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Wednesday, 04 March 2015 16:31

SpartanNash performance buoyed by 2013 merger

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The impact of a transformational 2013 merger drove full-year results for Byron Center-based  grocery retailer and food distributor SpartanNash Co.

The company generated sales of $7.9 billion for fiscal 2014, its first full year of operations after merging Spartan Stores Inc. and NashFinch Co.

SpartanNash (Nasdaq: SPTN) reported adjusted earnings of $69.9 million, or $1.85 per diluted share, for the year. The results exclude after-tax charges of $10.8 million related to merger integration, asset impairment, restructuring and other non-cash charges.  

The diversified food distributor to military commissaries and independent and corporate-owned retail stores reported full-year net sales of nearly $2.275 billion for its military segment, $3.356 billion for food distribution, $2.284 billion in its retail segment.  

The company continued to outperform expectations in achieving synergies related to the merger, beating the $20 million projection it set for the year, executives said in a conference call with analysts today. Annual sales fell in line with the company’s prior projections of $7.9 billion to $8.04 billion.

“I feel pretty optimistic about where things are today and where we can go,” said President and CEO Dennis Eidson, noting that the company still had “a lot left to do” on its three-year integration strategy.

SpartanNash expects year-over-year gains in sales for its food distribution and military segments in 2015, while store sales could be “slightly negative to slightly positive.” The company expects adjusted earnings per share in the range of $1.89 to $1.98.

The company said it plans to close as many as 10 stores in 2015, but refused to name the specific stores it targeted for closure, other than to note that the closures “will be primarily domiciled in the western store base,” Eidson said.

SpartanNash expects cap-ex of $75 million to $80 million for the year, about $45 million of which will go for store-related projects and remodeling, said CFO and Executive Vice President David Staples.

As the company reported its fiscal 2014 results, it also announced that Staples was promoted to chief operating officer, effective March 1. He will continue to serve as CFO until a replacement is identified.

Staples received the 2014 MiBiz CFO of the Year Award.

SpartanNash also promoted Derek Jones, the executive vice president of food distribution. He will now serve as president of wholesale and distribution operations.

Read 1585 times Last modified on Monday, 08 June 2015 10:52

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