SpartanNash Announces Second Quarter Fiscal 2021 Financial Results

Aug 18th, 2021

Full-Year Profitability Outlook Improves

GRAND RAPIDS, Mich. - SpartanNash Company (the "Company") (Nasdaq: SPTN) today reported financial results for its 12-week second quarter ended July 17, 2021.

Second Quarter Fiscal 2021 Highlights

  • Net sales of $2.11 billion declined 3.6% from prior year quarter net sales of $2.18 billion, due to the prior year's increased consumer demand related to the COVID-19 pandemic.
  • Retail comparable store sales declined 2.7% for the quarter. Comparable store sales increased by 12.1% on a two-year basis, representing sequential improvement on a quarterly basis.
  • EPS was $0.47 per share and adjusted EPS was $0.54.
  • Adjusted EBITDA was $54.4 million, compared to $59.2 million in the prior year quarter.
  • Cash generated from operating activities of $105.4 million during the second quarter, leading to a $75.8 million net pay down of long-term debt.
  • The Company increased the low end of the fiscal 2021 profitability outlook range. EPS is now expected to range from $1.56 to $1.69 per diluted share, with adjusted EPS expected to range from $1.70 to $1.80 per diluted share, and adjusted EBITDA to range from $200 to $210 million.

"I am pleased to report strong second quarter results, in spite of continued labor and supply chain headwinds that have been observed throughout the industry," said SpartanNash President and CEO Tony Sarsam. "Our associates again rose to the challenge to best support both our wholesale customers and communities we serve."

Consolidated Financial Results

Consolidated net sales for the second quarter decreased $77.5 million, or 3.6%, to $2.11 billion from $2.18 billion in the prior year quarter. The decrease in net sales was due to favorable prior year sales, attributable to increased consumer demand related to the COVID-19 pandemic in all segments. This decline was partly offset by continued growth with certain existing Food Distribution customers. Foot traffic at commissaries within the Military segment has yet to return to pre-pandemic levels following domestic base access restrictions.

Gross profit for the second quarter was $333.6 million, or 15.8% of net sales, compared to $338.4 million, or 15.5% of net sales, in the prior year quarter. Gross profit rate growth was driven by improvements within the Food Distribution and Military segments, as well as an increase in the proportion of margin accretive Retail and Food Distribution segment sales, partially offset by an increase in LIFO expense.

Reported operating expenses for the second quarter were $307.7 million, or 14.6% of net sales, compared to $304.4 million, or 13.9% of net sales, in the prior year quarter. The increase in expenses as a rate of sales compared to the prior year quarter was due to a higher rate of supply chain expenses primarily in the Food Distribution segment and increases in health insurance expense. These increases in expense rates were partially offset by lower incentive compensation expense compared to the prior year quarter.

The Company reported operating earnings of $25.9 million, compared to $34.0 million in the prior year quarter, due to the changes in net sales, gross profit and operating expenses discussed above. Adjusted operating earnings(1) were $29.3 million compared to $37.7 million in the prior year quarter and were adjusted for the items detailed in Table 3.

Interest expense decreased $0.4 million from the prior year quarter due to the Company's paydown of long-term debt resulting from free cash flow(4) over the past year.

The Company reported net earnings of $16.8 million, or $0.47 per diluted share, compared to $28.5 million, or $0.80 per diluted share in the prior year quarter. The decline reflects the operating earnings and non-operating expense changes noted above, in addition to cycling a prior year tax benefit of $5.2 million related to the Coronavirus Aid, Relief and Economic Security ("CARES") Act. Adjusted earnings from continuing operations(2) for the second quarter were $19.4 million, or $0.54 per diluted share, compared to $26.1 million, or $0.73 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(3) decreased $4.8 million to $54.4 million, compared to $59.2 million in the prior year quarter, due to the changes in adjusted operating earnings mentioned above. Increases in LIFO expense and depreciation and amortization, which were offset by changes in the timing of restricted stock awards, impacted the relationship between net earnings and adjusted EBITDA for the quarter.

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.

Segment Financial Results

Food Distribution

Net sales for Food Distribution decreased $33.3 million, or 3.1%, to $1.06 billion from $1.09 billion in the prior year quarter. The decrease in net sales was due to favorable prior year sales attributable to increased consumer demand related to COVID-19, partly offset by continued growth with certain existing Food Distribution customers. Net sales increased $121.1 million, or 13.0%, over the second quarter of 2019.

Reported operating earnings for Food Distribution were $16.7 million, compared to $14.4 million in the prior year quarter. The increase in reported operating earnings for Food Distribution was due to favorable margin rates and lower asset impairment and restructuring charges, partly offset by a higher rate of supply chain expenses and lower sales volumes. Adjusted operating earnings(1) were $17.4 million, compared to $17.9 million in the prior year quarter. Adjusted operating earnings exclude asset impairment and restructuring charges in both the current and prior year quarters.

Retail

Net sales for Retail decreased $11.3 million, or 1.8%, to $620.0 million from $631.3 million in the prior year quarter, primarily due to favorable prior year sales attributable to increased consumer demand related to COVID-19, partially offset by an increase in fuel sales. Retail comparable store sales declined 2.7% for the quarter, however increased by 12.1% on a two-year comparable basis.

Reported operating earnings for Retail were $12.7 million, compared to $24.5 million in the prior year quarter. The decrease in reported operating earnings was due to reduced fuel margin rates, a decrease in sales volume, higher healthcare expenses, and higher asset impairment and restructuring charges, partially offset by lower incentive compensation expense. Adjusted operating earnings(1) were $15.4 million, compared to $24.7 million in the prior year quarter. Adjusted operating earnings exclude asset impairment and restructuring charges in both the current and prior year quarters.

Military

Net sales for Military decreased $32.9 million, or 7.1%, to $430.1 million from $463.0 million in the prior year quarter. The decrease was primarily related to the continuation of lower volumes at domestic commissaries due to limited base access. Net sales decreased $60.5 million, or 12.3% from the second quarter of 2019.

The reported and adjusted operating losses(1) for Military were $3.5 million, compared to $4.9 million in the prior year quarter. The decrease in the reported and adjusted operating losses was due to improvements in gross margin rates, partially offset by the decrease in sales volume.

Balance Sheet and Cash Flow

Cash flows provided by operating activities for the first half of fiscal 2021 were $73.6 million compared to $198.2 million in the prior year. In the prior year, significant increases in sales volume related to the COVID-19 pandemic resulted in a reduction in working capital and incremental earnings, which benefited prior year operating cash flows. The Company reduced net long-term debt(5) by $39.4 million during the first half of fiscal 2021, which resulted in an improvement in the Company's net long-term debt to adjusted EBITDA ratio over this period from 2.0x to 1.9x.

Capital expenditures and IT capital(6) totaled $43.8 million in the first half of fiscal 2021 compared to $35.6 million in the first half of the prior year.

During the first half of fiscal 2021, the Company declared $14.4 million in cash dividends, equal to $0.20 per common share. The Company also repurchased 265,000 shares for a total of $5.3 million in the first half of fiscal 2021, an average price of $20.07 per share.

Outlook

"We have sustained momentum in our Retail business, though we still face clear challenges in our distribution operations, especially considering the evolving conditions associated with the COVID-19 pandemic. Our updated outlook reflects the improved trends in Retail, but also recognizes the headwinds related to sales trends in our Military business and strains on our supply chain that have been significantly impacted by historic labor shortages," Sarsam continued. "Following the recent announcement of our supply chain transformation initiative, our team has completed the blueprint phase and begun work in areas that will best position us for sustainable, profitable growth and will enhance shareholder returns."

Based on year-to-date performance and our expectations for the remainder of the year, the Company is updating its full year guidance for 2021, initially provided on Feb. 24, 2021:

 

Previous Full Year 2021 Outlook

 

 

Updated Full Year 2021 Outlook

 

 

Low

 

 

High

 

 

Low

 

 

High

 

Total net sales (millions)

$

 

8,800

 

 

$

 

9,000

 

 

$

 

8,800

 

 

$

 

9,000

 

Segment sales % decline

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail comp sales

 

(7.0%)

 

 

 

(5.0%)

 

 

 

(5.0%)

 

 

 

(2.0%)

 

Food Distribution sales

 

(3.0%)

 

 

 

(1.0%)

 

 

 

(3.0%)

 

 

 

(1.0%)

 

Military sales

 

(10.0%)

 

 

 

(6.0%)

 

 

 

(13.0%)

 

 

 

(9.0%)

 

Adjusted EBITDA(3) (millions)

$

 

195

 

 

$

 

210

 

 

$

 

200

 

 

$

 

210

 

Adjusted EPS(7)

$

 

1.65

 

 

$

 

1.80

 

 

$

 

1.70

 

 

$

 

1.80

 

Reported EPS

$

 

1.48

 

 

$

 

1.67

 

 

$

 

1.56

 

 

$

 

1.69

 

Capital expenditures and IT capital(6) (thousands)

$

 

80,000

 

 

$

 

90,000

 

 

$

 

80,000

 

 

$

 

90,000

 

Depreciation and amortization (thousands)

$

 

90,000

 

 

$

 

100,000

 

 

$

 

90,000

 

 

$

 

100,000

 

Interest expense (thousands)

$

 

14,000

 

 

$

 

15,000

 

 

$

 

14,000

 

 

$

 

15,000

 

Income tax rate

 

23.0%

 

 

 

24.5%

 

 

 

24.5%

 

 

 

25.5%

 

The Company's outlook now includes the costs and expected current year benefits associated with the supply chain transformation initiative.

Conference Call

A telephone conference call to discuss the Company's second quarter financial results is scheduled for Thursday, August 19, 2021 at 8 a.m. ET. A live webcast of this conference call will be available on the Company's website, www.spartannash.com/webcasts. Simply click on "For Investors" and follow the links to the live webcast. The webcast will remain available for replay on the Company's website for approximately 10 days.

About SpartanNash

SpartanNash (Nasdaq: SPTN) is a Fortune 400 company whose core businesses include distributing grocery products to a diverse group of independent and chain retailers, its corporate-owned retail stores and U.S. military commissaries and exchanges; as well as operating a premier fresh produce distribution network. SpartanNash serves customer locations in all 50 states and the District of Columbia, Europe, Cuba, Puerto Rico, Honduras, Iraq, Kuwait, Bahrain, Qatar and Djibouti. SpartanNash currently operates 148 supermarkets, primarily under the banners of Family Fare, Martin's Super Markets, D&W Fresh Market, VG's Grocery and Dan's Supermarket. Through its MDV military division, SpartanNash is a leading distributor of grocery products to U.S. military commissaries.

Forward-Looking Statements

This press release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These include statements preceded by, followed by or that otherwise include the words "outlook," "believe," "anticipates," "continue," "expects," "guidance," "trend," "on track," "encouraged" or "plan" or similar expressions. The statements in the "Outlook" section of this press release are inherently forward looking. Forward-looking statements relating to expectations about future results or events are based upon information available to SpartanNash as of today's date, and are not guarantees of the future performance of the Company, and actual results may vary materially from the results and expectations discussed. Additional risks and uncertainties include, but are not limited to, disruption associated with the COVID-19 pandemic and the Company's ability to compete in the highly competitive grocery distribution, retail grocery, and military distribution industries. Additional information concerning these and other risks is contained in SpartanNash's most recently filed Annual Report on Form 10-K, recent Current Reports on Form 8-K and other SEC filings. All subsequent written and oral forward-looking statements concerning SpartanNash, or other matters and attributable to SpartanNash or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. SpartanNash does not undertake any obligation to publicly update any of these forward-looking statements to reflect events or circumstances that may arise after the date hereof.

(1) A reconciliation of operating earnings to adjusted operating earnings, a non-GAAP financial measure, is provided in Table 3 below.
(2) A reconciliation of net earnings to adjusted earnings from continuing operations, a non-GAAP financial measure, is provided in Table 4 below.
(3) A reconciliation of net earnings to Adjusted EBITDA, a non-GAAP financial measure, is provided in Table 2 below.
(4) A reconciliation of net cash provided by operating activities to free cash flow, a non-GAAP financial measure, is provided in Table 6 below.
(5) 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.
(6) 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.
(7) A reconciliation of projected earnings per share from continuing operations to adjusted earnings per share from continuing operations, a non-GAAP financial measure, is provided in Table 8 below.

 
 

SPARTANNASH COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)

 
 

 

12 Weeks Ended

 

 

28 Weeks Ended

 

 

 

July 17,

 

 

July 11,

 

 

July 17,

 

 

July 11,

 

 

(In thousands, except per share amounts)

2021

 

 

2020

 

 

2021

 

 

2020

 

 

Net sales

$

 

2,106,560

 

 

$

 

2,184,101

 

 

$

 

4,764,359

 

 

$

 

5,040,557

 

 

Cost of sales

 

 

1,772,933

 

 

 

 

1,845,727

 

 

 

 

4,012,702

 

 

 

 

4,278,616

 

 

Gross profit

 

 

333,627

 

 

 

 

338,374

 

 

 

 

751,657

 

 

 

 

761,941

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

304,248

 

 

 

 

300,727

 

 

 

 

692,185

 

 

 

 

692,027

 

 

Acquisition and integration

 

 

121

 

 

 

 

-

 

 

 

 

180

 

 

 

 

-

 

 

Restructuring and asset impairment, net

 

 

3,337

 

 

 

 

3,675

 

 

 

 

3,176

 

 

 

 

13,912

 

 

Total operating expenses

 

 

307,706

 

 

 

 

304,402

 

 

 

 

695,541

 

 

 

 

705,939

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings

 

 

25,921

 

 

 

 

33,972

 

 

 

 

56,116

 

 

 

 

56,002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expenses and (income)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

3,267

 

 

 

 

3,650

 

 

 

 

7,856

 

 

 

 

11,288

 

 

Other, net

 

 

(10

)

 

 

 

(63

)

 

 

 

(276

)

 

 

 

(1,104

)

 

Total other expenses, net

 

 

3,257

 

 

 

 

3,587

 

 

 

 

7,580

 

 

 

 

10,184

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before income taxes

 

 

22,664

 

 

 

 

30,385

 

 

 

 

48,536

 

 

 

 

45,818

 

 

Income tax expense

 

 

5,850

 

 

 

 

1,918

 

 

 

 

12,206

 

 

 

 

1,949

 

 

Net earnings

$

 

16,814

 

 

$

 

28,467

 

 

$

 

36,330

 

 

$

 

43,869

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net earnings per share:

$

 

0.47

 

 

$

 

0.80

 

 

$

 

1.02

 

 

$

 

1.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net earnings per share:

$

 

0.47

 

 

$

 

0.80

 

 

$

 

1.01

 

 

$

 

1.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

35,693

 

 

 

 

35,706

 

 

 

 

35,734

 

 

 

 

35,972

 

 

Diluted

 

 

35,890

 

 

 

 

35,707

 

 

 

 

35,890

 

 

 

 

35,973

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SPARTANNASH COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

 

 

July 17,

 

 

January 2,

 

(In thousands)

2021

 

 

2021

 

Assets

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

 

24,136

 

 

$

 

19,903

 

Accounts and notes receivable, net

 

 

370,669

 

 

 

 

357,564

 

Inventories, net

 

 

538,494

 

 

 

 

541,785

 

Prepaid expenses and other current assets

 

 

59,621

 

 

 

 

72,229

 

Property and equipment held for sale

 

 

-

 

 

 

 

23,259

 

Total current assets

 

 

992,920

 

 

 

 

1,014,740

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

567,043

 

 

 

 

577,059

 

Goodwill

 

 

181,035

 

 

 

 

181,035

 

Intangible assets, net

 

 

113,335

 

 

 

 

116,142

 

Operating lease assets

 

 

264,231

 

 

 

 

289,173

 

Other assets, net

 

 

90,583

 

 

 

 

99,242

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

 

2,209,147

 

 

$

 

2,277,391

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

Accounts payable

$

 

441,888

 

 

$

 

464,784

 

Accrued payroll and benefits

 

 

90,398

 

 

 

 

113,789

 

Other accrued expenses

 

 

65,822

 

 

 

 

60,060

 

Current portion of operating lease liabilities

 

 

44,720

 

 

 

 

45,786

 

Current portion of long-term debt and finance lease liabilities

 

 

5,719

 

 

 

 

5,135

 

Total current liabilities

 

 

648,547

 

 

 

 

689,554

 

 

 

 

 

 

 

 

 

 

 

Long-term liabilities

 

 

 

 

 

 

 

 

 

Deferred income taxes

 

 

54,442

 

 

 

 

45,728

 

Operating lease liabilities

 

 

254,114

 

 

 

 

278,859

 

Other long-term liabilities

 

 

50,294

 

 

 

 

46,892

 

Long-term debt and finance lease liabilities

 

 

445,574

 

 

 

 

481,309

 

Total long-term liabilities

 

 

804,424

 

 

 

 

852,788

 

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

 

 

 

Common stock, voting, no par value; 100,000 shares authorized; 35,943 and 35,851 shares outstanding

 

 

490,870

 

 

 

 

491,819

 

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

 

 

-

 

 

 

 

-

 

Accumulated other comprehensive loss

 

 

(2,175

)

 

 

 

(2,276

)

Retained earnings

 

 

267,481

 

 

 

 

245,506

 

Total shareholders' equity

 

 

756,176

 

 

 

 

735,049

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

$

 

2,209,147

 

 

$

 

2,277,391

 

 

 

 

 

 

 

 

 

 

 

SPARTANNASH COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

 

 

 

 

 

28 Weeks Ended

 

(In thousands)

 

 

 

July 17, 2021

 

 

July 11, 2020

 

Cash flow activities

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

 

 

$

 

73,582

 

 

$

 

198,248

 

Net cash used in investing activities

 

 

 

 

 

(10,038

)

 

 

 

(21,844

)

Net cash used in financing activities

 

 

 

 

 

(59,311

)

 

 

 

(165,931

)

Net increase in cash and cash equivalents

 

 

 

 

 

4,233

 

 

 

 

10,473

 

Cash and cash equivalents at beginning of the period

 

 

 

 

 

19,903

 

 

 

 

24,172

 

Cash and cash equivalents at end of the period

 

 

 

$

 

24,136

 

 

$

 

34,645

 

 

SPARTANNASH COMPANY AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA
Table 1: Net Sales and Operating Earnings (Loss) by Segment
(Unaudited)

 

 

12 Weeks Ended

 

 

28 Weeks Ended

 

(In thousands)

July 17, 2021

 

 

July 11, 2020

 

 

July 17, 2021

 

 

July 11, 2020

 

Food Distribution Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

 

1,056,526

 

 

50.2

%

 

$

 

1,089,861

 

 

49.9

%

 

$

 

2,390,608

 

 

50.2

%

 

$

 

2,459,357

 

 

48.8

%

Operating earnings

 

 

16,678

 

 

 

 

 

 

 

14,409

 

 

 

 

 

 

 

37,824

 

 

 

 

 

 

 

25,799

 

 

 

 

Retail Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

 

619,977

 

 

29.4

%

 

 

 

631,257

 

 

28.9

%

 

 

 

1,359,421

 

 

28.5

%

 

 

 

1,413,824

 

 

28.0

%

Operating earnings

 

 

12,711

 

 

 

 

 

 

 

24,453

 

 

 

 

 

 

 

26,903

 

 

 

 

 

 

 

37,098

 

 

 

 

Military Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

 

430,057

 

 

20.4

%

 

 

 

462,983

 

 

21.2

%

 

 

 

1,014,330

 

 

21.3

%

 

 

 

1,167,376

 

 

23.2

%

Operating loss

 

 

(3,468

)

 

 

 

 

 

 

(4,890

)

 

 

 

 

 

 

(8,611

)

 

 

 

 

 

 

(6,895

)

 

 

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

 

2,106,560

 

 

100.0

%

 

$

 

2,184,101

 

 

100.0

%

 

$

 

4,764,359

 

 

100.0

%

 

$

 

5,040,557

 

 

100.0

%

Operating earnings

 

 

25,921

 

 

 

 

 

 

 

33,972

 

 

 

 

 

 

 

56,116

 

 

 

 

 

 

 

56,002

 

 

 

 

 

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, 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.

Current year adjusted operating earnings, adjusted earnings from continuing operations, and adjusted EBITDA exclude organizational realignment and severance associated with cost reduction initiatives. Organizational realignment includes benefits for associates terminated as part of a leadership transition plan 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 "Fresh Cut operating losses" subsequent to the decision to exit these operations during the first quarter, severance associated with cost reduction initiatives, and fees paid to a third-party advisory firm associated with Project One Team, the Company's initiative to drive growth while increasing efficiency and reducing costs. Pension termination income related to a refund from the annuity provider associated with the final reconciliation of participant data is excluded from adjusted earnings from continuing operations. 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

 

 

28 Weeks Ended

 

(In thousands)

July 17, 2021

 

 

July 11, 2020

 

 

July 17, 2021

 

 

July 11, 2020

 

Net earnings

$

 

16,814

 

 

$

 

28,467

 

 

$

 

36,330

 

 

$

 

43,869

 

Income tax expense

 

 

5,850

 

 

 

 

1,918

 

 

 

 

12,206

 

 

 

 

1,949

 

Other expenses, net

 

 

3,257

 

 

 

 

3,587

 

 

 

 

7,580

 

 

 

 

10,184

 

Operating earnings

 

 

25,921

 

 

 

 

33,972

 

 

 

 

56,116

 

 

 

 

56,002

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIFO expense

 

 

2,902

 

 

 

 

1,187

 

 

 

 

4,557

 

 

 

 

2,771

 

Depreciation and amortization

 

 

21,406

 

 

 

 

20,097

 

 

 

 

49,497

 

 

 

 

47,753

 

Acquisition and integration

 

 

121

 

 

 

 

-

 

 

 

 

180

 

 

 

 

-

 

Restructuring and asset impairment, net

 

 

3,337

 

 

 

 

3,675

 

 

 

 

3,176

 

 

 

 

13,912

 

Costs associated with Project One Team

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

493

 

Organizational realignment, net

 

 

(52

)

 

 

 

-

 

 

 

 

589

 

 

 

 

-

 

Severance associated with cost reduction initiatives

 

 

13

 

 

 

 

(75

)

 

 

 

138

 

 

 

 

5,081

 

Stock-based compensation

 

 

974

 

 

 

 

1,905

 

 

 

 

5,164

 

 

 

 

4,148

 

Stock warrant

 

 

430

 

 

 

 

-

 

 

 

 

1,075

 

 

 

 

-

 

Non-cash rent

 

 

(1,091

)

 

 

 

(1,199

)

 

 

 

(1,986

)

 

 

 

(2,793

)

Fresh Cut operating losses

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

2,262

 

(Gain) loss on disposal of assets

 

 

(80

)

 

 

 

(484

)

 

 

 

(262

)

 

 

 

3,427

 

Other non-cash charges

 

 

478

 

 

 

 

99

 

 

 

 

958

 

 

 

 

99

 

Adjusted EBITDA

$

 

54,359

 

 

$

 

59,177

 

 

$

 

119,202

 

 

$

 

133,155

 

 

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

 

 

28 Weeks Ended

 

(In thousands)

July 17, 2021

 

 

July 11, 2020

 

 

July 17, 2021

 

 

July 11, 2020

 

Food Distribution:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings

$

 

16,678

 

 

$

 

14,409

 

 

$

 

37,824

 

 

$

 

25,799

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIFO expense

 

 

1,626

 

 

 

 

595

 

 

 

 

2,420

 

 

 

 

1,389

 

Depreciation and amortization

 

 

7,604

 

 

 

 

6,965

 

 

 

 

17,394

 

 

 

 

17,148

 

Restructuring and asset impairment, net

 

 

781

 

 

 

 

3,462

 

 

 

 

763

 

 

 

 

12,684

 

Costs associated with Project One Team

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

265

 

Organizational realignment, net

 

 

(26

)

 

 

 

-

 

 

 

 

287

 

 

 

 

-

 

Severance associated with cost reduction initiatives

 

 

4

 

 

 

 

(37

)

 

 

 

103

 

 

 

 

3,143

 

Stock-based compensation

 

 

436

 

 

 

 

997

 

 

 

 

2,365

 

 

 

 

2,002

 

Stock warrant

 

 

430

 

 

 

 

-

 

 

 

 

1,075

 

 

 

 

-

 

Non-cash rent

 

 

143

 

 

 

 

36

 

 

 

 

917

 

 

 

 

94

 

Fresh Cut operating losses

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

2,262

 

(Gain) loss on disposal of assets

 

 

(62

)

 

 

 

(521

)

 

 

 

(99

)

 

 

 

1,619

 

Other non-cash charges

 

 

283

 

 

 

 

52

 

 

 

 

517

 

 

 

 

51

 

Adjusted EBITDA

$

 

27,897

 

 

$

 

25,958

 

 

$

 

63,566

 

 

$

 

66,456

 

Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings

$

 

12,711

 

 

$

 

24,453

 

 

$

 

26,903

 

 

$

 

37,098

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIFO expense

 

 

477

 

 

 

 

258

 

 

 

 

892

 

 

 

 

601

 

Depreciation and amortization

 

 

10,685

 

 

 

 

10,325

 

 

 

 

24,926

 

 

 

 

24,081

 

Acquisition and integration

 

 

121

 

 

 

 

-

 

 

 

 

180

 

 

 

 

-

 

Restructuring and asset impairment, net

 

 

2,556

 

 

 

 

213

 

 

 

 

2,413

 

 

 

 

1,228

 

Costs associated with Project One Team

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

164

 

Organizational realignment, net

 

 

(19

)

 

 

 

-

 

 

 

 

215

 

 

 

 

-

 

Severance associated with cost reduction initiatives

 

 

-

 

 

 

 

(19

)

 

 

 

29

 

 

 

 

1,432

 

Stock-based compensation

 

 

390

 

 

 

 

642

 

 

 

 

1,870

 

 

 

 

1,392

 

Non-cash rent

 

 

(1,145

)

 

 

 

(1,150

)

 

 

 

(2,697

)

 

 

 

(2,684

)

(Gain) loss on disposal of assets

 

 

(2

)

 

 

 

66

 

 

 

 

(125

)

 

 

 

1,871

 

Other non-cash charges

 

 

139

 

 

 

 

34

 

 

 

 

314

 

 

 

 

34

 

Adjusted EBITDA

$

 

25,913

 

 

$

 

34,822

 

 

$

 

54,920

 

 

$

 

65,217

 

Military:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

$

 

(3,468

)

 

$

 

(4,890

)

 

$

 

(8,611

)

 

$

 

(6,895

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIFO expense

 

 

799

 

 

 

 

335

 

 

 

 

1,245

 

 

 

 

781

 

Depreciation and amortization

 

 

3,117

 

 

 

 

2,807

 

 

 

 

7,177

 

 

 

 

6,524

 

Costs associated with Project One Team

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

64

 

Organizational realignment, net

 

 

(7

)

 

 

 

-

 

 

 

 

87

 

 

 

 

-

 

Severance associated with cost reduction initiatives

 

 

9

 

 

 

 

(19

)

 

 

 

6

 

 

 

 

506

 

Stock-based compensation

 

 

148

 

 

 

 

266

 

 

 

 

929

 

 

 

 

754

 

Non-cash rent

 

 

(89

)

 

 

 

(85

)

 

 

 

(206

)

 

 

 

(203

)

Gain on disposal of assets

 

 

(16

)

 

 

 

(29

)

 

 

 

(38

)

 

 

 

(63

)

Other non-cash charges

 

 

56

 

 

 

 

12

 

 

 

 

127

 

 

 

 

14

 

Adjusted EBITDA

$

 

549

 

 

$

 

(1,603

)

 

$

 

716

 

 

$

 

1,482

 

Notes: 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 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, cash flows from operating activities 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

 

 

28 Weeks Ended

 

(In thousands)

July 17, 2021

 

 

July 11, 2020

 

 

July 17, 2021

 

 

July 11, 2020

 

Operating earnings

$

 

25,921

 

 

$

 

33,972

 

 

$

 

56,116

 

 

$

 

56,002

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition and integration

 

 

121

 

 

 

 

-

 

 

 

 

180

 

 

 

 

-

 

Restructuring and asset impairment, net

 

 

3,337

 

 

 

 

3,675

 

 

 

 

3,176

 

 

 

 

13,912

 

Costs associated with Project One Team

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

493

 

Organizational realignment, net

 

 

(52

)

 

 

 

-

 

 

 

 

589

 

 

 

 

-

 

Expenses associated with tax planning

 

 

-

 

 

 

 

97

 

 

 

 

-

 

 

 

 

97

 

Severance associated with cost reduction initiatives

 

 

13

 

 

 

 

(75

)

 

 

 

138

 

 

 

 

5,081

 

Fresh Cut operating losses

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

2,262

 

Adjusted operating earnings

$

 

29,340

 

 

$

 

37,669

 

 

$

 

60,199

 

 

$

 

77,847

 

 

 

12 Weeks Ended

 

 

28 Weeks Ended

 

(In thousands)

July 17, 2021

 

 

July 11, 2020

 

 

July 17, 2021

 

 

July 11, 2020

 

Food Distribution:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings

$

 

16,678

 

 

$

 

14,409

 

 

$

 

37,824

 

 

$

 

25,799

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and asset impairment, net

 

 

781

 

 

 

 

3,462

 

 

 

 

763

 

 

 

 

12,684

 

Costs associated with Project One Team

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

265

 

Organizational realignment, net

 

 

(26

)

 

 

 

-

 

 

 

 

287

 

 

 

 

-

 

Expenses associated with tax planning

 

 

-

 

 

 

 

52

 

 

 

 

-

 

 

 

 

52

 

Severance associated with cost reduction initiatives

 

 

4

 

 

 

 

(37

)

 

 

 

103

 

 

 

 

3,143

 

Fresh Cut operating losses

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

2,262

 

Adjusted operating earnings

$

 

17,437

 

 

$

 

17,886

 

 

$

 

38,977

 

 

$

 

44,205

 

Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings

$

 

12,711

 

 

$

 

24,453

 

 

$

 

26,903

 

 

$

 

37,098

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition and integration

 

 

121

 

 

 

 

-

 

 

 

 

180

 

 

 

 

-

 

Restructuring and asset impairment, net

 

 

2,556

 

 

 

 

213

 

 

 

 

2,413

 

 

 

 

1,228

 

Costs associated with Project One Team

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

164

 

Organizational realignment, net

 

 

(19

)

 

 

 

-

 

 

 

 

215

 

 

 

 

-

 

Expenses associated with tax planning

 

 

-

 

 

 

 

32

 

 

 

 

-

 

 

 

 

32

 

Severance associated with cost reduction initiatives

 

 

-

 

 

 

 

(19

)

 

 

 

29

 

 

 

 

1,432

 

Adjusted operating earnings

$

 

15,369

 

 

$

 

24,679

 

 

$

 

29,740

 

 

$

 

39,954

 

Military:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

$

 

(3,468

)

 

$

 

(4,890

)

 

$

 

(8,611

)

 

$

 

(6,895

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs associated with Project One Team

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

64

 

Organizational realignment, net

 

 

(7

)

 

 

 

-

 

 

 

 

87

 

 

 

 

-

 

Expenses associated with tax planning

 

 

-

 

 

 

 

13

 

 

 

 

-

 

 

 

 

13

 

Severance associated with cost reduction initiatives

 

 

9

 

 

 

 

(19

)

 

 

 

6

 

 

 

 

506

 

Adjusted operating loss

$

 

(3,466

)

 

$

 

(4,896

)

 

$

 

(8,518

)

 

$

 

(6,312

)

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 accounting principles generally accepted in the United States of America and should not be considered as a substitute for operating earnings, cash flows from operating activities and other income or cash flow 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 Net Earnings to
Adjusted Earnings from Continuing Operations
(A Non-GAAP Financial Measure)
(Unaudited)

 
 

 

12 Weeks Ended

 

 

 

July 17, 2021

 

 

July 11, 2020

 

 

 

 

 

 

per diluted

 

 

 

 

 

per diluted

 

 

(In thousands, except per share amounts)

Earnings

 

 

share

 

 

Earnings

 

 

share

 

 

Net earnings

$

 

16,814

 

 

$

 

0.47

 

 

$

 

28,467

 

 

$

 

0.80

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition and integration

 

 

121

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

Restructuring and asset impairment, net

 

 

3,337

 

 

 

 

 

 

 

 

 

3,675

 

 

 

 

 

 

 

Organizational realignment, net

 

 

(52

)

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

Expenses associated with tax planning

 

 

-

 

 

 

 

 

 

 

 

 

97

 

 

 

 

 

 

 

Severance associated with cost reduction initiatives

 

 

13

 

 

 

 

 

 

 

 

 

(75

)

 

 

 

 

 

 

Total adjustments

 

 

3,419

 

 

 

 

 

 

 

 

 

3,697

 

 

 

 

 

 

 

Income tax effect on adjustments (a)

 

 

(862

)

 

 

 

 

 

 

 

 

(903

)

 

 

 

 

 

 

Impact of CARES Act (b)

 

 

-

 

 

 

 

 

 

 

 

 

(5,165

)

 

 

 

 

 

 

Total adjustments, net of taxes

 

 

2,557

 

 

 

 

0.07

 

 

 

 

(2,371

)

 

 

 

(0.07

)

 

Adjusted earnings from continuing operations

$

 

19,371

 

 

$

 

0.54

 

 

$

 

26,096

 

 

$

 

0.73

 

 

 

 

28 Weeks Ended

 

 

 

July 17, 2021

 

 

July 11, 2020

 

 

 

 

 

 

per diluted

 

 

 

 

 

per diluted

 

 

(In thousands, except per share amounts)

Earnings

 

 

share

 

 

Earnings

 

 

share

 

 

Net earnings

$

 

36,330

 

 

$

 

1.01

 

 

$

 

43,869

 

 

$

 

1.22

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition and integration

 

 

180

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

Restructuring and asset impairment, net

 

 

3,176

 

 

 

 

 

 

 

 

 

13,912

 

 

 

 

 

 

 

Costs associated with Project One Team

 

 

-

 

 

 

 

 

 

 

 

 

493

 

 

 

 

 

 

 

Organizational realignment, net

 

 

589

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

Expenses associated with tax planning

 

 

-

 

 

 

 

 

 

 

 

 

97

 

 

 

 

 

 

 

Severance associated with cost reduction initiatives

 

 

138

 

 

 

 

 

 

 

 

 

5,081

 

 

 

 

 

 

 

Fresh Cut operating losses

 

 

-

 

 

 

 

 

 

 

 

 

2,262

 

 

 

 

 

 

 

Pension termination

 

 

-

 

 

 

 

 

 

 

 

 

(1,004

)

 

 

 

 

 

 

Total adjustments

 

 

4,083

 

 

 

 

 

 

 

 

 

20,841

 

 

 

 

 

 

 

Income tax effect on adjustments (a)

 

 

(1,024

)

 

 

 

 

 

 

 

 

(4,997

)

 

 

 

 

 

 

Impact of CARES Act (b)

 

 

-

 

 

 

 

 

 

 

 

 

(9,510

)

 

 

 

 

 

 

Total adjustments, net of taxes

 

 

3,059

 

 

 

 

0.09

 

 

 

 

6,334

 

 

 

 

0.18

 

 

Adjusted earnings from continuing operations

$

 

39,389

 

 

$

 

1.10

 

 

$

 

50,203

 

 

$

 

1.40

 

 

(a)

The income tax effect on adjustments is computed by applying the applicable tax rate to the adjustments.

(b)

Represents tax impacts attributable to the Coronavirus Aid, Relief and Economic Security ("CARES") Act, primarily related to additional deductions and the utilization of net operating loss carrybacks.

Notes: Adjusted earnings from continuing operations is a non-GAAP operating financial measure that the Company defines as net 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 earnings from continuing operations is not a measure of performance under accounting principles generally accepted in the United States of America 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)

 

 

July 17,

 

 

January 2,

 

(In thousands)

2021

 

 

2020

 

Current portion of long-term debt and finance lease liabilities

$

 

5,719

 

 

$

 

5,135

 

Long-term debt and finance lease liabilities

 

 

445,574

 

 

 

 

481,309

 

Total debt

 

 

451,293

 

 

 

 

486,444

 

Cash and cash equivalents

 

 

(24,136

)

 

 

 

(19,903

)

Net long-term debt

$

 

427,157

 

 

$

 

466,541

 

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)

 

 

 

 

 

28 Weeks Ended

 

(In thousands)

 

 

 

July 17, 2021

 

 

July 11, 2020

 

Net cash provided by operating activities

 

 

 

$

 

73,582

 

 

$

 

198,248

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

 

 

 

39,838

 

 

 

 

30,609

 

Free cash flow

 

 

 

$

 

33,744

 

 

$

 

167,639

 

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)

 
 

 

 

 

 

28 Weeks Ended

 

(In thousands)

 

 

 

July 17, 2021

 

 

July 11, 2020

 

Purchases of property and equipment

 

 

 

$

 

39,838

 

 

$

 

30,609

 

Plus:

 

 

 

 

 

 

 

 

 

 

 

 

Cloud computing spend

 

 

 

 

 

3,971

 

 

 

 

4,970

 

Capital expenditures and IT capital

 

 

 

$

 

43,809

 

 

$

 

35,579

 

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.

 

Table 8: Reconciliation of Projected Net Earnings per Diluted Share to
Projected Adjusted Earnings per Diluted Share from Continuing Operations
(A Non-GAAP Financial Measure)
(Unaudited)

 

 

52 Weeks Ending
January 1, 2022

 

 

Low

 

 

High

 

Net Earnings per Diluted Share

$

 

1.56

 

 

$

 

1.69

 

Adjustments, net of taxes:

 

 

 

 

 

 

 

 

 

Acquisition and integration expenses

 

 

0.01

 

 

 

 

0.01

 

Restructuring and asset impairment, net

 

 

0.10

 

 

 

 

0.08

 

Severance associated with cost reduction initiatives

 

 

0.01

 

 

 

 

0.01

 

Organizational realignment, net

 

 

0.02

 

 

 

 

0.01

 

Projected Adjusted Earnings per Diluted Share from Continuing Operations

$

 

1.70

 

 

$

 

1.80

 

 

Investor Contacts:
Jason Monaco
Executive Vice President and Chief Financial Officer
[email protected]

Chris Mandeville
ICR
Spartan[email protected]

Anna Kate Heller
ICR
[email protected]

Media Contact:
Adrienne Chance
Vice President Corporate Affairs and Communications
[email protected]


Powered by B2i Technologies, Inc.