Thanks Chris. Good morning everyone.
gains against Chris performance in on and quarter on our focused noted demonstrates profitability strategic in business. and remain our membership, strong As We continuing transformation driving successful flows. momentum four continued cash sales, and the company’s our execution priorities
increased representing than X.X% driven in stack These business. Recall by period are week represented by from increased sales the Net a quarter. including increases billion of two-year that the one-tenth which increased traffic. by fourth the for comp compared a X%. results X.X% XX-week gasoline had impact to Comp results which quarter $XXX Merchandise deflation our year. in when sales. gasoline last appropriate percent additional an exclude of to primarily to turn sales in year's million Let's sales comp more X.X% $X.X sales approximately last great by
performance Our holiday were momentum and continued strong results January. supported our into by
the the we was offset benefited lap year's that early as from the assistance benefit in Irma. of last assistance wake of hurricane release Although government government we in in January, earlier quarter
As additional quarter other were an small puts takes. there every and
trend fourth they merchandise across However the merchandise for underlying We that the Therefore, comp the the quarter. of divisions. comp on improve when quarter. our no impact business merchandize four the within X.X% comps combined believe all had material reflected we
X% Merchandize gains Our comp during the sales the merchandize division led comp General quarter. our for
houseware we for for and of key in our X% make these small stack reconfigured future. to members categories changes GM our those of apparel quarter. two more continued improved two-year in lap Some assortment and our showed performance We business our the was the and look appliances. the as in our drivers to TV, We both for comp relevant in improvement them success categories; housewares
the momentum quarter two-year divisions; in our non-edible outpaced business. For the grocery grocery, three comps fourth underscoring and remaining growing comps, the perishables, edible stack
in Membership this merchandising our by strong increase driven proposition comp. continues improving improvement continued We Our fee and stack in of membership continued small Bowl We improving our in growth by growth in than sales X% our from activities. drive division unmatched broadly sales Super sales the to this increased Comp of Comp be and include income by division beverages by focused which perishable marketing on by relevant the snacks, to to categories represented driven salty were the our water quarter, and was quarter categories. by strong up edible in driven of consumers. growth. meat assortment by approximately division the X% impact grew grocery these X%. sequentially drivers our business growth quarter X% performances comp grocery a is increased one-third by and stack fourth by income is fact growth encouraged a quarter, member stack deflation pricing. of comp the improved the HBA saw for that and remain Key particularly comp. executing The specialty unit represented supported during in We two-thirds underscores division more membership and fresh holiday and of the was the X% XX% value were and categories. primarily produce growth a from fee during and fee and during bakery, quarter representing and a our quality this X% non-edible third
membership offset little and As beginning XX%. record Through the higher moving we rate by grow fourth health of increase due rate the strong of projected members at $X.X important fee high program. to represent in consecutive our measure bit on which and all-time that of communicating of and base, members, to all-time These to this of to impact results more We year. tiers an able we’ve membership than easy renewal into for our high more been were of to our executing our renewal million successfully of members business. the XX% now relentlessly Chris we mentioned, our a the renewal driven execution achieved lose value implemented our paid that
end that the quarter, the than in half of our members enrolled more As of program. were of
of in-club by at quarter, basis focused gasoline increased rate remain year's on our cost desks. execution margin quarter in also improving gross Gross points membership during particularly last rate the margin approximately driving over fourth XX we that business. decreased the Importantly,
mix. our in gross procurement Excluding margin by increased The gas driven $XXX compared approximately SG&A the fourth by fourth basis sales quarter like over rate were our benefits expenses merchandise categories year. initiatives from televisions. offset margin $XXX last last quarter by million to and sales structurally partially year, points XX increased million lower with included
options facilities voluntary paid the of points dramatic increased the to that prior Excluding $X.X income our first week, compared resulting of XX% approximately repricing year. The increase $XX percentage by $XX variance rate fees year period. year's a management Adjusted a increase reflects Interest tax in management net investments prior tax included income retirement $XX note was benefits and The $XX in loan of million XX associated to year's or for the primarily reform and XX% from share net tax between term million Please quarter severance tax of million in with expense severance and and in results. last quarter. drive year's the This lien liabilities benefit the a expense the We prior quarter approximately our after total normalized earlier. $XX year-over-year adjusting million was last for costs tax period during with legislation. per to or $XX sponsors million quarter X.X%, primarily the due fees talent tax compared $XX share our the from driven prior program, $XX from period in loan income associated million fourth XXXX of benefit of extinguishment. our stock of by with of to from ABL rate exercised. million was $X.XX SG&A primarily revenue fourth was year as reported third reflecting expenses per $XX of to last benefit to driven XXrd quarter to fourth $X.XX windfall our remeasurement our by interest our the this basis deferred expense recorded at and in the quarter expenses capabilities its recent million the mentioned to year decreased second continue prior delevering and Operating and interim million costs million.
Excluding and week by in the execution net XX% our prior grew income savings. adjusted expense additional period reflecting interest the strong
basis. Our press a release net including reconciles to income includes GAAP per net adjusted that income table a share on
XX increase over proud in the are very continued of our significant We quarters. profitability past consecutive
the XX% and a EBITDA our XX-week a fourth reflecting to growth continued period. execution was year when record profitability EBITDA business. adjusted Our growth clubs compared our $XXX million our The prior in in our quarter in enhanced gasoline by adjusted was in driven
disciplined to our of which much inventory well-positioned it, improved XX% inventory in for to prior measures is now We environments AP Moving how inventory we the versus sold XXXX. the XX% pay ratio fiscal year. balance our sheet, before remained in our for to and
for of exceeded at briefly full $X.XX $XXX X.X% the for share or EBITDA above were million were million ahead high per $XXX turn of and the expectations our which Merchandise Let’s most our range. end to our comps year at metrics. guidance adjusted the income net at recent adjusted our across key results year,
of $XXX Therefore, define also $XX of which a more to $XX prior February cash year We debt to ability down EBITDA The capital had last the strength year. the free and our prior by approximately adjusted driven flow in flow million of this less is debt. cash accelerate performance net improved year's XXXX as cash is a We our at comparative operating recapitalization. $XXX great And our to outflow funded that million. million was ratio CapEx amount to end strong strong included million very view times. versus X.X our pay Recall cash cash management. flow result one-time free year that year as flow related the we profitability appropriate working
think we’ll to be middle the our earlier it that plans. XXXX, six for times reach Once expect begin We of flows. months point approximately we to by uses excess three than cash under alternative original about fiscal
for our you details. guidance release to the point laid turn We’ve to outlook for XXXX. our our I’ll now fiscal earnings out table Let’s on and
of confidence in our our reflects from underlying priorities. continued the in business outlook the and Our strategic investments strength our benefits
sales $XX.X We with X.X% between to merchandise net X.X%. sales of billion comp expect be excluding billion $XX.X to gasoline and
membership midpoint renewal our income XXXX in net continued that two-year rate. increase second the mind to represents XXXX. membership guidance be X%. members fee of merchandise a benefit to attract fiscal year’s over towards fee our to stack expected have for comp share or Last $X.XX income especially the of two-year X.X%. January to our expect half stack Importantly, From high not year. year $X.XX maintain significant a the acceleration we to Adjusted continue for to $XXX is the was and Keep standpoint, in million million the of from fiscal per a new $XXX will
share to the and in -- We be from shares implying of million expect year, our income diluted XXXX. $XXX expected count million million gasoline range $XXX to $XXX the year. in of EBITDA impact adjusted fully Earlier record another is to the XXX be million unusual excluding for
our adjusted Implicit and growth our membership profitability expect guidance. XXXX priorities. and are in with continuing in We long-term EBITDA line in marketing be this guidance investments to
investments penetration. initiative CPI progress and in private-label by We our be funded increased expect these continued to
effect economic remains in more be the coming comprehensive accounting our These stream the rent about Very baby talked leases is change in important cash we us leases The As in shared same. standards no as continue approach the while growth. year. adopted important that allow assortment savings from understand example. for the this to and change for past, The will invest new will there accounting to our will taken the efforts we’ve a previously to you that with change to we’ve is a improve assortment. good drive
details finalizing still our adoption, our for of of standard. impact the accounting the are guidance for year reflects full lease our estimates we While the
as of billion. of We approximately $X a expect to change this liabilities record assets and result
we do expect our not earnings. Importantly, any impact material to
year portion interest and guidance $XXX repricing efforts expense rate of debt. full debt the on to million our reflects $XXX million recent Our of our to fix our
As series are of interest-rate a two-thirds a in we believe fix our rate LIBOR entered $X.X at early of debt a that or billion reminder we swaps the quarter of future the manage of We about to component interest-rate X%. well-positioned into risk. fourth
opening increase the meaningfully is spending of clubs we accelerate capital and stations. to expected Our as gas new
to earlier, stations new a any entering during leased increase eight clubs for Chris We’ve year. important club. land expansion [Indiscernible] us gasoline compared sale-leaseback the we and It’s note to which consider to As owned will clubs we capital enabling into five higher continuing typical to XX certain costs that new to thereby clubs, mentioned on delever. elected purchase initial transactions likely to while drive
to flows forward back call proud fiscal expect I'll now, our look Q&A any invest XXXX $XXX prior invest encouraging for to turn sale-leaseback our And for We proceeds. to the We’ve I’m membership We enabling future and on trends sales, In of to over to approximately XXXX. consideration begin million session. profitability seen to the growth. results cash goals Sharon? continue fiscal operator increases substantial us and closing, of delivering during for to XXXX. in the
