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Fairway Group Holdings Corp. Reports Fourth Quarter And Full Year Fiscal 2013 Results

Stocks in this article: FWM

NEW YORK, June 6, 2013 (GLOBE NEWSWIRE) -- Fairway Group Holdings Corp. ("Fairway") (Nasdaq:FWM), the parent company of Fairway Market, today announced financial results for the fiscal 2013 fourth quarter and full fiscal year ended March 31, 2013.

Performance Highlights

  • Net sales increased 19% to $179 million with an increase in same store sales of 2.4% (excluding the Red Hook, Brooklyn store) in the fourth quarter compared to the same period in the prior year. Net sales for the fiscal year increased 19% to $661 million. On a pro forma basis to include the lost sales for the Red Hook, Brooklyn store in both periods, net sales increased 27% to $191 million in the fourth quarter and 24% to $686 million in fiscal 2013. For more information regarding the pro forma adjustments see the footnotes below.
  • Adjusted EBITDA increased 24% to $13.5 million in the fourth quarter and 32% to $47.4 million in fiscal 2013. For more information regarding the calculation of adjusted EBITDA, see the discussion under the heading "Non-GAAP Financial Information" below.
Pro forma Sales and Adjusted EBITDA ($ in millions)
  Q4 Actual  Q4 Pro forma  FY2013 Actual FY2013 Pro forma
Net Sales  $179 $191 $661 $686
% growth  19% 27% 19% 24%
Adjusted EBITDA  $13.5 $13.5 $47.4 $47.4
% margin 7.6% 7.1% 7.2% 6.9%
The pro-forma adjustments are made to account for the temporary closing of the Company's Red Hook, Brooklyn store due to Hurricane Sandy and therefore make more meaningful comparisons between periods. The Red Hook, Brooklyn store was closed beginning October 29, 2012 and re-opened on March 1, 2013.  Pro forma net sales for the quarter ended March 31, 2013 reflect a pro forma adjustment of $12.3 million based on the Red Hook location's net sales during the same 9 week period in the prior fiscal year and pro forma net sales for the fiscal year ended March 31, 2013 reflect a pro forma adjustment of $25.0 million based on net sales for the same 18 week period in the prior fiscal year. The actual adjusted EBITDA includes business interruption insurance proceeds of $2.5 million and $5.0 million for the fourth quarter and full fiscal year respectively. As a result, no pro-forma adjustment is needed for adjusted EBITDA.

"We are pleased to report strong results for the fourth quarter of fiscal 2013. Fairway's Board of Directors, management and employees are excited about our growth outlook and the opportunities ahead," said Charles Santoro, Fairway's Executive Chairman. "Fairway began as a small vegetable and fruit stand on a New York City corner and has developed into a leading food retailing destination in the Greater New York City metropolitan area. We believe that our market position, differentiated merchandising concept and highly scalable infrastructure provide us with exciting long-term growth opportunities."

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