NASDAQ$SPTN

SpartanNash Company · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported third quarter results with retail comparable store sales increased and adjusted EPS up.

SpartanNash reported a 3.1% increase in net sales to $2.06 billion. The company's EPS was $0.56, and adjusted EPS increased 133% to $0.70. Adjusted EBITDA increased 37.2% to $57.0 million.

  • Net sales growth of 3.1% to $2.06 billion.
  • Retail comparable store sales increased by 10.6% for the fifth consecutive quarter.
  • EPS of $0.56 per share, compared to a loss of $(0.01) per share in the prior year quarter; adjusted EPS of $0.70 per share, an increase of 133% over $0.30 per share in the prior year quarter.
  • Adjusted EBITDA increased 37.2%, to $57.0 million from $41.6 million in the prior year quarter.

Headline financials

Total Revenue

$2.06B

Previous: $2B+3.0%
EPS (adj)

$0.70

Previous: $0.30+133.3%
Retail Comp Store Sales

10.6%

No prior period
Capital Expenditures

$15.3M

Previous: $15.1M+0.9%
Free Cash Flow

$178M

Previous: $21.1M+744.8%
Net Income

$20M

Previous: -$337K+6020.5%
Operating Income

$29M

Previous: $15.8M+83.8%
Gross Profit

$325M

Previous: $290M+11.9%
Cash & Equivalents

$26.9M

Previous: $23.4M+14.8%
Total Assets

$2.32B

Previous: $2.33B-0.6%

Revenue & EPS history

SpartanNash · Revenue · Quarterly

$2.06B

Q3 2020+3%vs Q3 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

SpartanNash · $597M total across 1 segment · Q3 2020

  • Retail
    $597M+6.2%

Forward guidance

The Company is updating its annual outlook from what was previously provided on August 12, 2020 to reflect actual financial results, its expectations for the remainder of the fiscal year, and the forecasted impact of stock warrants, which were granted early in the fourth quarter.

Tailwinds

  • The Company now anticipates adjusted earnings per share from continuing operations of approximately $2.42 to $2.50 compared to its prior projection of $2.40 to $2.60.
  • The Company’s updated guidance reflects the continued benefits of sales trends associated with COVID-19 and the related increase in consumer demand.
  • The Company now expects fiscal 2020 adjusted EBITDA to range from $237.0 million to $242.0 million compared to its prior guidance of $232.0 million to $242.0 million.
  • The Company's updated guidance now reflects capital expenditures and IT capital in the range of $80.0 million to $85.0 million for the fiscal year.
  • Depreciation and amortization have been updated to a range of $88.0 million to $90.0 million.

Headwinds

  • The Company’s updated guidance reflects estimated non-cash stock warrant expense of $6.0 million to $7.0 million, or $0.13 to $0.15 per diluted share.
  • Reported earnings per share from continuing operations are expected to range from $2.09 to $2.17 compared to its prior projection of $2.13 to $2.41.
  • Interest expense is now expected to range from $18.0 million to $18.5 million.
  • The Company’s updated guidance now reflects an adjusted effective tax rate of 23.5% to 24.0%.
  • The Company’s updated guidance now reflects a reported effective tax rate of 13.0% to 13.5%.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports

Historical avg

-0.8%

Avg return

Earnings day

-2.1%

Avg return

5 days after

-0.8%

Avg return

30 days after

50%

30 / 60 earnings

Positive

+21.8%

Q2 2019

Best reaction

-23.9%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2025
Q2 2025-0.1%+0.2%-0.3%
Q1 2025+10.2%-3.3%+35.6%
Q4 2025+11.4%+7.9%+6.6%
Q3 2024-16.2%-17.5%-17.5%
Q2 2024+8.3%+10.2%+12.7%
Q1 2024-1.7%-3.1%-6.2%
Q4 2023-7.2%-0.9%-10.4%
Q3 2023-7.4%-8.0%-1.8%
Q2 2023+2.7%-1.7%-7.1%
Q1 2023-2.0%+0.2%-0.1%
Q4 2022-13.6%-14.6%-22.5%
Q3 2022-7.8%-12.7%-13.6%
Q2 2022+2.4%-1.5%-7.6%
Q1 2022+5.2%-1.5%-9.8%
Q4 2021+5.1%+4.9%+27.5%
Q3 2021+2.9%+3.1%+0.2%
Q2 2021+0.2%+2.7%+0.8%
Q1 2021-1.7%
Q4 2020+0.7%
Q3 2020+5.9%
Q2 2020-6.2%
Q1 2020+0.4%
Q4 2019+10.8%
Q3 2019-9.7%
Q2 2019+21.8%
Q1 2019-6.9%
Q4 2018-21.7%
Q3 2018+14.5%
Q2 2018-18.8%
Q1 2018+19.1%
Q4 2017-23.9%
Q3 2017-12.7%
Q2 2017-4.5%
Q1 2017-14.6%
Q4 2016-4.1%
Q3 2016+20.2%
Q2 2016+5.5%
Q1 2016-1.2%
Q4 2015+16.1%
Q3 2015-14.9%
Q2 2015-1.9%
Q1 2015+0.7%
Q4 2014+1.9%
Q3 2014+2.5%
Q2 2014-1.1%
Q1 2014+13.2%
Q4 2010+0.7%
Q4 2013+0.3%
Q3 2013+3.3%
Q2 2013+2.3%
Q1 2013-7.0%
Q4 2012+0.2%
Q3 2011-3.5%
Q3 2012-3.8%
Q2 2012+2.0%
Q2 2011+2.0%
Q1 2011-8.4%
Q4 2011-8.4%
Q1 2012-8.4%
Q4 2009-2.1%

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