Spartan Stores, Inc. (Nasdaq: SPTN), a leading regional grocery distributor and retailer, today reported financial results for its 12-week second quarter of fiscal 2013 ended September 15, 2012.
Second Quarter Results
Consolidated net sales for the 12-week second quarter increased 0.3 percent to $621.6 million compared to $619.6 million in the same period last year.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) for the quarter was $29.0 million, or 4.7 percent of net sales, compared to $31.1 million, or 5.0 percent of net sales last year.Earnings from continuing operations for the second quarter of fiscal 2013 were $10.4 million, or $0.47 per diluted share, including an after-tax asset impairment charge of $0.2 million, or $0.01 per diluted share, and an after-tax benefit from the sale of assets of $0.4 million, or $0.02 per diluted share. For the second quarter of fiscal 2012, earnings from continuing operations were $10.3 million, or $0.45 per diluted share, including an after-tax charge for unusual corporate professional fees of $0.7 million, or $0.03 per diluted share. “We continue to invest in the initiatives that are helping us to best deliver value and convenience to consumers in today's challenging economy,” stated Dennis Eidson, Spartan’s President and Chief Executive Officer. “While the cost of these investments has had an impact on retail margins, our second quarter retail market share and volume results reflect the consumer’s acceptance of these initiatives, as well as, the growing momentum of our YES Rewards loyalty program.” Gross profit margin for the second quarter of fiscal 2013 was 21.0 percent versus 21.4 percent in the same period last year. The decline in gross profit margin was due to reduced inflation-driven inventory gains in both the retail and distribution segments, investments associated with the second phase of our “Price Freeze” and “Yes Is Even More” promotional campaign in the retail segment, as well as, a higher mix of lower margin distribution and fuel sales.