SpartanNash Company (the “Company”) (Nasdaq: SPTN) today reported financial results for the 15-week third quarter and the 39-week period ended December 28, 2013 (“Transition Period”).
The Transition Period reflects the previously announced change in the Company’s fiscal year end from the last Saturday in March to the Saturday closest to December 31. As a result, the third quarter included 15 weeks and the Transition Period included 39 weeks, compared to 16 weeks and 40 weeks for the respective reporting periods in the prior year. For purposes of reporting comparable store sales, the Company used comparable 15-week and 39-week periods for its legacy Spartan Stores retail operations. In addition, the Transition Period includes approximately six weeks of financial results from The Nash Finch Company (“Nash Finch”) as a result of the recent merger of Spartan Stores and Nash Finch, completed on November 19, 2013.
Third Quarter Results
Consolidated net sales for the 15-week third quarter increased 69.1 percent to $1.3 billion compared to $789.9 million in the 16-week quarter last year, primarily due to $563.2 million in sales generated as a result of the merger, comparable store sales increase of 0.7 percent and the impact of new distribution customers, partially offset by $46.1 million in sales for the extra week in last year’s quarter. Excluding the impact of the extra week last year and contributions from the merger, consolidated net sales would have increased approximately 3.8 percent.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) for the quarter increased 65.9 percent to $41.6 million, or 3.1 percent of net sales, compared to $25.1 million, or 3.2 percent of net sales in the 16-week quarter last year. Excluding the impact of the extra week last year and contributions from the merger, Adjusted EBITDA would have increased approximately 6.2 percent in the third quarter of fiscal 2014.