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Nash Finch Company (NASDAQ: NAFC), one of the leading food distribution companies in the United States, today announced financial results for the twelve weeks (second quarter) ended June 16, 2012.
Financial ResultsTotal Company sales for the second quarter 2012 were $1.09 billion compared to $1.10 billion in the prior-year quarter, a decrease of 0.6%. The acquisition of twelve Bag ‘N Save stores during the second quarter of 2012 contributed to a net increase in total Company sales of $13.0 million, which is comprised of a $29.1 million increase in Retail segment sales being partially offset by a $16.1 million decrease in Food Distribution segment sales that are now reported in the Retail segment. Sales in the Retail segment were negatively impacted by the sale and closing of retail stores since the first quarter of 2011 which resulted in a reduction in sales of $5.8 million. After adjusting for these items, total Company second quarter comparable sales decreased 1.5% relative to the prior year period. Sales for the first twenty-four weeks of 2012 were $2.15 billion compared to $2.20 billion in the prior year period, a decrease of 2.2%. After adjusting for the net increase in year-to-date total Company sales of $13.0 million attributable to the Bag ‘N Save acquisition, offset by the Retail segment year-to-date sales loss of $16.8 million due to the sale and closing of retail stores since the first quarter of 2011, total Company year-to-date comparable sales decreased 2.3% relative to last year.
1, adjusted to exclude the impact of significant items totaling $1.6 million and $1.0 million in the second quarter 2012 and 2011, respectively, was $27.8 million, or 2.5% of sales in the second quarter of 2012 as compared to $34.4 million, or 3.1% of sales in the second quarter of 2011. Including the impact of significant items, Consolidated EBITDA for the second quarter 2012 was $26.2 million, or 2.4% of sales, as compared to $33.4 million, or 3.0% of sales, in the prior year quarter. For the first twenty-four weeks of 2012, Consolidated EBITDA, adjusted to exclude the impact of significant items totaling $2.6 million and $2.0 million in 2012 and 2011, respectively, was $51.7 million or 2.4% of sales in 2012, compared to $65.2 million, or 3.0% of sales in 2011. Including the impact of significant items, Consolidated EBITDA for the second quarter year-to-date 2012 was $49.0 million, or 2.3% of sales, compared to $63.2 million, or 2.9% of sales, in the prior year period. Consolidated EBITDA is a non-GAAP financial measure that is reconciled to the most directly comparable GAAP financial results in the attached financial statements.
"The investments we made in our food distribution marketing programs which were designed to help drive sales appear to be taking hold as is evidenced by the sequential improvement in comparable sales, but as we expected, lower food price inflation trends continued to negatively impact our EBITDA results in the second quarter compared to last year,” said Alec Covington, President and CEO of Nash Finch