This Day On The Street
Continue to site
ADVERTISEMENT
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 Second Quarter Results

General and administrative expenses in the quarter decreased $0.7 million to $15.1 million from $15.8 million in the second quarter of the prior year, primarily due to a decrease in fees and expenses related to the refinancing of our credit facility in the second quarter of fiscal 2013 and in management fees, partially offset by an increase in equity compensation charges and public company costs of $2.8 million and $0.4 million, respectively.  

Central Services, a component of general and administrative expenses that directly relates to the operations of our business, increased approximately $1.0 million, or 13.5%, in the second quarter of fiscal 2014 to $8.8 million from $7.8 million in the second quarter of the prior year.  The increase is primarily due to an increase in public company costs of approximately $0.4 million and the continued investments in management, information technology systems, infrastructure, marketing and compliance to support the continued execution of our growth. Central Services, as a percentage of sales remained flat for the quarter at 4.8% and excluding public company costs, declined 30 basis points to 4.5%. 

The following table sets forth a reconciliation to Central Services from General and Administrative expenses:

Central Services Reconciliation ($ in millions, % of net sales)
         
Quarter Ended: September 30, 2012 September 29, 2013
         
General & Administrative  $ 15.8 9.8%  $ 15.1 8.2%
         
(-) Transaction expenses  2.8 1.7%  -  0.0%
(-) Transaction bonuses  1.0 0.6%  -  0.0%
(-) Management fees  0.7 0.4%  -  0.0%
(-) Non-recurring expenses  1.3 0.8%  1.4 0.8%
(-) Corporate depreciation & amortization   1.1 0.7%  1.1 0.6%
(-) Equity compensation charge   0.0 0.0%  2.8 1.5%
(-) Pre-opening advertising  1.1 0.7%  1.0 0.6%
Central Services  $ 7.8 4.8%  $ 8.8 4.8%

Store-opening costs in the second quarter included approximately $1.9 million for our Chelsea location which opened in July 2013 and $2.0 million for the Nanuet, New York location which opened in October 2013. Total store opening costs decreased to $3.9 million from $5.5 million in the second quarter of the prior year.  In addition, the Company incurred $1.3 million of start-up costs for the new production center. Approximately $1.4 million and $0.7 million of store opening and production center start-up costs in the second quarter of fiscal 2014 and in the second quarter of fiscal 2013, respectively, were non-cash charges primarily due to deferred rent.

5 of 7

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
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!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs