Mr. Mariano continued, “I’m also pleased to report that our growth plan for Mariano’s in the Chicago market is on track. The stores continue to exceed our expectations for both sales and profitability. We plan to open five additional Mariano’s in the Chicago area in 2013, which will give us 13 stores in that market.”
Mr. Mariano concluded, “We are encouraged by our sales trends to-date in 2013, but believe that our results in our core markets will continue to be impacted by a cautious consumer, as well as increased competitive unit growth and promotional activity. We remain intently focused on our strategy to deliver the best overall value and service to our customers and to use our cash flow to expand the Mariano’s banner, pay down debt and deliver an attractive dividend to our shareholders.”
* Adjusted Net Income, Adjusted Net Earnings per Common Share and Adjusted EBITDA are non-GAAP financial measures. See the tables herein for important information about these measures and a full reconciliation to the most comparable GAAP measure.
Financial Results for Fourth Quarter of 2012Net sales for the fourth quarter of 2012 were $981.9 million, an increase of $13.1 million, or 1.4%, from $968.7 million for the fourth quarter of 2011. The increase primarily reflects the benefit of new stores, partially offset by a 2.1% decrease in same-store sales. The decline in same-store sales was primarily due to a 3.5% decrease in the number of customer transactions, partially offset by a 1.5% increase in average transaction size. Same-store sales comparisons were negatively impacted by the increased effect of competitive store openings and the continuation of a challenging economic environment. In addition, same-store sales were negatively affected by a calendar shift that moved New Year’s holiday related sales into the first quarter of 2013. Adjusted for the effect of the calendar shift, same-store sales declined 1.3%.