Smart & Final Stores, Inc. Reports Third Quarter 2017 Financial Results

COMMERCE, Calif., Nov. 15, 2017 /PRNewswire/ -- Smart & Final Stores, Inc. (the "Company") (NYSE:SFS), the value-oriented food and everyday staples retailer, today reported financial results for the fiscal third quarter ended October 8, 2017.

Third Quarter Highlights:

  • Net sales increase of 4.5% to $1,457.4 million
  • Comparable store sales increase of 1.5%
  • Net income of $5.1 million, or $0.07 per diluted share
  • Adjusted net income of $12.9 million, or $0.17 per diluted share
  • Adjusted EBITDA of $62.9 million, an increase of 10%

"Our third quarter financial performance demonstrates improving fundamentals despite a challenging industry environment," said David Hirz, President and Chief Executive Officer. "We are encouraged by our 4.5% increase in net sales and 1.5% growth in comparable store sales, the second consecutive quarter of positive comparable store sales in 2017. Our stable gross margin rate and low-cost operating model helped to deliver a 10% increase in adjusted EBITDA over the prior year quarter."

Mr. Hirz continued, "Smart & Final has a long history of business evolution and we're well positioned to support our customers' needs today and in the future. We've invested to provide customers with digital ordering and delivery platforms to allow for greater flexibility in shopping from our unique, value-oriented assortment. Looking forward to 2018, we are planning a disciplined approach to capital investment, with more modest unit growth to realize the benefits of the significant investments made in new stores in the last couple of years. As a result, we expect that our debt-to-EBITDA leverage ratio will continue to improve."

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 EBITDA, adjusted EBITDA, adjusted net income, adjusted net income per share, and adjusted net income per diluted share, 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 results below are first presented on a GAAP basis and then on a non-GAAP adjusted basis.

Fiscal Third Quarter 2017 Financial Results
Net sales were $1,457.4 million in the 16-week quarter ended October 8, 2017, representing a 4.5% increase as compared to $1,394.4 million for the same period of 2016. Net sales growth was driven by a 1.5% increase in comparable store sales and from the net sales contribution of new stores. Comparable store sales growth was comprised of a 1.5% increase in comparable average transaction size and a 0.1% increase in comparable transaction count, including the effect of cannibalization from new stores.

Net sales for Smart & Final banner stores were $1,115.2 million, a 2.9% increase as compared to $1,083.4 million for the same period of 2016. Comparable store sales growth for the Smart & Final banner was 1.0% in the third quarter.

Net sales for Cash & Carry banner stores were $342.1 million, a 10.0% increase as compared to $311.0 million for the same period of 2016. Comparable store sales growth for the Cash & Carry banner was 3.4% in the third quarter.

Gross margin was $213.8 million, a 5.3% increase as compared to $203.0 million in the third quarter of 2016. Gross margin rate was 14.7% as compared to 14.6% for the same period of 2016.

Operating and administrative expenses were $195.3 million, a 6.5% increase as compared to $183.4 million for the same period of 2016. This increase was primarily related to expenses associated with the 15 new stores that opened following the third quarter of 2016 through the end of the third quarter of 2017 and related support costs.

Net income was $5.1 million, including the effect of store development expenses, as compared to $7.0 million for the same period of 2016. Net income per diluted share was $0.07 as compared to $0.09 for the same period of 2016.

Adjusted net income was $12.9 million, as compared to $15.0 million for the same period of 2016. Adjusted net income per diluted share was $0.17 as compared to $0.19 for the same period of 2016.

Adjusted EBITDA was $62.9 million as compared to $57.2 million for the same period of 2016.

Fiscal Year-to-Date Financial Results
In the forty weeks ended October 8, 2017, net sales were $3,502.7 million, an increase of 4.8% as compared to $3,341.2 million for the same period of 2016.  Net sales growth was driven by the net sales contribution of new stores, and a 0.4% increase in comparable store sales. Comparable store sales growth was comprised of a 0.5% increase in comparable transaction count, partially offset by a 0.1% decrease in comparable average transaction size. 

Net sales for Smart & Final banner stores were $2,716.3 million, an increase of 4.3% as compared to $2,604.5 million for the same period of 2016. Year-to-date comparable store sales for the Smart & Final banner increased 0.1%.

Net sales for Cash & Carry banner stores were $786.3 million, a 6.7% increase as compared to $736.7 million for the same period of 2016. Year-to-date comparable store sales for the Cash & Carry banner increased 1.3%.

Net income was $7.6 million, as compared to $13.2 million for the same period of 2016. Net income per diluted share was $0.10 as compared to $0.17 for the same period of 2016.

Adjusted net income was $22.4 million, as compared to $37.1 million for the same period of 2016. Adjusted net income per diluted share was $0.30 as compared to $0.47 for the same period of 2016.

Adjusted EBITDA was $135.4 million, as compared to $142.9 million for the same period of 2016.

Growth and Development
During the fiscal third quarter of 2017, the Company opened one new Smart & Final Extra! store, and completed two conversions of legacy Smart & Final stores to the Extra! store format, including one store relocation. The Company also opened two new Cash & Carry banner stores during the quarter. As of October 8, 2017, the Company operated a total of 316 stores, including 183 Smart & Final Extra! stores, 70 legacy format Smart & Final stores and 63 Cash & Carry stores.

Operating Stores at Fiscal Quarter End (October 8, 2017)














Smart & Final Banner Stores


Cash & Carry
Banner Stores


Total
Company


Extra!
format


Legacy
format


Total



End of Fiscal 2016

172


74


246


59


305

New stores

7


-


7


4


11

Relocations, net

2


(2)


-


-


-

Conversions

2


(2)


-


-


-

Store closures

-


-


-


-


-

End of 3rd Quarter 2017

183


70


253


63


316






















Leverage and Liquidity
As of October 8, 2017, the Company's debt, net of debt issuance costs, was $683.1 million and cash and cash equivalents were $60.9 million.

For the forty weeks ended October 8, 2017, the Company generated cash from operations of $128.0 million and invested $117.6 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 its previously issued guidance framework for the full year ending December 31, 2017, as noted in the table below.  As a result, the Company is also providing fiscal fourth quarter 2017 guidance.   


Previous Full Year
2017 Guidance

Revised Full
Year 2017 Guidance


4th Quarter
2017 Guidance

Comparable store sales growth

1.0% - 1.5%

0.8% - 1.0%


2.50% - 2.75%

Net sales growth

5.5% - 6.0%

5.0% - 5.2%


6.25% - 6.50%

Unit growth (new stores)

15 Smart & Final
Extra!

4 Cash & Carry

14 Smart & Final
Extra!

4 Cash & Carry


7 new Smart & Final
Extra! in quarter

Relocations of existing stores to
Extra! format

3 Smart & Final stores

3 Smart & Final stores


1 store relocation in
quarter

Expansions or conversions of
legacy stores to Extra! format

4 to 5 Smart &
Final stores

5 Smart & Final stores


3 store expansions
in quarter

Adjusted EBITDA

$185 - $190 million

Approximately $185
million


Approximately $49
million

Adjusted net income

$39 - $41 million

$32.5 to $33.5 million


$10 to $11 million

Adjusted diluted EPS

$0.50 - $0.52

Approximately $0.43


Approximately $0.14

Capital expenditures (stores)

$120 - $130 million

$120 - $130 million


$13 - $23 million

Fully diluted weighted average shares

77 million shares

75 million shares


74 million shares

The above guidance includes certain non-GAAP financial measures (namely adjusted EBITDA, adjusted net income and adjusted net income per diluted share), 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: pre-opening costs associated with new stores of approximately $5 million, non-cash rent related to stores of approximately $6 million, share-based compensation expense of approximately $11 million, and $3 million of severance expense. 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.

Fiscal Third Quarter 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 fiscal third quarter 2017 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 "For Investors" section of the Company's web site at www.smartandfinal.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 (844) 512-2921 (U.S.) or (412) 317-6671 (International) and entering the replay pin number: 13671853. The telephonic replay will be available until 11:59 p.m. Eastern Time, November 29, 2017.

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 October 8, 2017, the Company operated 316 grocery and foodservice stores under the "Smart & Final," "Smart & Final Extra!" and "Cash & Carry Smart Foodservice" banners in California, Oregon, Washington, Arizona, Nevada, Idaho, Montana and Utah, with an additional 15 stores in Northwestern Mexico operated through a joint venture. In business for over 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

(Unaudited)

(In Thousands, Except Share and Per Share Amounts)


















 Sixteen Weeks Ended 


 Forty Weeks Ended 


October 8, 2017


October 9, 2016


October 8, 2017


October 9, 2016

















Net sales 

$        1,457,353


$        1,394,429


$        3,502,657


$        3,341,163

Cost of sales, buying and occupancy 

1,243,490


1,191,400


2,993,413


2,852,569

Gross margin 

213,863


203,029


509,244


488,594









Operating and administrative expenses 

195,285


183,402


474,021


447,303

Income from operations 

18,578


19,627


35,223


41,291









Interest expense, net 

11,229


9,977


27,738


24,729

Loss on early extinguishment of debt

-


4,978


-


4,978

Equity in earnings of joint venture 

362


502


576


1,230

Income before income taxes 

7,711


5,174


8,061


12,814









Income tax (provision) benefit

(2,605)


1,859


(419)


387

Net income

$               5,106


$               7,033


$               7,642


$             13,201









Basic earnings per share

$                 0.07


$                 0.10


$                 0.11


$                 0.18

Diluted earnings per share

$                 0.07


$                 0.09


$                 0.10


$                 0.17









Weighted average shares outstanding:








       Basic

72,446,404


72,601,724


72,437,033


72,956,554

       Diluted

74,253,374


77,705,917


75,588,182


78,468,330


 

Smart & Final Stores, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In Thousands, Except Share and Per Share Amounts)






 October 8, 2017 


 January 1, 2017 


 (Unaudited) 



Assets 




Current assets: 




Cash and cash equivalents 

$              60,890


$            54,235

Accounts receivable, less allowances of $425 and $434 at 




October 8, 2017 and January 1, 2017, respectively 

33,889


31,809

Inventories 

271,327


278,718

Prepaid expenses and other current assets 

31,885


48,769

Deferred income taxes 

-


22,105

Total current assets 

397,991


435,636





Property, plant, and equipment: 




Land 

10,678


9,106

Buildings and improvements 

26,384


17,351

Leasehold improvements 

330,341


301,522

Fixtures and equipment 

403,967


353,764

Construction in progress 

45,817


12,110


817,187


693,853

Less accumulated depreciation and amortization 

318,072


249,251


499,115


444,602





Capitalized software, net of accumulated amortization of 




$16,556 and $13,293 at October 8, 2017 and 




January 1, 2017, respectively 

17,875


10,392

Other intangible assets, net 

364,148


369,519

Goodwill 

611,242


611,242

Equity investment in joint venture 

15,055


14,366

Other assets 

69,988


66,662

Total assets 

$         1,975,414


$       1,952,419









Liabilities and stockholders' equity




Current liabilities: 




Accounts payable 

$            229,470


$          225,227

Accrued salaries and wages 

35,173


31,933

Accrued expenses 

103,486


82,925

Current portion of debt, less debt issuance costs

65,445


62,352

Total current liabilities 

433,574


402,437





Long-term debt, less debt issuance costs

617,602


616,588

Deferred income taxes 

107,696


129,902

Postretirement and postemployment benefits 

112,779


121,409

Other long-term liabilities 

145,372


129,834





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 - 73,216,516 and 72,930,653 




  at October 8, 2017 and January 1, 2017, respectively

73


73

Additional paid-in capital 

502,617


500,666

Retained earnings 

68,396


65,093

Accumulated other comprehensive loss

(12,695)


(13,583)

Total stockholders' equity 

558,391


552,249

Total liabilities and stockholders' equity 

$         1,975,414


$       1,952,419

 


Smart & Final Stores, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In Thousands)






 Forty Weeks Ended 


 October 8, 2017 


 October 9, 2016 

Operating activities 




Net income 

$                   7,642


$                 13,201

Adjustments to reconcile net income to net cash provided 




by operating activities: 




Depreciation 

44,526


38,421

Amortization 

30,522


26,094

Amortization of debt discount and debt issuance costs

1,485


2,040

Share-based compensation

8,504


7,248

Deferred income taxes

(506)


(608)

Equity in earnings of joint venture 

(576)


(1,230)

(Gain) loss on disposal of property, plant, and equipment 

(50)


34

Asset impairment 

1,430


790

Loss on early extinguishment of debt


4,978

Changes in operating assets and liabilities: 




Accounts receivable, net 

(3,858)


(3,000)

Inventories

7,391


(21,185)

Prepaid expenses and other assets 

16,404


(6,469)

Accounts payable 

(758)


11,115

Accrued salaries and wages 

3,240


1,681

Other accrued liabilities 

12,644


12,905

Net cash provided by operating activities 

128,040


86,015





Investing activities 




Purchases of property, plant, and equipment 

(107,078)


(113,195)

Proceeds from disposal of property, plant, and equipment 

1,850


443

Assets acquired in Haggen Transaction


(2,235)

Investment in capitalized software 

(10,505)


(2,752)

Other 

(579)


(2,106)

Net cash used in investing activities 

(116,312)


(119,845)





Financing activities




Borrowings on bank line of credit




Issuance of bank debt, net of issuance costs




Issuance of common stock in IPO




Issuance of common stock, other




Proceeds from exercise of stock options

3,780


3,477

Payment of minimum withholding taxes on net share settlement of 




   share-based compensation awards 

(1,826)


(652)

Fees paid in conjunction with debt financing

(154)


(8,374)

Borrowings on bank line of credit

63,000


70,000

Payments on bank line of credit

(57,000)


(38,000)

Issuance of bank debt, net of issuance costs


30,093

Stock repurchases

(12,873)


(27,998)

Net cash (used in) provided by financing activities

(5,073)


28,546





Net increase in cash and cash equivalents

6,655


(5,284)

Cash and cash equivalents at beginning of period

54,235


59,327

Cash and cash equivalents at end of period

$                 60,890


$                 54,043





Cash paid during the period for:




Interest 

$                 26,191


$                 21,766

Income taxes

$                          1


$                   8,091





Non-cash investing and financing activities




Software development costs incurred but not paid

$                      331


$                        41

Construction in progress costs incurred but not paid

$                 26,093


$                 13,695

 

 Smart & Final Stores, Inc. and Subsidiaries 

 Segment Information 

 (In Thousands) 












 Smart & Final 


 Cash & Carry 


 Corporate /
Other 


 Consolidated 

 Sixteen Weeks Ended October 8, 2017 









 Net sales 


$      1,115,234


$         342,119


$                             -


$     1,457,353

 Cost of sales, distribution and store occupancy 


948,476


292,502


2,512


1,243,490

 Operating and administrative expenses 


145,410


23,972


25,903


195,285

 Income (loss) from operations 


$           21,348


$           25,645


$                 (28,415)


$          18,578



















 Capital expenditures 


$           38,699


$             5,201


$                     4,201


$          48,101





































 Sixteen Weeks Ended October 9, 2016 









 Net sales 


$      1,083,437


$         310,992


$                             -


$     1,394,429

 Cost of sales, distribution and store occupancy 


922,201


266,238


2,961


1,191,400

 Operating and administrative expenses 


141,010


21,082


21,310


183,402

 Income (loss) from operations 


$           20,226


$           23,672


$                 (24,271)


$          19,627



















 Capital expenditures 


$           38,345


$             3,957


$                     1,914


$          44,216




























 Forty Weeks Ended October 8, 2017 









 Net sales 


$      2,716,337


$         786,320


$                             -


$     3,502,657

 Cost of sales, distribution and store occupancy 


2,311,878


675,007


6,528


2,993,413

 Operating and administrative expenses 


357,112


57,579


59,330


474,021

 Income (loss) from operations 


$           47,347


$           53,734


$                 (65,858)


$          35,223



















 Capital expenditures 


$           93,503


$           11,575


$                   12,505


$        117,583





































 Forty Weeks Ended October 9, 2016 









 Net sales 


$      2,604,505


$         736,658


$                             -


$     3,341,163

 Cost of sales, distribution and store occupancy 


2,214,012


630,934


7,623


2,852,569

 Operating and administrative expenses 


344,251


51,132


51,920


447,303

 Income (loss) from operations 


$           46,242


$           54,592


$                 (59,543)


$          41,291



















 Capital expenditures 


$         105,468


$             5,843


$                     4,636


$        115,947

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 EBITDA and adjusted EBITDA, adjusted net income, adjusted net income per share, and adjusted net income per diluted share) 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 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.  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.

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 net income to EBITDA, adjusted EBITDA and adjusted net income, and net income per share to adjusted net income per share and adjusted net income per diluted share, for the sixteen-week and forty-week periods ended October 8, 2017 and October 9, 2016.

 Smart & Final Stores, Inc. and Subsidiaries 

 Reconciliation of EBITDA to Adjusted EBITDA 

 (Unaudited) 

 (In Thousands) 










Sixteen Weeks
Ended October 8,
2017


Sixteen Weeks
Ended October 9,
2016


Forty Weeks
Ended October 8,
2017


Forty Weeks
Ended October 9,
2016

 Net income 

$                       5,106


$                       7,033


$                    7,642


$                  13,201

 Depreciation and amortization  

31,052


27,728


75,049


64,515

 Interest expense, net 

11,229


9,977


27,738


24,729

 Income tax provision (benefit)  

2,605


(1,859)


419


(387)

 EBITDA 

49,992


42,879


110,848


102,058









 Adjustments to EBITDA 








 Net loss from closed stores and exit costs (a) 

1,275


2,283


2,556


6,021

 Loss from asset dispositions (b) 

830


819


1,458


1,004

 Share-based compensation expense (c) 

4,199


3,830


8,503


7,248

 Non-cash rent (d) 

1,917


2,889


5,043


6,258

 Pre-opening costs (e) 

1,346


917


3,519


16,769

 Loss on extinguishment of debt (f) 

-


4,978


-


4,978

 Other items (g) 

3,354


(1,401)


3,435


(1,395)

 Adjusted EBITDA 

$                     62,913


$                     57,194


$                135,362


$                142,941

 

 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)










Sixteen Weeks
Ended October 8,
2017


Sixteen Weeks
Ended October 9,
2016


Forty Weeks
Ended October 8,
2017


Forty Weeks
Ended October 9,
2016

 Net income

$                       5,106


$                       7,033


$                    7,642


$                  13,201

 Income tax provision (benefit)

2,605


(1,859)


419


(387)

 Income before income taxes

7,711


5,174


8,061


12,814









 Adjustments to net income








 Net loss from closed stores and exit costs (a)

1,275


2,283


2,556


6,021

 Loss from asset dispositions (b)

830


819


1,458


1,004

 Share-based compensation expense (c)

4,199


3,830


8,503


7,248

 Non-cash rent (d)

1,917


2,889


5,043


6,258

 Pre-opening costs (e)

1,346


917


3,519


16,769

 Loss on extinguishment of debt (f)

-


4,978


-


4,978

 Other items (g)

3,354


(1,401)


3,435


(1,395)

 Adjusted income tax provision

(7,702)


(4,443)


(10,090)


(16,542)

 Adjusted net income

$                     12,930


$                     15,046


$                  22,485


$                  37,155









Adjusted Net Income Per Share
















Net income per share - basic

$                       0.07


$                       0.10


$                    0.11


$                    0.18

Per share impact of net income adjustments

0.11


0.11


0.20


0.33

Adjusted net income per share - basic

$                       0.18


$                       0.21


$                    0.31


$                    0.51

Net income per share - diluted

$                       0.07


$                       0.09


$                    0.10


$                    0.17

Per share impact of net income adjustments

0.10


0.10


0.20


0.30

Adjusted net income per share - diluted

$                       0.17


$                       0.19


$                    0.30


$                    0.47









Weighted average shares - basic

72,446,404


72,601,724


72,437,033


72,956,554

Weighted average shares - diluted

74,253,374


77,705,917


75,588,182


78,468,330



(a) 

Represents costs associated with store closure and exit costs.

(b) 

Represents non-cash loss associated with asset dispositions and impairment charges.

(c) 

Represents expenses associated with the Company's equity-based incentive award program.

(d) 

Represents non-cash component of recognized rent expense. 

(e) 

Represents new store and relocation opening costs consisting primarily of rent, utilities, distribution, store labor and advertising.

(f) 

Represents loss on the early extinguishment of debt in the sixteen and forty weeks ended October 9, 2016 in connection with amendments to the Company's Term Loan Facility.

(g) 

Represents (i) severance costs in the sixteen and forty weeks ended October 8, 2017 and the sixteen and forty weeks ended October 9, 2016, and (ii) death benefit income from a Company-owned life insurance policy in the sixteen and forty weeks ended October 9, 2016.

 

Smart & Final Stores, Inc. logo (PRNewsFoto/Smart & Final Stores LLC)

 

SOURCE Smart & Final Stores, Inc.