Smart & Final Stores, Inc. Reports Second Quarter 2016 Financial Results

COMMERCE, Calif., July 28, 2016 /PRNewswire/ -- Smart & Final Stores, Inc. (the "Company") (NYSE:SFS), the value-oriented food and everyday staples retailer, today reported financial results for the second fiscal quarter ended June 19, 2016.

Second Quarter Highlights:

  • Net sales increase of 14.7% to $1,038.3 million
  • Completed integration of 33 acquired stores to Smart & Final Extra! stores
  • Comparable store sales decrease of 0.3%, including impacts of deflation and cannibalization
  • Net income of $7.8 million, or $0.10 per diluted share
  • Adjusted net income of $15.5 million, or $0.20 per diluted share
  • Adjusted EBITDA of $50.7 million

"Smart & Final has generated dynamic growth in new stores and overall sales in the first half of 2016," said David Hirz, President and Chief Executive Officer.  "We've successfully completed the integration of 33 acquired store properties, which have all opened as Smart & Final Extra! stores.  These new stores are performing well, contributing to strong growth in customer transactions, and have led to the expansion of our workforce by over 3,500 new employees.  Additionally, we are broadening our reach to both household and small business customers through an ongoing brand messaging program.  We look forward to the longer-term benefits of increased market density as we communicate Smart & Final's unique platform to new and existing customers."

Mr. Hirz added, "The anticipated sales cannibalization from new store development, coupled with higher than expected deflationary pressures on product pricing, have resulted in headwinds to comparable store sales during the first half of 2016, which we expect will remain challenging during the balance of the year. Short-term pressures aside, we are confident in our longer-term store development plans and driving customer engagement through our merchandising and marketing initiatives."

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.

Second Quarter Fiscal 2016 Financial Results

Net sales were $1,038.3 million, representing a 14.7% increase as compared to $905.1 million in the same period of 2015.  Net sales growth was driven by the net sales contribution of new stores, partially offset by a 0.3% decrease in comparable store sales. Comparable store sales was comprised of a 0.4% increase in comparable transaction count, including the effect of anticipated cannibalization from new stores, and a 0.7% decrease in comparable average transaction size, including the impact of deflation in key product categories in both store banners.

Net sales for Smart & Final banner stores were $811.8 million, an 18.1% increase as compared to $687.4 million in the prior year period.  Comparable store sales for the Smart & Final banner decreased 0.6% in the second quarter.

Net sales for Cash & Carry banner stores were $226.5 million, a 4.0% increase as compared to $217.8 million in the same period of 2015.  Comparable store sales for the Cash & Carry banner increased 0.4% in the second quarter.

Gross margin from operations was $157.2 million, an 11.0% increase as compared to $141.6 million in the second quarter of 2015. Gross margin rate in the second quarter was 15.1% as compared to 15.6% in the same period of 2015.

Operating and administrative expenses were $138.8 million, a 21.6% increase as compared to $114.1 million in the year ago period. This increase was primarily related to expenses associated with 43 new stores developed over the prior 12 months and related support costs.

Net income was $7.8 million, including the effect of higher store development costs and non-recurring expenses related to acquired stores, as compared to net income of $11.0 million in the same period of 2015. Net income per diluted share was $0.10 as compared to $0.14 in the second quarter of 2015.

Adjusted net income was $15.5 million, a decrease of 8.4% as compared to $16.9 million for the year ago period. Adjusted net income per diluted share was $0.20 as compared to $0.22 in the same period of 2015.

Adjusted EBITDA remained unchanged at $50.7 million, as compared to the second quarter of 2015.

Fiscal Year-to-date Financial Results
In the twenty-four weeks ended June 19, 2016, net sales were $1,946.7 million, an increase of 12.7% as compared to $1,727.3 million in the same period of 2015.  Net sales growth was driven by a 0.8% increase in comparable store sales and from the net sales contribution of new stores.  The growth in comparable store sales was comprised of a 1.4% increase in comparable transaction count and a 0.6% decrease in comparable average transaction size. 

Net sales for Smart & Final banner stores were $1,521.1 million, a 15.6% increase as compared to $1,316.2 million in the first half of 2015. Year-to-date comparable store sales growth for the Smart & Final banner was 0.9%.

Net sales for Cash & Carry banner stores were $425.7 million, a 3.5% increase as compared to $411.1 million in the same period of 2015.  Year-to-date comparable store sales growth for the Cash & Carry banner was 0.3%.

Net income was $6.2 million, including the effect of higher store development costs, as compared to $15.9 million in the first half of 2015. Net income per diluted share was $0.08 as compared to $0.21 for the same period of 2015.

Adjusted net income was $22.1 million, a decrease of 10.2% as compared to $24.6 million in the first half of 2015. Adjusted net income per diluted share was $0.28 as compared to $0.32 in the same period of 2015.

Adjusted EBITDA was unchanged at $85.7 million, as compared to the same period of 2015.

Growth and Development
During the second quarter of fiscal year 2016, the Company opened 16 new Smart & Final Extra! stores and completed two relocations of legacy Smart & Final stores to the Smart & Final Extra! format. As of June 19, 2016, the Company operated a total of 306 stores, including 161 Smart & Final Extra! stores, 90 legacy Smart & Final stores and 55 Cash & Carry stores.

Operating Stores at Quarter End (June 19, 2016)



Smart & Final Banner Stores






Extra!
format


Legacy
format


Total


Cash & Carry
Banner Stores


Total
Company

End of Fiscal 2015

127


94


221


55


276

New stores

30


-


30


-


30

Relocations, net

4


(4)


-


-


-

Conversions

-


-


-


-


-

End of 2nd Quarter 2016

161


90


251


55


306






















 

Leverage and Liquidity
At June 19, 2016, the Company's debt, net of debt issuance costs, was $617.0 million and cash and cash equivalents were $67.4 million.

In the twenty-four week period ended June 19, 2016, the Company generated cash from operations of $60.4 million and invested $73.5 million in capital expenditures, primarily related to the development of Extra! format stores and to improvements of existing assets.

Outlook
The Company is revising certain elements of the previously issued guidance for the 2016 fiscal year ending January 1, 2017, to reflect our revised expectations of the impact of deflation on sales growth and comparable store sales, and resulting impacts on measures of income (revised elements noted in bold type):

Net sales growth

12.5% - 13.5%

Comparable store sales growth 

(0.5)% - 0.5%

Unit growth (net new stores)

33 Smart & Final Extra!

4 Cash & Carry

Relocations of existing stores to Extra! format

6 Smart & Final stores

 

Conversions of legacy stores to Extra! format

6 Smart & Final stores

Adjusted EBITDA

$185 - $190 million

Adjusted net income

$46 - $48 million 

Adjusted diluted EPS

$0.58 - $0.60

Capital expenditures 

$150 - $160 million

Basic weighted average shares

73.3 million

Fully diluted weighted average shares

79.0 million

 

The above guidance includes certain non-GAAP financial measures (namely adjusted net income, adjusted net income per diluted share and Adjusted EBITDA), which exclude certain costs and non-cash costs and provide investors with additional financial measures of the expected operating performance of the Company's business. The primary factors in reconciling these non-GAAP financial measures to comparable GAAP measures include the following: costs associated with the acquired Haggen store locations of approximately $18 million, non-cash rent related to other stores of approximately $6 million and share-based compensation expense of approximately $10 million. The other amounts needed to reconcile these non-GAAP financial measures to comparable GAAP measures cannot be quantified and are not available without an unreasonable effort.  

In the third quarter of 2016, the Company expects to open two new Smart & Final Extra! stores and complete two relocations of legacy Smart & Final stores to the Extra! format, and open two new Cash & Carry stores.

Second Quarter 2016 Conference Call
The Company will host a conference call today at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to discuss its second quarter 2016 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 8:00 p.m. Eastern Time, by dialing (877) 870-5176 (U.S.) or (858) 384-5517 (International) and entering the replay pin number: 13639710.  The telephonic replay will be available until 11:59 p.m. Eastern Time, on Thursday, August 11, 2016.

About Smart & Final
Smart & Final Stores, Inc. (NYSE: SFS), is a value-oriented food and everyday staples retailer, headquartered in Commerce (near Los Angeles), California. The Company offers quality products in a variety of sizes, saving household, nonprofit and business customers time and money. As of June 19, 2016, the Company operated 306 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 15 stores in Northwestern Mexico operated through a joint venture. In business for 145 years, the Company remains committed to giving back to local communities through employee volunteer opportunities and Company donations to local nonprofits.

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 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 special note concerning "Forward-Looking Statements," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Business" sections and elsewhere in the Company's Annual Report on Form 10-K 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.

 

Smart & Final Stores, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Income 

(Unaudited)

(In Thousands, Except Share and Per Share Amounts)


















 Twelve Weeks Ended 


 Twenty-Four Weeks Ended 


June 19, 2016


June 14, 2015


June 19, 2016


June 14, 2015

















Net sales 

$    1,038,281


$       905,121


$    1,946,734


$    1,727,291

Cost of sales, buying and occupancy 

881,067


763,538


1,661,169


1,463,543

Gross margin 

157,214


141,583


285,565


263,748









Operating and administrative expenses 

138,819


114,131


263,901


221,082

Income from operations 

18,395


27,452


21,664


42,666









Interest expense, net 

7,441


7,676


14,752


15,674

Loss on early extinguishment of debt

-


2,192


-


2,192

Equity in earnings of joint venture 

284


392


728


907

Income before income taxes 

11,238


17,976


7,640


25,707









Income tax provision

(3,432)


(6,938)


(1,472)


(9,786)

Net income

$          7,806


$         11,038


$           6,168


$         15,921









Basic earnings per share

$             0.11


$             0.15


$             0.08


$             0.22

Diluted earnings per share

$             0.10


$             0.14


$             0.08


$             0.21









Weighted average shares outstanding:








       Basic

73,197,064


73,090,917


73,193,107


73,087,600

       Diluted

78,907,184


76,893,066


78,976,605


76,773,674









Comprehensive income:








Net income

$           7,806


$         11,038


$           6,168


$         15,921

Derivative instruments:








       (Loss) gain, net of income tax (benefit) expense of $(163) and $160, respectively, for twelve weeks ended; $(710) and $(754), respectively, for the twenty-four weeks ended

(244)


240


(1,065)


(1,132)

       Reclassification adjustments, net of income tax expense of $2 and $27, respectively, for twelve weeks ended; $5 and $18, respectively, for twenty-four weeks ended

4


40


7


27

Foreign currency translation and employee benefit obligation adjustment

(115)


(180)


(102)


(795)

Other comprehensive (loss) income

(355)


100


(1,160)


(1,900)

Comprehensive income 

$           7,451


$         11,138


$           5,008


$         14,021

 

 

Smart & Final Stores, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In Thousands, Except Share and Per Share Amounts)










 June 19, 2016 


 January 3, 2016 


 (Unaudited) 



Assets 




Current assets: 




Cash and cash equivalents 

$          67,384


$            59,327

Accounts receivable, less allowances of $444 and $454 at June 19, 2016 and January 3, 2016, respectively 

28,378


27,304

Inventories 

245,891


234,289

Prepaid expenses and other current assets 

25,572


29,072

Deferred income taxes 

22,815


22,471

Total current assets 

390,040


372,463





Property, plant, and equipment: 




Land 

10,730


10,940

Buildings and improvements 

20,021


20,441

Leasehold improvements 

262,851


237,820

Fixtures and equipment 

315,417


266,080

Construction in progress 

17,813


19,501


626,832


554,782

Less accumulated depreciation and amortization 

206,801


174,906


420,031


379,876





Capitalized software, net of accumulated amortization of $13,872 and $12,356 at June 19, 2016 and January 3, 2016, respectively 

11,413


11,365

Other intangible assets, net 

373,335


376,122

Goodwill 

611,242


611,242

Equity investment in joint venture 

13,576


12,763

Other assets 

55,333


53,250

Total assets 

$     1,874,970


$       1,817,081









Liabilities and stockholders' equity




Current liabilities: 




Accounts payable 

$        212,364


$          194,149

Accrued salaries and wages 

31,706


33,859

Accrued expenses 

85,004


77,374

Current portion of debt, less debt issuance costs

29,166


3,904

Total current liabilities 

358,240


309,286





Long-term debt, less debt issuance costs

587,840


586,956

Deferred income taxes 

127,580


128,752

Postretirement and postemployment benefits 

115,351


117,417

Other long-term liabilities 

114,382


108,099





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 - 74,215,032 and 73,789,608 at June 19, 2016 and January 3, 2016, respectively

74


74

Additional paid-in capital 

505,296


502,304

Retained earnings 

73,355


70,181

Accumulated other comprehensive loss

(7,148)


(5,988)

Total stockholders' equity 

571,577


566,571

Total liabilities and stockholders' equity 

$     1,874,970


$       1,817,081

 

Smart & Final Stores, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In Thousands)










 Twenty-four Weeks Ended 


 June 19, 2016 


 June 14, 2015 

Operating activities 




Net income 

$               6,168


$             15,921

Adjustments to reconcile net income to net cash provided by operating activities: 




Depreciation 

21,752


16,625

Amortization 

15,035


13,159

Amortization of debt discount and debt issuance costs

1,280


1,293

Share-based compensation

3,418


4,903

Excess tax benefits related to share-based payments


(60)

Deferred income taxes

(811)


(1,878)

Equity in earnings of joint venture 

(728)


(907)

Loss (gain) on disposal of property, plant, and equipment 

65


(26)

Asset impairment 

181


513

Loss on early extinguishment of debt


2,192

Changes in operating assets and liabilities: 




Accounts receivable, net 

(1,074)


2,300

Inventories

(11,602)


8,838

Prepaid expenses and other assets 

2,017


14,558

Accounts payable 

18,215


(4,608)

Accrued salaries and wages 

(2,153)


(3,625)

Other accrued liabilities 

8,682


1,813

Net cash provided by operating activities 

60,445


71,011





Investing activities 




Purchases of property, plant, and equipment 

(70,346)


(59,350)

Proceeds from disposal of property, plant, and equipment 

409


8,091

Assets acquired in Haggen Transaction

(2,227)


Investment in capitalized software 

(1,385)


(2,674)

Other 

(279)


(1,304)

Net cash used in investing activities 

(73,828)


(55,237)





Financing activities




Proceeds from exercise of stock options

1,783


107

Payment of minimum withholding taxes on net share settlement of share-based compensation awards 

(106)


(17)

Fees paid in conjunction with debt financing

(133)


(1,204)

Borrowings on bank line of credit

40,000


Payments on bank line of credit

(15,000)


Payments of public offering costs


(214)

Excess tax benefits related to share-based payments


60

Stock repurchases

(5,104)


Net cash provided by (used in) financing activities

21,440


(1,268)





Net increase in cash and cash equivalents

8,057


14,506

Cash and cash equivalents at beginning of period

59,327


106,847

Cash and cash equivalents at end of period

$             67,384


$           121,353





Cash paid during the period for:




Interest 

$               7,467


$             11,443

Income taxes

$               5,476


$               7,022





Non-cash investing and financing activities




Software development costs incurred but not paid

$                  490


$                    49

Construction in progress costs incurred but not paid

$             13,542


$             12,053

 

 Smart & Final Stores, Inc. and Subsidiaries 

 Segment Reporting 

 (In Thousands) 












 Smart & Final 


 Cash & Carry 


 Corporate / Other 


 Consolidated 

 Twelve Weeks Ended June 19, 2016 









 Net sales 


$      811,754


$      226,527


$               -


$    1,038,281

 Cost of sales, distribution and store occupancy 


685,129


193,579


2,359


881,067

 Operating and administrative expenses 


108,041


15,225


15,553


138,819

 Income (loss) from operations 


$        18,584


$        17,723


$    (17,912)


$        18,395



















 Capital expenditures 


$        40,524


$             824


$       1,470


$        42,818

 Assets acquired in Haggen Transaction 


$             426


$                  -


$               -


$             426




























 Twelve Weeks Ended June 14, 2015 









 Net sales 


$      687,353


$      217,768


$               -


$      905,121

 Cost of sales, distribution and store occupancy 


574,217


187,208


2,113


763,538

 Operating and administrative expenses 


82,399


14,632


17,100


114,131

 Income (loss) from operations 


$        30,737


$        15,928


$    (19,213)


$        27,452



















 Capital expenditures 


$        33,183


$          2,641


$        1,817


$        37,641




























 Twenty-four Weeks Ended June 19, 2016 









 Net sales 


$    1,521,068


$      425,666


$               -


$    1,946,734

 Cost of sales, distribution and store occupancy 


1,291,811


364,696


4,662


1,661,169

 Operating and administrative expenses 


203,241


30,050


30,610


263,901

 Income (loss) from operations 


$         26,016


$        30,920


$    (35,272)


$         21,664



















 Capital expenditures 


$         67,123


$          1,886


$       2,722


$         71,731

 Assets acquired in Haggen Transaction 


$           2,227


$                  -


$               -


$           2,227




























 Twenty-four Weeks Ended June 14, 2015 









 Net sales 


$    1,316,189


$      411,102


$               -


$    1,727,291

 Cost of sales, distribution and store occupancy 


1,104,837


354,515


4,191


1,463,543

 Operating and administrative expenses 


160,646


28,519


31,917


221,082

 Income (loss) from operations 


$         50,706


$        28,068


$    (36,108)


$         42,666



















 Capital expenditures 


$         54,050


$          4,319


$        3,655


$        62,024

 

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 evaluate our operating and financial performance and to compare such performance to that of prior periods. We also use these non-GAAP financial measures in making operational and financial decisions and in establishing operational goals. We believe that providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, helps investors to (i) evaluate our operating and financial performance and future prospects, (ii) compare financial results across accounting periods, (iii) better understand the long-term performance of our core business and (iv) evaluate trends in our business, all consistent with how management evaluates such performance and movements. 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 tables present 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 twelve-week and twenty-four week periods ended June 19, 2016 and June 14, 2015.

 

 Smart & Final  Stores, Inc. and Subsidiaries 

 Reconciliation of EBITDA to Adjusted EBITDA 

 (Unaudited) 

 (In Thousands) 










 Twelve Weeks
Ended 


 Twelve Weeks
Ended 


 Twenty-four
Weeks Ended 


 Twenty-four
Weeks Ended 


June 19, 2016


June 14, 2015


June 19, 2016


June 14, 2015

 Net income 

$             7,806


$           11,038


$           6,168


$         15,921

 Depreciation and amortization  

19,253


15,282


36,787


29,783

 Interest expense, net 

7,441


7,676


14,752


15,674

 Income tax provision 

3,432


6,938


1,472


9,786

 EBITDA 

37,932


40,934


59,179


71,164









 Adjustments to EBITDA 








 Transaction costs (a) 

-


875


-


936

 Net loss from closed stores and exit costs (b) 

2,602


1,284


3,738


1,374

 Loss from asset dispositions (c) 

57


95


185


503

 Share-based compensation expense (d) 

1,911


2,519


3,418


4,903

 Non-cash rent (e) 

1,422


484


2,506


1,277

 Pre-opening costs (f) 

247


2,277


437


3,410

 Acquired Haggen store locations pre-opening costs and non-cash rent (g) 

6,537


-


16,278


-

 Loss on extinguishment of debt (h) 

-


2,192


-


2,192

 Other items (i) 

-


25


6


(45)

 Adjusted EBITDA 

$           50,708


$           50,685


$         85,747


$         85,714

 

 Smart & Final  Stores, Inc. and Subsidiaries 

 Reconciliation of Net Income to Non-GAAP Adjusted Net Income 

 (Unaudited) 

 (In Thousands, Except Share and Per Share Amounts) 










 Twelve Weeks
Ended 


 Twelve Weeks
Ended 


 Twenty-four
Weeks Ended 


 Twenty-four
Weeks Ended 


June 19, 2016


June 14, 2015


June 19, 2016


June 14, 2015

 Net income 

$             7,806


$           11,038


$           6,168


$         15,921

 Income tax provision 

3,432


6,938


1,472


9,786

 Income before income taxes 

11,238


17,976


7,640


25,707









 Adjustments to Net Income 








 Transaction costs (a) 

-


875


-


936

 Net loss from closed stores and exit costs (b) 

2,602


1,284


3,738


1,374

 Loss from asset dispositions (c) 

57


95


185


503

 Share-based compensation expense (d) 

1,911


2,519


3,418


4,903

 Non-cash rent (e) 

1,422


484


2,506


1,277

 Pre-opening costs (f) 

247


2,277


437


3,410

 Costs associated with acquired Haggen store locations (g) 

6,537


-


16,278


-

 Loss on extinguishment of debt (h) 

-


2,192


-


2,192

 Other items (i) 

-


25


6


(45)

 Adjusted income tax provision 

(8,546)


(10,833)


(12,107)


(15,638)

 Adjusted net income 

$           15,468


$           16,894


$         22,101


$         24,619









Adjusted Net Income Per Share
















Net income per share - basic

$             0.11


$             0.15


$           0.08


$           0.22

Per share impact of net income adjustments

0.10


0.08


0.22


0.12

Adjusted net income per share - basic

$             0.21


$             0.23


$           0.30


$           0.34

Net income per share - diluted

$             0.10


$             0.14


$           0.08


$           0.21

Per share impact of net income adjustments

0.10


0.08


0.20


0.11

Adjusted net income per share - diluted

$             0.20


$             0.22


$           0.28


$           0.32









Weighted average shares - basic

73,197,064


73,090,917


73,193,107


73,087,600

Weighted average shares - fully diluted

78,907,184


76,893,066


78,976,605


76,773,674



(a)

Represents costs primarily associated with the Company's secondary public offering that were charged to expense in the twelve and twenty-four weeks ended June 14, 2015.

(b)

Represents costs associated with store closure and exit costs.

(c)

Represents non-cash 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 new store opening costs and non-cash rent related to acquired former Haggen store locations.

(h)

Represents loss on the early extinguishment of debt in the twelve and twenty-four weeks ended June 14, 2015 in connection with an amendment to the Company's Term Loan Facility.

(i)

Represents (i) severance costs  in the twenty-four weeks ended June 19, 2016 and the twelve and twenty-four weeks ended June 14, 2015 and (ii) death benefit income from a Company-owned life insurance policy in the twenty-four weeks ended June 14, 2015.

 

Logo - http://photos.prnewswire.com/prnh/20140929/149066

 

SOURCE Smart & Final Stores, Inc.