SpartanNash Ranks No. 12 on Indeed.com’s Top 25 Most Flexible Companies List


SpartanNash earns national recognition for its flexible work environment based on data from 10 million surveys

GRAND RAPIDS, Mich. –
Food solutions company SpartanNash (the “Company”) (Nasdaq: SPTN) earned the No. 12 spot on Indeed.com’s list of 25 most flexible companies. Indeed, the world’s No. 1 job site, compiled data from more than 10 million surveys in Indeed’s Work Happiness Score and ranked the top employers in the nation. SpartanNash is featured alongside Apple, Google, Nike, Southwest Airlines, Microsoft and more.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221128005552/en/

SpartanNash (Photo: Business Wire)

SpartanNash (Photo: Business Wire)

“Flexibility is a key component of SpartanNash’s People First culture because we recognize our hardworking Associates each have unique ways their roles fit into the rest of their lives,” said Senior Vice President and Chief Human Resources Officer Nicole Zube. “We’re honored that our Associates choose to commit their time and talents to SpartanNash, so we are always looking for ways to enrich their wellbeing both at work and at home.”

Many offerings within SpartanNash’s Total Rewards package ensure Associates are living happy and healthy lives in the workplace and beyond:

  • All Associates are offered a 15% discount when purchasing SpartanNash stock.
  • Associates who live near a Company-owned retail store or fuel center receive a 10% discount off all items and free grocery pickup.
  • All Associates and members of their household are eligible for the Employee Assistance Program and work/life services, regardless of dependent status and with no requirement to be enrolled in a healthcare plan.
  • Retail Associates have the ability to swap shifts with others through tools in the payroll system and to schedule shifts around their preferred work times.
  • All benefits-eligible Associates have the flexibility to pick from a variety of benefits plans based on their individual or family needs, the ability to carry over PTO to the next calendar year, the opportunity to have paid parental leave, and the ability for hourly Associates to use PTO in as short as one-hour increments.
  • Corporate Associates have flexible hours and the opportunity for remote work based on role, a grocery delivery service to the Grand Rapids office, a Helping Hands Day to volunteer in the local community, and the ability to buy an extra week of PTO.

“We’re not only a food solutions company, we’re an active part of the communities we serve and will continue to make an impact by offering careers for a better life,” Zube said.

To learn more about SpartanNash careers, visit careers.spartannash.com.

About SpartanNash

SpartanNash (Nasdaq: SPTN) is a food solutions company that delivers the ingredients for a better life. As a distributor, wholesaler and retailer with a global supply chain network, SpartanNash customers span a diverse group of national accounts, independent and chain grocers, e-commerce retailers, U.S. military commissaries and exchanges, and the Company’s own brick-and-mortar grocery stores, pharmacies and fuel centers. SpartanNash distributes grocery and household goods, including fresh produce and its Our Family® portfolio of products, to locations in all 50 states, in addition to distributing to the District of Columbia, Europe, Cuba, Puerto Rico, Honduras, Iraq, Kuwait, Bahrain, Qatar, Djibouti, Korea and Japan. To support its distribution business, the Company operates a strategically developed network of large-scale distribution facilities and a nationwide transportation fleet. In addition, the Company owns and operates 147 supermarkets – primarily under the banners of Family Fare, Martin’s Super Markets and D&W Fresh Market – and shares its operational insights to drive innovative solutions for SpartanNash food retail customers. Committed to fostering a People First culture, the SpartanNash family of Associates is 17,500 strong and growing. For more information, visit spartannash.com.

Adrienne Chance

SVP, Communications

SpartanNash

[email protected]

SpartanNash Partners with Uber for Convenient Grocery Delivery


Uber partnership marks SpartanNash’s expanding investment in customer-focused innovation

GRAND RAPIDS, Mich. –
Food solutions company SpartanNash (the “Company”) (Nasdaq: SPTN) today announced its new partnership with Uber Technologies, Inc. (NYSE: UBER) to offer on-demand and scheduled grocery delivery to shoppers across the Midwest.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221110005044/en/

SpartanNash (Photo: Business Wire)

SpartanNash (Photo: Business Wire)

“SpartanNash’s focus on customer-centric innovation is core to our next stage of growth,” said SpartanNash Executive Vice President and Chief Strategy and Information Officer Masiar Tayebi. “Partnering with Uber is an important marker of this, meeting our shoppers wherever they are – in stores or online. We are proud to expand our reach across the Uber and Uber Eats platform to new customers who are hungry for convenience delivered to their doorstep.”

Beginning this week, nearly 100 SpartanNash locations, including Family Fare, Martin’s Super Markets and D&W Fresh Market storefronts, will be available to shop through Uber and Uber Eats. This upcoming holiday season, last-minute shoppers will be able to conveniently order their favorite must-haves, from fresh and frozen turkeys to baked goods, produce, household essentials and more-all delivered right to their home. The two companies are extending this service to SpartanNash’s network of 2,100 independent grocery retail customers as part of their partnership to deliver customer-centric innovation.

“We’re thrilled to be joining forces with the team at SpartanNash to bring its corporately-owned banners onto the Uber Eats app, helping to expand their digital strategies and customer reach through technology,” said Christian Freese, Uber’s head of grocery and new verticals across the U.S. & Canada. “And we’re also incredibly excited that this partnership expands the reach of grocery delivery from Uber Eats to cities and towns across the north Midwest for the first time, thanks to these beloved grocery brands.”

“SpartanNash’s mission is to deliver the ingredients for a better life, and our partnership with Uber enables us to expand our reach within the communities we serve,” said SpartanNash CEO Tony Sarsam. “We will continue to aggressively pursue strategic relationships and investments making the grocery shopping experience more convenient, enjoyable and affordable for the people we serve.”

About SpartanNash

SpartanNash (Nasdaq: SPTN) is a food solutions company that delivers the ingredients for a better life. As a distributor, wholesaler and retailer with a global supply chain network, SpartanNash customers span a diverse group of national accounts, independent and chain grocers, e-commerce retailers, U.S. military commissaries and exchanges, and the Company’s own brick-and-mortar grocery stores, pharmacies and fuel centers. SpartanNash distributes grocery and household goods, including fresh produce and its Our Family® portfolio of products, to locations in all 50 states, in addition to distributing to the District of Columbia, Europe, Cuba, Puerto Rico, Honduras, Iraq, Kuwait, Bahrain, Qatar, Djibouti, Korea and Japan. To support its distribution business, the Company operates a strategically developed network of large-scale distribution facilities and a nationwide transportation fleet. In addition, the Company owns and operates 147 supermarkets – primarily under the banners of Family Fare, Martin’s Super Markets and D&W Fresh Market – and shares its operational insights to drive innovative solutions for SpartanNash food retail customers. Committed to fostering a People First culture, the SpartanNash family of Associates is 17,500 strong and growing. For more information, visit spartannash.com.

About Uber

Uber’s mission is to create opportunity through movement. We started in 2010 to solve a simple problem: how do you get access to a ride at the touch of a button? More than 15 billion trips later, we’re building products to get people closer to where they want to be. By changing how people, food, and things move through cities, Uber is a platform that opens up the world to new possibilities.

Adrienne Chance

SVP, Communications

SpartanNash

[email protected]

SpartanNash Announces Strong Third Quarter Fiscal 2022 Results


Reaffirms Recently Raised Fiscal Year 2022 Guidance

GRAND RAPIDS, Mich. –
Food solutions company SpartanNash (the “Company”) (Nasdaq: SPTN) today reported financial results for its 12-week third quarter ended Oct. 8, 2022.

SpartanNash Fiscal 2022 3rd Quarter Earnings Presentation

Third Quarter Fiscal 2022 Highlights

  • Net sales of $2.3 billion, increased 10.8%, compared to $2.1 billion in the prior year quarter.
  • Retail comparable sales increased 8.0% for the quarter.
  • Net earnings of $9.5 million, a decrease of 37.6%, compared to $15.2 million in the prior year quarter.
  • Adjusted EBITDA(1) of $57.3 million, an increase of 11.3%, compared to $51.5 million in the prior year quarter.

“In the third quarter, we delivered strong topline growth and continued improvements in our key throughput and fill rate metrics, which contributed to our solid third quarter results and our improved outlook for the balance of this year,” said SpartanNash President and CEO Tony Sarsam. “We remain relentlessly focused on our People First culture, achieving operational excellence and meeting the needs of our customers. We will continue to execute on our core capabilities to drive results and increase shareholder value.”

Third Quarter Consolidated Financial Results

Consolidated net sales increased $223.3 million, or 10.8%, to $2.3 billion from $2.1 billion in the prior year quarter. The growth from prior year was driven by net sales increases in both the Wholesale and Retail segments, which were favorably impacted by inflation.

Gross profit was $351.2 million, or 15.3% of net sales, compared to $329.5 million, or 15.9% of net sales, in the prior year quarter. The gross profit increase was driven by higher sales, while the gross margin rate decrease was primarily driven by an increase in LIFO expense of $9.0 million, or 36 basis points. In addition to the impact of LIFO, lower Retail margin rates were partially offset by improvements in margin rates within the Wholesale segment.

Reported operating expenses were $331.9 million, or 14.5% of net sales, compared to $306.8 million, or 14.8% of net sales, in the prior year quarter. The decrease in operating expenses as a percentage of sales was due to a reduction in the supply chain expense rates as a result of efficiencies realized from the Company’s Supply Chain Transformation initiative. These efficiencies were partially offset by higher corporate administrative costs, including higher incentive compensation expense and up-front investments in the Merchandising Transformation initiative.

The Company reported operating earnings of $19.3 million, a decrease of $3.4 million, or 15.1%, compared to $22.7 million in the prior year quarter, due to the changes in net sales, gross profit, and operating expenses discussed above. Adjusted operating earnings(2) were $33.4 million, an increase of $4.6 million, or 16.0%, compared to $28.8 million in the prior year quarter and were adjusted for the items detailed in Table 3.

Interest expense increased $3.0 million from the prior year quarter due to rising interest rates and an increase in borrowings due to inflationary increases in working capital. Other income for the current year includes $0.8 million of income related to the partial settlement of a post-retirement benefit plan. The income tax rate increased from the prior year quarter due to increases in non-deductible expenses and state taxes.

The Company reported net earnings of $9.5 million, or $0.26 per diluted share, compared to $15.2 million, or $0.42 per diluted share in the prior year quarter. Adjusted earnings from continuing operations(3) for the third quarter were $20.0 million, or $0.55 per diluted share, compared to $19.7 million, or $0.55 per diluted share in the prior year quarter. A reconciliation of net earnings to adjusted earnings from continuing operations is included in Table 4.

Adjusted EBITDA(1) increased $5.8 million to $57.3 million, compared to $51.5 million in the prior year quarter, due to the factors mentioned above.

Please see the financial tables at the end of this press release for a reconciliation of each non-GAAP financial measure to the most directly comparable measure, prepared and presented in accordance with GAAP.

Third Quarter Segment Financial Results

As noted in its preliminary third quarter fiscal 2022 results issued on Nov. 2, 2022, at the beginning of the quarter, the Company combined the previous Food Distribution and Military operating segments into one operating segment: Wholesale. The change in the operating segments was driven by both a change in the Company’s organizational structure, and in the reporting utilized by the Chief Operating Decision Maker to allocate the Company’s resources and assess operating performance. As a result, the Company now operates two reportable segments: Wholesale and Retail. Segment financial information for the comparative prior year periods within this earnings release has been recast to reflect this update.

Wholesale

Net sales for Wholesale increased $165.4 million, or 11.3%, to $1.63 billion from $1.46 billion in the prior year quarter. The increase in net sales was due primarily to the inflationary impact on pricing.

Reported operating earnings for Wholesale were $14.0 million, compared to $5.9 million in the prior year quarter. The increase in reported operating earnings was due to increased sales and a reduced rate of supply chain expenses, partially offset by increases in corporate administrative costs and LIFO expense. Adjusted operating earnings(2) increased $14.3 million to $25.3 million from $11.0 million in the prior year quarter. Adjusted operating earnings exclude, among other items, LIFO expense and restructuring and asset impairment activity in both years.

Retail

Net sales for Retail increased $57.9 million, or 9.5%, to $666.6 million from $608.7 million in the prior year quarter, primarily due to inflationary pricing. Retail comparable store sales increased 8.0% for the quarter.

Reported operating earnings for Retail were $5.3 million, compared to $16.8 million in the prior year quarter. The decrease was due to a lower gross profit rate, investments in store wage rates and increased corporate administrative costs. Adjusted operating earnings(2) were $8.1 million, compared to $17.8 million in the prior year quarter. Adjusted operating earnings exclude, among other items, LIFO expense and restructuring and asset impairment charges in both years.

Balance Sheet and Cash Flow

Cash flows provided by operating activities for the year-to-date period were $7.5 million compared to $144.0 million in the prior year. The decrease in cash flows compared to the prior year was due primarily to inflationary increases in working capital. Accordingly, long-term debt and finance lease liabilities increased $112.8 million for the year-to-date period, which resulted in a change in the Company’s net long-term debt(4) to adjusted EBITDA(1) ratio over this period from 1.8x to 2.1x.

Purchases of property and equipment were $66.3 million in the year-to-date period compared to $55.0 million in the prior year period, while capital expenditures and IT capital(5) totaled $69.5 million in the year-to-date period compared to $61.9 million in the prior year.

Through the third quarter, the Company paid $22.5 million in cash dividends, equal to $0.63 per common share. The Company also repurchased 757,928 shares during year-to-date period for a total of $23.3 million, with an average price of $30.73 per share. In total, the Company returned $45.7 million to shareholders through the third quarter.

Fiscal 2022 Outlook

As announced on Nov. 2, 2022, given strong year-to-date results through the third quarter, the Company raised its fiscal year 2022 guidance. These updates included increasing:

  • Net sales to a range of $9.5 billion to $9.7 billion, compared to the prior guidance of $9.3 billion to $9.6 billion.
  • Adjusted EBITDA to a range of $237 million to $242 million, compared to the prior guidance of $227 million to $240 million.

In addition, the Company has updated its guidance with respect to certain other items, as noted in the table below.

Previous Full Year 2022 Outlook

Updated Full Year 2022 Outlook

Low

High

Low

High

Total net sales (millions)

$

9,300

$

9,600

$

9,500

$

9,700

Segment sales % increase (decrease)

Retail comp sales

4.0%

7.0%

6.0%

7.5%

Food Distribution sales

4.0%

7.0%

N/A

N/A

Military sales

5.0%

8.0%

N/A

N/A

Wholesale sales*

4.3%

7.3%

6.5%

8.0%

Adjusted EBITDA(1) (millions)

$

227

$

240

$

237

$

242

Adjusted EPS(2)

$

2.17

$

2.32

$

2.27

$

2.37

Capital expenditures and IT capital(7) (thousands)

$

100,000

$

110,000

$

100,000

$

110,000

Depreciation and amortization (thousands)

$

90,000

$

100,000

$

90,000

$

100,000

Interest expense (thousands)

$

19,000

$

21,000

$

21,000

$

23,000

Income tax rate

24.0

%

25.5%

25.5%

26.5%

*Prior guidance has been recast due to the combination of the previous Food Distribution and Military operating segments into the Wholesale operating segment.

Conference Call & Supplemental Earnings Presentation

The Company will host a conference call to discuss its quarterly results with additional comments and details on Wednesday, November 9, 2022, at 8:30 a.m. ET. There will also be a simultaneous, live webcast made available at SpartanNash’s website at www.spartannash.com/webcasts under the “Investor Relations” section and will remain archived on the Company’s website.

A supplemental quarterly earnings presentation will also be available on the Company’s website at www.spartannash.com/investor-presentations.

About SpartanNash

SpartanNash (Nasdaq: SPTN) is a food solutions company that delivers the ingredients for a better life. As a distributor, wholesaler and retailer with a global supply chain network, SpartanNash customers span a diverse group of national accounts, independent and chain grocers, e-commerce retailers, U.S. military commissaries and exchanges, and the Company’s own brick-and-mortar grocery stores, pharmacies and fuel centers. SpartanNash distributes grocery and household goods, including fresh produce and its Our Family® portfolio of products, to locations in all 50 states, in addition to distributing to the District of Columbia, Europe, Cuba, Puerto Rico, Honduras, Iraq, Kuwait, Bahrain, Qatar, Djibouti, Korea and Japan. To support its distribution business, the Company operates a strategically developed network of large-scale distribution facilities and a nationwide transportation fleet. In addition, the Company owns and operates 147 supermarkets – primarily under the banners of Family Fare, Martin’s Super Markets and D&W Fresh Market – and shares its operational insights to drive innovative solutions for SpartanNash food retail customers. Committed to fostering a People First culture, the SpartanNash family of Associates is 17,500 strong and growing. For more information, visit spartannash.com.

Forward-Looking Statements

The matters discussed in this press release and in the Company’s website-accessible conference calls with analysts and investor presentations include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”), about the plans, strategies, objectives, goals or expectations of the Company. These forward-looking statements may be identifiable by words or phrases indicating that the Company or management “expects,” “anticipates,” “plans,” “believes,” or “estimates,” or that a particular occurrence or event “may,” “could,” “should,” “will” or “will likely” result, occur or be pursued or “continue” in the future, that the “outlook”, “trend”, “guidance” or “target” is toward a particular result or occurrence, that a development is an “opportunity,” “priority,” “strategy,” “focus,” that the Company is “positioned” for a particular result, or similarly stated expectations. Undue reliance should not be placed on these forward-looking statements, which speak only as of the date made. Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which, with respect to future business decisions, are subject to change. These uncertainties and contingencies may affect actual results and could cause actual results to differ materially. These risks and uncertainties include the Company’s ability to compete in the highly competitive wholesale distribution and retail grocery industries; changes in economic or geopolitical conditions, including inflationary pressures and the Russia-Ukraine conflict; interest rate fluctuations; labor relations issues and rising labor costs; the ability of customers to fulfill their obligations to the Company; the Company’s dependence on certain major customers, suppliers and vendors; disruptions to the Company’s information security network; disruptions associated with the COVID-19 pandemic; the Company’s ability to implement its growth strategy and transformation initiatives; instances of security threats, severe weather conditions and natural disasters; impairment charges for goodwill and other long-lived assets; the Company’s ability to successfully manage leadership transitions; the Company’s ability to service its debt and to comply with debt covenants; the Company’s ability to manage its private brand program for U.S. military commissaries; changes in the military commissary system, including its supply chain, or in the level of governmental funding; product recalls and other product-related safety concerns; changes in government regulations; and other risks and uncertainties listed under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent Annual Report on Form 10-K and in subsequent filings with the Securities and Exchange Commission. Additional risks and uncertainties not currently known to the Company or that the Company currently believes are immaterial also may impair its business, operations, liquidity, financial condition and prospects. The Company undertakes no obligation to update or revise its forward-looking statements to reflect developments that occur or information obtained after the date of this press release.

Non-GAAP Financial Measures

This press release includes information regarding adjusted operating earnings, adjusted earnings from continuing operations, as well as per diluted share (“adjusted EPS”), net long-term debt, capital expenditures and IT capital, and adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”). These are non-GAAP financial measures, as defined below, and are used by management to allocate resources, assess performance against its peers and evaluate overall performance. The Company believes these measures provide useful information for both management and its investors. The Company believes these non-GAAP measures are useful to investors because they provide additional understanding of the trends and special circumstances that affect its business. These measures provide useful supplemental information that helps investors to establish a basis for expected performance and the ability to evaluate actual results against that expectation. These measures, when considered in connection with GAAP results, can be used to assess the overall performance of the Company as well as assess the Company’s performance against its peers. Certain of these measures are also used as a basis for certain compensation programs sponsored by the Company. In addition, securities analysts, fund managers and other shareholders and stakeholders that communicate with the Company request its financial results in these adjusted formats.

The Company is unable to provide a full reconciliation of the GAAP to non-GAAP measures used in the fiscal 2022 outlook and long-term targets disclosed in this press release without unreasonable effort because it is not possible to predict certain adjustment items with a reasonable degree of certainty since they are not yet known or quantifiable, and do not relate to the Company’s routine activities. These adjustments may include, among other items, restructuring and asset impairment activity, acquisition and integration costs, severance, costs related to the postretirement plan amendment and settlement, and organizational realignment costs, and the impact of adjustments to the last-in-first-out (LIFO) inventory reserve. This information is dependent upon future events, which may be outside of the Company’s control and could have a significant impact on its GAAP financial results for fiscal 2022 or fiscal 2025, respectively.

(1)

A reconciliation of net earnings to Adjusted EBITDA, a non-GAAP financial measure, is provided in Table 2 below.

(2)

A reconciliation of operating earnings to adjusted operating earnings, a non-GAAP financial measure, is provided in Table 3 below.

(3)

A reconciliation of net earnings to adjusted earnings from continuing operations, as well as per diluted share (“adjusted EPS”), a non-GAAP financial measure, is provided in Table 4 below.

(4)

A reconciliation of long-term debt and finance lease obligations to net long-term debt, a non-GAAP financial measure, is provided in Table 5 below.

(5)

A reconciliation of purchases of property and equipment to capital expenditures and IT capital, a non-GAAP financial measure, is provided in Table 7 below.

SPARTANNASH COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

12 Weeks Ended

40 Weeks Ended

October 8,

October 9,

October 8,

October 9,

(In thousands, except per share amounts)

2022

2021

2022

2021

Net sales

$

2,296,512

$

2,073,253

$

7,334,060

$

6,837,612

Cost of sales

1,945,302

1,743,769

6,178,024

5,756,471

Gross profit

351,210

329,484

1,156,036

1,081,141

Operating expenses

Selling, general and administrative

333,373

306,847

1,094,422

999,032

Acquisition and integration, net

(577

)

101

98

281

Restructuring and asset impairment, net

(886

)

(195

)

1,738

2,981

Total operating expenses

331,910

306,753

1,096,258

1,002,294

Operating earnings

19,300

22,731

59,778

78,847

Other expenses and (income)

Interest expense

6,051

3,020

14,764

10,877

Other, net

(768

)

(16

)

(384

)

(293

)

Total other expenses, net

5,283

3,004

14,380

10,584

Earnings before income taxes

14,017

19,727

45,398

68,263

Income tax expense

4,553

4,551

11,530

16,757

Net earnings

$

9,464

$

15,176

$

33,868

$

51,506

Basic net earnings per share:

$

0.27

$

0.43

$

0.96

$

1.44

Diluted net earnings per share:

$

0.26

$

0.42

$

0.93

$

1.44

Weighted average shares outstanding:

Basic

35,160

35,525

35,444

35,671

Diluted

36,145

35,816

36,398

35,871

SPARTANNASH COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

October 8,

January 1,

(In thousands)

2022

2022

Assets

Current assets

Cash and cash equivalents

$

18,964

$

10,666

Accounts and notes receivable, net

430,150

361,686

Inventories, net

623,504

522,324

Prepaid expenses and other current assets

70,151

62,517

Property and equipment held for sale

3,707

Total current assets

1,146,476

957,193

Property and equipment, net

558,409

577,359

Goodwill

182,160

181,035

Intangible assets, net

107,415

110,960

Operating lease assets

261,697

283,040

Other assets, net

85,320

97,195

Total assets

$

2,341,477

$

2,206,782

Liabilities and Shareholders’ Equity

Current liabilities

Accounts payable

$

492,876

$

447,451

Accrued payroll and benefits

104,436

86,315

Other accrued expenses

52,834

67,893

Current portion of operating lease liabilities

45,717

47,845

Current portion of long-term debt and finance lease liabilities

6,759

6,334

Total current liabilities

702,622

655,838

Long-term liabilities

Deferred income taxes

70,557

63,692

Operating lease liabilities

243,957

266,701

Other long-term liabilities

31,227

38,292

Long-term debt and finance lease liabilities

512,704

399,390

Total long-term liabilities

858,445

768,075

Commitments and contingencies

Shareholders’ equity

Common stock, voting, no par value; 100,000 shares authorized; 35,359 and 35,948 shares outstanding

475,136

493,783

Preferred stock, no par value, 10,000 shares authorized; no shares outstanding

Accumulated other comprehensive income (loss)

3,527

(1,455

)

Retained earnings

301,747

290,541

Total shareholders’ equity

780,410

782,869

Total liabilities and shareholders’ equity

$

2,341,477

$

2,206,782

SPARTANNASH COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

40 Weeks Ended

(In thousands)

October 8, 2022

October 9, 2021

Cash flow activities

Net cash provided by operating activities

$

7,454

$

143,953

Net cash used in investing activities

(45,956

)

(24,051

)

Net cash provided by (used in) financing activities

46,800

(115,160

)

Net increase in cash and cash equivalents

8,298

4,742

Cash and cash equivalents at beginning of the period

10,666

19,903

Cash and cash equivalents at end of the period

$

18,964

$

24,645

SPARTANNASH COMPANY AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA

Table 1: Sales and Operating Earnings by Segment

(Unaudited)

12 Weeks Ended

40 Weeks Ended

(In thousands)

October 8, 2022

October 9, 2021

October 8, 2022

October 9, 2021

Wholesale Segment

Net sales

$

1,629,869

71.0

%

$

1,464,516

70.6

%

$

5,213,733

71.1

%

$

4,869,454

71.2

%

Operating earnings

14,015

5,929

54,834

35,142

Retail Segment:

Net sales

666,643

29.0

%

608,737

29.4

%

2,120,327

28.9

%

1,968,158

28.8

%

Operating earnings

5,285

16,802

4,944

43,705

Total:

Net sales

$

2,296,512

100.0

%

$

2,073,253

100.0

%

$

7,334,060

100.0

%

$

6,837,612

100.0

%

Operating earnings

19,300

22,731

59,778

78,847

Non-GAAP Financial Measures

In addition to reporting financial results in accordance with GAAP, the Company also provides information regarding adjusted operating earnings, adjusted earnings from continuing operations, as well as per diluted share (“adjusted EPS”), net long-term debt, capital expenditures and IT capital, and adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”). These are non-GAAP financial measures, as defined below, and are used by management to allocate resources, assess performance against its peers and evaluate overall performance. The Company believes these measures provide useful information for both management and its investors. The Company believes these non-GAAP measures are useful to investors because they provide additional understanding of the trends and special circumstances that affect its business. These measures provide useful supplemental information that helps investors to establish a basis for expected performance and the ability to evaluate actual results against that expectation. The measures, when considered in connection with GAAP results, can be used to assess the overall performance of the Company as well as assess the Company’s performance against its peers. These measures are also used as a basis for certain compensation programs sponsored by the Company. In addition, securities analysts, fund managers and other shareholders and stakeholders that communicate with the Company request its financial results in these adjusted formats.

At the beginning of 2022, the Company made a change to the adjusted operating earnings and adjusted earnings from continuing operations measures to exclude the impact of LIFO expense or benefit. The Company believes the change reduces volatility associated with temporary fluctuations in inflation, enabling investors to best establish a basis for expected performance and the ability to evaluate actual results against that expectation and the industry in which the Company operates. Prior year adjusted operating earnings and adjusted earnings from continuing operations figures have been restated to align with this change in presentation. Current year adjusted operating earnings, adjusted earnings from continuing operations, and adjusted EBITDA exclude, among other items, LIFO expense, costs related to shareholder activism, operating and non-operating costs associated with the postretirement plan amendment and settlement, organizational realignment and severance associated with cost reduction initiatives. Costs related to shareholder activism include consulting, legal, and other expenses incurred in relation to shareholder activism activities. Costs related to the postretirement plan amendment and settlement include non-operating expenses associated with recognition of plan settlement losses and amortization of the prior service credit related to the amendment of the retiree medical plan, which are adjusted out of adjusted earnings from continuing operations. Postretirement plan amendment and settlement costs also include operating expenses related to payroll taxes which are adjusted out of all non-GAAP financial measures. Organizational realignment includes benefits for associates terminated as part of leadership transition plans, which do not meet the definition of a reduction-in-force. Prior year adjusted operating earnings, adjusted earnings from continuing operations, and adjusted EBITDA exclude, among other things, LIFO expense, organizational realignment and severance associated with cost reduction initiatives.

Each of these items are considered “non-operational” or “non-core” in nature.

Table 2: Reconciliation of Net Earnings to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization

(Adjusted EBITDA)

(A Non-GAAP Financial Measure)

(Unaudited)

12 Weeks Ended

40 Weeks Ended

(In thousands)

October 8, 2022

October 9, 2021

October 8, 2022

October 9, 2021

Net earnings

$

9,464

$

15,176

$

33,868

$

51,506

Income tax expense

4,553

4,551

11,530

16,757

Other expenses, net

5,283

3,004

14,380

10,584

Operating earnings

19,300

22,731

59,778

78,847

Adjustments:

LIFO expense

14,884

5,887

42,916

10,444

Depreciation and amortization

21,833

21,763

72,274

71,260

Acquisition and integration, net

(577

)

101

98

281

Restructuring and asset impairment, net

(886

)

(195

)

1,738

2,981

Cloud computing amortization

925

570

2,694

1,528

Organizational realignment, net

588

1,859

589

Severance associated with cost reduction initiatives

54

239

795

377

Stock-based compensation

1,370

920

7,208

6,084

Stock warrant

505

403

1,659

1,478

Non-cash rent

(764

)

(994

)

(2,691

)

(2,980

)

Loss (gain) on disposal of assets

63

49

(68

)

(213

)

Postretirement plan amendment and settlement

133

Costs related to shareholder activism

7,335

Adjusted EBITDA

$

57,295

$

51,474

$

195,728

$

170,676

Table 2: Reconciliation of Net Earnings to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization, continued

(Adjusted EBITDA)

(A Non-GAAP Financial Measure)

(Unaudited)

12 Weeks Ended

40 Weeks Ended

(In thousands)

October 8, 2022

October 9, 2021

October 8, 2022

October 9, 2021

Wholesale:

Operating earnings

$

14,015

$

5,929

$

54,834

$

35,142

Adjustments:

LIFO expense

12,959

5,197

35,138

8,862

Depreciation and amortization

11,090

11,130

36,602

35,701

Restructuring and asset impairment, net

(2,088

)

(332

)

(2,216

)

431

Cloud computing amortization

645

423

1,873

1,067

Organizational realignment, net

367

1,160

374

Severance associated with cost reduction initiatives

43

170

662

279

Stock-based compensation

894

549

4,743

3,843

Stock warrant

505

403

1,659

1,478

Non-cash rent

(92

)

122

(288

)

833

(Gain) loss on disposal of assets

(26

)

25

(184

)

(112

)

Postretirement plan amendment and settlement

83

Costs related to shareholder activism

4,577

Adjusted EBITDA

$

38,312

$

23,616

$

138,643

$

87,898

Retail:

Operating earnings

$

5,285

$

16,802

$

4,944

$

43,705

Adjustments:

LIFO expense

1,925

690

7,778

1,582

Depreciation and amortization

10,743

10,633

35,672

35,559

Acquisition and integration, net

(577

)

101

98

281

Restructuring and asset impairment, net

1,202

137

3,954

2,550

Cloud computing amortization

280

147

821

461

Organizational realignment, net

221

699

215

Severance associated with cost reduction initiatives

11

69

133

98

Stock-based compensation

476

371

2,465

2,241

Non-cash rent

(672

)

(1,116

)

(2,403

)

(3,813

)

Loss (gain) on disposal of assets

89

24

116

(101

)

Postretirement plan amendment and settlement

50

Costs related to shareholder activism

2,758

Adjusted EBITDA

$

18,983

$

27,858

$

57,085

$

82,778

Notes: Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“adjusted EBITDA”) is a non-GAAP operating financial measure that the Company defines as net earnings plus interest, discontinued operations, depreciation and amortization, and other non-cash items including share-based payments (equity awards measured in accordance with ASC 718, Stock Compensation, which include both stock-based compensation to employees and stock warrants issued to non-employees) and the LIFO provision, as well as adjustments for items that do not reflect the ongoing operating activities of the Company and costs associated with the closing of operational locations.

Adjusted EBITDA and adjusted EBITDA by segment are not measures of performance under accounting principles generally accepted in the United States of America and should not be considered as a substitute for net earnings and other income or cash flow statement data. The Company’s definitions of adjusted EBITDA and adjusted EBITDA by segment may not be identical to similarly titled measures reported by other companies.

Table 3: Reconciliation of Operating Earnings to Adjusted Operating Earnings

(A Non-GAAP Financial Measure)

(Unaudited)

12 Weeks Ended

40 Weeks Ended

(In thousands)

October 8, 2022

October 9, 2021

October 8, 2022

October 9, 2021

Operating earnings

$

19,300

$

22,731

$

59,778

$

78,847

Adjustments:

LIFO expense

14,884

5,887

42,916

10,444

Acquisition and integration, net

(577

)

101

98

281

Restructuring and asset impairment, net

(886

)

(195

)

1,738

2,981

Organizational realignment, net

588

1,859

589

Severance associated with cost reduction initiatives

54

239

795

377

Postretirement plan amendment and settlement

133

Costs related to shareholder activism

7,335

Adjusted operating earnings

$

33,363

$

28,763

$

114,652

$

93,519

Wholesale:

Operating earnings

$

14,015

$

5,929

$

54,834

$

35,142

Adjustments:

LIFO expense

12,959

5,197

35,138

8,862

Restructuring and asset impairment, net

(2,088

)

(332

)

(2,216

)

431

Organizational realignment, net

367

1,160

374

Severance associated with cost reduction initiatives

43

170

662

279

Postretirement plan amendment and settlement

83

Costs related to shareholder activism

4,577

Adjusted operating earnings

$

25,296

$

10,964

$

94,238

$

45,088

Retail:

Operating earnings

$

5,285

$

16,802

$

4,944

$

43,705

Adjustments:

LIFO expense

1,925

690

7,778

1,582

Acquisition and integration, net

(577

)

101

98

281

Restructuring and asset impairment, net

1,202

137

3,954

2,550

Organizational realignment, net

221

699

215

Severance associated with cost reduction initiatives

11

69

133

98

Postretirement plan amendment and settlement

50

Costs related to shareholder activism

2,758

Adjusted operating earnings

$

8,067

$

17,799

$

20,414

$

48,431

Notes: Adjusted operating earnings is a non-GAAP operating financial measure that the Company defines as operating earnings plus or minus adjustments for items that do not reflect the ongoing operating activities of the Company and costs associated with the closing of operational locations.

Adjusted operating earnings is not a measure of performance under GAAP and should not be considered as a substitute for operating earnings, and other income statement data. The Company’s definition of adjusted operating earnings may not be identical to similarly titled measures reported by other companies.

Table 4: Reconciliation of Earnings from Continuing Operations to

Adjusted Earnings from Continuing Operations

(A Non-GAAP Financial Measure)

(Unaudited)

12 Weeks Ended

October 8, 2022

October 9, 2021

per diluted

per diluted

(In thousands, except per share amounts)

Earnings

share

Earnings

share

Net earnings

$

9,464

$

0.26

$

15,176

$

0.42

Adjustments:

LIFO expense

14,884

5,887

Acquisition and integration, net

(577

)

101

Restructuring and asset impairment, net

(886

)

(195

)

Organizational realignment, net

588

Severance associated with cost reduction initiatives

54

239

Postretirement plan amendment and settlement

(763

)

Total adjustments

13,300

6,032

Income tax effect on adjustments (a)

(2,725

)

(1,511

)

Total adjustments, net of taxes

10,575

0.29

4,521

0.13

Adjusted earnings from continuing operations

$

20,039

$

0.55

$

19,697

$

0.55

40 Weeks Ended

October 8, 2022

October 9, 2021

per diluted

per diluted

(In thousands, except per share amounts)

Earnings

share

Earnings

share

Net earnings

$

33,868

$

0.93

$

51,506

$

1.44

Adjustments:

LIFO expense

42,916

10,444

Acquisition and integration, net

98

281

Restructuring and asset impairment, net

1,738

2,981

Organizational realignment, net

1,859

589

Severance associated with cost reduction initiatives

795

377

Pension refund from annuity provider

(200

)

Postretirement plan amendment and settlement

(18

)

Costs related to shareholder activism

7,335

Total adjustments

54,523

14,672

Income tax effect on adjustments (a)

(13,870

)

(3,677

)

Total adjustments, net of taxes

40,653

1.12

10,995

0.30

Adjusted earnings from continuing operations

$

74,521

$

2.05

$

62,501

$

1.74

(a)

The income tax effect on adjustments is computed by applying the effective tax rate, before discrete tax items, to the total adjustments for the period.

Notes: Adjusted earnings from continuing operations is a non-GAAP operating financial measure that the Company defines as earnings from continuing operations plus or minus adjustments for items that do not reflect the ongoing operating activities of the Company and costs associated with the closing of operational locations.

Adjusted earnings from continuing operations is not a measure of performance under GAAP and should not be considered as a substitute for net earnings, cash flows from operating activities and other income or cash flow statement data. The Company’s definition of adjusted earnings from continuing operations may not be identical to similarly titled measures reported by other companies.

Table 5: Reconciliation of Long-Term Debt and Finance Lease Obligations to Net Long-Term Debt

(A Non-GAAP Financial Measure)

(Unaudited)

October 8,

January 1

(In thousands)

2022

2022

Current portion of long-term debt and finance lease liabilities

$

6,759

$

6,334

Long-term debt and finance lease liabilities

512,704

399,390

Total debt

519,463

405,724

Cash and cash equivalents

(18,964

)

(10,666

)

Net long-term debt

$

500,499

$

395,058

Notes: Net long-term debt is a non-GAAP financial measure that is defined as long-term debt and finance lease obligations plus current maturities of long-term debt and finance lease obligations less cash and cash equivalents. The Company believes both management and its investors find the information useful because it reflects the amount of long-term debt obligations that are not covered by available cash and temporary investments. Net long-term debt is not a substitute for GAAP financial measures and may differ from similarly titled measures of other companies.

Table 6: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow

(A Non-GAAP Financial Measure)

(Unaudited)

40 Weeks Ended

(In thousands)

October 8, 2022

October 9, 2021

Net cash provided by operating activities

$

7,454

$

143,953

Less:

Purchases of property and equipment

66,282

54,957

Free cash flow

$

(58,828

)

$

88,996

Notes: Free cash flow is a non-GAAP financial measure calculated by subtracting capital expenditures from cash flows provided by operating activities, the most directly comparable GAAP measure. The Company believes it is a useful indicator of liquidity that provides information to both management and investors about the amount of cash generated from operations that, after capital expenditures, can be used for strategic business objectives, including the repayment of long-term debt. Free cash flow is not a substitute for GAAP financial measures and may differ from similarly titled measures of other companies.

Table 7: Reconciliation of Purchases of Property and Equipment to Capital Expenditures and IT Capital

(A Non-GAAP Financial Measure)

(Unaudited)

40 Weeks Ended

(In thousands)

October 8, 2022

October 9, 2021

Purchases of property and equipment

$

66,282

$

54,957

Plus:

Cloud computing spend

3,236

6,961

Capital expenditures and IT capital

$

69,518

$

61,918

Notes: Capital expenditures and IT capital is a non-GAAP financial measure calculated by adding spending related to the development of cloud computing applications spend to capital expenditures, the most directly comparable GAAP measure. Cloud computing spend only includes costs incurred during the application development phase and does not include ongoing costs of hosting or maintenance associated with these applications, which are expensed as incurred. The Company believes it is a useful indicator of the Company’s investment in its facilities and systems as it transitions to more cloud-based IT systems. Capital expenditures and IT capital is not a substitute for GAAP financial measures and may differ from similarly titled measures of other companies.

Investor Relations:

Kayleigh Campbell

Head of Investor Relations

[email protected]

[email protected]

Media:

Adrienne Chance

SVP, Communications

[email protected]

SpartanNash CEO Rings the Nasdaq Opening Bell


Ceremony followed SpartanNash’s Investor Day, highlighting the Company’s strategy and long-term plan

GRAND RAPIDS, Mich. –
Food solutions company SpartanNash (the “Company”) (Nasdaq: SPTN), led by CEO Tony Sarsam, rang the Nasdaq Opening Bell on Thursday in celebration of the Company’s successful execution of its Our Winning Recipedriven by a People First culture.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221107006191/en/

SpartanNash (Photo: Business Wire)

SpartanNash (Photo: Business Wire)

Sarsam was joined by members of the SpartanNash executive team and other senior leaders from across the Company. The ringing of the opening bell took place in New York City and was broadcast live on CNBC, Bloomberg, Fox Business and other national news networks. Headshots of SpartanNash Associates across all levels of the organization were displayed on the seven-story Nasdaq Tower in Times Square.

“What began with a small candy store in 1885 has evolved into a global enterprise that is essential to America’s food supply chain,” Sarsam said. “We have served our communities throughout changing periods in history – and perhaps none more so than through the pandemic. SpartanNash and our 17,500 Associates have been executing with excellence and have orchestrated a remarkable turnaround. Now, we are transforming and pivoting for growth. Every day, every week and every month – we are playing to win.”

The Nasdaq Opening Bell Ceremony took place following the Company’s first-ever Investor Day on Nov. 2, where Sarsam joined Executive Vice President and Chief Financial Officer Jason Monaco and other members of the Company’s executive team to present more details about its Our Winning Recipeand long-term financial targets.

“At SpartanNash, we understand that when our customers win, our investors win,” Monaco said. “As a food solutions company, continuing to innovate and advocate for what is best for consumers remains a top priority. We believe our strategic approach will help capture share, drive results and increase value for our shareholders.”

About SpartanNash

SpartanNash (Nasdaq: SPTN) is a food solutions company that delivers the ingredients for a better life. As a distributor, wholesaler and retailer with a global supply chain network, SpartanNash customers span a diverse group of national accounts, independent and chain grocers, e-commerce retailers, U.S. military commissaries and exchanges, and the Company’s own brick-and-mortar grocery stores, pharmacies and fuel centers. SpartanNash distributes grocery and household goods, including fresh produce and its Our Family® portfolio of products, to locations in all 50 states, in addition to distributing to the District of Columbia, Europe, Cuba, Puerto Rico, Honduras, Iraq, Kuwait, Bahrain, Qatar, Djibouti, Korea and Japan. To support its distribution business, the Company operates a strategically developed network of large-scale distribution facilities and a nationwide transportation fleet. In addition, the Company owns and operates 147 supermarkets – primarily under the banners of Family Fare, Martin’s Super Markets and D&W Fresh Market – and shares its operational insights to drive innovative solutions for SpartanNash food retail customers. Committed to fostering a People First culture, the SpartanNash family of Associates is 17,500 strong and growing. For more information, visit spartannash.com.

Media:

Adrienne Chance

SVP, Communications

[email protected]

Investor Relations:

Kayleigh Campbell

Head of Investor Relations

[email protected]

SpartanNash Announces Preliminary Third Quarter Fiscal 2022 Results and Raises Fiscal 2022 Guidance Ahead of Investor Day


Combines Food Distribution and Military Operating Segments

Investor Day Presentation Will Be Webcast Today at 12:30 PM ET

GRAND RAPIDS, Mich. –
Food solutions company SpartanNash (the “Company”) (Nasdaq: SPTN) is hosting its Investor Day today to provide an update on the Company’s long-term strategy and its fiscal 2025 financial targets. Additionally, the Company provided preliminary results for the 12-week third quarter ended Oct. 8, 2022, and increased fiscal 2022 guidance.

Preliminary Results for Third Quarter Fiscal 2022

The Company expects certain results for the third quarter will include the following:

  • Net sales of $2.28 to $2.31 billion, compared to $2.07 billion in the prior year quarter.
  • Net earnings of $8.9 to $9.9 million, compared to $15.2 million in the prior year quarter.
  • Adjusted EBITDA(1) of $56.3 to $58.3 million, compared to $51.5 million in the prior year quarter.

The Company’s preliminary results were driven by several factors, including:

  • Retail comparable store sales are expected to be up approximately 8% for the quarter.
  • Improvements in supply chain expense rates resulting from efficiencies realized from the Company’s supply chain transformation initiative.
  • Net sales were favorably impacted by inflation across all of the Company’s lines of business.

Through the third quarter, the Company paid $22.5 million in cash dividends, equal to $0.63 per common share. The Company also repurchased 757,928 shares during year-to-date period for a total of $23.3 million, with an average price of $30.73 per share. In total, the Company returned $45.7 million to shareholders through the third quarter.

Fiscal 2022 Outlook

The Company is also updating certain elements of its fiscal 2022 guidance. The Company now expects net sales to range from $9.5 to $9.7 billion (previously $9.3 to $9.6 billion) and adjusted EBITDA to range from $237 to $242 million (previously $227 to $240 million).

Third Quarter 2022 Earnings Conference Call

The Company will announce its full third quarter results before the stock market opens on Wednesday, Nov. 9, 2022.

The Company will host a conference call to discuss its quarterly results with additional comments and details on Wednesday, Nov. 9, 2022, at 8:30 a.m. ET. There will also be a simultaneous, live webcast made available at SpartanNash’s website at www.spartannash.com/webcasts under the “Investor Relations” section and will remain archived on the Company’s website.

Strategy Update and Fiscal 2025 Financial Targets

Since launching Our Winning Recipe™, the Company has built a solid foundation, recruited a strong executive team, improved operations and refined its strategic plans. The Company will provide further details on its growth plans and the expected benefits of its initiatives at its Investor Day.

“SpartanNash has reached an inflection point, and now we are accelerating our transformational initiatives and strategic plans, which continue to increase topline sales, decrease costs, grow share, drive results and return value to our shareholders,” said SpartanNash President and Chief Executive Officer Tony Sarsam. “Achieving our 2025 targets will translate to an increased adjusted EBITDA of nearly 70% since 2019 and 40% since 2021.”

The Company’s fiscal 2025 long-term financial targets include growing:

  • Net sales to more than $10 billion, an increase of 12% from fiscal 2021.
  • Adjusted EBITDA to more than $300 million, an increase of 40% from fiscal 2021.

These targets are expected to be achieved through several initiatives, including:

  • Increasing net sales by more than $1 billion through customer acquisition and continued expansion into value-add offerings;
  • Realizing benefits of $125 to $150 million during fiscal 2021 through 2025 with supply chain and merchandising transformation initiatives, as well as ongoing marketing innovation; and
  • Driving shareholder value through continued focus on return on capital.

Operating Segment Change

At the beginning of the third quarter of 2022, the Company combined the previous Food Distribution and Military operating segments into one operating segment: Wholesale. The change in the operating segments was driven by both a change in the Company’s organizational structure, and in the reporting utilized by the Chief Operating Decision Maker to allocate the Company’s resources and assess operating performance. As a result, the Company now operates two reportable segments: Wholesale and Retail.

The Company will recast certain financial information for the comparative prior-year periods within its third-quarter earnings release and Form 10-Q to reflect the impact of the change in the segments.

Investor Day Presentation

Sarsam, along with Jason Monaco, Executive Vice President and Chief Financial Officer, and other members of the executive team will present more details at the Company’s Investor Day. A live webcast of the event will begin today at approximately 12:30 p.m. ET.

The webcast can be accessed at SpartanNash’s website at www.spartannash.com/webcasts under the “Investor Relations” section and will remain archived on the Company’s website.

A supplemental presentation will also be available on the Company’s website at www.spartannash.com/investor-presentations.

About SpartanNash

SpartanNash (Nasdaq: SPTN) is a food solutions company that delivers the ingredients for a better life. As a distributor, wholesaler and retailer with a global supply chain network, SpartanNash customers span a diverse group of national accounts, independent and chain grocers, e-commerce retailers, U.S. military commissaries and exchanges, and the Company’s own brick-and-mortar grocery stores, pharmacies and fuel centers. SpartanNash distributes grocery and household goods, including fresh produce and its Our Family® portfolio of products, to locations in all 50 states, in addition to distributing to the District of Columbia, Europe, Cuba, Puerto Rico, Honduras, Iraq, Kuwait, Bahrain, Qatar, Djibouti, Korea and Japan. To support its distribution business, the Company operates a strategically developed network of large-scale distribution facilities and a nationwide transportation fleet. In addition, the Company owns and operates 147 supermarkets – primarily under the banners of Family Fare, Martin’s Super Markets and D&W Fresh Market – and shares its operational insights to drive innovative solutions for SpartanNash food retail customers. Committed to fostering a People First culture, the SpartanNash family of Associates is 17,500 strong and growing. For more information, visit spartannash.com.

Forward-Looking Statements

The matters discussed in this press release and in the Company’s website-accessible conference calls with analysts and investor presentations include “forward-looking statements” about the plans, strategies, objectives, goals or expectations of the Company. These forward-looking statements are identifiable by words or phrases indicating that the Company or management “expects,” “anticipates,” “plans,” “believes,” or “estimates,” or that a particular occurrence or event “may,” “could,” “should,” “will” or “will likely” result, occur or be pursued or “continue” in the future, that the “outlook”, “trend”, “guidance” or “target” is toward a particular result or occurrence, that a development is an “opportunity,” “priority,” “strategy,” “focus,” that the Company is “positioned” for a particular result, or similarly stated expectations. Undue reliance should not be placed on these forward-looking statements, which speak only as of the date made. There are many important factors that could cause actual results to differ materially. These risks and uncertainties include the Company’s ability to compete in the highly competitive wholesale distribution and retail grocery industries; changes in economic or geopolitical conditions, including inflationary pressures and the Russia-Ukraine conflict; interest rate fluctuations; labor relations issues and rising labor costs; the ability of customers to fulfill their obligations to the Company; the Company’s dependence on certain major customers, suppliers and vendors; disruptions to the Company’s information security network; disruptions associated with the COVID-19 pandemic; the Company’s ability to implement its growth strategy and transformation initiatives; instances of security threats, severe weather conditions and natural disasters; impairment charges for goodwill and other long-lived assets; the Company’s ability to successfully manage leadership transitions; the Company’s ability to service its debt and to comply with debt covenants; the Company’s ability to manage its private brand program for U.S. military commissaries; changes in the military commissary system, including its supply chain, or in the level of governmental funding; product recalls and other product-related safety concerns; changes in government regulations; and other risks and uncertainties listed under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent Annual Report on Form 10-K and in subsequent filings with the Securities and Exchange Commission. Additional risks and uncertainties not currently known to the Company or that the Company currently believes are immaterial also may impair its business, operations, liquidity, financial condition and prospects. The Company undertakes no obligation to update or revise its forward-looking statements to reflect developments that occur or information obtained after the date of this press release.

Non-GAAP Financial Measures

This press release includes information regarding adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”). This is a non-GAAP financial measure, as defined below, and is used by management to allocate resources, assess performance against its peers and evaluate overall performance. The Company believes this measure provides useful information for both management and its investors. The Company believes this non-GAAP measure is useful to investors because it provides additional understanding of the trends and special circumstances that affect its business. This measure provides useful supplemental information that helps investors to establish a basis for expected performance and the ability to evaluate actual results against that expectation. This measure, when considered in connection with GAAP results, can be used to assess the overall performance of the Company as well as assess the Company’s performance against its peers. This measure is also used as a basis for certain compensation programs sponsored by the Company. In addition, securities analysts, fund managers and other shareholders and stakeholders that communicate with the Company request its financial results in this adjusted format.

The Company is unable to provide a full reconciliation of the GAAP to non-GAAP measures used in the fiscal 2022 outlook and long-term targets disclosed in this press release without unreasonable effort because it is not possible to predict certain adjustment items with a reasonable degree of certainty since they are not yet known or quantifiable, and do not relate to the Company’s routine activities. These adjustments may include, among other items, restructuring and asset impairment activity, acquisition and integration costs, severance, costs related to the postretirement plan amendment and settlement, and organizational realignment costs, and the impact of adjustments to the last-in-first-out (LIFO) inventory reserve. This information is dependent upon future events, which may be outside of the Company’s control and could have a significant impact on its GAAP financial results for fiscal 2022 or fiscal 2025, respectively.

(1) A reconciliation of net earnings to adjusted EBITDA, a non-GAAP financial measure, is provided under “Non-GAAP Financial Measures.”

SPARTANNASH COMPANY AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

Table 1: Reconciliation of Net Earnings to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization

(Adjusted EBITDA)

(A Non-GAAP Financial Measure)

(Unaudited)

12 Weeks Ended

October 8, 2022

October 9, 2021

(In thousands)

Low

High

Actual

Net earnings

$

8,910

$

9,910

$

15,176

Income tax expense

4,400

4,700

4,551

Other expenses, net

5,250

5,300

3,004

Operating earnings

18,560

19,910

22,731

Adjustments:

LIFO expense

14,850

14,950

5,887

Depreciation and amortization

21,800

21,900

21,763

Acquisition and integration, net

(585

)

(565

)

101

Restructuring and asset impairment, net

(895

)

(875

)

(195

)

Cloud computing amortization

900

950

570

Organizational realignment, net

570

610

Severance associated with cost reduction initiatives

45

65

239

Stock-based compensation

1,325

1,425

920

Stock warrant

475

525

403

Non-cash rent

(800

)

(700

)

(994

)

Loss on disposal of assets

50

100

49

Postretirement plan amendment and settlement

Costs related to shareholder activism

Adjusted EBITDA

$

56,295

$

58,295

$

51,474

Investor Relations:

Kayleigh Campbell

Head of Investor Relations

[email protected]

[email protected]

Media:

Adrienne Chance

SVP, Communications

[email protected]

SpartanNash, Shipt Announce Expansion of Same-Day Delivery Partnership


SpartanNash is growing its consumer base for grocery delivery by joining the Shipt marketplace ahead of the busy holiday season

GRAND RAPIDS, Mich. –
Food solutions company SpartanNash (the “Company”) (Nasdaq: SPTN) today announced its growing partnership with same-day delivery service Shipt. Shipt users will now be able to shop nearly 90 Company-owned grocery stores across Iowa, Indiana, Michigan, Nebraska, North Dakota and Ohio and have groceries and essential household items delivered in as soon as an hour.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221101005395/en/

SpartanNash, Shipt Announce Expansion of Same-Day Delivery Partnership (Photo: Business Wire)

SpartanNash, Shipt Announce Expansion of Same-Day Delivery Partnership (Photo: Business Wire)

Since April 2021, Shipt has served as a last-mile delivery provider for SpartanNash, delivering grocery orders placed directly with Fast Lane to consumers’ homes. With the holidays approaching, shoppers can now purchase groceries from Shipt’s digital marketplace. The SpartanNash retail banners listed on the Shipt platform include D&W Fresh Market, Family Fare, Forest Hills Foods, Martin’s Super Markets, Supermercado Nuestra Familia and VG’s Grocery.

“Expanding strategic relationships with innovative brands such as Shipt allows us to continue delivering the ingredients for a better life,” said SpartanNash Executive Vice President and Chief Strategy and Information Officer Masiar Tayebi. “We are proud to work together to bring easy, convenient solutions to our customers through this partnership, and we look forward to the opportunity to serve even more new shoppers through the Shipt app and website.”

“We are so excited to have SpartanNash’s incredible lineup of grocery stores join the Shipt marketplace,” said Shipt Chief Business Officer Rina Hurst. “With the busy holiday season around the corner, we want to ensure our loyal customer base is set up for success, and that means meeting them where they are. And in this case, they’re in the Midwest. We already have a strong relationship with SpartanNash and look forward to supporting each other in our expanded partnership on the Shipt marketplace through this holiday season and beyond.”

To celebrate this growing partnership, Shipt is offering grocery shoppers free delivery on their first order of $10 or more with the promo code GETSHIPT. For more details and to download the Shipt app, visit www.shipt.com. New customers can sign up and learn about availability in their area by visiting shipt.com/hi or by downloading the Shipt app.

About Shipt

Shipt brings the store to your door. Through a community of Shipt Shoppers and a convenient app, Shipt provides personal shopping and delivery and is available to 80% of households in more than 5,000 U.S. cities. Shipt Shoppers go above and beyond, communicating in real time about preferences and substitutions. A curated marketplace of retailers, Shipt offers access to a variety of stores and product categories including fresh foods, household essentials, wellness products, office and pet supplies. Shipt is an independently operated, wholly owned subsidiary of Target Corp. Founded and headquartered in Birmingham, Alabama, Shipt also maintains an office in San Francisco. For more information, visit Shipt.com.

About SpartanNash

SpartanNash (Nasdaq: SPTN) is a food solutions company that delivers the ingredients for a better life. As a distributor, wholesaler and retailer with a global supply chain network, SpartanNash customers span a diverse group of national accounts, independent and chain grocers, e-commerce retailers, U.S. military commissaries and exchanges, and the Company’s own brick-and-mortar grocery stores, pharmacies and fuel centers. SpartanNash distributes grocery and household goods, including fresh produce and its Our Family® portfolio of products, to locations in all 50 states, in addition to distributing to the District of Columbia, Europe, Cuba, Puerto Rico, Honduras, Iraq, Kuwait, Bahrain, Qatar, Djibouti, Korea and Japan. To support its distribution business, the Company operates a strategically developed network of large-scale distribution facilities and a nationwide transportation fleet. In addition, the Company owns and operates 147 supermarkets – primarily under the banners of Family Fare, Martin’s Super Markets and D&W Fresh Market – and shares its operational insights to drive innovative solutions for SpartanNash food retail customers. Committed to fostering a People First culture, the SpartanNash family of Associates is 17,500 strong and growing. For more information, visit spartannash.com.

Adrienne Chance

SVP, Communications

SpartanNash

[email protected]

SpartanNash to Webcast Third Quarter 2022 Earnings Conference Call


GRAND RAPIDS, Mich. –
Food solutions company SpartanNash (the “Company”) (Nasdaq: SPTN) will announce its financial results before the stock market opens on Wednesday, November 9, 2022, for the 12-week third quarter ended October 8, 2022.

The Company will host a conference call to discuss its quarterly results with additional comments and details on Wednesday, November 9, 2022, at 8:30 a.m. ET. There will also be a simultaneous, live webcast made available at SpartanNash’s website at www.spartannash.com/webcasts under the “Investor Relations” section and will remain archived on the Company’s website.

About SpartanNash

SpartanNash (Nasdaq: SPTN) is a food solutions company that delivers the ingredients for a better life. As a distributor, wholesaler and retailer with a global supply chain network, SpartanNash customers span a diverse group of national accounts, independent and chain grocers, e-commerce retailers, U.S. military commissaries and exchanges, and the Company’s own brick-and-mortar grocery stores, pharmacies and fuel centers. SpartanNash distributes grocery and household goods, including fresh produce and its Our Family® portfolio of products, to locations in all 50 states, in addition to distributing to the District of Columbia, Europe, Cuba, Puerto Rico, Honduras, Iraq, Kuwait, Bahrain, Qatar, Djibouti, Korea and Japan. To support its distribution business, the Company operates a strategically developed network of large-scale distribution facilities and a nationwide transportation fleet. In addition, the Company owns and operates 147 supermarkets – primarily under the banners of Family Fare, Martin’s Super Markets and D&W Fresh Market – and shares its operational insights to drive innovative solutions for SpartanNash food retail customers. Committed to fostering a People First culture, the SpartanNash family of Associates is 17,500 strong and growing. For more information, visit spartannash.com.

Investor:

Kayleigh Campbell

Head of Investor Relations

[email protected]

[email protected]

Media:

Caitlin Gardner

Senior Manager, Public Relations

[email protected]

[email protected]

SpartanNash Foundation Launches Fundraiser to Support Local Food Pantries


Donations made at grocery store checkouts from Oct. 26 to Nov. 6 will support local, food-insecure families during the holidays

GRAND RAPIDS, Mich. –
Food solutions company SpartanNash (the “Company”) (Nasdaq: SPTN) will launch its annual in-store fundraiser this week through Nov. 6, 2022, in support of local food banks in Indiana, Iowa, Michigan, Minnesota, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin. All 147 Company-owned stores under the banners of Family Fare, D&W Fresh Market, Dan’s Supermarkets, Martin’s Super Markets, Supermercado, VG’s Grocery, Forest Hill Foods and Ada Fresh Market are participating in this fundraiser.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221025005278/en/

This program allows shoppers to make quick, easy donations at checkout or online through Fast Lane. Through this fundraiser, SpartanNash will support local families through food pantry donations to provide meals for those struggling with food insecurity this holiday season.

“With inflation and the already existing financial strain the holidays bring, many more families are needing extra help putting food on the table this year,” said SpartanNash Senior Vice President, Communications and SpartanNash Foundation Executive Director Adrienne Chance. “We are calling on SpartanNash Associates and store guests to help us raise critical funds for food pantries in advance of the holiday season.”

Store guests are invited to help their neighbors by donating $1, $5, $10 or rounding up to the nearest dollar at the register during checkout. Every dollar donated makes a significant impact and can provide up to 10 meals, according to Feeding America.

“Westminster Food Pantry has received more than $20,000 from our partnership with the Breton Village D&W store in Grand Rapids,” said Westminster Food Pantry Business Administrator Angie Kelley. “This food pantry fundraiser has allowed us to purchase at least 100,000 pounds of food from our local food bank over the past few years. This partnership is a vital part of our operation, and we value it greatly.”

Since starting this annual fundraiser in 2016, the SpartanNash Foundation has raised over $1.7 million to support local food pantries. This effort is part of SpartanNash’s larger commitment to philanthropy and social responsibility.

About SpartanNash

SpartanNash (Nasdaq: SPTN) is a food solutions company that delivers the ingredients for a better life. As a distributor, wholesaler and retailer with a global supply chain network, SpartanNash customers span a diverse group of national accounts, independent and chain grocers, e-commerce retailers, U.S. military commissaries and exchanges, and the Company’s own brick-and-mortar grocery stores, pharmacies and fuel centers. SpartanNash distributes grocery and household goods, including fresh produce and its Our Family® portfolio of products, to locations in all 50 states, in addition to distributing to the District of Columbia, Europe, Cuba, Puerto Rico, Honduras, Iraq, Kuwait, Bahrain, Qatar, Djibouti, Korea and Japan. To support its distribution business, the Company operates a strategically developed network of large-scale distribution facilities and a nationwide transportation fleet. In addition, the Company owns and operates 147 supermarkets – primarily under the banners of Family Fare, Martin’s Super Markets and D&W Fresh Market – and shares its operational insights to drive innovative solutions for SpartanNash food retail customers. Committed to fostering a People First culture, the SpartanNash family of Associates is 17,500 strong and growing. For more information, visit spartannash.com.

Adrienne Chance

SVP, Communications

[email protected]

SpartanNash Promotes Masiar Tayebi to EVP, Chief Strategy and Information Officer


Tayebi will focus on technology innovation as core component of SpartanNash’s growth strategy

GRAND RAPIDS, Mich. –
Food solutions company SpartanNash (the “Company”) (Nasdaq: SPTN) today announced the promotion of Masiar Tayebi to Executive Vice President, Chief Strategy and Information Officer. Tayebi was hired in April 2021 as EVP, Chief Strategy Officer.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221017005039/en/

Masiar Tayebi (Photo: Business Wire)

Masiar Tayebi (Photo: Business Wire)

“SpartanNash is more focused than ever on being the most customer-focused, innovative food solutions company,” said SpartanNash CEO Tony Sarsam. “Our innovation through technology goes hand-in-hand with the overall strategy of the Company, making Masiar a natural leader for the IT function moving forward. He brings more than two decades of experience connecting strategy, technology, innovation and execution to drive growth and transformational change.”

Prior to SpartanNash, Tayebi served as Global Head of Corporate Strategy and Business Development at Whirlpool Corporation. In that role, he was responsible for strategy and acquisitions, including Yummly, a leading technology food platform offering online grocery delivery. After acquiring Yummly in 2017, Masiar served as Chief Operating Officer at Yummly, executing Whirlpool’s innovation growth strategy and tripling users to 23 million.

Previously, Tayebi was an Executive Director at UBS focused on strategy, M&A and transformational change. During his time at UBS, he served in various leadership positions, including Americas Chief Technology Officer and Global Head of Change Management for its Asset Management division. Before joining UBS, Tayebi worked with various Fortune 500 clients on strategic initiatives during his time in management consulting.

Tayebi holds an MBA from the University of Chicago, Booth School of Business and a bachelor’s degree in economics and finance from Bentley University. He was named one of the University of Chicago Booth’s Top 15 Alumni in Tech.

About SpartanNash

SpartanNash (Nasdaq: SPTN) is a food solutions company that delivers the ingredients for a better life. As a distributor, wholesaler and retailer with a global supply chain network, SpartanNash customers span a diverse group of national accounts, independent and chain grocers, e-commerce retailers, U.S. military commissaries and exchanges, and the Company’s own brick-and-mortar grocery stores, pharmacies and fuel centers. SpartanNash distributes grocery and household goods, including fresh produce and its Our Family® portfolio of products, to locations in all 50 states, in addition to distributing to the District of Columbia, Europe, Cuba, Puerto Rico, Honduras, Iraq, Kuwait, Bahrain, Qatar, Djibouti, Korea and Japan. To support its distribution business, the Company operates a strategically developed network of large-scale distribution facilities and a nationwide transportation fleet. In addition, the Company owns and operates 147 supermarkets – primarily under the banners of Family Fare, Martin’s Super Markets and D&W Fresh Market – and shares its operational insights to drive innovative solutions for SpartanNash food retail customers. Committed to fostering a People First culture, the SpartanNash family of Associates is 17,500 strong and growing. For more information, visit spartannash.com.

Adrienne Chance

SVP, Communications

SpartanNash

[email protected]

Reminder: SpartanNash to Host Live Webcast of Investor Day Presentation on November 2


GRAND RAPIDS, Mich. –
Food solutions company SpartanNash (Nasdaq: SPTN) (the “Company”) would like to remind investors that the Company will be hosting its Investor Day on Wednesday, November 2. The event’s agenda has been finalized with a live webcast to begin at approximately 12:30 p.m. ET.

Chief Executive Officer Tony Sarsam, Executive Vice President and Chief Financial Officer Jason Monaco, and other members of the SpartanNash executive team will present more details about its Our Winning RecipeTM and long-term financial targets to the investment community.

The webcast of the presentation will be made available at SpartanNash’s website at www.spartannash.com/webcasts under the “Investor Relations” section and will remain archived on the Company’s website.

About SpartanNash

SpartanNash (Nasdaq: SPTN) is a food solutions company that delivers the ingredients for a better life. As a distributor, wholesaler and retailer with a global supply chain network, SpartanNash customers span a diverse group of national accounts, independent and chain grocers, e-commerce retailers, U.S. military commissaries and exchanges, and the Company’s own brick-and-mortar grocery stores, pharmacies and fuel centers. SpartanNash distributes grocery and household goods, including fresh produce and its Our Family® portfolio of products, to locations in all 50 states, in addition to distributing to the District of Columbia, Europe, Cuba, Puerto Rico, Honduras, Iraq, Kuwait, Bahrain, Qatar, Djibouti, Korea and Japan. To support its distribution business, the Company operates a strategically developed network of large-scale distribution facilities and a nationwide transportation fleet. In addition, the Company owns and operates 147 supermarkets – primarily under the banners of Family Fare, Martin’s Super Markets and D&W Fresh Market – and shares its operational insights to drive innovative solutions for SpartanNash food retail customers. Committed to fostering a People First culture, the SpartanNash family of Associates is 17,500 strong and growing. For more information, visit spartannash.com.

Investor:

Kayleigh Campbell

Head of Investor Relations

[email protected]

[email protected]

Media:

Caitlin Gardner

Senior Manager, Public Relations

[email protected]

[email protected]