SpartanNash Releases its First Quarter 2015 Financial Report
GRAND RAPIDS, MI - SpartanNash released its Q1 2015 financial report this week, growing net sales for food distribution by 1.6% to $986.4 million following its acquisition of North Dakota-based Dan’s Supermarket chain.
"We are encouraged by our performance in the first quarter," said Dennis Eidson, SpartanNash's President and Chief Executive Officer. "As expected, our sales comparisons were negatively affected by the significant winter weather benefit in the first quarter last year and inclusion of the stores acquired in the merger with Nash Finch. Despite these headwinds, we achieved slightly positive comparable store sales in our Michigan supermarkets and our adjusted earnings from continuing operations exceeded our expectations as we benefited from lower expense levels and merger synergies.”
While net sales for the retail segment decreased 7.6 percent to $626.9 million in the first quarter of fiscal 2015 from $678.6 million for the first quarter last year, the company reports that this was mainly due to the closure of retail stores and fuel centers, significantly lower retail fuel prices, and a decrease in comparable store sales, excluding fuel. As anticipated, comparable store sales reflect the inclusion of the stores obtained in the merger with Nash Finch, the significant winter weather benefit in the first quarter last year, and limited center store inflation.
“Omaha has been a particularly difficult marketplace,” Eidson mentioned in a call with investors. “There’s been a competitive intrusion led by Walmart and Hy-Vee, and we’re fighting back.”
Other highlights from SpartanNash’s report include:
- Adjusted EPS from Continuing Operations Improved 10 Percent to $0.44 per Diluted Share
- Reported First Quarter EPS from Continuing Operations of $0.28 per Diluted Share
- Operating Cash Flow Increases 50% to $48.9 Million
- Long-term Debt Reduced by $35 million in the Quarter
- Consolidated net sales decreased 0.9 percent to $2.31 billion
- Adjusted operating earnings were $33.9 million compared to $31.9 million in Q1 2014
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