SpartanNash Merger Buoys Q3 Performance
In its first financial report post-merger, SpartanNash posted consolidated net sales for the 15-week third quarter of $1.3 billion, a 69.1 percent increase.
The company attributed its strong performance to the sales generated from the merger, a 0.7 percent increase in comps and the impact of new distribution customers, partially offset by $46.1 million in sales for the extra week in last year's quarter.
Adjusted earnings from continuing operations were $11.1 million, or $0.40 per diluted share, compared to $4.9 million, or $0.22 per diluted share, in the year-ago period.
"While the merger with Nash Finch contributed a significant portion of our growth in the quarter, we produced strong results in our legacy business, which is a testament to the excellence of our management team and associates,” said Dennis Eidson, president/CEO.
Q3 sales for the company’s distribution segment increased 63.5 percent to $565.8 million, due to $224.6 million in sales from Nash Finch, as well as new business gains, partially offset by the extra week of sales last year.
Net sales for the retail segment increased 17.4 percent to $520.9 million, in large part due to $90 million in sales generated as a result of the merger, the acquisition of a grocery store and fuel center in the prior year's third quarter, and the 0.7 percent increase in comps, excluding fuel, partially offset by $2.7 million in fewer sales due to the closure of certain stores in Q3 of last year. Net sales for the company's military segment were $248.6 million.
Year-to-Date
For the 39-week period ended Dec. 28, 2013, consolidated net sales increased 28.9 percent to $2.6 billion, compared to $2 billion in the 40-week period ended Jan. 5, 2013. Comps, excluding fuel, decreased 0.6 percent.
Adjusted earnings from continuing operations were $29.8 million, or $1.23 per diluted share, compared to $20.5 million, or $0.94 per diluted share, in the prior year-to-date period.
"We are making excellent progress in our work to integrate our retail, food distribution and military distribution businesses and are energized by what the combined SpartanNash can achieve,” added Eidson.
SpartanNash operates 172 supermarkets, primarily under the banners of Family Fare Supermarkets, D&W Fresh Markets, No Frills, Bag 'n Save, Sun Mart and Econofoods.