal 2024. These headwinds are expected, however, to be partially offset by ongoing productivity initiatives."
Fourth Quarter of Fiscal 2023 Results
Net sales and other revenue was
Gross margin rate increased to
Selling and administrative expenses decreased to
Net loss on property dispositions and impairment losses was
Interest expense, net was
Other expense, net was
Income tax expense was
Net income was
Adjusted net income was
Adjusted EBITDA was
Capital Expenditures
During fiscal 2023, capital expenditures were
Merger Agreement
As previously announced, on October 13, 2022, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with The Kroger Company and Kettle Merger Sub, Inc. Under the terms of the Merger Agreement, subject to regulatory approval, Kroger (through Kettle Merger Sub, Inc.) will acquire all of the outstanding shares of the Company's common stock (the "Merger"). Details regarding the Merger Agreement and the transactions contemplated by the Merger Agreement are available in our Annual Report on Form 10-K for fiscal 2023 filed with the Securities and Exchange Commission ("SEC") on April 22, 2024.
About Albertsons Companies
Albertsons Companies is a leading food and drug retailer in
Forward-Looking Statements and Factors That Impact Our Operating Results and Trends
This press release includes "forward-looking statements" within the meaning of the federal securities laws. The "forward-looking statements" include our current expectations, assumptions, estimates and projections about our business, our industry and the outcome of the Merger. They include statements relating to our future operating or financial performance which the Company believes to be reasonable at this time. You can identify forward-looking statements by the use of words such as "outlook," "may," "should," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future" and "intends" and similar expressions which are intended to identify forward-looking statements.
These statements are not guarantees of future performance and are subject to numerous risks and uncertainties which are beyond our control and difficult to predict and could cause actual results to differ materially from the results expressed or implied by the statements. Risks and uncertainties that could cause actual results to differ materially from such statements include:
- uncertainties related to the Merger, including our ability to close the transactions contemplated by the Merger Agreement, and the impact of the costs related to the Merger;
- erosion of consumer confidence as a result of the Merger and the transactions contemplated by the Merger Agreement;
- changes in macroeconomic conditions and uncertainty regarding the geopolitical environment;
- rates of food price inflation or deflation, as well as fuel and commodity prices;
- changes in consumer behavior and spending due to the impact of macroeconomic factors, including the expiration of student loan payment deferments;
- challenges in attracting, retaining and motivating our employees until the closing of the Merger;
- failure to achieve productivity initiatives, unexpected changes in our objectives and plans, inability to implement our strategies, plans, programs and initiatives, or enter into strategic transactions, investments or partnerships in the future on terms acceptable to us, or at all;
- changes in wage rates, ability to attract and retain qualified associates and negotiate acceptable contracts with labor unions;
- litigation related to the transactions contemplated by the Merger Agreement;
- restrictions on our ability to operate as a result of the Merger Agreement;
- availability and cost of goods used in our food products;
- challenges with our supply chain;
- operational and financial effects resulting from cyber incidents at the Company or at a third party, including outages in the cloud environment and the effectiveness of business continuity plans during a ransomware or other cyber incident; and
- continued reduction in governmental assistance programs such as SNAP.
All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements and risk factors. Forward-looking statements contained in this press release reflect our view only as of the date of this press release. We undertake no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
In evaluating our financial results and forward-looking statements, you should carefully consider the risks and uncertainties more fully described in the "Risk Factors" section or other sections in our reports filed with the SEC including the most recent annual report on Form 10-K and any subsequent periodic reports on Form 10-Q and current reports on Form 8-K.
Additional Information and Where to Find It
The Company has filed with the SEC a definitive information statement on Schedule 14C with respect to the approval of the Merger and has mailed the definitive information statement to the Company's stockholders. You may obtain copies of all documents filed by the Company with the SEC regarding this transaction, free of charge, at the SEC's website, www.sec.gov or from the Company's website at https://www.albertsonscompanies.com/investors/overview/.
Non-GAAP Measures and Identical Sales
Non-GAAP Measures. EBITDA, Adjusted EBITDA, Adjusted net income, Adjusted net income per Class A common share and Net debt ratio (collectively, the "Non-GAAP Measures") are performance measures that provide supplemental information the Company believes is useful to analysts and investors to evaluate its ongoing results of operations, when considered alongside other GAAP measures such as net income, operating income, gross margin, and net income per Class A common share. These Non-GAAP Measures exclude the financial impact of items management does not consider in assessing the Company's ongoing core operating performance, and thereby provide useful measures to analysts and investors of its operating performance on a period-to-period basis. Other companies may have different definitions of Non-GAAP Measures and provide for different adjustments, and comparability to the Company's results of operations may be impacted by such differences. The Company also uses Adjusted EBITDA and Net debt ratio for board of director and bank compliance reporting. The Company's presentation of Non-GAAP Measures should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items.
Identical Sales. As used in this earnings release, the term "identical sales" includes stores operating during the same period in both the current fiscal year and the prior fiscal year, comparing sales on a daily basis. Direct to consumer digital sales are included in identical sales, and fuel sales are excluded from identical sales.
Albertsons Companies, Inc. and Subsidiaries Consolidated Statements of Operations (dollars in millions, except per share data) (unaudited) | |||||||||||||||
Fourth Quarter | Fourth Quarter | Fiscal | Fiscal | ||||||||||||
Net sales and other revenue | $ | 18,339.5 | $ | 18,265.1 | $ | 79,237.7 | $ | 77,649.7 | |||||||
Cost of sales | 13,195.3 | 13,180.8 | 57,192.0 | 55,894.1 | |||||||||||
Gross margin | 5,144.2 | 5,084.3 | 22,045.7 | 21,755.6 | |||||||||||
Selling and administrative expenses | 4,717.2 | 4,712.1 | 19,932.9 | 19,596.0 | |||||||||||
Loss (gain) on property dispositions and impairment losses, net | 0.8 | (61.4 | ) | 43.9 | (147.5 | ) | |||||||||
Operating income | 426.2 | 433.6 | 2,068.9 | 2,307.1 | |||||||||||
Interest expense, net | 109.0 | 91.6 | 492.1 | 404.6 | |||||||||||
Other expense (income), net | 2.4 | (9.5 | ) | (12.2 | ) | (33.0 | ) | ||||||||
Income before income taxes | 314.8 | 351.5 | 1,589.0 | 1,935.5 | |||||||||||
Income tax expense | 64.3 | 40.4 | 293.0 | 422.0 | |||||||||||
Net income | $ | 250.5 | $ | 311.1 | $ | 1,296.0 | $ | 1,513.5 | |||||||
Net income per Class A common share: | |||||||||||||||
Basic net income per Class A common share | $ | 0.43 | $ | 0.54 | $ | 2.25 | $ | 2.29 | |||||||
Diluted net income per Class A common share | 0.43 | 0.54 | 2.23 | 2.27 | |||||||||||
Weighted average Class A common shares outstanding (in millions) | |||||||||||||||
Basic | 576.3 | 538.0 | 575.4 | 529.0 | |||||||||||
Diluted | 583.0 | 580.1 | 581.1 | 534.0 | |||||||||||
% of net sales and other revenue | |||||||||||||||
Gross margin | 28.0 | % | 27.8 | % | 27.8 | % | 28.0 | % | |||||||
Selling and administrative expenses | 25.7 | % | 25.8 | % | 25.2 | % | 25.2 | % | |||||||
Store data | |||||||||||||||
Number of stores at end of quarter/year | 2,269 | 2,271 |
Albertsons Companies, Inc. and Subsidiaries Consolidated Balance Sheets (in millions) (unaudited) | |||||||
February 24, | February 25, | ||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 188.7 | $ | 455.8 | |||
Receivables, net | 724.4 | 687.6 | |||||
Inventories, net | 4,945.2 | 4,782.0 | |||||
Prepaid assets | 370.3 | 302.7 | |||||
Other current assets | 58.9 | 42.3 | |||||
Total current assets | 6,287.5 | 6,270.4 | |||||
Property and equipment, net | 9,570.3 | 9,358.7 | |||||
Operating lease right-of-use assets | 5,981.6 | 5,879.1 | |||||
Intangible assets, net | 2,434.5 | 2,465.4 | |||||
Goodwill | 1,201.0 | 1,201.0 | |||||
Other assets | 746.2 | 993.6 | |||||
TOTAL ASSETS | $ | 26,221.1 | $ | 26,168.2 | |||
LIABILITIES | |||||||
Current liabilities | |||||||
Accounts payable | $ | 4,218.2 | $ | 4,173.1 | |||
Accrued salaries and wages | 1,302.6 | 1,317.4 | |||||
Current maturities of long-term debt and finance lease obligations | 285.2 | 1,075.7 | |||||
Current operating lease obligations | 677.6 | 664.8 | |||||
Current portion of self-insurance liability | 367.7 | 355.5 | |||||
Taxes other than income taxes | 325.4 | 382.3 | |||||
Other current liabilities | 281.0 | 460.0 | |||||
Total current liabilities | 7,457.7 | 8,428.8 | |||||
Long-term debt and finance lease obligations | 7,783.4 | 7,834.4 | |||||
Long-term operating lease obligations | 5,493.2 | 5,386.2 | |||||
Deferred income taxes | 807.6 | 854.0 | |||||
Long-term self-insurance liability | 899.9 | 878.6 | |||||
Other long-term liabilities | 1,031.8 | 1,129.8 | |||||
Commitments and contingencies | |||||||
Series A convertible preferred stock | — | 45.7 | |||||
STOCKHOLDERS' EQUITY | |||||||
Class A common stock | 5.9 | 5.9 | |||||
Additional paid-in capital | 2,129.6 | 2,072.7 | |||||
Treasury stock, at cost | (304.2 | ) | (352.2 | ) | |||
Accumulated other comprehensive income | 88.0 | 69.3 | |||||
Retained earnings (accumulated deficit) | 828.2 | (185.0 | ) | ||||
Total stockholders' equity | 2,747.5 | 1,610.7 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 26,221.1 | $ | 26,168.2 |
Albertsons Companies, Inc. and Subsidiaries Consolidated Statements of Cash Flows (in millions) (unaudited) | |||||||
Fiscal | Fiscal | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 1,296.0 | $ | 1,513.5 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Loss (gain) on property dispositions and impairment losses, net | 43.9 | (147.5 | ) | ||||
Depreciation and amortization | 1,779.0 | 1,807.1 | |||||
Operating lease right-of-use assets amortization | 665.2 | 652.7 | |||||
LIFO expense | 52.0 | 268.0 | |||||
Deferred income tax | (112.6 | ) | 12.9 | ||||
Pension and post-retirement benefits income | (2.9 | ) | (21.7 | ) | |||
Contributions to pension and post-retirement benefit plans | (18.3 | ) | (27.3 | ) | |||
Gain on interest rate swaps and energy hedges, net | (3.2 | ) | (8.4 | ) | |||
Deferred financing costs | 15.6 | 16.9 | |||||
Equity-based compensation expense | 104.5 | 138.3 | |||||
Other operating activities | 4.6 | 1.8 | |||||
Changes in operating assets and liabilities: | |||||||
Receivables, net | (36.3 | ) | (127.1 | ) | |||
Inventories, net | (215.3 | ) | (549.1 | ) | |||
Accounts payable, accrued salaries and wages and other accrued liabilities | 100.5 | (164.2 | ) | ||||
Operating lease liabilities | (654.1 | ) | (637.7 | ) | |||
Pension withdrawal liabilities | (88.7 | ) | (103.4 | ) | |||
Self-insurance assets and liabilities | 30.6 | 56.2 | |||||
Other operating assets and liabilities | (301.0 | ) | 172.9 | ||||
Net cash provided by operating activities | 2,659.5 | 2,853.9 | |||||
Cash flows from investing activities: | |||||||
Payments for property, equipment and intangibles, including lease buyouts | (2,031.3 | ) | (2,153.9 | ) | |||
Proceeds from sale of assets | 217.6 | 195.2 | |||||
Other investing activities | 67.0 | (18.6 | ) | ||||
Net cash used in investing activities | (1,746.7 | ) | (1,977.3 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from issuance of long-term debt, including ABL facility | 150.0 | 2,150.0 | |||||
Payments on long-term borrowings, including ABL facility | (950.8 | ) | (1,150.8 | ) | |||
Payments of obligations under finance leases | (69.3 | ) | (71.6 | ) | |||
Special dividend paid | — | (3,916.9 | ) | ||||
Dividends paid on common stock | (276.2 | ) | (255.1 | ) | |||
Dividends paid on convertible preferred stock | (0.8 | ) | (65.3 | ) | |||
Employee tax withholding on vesting of restricted stock units | (38.8 | ) | (44.0 | ) | |||
Other financing activities | 2.5 | (11.7 | ) | ||||
Net cash used in financing activities | (1,183.4 | ) | (3,365.4 | ) | |||
Net decrease in cash and cash equivalents and restricted cash | (270.6 | ) | (2,488.8 | ) | |||
Cash and cash equivalents and restricted cash at beginning of period | 463.8 | 2,952.6 | |||||
Cash and cash equivalents and restricted cash at end of period | $ | 193.2 | $ | 463.8 |
Albertsons Companies, Inc. and Subsidiaries Reconciliation of Non-GAAP Measures (in millions, except per share data) | |||||||||||||||
The following tables reconcile Net income to Adjusted net income, and Net income per Class A common share to Adjusted net income per Class A common share: | |||||||||||||||
Fourth Quarter | Fourth Quarter | Fiscal | Fiscal | ||||||||||||
Numerator: | |||||||||||||||
Net income | $ | 250.5 | $ | 311.1 | $ | 1,296.0 | $ | 1,513.5 | |||||||
Adjustments: | |||||||||||||||
Loss (gain) on interest rate swaps and energy hedges, net (d) | 2.9 | 4.5 | (3.2 | ) | (8.4 | ) | |||||||||
Business transformation (1)(b) | 7.2 | 13.8 | 45.1 | 78.3 | |||||||||||
Equity-based compensation expense (b) | 24.0 | 41.7 | 104.5 | 138.3 | |||||||||||
Loss (gain) on property dispositions and impairment losses, net | 0.8 | (61.4 | ) | 43.9 | (147.5 | ) | |||||||||
LIFO (benefit) expense (a) | (35.8 | ) | 86.6 | 52.0 | 268.0 | ||||||||||
Government-mandated incremental COVID-19 pandemic related pay (2)(b) | — | — | — | 10.8 | |||||||||||
Merger-related costs (3)(b) | 56.4 | 32.7 | 180.6 | 56.5 | |||||||||||
Certain legal and regulatory accruals and settlements, net (b) | — | 57.0 | (6.7 | ) | 100.7 | ||||||||||
Amortization of debt discount and deferred financing costs (c) | 3.6 | 3.9 | 15.5 | 16.8 | |||||||||||
Amortization of intangible assets resulting from acquisitions (b) | 11.1 | 11.8 | 48.6 | 50.9 | |||||||||||
Combined Plan (4)(b) | — | — | — | (19.0 | ) | ||||||||||
Miscellaneous adjustments (5)(f) | 17.4 | 6.0 | 41.4 | 52.1 | |||||||||||
Tax impact of adjustments to Adjusted net income | (20.1 | ) | (48.0 | ) | (124.0 | ) | (145.9 | ) | |||||||
Adjusted net income | $ | 318.0 | $ | 459.7 | $ | 1,693.7 | $ | 1,965.1 | |||||||
Denominator: | |||||||||||||||
Weighted average Class A common shares outstanding - diluted | 583.0 | 580.1 | 581.1 | 534.0 | |||||||||||
Adjustments: | |||||||||||||||
Convertible preferred stock (6) | — | — | 0.3 | 42.7 | |||||||||||
Restricted stock units and awards (7) | 5.5 | 4.1 | 6.4 | 5.9 | |||||||||||
Adjusted weighted average Class A common shares outstanding - diluted | 588.5 | 584.2 | 587.8 | 582.6 | |||||||||||
Adjusted net income per Class A common share - diluted | $ | 0.54 | $ | 0.79 | $ | 2.88 | $ | 3.37 |
Albertsons Companies, Inc. and Subsidiaries Reconciliation of Non-GAAP Measures (in millions, except per share data) | |||||||||||||||
Fourth Quarter | Fourth Quarter | Fiscal | Fiscal | ||||||||||||
Net income per Class A common share - diluted | $ | 0.43 | $ | 0.54 | $ | 2.23 | $ | 2.27 | |||||||
Convertible preferred stock (6) | — | — | — | 0.36 | |||||||||||
Non-GAAP adjustments (8) | 0.12 | 0.26 | 0.68 | 0.78 | |||||||||||
Restricted stock units and awards (7) | (0.01 | ) | (0.01 | ) | (0.03 | ) | (0.04 | ) | |||||||
Adjusted net income per Class A common share - diluted | $ | 0.54 | $ | 0.79 | $ | 2.88 | $ | 3.37 |
The following table is a reconciliation of Adjusted net income to Adjusted EBITDA: | |||||||||||||||
Fourth Quarter | Fourth Quarter | Fiscal | Fiscal | ||||||||||||
Adjusted net income (9) | $ | 318.0 | $ | 459.7 | $ | 1,693.7 | $ | 1,965.1 | |||||||
Tax impact of adjustments to Adjusted net income | 20.1 | 48.0 | 124.0 | 145.9 | |||||||||||
Income tax expense | 64.3 | 40.4 | 293.0 | 422.0 | |||||||||||
Amortization of debt discount and deferred financing costs (c) | (3.6 | ) | (3.9 | ) | (15.5 | ) | (16.8 | ) | |||||||
Interest expense, net | 109.0 | 91.6 | 492.1 | 404.6 | |||||||||||
Amortization of intangible assets resulting from acquisitions (b) | (11.1 | ) | (11.8 | ) | (48.6 | ) | (50.9 | ) | |||||||
Depreciation and amortization (e) | 419.1 | 426.2 | 1,779.0 | 1,807.1 | |||||||||||
Adjusted EBITDA | $ | 915.8 | $ | 1,050.2 | $ | 4,317.7 | $ | 4,677.0 |
(1) | Includes costs associated with third-party consulting fees related to our operational priorities and associated business transformation. | |
(2) | Represents incremental COVID-19 related pay legislatively required in certain municipalities in which we operate. | |
(3) | Primarily relates to third-party legal and advisor fees and retention program expense related to the proposed Merger and costs in connection with our previously-announced Board-led review of potential strategic alternatives. | |
(4) | Includes the | |
(5) | Primarily includes net realized and unrealized gains and losses related to non-operating investments, lease adjustments related to non-cash rent expense and costs incurred on leased surplus properties, adjustments for unconsolidated equity investments, certain contract terminations and other costs not considered in our core performance. | |
(6) | Represents the conversion of convertible preferred stock to the fully outstanding as-converted Class A common shares as of the end of each respective period, for periods in which the convertible preferred stock is antidilutive under GAAP. Fiscal 2022 reflects the impact of the special cash dividend of | |
(7) | Represents incremental unvested restricted stock units ("RSUs") and unvested restricted stock awards ("RSAs") to adjust the diluted weighted average Class A common shares outstanding during each respective period to the fully outstanding RSUs and RSAs as of the end of each respective period. | |
(8) | Reflects the per share impact of Non-GAAP adjustments for each period. See the reconciliation of Net income to Adjusted net income above for further details. | |
(9) | See the reconciliation of Net income to Adjusted net income above for further details. |
Albertsons Companies, Inc. and Subsidiaries Reconciliation of Non-GAAP Measures (in millions, except per share data) |
Non-GAAP adjustment classifications within the Consolidated Statement of Operations: |
(a) Cost of sales |
(b) Selling and administrative expenses |
(c) Interest expense, net |
(d) Loss (gain) on interest rate swaps and energy hedges, net: |
Fourth Quarter | Fourth Quarter | Fiscal | Fiscal | |||||||||||
Cost of sales | $ | 2.1 | $ | (2.1 | ) | $ | (2.2 | ) | $ | (4.8 | ) | |||
Selling and administrative expenses | 0.8 | 6.4 | (1.0 | ) | 4.8 | |||||||||
Other expense (income), net | — | 0.2 | — | (8.4 | ) | |||||||||
Total Loss (gain) on interest rate swaps and energy hedges, net | $ | 2.9 | $ | 4.5 | $ | (3.2 | ) | $ | (8.4 | ) |
(e) | Depreciation and amortization: |
Fourth Quarter | Fourth Quarter | Fiscal | Fiscal | ||||||||
Cost of sales | $ | 43.1 | $ | 33.5 | $ | 169.0 | $ | 162.7 | |||
Selling and administrative expenses | 376.0 | 392.7 | 1,610.0 | 1,644.4 | |||||||
Total Depreciation and amortization | $ | 419.1 | $ | 426.2 | $ | 1,779.0 | $ | 1,807.1 |
(f) | Miscellaneous adjustments: |
Fourth Quarter | Fourth Quarter | Fiscal | Fiscal | |||||||||
Selling and administrative expenses | $ | 5.5 | $ | 8.0 | $ | 34.7 | $ | 28.9 | ||||
Other expense (income), net | 11.9 | (2.0 | ) | 6.7 | 23.2 | |||||||
Total Miscellaneous adjustments | $ | 17.4 | $ | 6.0 | $ | 41.4 | $ | 52.1 |
The following table is a reconciliation of Net debt ratio: | |||||
Fiscal | Fiscal | ||||
Total debt (including finance leases) | $ | 8,068.6 | $ | 8,910.1 | |
Cash and cash equivalents | 188.7 | 455.8 | |||
Total debt net of cash | 7,879.9 | 8,454.3 | |||
Adjusted EBITDA | $ | 4,317.7 | $ | 4,677.0 | |
Total Net debt ratio | 1.83 | 1.81 |
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Source: Albertsons Companies, Inc.
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