UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 


 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported) May 2, 2018

 

SMART & FINAL STORES, INC.

(Exact Name of Registrant as Specified in Charter)

 

Delaware

 

001-36626

 

80-0862253

(State or Other Jurisdiction
of Incorporation)

 

(Commission
File Number)

 

(IRS Employer
Identification No.)

 

600 Citadel Drive, Commerce, CA

 

90040

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code (323) 869-7500

 

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

o          Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o          Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o          Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o          Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company   o

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

 



 

Item 2.02        Results of Operations and Financial Condition.

 

On May 2, 2018, Smart & Final Stores, Inc. issued a press release announcing its financial results for the quarter ended March 25, 2018.  The text of the press release is included as Exhibit 99.1 to this Form 8-K.

 

The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.

 

Item 9.01.       Financial Statements and Exhibits.

 

(d)                   Exhibits:

 

Exhibit Number

Description

 

 

99.1

Press Release, dated May 2, 2018

 



 

Exhibit Index

 

Exhibit Number

Description

99.1

Press Release, dated May 2, 2018

 



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

SMART & FINAL STORES, INC.

 

 

 

Date: May 2, 2018

 

 

 

 

 

 

By:

/s/ Richard N. Phegley

 

Name:

Richard N. Phegley

 

Title:

Senior Vice President and Chief Financial Officer

 


Exhibit 99.1

 

 

Smart & Final Stores, Inc. Reports First Quarter 2018 Financial Results

 

COMMERCE, Calif. (May 2, 2018) – Smart & Final Stores, Inc. (the “Company”) (NYSE:SFS), the value-oriented food and everyday staples retailer, today reported financial results for the fiscal first quarter ended March 25, 2018.

 

First Quarter Highlights:

·                  Net sales increased 5.1% to $1,016.2 million with a comparable store sales increase of 1.2%

·                  Gross margin increased 9.9%

·                  Adjusted EBITDA increased 17.3% to $28.6 million

·                  Net loss of $7.1 million or $0.10 per share

·                  Adjusted net loss of $2.8 million or $0.04 per share

·                  Expanded Smart & Final banner online channels by adding the Shop Smart & Final mobile app

·                  Launching transition of Cash & Carry banner to “Smart Foodservice Warehouse Stores”

 

“There are a number of performance highlights to note in the quarter, including a year-over-year net sales increase of 5.1% and over 17% growth in adjusted EBITDA” said David Hirz, president and chief executive officer. “Despite continuing promotional activity within the grocery landscape, we were able to improve our gross margin rate driven by maturing new stores, merchandising initiatives aimed at both household and business customers, and the expansion of our marketing channels.  We’ve also been successfully growing our business customer sales, a key differentiator for us in the market.”

 

Mr. Hirz continued, “E-commerce sales increased over 85%, off a small base, and we have a robust plan for growing our e-commerce capabilities in both banners in 2018, with first quarter accomplishments including the launch of our Shop Smart & Final mobile app. We expect the development of our e-commerce and related offerings will support customer traffic, through both customer acquisition and retention, as adoption of this channel accelerates.  Finally, we’re excited to announce the transition of the Cash & Carry Smart Foodservice banner to “Smart Foodservice Warehouse Stores”, which we believe better supports our brand messaging and value proposition, and reflects how our customers view us in the market.”

 

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 loss, adjusted net loss per share, and adjusted net loss 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 First Quarter 2018 Financial Results

Net sales were $1,016.2 million in the 12-week quarter ended March 25, 2018, representing a 5.1% increase as compared to $967.0 million for the same period of 2017. Net sales growth was driven by a 1.2% increase in comparable store sales and by the net sales contribution of new stores. Comparable store sales growth was comprised of a 2.9% increase in comparable average transaction size, partially offset by a 1.7% decrease in comparable transaction count.

 

1



 

Net sales for Smart & Final banner stores were $795.2 million, a 4.0% increase as compared to $765.0 million for the same period of 2017. Comparable store sales growth for the Smart & Final banner was flat in the first quarter.

 

Net sales for Smart Foodservice Warehouse banner stores were $221.0 million, a 9.4% increase as compared to $202.0 million for the same period of 2017. Comparable store sales growth for the Smart Foodservice Warehouse banner was 5.8% in the first quarter.

 

Gross margin was $146.3 million, a 9.9% increase as compared to $133.1 million in the first quarter of 2017. Gross margin rate was 14.4% as compared to 13.8% for the same period of 2017.  Gross margin rate in the quarter was supported by our strategic sourcing, merchandising and pricing initiatives.

 

Operating and administrative expenses were $147.4 million, an 8.7% increase as compared to $135.7 million for the same period of 2017. This increase was related to expenses associated with the effect of higher minimum wages, the 15 new stores that opened following the first quarter of 2017 through the end of the first quarter of 2018 and related support costs.

 

Net loss was $7.1 million, or $0.10 per share, as compared to a net loss of $4.6 million, or $0.06 per share, for the same period of 2017.

 

Adjusted net loss was $2.8 million, or $0.04 per share, as compared to an adjusted net loss of $1.5 million, or $0.02 per share, for the same period of 2017.

 

Adjusted EBITDA was $28.6 million, an increase of 17.3% as compared to $24.4 million for the same period of 2017.

 

Growth and Development

During the fiscal first quarter of 2018, the Company did not open any new stores.  Similar to 2017, store openings in 2018 are scheduled for the latter half of the year.  As of March 25, 2018, the Company operated a total of 323 stores, including 194 Smart & Final Extra! stores, 66 legacy format Smart & Final stores and 63 Cash & Carry Smart Foodservice stores.

 

Leverage and Liquidity

As of March 25, 2018, the Company’s debt, net of debt issuance costs, was $687.8 million and cash and cash equivalents were $55.8 million.

 

For the twelve weeks ended March 25, 2018, the Company generated cash from operations of $18.2 million and invested $29.0 million in capital expenditures, primarily related to the improvement of existing assets.

 

2



 

Outlook

The Company is maintaining the previously issued guidance for the full year ending December 30, 2018:

 

Net sales growth

4.0% - 5.0%

Comparable store sales growth

1.0% - 2.0%

Unit growth (new stores)

3-5 Smart & Final Extra! stores
3-5 Smart Foodservice Warehouse stores

Relocations of existing stores to Extra! format

2-3 Smart & Final stores

Expansions or conversions of legacy stores to Extra! format

1-2 Smart & Final stores

Adjusted EBITDA

$180 - $190 million

Adjusted net income

$31 - $35 million

Adjusted diluted EPS

$0.42 - $0.47

Capital expenditures (net)

$80 - $90 million

Fully diluted weighted average shares

74 to 75 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 $3.8 million, non-cash rent related to stores of approximately $2.9 million, share-based compensation expense of approximately $15.5 million, and $3.9 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.

 

Fiscal First 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 first quarter 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: 13678813. The telephonic replay will be available until 11:59 p.m. Eastern Time, May 16, 2018.

 

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 March 25, 2018, the Company operated 323 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 146 years, the Company remains committed to giving back to local communities through employee volunteer opportunities and Company donations to local nonprofits.

 

3



 

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.

 

 

INVESTOR CONTACTS:

Laura Bainbridge / Andrew Greenebaum

Addo Investor Relations

O: 310.829.5400

investors@smartandfinal.com

 

MEDIA CONTACT:  press@smartandfinal.com

 

4



 

Smart & Final Stores, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations

(Unaudited)

(In Thousands, Except Share and Per Share Amounts)

 

 

 

Twelve Weeks Ended

 

 

 

March 25, 2018

 

March 26, 2017

 

 

 

 

 

 

 

Net sales

 

$

1,016,237

 

$

967,017

 

Cost of sales, buying and occupancy

 

869,975

 

833,906

 

Gross margin

 

146,262

 

133,111

 

 

 

 

 

 

 

Operating and administrative expenses

 

147,430

 

135,674

 

Loss from operations

 

(1,168)

 

(2,563)

 

 

 

 

 

 

 

Interest expense, net

 

9,251

 

8,174

 

Equity in earnings of joint venture

 

577

 

167

 

Loss before income taxes

 

(9,842)

 

(10,570)

 

 

 

 

 

 

 

Income tax benefit

 

2,748

 

5,978

 

Net loss

 

$

(7,094)

 

$

(4,592)

 

 

 

 

 

 

 

Net loss per share:

 

 

 

 

 

Basic

 

$

(0.10)

 

$

(0.06)

 

Diluted

 

$

(0.10)

 

$

(0.06)

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

Basic

 

72,231,171

 

72,287,891

 

Diluted

 

72,231,171

 

72,287,891

 

 

5



 

Smart & Final Stores, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets

(In Thousands, Except Share and Per Share Amounts)

 

 

 

March 25, 2018

 

December 31, 2017

 

 

 

(Unaudited)

 

 

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

55,790

 

$

71,671

 

Accounts receivable, less allowances of $175 and $177 at March 25, 2018 and December 31, 2017, respectively

 

29,567

 

33,019

 

Inventories

 

287,740

 

289,712

 

Prepaid expenses and other current assets

 

47,926

 

54,241

 

Total current assets

 

421,023

 

448,643

 

 

 

 

 

 

 

Property, plant, and equipment:

 

 

 

 

 

Land

 

10,044

 

10,076

 

Buildings and improvements

 

54,771

 

53,965

 

Leasehold improvements

 

350,602

 

346,181

 

Fixtures and equipment

 

428,539

 

421,912

 

Construction in progress

 

15,428

 

8,242

 

 

 

859,384

 

840,376

 

Less accumulated depreciation and amortization

 

359,988

 

338,149

 

 

 

499,396

 

502,227

 

 

 

 

 

 

 

Capitalized software, net of accumulated amortization of $17,991 and $17,325 at March 25, 2018 and December 31, 2017, respectively

 

25,559

 

21,984

 

Other intangible assets, net

 

360,927

 

362,536

 

Goodwill

 

385,918

 

385,918

 

Equity investment in joint venture

 

15,796

 

15,380

 

Other assets

 

73,456

 

73,249

 

Total assets

 

$

1,782,075

 

$

1,809,937

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

220,690

 

$

245,009

 

Accrued salaries and wages

 

31,076

 

36,216

 

Accrued expenses

 

107,801

 

100,639

 

Current portion of debt, less debt issuance costs

 

69,613

 

81,512

 

Total current liabilities

 

429,180

 

463,376

 

 

 

 

 

 

 

Long-term debt, less debt issuance costs

 

618,194

 

617,867

 

Deferred income taxes

 

37,793

 

38,095

 

Postretirement and postemployment benefits

 

127,574

 

127,649

 

Other long-term liabilities

 

170,235

 

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 - 74,212,215 and 74,120,113 at March 25, 2018 and December 31, 2017, respectively

 

74

 

74

 

Additional paid-in capital

 

509,654

 

506,098

 

Retained deficit

 

(85,254

)

(78,160

)

Accumulated other comprehensive loss

 

(25,375

)

(24,966

)

Total stockholders’ equity

 

399,099

 

403,046

 

Total liabilities and stockholders’ equity

 

$

1,782,075

 

$

1,809,937

 

 

6



 

Smart & Final Stores, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In Thousands)

 

 

 

Twelve Weeks Ended

 

 

 

March 25, 2018

 

March 26, 2017

 

 

 

 

 

 

 

Operating activities

 

 

 

 

 

Net loss

 

$

(7,094)

 

$

(4,592)

 

Adjustments to reconcile net loss to net cash provided by

 

 

 

 

 

operating activities:

 

 

 

 

 

Depreciation

 

13,880

 

12,783

 

Amortization

 

9,412

 

8,900

 

Amortization of debt discount and debt issuance costs

 

459

 

445

 

Share-based compensation

 

3,285

 

1,814

 

Deferred income taxes

 

(257)

 

284

 

Equity in earnings of joint venture

 

(577)

 

(167)

 

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

 

(32)

 

21

 

Asset impairment

 

1,425

 

325

 

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable, net

 

3,452

 

2,663

 

Inventories

 

1,972

 

12,020

 

Prepaid expenses and other assets

 

7,520

 

(11,524)

 

Accounts payable

 

(24,319)

 

(8,453)

 

Accrued salaries and wages

 

(5,140)

 

(487)

 

Other accrued liabilities

 

14,209

 

7,279

 

Net cash provided by operating activities

 

18,195

 

21,311

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

Purchases of property, plant, and equipment

 

(25,478)

 

(24,570)

 

Proceeds from disposal of property, plant, and equipment

 

33

 

1,785

 

Investment in capitalized software

 

(3,523)

 

(4,524)

 

Other

 

(19)

 

(55)

 

Net cash used in investing activities

 

(28,987)

 

(27,364)

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

Proceeds from exercise of stock options

 

336

 

2,335

 

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

 

(65)

 

(106)

 

Fees paid in conjunction with debt financing

 

(31)

 

(31)

 

Borrowings on bank line of credit

 

27,000

 

28,000

 

Payments on bank line of credit

 

(39,000)

 

(22,000)

 

Cash received from landlord related to financing lease obligations

 

6,671

 

-

 

Stock repurchases

 

-

 

(5,995)

 

Net cash (used in) provided by financing activities

 

(5,089)

 

2,203

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

(15,881)

 

(3,850)

 

Cash and cash equivalents at beginning of period

 

71,671

 

54,235

 

Cash and cash equivalents at end of period

 

$

55,790

 

$

50,385

 

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

Interest

 

$

1,116

 

$

2,340

 

 

 

 

 

 

 

Non-cash investing and financing activities

 

 

 

 

 

Software development costs incurred but not paid

 

$

2,115

 

$

344

 

Construction in progress costs incurred but not paid

 

14,888

 

11,537

 

Property acquired through financing lease obligations

 

232

 

-

 

 

7



 

Smart & Final Stores, Inc. and Subsidiaries

Segment Reporting

(In Thousands)

 

 

 

Smart & Final

 

Smart
Foodservice
Warehouse

 

Corporate /
Other

 

Consolidated

 

Twelve Weeks Ended March 25, 2018

 

 

 

 

 

 

 

 

 

Net sales

 

$

795,192

 

$

221,045

 

$

-

 

$

1,016,237

 

Cost of sales, distribution and store occupancy

 

678,615

 

189,471

 

1,889

 

869,975

 

Operating and administrative expenses

 

109,569

 

17,796

 

20,065

 

147,430

 

Income (loss) from operations

 

$

7,008

 

$

13,778

 

$

(21,954)

 

$

(1,168)

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

23,859

 

$

1,270

 

$

3,872

 

$

29,001

 

 

Twelve Weeks Ended March 26, 2017

 

 

 

 

 

 

 

 

 

Net sales

 

$

764,969

 

$

202,048

 

$

-

 

$

967,017

 

Cost of sales, distribution and store occupancy

 

656,792

 

175,133

 

1,981

 

833,906

 

Operating and administrative expenses

 

103,906

 

16,166

 

15,602

 

135,674

 

Income (loss) from operations

 

$

4,271

 

$

10,749

 

$

(17,583)

 

$

(2,563)

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

20,974

 

$

2,873

 

$

5,247

 

$

29,094

 

 

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 (loss) 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 (loss) as net income (loss) adjusted for the items set forth in the table below. The Company defines adjusted net income (loss) per share as adjusted net income (loss) divided by the weighted average basic shares outstanding. The Company defines adjusted net income (loss) per diluted share as adjusted net income (loss) 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.

 

8



 

The following tables present reconciliations of net loss to EBITDA, adjusted EBITDA and adjusted net loss, and net loss per share to adjusted net income per share and adjusted net loss per diluted share, for the twelve-week period ended March 25, 2018.

 

Smart & Final  Stores, Inc. and Subsidiaries

Reconciliation of Net Loss to Non-GAAP Adjusted Net Loss

(Unaudited)

(In Thousands, Except Share and Per Share Amounts)

 

 

 

Twelve Weeks
Ended March 25,
2018

 

Twelve Weeks
Ended March 26,
2017

 

Net loss

 

$

(7,094)

 

$

(4,592)

 

Income tax benefit

 

(2,748)

 

(5,978)

 

Loss before income taxes

 

(9,842)

 

(10,570)

 

 

 

 

 

 

 

Adjustments to net loss

 

 

 

 

 

Net loss from closed stores and exit costs (a)

 

91

 

390

 

Loss from asset dispositions (b)

 

1,418

 

328

 

Share-based compensation expense (c)

 

3,285

 

1,815

 

Non-cash rent (d)

 

1,203

 

1,555

 

Pre-opening costs (e)

 

(69)

 

977

 

Other items (f)

 

-

 

56

 

Adjusted income tax benefit

 

1,092

 

3,935

 

Adjusted net loss

 

$

(2,822)

 

$

(1,514)

 

 

 

 

 

 

 

Adjusted Net Loss Per Share

 

 

 

 

 

 

 

 

 

 

 

Net loss per share - basic

 

$

(0.10)

 

$

(0.06)

 

Per share impact of net loss adjustments

 

0.06

 

0.04

 

Adjusted net loss per share - basic

 

$

(0.04)

 

$

(0.02)

 

 

 

 

 

 

 

 

 

Net loss per share - diluted

 

$

(0.10)

 

$

(0.06)

 

Per share impact of net loss adjustments

 

0.06

 

0.04

 

Adjusted net loss per share - diluted

 

$

(0.04)

 

$

(0.02)

 

 

 

 

 

 

 

Weighted average shares - basic

 

72,231,171

 

72,287,891

 

Weighted average shares - diluted

 

72,231,171

 

72,287,891

 

 

9



 

Smart & Final  Stores, Inc. and Subsidiaries

Reconciliation of EBITDA to Adjusted EBITDA

(Unaudited)

(In Thousands)

 

 

 

Twelve Weeks
Ended March 25,
2018

 

Twelve Weeks
Ended March 26,
2017

 

Net loss

 

$

(7,094)

 

$

(4,592)

 

Depreciation and amortization

 

23,292

 

21,683

 

Interest expense, net

 

9,251

 

8,174

 

Income tax benefit

 

(2,748)

 

(5,978)

 

EBITDA

 

22,701

 

19,287

 

 

 

 

 

 

 

Adjustments to EBITDA

 

 

 

 

 

Net loss from closed stores and exit costs (a)

 

91

 

390

 

Loss from asset dispositions (b)

 

1,418

 

328

 

Share-based compensation expense (c)

 

3,285

 

1,815

 

Non-cash rent (d)

 

1,203

 

1,555

 

Pre-opening costs (e)

 

(69)

 

977

 

Other items (f)

 

-

 

56

 

Adjusted EBITDA

 

$

28,629

 

$

24,408

 

 

 

(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 severance costs in the twelve week fiscal quarter ended March 26, 2017.

 

10


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2 EX-99.1 a18-8641_3ex99d1.htm EX-99.1 372203
3 GRAPHIC g86413mmi001.jpg GRAPHIC 1927
  Complete submission text file 0001104659-18-029836.txt   400828