Non-GAAP Financial Measures

This press release presents Adjusted Net Income and Adjusted EBITDA, which are non-GAAP financial measures within the meaning of applicable SEC rules and regulations, as defined under “Consolidated Statements of Comprehensive Income.” For a reconciliation of Adjusted Net Income and Adjusted EBITDA to net income under generally accepted accounting principles and for a discussion of the reasons why the Company believes that these non-GAAP financial measures provide information that is useful to investors see the tables following “Consolidated Statements of Comprehensive Income.”

Forward-Looking Statements

This release contains forward-looking statements about the Company’s future performance, which are based on Management’s assumptions and beliefs in light of the information currently available to it. The Company assumes no obligation to update the information contained herein. These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially from such statements including, but not limited to: competitive practices and pricing in the food industry generally and particularly in the Company’s principal markets; employee relationships and the terms of future collective bargaining agreements; the costs and other effects of legal and administrative cases and proceedings; the nature and extent of continued consolidation in the food industry; changes in the financial markets which may affect cost of capital and ability to access capital; supply or quality control problems with vendors; and changes in economic conditions which affect the buying patterns of customers. Additional factors that could cause actual results to differ materially from such statements are discussed in the Company’s periodic reports and filings with the Securities and Exchange Commission.
 
Roundy's, Inc.
Consolidated Statements of Comprehensive Income
(In thousands, except per share data)
(Unaudited)
       
Thirteen Weeks Ended Twenty-six Weeks Ended
July 2, 2011 June 30, 2012 July 2, 2011 June 30, 2012
Net Sales $ 980,365 $ 996,842 $ 1,896,380 $ 1,935,087
 
Costs and Expenses:
Cost of sales 715,675 729,150 1,376,386 1,410,633
Operating and administrative 216,933 224,006 439,352 450,115
Interest:
Interest expense, net 17,338 11,594 34,659 25,660
Amortization of deferred financing costs 847 574 1,786 1,266
Loss on debt extinguishment   -   -   -   13,304
  950,793   965,324   1,852,183   1,900,978
 
Income before Income Taxes 29,572 31,518 44,197 34,109
 
Provision for Income Taxes   11,825   12,607   17,679   12,927
 
Net Income $ 17,747 $ 18,911 $ 26,518 $ 21,182
 
Net earnings per common share:
Basic $ 0.58 $ 0.42 $ 0.87 $ 0.51
Diluted $ 0.58 $ 0.42 $ 0.87 $ 0.51
 
Weighted average number of common shares outstanding:
Basic 27,345 44,824 27,345 41,271
Diluted 30,395 44,990 30,395 41,813
 
Comprehensive Income $ 17,986 $ 19,581 $ 26,995 $ 22,523
 

Adjusted Net Income

The following is a summary of the calculation of Adjusted Net Income for the thirteen and twenty-six weeks ended July 2, 2011 and June 30, 2012, respectively (in thousands):
       
Thirteen Weeks Ended Twenty-six Weeks Ended
July 2, 2011 June 30, 2012 July 2, 2011 June 30, 2012
Net Income $ 17,747 $ 18,911 $ 26,518 $ 21,182
Loss on debt extinguishment, net of tax - - - 8,049
One-time IPO expenses, net of tax   -   -   -   314
 
Adjusted Net Income $ 17,747 $ 18,911 $ 26,518 $ 29,545
 
Net earnings per common share (adjusted):
 
Basic $ 0.58 $ 0.42 $ 0.87 $ 0.72
Diluted $ 0.58 $ 0.42 $ 0.87 $ 0.71

The Company presents Adjusted Net Income, a non-GAAP measure, to provide investors with a view of operating performance excluding significant and non-recurring items.

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