This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Fairway Group Holdings Corp. Reports First Quarter Fiscal 2014 Results

Stocks in this article: FWM

  • Net sales increased 21% to $187 million
  • Same store sales increased 1.4%
  • Adjusted EBITDA increased 12% to $12.7 million

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.

Performance Highlights

  • 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.

1 of 5

Select the service that is right for you!

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 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • 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