Spartan Stores, Inc. (Nasdaq: SPTN), a leading regional grocery distributor and retailer, today reported financial results for the fiscal 2014 second quarter ended September 14, 2013.
Second Quarter Results
Consolidated net sales for the second quarter increased 4.5 percent to $649.5 million compared to $621.6 million last year, due to organic growth, contributions from a recent acquisition in the retail segment and new customers in the distribution segment.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) for the quarter increased 10.1 percent to $31.9 million, or 4.9 percent of net sales, compared to $29.0 million, or 4.7 percent of net sales last year.Adjusted earnings from continuing operations were $12.1 million, or $0.55 per diluted share, compared to $10.2 million, or $0.47 per diluted share, last year. For the second quarter of fiscal 2014, adjusted earnings from continuing operations excludes after-tax expenses related to the previously announced merger agreement with Nash Finch Company of $2.3 million, or $0.10 per diluted share, and a tax benefit of $0.2 million, or $0.01 per diluted share, due to the favorable settlement of a tax liability established in the prior year. For the second quarter of fiscal 2013, adjusted earnings from continuing operations excludes an after-tax asset impairment charge of $0.2 million, or $0.01 per diluted share, and an after-tax benefit from the sale of assets of $0.4 million, or $0.01 per diluted share. “We are very pleased to deliver sales that were consistent with expectations and to achieve adjusted earnings from continuing operations well ahead of our guidance,” stated Dennis Eidson, Spartan’s President and Chief Executive Officer. “Despite a lack of meaningful food inflation, we posted top and bottom line gains in both our retail and distribution segments due to strong execution across our business segments, the effectiveness of our promotion programs and focus on cost control. We will continue to invest in the consumer experience to ensure a broad assortment of brand name and private brand products and encourage sales in our retail and distribution channels.”