Smart & Final Stores, Inc. Reports Fourth Quarter and Full Year 2018 Financial Results

COMMERCE, Calif., March 13, 2019 /PRNewswire/ -- Smart & Final Stores, Inc. (the "Company") (NYSE:SFS), the value-oriented food and everyday staples retailer, today reported financial results for the fiscal fourth quarter and full year ended December 30, 2018.

Fourth Quarter Highlights:

  • Net sales increased 3.2% to $1,102.4 million with a comparable store sales increase of 1.9%
  • Gross margin increased 2.9% to $169.2 million
  • Adjusted EBITDA of $41.5 million
  • Net loss of $121.8 million or $1.66 per share, reflects non-cash valuation charges including goodwill impairment
  • Adjusted net income of $6.0 million or $0.08 per share

"Our fiscal 2018 performance was solid, with 3.7% year-over-year sales growth, while facing an environment with low rates of product price inflation and rising operating costs that created significant headwinds to earnings growth.  In the fourth quarter we delivered our seventh consecutive quarter of positive comparable store sales, led by growth in both average transaction size and comparable transaction count, reflecting our unique assortment of business and club-pack items, our high-quality private label offerings, and convenient e-commerce options," said David Hirz, president and chief executive officer of the Company.

Mr. Hirz, continued, "In 2019 we will continue to aggressively expand online options for both our small business and household customers, by introducing new e-commerce channels and order fulfillment options. Our vision will offer even greater levels of value and convenience to our target customers, at attractive economics, to capitalize on the significant growth in e-commerce that we continue to experience."

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 Fourth Quarter 2018 Financial Results

Net sales were $1,102.4 million in the 12-week quarter ended December 30, 2018, representing a 3.2% increase as compared to $1,067.9 million for the same period of 2017. Net sales growth was driven by a 1.9% increase in comparable store sales and from the net sales contribution of new stores. Comparable store sales growth was comprised of a 1.7% increase in comparable average transaction size and a 0.2% increase in comparable transaction count.

Net sales for Smart & Final banner stores were $864.4 million, a 2.7% increase as compared to $841.4 million for the same period of 2017. Comparable store sales growth for the Smart & Final banner was 1.3% in the fourth quarter.

Net sales for Smart Foodservice Warehouse banner stores were $238.0 million, a 5.0% increase as compared to $226.6 million for the same period of 2017. Comparable store sales growth for the Smart Foodservice Warehouse banner was 4.3% in the fourth quarter.

Gross margin was $169.2 million, a 2.9% increase as compared to $164.4 million in the fourth quarter of 2017. Gross margin rate was 15.3% as compared to 15.4% for the same period of 2017.

Operating and administrative expenses were $174.4 million, or $158.6 million excluding a store valuation impairment charge, a 7.8% increase as compared to $147.1 million for the same period of 2017. This increase was related to expenses associated with the effect of increased sales and higher wage rates, as well as new stores opened during the prior twelve months and their related support costs.

Interest expense in the fourth quarter was $10.7 million, a 23.0% increase as compared to $8.7 million in the prior year quarter, primarily driven by higher interest rates as well as interest expense related to accounting for build-to-suit store developments.

Net loss was $121.8 million, or $1.66 per diluted share, as compared to a net loss of $146.6 million, or $2.03 per diluted share, for the same period of 2017. These results include a goodwill impairment charge of $94.0 million related to the Company's Smart & Final banner, store impairment charges of $12.5 million and valuation charges related to deferred tax assets of $13.1 million on an after-tax basis. This compares to a goodwill impairment charge of $180.0 million in the same period of 2017.

Adjusted net income was $6.0 million, or $0.08 per diluted share, as compared to adjusted net income of $11.3 million, or $0.15 per diluted share, for the same period of 2017.   

Adjusted EBITDA was $41.5 million as compared to $49.1 million for the same period of 2017.

Fiscal 2018 Financial Results

In the fifty-two weeks ended December 30, 2018, net sales were $4,741.8 million, an increase of 3.7% as compared to $4,570.6 million in 2017. Net sales growth was driven in part by the net sales contribution of new stores and a 1.2% increase in comparable store sales. The increase in comparable store sales was attributable to a 2.3% increase in comparable average transaction size, partially offset by a 1.1% decrease in comparable transaction count. 

Net sales for Smart & Final banner stores were $3,672.2 million, an increase of 3.2% as compared to $3,557.7 million in 2017. Full year 2018 comparable store sales for the Smart & Final banner increased 0.5%.

Net sales for Smart Foodservice Warehouse banner stores were $1,069.6 million, a 5.6% increase as compared to $1,012.9 million in 2017. Full year 2018 comparable store sales for the Smart Foodservice Warehouse banner increased 3.6%.

Net loss was $112.2 million, which included non-cash impairment and valuation charges of $119.6 million on an after-tax basis. This compares to a net loss of $138.9 million, which included a goodwill impairment charge of $180.0 million, in 2017. In fiscal 2017, the results included a non-cash net benefit of $27.0 million, as a result of the Tax Cuts and Jobs Act and other one-time items, primarily due to a lower valuation of net deferred tax liabilities. Net loss per share was $1.54 in 2018, as compared to $1.92 for 2017.

Adjusted net income was $31.4 million, as compared to $33.7 million in 2017. Adjusted net income per diluted share was $0.42, compared to $0.45 per diluted share in 2017.

Adjusted EBITDA was $181.8 million, as compared to $184.4 million in 2017.

Impairment and Valuation Charges

In the fourth quarter of 2018, the Company conducted an annual assessment of its goodwill as required under accounting standard ASC 350 resulting in an impairment of the Smart & Final banner goodwill in the amount of $94.0 million.  The Company also recorded impairment and other valuation charges of $25.6 million related to the recoverability of certain store fixed assets and deferred tax assets on an after-tax basis.

Growth and Development

During the fourth quarter of 2018, the Company opened one new Smart & Final Extra! store, relocated one legacy Smart & Final store to an Extra! format store and closed one legacy Smart & Final store whose lease was expiring. The Company also opened two new Smart Foodservice Warehouse stores during the fourth quarter. As of December 30, 2018, the Company operated a total of 326 stores, including 201 Smart & Final Extra! stores, 59 legacy format Smart & Final stores and 66 Smart Foodservice Warehouse stores.

Operating Stores at Fiscal Year End (December 30, 2018)












 Smart & Final Banner Stores






  Extra!
format


 Legacy
format


 Total


 Smart
Foodservice
Warehouse
Banner
Stores


 Total
Company

End of Fiscal Year 2017

194


66


260


63


323

New stores

4


-


4


3


7

Relocations, net

3


(3)


-


-


-

Conversions

-


-


-


-


-

Store closures

-


(4)


(4)


-


(4)

End of Fiscal Year 2018

201


59


260


66


326











Leverage and Liquidity

As of December 30, 2018, the Company's debt, net of debt issuance costs, was $648.3 million and cash and cash equivalents were $67.2 million.

During the fifty-two weeks ended December 30, 2018, the Company generated cash from operations of $141.2 million and invested $131.5 million in capital expenditures, primarily related to the improvement of existing assets and new stores.

As of December 30, 2018, the Company's outstanding borrowings under its revolving credit facility were $30.0 million reflecting a reduction of $51.0 million for the fifty-two weeks ended December 30, 2018.

Outlook

The Company is providing the following guidance for the full year ending December 29, 2019:


Full Year 2019 Guidance

Net sales growth

2.5% - 3.5%

Comparable store sales growth

1.5% - 2.5%

Unit growth (new stores)

1 Smart & Final Extra! store

4 Smart Foodservice Warehouse stores

Relocations of legacy stores to Extra! format

1-2 Smart & Final stores

Adjusted EBITDA

$185 - $195 million

Adjusted net income

$32 - $36 million

Adjusted diluted EPS

$0.41 - $0.46

Capital expenditures (net)

$65 - $75 million

Fully diluted weighted average shares

77 to 78 million

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 $2.6 million, non-cash rent related to stores of approximately $1.5 million, share-based compensation expense of approximately $12.7 million, and $4.8 million of store closure expenses. 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.

Additionally, the Company is providing first quarter 2019 guidance for comparable store sales growth of 1.75% to 2.00% and adjusted EBITDA in the range of $25 to $28 million.

Fiscal Fourth Quarter 2018 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 fourth quarter and full year 2018 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: 13687752. The telephonic replay will be available until 11:59 p.m. Eastern Time, March 27, 2019.

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 December 30, 2018, the Company operated 326 grocery and foodservice stores under the "Smart & Final," "Smart & Final Extra!" and "Smart Foodservice Warehouse Stores" 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 147 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

(In Thousands, Except Share and Per Share Amounts)



Twelve Weeks Ended


Fifty-two Weeks Ended


December 30, 2018


December 31, 2017


December 30, 2018


December 31, 2017









Net sales 

$           1,102,382


$           1,067,908


$           4,741,772


$           4,570,565

Cost of sales, buying and occupancy 

933,168


903,484


4,024,130


3,896,897

Gross margin 

169,214


164,424


717,642


673,668









Operating and administrative expenses 

174,414


147,057


682,306


621,078

Goodwill impairment

94,000


180,000


94,000


180,000

Loss from operations 

(99,200)


(162,633)


(58,664)


(127,410)









Interest expense, net 

10,738


8,732


42,903


36,470

Equity in earnings of joint venture 

492


347


2,093


923

Loss before income taxes 

(109,446)


(171,018)


(99,474)


(162,957)









Income tax (expense) benefit 

(12,376)


24,462


(12,681)


24,043

Net loss 

$             (121,822)


$             (146,556)


$             (112,155)


$             (138,914)









Net loss per share:








      Basic 

$                   (1.66)


$                   (2.03)


$                   (1.54)


$                   (1.92)

      Diluted 

$                   (1.66)


$                   (2.03)


$                   (1.54)


$                   (1.92)









Weighted average shares outstanding:








       Basic

73,479,152


72,068,998


72,890,501


72,352,102

       Diluted

73,479,152


72,068,998


72,890,501


72,352,102

 


Smart & Final Stores, Inc. and Subsidiaries


Condensed Consolidated Balance Sheets


(In Thousands, Except Share and Per Share Amounts)




 December 30, 2018 


 December 31, 2017 





Assets 




Current assets: 




Cash and cash equivalents 

$                   67,217


$                   71,671

Accounts receivable, less allowances of $100 and $177 at 




December 30, 2018 and December 31, 2017, respectively 

36,771


33,019

Inventories 

301,938


289,712

Prepaid expenses and other current assets 

32,346


54,241

Total current assets 

438,272


448,643





Property, plant, and equipment: 




Land 

9,734


10,076

Buildings and improvements 

60,637


53,965

Leasehold improvements 

367,820


346,181

Fixtures and equipment 

450,267


421,912

Construction in progress 

21,784


8,242


910,242


840,376

Less accumulated depreciation and amortization 

428,095


338,149


482,147


502,227





Assets under capital leases

16,862


-

Capitalized software, net of accumulated amortization of 




$20,294 and $17,325 at December 30, 2018 and 




December 31, 2017, respectively 

33,725


21,984

Other intangible assets, net 

355,554


362,536

Goodwill 

291,918


385,918

Equity investment in joint venture 

17,468


15,380

Other assets 

75,972


73,249

Total assets 

$              1,711,918


$              1,809,937









Liabilities and stockholders' equity




Current liabilities: 




Accounts payable 

$                 239,668


$                 245,009

Accrued salaries and wages 

36,757


36,216

Accrued expenses 

99,317


100,639

Current portion of debt, less debt issuance costs

29,095


81,512

Total current liabilities 

404,837


463,376





Obligations under capital leases

17,177


-

Long-term debt, less debt issuance costs

619,204


617,867

Deferred income taxes 

50,365


38,095

Postretirement and postemployment benefits 

115,402


127,649

Other long-term liabilities 

196,778


159,904





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 - 76,524,061 and 74,120,113




  at December 30, 2018 and December 31, 2017, respectively

77


74

Additional paid-in capital 

521,183


506,098

Retained deficit

(190,315)


(78,160)

Accumulated other comprehensive loss

(22,790)


(24,966)

Total stockholders' equity 

308,155


403,046

Total liabilities and stockholders' equity 

$              1,711,918


$              1,809,937

 

Smart & Final Stores, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In Thousands)



Fiscal Year


Fiscal Year


2018


2017





Operating activities 




Net loss

$      (112,155)


$      (138,914)

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




Depreciation 

58,703


58,589

Amortization 

40,825


39,783

Amortization of debt discount and debt issuance costs 

2,040


1,908

Share-based compensation

12,350


11,560

Deferred income taxes

11,414


(20,283)

Equity in earnings of joint venture 

(2,093)


(923)

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

667


(51)

Asset impairment 

19,115


1,796

Goodwill impairment

94,000


180,000

Dividend from joint venture

900


455

Changes in operating assets and liabilities: 




Accounts receivable, net 

(3,752)


(2,988)

Inventories

(12,226)


(10,994)

Prepaid expenses and other assets 

26,323


405

Accounts payable 

(5,341)


19,782

Accrued salaries and wages 

541


4,283

Other accrued liabilities 

9,906


25,087

Net cash provided by operating activities 

141,217


169,495





Investing activities 




Purchases of property, plant, and equipment 

(116,172)


(149,347)

Proceeds from disposal of property, plant, and equipment 

3,448


1,858

Investment in capitalized software 

(18,738)


(14,316)

Other 

(45)


(782)

Net cash used in investing activities 

(131,507)


(162,587)





Financing activities




Proceeds from exercise of stock options

3,401


4,228

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

(665)


(1,850)

Fees paid in conjunction with debt financing

(274)


(245)

Borrowings on bank line of credit

69,000


88,000

Payments on bank line of credit

(120,000)


(71,000)

Payment on promissory note

(1,775)


-

Cash received from landlord related to financing lease obligations

36,149


4,268

Stock repurchases

-


(12,873)

Net cash (used in) provided by financing activities

(14,164)


10,528





Net (decrease) increase in cash and cash equivalents

(4,454)


17,436

Cash and cash equivalents at beginning of period

71,671


54,235

Cash and cash equivalents at end of period

$          67,217


$          71,671





Cash paid during the period for:




Interest 

$          39,334


$          33,957

Income taxes

$                    -


$                   2





Non-cash investing and financing activities




Software development costs incurred but not paid

$            2,029


$            1,397

Construction in progress costs incurred but not paid

12,752


18,834

Property acquired through capital and financing lease obligations

18,030


7,135

 

Smart & Final Stores, Inc. and Subsidiaries

Segment Reporting

(In Thousands)




 Smart & Final 


 Smart
Foodservice 


 Corporate / Other 


 Consolidated 

Twelve Weeks Ended December 30, 2018 









 Net sales 


$         864,413


$       237,969


$

-


$     1,102,382

 Cost of sales, distribution and store occupancy 


729,534


201,793


1,841


933,168

 Operating and administrative expenses 


132,563


20,596


21,255


174,414

 Goodwill impairment 


94,000


-


-


94,000

 Income (loss) from operations 


$          (91,684)


$         15,580


$

(23,096)


$        (99,200)



















 Capital expenditures 


$           10,758


$           8,636


$

7,920


$          27,314





































Twelve Weeks Ended December 31, 2017 









 Net sales 


$         841,354


$       226,554


$

-


$     1,067,908

 Cost of sales, distribution and store occupancy 


708,326


193,537


1,621


903,484

 Operating and administrative expenses 


111,834


17,212


18,011


147,057

 Goodwill impairment 


180,000


-


-


180,000

 Income (loss) from operations 


$        (158,806)


$         15,805


$

(19,632)


$      (162,633)



















 Capital expenditures 


$           40,814


$           1,269


$

3,996


$          46,079






























 Smart & Final 


 Smart
Foodservice 


 Corporate / Other 


 Consolidated 

Fifty-two Weeks Ended December 30, 2018 









 Net sales 


$      3,672,152


$    1,069,620


$

-


$     4,741,772

 Cost of sales, distribution and store occupancy 


3,103,847


911,809


8,474


4,024,130

 Operating and administrative expenses 


517,742


82,925


81,639


682,306

 Goodwill impairment 


94,000


-


-


94,000

 Income (loss) from operations 


$          (43,437)


$         74,886


$

(90,113)


$        (58,664)



















 Capital expenditures 


$           88,777


$         23,626


$

22,507


$        134,910





































Fifty-two Weeks Ended December 31, 2017 









 Net sales 


$      3,557,691


$    1,012,874


$

-


$     4,570,565

 Cost of sales, distribution and store occupancy 


3,020,204


868,544


8,149


3,896,897

 Operating and administrative expenses 


468,946


74,791


77,341


621,078

 Goodwill impairment 


180,000


-


-


180,000

 Income (loss) from operations 


$        (111,459)


$         69,539


$

(85,490)


$      (127,410)



















 Capital expenditures 


$         134,317


$         12,844


$

16,502


$        163,663

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 (benefit) 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 (loss) 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 loss to EBITDA, adjusted EBITDA and adjusted net income, and net loss per share to adjusted net income per share and adjusted net income per diluted share, for the twelve-week and fifty-two week periods ended December 30, 2018 and December 31, 2017.

 Smart & Final  Stores, Inc. and Subsidiaries 

 Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA 

 (Unaudited) 

 (In Thousands) 










Twelve Weeks
Ended December 30,
2018


Twelve Weeks
Ended December 31,
2017


Fifty-two Weeks
Ended December 30,
2018


Fifty-two Weeks
Ended December 31,
2017

 Net loss 

$        (121,822)


$        (146,556)


$        (112,155)


$        (138,914)

 Depreciation and amortization  

23,215


23,324


99,528


98,373

 Interest expense, net 

10,737


8,732


42,902


36,470

 Income tax expense (benefit) 

12,377


(24,462)


12,681


(24,043)

 EBITDA 

(75,493)


(138,962)


42,956


(28,114)









 Adjustments to EBITDA 








 Net loss from closed stores and exit costs (a) 

2,588


1,262


5,139


3,818

 Goodwill impairment (b) 

94,000


180,000


94,000


180,000

 Loss from asset dispositions and impairment charges (c) 

16,053


369


19,750


1,827

 Share-based compensation expense (d) 

2,293


3,057


12,351


11,560

 Non-cash rent (e) 

907


1,492


5,100


6,535

 Pre-opening costs (f) 

638


1,914


2,210


5,433

 Other items (g) 

550


(45)


250


3,390

 Adjusted EBITDA 

$            41,536


$            49,087


$          181,756


$          184,449

 

 Smart & Final  Stores, Inc. and Subsidiaries 

 Reconciliation of Net Loss to Non-GAAP Adjusted Net Income 

 (Unaudited) 

 (In Thousands, Except Share and Per Share Amounts) 










Twelve Weeks
Ended December 30,
2018


Twelve Weeks
Ended December 31,
2017


Fifty-two Weeks
Ended December 30,
2018


Fifty-two Weeks
Ended December 31,
2017

 Net loss 

$         (121,822)


$         (146,556)


$         (112,155)


$         (138,914)

 Income tax expense (benefit) 

12,377


(24,462)


12,681


(24,043)

 Loss before income taxes 

(109,445)


(171,018)


(99,474)


(162,957)









 Adjustments to net loss 








 Net loss from closed stores and exit costs (a) 

2,588


1,262


5,139


3,818

 Goodwill impairment (b) 

94,000


180,000


94,000


180,000

 Loss from asset dispositions and impairment charges (c) 

16,053


369


19,750


1,827

 Share-based compensation expense (d) 

2,293


3,057


12,351


11,560

 Non-cash rent (e) 

907


1,492


5,100


6,535

 Pre-opening costs (f) 

638


1,914


2,210


5,433

 Other items (g) 

550


(45)


250


3,390

 Adjusted income tax provision (h) 

(1,616)


(5,731)


(7,888)


(15,951)

 Adjusted net income 

$              5,968


$            11,300


$            31,438


$            33,655









Adjusted Net Income Per Share
















Net loss per share - basic

$               (1.66)


$               (2.03)


$               (1.54)


$               (1.92)

Per share impact of net income adjustments

1.74


2.19


1.97


2.39

Adjusted net income per share - basic

$                0.08


$                0.16


$                0.43


$                0.47

Net loss per share - diluted

$               (1.63)


$               (1.99)


$               (1.51)


$               (1.85)

Per share impact of net income adjustments

1.71


2.14


1.93


2.30

Adjusted net income per share - diluted

$                0.08


$                0.15


$                0.42


$                0.45









Weighted average shares - basic

73,479,152


72,068,998


72,890,501


72,352,102

Weighted average shares - diluted

74,513,458


73,828,639


74,173,647


75,182,134



(a)

Represents costs associated with store closure and exit costs.

(b)

Represents non-cash charge associated with goodwill impairment.

(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 severance and legal costs in the twelve and fifty-two weeks ended December 30, 2018 and December 31, 2017.

(h)

Reflects exclusion of deferred tax assets valuation charge in the twelve and fifty-two weeks ended December 30, 2018.

 

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

 

SOURCE Smart & Final Stores, Inc.