Exhibit 99.1
Smart & Final Stores, Inc. Reports Third Quarter 2014 Results
Third Quarter Highlights:
· Net sales increased 10.8% to $1.13 billion
· Comparable store sales growth of 6.6%
· Net income increased 1.9% to $10.2 million
· Adjusted net income increased 24.9% to $14.9 million, or $0.24 per diluted share
· Operated 252 stores at quarter-end, including 90 Smart & Final Extra! stores
COMMERCE, Calif. (November 12, 2014) —Smart & Final Stores, Inc. (the “Company”) (NYSE:SFS) today reported results for its 16-week third quarter ended October 5, 2014.
“It’s an exciting time at Smart & Final Stores,” said Dave Hirz, President and Chief Executive Officer. “Our store banners are uniquely positioned at the intersection of value, convenience and quality. We are leading the way with the growth of our Smart & Final Extra! stores which offer a one-stop shopping experience that resonates with today’s household and business customers. We continue to grow sales in both of our store banners — Smart & Final and Cash & Carry — and this has translated into strong financial results.”
Mr. Hirz continued, “Importantly, we continue to see growth in customer transactions as our distinct merchandise and strong value pricing remains a compelling proposition for both household and business customers. Our strong financial performance of 10.8% sales growth and 6.6% comparable store sales growth provides a strong foundation for continued growth, and we plan to continue a robust program of new store openings during the balance of this year and during 2015.”
In order to aid understanding of the Company’s business performance, it has presented results in conformity with accounting principles generally accepted in the United States (“GAAP”) and has also presented adjusted net income, adjusted net income per share, adjusted net income per diluted share, EBITDA and adjusted EBITDA, which are non-GAAP measures that are explained and reconciled to the comparable GAAP measures in the tables included in this release. Where applicable, the numbers below are first presented on a GAAP basis and then on an adjusted basis.
Fiscal Third Quarter 2014 Financial Results
Net sales were $1,131.8 million, a 10.8% increase as compared to $1,021.4 million in the same period of 2013. Net sales growth was driven by a 6.6% increase in comparable store sales and from the sales contribution of new stores. In the 16 weeks ended October 5, 2014 the company opened six new stores, and has opened 13 new stores in the 52 weeks ended October 5, 2014. All of the new stores have been in the Smart & Final Extra! store format. The growth in comparable store sales was comprised of a 3.9% increase in comparable transaction count and a 2.5% increase in comparable average transaction size.
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Net sales for Smart & Final banner stores were $839.3 million, a 10.5% increase as compared to $759.7 million in the same period of 2013. Comparable store sales growth for the Smart & Final banner was 4.7% in the third quarter.
Net sales for Cash & Carry banner stores were $292.5 million, an 11.8% increase as compared to $261.7 million in the same period of 2013. Comparable store sales growth for the Cash & Carry banner was 11.8% in the third quarter.
Gross margin from operations was $169.5 million, a 10.9% increase as compared to $152.8 million in the same period of 2013. Gross margin rate in the third quarter was 15.0%, consistent with the same period in 2013.
Operating and administrative expenses increased to $140.7 million as compared to $121.4 million in the same period of 2013. This increase was primarily related to higher sales volumes, increased store support costs, and costs charged to expense associated with the Company’s initial public offering in September 2014.
Net income was $10.2 million, a 1.9% increase as compared to $10.0 million in the same period of 2013. Net income per diluted share was $0.17 as compared to $0.17 in the same period of 2013.
Adjusted net income was $14.9 million as compared to $11.9 million for the same period of 2013. Adjusted net income per diluted share was $0.24 as compared to $0.20 in the same period of 2013.
Adjusted EBITDA was $57.1 million, or a 4.3% increase as compared to $54.7 million in the same period of 2013.
Fiscal Year-to-date Financial Results
Net sales were $2,694.9 million in the 40 weeks (three fiscal quarters) ended October 5, 2014, a 9.2% increase as compared to $2,467.5 million in the same period of 2013. Net sales growth was driven by a 5.8% increase in comparable store sales growth and the net sales contribution from new stores. The growth in comparable store sales was comprised of a 3.8% increase in comparable transaction count and a 1.9% increase in comparable average transaction size.
Net sales for Smart & Final banner stores were $2,024.3 million, or a 9.0% increase as compared to $1,857.2 million in the same period of 2013. Year-to-date comparable store sales growth for the Smart & Final banner was 4.4%.
Net sales for Cash & Carry banner stores were $670.6 million, or a 9.9% increase as compared to $610.3 million in the same period of 2013. Year-to-date comparable store sales growth for the Cash & Carry banner was 9.9%.
Net income was $23.8 million, a 57.3% increase as compared to $15.2 million in the same period of 2013. Net income per diluted share was $0.40 as compared to $0.26 for the same period of 2013.
Adjusted net income was $34.3 million as compared to $23.7 million in the same period of 2013. Adjusted net income per diluted share was $0.57, compared to $0.40 in the same period of 2013.
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Adjusted EBITDA was $134.8 million, or a 7.2% increase as compared to $125.8 million in the same period of 2013.
Growth and Development
During the third quarter of fiscal 2014, the Company opened six new Smart & Final Extra! stores and completed four conversions of legacy Smart & Final to the Smart & Final Extra! store format. As of October 5, 2014, the Company operated a total of 90 Smart & Final Extra! and 110 legacy Smart & Final stores, and 52 Cash & Carry stores.
Operating Stores at Period End
| | Smart & Final Banner Stores | | Cash & Carry | | Total | |
| | Legacy format | | Extra! format | | Total | | Banner Stores | | Company | |
End of Fiscal Year 2013 | | 119 | | 69 | | 188 | | 52 | | 240 | |
New stores | | — | | 6 | | 6 | | — | | 6 | |
Relocations | | (1 | ) | 1 | | — | | — | | — | |
Conversions | | (4 | ) | 4 | | — | | — | | — | |
End of 2nd Quarter 2014 | | 114 | | 80 | | 194 | | 52 | | 246 | |
| | | | | | | | | | | |
New stores | | — | | 6 | | 6 | | — | | 6 | |
Relocations | | — | | — | | — | | — | | — | |
Conversions | | (4 | ) | 4 | | — | | — | | — | |
End of 3rd Quarter 2014 | | 110 | | 90 | | 200 | | 52 | | 252 | |
In the fourth quarter of fiscal 2014, the Company expects to open one additional new Smart & Final Extra! store, complete seven additional conversions of legacy stores to the Extra! format, including one store relocation, and open one new Cash & Carry store.
Leverage and Liquidity
The Company generated cash from operations of $100.4 million in the 40 weeks ended October 5, 2014 and invested $89.7 million in capital expenditures for property, plant, and equipment and capitalized software.
During the third quarter of 2014, in conjunction with its initial public offering, the Company repaid approximately $115.5 million in borrowings under its Term Loan Facility. At the end of the quarter the Company’s debt, net of debt discount, was $587.8 million and cash was $110.1 million.
Initial Public Offering
On September 29, 2014, the Company completed its initial public offering of 13,450,000 shares of common stock, at a price to the public of $12.00 per share, before underwriting discounts and commissions. The Company additionally sold 2,017,500 shares as a result of the underwriters’ exercise of their over-allotment option to purchase additional shares. The initial public offering, including
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exercise of the over-allotment option, generated aggregate net proceeds to the Company of approximately $167.7 million, net of underwriting discounts and commissions and direct offering expenses.
Q4 2014 Outlook
The following provides information on the Company’s guidance for the fourth quarter of 2014:
| | 4th Quarter 2014 |
Net sales growth | | 9.5% - 10.5% |
Comparable store sales growth | | 4.5% - 5.5% |
Unit growth (net new stores) | | 1 Smart & Final Extra! 1 Cash & Carry |
Relocations of existing stores | | 1 store |
Conversions of legacy stores to the Extra! format | | 6 stores |
Adjusted EBITDA | | $37.0 - $39.0 million |
Adjusted net income | | $8.5 - $9.5 million |
Capital expenditures | | $28.0 - $30.0 million |
Third Quarter 2014 Conference Call
The Company will host a conference call today at 1:30 p.m. PT / 4:30 p.m. ET to discuss its third quarter financial results. To participate in the call, please dial (877) 407-0784 (U.S.) or (201) 689-8560 (International) ten minutes prior to the start time. The conference call can also be accessed on the “Investors” section of the Company’s Web site at http://www.smartandfinal-investor.com/.
For those unable to participate during the live broadcast, a telephonic replay of the call will also be available beginning today at approximately 7:30 p.m. Eastern Time, by dialing 1-877-870-5176 (U.S.) or 1-858-384-5517 (international) and entering the replay pin number: 13593690. The telephonic replay will be available until 11:59 p.m. Eastern Time, on Wednesday, November 26, 2014.
About Smart & Final
Smart & Final Stores, Inc. (NYSE: SFS), is a value-oriented food and everyday staples retailer that serves household and business customers. The Company is headquartered in Commerce (located in Los Angeles), CA, where it was founded over 140 years ago. As of October 5, 2014, the Company operated 252 grocery and foodservice stores under the “Smart & Final”, “Smart & Final Extra!” and “Cash & Carry Smart Foodservice” banners in California, Oregon, Washington, Arizona, Nevada, and Idaho, with an additional 13 stores in northern Mexico operated through a joint venture.
Forward-Looking Statements
Certain statements contained in this release that are not historical information contain forward-looking statements. The forward-looking statements involve risks and uncertainties and actual results may differ
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materially from those projected or implied. Further, certain forward-looking statements are based on assumptions of future events which may not prove to be accurate. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “may,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or, in each case, their negative, or other variations or comparable terminology. The Company derives many of its forward-looking statements from its operating budgets and forecasts, which are based upon many detailed assumptions. While the Company believes that its assumptions are reasonable, it is difficult to predict the impact of known factors and, of course, it is impossible to anticipate all factors that could affect actual results. These factors are discussed in the “Risk Factors,” “Special Note Concerning Forward-Looking Statements,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and “Business” sections and elsewhere in the prospectus that is contained in the Company’s registration statement on Form S-1 (File No. 333-196931) filed with the Securities and Exchange Commission.
You should keep in mind that any forward-looking statement made by the Company herein, or elsewhere, speaks only as of the date on which made. New risks and uncertainties come up from time to time, and it is impossible for the Company to predict these events or how they may affect it. The Company has no obligation to update any forward-looking statements after the date hereof, except as required by federal securities laws.
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Smart & Final Stores, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
(Dollars in Thousands, Except Share and Per Share Amounts)
| | Sixteen Weeks Ended | | Forty Weeks Ended | |
| | October 5, | | October 6, | | October 5, | | October 6, | |
| | 2014 | | 2013 | | 2014 | | 2013 | |
Net sales | | $ | 1,131,821 | | $ | 1,021,392 | | $ | 2,694,908 | | $ | 2,467,493 | |
Cost of sales, buying and occupancy | | 962,317 | | 868,580 | | 2,292,630 | | 2,101,358 | |
Gross margin | | 169,504 | | 152,812 | | 402,278 | | 366,135 | |
| | | | | | | | | |
Operating and administrative expenses | | 140,678 | | 121,417 | | 334,527 | | 295,456 | |
Income from operations | | 28,826 | | 31,395 | | 67,751 | | 70,679 | |
| | | | | | | | | |
Interest expense, net | | (11,725 | ) | (14,386 | ) | (29,483 | ) | (39,815 | ) |
Loss on early extinguishment of debt | | (2,224 | ) | — | | (2,224 | ) | (7,139 | ) |
Equity in earnings of joint venture | | 318 | | 887 | | 1,032 | | 1,408 | |
Income before income taxes | | 15,195 | | 17,896 | | 37,076 | | 25,133 | |
| | | | | | | | | |
Income tax provision | | (4,972 | ) | (7,863 | ) | (13,231 | ) | (9,973 | ) |
Net income | | $ | 10,223 | | $ | 10,033 | | $ | 23,845 | | $ | 15,160 | |
| | | | | | | | | |
Net income per share: | | | | | | | | | |
Basic | | $ | 0.17 | | $ | 0.18 | | $ | 0.41 | | $ | 0.27 | |
Diluted | | $ | 0.17 | | $ | 0.17 | | $ | 0.40 | | $ | 0.26 | |
Weighted average shares outstanding: | | | | | | | | | |
Basic | | 59,101,972 | | 57,171,190 | | 57,969,954 | | 56,989,129 | |
Diluted | | 61,232,212 | | 59,522,595 | | 60,196,116 | | 59,308,332 | |
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Smart & Final Stores, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
(Dollars in Thousands, Except Share Amounts)
| | October 5, 2014 | | December 29, 2013 | |
Assets | | | | | |
Current assets: | | | | | |
Cash and cash equivalents | | $ | 110,068 | | $ | 53,699 | |
Accounts receivable, less allowances of $903 and $766 at October 5, 2014 and December 29, 2013, respectively | | 23,606 | | 19,453 | |
Inventories | | 211,042 | | 209,502 | |
Prepaid expenses and other current assets | | 16,143 | | 17,938 | |
Deferred income taxes | | 23,845 | | 20,747 | |
Total current assets | | 384,704 | | 321,339 | |
| | | | | |
Property, plant, and equipment: | | | | | |
Land | | 11,165 | | 10,394 | |
Buildings and improvements | | 23,801 | | 20,441 | |
Leasehold improvements | | 160,324 | | 119,306 | |
Fixtures and equipment | | 192,318 | | 148,271 | |
Construction in progress | | 12,522 | | 5,541 | |
| | 400,130 | | 303,953 | |
Less accumulated depreciation and amortization | | 102,215 | | 59,961 | |
| | 297,915 | | 243,992 | |
| | | | | |
Capitalized software, net of accumulated amortization of $8,594 and $5,168 at October 5, 2014 and December 29, 2013, respectively | | 10,534 | | 12,664 | |
Other intangible assets, net | | 326,141 | | 328,865 | |
Goodwill | | 611,242 | | 611,242 | |
Deferred financing costs, net | | 6,251 | | 8,272 | |
Equity investment in joint venture | | 12,001 | | 10,948 | |
Other assets | | 55,092 | | 62,219 | |
Total assets | | $ | 1,703,880 | | $ | 1,599,541 | |
| | | | | |
Liabilities and Stockholders’ equity | | | | | |
Current liabilities: | | | | | |
Accounts payable | | $ | 165,950 | | $ | 153,644 | |
Accrued salaries and wages | | 25,115 | | 22,337 | |
Accrued expenses | | 77,333 | | 69,174 | |
Current portion of long-term debt | | — | | 7,200 | |
Total current liabilities | | 268,398 | | 252,355 | |
| | | | | |
Long-term debt, less current portion and debt discount | | 587,824 | | 698,991 | |
Deferred income taxes | | 151,814 | | 151,232 | |
Postretirement and postemployment benefits | | 74,632 | | 84,155 | |
Other long-term liabilities | | 82,644 | | 70,949 | |
| | | | | |
Commitments and contingencies | | | | | |
| | | | | |
Stockholders’ equity: | | | | | |
Preferred stock, $0.001 par value; | | | | | |
Authorized shares — 10,000,000 | | | | | |
Issued and outstanding shares — none | | — | | — | |
Common stock, $0.001 par value; | | | | | |
Authorized shares — 340,000,000 | | | | | |
Issued and outstanding shares - 73,074,360 at October 5, 2014; 57,171,190 at December 29, 2013 | | 73 | | 57 | |
Additional paid-in capital | | 486,679 | | 311,935 | |
Retained earnings (deficit) | | 22,728 | | (1,117 | ) |
Accumulated other comprehensive income | | 29,088 | | 30,984 | |
Total stockholders’ equity | | 538,568 | | 341,859 | |
Total liabilities and stockholders’ equity | | $ | 1,703,880 | | $ | 1,599,541 | |
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Smart & Final Stores, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(Dollars in Thousands)
| | Forty Weeks Ended | |
| | October 5, | | October 6, | |
| | 2014 | | 2013 | |
Operating activities | | | | | |
Net income | | $ | 23,845 | | $ | 15,160 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | |
Depreciation | | 27,107 | | 25,657 | |
Amortization | | 21,886 | | 20,983 | |
Amortization of deferred financing costs and debt discount | | 2,509 | | 3,364 | |
Share-based compensation | | 8,455 | | — | |
Excess tax benefits related to share-based payments | | (730 | ) | — | |
Deferred income taxes | | (3,382 | ) | — | |
Equity in earnings of joint venture | | (1,032 | ) | (1,408 | ) |
Loss on disposal of property, plant, and equipment | | 28 | | 50 | |
Asset impairment | | 501 | | 201 | |
Loss on early extinguishment of debt | | 2,224 | | 7,139 | |
Changes in operating assets and liabilities: | | | | | |
Accounts receivable, net | | (2,871 | ) | (2,991 | ) |
Inventories, net | | (1,540 | ) | (4,552 | ) |
Prepaid expenses and other assets | | 3,589 | | 17,060 | |
Accounts payable | | 12,306 | | 12,382 | |
Accrued salaries and wages | | 2,778 | | (3,497 | ) |
Other accrued liabilities | | 4,752 | | (16,084 | ) |
Net cash provided by operating activities | | 100,425 | | 73,464 | |
| | | | | |
Investing activities | | | | | |
Purchases of property, plant, and equipment | | (87,619 | ) | (40,991 | ) |
Proceeds from disposal of property, plant, and equipment | | 33 | | 38 | |
Investment in capitalized software | | (2,065 | ) | (1,675 | ) |
Purchase of intangible asset | | (100 | ) | — | |
Other | | (38 | ) | (260 | ) |
Net cash used in investing activities | | (89,789 | ) | (42,888 | ) |
| | | | | |
Financing activities | | | | | |
Borrowings on bank line of credit | | — | | 5,000 | |
Issuance of bank debt, net of issuance costs | | — | | 50,055 | |
Issuance of common stock in IPO | | 173,080 | | — | |
Issuance of common stock, other | | 79 | | 1,700 | |
Proceeds from exercise of stock options | | 450 | | — | |
Payment of minimum withholding taxes on net share settlement of stock option exercise | | (2,667 | ) | — | |
Fees paid in conjunction with debt financing | | (200 | ) | (191 | ) |
Payments on bank line of credit | | — | | (7,000 | ) |
Payments on bank debt | | (120,880 | ) | (59,213 | ) |
Payments of IPO issuance costs | | (4,611 | ) | — | |
Excess tax benefits related to share-based payments | | 730 | | — | |
Contingent consideration related to acquisition of SFHC | | (248 | ) | — | |
Net cash provided by (used in) financing activities | | 45,733 | | (9,649 | ) |
Net increase in cash and cash equivalents | | 56,369 | | 20,927 | |
Cash and cash equivalents at beginning of period | | 53,699 | | 35,987 | |
Cash and cash equivalents at end of period | | $ | 110,068 | | $ | 56,914 | |
Cash paid during the period for: | | | | | |
Interest | | $ | 33,174 | | $ | 42,068 | |
Income taxes | | $ | 11,375 | | $ | 7,682 | |
| | | | | |
Non-cash investing and financing activities | | | | | |
Software development costs incurred but not paid | | $ | 57 | | $ | — | |
Construction in progress costs incurred but not paid | | $ | 12,593 | | $ | 3,427 | |
IPO issuance costs incurred but not paid | | $ | 757 | | $ | — | |
Other consideration payable for acquisition of Smart & Final Holdings Corp. | | $ | 2,359 | | $ | 18,630 | |
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Non-GAAP Financial Measures
To supplement the Company’s financial information presented in accordance with GAAP, the Company uses certain non-GAAP financial measures, namely adjusted net income, adjusted net income per share, adjusted net income per diluted share, EBITDA and Adjusted EBITDA to clarify and enhance understanding of its past performance. The Company defines adjusted net income as net income adjusted for the items set forth in the table below. The Company defines adjusted net income per share as adjusted net income divided by the weighted average basic shares outstanding. The Company defines adjusted net income per diluted share as adjusted net income divided by the weighted average diluted shares outstanding. The Company defines EBITDA as net income before depreciation and amortization, interest expense and provision for income tax, and adjusted EBITDA as EBITDA adjusted for the items set forth in the table below.
Use of these non-GAAP measures may differ from similar measures reported by other companies. Each of these non-GAAP measures has its limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP.
The following table shows reconciliations of adjusted net income, EBITDA and adjusted EBITDA to net income, and adjusted net income per share and adjusted net income per diluted share to net income per share, for the sixteen-week and forty-week periods ended October 5, 2014 and October 6, 2013.
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Smart & Final Stores, Inc. and Subsidiaries
Reconciliation of Net Income to Non-GAAP Adjusted Net Income
(Unaudited)
(Dollars in Thousands, Except Share and Per Share Amounts)
| | Sixteen Weeks Ended | | Forty Weeks Ended | |
| | October 5,
2014 | | October 6,
2013 | | October 5,
2014 | | October 6,
2013 | |
| | | | | | | | | |
Net income | | $ | 10,223 | | $ | 10,033 | | $ | 23,845 | | $ | 15,160 | |
Income tax provision | | 4,972 | | 7,863 | | 13,231 | | 9,973 | |
Net income before income taxes | | 15,195 | | 17,896 | | 37,076 | | 25,133 | |
| | | | | | | | | |
Adjustments to Net Income | | | | | | | | | |
| | | | | | | | | |
Transaction costs (a) | | 1,169 | | 139 | | 1,639 | | 213 | |
Net (income) loss from closed stores and exit costs (b) | | 491 | | 1,011 | | 1,461 | | 2,456 | |
(Gain) loss from asset dispositions (c) | | 271 | | 26 | | 506 | | 70 | |
Share-based compensation expense (d) | | 6,714 | | — | | 8,455 | | — | |
Non-cash rent (e) | | 1,573 | | 1,154 | | 4,151 | | 2,946 | |
Pre-opening costs (f) | | 1,123 | | 432 | | 3,099 | | 691 | |
Loss on extinguishment of debt (g) | | 2,224 | | — | | 2,224 | | 7,139 | |
Other items (h) | | (3,952 | ) | 399 | | (2,280 | ) | 702 | |
Adjusted income tax provision | | (9,908 | ) | (9,128 | ) | (22,015 | ) | (15,662 | ) |
Adjusted net income | | 14,900 | | 11,929 | | 34,316 | | 23,688 | |
| | | | | | | | | |
Adjusted Net Income Per Share | | | | | | | | | |
| | | | | | | | | |
Net income per share - basic | | $ | 0.17 | | $ | 0.18 | | $ | 0.41 | | $ | 0.27 | |
Per share impact of adjustments to net income | | $ | 0.08 | | $ | 0.03 | | $ | 0.18 | | $ | 0.15 | |
Adjusted net income per share - basic | | $ | 0.25 | | $ | 0.21 | | $ | 0.59 | | $ | 0.42 | |
| | | | | | | | | |
Net income per share - diluted | | $ | 0.17 | | $ | 0.17 | | $ | 0.40 | | $ | 0.26 | |
Per share impact of adjustments to net income | | $ | 0.07 | | $ | 0.03 | | $ | 0.17 | | $ | 0.14 | |
Adjusted net income per share - diluted | | $ | 0.24 | | $ | 0.20 | | $ | 0.57 | | $ | 0.40 | |
| | | | | | | | | |
Weighted average shares - basic | | 59,101,972 | | 57,171,190 | | 57,969,954 | | 56,989,129 | |
Weighted average shares - fully diluted | | 61,232,212 | | 59,522,595 | | 60,196,116 | | 59,308,332 | |
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Smart & Final Stores, Inc. and Subsidiaries
Reconciliation of EBITDA to Adjusted EBITDA
(Unaudited)
(Dollars in Thousands)
| | Sixteen Weeks Ended | | Forty Weeks Ended | |
| | October 5, | | October 6, | | October 5, | | October 6, | |
| | 2014 | | 2013 | | 2014 | | 2013 | |
| | | | | | | | | |
Net income | | $ | 10,223 | | $ | 10,033 | | $ | 23,845 | | $ | 15,160 | |
Depreciation and amortization | | 20,540 | | 19,265 | | 48,993 | | 46,640 | |
Interest expense, net | | 11,725 | | 14,386 | | 29,483 | | 39,815 | |
Income tax provision | | 4,972 | | 7,863 | | 13,231 | | 9,973 | |
EBITDA | | 47,460 | | 51,547 | | 115,552 | | 111,588 | |
| | | | | | | | | |
Adjustments to EBITDA | | | | | | | | | |
Transaction costs (a) | | 1,169 | | 139 | | 1,639 | | 213 | |
Net (income) loss from closed stores and exit costs (b) | | 491 | | 1,011 | | 1,461 | | 2,456 | |
(Gain) loss from asset dispositions (c) | | 271 | | 26 | | 506 | | 70 | |
Share-based compensation expense (d) | | 6,714 | | — | | 8,455 | | — | |
Non-cash rent (e) | | 1,573 | | 1,154 | | 4,151 | | 2,946 | |
Pre-opening costs (f) | | 1,123 | | 432 | | 3,099 | | 691 | |
Loss on extinguishment of debt (g) | | 2,224 | | — | | 2,224 | | 7,139 | |
Other items (h) | | (3,952 | ) | 399 | | (2,280 | ) | 702 | |
Adjusted EBITDA | | $ | 57,073 | | $ | 54,708 | | $ | 134,807 | | $ | 125,805 | |
(a) Represents costs primarily associated with the Company’s initial public offering that were charged to expense for the sixteen-week and forty-week periods ended October 5, 2014
(b) Represents costs associated with store closure and exit costs.
(c) Represents non-cash gain or loss associated with asset dispositions and impairment charges.
(d) Represents expenses associated with the Company’s equity-based incentive award program.
(e) Represents non-cash component of recognized rent expense.
(f) Represents new store and relocation opening costs consisting primarily of rent, utilities, distribution, store labor and advertising.
(g) Represents the write-off of unamortized debt discount and deferred financing costs.
(h) Represents (i) reversal of a reserve related to executive compensation for the sixteen-week and forty-week periods ended October 5, 2014, (ii) death benefit income from a Company-owned life insurance policy for the sixteen-week and forty-week periods ended October 5, 2014, (iii) consulting expenses related to strategic growth initiatives for the forty-week period ended October 5, 2014, and (iv) costs primarily related to a legal settlement for the sixteen-week and forty-week periods ended October 6, 2013, net.
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INVESTOR CONTACTS:
Andrew Greenebaum / Laura Bainbridge
Addo Communications
O: 310.829.5400
investors@smartandfinal.com
MEDIA CONTACT:
press@smartandfinal.com
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