This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

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

Note Regarding Operating Results

As previously noted, the Red Hook, Brooklyn location was temporarily closed beginning October 29, 2012 due to damage sustained in Hurricane Sandy. The store re-opened on March 1, 2013. As a result, the Company has presented certain information without the operations of its Red Hook, Brooklyn store for the full quarter and full fiscal year to make more meaningful comparisons between periods. Where indicated, the Company has made a pro forma adjustment to include an estimate for the lost sales from its Red Hook, Brooklyn store during the period that it was closed. 1

Operating Results for the Fourth Quarter of Fiscal 2013

For the fiscal 2013 fourth quarter, net sales increased 19% to $178.7 million from net sales of $150.3 million in the same period last year. Excluding the Red Hook, Brooklyn store for the fourth quarter of both periods, net sales increased 29%. Sales growth in the quarter was driven by new store openings and an increase in comparable store sales (excluding the Red Hook, Brooklyn store) of 2.4%.

Adjusted EBITDA for the fiscal 2013 fourth quarter increased 24% to $13.5 million, inclusive of $2.5 million of business interruption insurance, from $10.9 million in the fourth quarter of 2012. The adjusted EBITDA margin was 7.6% in the fourth quarter compared to 7.2% in the same period last year. On a pro forma basis to include the estimated lost sales at the Red Hook, Brooklyn location, the adjusted EBITDA margin was 7.1% in the fourth quarter. 1
EBITDA Reconciliation ($ in millions, % of net sales)
Quarter Ended: April 1, 2012 March 31, 2013
Net loss ($2.0) -1.3% ($6.7) -3.7%
Reconciliation to EBITDA:        
(+) Store depreciation & amortization   3.9 2.6%  5.1 2.8%
(+) Corporate depreciation & amortization   1.4 0.9%  1.1 0.6%
(+) Management fees  1.1 0.7%  0.9 0.5%
(+) Non-recurring expenses   1.6 1.1%  4.4 2.5%
(+) Equity compensation charge   0.1 0.1%  0.0 0.0%
(+) Store opening costs   1.5 1.0%  2.4 1.3%
(+) Pre-opening advertising  --  0.0%  0.5 0.3%
(+) Interest expense, net   4.5 3.0%  6.5 3.7%
(+) Income tax benefit  (1.4) -0.9%  (0.7) -0.4%
Adjusted EBITDA $10.9 7.2% $13.5 7.6%
Note: In the fiscal quarter ended April 1, 2012, pre-opening advertising is included in store opening costs.

Other Operating Items

Gross profit for the fourth quarter increased 17% to $60.1 million from $51.2 million in the fourth quarter of the prior year. Excluding the Red Hook, Brooklyn store for the fourth quarter of both periods, gross profit increased 26%. The Company's gross profit margin was 33.6% in the fiscal 2013 fourth quarter versus 34.1% in the fourth quarter of the prior year. The decrease in gross profit margin reflects changes to the composition of the Company's store mix and an increase in store occupancy.

3 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,812.19 +19.51 0.11%
S&P 500 2,089.14 +2.55 0.12%
NASDAQ 5,102.8080 +0.33 0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs