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
TheStreet Open House

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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,172.68 -107.06 -0.62%
S&P 500 1,994.29 -16.11 -0.80%
NASDAQ 4,527.6890 -52.10 -1.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs