SpartanNash (SPTN) Misses Q3 EPS by 8c, Revenues Beat

SpartanNash (NASDAQ: SPTN) reported Q3 EPS of $0.30, $0.08 worse than the analyst estimate of $0.38. Revenue for the quarter came in at $2 billion versus the consensus estimate of $1.99 billion.

Third Quarter Fiscal 2019 Highlights

• Net sales growth of 6.0%, to $2.00 billion from $1.89 billion in the prior year quarter
• Retail comparable store sales increased 0.1%
• EPS of $(0.01) per share; Adjusted EPS of $0.30, including $0.08 in CEO transition and supplemental incentive program costs (“Transition Costs”), which were specifically excluded from August 14, 2019 guidance
• The Company reaffirms full year guidance; quantifies previously excluded Transition Costs

“We are encouraged to have delivered third quarter profitability and sales growth in-line with the guidance we provided in August,” said Dennis Eidson, Interim President and Chief Executive Officer. “Our results were driven by a solid increase in net sales, representing our fourteenth consecutive quarter of growth and we are pleased with the return to positive retail comparable store sales. Our team is focused on driving improvements in operational execution and positioning the Company to realize profitable growth as we deliver value to our shareholders.”

GUIDANCE:

SpartanNash sees FY2019 EPS of $0.01-$0.29.

Outlook

The Company is reaffirming its net sales and profitability outlook previously provided on August 14, 2019, and has now estimated Transition Costs which were not previously quantified. These costs are expected to range from $9.0 to $9.7 million in adjusted EBITDA(2) and $6.6 to $7.1 million in adjusted earnings from continuing operations(3), or $0.18 to $0.20 per diluted share.

The Company’s fiscal 2019 reported earnings guidance reflects an effective tax rate benefit of 17.0% to 20.0% and the adjusted earnings guidance reflects an effective tax rate expense of 18.0% to 18.5%. The Company expects capital expenditures for fiscal year 2019 to be in the range of $80.0 million to $89.0 million, with depreciation and amortization of $88.0 million to $89.0 million. Interest expense is expected to range from $34.5 million to $35.0 million.

The Fresh Kitchen will cease production during the fourth quarter of fiscal 2019 and the Company anticipates a disposition of the facility and related assets as early as the first quarter of fiscal 2020.

The Board of Directors has begun a formal process to identify the Company’s next Chief Executive Officer. Spencer Stuart, a leading executive search and leadership consulting firm, has been retained as an advisor in the process.

For earnings history and earnings-related data on SpartanNash (SPTN) click here.

You May Also Be Interested In

• Alphabet (GOOGL) soars 16% on Q1 results beat, first-ever dividend
• SkyWest (SKYW) Tops Q1 EPS by 28c, Beats on Revenue
• COPT Defense Properties (CDP) Reports In-Line Q1 EPS; offers guidance