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NEW YORK, Aug. 8, 2013 (GLOBE NEWSWIRE) --
Fairway Group Holdings Corp. ("Fairway") (Nasdaq:FWM), the parent company of Fairway Market, today announced financial results for its fiscal 2014 first quarter ended June 30, 2013.
Net sales increased 21% to $187 million in the first quarter of fiscal 2014. Same store sales in the quarter increased 1.4% over the prior year with customer transactions increasing 0.8% and basket size increasing 0.5%.
Adjusted EBITDA increased 12% to $12.7 million in the first quarter.
"We are pleased to report strong operating results for the quarter, our first as a public company," said Charles Santoro, Fairway's Executive Chairman.
"Fairway remains on track with our long-term strategy designed to expand our store count and increase our margins. We remain confident in our ability to execute these plans."
Chief Executive Officer Herb Ruetsch added, "We executed well this quarter with improved gross margin performance and good control of our operating expenses despite the added costs associated with being a public company. We feel good about our ability to continue to enhance gross margins and leverage our Central Services expenses over the full fiscal year."
For more information regarding the calculation of non-GAAP financial metrics, see the discussion under the heading "Non-GAAP Financial Information" below.
Fairway Market Opens in the Chelsea Neighborhood of Manhattan
The Company opened its 13
th location on July 24,
2013 in the Chelsea neighborhood of Manhattan. The store, which is located on Avenue of the Americas (6
th Avenue) between 25
th and 26
th Street, has 17,000 square feet of retail space and is Fairway's 5
th Manhattan location.
Company Completes IPO and Debt Re-Pricing
On April 22, 2013, Fairway completed an initial public offering ("IPO") of approximately 15.7 million shares of common stock, including 2.3 million shares sold by existing stockholders. The Company received approximately $158.8 million in net proceeds after deducting the underwriting discount and expenses related to the IPO which were charged directly to additional paid-in capital in the first quarter of fiscal 2014. The Company used the net proceeds to pay approximately $76.8 million of preferred dividends, $9.2 million to terminate a management agreement with Sterling Investment Partners and approximately $8.1 million to pay contractual bonuses. The remaining approximately $64.7 million is intended for new store growth and general corporate purposes. The Company charged $18.1 million of IPO related expenses, including those noted above, to operating results in the first quarter of fiscal 2014 and has isolated these charges, where applicable, to facilitate a comparison of operating performance on a consistent basis from period-to-period.