Roundy’s, Inc. (“Roundy’s”) (NYSE: RNDY), a leading grocer in the Midwest, today reported financial results for the third quarter ended September 29, 2012.
- Net sales decreased 0.3% to $973.6 million for the third quarter
- Adjusted net income, which excludes the impact of one-time employee expenses, was $8.8 million, or $0.20 diluted earnings per common share, for the third quarter, compared to $12.4 million, or $0.41 diluted earnings per common share in the prior year
- Adjusted EBITDA was $43.1 million for the third quarter compared to $56.7 million in the same period last year
- Quarterly dividend reduced to $0.12 per share, enhancing financial flexibility while maintaining attractive dividend pay-out profile and yield relative to peers
“During the third quarter, our results continued to be negatively affected by the general weakness in the overall economy and increased competitive environment,” said Robert Mariano, Roundy’s chairman, president and chief executive officer. “We have worked very hard to strengthen our leading market position as a provider of quality, value and convenience to consumers, but the impact of increased price investments and promotional activities on our gross margins and profitability was greater than we anticipated. In addition, customers did not respond as enthusiastically as we had expected to our Monopoly promotion program, which contributed to last year’s very strong third quarter results. As we look ahead, we are carefully examining our entire operation for ways in which we might improve sales and earnings and, accordingly, have already made adjustments to our pricing and promotions to drive our performance. Despite the headwinds in certain of our core markets, we continue to be pleased with the performance of our Chicago area stores. With eight Mariano’s now open in the Chicago area, we are gaining significant traction, and continue to invest in the growth of that market. We believe that our continued focus on enhancing the execution of our overall business model will position us to deliver greater overall sales growth and profitability.”