Albertsons Companies, Inc. Reports Fourth Quarter and Full Year Results
Fourth Quarter of Fiscal 2023 Highlights
- Identical sales increased 1.0%
- Digital sales increased 24%
- Loyalty members increased 16% to 39.8 million
-
Net income of
$251 million , or$0.43 per share -
Adjusted net income of
$318 million , or$0.54 per share -
Adjusted EBITDA of
$916 million
Fiscal 2023 Highlights
- Identical sales increased 3.0%
- Digital sales increased 22%
-
Net income of
$1,296 million , or$2.23 per share -
Adjusted net income of
$1,694 million , or$2.88 per share -
Adjusted EBITDA of
$4,318 million
"We delivered another solid quarter amidst a difficult industry backdrop," said
Fourth Quarter of Fiscal 2023 Results
Net sales and other revenue was
Gross margin rate increased to 28.0% during the fourth quarter of fiscal 2023 compared to 27.8% during the fourth quarter of fiscal 2022. Excluding the impact of fuel and LIFO, gross margin rate decreased 58 basis points compared to the fourth quarter of fiscal 2022. The strong growth in pharmacy operations, which carries an overall lower gross margin rate, increases in shrink, and increases in picking and delivery costs related to the continued growth in our digital sales were the primary drivers of the decrease, partially offset by our procurement and sourcing productivity initiatives. In addition, the benefits from our productivity initiatives allowed us to continue to provide incremental targeted price investments to our customers during the fourth quarter of fiscal 2023.
Selling and administrative expenses decreased to 25.7% of Net sales and other revenue during the fourth quarter of fiscal 2023 compared to 25.8% during the fourth quarter of fiscal 2022. Excluding the impacts of fuel and a legal settlement in the fourth quarter of fiscal 2022, Selling and administrative expenses as a percentage of Net sales and other revenue increased 13 basis points. The increase in Selling and administrative expenses as a percentage of Net sales and other revenue was primarily attributable to an increase in operating expenses related to the ongoing development of our digital and omnichannel capabilities, ongoing Merger-related costs, increased store occupancy costs and additional third-party store security services, partially offset by lower employee costs, which includes the benefit of ongoing productivity initiatives, and lower depreciation and amortization. We expect a continued trend in increased digital spend as we enhance and maintain the modernization of our technology platforms.
Net loss on property dispositions and impairment losses was
Interest expense, net was
Other expense, net was
Income tax expense was
Net income was
Adjusted net income was
Adjusted EBITDA was
Capital Expenditures
During fiscal 2023, capital expenditures were
Merger Agreement
As previously announced, on
About
Forward-Looking Statements and Factors That Impact Our Operating Results and Trends
This press release includes "forward-looking statements" within the meaning of the federal securities laws. The "forward-looking statements" include our current expectations, assumptions, estimates and projections about our business, our industry and the outcome of the Merger. They include statements relating to our future operating or financial performance which the Company believes to be reasonable at this time. You can identify forward-looking statements by the use of words such as "outlook," "may," "should," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future" and "intends" and similar expressions which are intended to identify forward-looking statements.
These statements are not guarantees of future performance and are subject to numerous risks and uncertainties which are beyond our control and difficult to predict and could cause actual results to differ materially from the results expressed or implied by the statements. Risks and uncertainties that could cause actual results to differ materially from such statements include:
- uncertainties related to the Merger, including our ability to close the transactions contemplated by the Merger Agreement, and the impact of the costs related to the Merger;
- erosion of consumer confidence as a result of the Merger and the transactions contemplated by the Merger Agreement;
- changes in macroeconomic conditions and uncertainty regarding the geopolitical environment;
- rates of food price inflation or deflation, as well as fuel and commodity prices;
- changes in consumer behavior and spending due to the impact of macroeconomic factors, including the expiration of student loan payment deferments;
- challenges in attracting, retaining and motivating our employees until the closing of the Merger;
- failure to achieve productivity initiatives, unexpected changes in our objectives and plans, inability to implement our strategies, plans, programs and initiatives, or enter into strategic transactions, investments or partnerships in the future on terms acceptable to us, or at all;
- changes in wage rates, ability to attract and retain qualified associates and negotiate acceptable contracts with labor unions;
- litigation related to the transactions contemplated by the Merger Agreement;
- restrictions on our ability to operate as a result of the Merger Agreement;
- availability and cost of goods used in our food products;
- challenges with our supply chain;
- operational and financial effects resulting from cyber incidents at the Company or at a third party, including outages in the cloud environment and the effectiveness of business continuity plans during a ransomware or other cyber incident; and
- continued reduction in governmental assistance programs such as SNAP.
All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements and risk factors. Forward-looking statements contained in this press release reflect our view only as of the date of this press release. We undertake no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
In evaluating our financial results and forward-looking statements, you should carefully consider the risks and uncertainties more fully described in the "Risk Factors" section or other sections in our reports filed with the
Additional Information and Where to Find It
The Company has filed with the
Non-GAAP Measures and Identical Sales
Non-GAAP Measures. EBITDA, Adjusted EBITDA, Adjusted net income, Adjusted net income per Class A common share and Net debt ratio (collectively, the "Non-GAAP Measures") are performance measures that provide supplemental information the Company believes is useful to analysts and investors to evaluate its ongoing results of operations, when considered alongside other GAAP measures such as net income, operating income, gross margin, and net income per Class A common share. These Non-GAAP Measures exclude the financial impact of items management does not consider in assessing the Company's ongoing core operating performance, and thereby provide useful measures to analysts and investors of its operating performance on a period-to-period basis. Other companies may have different definitions of Non-GAAP Measures and provide for different adjustments, and comparability to the Company's results of operations may be impacted by such differences. The Company also uses Adjusted EBITDA and Net debt ratio for board of director and bank compliance reporting. The Company's presentation of Non-GAAP Measures should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items.
Identical Sales. As used in this earnings release, the term "identical sales" includes stores operating during the same period in both the current fiscal year and the prior fiscal year, comparing sales on a daily basis. Direct to consumer digital sales are included in identical sales, and fuel sales are excluded from identical sales.
Consolidated Statements of Operations (dollars in millions, except per share data) (unaudited) |
|||||||||||||||
|
Fourth Quarter
|
|
Fourth Quarter
|
|
Fiscal
|
|
Fiscal
|
||||||||
Net sales and other revenue |
$ |
18,339.5 |
|
|
$ |
18,265.1 |
|
|
$ |
79,237.7 |
|
|
$ |
77,649.7 |
|
Cost of sales |
|
13,195.3 |
|
|
|
13,180.8 |
|
|
|
57,192.0 |
|
|
|
55,894.1 |
|
Gross margin |
|
5,144.2 |
|
|
|
5,084.3 |
|
|
|
22,045.7 |
|
|
|
21,755.6 |
|
|
|
|
|
|
|
|
|
||||||||
Selling and administrative expenses |
|
4,717.2 |
|
|
|
4,712.1 |
|
|
|
19,932.9 |
|
|
|
19,596.0 |
|
Loss (gain) on property dispositions and impairment losses, net |
|
0.8 |
|
|
|
(61.4 |
) |
|
|
43.9 |
|
|
|
(147.5 |
) |
Operating income |
|
426.2 |
|
|
|
433.6 |
|
|
|
2,068.9 |
|
|
|
2,307.1 |
|
|
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
109.0 |
|
|
|
91.6 |
|
|
|
492.1 |
|
|
|
404.6 |
|
Other expense (income), net |
|
2.4 |
|
|
|
(9.5 |
) |
|
|
(12.2 |
) |
|
|
(33.0 |
) |
Income before income taxes |
|
314.8 |
|
|
|
351.5 |
|
|
|
1,589.0 |
|
|
|
1,935.5 |
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense |
|
64.3 |
|
|
|
40.4 |
|
|
|
293.0 |
|
|
|
422.0 |
|
Net income |
$ |
250.5 |
|
|
$ |
311.1 |
|
|
$ |
1,296.0 |
|
|
$ |
1,513.5 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per Class A common share: |
|
|
|
|
|
|
|
||||||||
Basic net income per Class A common share |
$ |
0.43 |
|
|
$ |
0.54 |
|
|
$ |
2.25 |
|
|
$ |
2.29 |
|
Diluted net income per Class A common share |
|
0.43 |
|
|
|
0.54 |
|
|
|
2.23 |
|
|
|
2.27 |
|
Weighted average Class A common shares outstanding (in millions) |
|
|
|
|
|
|
|
||||||||
Basic |
|
576.3 |
|
|
|
538.0 |
|
|
|
575.4 |
|
|
|
529.0 |
|
Diluted |
|
583.0 |
|
|
|
580.1 |
|
|
|
581.1 |
|
|
|
534.0 |
|
|
|
|
|
|
|
|
|
||||||||
% of net sales and other revenue |
|
|
|
|
|
|
|
||||||||
Gross margin |
|
28.0 |
% |
|
|
27.8 |
% |
|
|
27.8 |
% |
|
|
28.0 |
% |
Selling and administrative expenses |
|
25.7 |
% |
|
|
25.8 |
% |
|
|
25.2 |
% |
|
|
25.2 |
% |
|
|
|
|
|
|
|
|
||||||||
Store data |
|
|
|
|
|
|
|
||||||||
Number of stores at end of quarter/year |
|
2,269 |
|
|
|
2,271 |
|
|
|
|
|
Consolidated Balance Sheets (in millions) (unaudited) |
|||||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
188.7 |
|
|
$ |
455.8 |
|
Receivables, net |
|
724.4 |
|
|
|
687.6 |
|
Inventories, net |
|
4,945.2 |
|
|
|
4,782.0 |
|
Prepaid assets |
|
370.3 |
|
|
|
302.7 |
|
Other current assets |
|
58.9 |
|
|
|
42.3 |
|
Total current assets |
|
6,287.5 |
|
|
|
6,270.4 |
|
|
|
|
|
||||
Property and equipment, net |
|
9,570.3 |
|
|
|
9,358.7 |
|
Operating lease right-of-use assets |
|
5,981.6 |
|
|
|
5,879.1 |
|
Intangible assets, net |
|
2,434.5 |
|
|
|
2,465.4 |
|
|
|
1,201.0 |
|
|
|
1,201.0 |
|
Other assets |
|
746.2 |
|
|
|
993.6 |
|
TOTAL ASSETS |
$ |
26,221.1 |
|
|
$ |
26,168.2 |
|
|
|
|
|
||||
LIABILITIES |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
4,218.2 |
|
|
$ |
4,173.1 |
|
Accrued salaries and wages |
|
1,302.6 |
|
|
|
1,317.4 |
|
Current maturities of long-term debt and finance lease obligations |
|
285.2 |
|
|
|
1,075.7 |
|
Current operating lease obligations |
|
677.6 |
|
|
|
664.8 |
|
Current portion of self-insurance liability |
|
367.7 |
|
|
|
355.5 |
|
Taxes other than income taxes |
|
325.4 |
|
|
|
382.3 |
|
Other current liabilities |
|
281.0 |
|
|
|
460.0 |
|
Total current liabilities |
|
7,457.7 |
|
|
|
8,428.8 |
|
|
|
|
|
||||
Long-term debt and finance lease obligations |
|
7,783.4 |
|
|
|
7,834.4 |
|
Long-term operating lease obligations |
|
5,493.2 |
|
|
|
5,386.2 |
|
Deferred income taxes |
|
807.6 |
|
|
|
854.0 |
|
Long-term self-insurance liability |
|
899.9 |
|
|
|
878.6 |
|
Other long-term liabilities |
|
1,031.8 |
|
|
|
1,129.8 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
Series A convertible preferred stock |
|
— |
|
|
|
45.7 |
|
|
|
|
|
||||
STOCKHOLDERS' EQUITY |
|
|
|
||||
Class A common stock |
|
5.9 |
|
|
|
5.9 |
|
Additional paid-in capital |
|
2,129.6 |
|
|
|
2,072.7 |
|
|
|
(304.2 |
) |
|
|
(352.2 |
) |
Accumulated other comprehensive income |
|
88.0 |
|
|
|
69.3 |
|
Retained earnings (accumulated deficit) |
|
828.2 |
|
|
|
(185.0 |
) |
Total stockholders' equity |
|
2,747.5 |
|
|
|
1,610.7 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
26,221.1 |
|
|
$ |
26,168.2 |
|
Consolidated Statements of Cash Flows (in millions) (unaudited) |
|||||||
|
Fiscal
|
|
Fiscal
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
1,296.0 |
|
|
$ |
1,513.5 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Loss (gain) on property dispositions and impairment losses, net |
|
43.9 |
|
|
|
(147.5 |
) |
Depreciation and amortization |
|
1,779.0 |
|
|
|
1,807.1 |
|
Operating lease right-of-use assets amortization |
|
665.2 |
|
|
|
652.7 |
|
LIFO expense |
|
52.0 |
|
|
|
268.0 |
|
Deferred income tax |
|
(112.6 |
) |
|
|
12.9 |
|
Pension and post-retirement benefits income |
|
(2.9 |
) |
|
|
(21.7 |
) |
Contributions to pension and post-retirement benefit plans |
|
(18.3 |
) |
|
|
(27.3 |
) |
Gain on interest rate swaps and energy hedges, net |
|
(3.2 |
) |
|
|
(8.4 |
) |
Deferred financing costs |
|
15.6 |
|
|
|
16.9 |
|
Equity-based compensation expense |
|
104.5 |
|
|
|
138.3 |
|
Other operating activities |
|
4.6 |
|
|
|
1.8 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Receivables, net |
|
(36.3 |
) |
|
|
(127.1 |
) |
Inventories, net |
|
(215.3 |
) |
|
|
(549.1 |
) |
Accounts payable, accrued salaries and wages and other accrued liabilities |
|
100.5 |
|
|
|
(164.2 |
) |
Operating lease liabilities |
|
(654.1 |
) |
|
|
(637.7 |
) |
Pension withdrawal liabilities |
|
(88.7 |
) |
|
|
(103.4 |
) |
Self-insurance assets and liabilities |
|
30.6 |
|
|
|
56.2 |
|
Other operating assets and liabilities |
|
(301.0 |
) |
|
|
172.9 |
|
Net cash provided by operating activities |
|
2,659.5 |
|
|
|
2,853.9 |
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Payments for property, equipment and intangibles, including lease buyouts |
|
(2,031.3 |
) |
|
|
(2,153.9 |
) |
Proceeds from sale of assets |
|
217.6 |
|
|
|
195.2 |
|
Other investing activities |
|
67.0 |
|
|
|
(18.6 |
) |
Net cash used in investing activities |
|
(1,746.7 |
) |
|
|
(1,977.3 |
) |
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of long-term debt, including ABL facility |
|
150.0 |
|
|
|
2,150.0 |
|
Payments on long-term borrowings, including ABL facility |
|
(950.8 |
) |
|
|
(1,150.8 |
) |
Payments of obligations under finance leases |
|
(69.3 |
) |
|
|
(71.6 |
) |
Special dividend paid |
|
— |
|
|
|
(3,916.9 |
) |
Dividends paid on common stock |
|
(276.2 |
) |
|
|
(255.1 |
) |
Dividends paid on convertible preferred stock |
|
(0.8 |
) |
|
|
(65.3 |
) |
Employee tax withholding on vesting of restricted stock units |
|
(38.8 |
) |
|
|
(44.0 |
) |
Other financing activities |
|
2.5 |
|
|
|
(11.7 |
) |
Net cash used in financing activities |
|
(1,183.4 |
) |
|
|
(3,365.4 |
) |
|
|
|
|
||||
Net decrease in cash and cash equivalents and restricted cash |
|
(270.6 |
) |
|
|
(2,488.8 |
) |
Cash and cash equivalents and restricted cash at beginning of period |
|
463.8 |
|
|
|
2,952.6 |
|
Cash and cash equivalents and restricted cash at end of period |
$ |
193.2 |
|
|
$ |
463.8 |
|
Reconciliation of Non-GAAP Measures (in millions, except per share data) |
|||||||||||||||
The following tables reconcile Net income to Adjusted net income, and Net income per Class A common share to Adjusted net income per Class A common share: |
|||||||||||||||
|
Fourth Quarter
|
|
Fourth Quarter
|
|
Fiscal
|
|
Fiscal
|
||||||||
Numerator: |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income |
$ |
250.5 |
|
|
$ |
311.1 |
|
|
$ |
1,296.0 |
|
|
$ |
1,513.5 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Loss (gain) on interest rate swaps and energy hedges, net (d) |
|
2.9 |
|
|
|
4.5 |
|
|
|
(3.2 |
) |
|
|
(8.4 |
) |
Business transformation (1)(b) |
|
7.2 |
|
|
|
13.8 |
|
|
|
45.1 |
|
|
|
78.3 |
|
Equity-based compensation expense (b) |
|
24.0 |
|
|
|
41.7 |
|
|
|
104.5 |
|
|
|
138.3 |
|
Loss (gain) on property dispositions and impairment losses, net |
|
0.8 |
|
|
|
(61.4 |
) |
|
|
43.9 |
|
|
|
(147.5 |
) |
LIFO (benefit) expense (a) |
|
(35.8 |
) |
|
|
86.6 |
|
|
|
52.0 |
|
|
|
268.0 |
|
Government-mandated incremental COVID-19 pandemic related pay (2)(b) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10.8 |
|
Merger-related costs (3)(b) |
|
56.4 |
|
|
|
32.7 |
|
|
|
180.6 |
|
|
|
56.5 |
|
Certain legal and regulatory accruals and settlements, net (b) |
|
— |
|
|
|
57.0 |
|
|
|
(6.7 |
) |
|
|
100.7 |
|
Amortization of debt discount and deferred financing costs (c) |
|
3.6 |
|
|
|
3.9 |
|
|
|
15.5 |
|
|
|
16.8 |
|
Amortization of intangible assets resulting from acquisitions (b) |
|
11.1 |
|
|
|
11.8 |
|
|
|
48.6 |
|
|
|
50.9 |
|
Combined Plan (4)(b) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(19.0 |
) |
Miscellaneous adjustments (5)(f) |
|
17.4 |
|
|
|
6.0 |
|
|
|
41.4 |
|
|
|
52.1 |
|
Tax impact of adjustments to Adjusted net income |
|
(20.1 |
) |
|
|
(48.0 |
) |
|
|
(124.0 |
) |
|
|
(145.9 |
) |
Adjusted net income |
$ |
318.0 |
|
|
$ |
459.7 |
|
|
$ |
1,693.7 |
|
|
$ |
1,965.1 |
|
|
|
|
|
|
|
|
|
||||||||
Denominator: |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Weighted average Class A common shares outstanding - diluted |
|
583.0 |
|
|
|
580.1 |
|
|
|
581.1 |
|
|
|
534.0 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Convertible preferred stock (6) |
|
— |
|
|
|
— |
|
|
|
0.3 |
|
|
|
42.7 |
|
Restricted stock units and awards (7) |
|
5.5 |
|
|
|
4.1 |
|
|
|
6.4 |
|
|
|
5.9 |
|
Adjusted weighted average Class A common shares outstanding - diluted |
|
588.5 |
|
|
|
584.2 |
|
|
|
587.8 |
|
|
|
582.6 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted net income per Class A common share - diluted |
$ |
0.54 |
|
|
$ |
0.79 |
|
|
$ |
2.88 |
|
|
$ |
3.37 |
|
Reconciliation of Non-GAAP Measures (in millions, except per share data) |
|||||||||||||||
|
Fourth Quarter
|
|
Fourth Quarter
|
|
Fiscal
|
|
Fiscal
|
||||||||
Net income per Class A common share - diluted |
$ |
0.43 |
|
|
$ |
0.54 |
|
|
$ |
2.23 |
|
|
$ |
2.27 |
|
Convertible preferred stock (6) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.36 |
|
Non-GAAP adjustments (8) |
|
0.12 |
|
|
|
0.26 |
|
|
|
0.68 |
|
|
|
0.78 |
|
Restricted stock units and awards (7) |
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.03 |
) |
|
|
(0.04 |
) |
Adjusted net income per Class A common share - diluted |
$ |
0.54 |
|
|
$ |
0.79 |
|
|
$ |
2.88 |
|
|
$ |
3.37 |
|
The following table is a reconciliation of Adjusted net income to Adjusted EBITDA: |
|||||||||||||||
|
Fourth Quarter
|
|
Fourth Quarter
|
|
Fiscal
|
|
Fiscal
|
||||||||
Adjusted net income (9) |
$ |
318.0 |
|
|
$ |
459.7 |
|
|
$ |
1,693.7 |
|
|
$ |
1,965.1 |
|
Tax impact of adjustments to Adjusted net income |
|
20.1 |
|
|
|
48.0 |
|
|
|
124.0 |
|
|
|
145.9 |
|
Income tax expense |
|
64.3 |
|
|
|
40.4 |
|
|
|
293.0 |
|
|
|
422.0 |
|
Amortization of debt discount and deferred financing costs (c) |
|
(3.6 |
) |
|
|
(3.9 |
) |
|
|
(15.5 |
) |
|
|
(16.8 |
) |
Interest expense, net |
|
109.0 |
|
|
|
91.6 |
|
|
|
492.1 |
|
|
|
404.6 |
|
Amortization of intangible assets resulting from acquisitions (b) |
|
(11.1 |
) |
|
|
(11.8 |
) |
|
|
(48.6 |
) |
|
|
(50.9 |
) |
Depreciation and amortization (e) |
|
419.1 |
|
|
|
426.2 |
|
|
|
1,779.0 |
|
|
|
1,807.1 |
|
Adjusted EBITDA |
$ |
915.8 |
|
|
$ |
1,050.2 |
|
|
$ |
4,317.7 |
|
|
$ |
4,677.0 |
|
(1) |
Includes costs associated with third-party consulting fees related to our operational priorities and associated business transformation. |
|
(2) |
Represents incremental COVID-19 related pay legislatively required in certain municipalities in which we operate. |
|
(3) |
Primarily relates to third-party legal and advisor fees and retention program expense related to the proposed Merger and costs in connection with our previously-announced Board-led review of potential strategic alternatives. |
|
(4) |
Includes the |
|
(5) |
Primarily includes net realized and unrealized gains and losses related to non-operating investments, lease adjustments related to non-cash rent expense and costs incurred on leased surplus properties, adjustments for unconsolidated equity investments, certain contract terminations and other costs not considered in our core performance. |
|
(6) |
Represents the conversion of convertible preferred stock to the fully outstanding as-converted Class A common shares as of the end of each respective period, for periods in which the convertible preferred stock is antidilutive under GAAP. Fiscal 2022 reflects the impact of the special cash dividend of |
|
(7) |
Represents incremental unvested restricted stock units ("RSUs") and unvested restricted stock awards ("RSAs") to adjust the diluted weighted average Class A common shares outstanding during each respective period to the fully outstanding RSUs and RSAs as of the end of each respective period. |
|
(8) |
Reflects the per share impact of Non-GAAP adjustments for each period. See the reconciliation of Net income to Adjusted net income above for further details. |
|
(9) |
See the reconciliation of Net income to Adjusted net income above for further details. |
Reconciliation of Non-GAAP Measures (in millions, except per share data) |
Non-GAAP adjustment classifications within the Consolidated Statement of Operations: |
(a) Cost of sales |
(b) Selling and administrative expenses |
(c) Interest expense, net |
(d) Loss (gain) on interest rate swaps and energy hedges, net: |
Fourth Quarter
|
|
Fourth Quarter
|
|
Fiscal
|
|
Fiscal
|
||||||||
Cost of sales |
$ |
2.1 |
|
$ |
(2.1 |
) |
|
$ |
(2.2 |
) |
|
$ |
(4.8 |
) |
Selling and administrative expenses |
|
0.8 |
|
|
6.4 |
|
|
|
(1.0 |
) |
|
|
4.8 |
|
Other expense (income), net |
|
— |
|
|
0.2 |
|
|
|
— |
|
|
|
(8.4 |
) |
Total Loss (gain) on interest rate swaps and energy hedges, net |
$ |
2.9 |
|
$ |
4.5 |
|
|
$ |
(3.2 |
) |
|
$ |
(8.4 |
) |
(e) |
Depreciation and amortization: |
|
Fourth Quarter
|
|
Fourth Quarter
|
|
Fiscal
|
|
Fiscal
|
||||
Cost of sales |
$ |
43.1 |
|
$ |
33.5 |
|
$ |
169.0 |
|
$ |
162.7 |
Selling and administrative expenses |
|
376.0 |
|
|
392.7 |
|
|
1,610.0 |
|
|
1,644.4 |
Total Depreciation and amortization |
$ |
419.1 |
|
$ |
426.2 |
|
$ |
1,779.0 |
|
$ |
1,807.1 |
(f) |
Miscellaneous adjustments: |
|
Fourth Quarter
|
|
Fourth Quarter
|
|
Fiscal
|
|
Fiscal
|
|||||
Selling and administrative expenses |
$ |
5.5 |
|
$ |
8.0 |
|
|
$ |
34.7 |
|
$ |
28.9 |
Other expense (income), net |
|
11.9 |
|
|
(2.0 |
) |
|
|
6.7 |
|
|
23.2 |
Total Miscellaneous adjustments |
$ |
17.4 |
|
$ |
6.0 |
|
|
$ |
41.4 |
|
$ |
52.1 |
The following table is a reconciliation of Net debt ratio: |
|||||
|
Fiscal
|
|
Fiscal
|
||
Total debt (including finance leases) |
$ |
8,068.6 |
|
$ |
8,910.1 |
Cash and cash equivalents |
|
188.7 |
|
|
455.8 |
Total debt net of cash |
|
7,879.9 |
|
|
8,454.3 |
|
|
|
|
||
Adjusted EBITDA |
$ |
4,317.7 |
|
$ |
4,677.0 |
|
|
|
|
||
Total Net debt ratio |
|
1.83 |
|
|
1.81 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240422947499/en/
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