NASDAQ$SPTN

SpartanNash Company · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

SpartanNash grew net sales and reported positive retail comparable store sales, generating profitability in line with guidance.

SpartanNash reported a 5.3% increase in net sales to $2.0 billion for the fourth quarter of 2019, driven by the acquisition of Martin's and higher sales in the Food Distribution segment. Retail comparable store sales were positive for the second consecutive quarter at 0.5%. The company's EPS was $0.15 per share, with an adjusted EPS of $0.23.

  • Net sales increased by 5.3% to $2.00 billion, marking the fifteenth consecutive quarter of growth.
  • Retail comparable store sales were positive for the second consecutive quarter, with a growth of 0.5%.
  • EPS was reported at $0.15 per share, with an adjusted EPS of $0.23, including $0.11 in CEO transition and supplemental incentive program costs.
  • Significant improvements in working capital were achieved, including over $45 million in inventory reductions, excluding the impact of the Martin’s acquisition.

Headline financials

Total Revenue

$2B

Previous: $1.9B+5.3%
EPS (adj)

$0.23

Previous: $0.32-28.1%
Retail Comp Store Sales

0.5%

No prior period
Capital Expenditures

$27.9M

Previous: $18.9M+47.7%
Free Cash Flow

$105M

Previous: $153M-31.0%
Net Income

$5.42M

Previous: -$14M+138.7%
Operating Income

$11.6M

Previous: -$11.9M+197.7%
Gross Profit

$287M

Previous: $245M+16.8%
Cash & Equivalents

$24.2M

Previous: $18.6M+30.1%
Total Assets

$2.28B

Previous: $1.97B+15.4%

Revenue & EPS history

SpartanNash · Revenue · Quarterly

$2B

Q4 2019+5.3%vs Q4 2018
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

SpartanNash · $548M total across 1 segment · Q4 2019

  • Retail
    $548M+27.7%

Forward guidance

For the 53-week fiscal year ending January 2, 2021, the Company anticipates low-single digit percentage sales growth and adjusted earnings per share from continuing operations of approximately $1.12 to $1.20.

Tailwinds

  • Company anticipates low-single digit percentage sales growth.
  • Food Distribution segment will continue to achieve mid-single digit sales growth driven by existing customers and new business.
  • Company expects positive Retail segment comparable sales for fiscal 2020 to range from 0.1% to 0.7%.
  • Company will also benefit from an additional week of sales compared to the 52-week year ended December 28, 2019, which will be reflected in the Company’s fourth quarter fiscal 2020 results.
  • Company is also initiating fiscal 2020 adjusted EBITDA guidance of $180 million to $190 million, consistent with the Company’s projected increases in operating earnings.

Headwinds

  • On a 52-week basis, the Company expects the Food Distribution segment will be partially offset by attrition in the independent retail base and the closure of the Fresh Kitchen operations.
  • In the Military Distribution segment, the Company expects a continued decline in the DeCA comparable sales trend.
  • The favorable contributions from initiatives associated with Project One Team are expected to be partially offset by the increase in costs to achieve normalized incentive compensation levels.
  • With the low volume post-Easter week moving into fiscal 2020’s first quarter, the Company expects Retail comparable sales to be approximately flat.
  • Adjusted diluted earnings per share from continuing operations for the first quarter of fiscal 2020 are expected to be slightly above the first quarter of fiscal 2019.

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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