艾伯森公司報告2024財年第二季度業績
2024年10月15日，愛達荷州博伊西
艾伯森公司（紐交所：ACI）（以下簡稱"公司"）今天報告了截至2024年9月7日的2024財年第二季度業績。
2024財年第二季度亮點
•相同銷售額增加了2.5%
•數字銷售額增加了24%
•忠誠會員增加了15%，達到4300萬
•淨利潤爲14600萬美元，每股盈利爲0.25美元
•調整後的淨利潤爲30100萬美元，每股0.51美元
•調整後的EBITDA爲90100萬美元
在2024財年第二季度，繼續投資於我們的"終身客戶"策略，推動了我們數字銷售和藥店業務的強勁增長，如Albertsons超市CEO Vivek Sankaran所說。我們還實現了會員忠誠度和全渠道購物者強勁的同比增長，並加快了Albertsons Media Collective的增長。我們要感謝我們的團隊不斷致力於爲客戶服務並支持我們運營的社區。
Sankaran表示：「展望2024財政年度的餘下部分，我們預計將繼續面臨投資於員工工資和福利的不利因素，藥房和數字業務比重增加，這些業務利潤率較低，並且競爭環境日益激烈。我們預計這些不利因素將在一定程度上被持續和新的生產力舉措部分抵消。」
2024財年第二季度成績
在截至2024年9月7日的12周內（"2024財政第二季度"），淨銷售和其他營業收入爲186億美元，而在截至2023年9月9日的12周內（"2023財政第二季度"）爲183億美元。此增長受到我們2.5%同店銷售增長的推動，其中藥房銷售的強勁增長推動了同店銷售的增長。我們在2024財政第二季度繼續增長數字銷售，增長了24%。營業收入和其他收入的增長部分被燃油銷售下降部分抵消。
毛利率在2024年第二季度和2023年第二季度均未變化，保持在27.6%。除去燃料和LIFO費用的影響，毛利率較2023年第二季度下降了44個點子。藥房銷售強勁增長帶來了毛利率整體較低的主要下降，以及因數字銷售持續增長而產生的揀選和交付成本的增加，部分抵消了我們採購和採購生產力舉措帶來的好處。
在2024財年第二季度，銷售和管理費用佔淨銷售和其他營業收入的比例增至25.8％，而在2023財年第二季度爲25.1％。除燃料影響外，銷售和管理費用佔淨銷售和其他營業收入的比例增加了41個點子。
銷售和行政支出佔淨銷售額及其他營業收入的比率主要歸因於我們數字和全渠道能力的持續發展相關的營業費用增加，合併相關成本增加，員工成本增加，業務轉型成本增加以及額外的第三方商店安防服務，部分抵消了我們生產力舉措帶來的好處。
資產處置淨損失和減值損失在2024財年第二季度爲4390萬美元，相比於2023財年第二季度的淨收益840萬美元。2024財年第二季度的減值淨損失主要是由微型履行中心關閉相關設備的3980萬美元減值損失和零售店減值損失1350萬美元所致，部分抵消之前從房地產資產出售中獲得的940萬美元收益。
2024財年第二季度，淨利息費爲10360萬美元，而2023財年第二季度爲11190萬美元。淨利息費的減少主要歸因於較低的平均未償借款額。
2024財年第二季度的其他費用淨額爲190萬美元，而2023財年第二季度爲810萬美元。
2024財年第二季度所得稅費爲4.1億美元，有效稅率爲22.0%，相比之下，2023財年第二季度所得稅費爲6.75億美元，有效稅率爲20.2%。
2024財年第二季度的淨利潤爲14550萬美元，每股盈利爲0.25美元，而2023財年第二季度的淨利潤爲26690萬美元，每股盈利爲0.46美元。
調整後的淨利潤在2024財年第二季度爲30100萬美元，每股盈利爲0.51美元，相比於2023財年第二季度的36770萬美元，每股盈利爲0.63美元。
2024財年第二季度，調整後的EBITDA爲9.006億元，佔淨銷售額和其他營業收入的4.9%，相比之下，2023財年第二季度爲9.769億元，佔淨銷售額和其他營業收入的5.3%。
資本支出
在2024財年的前28周，資本支出爲95230萬美元，主要包括完成了44項翻新工程，開設了兩家新店，以及繼續對我們的數字和科技平台進行投資。
併購協議
根據先前宣佈的，2022年10月13日，公司與克羅格公司和Kettle Merger Sub，Inc.簽署了一項《合併協議和計劃》（「合併協議」）。根據合併協議的條款，在獲得監管機構批准的前提下，克羅格（通過Kettle Merger Sub，Inc.）將收購公司的普通股的所有已發行股份（「合併」）。有關合並協議和合並協議擬議的交易的詳細信息在我們公司於2024財年第二季度向美國證券交易委員會（「SEC」）提交的形式10-Q季度報告中可獲得，報告提交日期爲2024年10月15日。
關於Albertsons Companies
艾伯森是美國領先的食品和藥品零售商。截至2024年9月7日，該公司在美國經營着2,267家零售食品和藥品店，擁有1,726家藥房，405家相關燃料中心，22家專用配送中心和19家制造業-半導體設施。該公司在34個州和哥倫比亞特區經營着門店，使用20多個知名品牌，包括艾伯森，安全衛，Vons，Jewel-Osco，Shaw's，Acme，Tom Thumb，Randalls，United Supermarkets，Pavilions，Star Market，Haggen，Carrs，Kings Food Markets和Balducci's Food Lovers Market。該公司致力於幫助全國各地的人們生活
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通過在社區內不斷取得有意義的進步，逐步改善生活。2023年，與艾伯森公司基金會一起，公司通過食品和經濟支援貢獻超過3,500萬美元，其中包括透過我們的「鄰舍滋養計劃」捐贈超過3,500萬美元，以確保社區居民和受災影響人士有足夠的食物。
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 our ability to close the transactions contemplated by the Merger Agreement, including resolution of the pending legal actions related to the Merger;
• erosion of consumer confidence in our business as a result of the Merger;
• restrictions on our ability to operate as a result of the Merger Agreement and the impact of the costs related to the Merger;
• challenges in retaining and motivating our associates until the closing of the Merger, particularly following the public announcement of the locations and operations to be divested, with difficulties in attracting new employees during the pendency of the Merger;
• litigation in connection with, or related to the transactions contemplated by, the Merger Agreement which may arise out of pending regulatory actions;
• changes in macroeconomic conditions such as rates of food price inflation or deflation, fuel and commodity prices and expiration of student loan payment deferments;
• changes in consumer behavior and spending due to the impact of macroeconomic factors;
• 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;
• 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
• changes in tax rates, tax laws, and regulations that directly impact our business or our customers may adversely impact our financial condition and results of operations.
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,
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to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
In evaluating our financial results and forward-looking statements, you should carefully consider the risks and uncertainties more fully described in the "Risk Factors" section or other sections in our reports filed with the SEC including the most recent annual report on Form 10-K and any subsequent periodic reports on Form 10-Q and current reports on Form 8-K.
Additional Information and Where to Find It
The Company has filed with the SEC a definitive information statement on Schedule 14C with respect to the approval of the Merger and has mailed the definitive information statement to the Company's stockholders. You may obtain copies of all documents filed by the Company with the SEC regarding this transaction, free of charge, at the SEC's website, www.sec.gov or from the Company's website at https://www.albertsonscompanies.com/investors/overview/.
Non-GAAP Measures and Identical Sales
Non-GAAP Measures. EBITDA, Adjusted EBITDA, Adjusted net income, Adjusted net income per Class A common share and Net debt ratio (collectively, the "Non-GAAP Measures") are performance measures that provide supplemental information the Company believes is useful to analysts and investors to evaluate its ongoing results of operations, when considered alongside other GAAP measures such as net income, operating income, gross margin, and net income per Class A common share. These Non-GAAP Measures exclude the financial impact of items management does not consider in assessing the Company's ongoing core operating performance, and thereby provide useful measures to analysts and investors of its operating performance on a period-to-period basis. Other companies may have different definitions of Non-GAAP Measures and provide for different adjustments, and comparability to the Company's results of operations may be impacted by such differences. The Company also uses Adjusted EBITDA and Net debt ratio for board of director and bank compliance reporting. The Company's presentation of Non-GAAP Measures should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items.
Identical Sales. As used in this earnings release, the term "identical sales" includes stores operating during the same period in both the current fiscal year and the prior fiscal year, comparing sales on a daily basis. Direct to consumer digital sales are included in identical sales, and fuel sales are excluded from identical sales.
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Albertsons Companies, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(dollars in millions, except per share data)
(unaudited)
| 12 weeks ended | 28 weeks ended | ||||||||||||||||||||||
| September 7, 2024 | September 9, 2023 | September 7, 2024 | September 9, 2023 | ||||||||||||||||||||
| Net sales and other revenue | $ | 18,551.5 | $ | 18,290.7 | $ | 42,816.9 | $ | 42,340.9 | |||||||||||||||
| Cost of sales | 13,430.2 | 13,249.2 | 30,956.7 | 30,636.7 | |||||||||||||||||||
| Gross margin | 5,121.3 | 5,041.5 | 11,860.2 | 11,704.2 | |||||||||||||||||||
| Selling and administrative expenses | 4,785.4 | 4,595.5 | 11,059.4 | 10,608.4 | |||||||||||||||||||
| Loss (gain) on property dispositions and impairment losses, net | 43.9 | (8.4) | 49.2 | 19.2 | |||||||||||||||||||
| Operating income | 292.0 | 454.4 | 751.6 | 1,076.6 | |||||||||||||||||||
| Interest expense, net | 103.6 | 111.9 | 249.3 | 266.8 | |||||||||||||||||||
| Other expense (income), net | 1.9 | 8.1 | 5.9 | (7.9) | |||||||||||||||||||
Income before income taxes | 186.5 | 334.4 | 496.4 | 817.7 | |||||||||||||||||||
| Income tax expense | 41.0 | 67.5 | 110.2 | 133.6 | |||||||||||||||||||
| Net income | $ | 145.5 | $ | 266.9 | $ | 386.2 | $ | 684.1 | |||||||||||||||
| Net income per Class A common share | |||||||||||||||||||||||
| Basic net income per Class A common share | $ | 0.25 | $ | 0.46 | $ | 0.67 | $ | 1.19 | |||||||||||||||
| Diluted net income per Class A common share | 0.25 | 0.46 | 0.66 | 1.18 | |||||||||||||||||||
| Weighted average Class A common shares outstanding (in millions) | |||||||||||||||||||||||
| Basic | 580.1 | 576.0 | 579.5 | 574.7 | |||||||||||||||||||
| Diluted | 583.2 | 581.9 | 582.4 | 580.3 | |||||||||||||||||||
| % of net sales and other revenue | |||||||||||||||||||||||
| Gross margin | 27.6 | % | 27.6 | % | 27.7 | % | 27.6 | % | |||||||||||||||
| Selling and administrative expenses | 25.8 | % | 25.1 | % | 25.8 | % | 25.1 | % | |||||||||||||||
| Store data | |||||||||||||||||||||||
| Number of stores at end of quarter | 2,267 | 2,272 | |||||||||||||||||||||
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Albertsons Companies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in millions)
(unaudited)
| September 7, 2024 | February 24, 2024 | |||||||||||||
| ASSETS | ||||||||||||||
| Current assets | ||||||||||||||
| Cash and cash equivalents | $ | 280.0 | $ | 188.7 | ||||||||||
| Receivables, net | 897.6 | 724.4 | ||||||||||||
| Inventories, net | 5,042.7 | 4,945.2 | ||||||||||||
| Other current assets | 426.3 | 429.2 | ||||||||||||
| Total current assets | 6,646.6 | 6,287.5 | ||||||||||||
| Property and equipment, net | 9,551.4 | 9,570.3 | ||||||||||||
| Operating lease right-of-use assets | 6,022.6 | 5,981.6 | ||||||||||||
| Intangible assets, net | 2,377.9 | 2,434.5 | ||||||||||||
| Goodwill | 1,201.0 | 1,201.0 | ||||||||||||
| Other assets | 728.9 | 746.2 | ||||||||||||
| TOTAL ASSETS | $ | 26,528.4 | $ | 26,221.1 | ||||||||||
| LIABILITIES | ||||||||||||||
| Current liabilities | ||||||||||||||
| Accounts payable | $ | 4,221.9 | $ | 4,218.2 | ||||||||||
| Accrued salaries and wages | 1,352.2 | 1,302.6 | ||||||||||||
Current maturities of long-term debt and finance lease obligations | 129.1 | 285.2 | ||||||||||||
| Current maturities of operating lease obligations | 679.3 | 677.6 | ||||||||||||
| Other current liabilities | 1,039.9 | 974.1 | ||||||||||||
| Total current liabilities | 7,422.4 | 7,457.7 | ||||||||||||
| Long-term debt and finance lease obligations | 7,779.3 | 7,783.4 | ||||||||||||
| Long-term operating lease obligations | 5,615.1 | 5,493.2 | ||||||||||||
| Deferred income taxes | 727.5 | 807.6 | ||||||||||||
| Other long-term liabilities | 1,963.8 | 1,931.7 | ||||||||||||
| Commitments and contingencies | ||||||||||||||
| STOCKHOLDERS' EQUITY | ||||||||||||||
| Class A common stock | 6.0 | 5.9 | ||||||||||||
| Additional paid-in capital | 2,152.3 | 2,129.6 | ||||||||||||
| Treasury stock, at cost | (304.2) | (304.2) | ||||||||||||
| Accumulated other comprehensive income | 92.6 | 88.0 | ||||||||||||
| Retained earnings | 1,073.6 | 828.2 | ||||||||||||
| Total stockholders' equity | 3,020.3 | 2,747.5 | ||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 26,528.4 | $ | 26,221.1 | ||||||||||
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Albertsons Companies, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in millions)
(unaudited)
| 28 weeks ended | |||||||||||
| September 7, 2024 | September 9, 2023 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 386.2 | $ | 684.1 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Loss on property dispositions and impairment losses, net | 49.2 | 19.2 | |||||||||
| Depreciation and amortization | 973.9 | 945.2 | |||||||||
| Operating lease right-of-use assets amortization | 364.3 | 357.0 | |||||||||
| LIFO expense | 19.4 | 60.2 | |||||||||
| Deferred income tax | (86.7) | (85.8) | |||||||||
| Contributions to pension and post-retirement benefit plans, net of expense (income) | (29.3) | (12.1) | |||||||||
| Deferred financing costs | 8.6 | 8.4 | |||||||||
| Equity-based compensation expense | 66.2 | 57.2 | |||||||||
| Other operating activities | 17.0 | (12.3) | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Receivables, net | (174.0) | (21.3) | |||||||||
| Inventories, net | (116.9) | (326.6) | |||||||||
| Accounts payable, accrued salaries and wages and other accrued liabilities | 88.5 | 35.1 | |||||||||
| Operating lease liabilities | (280.6) | (274.7) | |||||||||
| Self-insurance assets and liabilities | 21.2 | 40.3 | |||||||||
| Other operating assets and liabilities | 67.1 | (126.0) | |||||||||
| Net cash provided by operating activities | 1,374.1 | 1,347.9 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Payments for property, equipment and intangibles, including lease buyouts | (952.3) | (1,084.3) | |||||||||
| Proceeds from sale of assets | 19.8 | 195.1 | |||||||||
| Other investing activities | 7.2 | (0.9) | |||||||||
| Net cash used in investing activities | (925.3) | (890.1) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from issuance of long-term debt, including ABL facility | 50.0 | 50.0 | |||||||||
| Payments on long-term borrowings, including ABL facility | (200.4) | (500.5) | |||||||||
| Payments of obligations under finance leases | (26.9) | (29.1) | |||||||||
| Dividends paid on common stock | (139.0) | (138.0) | |||||||||
| Dividends paid on convertible preferred stock | — | (0.8) | |||||||||
| Employee tax withholding on vesting of restricted stock units | (41.5) | (35.1) | |||||||||
| Other financing activities | — | 2.4 | |||||||||
| Net cash used in financing activities | (357.8) | (651.1) | |||||||||
| Net increase (decrease) in cash and cash equivalents and restricted cash | 91.0 | (193.3) | |||||||||
| Cash and cash equivalents and restricted cash at beginning of period | 193.2 | 463.8 | |||||||||
| Cash and cash equivalents and restricted cash at end of period | $ | 284.2 | $ | 270.5 | |||||||
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Albertsons Companies, Inc. and Subsidiaries
Reconciliation of Non-GAAP Measures
(in millions, except per share data)
The following tables reconcile Net income to Adjusted net income, and Net income per Class A common share to Adjusted net income per Class A common share:
| 12 weeks ended | 28 weeks ended | ||||||||||||||||||||||
| September 7, 2024 | September 9, 2023 | September 7, 2024 | September 9, 2023 | ||||||||||||||||||||
| Numerator: | |||||||||||||||||||||||
| Net income | $ | 145.5 | $ | 266.9 | $ | 386.2 | $ | 684.1 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Loss (gain) on energy hedges, net (d) | 2.4 | (4.8) | 1.6 | (5.4) | |||||||||||||||||||
| Business transformation (1)(b) | 20.5 | 13.5 | 37.8 | 25.6 | |||||||||||||||||||
| Equity-based compensation expense (b) | 29.5 | 25.3 | 66.2 | 57.2 | |||||||||||||||||||
| Loss (gain) on property dispositions and impairment losses, net | 43.9 | (8.4) | 49.2 | 19.2 | |||||||||||||||||||
| LIFO expense (a) | 4.8 | 26.2 | 19.4 | 60.2 | |||||||||||||||||||
| Merger-related costs (2)(b) | 67.4 | 41.2 | 159.7 | 88.3 | |||||||||||||||||||
| Certain legal and regulatory accruals and settlements, net (b) | 8.7 | — | (0.2) | — | |||||||||||||||||||
| Amortization of debt discount and deferred financing costs (c) | 3.6 | 3.6 | 8.5 | 8.3 | |||||||||||||||||||
| Amortization of intangible assets resulting from acquisitions (b) | 11.1 | 11.1 | 25.8 | 26.5 | |||||||||||||||||||
| Miscellaneous adjustments (3)(f) | 11.4 | 23.0 | 31.2 | 20.6 | |||||||||||||||||||
| Tax impact of adjustments to Adjusted net income | (47.8) | (29.9) | (92.8) | (71.2) | |||||||||||||||||||
| Adjusted net income | $ | 301.0 | $ | 367.7 | $ | 692.6 | $ | 913.4 | |||||||||||||||
| Denominator: | |||||||||||||||||||||||
| Weighted average Class A common shares outstanding - diluted | 583.2 | 581.9 | 582.4 | 580.3 | |||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Convertible preferred stock (4) | — | — | — | 0.6 | |||||||||||||||||||
| Restricted stock units and awards (5) | 8.0 | 5.1 | 8.2 | 5.4 | |||||||||||||||||||
| Adjusted weighted average Class A common shares outstanding - diluted | 591.2 | 587.0 | 590.6 | 586.3 | |||||||||||||||||||
| Adjusted net income per Class A common share - diluted | $ | 0.51 | $ | 0.63 | $ | 1.17 | $ | 1.56 | |||||||||||||||
| 12 weeks ended | 28 weeks ended | ||||||||||||||||||||||
| September 7, 2024 | September 9, 2023 | September 7, 2024 | September 9, 2023 | ||||||||||||||||||||
| Net income per Class A common share - diluted | $ | 0.25 | $ | 0.46 | $ | 0.66 | $ | 1.18 | |||||||||||||||
| Non-GAAP adjustments (6) | 0.27 | 0.17 | 0.53 | 0.39 | |||||||||||||||||||
| Restricted stock units and awards (5) | (0.01) | — | (0.02) | (0.01) | |||||||||||||||||||
| Adjusted net income per Class A common share - diluted | $ | 0.51 | $ | 0.63 | $ | 1.17 | $ | 1.56 | |||||||||||||||
8
Albertsons Companies, Inc. and Subsidiaries
Reconciliation of Non-GAAP Measures
(in millions, except per share data)
The following table is a reconciliation of Adjusted net income to Adjusted EBITDA:
| 12 weeks ended | 28 weeks ended | ||||||||||||||||||||||
| September 7, 2024 | September 9, 2023 | September 7, 2024 | September 9, 2023 | ||||||||||||||||||||
| Adjusted net income (7) | $ | 301.0 | $ | 367.7 | $ | 692.6 | $ | 913.4 | |||||||||||||||
| Tax impact of adjustments to Adjusted net income | 47.8 | 29.9 | 92.8 | 71.2 | |||||||||||||||||||
| Income tax expense | 41.0 | 67.5 | 110.2 | 133.6 | |||||||||||||||||||
| Amortization of debt discount and deferred financing costs (c) | (3.6) | (3.6) | (8.5) | (8.3) | |||||||||||||||||||
| Interest expense, net | 103.6 | 111.9 | 249.3 | 266.8 | |||||||||||||||||||
| Amortization of intangible assets resulting from acquisitions (b) | (11.1) | (11.1) | (25.8) | (26.5) | |||||||||||||||||||
| Depreciation and amortization (e) | 421.9 | 414.6 | 973.9 | 945.2 | |||||||||||||||||||
| Adjusted EBITDA | $ | 900.6 | $ | 976.9 | $ | 2,084.5 | $ | 2,295.4 | |||||||||||||||
(1) Includes costs associated with third-party consulting fees related to our operational priorities and associated business transformation.
(2) Primarily relates to third-party legal and advisor fees and retention program expense related to the proposed Merger.
(3) 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, pension settlement loss, adjustments for unconsolidated equity investments and other costs not considered in our core performance.
(4) 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.
(5) 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.
(6) 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.
(7) See the reconciliation of Net income to Adjusted net income above for further details.
Non-GAAP adjustment classifications within the Condensed Consolidated Statements of Operations:
(a) Cost of sales
(b) Selling and administrative expenses
(c) Interest expense, net
(d) Loss (gain) on energy hedges, net:
| 12 weeks ended | 28 weeks ended | ||||||||||||||||||||||
| September 7, 2024 | September 9, 2023 | September 7, 2024 | September 9, 2023 | ||||||||||||||||||||
| Cost of sales | $ | 2.3 | $ | (5.1) | $ | 2.4 | $ | (3.8) | |||||||||||||||
| Selling and administrative expenses | 0.1 | 0.3 | (0.8) | (1.6) | |||||||||||||||||||
| Total Loss (gain) on energy hedges, net | $ | 2.4 | $ | (4.8) | $ | 1.6 | $ | (5.4) | |||||||||||||||
(e) Depreciation and amortization:
| 12 weeks ended | 28 weeks ended | ||||||||||||||||||||||
| September 7, 2024 | September 9, 2023 | September 7, 2024 | September 9, 2023 | ||||||||||||||||||||
| Cost of sales | $ | 41.8 | $ | 38.3 | $ | 95.4 | $ | 85.0 | |||||||||||||||
| Selling and administrative expenses | 380.1 | 376.3 | 878.5 | 860.2 | |||||||||||||||||||
| Total Depreciation and amortization | $ | 421.9 | $ | 414.6 | $ | 973.9 | $ | 945.2 | |||||||||||||||
9
Albertsons Companies, Inc. and Subsidiaries
Reconciliation of Non-GAAP Measures
(in millions, except per share data)
(f) Miscellaneous adjustments:
| 12 weeks ended | 28 weeks ended | ||||||||||||||||||||||
| September 7, 2024 | September 9, 2023 | September 7, 2024 | September 9, 2023 | ||||||||||||||||||||
| Selling and administrative expenses | $ | 12.0 | $ | 11.9 | $ | 24.4 | $ | 21.9 | |||||||||||||||
| Other expense (income), net | (0.6) | 11.1 | 6.8 | (1.3) | |||||||||||||||||||
| Total Miscellaneous adjustments | $ | 11.4 | $ | 23.0 | $ | 31.2 | $ | 20.6 | |||||||||||||||
10
Albertsons Companies, Inc. and Subsidiaries
Reconciliation of Non-GAAP Measures
(in millions)
The following table is a reconciliation of Net Debt Ratio on a rolling four quarter basis:
| September 7, 2024 | September 9, 2023 | ||||||||||
| Total debt (including finance leases) | $ | 7,908.4 | $ | 8,449.6 | |||||||
| Cash and cash equivalents | 280.0 | 266.1 | |||||||||
| Total debt net of cash and cash equivalents | 7,628.4 | 8,183.5 | |||||||||
| Rolling four quarters Adjusted EBITDA | $ | 4,106.8 | $ | 4,503.6 | |||||||
| Total Net Debt Ratio | 1.86 | 1.82 | |||||||||
The following table is a reconciliation of Net income to Adjusted EBITDA on a rolling four quarter basis:
| Rolling four quarters ended | |||||||||||
| September 7, 2024 | September 9, 2023 | ||||||||||
| Net income | $ | 998.1 | $ | 1,370.7 | |||||||
| Depreciation and amortization | 1,807.7 | 1,792.5 | |||||||||
| Interest expense, net | 474.6 | 442.7 | |||||||||
| Income tax expense | 269.6 | 294.9 | |||||||||
| EBITDA | 3,550.0 | 3,900.8 | |||||||||
| Loss on interest rate swaps and energy hedges, net | 3.8 | 1.1 | |||||||||
| Business transformation (1) | 57.3 | 56.6 | |||||||||
| Equity-based compensation expense | 113.5 | 132.3 | |||||||||
| Loss (gain) on property dispositions and impairment losses, net | 73.9 | (34.9) | |||||||||
| LIFO expense | 11.2 | 211.3 | |||||||||
| Merger-related costs (2) | 252.0 | 135.4 | |||||||||
| Certain legal and regulatory accruals and settlements, net | (6.9) | 57.0 | |||||||||
| Miscellaneous adjustments (3) | 52.0 | 44.0 | |||||||||
| Adjusted EBITDA | $ | 4,106.8 | $ | 4,503.6 | |||||||
(1) Includes costs associated with third-party consulting fees related to our operational priorities and associated business transformation.
(2) 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.
(3) 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, pension settlement loss, adjustments for unconsolidated equity investments and other costs not considered in our core performance.
11