Jul 11, 2020

SpartanNash Q2 2020 Earnings Report

SpartanNash's financial performance exceeded expectations during the second quarter of fiscal year 2020.

Key Takeaways

SpartanNash reported a strong second quarter with net sales increasing by 9.4% to $2.18 billion and EPS of $0.80. The company's retail comparable store sales increased by 17.1%.

Net sales increased by 9.4% to $2.18 billion.

Retail comparable store sales increased 17.1%.

EPS was $0.80 per share, and adjusted EPS increased 115% to $0.73 per share.

Adjusted EBITDA increased 33.5% to $59.2 million.

Total Revenue
$2.18B
Previous year: $2B
+9.4%
EPS
$0.73
Previous year: $0.34
+114.7%
Retail Comp Sales
17.1%
Gross Profit
$338M
Previous year: $289M
+17.1%
Cash and Equivalents
$34.6M
Previous year: $19.9M
+73.7%
Free Cash Flow
$168M
Previous year: $88.1M
+90.3%
Total Assets
$2.3B
Previous year: $2.29B
+0.2%

SpartanNash

SpartanNash

SpartanNash Revenue by Segment

Forward Guidance

The Company anticipates benefiting from higher consumer food-at-home consumption related to the effects of COVID-19 for the remainder of the year. The Company is updating its annual outlook to reflect actual year-to-date financial results, as well as expectations for the remainder of the fiscal year related to earnings trends.

Positive Outlook

  • Adjusted earnings per share from continuing operations of approximately $2.40 to $2.60 compared to its prior projection of $1.85 to $2.00.
  • Reported earnings per share from continuing operations are expected to range from $2.13 to $2.41 compared to its prior projection of $1.48 to $1.81.
  • Fiscal 2020 adjusted EBITDA of $232 million to $242 million compared to its prior guidance of $205 million to $215 million.
  • Capital expenditures and IT capital in the range of $80.0 million to $90.0 million for fiscal year 2020.
  • Interest expense is now expected to range from $17.5 million to $18.5 million in fiscal 2020.

Challenges Ahead

  • The duration and magnitude of the impact of COVID-19 remain uncertain.
  • The Company is unable to fully estimate the impact COVID-19 will have on sales for the remainder of 2020.
  • Guidance reflects an adjusted effective tax rate of 23.5% to 24.5%.
  • Guidance reflects a reported effective tax rate of 14.0% to 15.0%.
  • Uncertainty related to the COVID-19 pandemic.

Revenue & Expenses

Visualization of income flow from segment revenue to net income