Roundy’s, Inc. (“Roundy’s”) (NYSE: RNDY), a leading grocer in the Midwest, today reported financial results for the first quarter ended March 29, 2014.
- Net sales increased 1.9% to $1,002.2 million
- Net loss was $4.5 million, or $0.10 net loss per diluted common share, compared to net income of $8.6 million, or $0.19 diluted net earnings per common share
- Adjusted net income 2 was $0.5 million, or $0.01 adjusted diluted net earnings per common share 2, compared to $8.6 million, or $0.19 adjusted diluted net earnings per common share 2
- Adjusted EBITDA 2 was $34.1 million compared to $44.0 million
“The first quarter was very active for our growth banner, Mariano’s, with the opening of 5 new stores. We continue to be pleased with Mariano’s very strong customer and community acceptance as well as the banner’s performance to-date,” said Robert A. Mariano, chairman, president and chief executive officer of Roundy’s. “Four of these openings were former Dominick’s stores and we opened an organic location in Lake Zurich, IL. In April, we opened two more stores, and one yesterday in the city of Chicago, bringing the number of Mariano’s stores to 21. We are on schedule with the remaining 8 acquired and organic openings this year.”
Mr. Mariano concluded, “During the first quarter of 2014, we continued to see softness in our core markets. Competitive pressure, weak economic growth and weather related issues affected our core markets in the quarter. Despite difficult same-store sales comparisons in the first quarter, we remain steadfast with our Milwaukee market renewal initiatives as we continue to implement strategic changes in select core markets.”
All comparisons are to the thirteen weeks ended March 30, 2013.
Adjusted Net Income, Adjusted Net Earnings per Common Share and Adjusted EBITDA are non-GAAP financial measures. See the tables herein for important information about these measures and a full reconciliation to the most comparable GAAP measure.
Financial Results for First Quarter of 2014
Net sales for the first quarter of 2014 were $1,002.2 million, an increase of $18.7 million, or 1.9%, from $983.5 million for the first quarter of 2013. The increase primarily reflects the benefit of new stores, partially offset by a 5.2% decrease in same-store sales and the effect of four store closures during the trailing four quarters. The decline in same-store sales was due to a 8.0% decrease in the number of customer transactions, partially offset by a 3.0% increase in average transaction size. Same-store sales were negatively impacted by the Easter holiday calendar shift from the first quarter of 2013 into the second quarter of 2014. In addition, same-store sales continue to be negatively impacted by competitive store openings and the weak economic environment in the Company’s core markets. Adjusted for the effect of the 2014 Easter holiday calendar shift, same-store sales declined 3.7%.