Albertsons® Companies, Inc. Reports Third Quarter Fiscal 2025 Results
Key Terms
adjusted ebitda financial
senior unsecured notes financial
effective tax rate financial
medicare drug price negotiation program regulatory
Third Quarter of Fiscal 2025 Highlights
-
Identical sales increased
2.4% -
Digital sales increased
21% -
Loyalty members increased
12% to 49.8 million -
Net income of
$293 million $0.55 -
Adjusted net income of
$390 million $0.72 -
Adjusted EBITDA of
$1,039 million
"In the third quarter, we delivered solid results and continued to advance our strategic priorities," said Susan Morris, Chief Executive Officer. "Our investments in technology and AI are fundamentally reshaping how we operate and serve our customers; driving smarter decisions, greater efficiency, and more personalized experiences. Growth in our digital and pharmacy channels, combined with disciplined execution and targeted investments, is strengthening our value proposition and positioning us for success."
Morris added, "As we look ahead, I am confident that our modernized technology foundation, relentless focus on productivity, and commitment to innovation will enable us to deliver sustainable long-term value for our customers, associates, and shareholders."
Third Quarter of Fiscal 2025 Results
Net sales and other revenue increased
Gross margin rate decreased to
Selling and administrative expenses decreased to
Net gain on property dispositions and impairment losses was
Interest expense, net was
Other income, net was
Income tax expense was
Net income was
Adjusted net income was
Adjusted EBITDA was
Capital Allocation and Common Stock Repurchase Program
During the first 40 weeks of fiscal 2025, capital expenditures were
On October 14, 2025, the Company entered into an accelerated share repurchase agreement (the "ASR Agreement") with JPMorgan Chase Bank, National Association ("JPMorgan") to repurchase
On November 10, 2025, the Company completed the issuance of
Fiscal 2025 Outlook
The Company is providing an updated fiscal 2025 outlook and expects its financial results to be as follows:
-
Identical sales growth in the range of
2.2% to2.5% (previously2.2% to2.75% ) (1) -
Adjusted EBITDA in the range of
$3.82 5 billion$3.87 5 billion$65 million $3.8 billion $3.9 billion -
Adjusted net income per Class A common share in the range of
$2.08 $2.16 $2.06 $2.19 -
Effective income tax rate in the range of
23% to24% (previously23.5% to24.5% ) -
Capital expenditures in the range of
$1.8 billion $1.9 billion
(1) |
Reflects a 16 to 18 basis point impact for fiscal 2025 or a 65 to 70 basis point impact for the fourth quarter of fiscal 2025 related to the Inflation Reduction Act's Medicare Drug Price Negotiation Program which took effect on January 1, 2026, resulting in lower pharmacy sales. |
The Company is unable to provide a full reconciliation of the GAAP and Non-GAAP Measures (as defined below) used in the updated fiscal 2025 outlook without unreasonable effort because it is not possible to predict certain of the adjustment items with a reasonable degree of certainty. This information is dependent upon future events and may be outside of the Company's control and could have a significant impact on its GAAP financial results for fiscal 2025. The expected effective tax rate does not reflect potential future rate adjustments for the resolution of tax audits or potential changes in tax laws, which cannot be predicted with reasonable certainty.
Conference Call
The Company will hold a conference call today at 8:30 a.m. Eastern Time, which will be hosted by Susan Morris, CEO, and Sharon McCollam, President & CFO. The call will be webcast and can be accessed at https://albertsonscompanies.com/investors/events-and-presentations. A replay of the webcast will be available for at least two weeks following the completion of the call.
About Albertsons Companies
Albertsons Companies is a leading food and drug retailer in
Albertsons, Safeway, Vons, Jewel-Osco, Tom Thumb, Randalls, United Supermarkets, Pavilions, Haggen and Balducci's Food Lovers Market are registered trademarks of Albertsons Companies Inc. or its subsidiaries. ACME, Carrs, Kings Food Markets, Shaw's, and Star Market are trademarks of Albertsons Companies Inc. or its subsidiaries. Albertsons associated logos, product names and services are trademarks of Albertsons Companies, Inc. All other trademarks are the property of their respective owners.
Forward-Looking Statements and Factors That Impact Our Operating Results and Trends
This press release includes "forward-looking statements" within the meaning of the federal securities laws. The "forward-looking statements" include our current expectations, assumptions, estimates and projections about our business and our industry. They include statements relating to our future operating or financial performance which the Company believes to be reasonable at this time. You can identify forward-looking statements by the use of words such as "outlook," "may," "should," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future" and "intends" and similar expressions which are intended to identify forward-looking statements.
These statements are not guarantees of future performance and are subject to numerous risks and uncertainties which are beyond our control and difficult to predict and could cause actual results to differ materially from the results expressed or implied by the statements. Risks and uncertainties that could cause actual results to differ materially from such statements and may adversely impact our financial condition and results of operations include:
- changes in macroeconomic conditions such as rates of food price inflation or deflation, fuel and commodity prices and macroeconomic uncertainty, including in international trade and current and potential future tariffs;
- changes in consumer behavior and spending patterns resulting from macroeconomic conditions, including shifts in state and federal assistance programs;
- changes in wage rates and our ability to negotiate acceptable contracts with labor unions, including the outcome of pending union negotiations;
- changes in price of goods sold in our stores and cost of goods used in our food products, as well as limitations in our ability to provide certain services, due to changes in various state and federal government legislation, regulation and executive orders;
- uncertainty regarding the geopolitical environment;
- our ability to succeed in a competitive landscape;
- our inability to execute on our standalone business and value-creating strategies following the termination of the merger agreement with Kroger due to prolonged uncertainties and restrictions on our business during the pendency of the merger;
-
litigation in connection with the previously pending merger and the termination of the merger agreement, resulting in ongoing costs that we may be required to pay in connection with the lawsuit against Kroger, or our inability to collect the
$600 million - our ability to recruit and retain qualified or specialized associates who are critical to the success of our Customers for Life strategy;
- failure to achieve productivity initiatives, including those related to artificial intelligence, unexpected changes in our objectives and plans, inability to implement our strategies, plans, programs and initiatives, or enter into strategic transactions, investments or partnerships in the future on terms acceptable to us, or at all;
- challenges with our supply chain;
- operational and financial effects resulting from cyber incidents at the Company or at a third party, including outages in the cloud environment and the effectiveness of business continuity plans during a ransomware or other cyber incident; and
- changes in tax rates, tax laws, and regulations that directly impact our business or our customers.
All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements and risk factors. Forward-looking statements contained in this press release reflect our view only as of the date of this press release. We undertake no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
In evaluating our financial results and forward-looking statements, you should carefully consider the risks and uncertainties more fully described in the "Risk Factors" section or other sections in our reports filed with the SEC including the most recent annual report on Form 10-K and any subsequent periodic reports on Form 10-Q and current reports on Form 8-K.
Non-GAAP Measures and Identical Sales
Non-GAAP Measures. EBITDA, Adjusted EBITDA, Adjusted net income, Adjusted net income per Class A common share and Net debt ratio (collectively, the "Non-GAAP Measures") are performance measures that provide supplemental information the Company believes is useful to analysts and investors to evaluate its ongoing results of operations, when considered alongside other GAAP measures such as net income, operating income, gross margin, and net income per Class A common share. These Non-GAAP Measures exclude the financial impact of items management does not consider in assessing the Company's ongoing core operating performance, and thereby provide useful measures to analysts and investors of its operating performance on a period-to-period basis. Other companies may have different definitions of Non-GAAP Measures and provide for different adjustments, and comparability to the Company's results of operations may be impacted by such differences. The Company also uses Adjusted EBITDA and Net debt ratio for board of director and bank compliance reporting. The Company's presentation of Non-GAAP Measures should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items.
Identical Sales. As used in this earnings release, the term "identical sales" includes stores operating during the same period in both the current fiscal year and the prior fiscal year, comparing sales on a daily basis. Direct to consumer digital sales are included in identical sales, and fuel sales are excluded from identical sales.
Albertsons Companies, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (dollars in millions, except per share data) (unaudited) |
|||||||||||||||
|
12 weeks ended |
|
40 weeks ended |
||||||||||||
|
November 29,
|
|
November 30,
|
|
November 29,
|
|
November 30,
|
||||||||
Net sales and other revenue |
$ |
19,123.7 |
|
|
$ |
18,774.5 |
|
|
$ |
62,920.3 |
|
|
$ |
61,591.4 |
|
Cost of sales |
|
13,874.9 |
|
|
|
13,528.1 |
|
|
|
45,826.6 |
|
|
|
44,484.8 |
|
Gross margin |
|
5,248.8 |
|
|
|
5,246.4 |
|
|
|
17,093.7 |
|
|
|
17,106.6 |
|
|
|
|
|
|
|
|
|
||||||||
Selling and administrative expenses |
|
4,760.3 |
|
|
|
4,717.7 |
|
|
|
15,888.1 |
|
|
|
15,777.1 |
|
(Gain) loss on property dispositions and impairment losses, net |
|
(1.2 |
) |
|
|
10.2 |
|
|
|
(28.7 |
) |
|
|
59.4 |
|
Operating income |
|
489.7 |
|
|
|
518.5 |
|
|
|
1,234.3 |
|
|
|
1,270.1 |
|
|
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
116.0 |
|
|
|
109.0 |
|
|
|
363.1 |
|
|
|
358.3 |
|
Other (income) expense, net |
|
(4.0 |
) |
|
|
(5.6 |
) |
|
|
(37.6 |
) |
|
|
0.3 |
|
Income before income taxes |
|
377.7 |
|
|
|
415.1 |
|
|
|
908.8 |
|
|
|
911.5 |
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense |
|
84.4 |
|
|
|
14.5 |
|
|
|
210.6 |
|
|
|
124.7 |
|
Net income |
$ |
293.3 |
|
|
$ |
400.6 |
|
|
$ |
698.2 |
|
|
$ |
786.8 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per Class A common share |
|
|
|
|
|
|
|
||||||||
Basic net income per Class A common share |
$ |
0.55 |
|
|
$ |
0.69 |
|
|
$ |
1.25 |
|
|
$ |
1.36 |
|
Diluted net income per Class A common share |
|
0.55 |
|
|
|
0.69 |
|
|
|
1.25 |
|
|
|
1.35 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average Class A common shares outstanding (in millions) |
|
|
|
|
|
|
|
||||||||
Basic |
|
531.9 |
|
|
|
580.2 |
|
|
|
556.7 |
|
|
|
579.7 |
|
Diluted |
|
534.7 |
|
|
|
584.1 |
|
|
|
559.4 |
|
|
|
582.9 |
|
|
|
|
|
|
|
|
|
||||||||
% of net sales and other revenue |
|
|
|
|
|
|
|
||||||||
Gross margin |
|
27.4 |
% |
|
|
27.9 |
% |
|
|
27.2 |
% |
|
|
27.8 |
% |
Selling and administrative expenses |
|
24.9 |
% |
|
|
25.1 |
% |
|
|
25.3 |
% |
|
|
25.6 |
% |
|
|
|
|
|
|
|
|
||||||||
Store data |
|
|
|
|
|
|
|
||||||||
Number of stores at end of quarter |
|
2,243 |
|
|
|
2,273 |
|
|
|
|
|
||||
Albertsons Companies, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in millions) (unaudited) |
|||||||
|
November 29,
|
|
February 22,
|
||||
ASSETS |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
195.1 |
|
|
$ |
293.6 |
|
Receivables, net |
|
1,018.9 |
|
|
|
834.8 |
|
Inventories, net |
|
5,496.7 |
|
|
|
4,989.0 |
|
Other current assets |
|
386.1 |
|
|
|
441.6 |
|
Total current assets |
|
7,096.8 |
|
|
|
6,559.0 |
|
|
|
|
|
||||
Property and equipment, net |
|
9,778.9 |
|
|
|
9,811.0 |
|
Operating lease right-of-use assets |
|
6,103.8 |
|
|
|
6,153.4 |
|
Intangible assets, net |
|
2,212.3 |
|
|
|
2,318.0 |
|
Goodwill |
|
1,201.0 |
|
|
|
1,201.0 |
|
Other assets |
|
700.5 |
|
|
|
713.3 |
|
TOTAL ASSETS |
$ |
27,093.3 |
|
|
$ |
26,755.7 |
|
|
|
|
|
||||
LIABILITIES |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
4,037.7 |
|
|
$ |
4,092.7 |
|
Accrued salaries and wages |
|
1,294.0 |
|
|
|
1,345.2 |
|
Current maturities of long-term debt and finance lease obligations |
|
595.7 |
|
|
|
57.6 |
|
Current operating lease obligations |
|
739.9 |
|
|
|
705.5 |
|
Other current liabilities |
|
1,148.0 |
|
|
|
1,050.0 |
|
Total current liabilities |
|
7,815.3 |
|
|
|
7,251.0 |
|
|
|
|
|
||||
Long-term debt and finance lease obligations |
|
8,417.0 |
|
|
|
7,762.5 |
|
Long-term operating lease obligations |
|
5,679.1 |
|
|
|
5,657.2 |
|
Deferred income taxes |
|
820.6 |
|
|
|
824.1 |
|
Other long-term liabilities |
|
1,859.5 |
|
|
|
1,875.0 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
STOCKHOLDERS' EQUITY |
|
|
|
||||
Class A common stock |
|
6.0 |
|
|
|
6.0 |
|
Additional paid-in capital |
|
2,079.1 |
|
|
|
2,184.0 |
|
Treasury stock, at cost |
|
(1,598.3 |
) |
|
|
(386.7 |
) |
Accumulated other comprehensive income |
|
78.9 |
|
|
|
94.7 |
|
Retained earnings |
|
1,936.1 |
|
|
|
1,487.9 |
|
Total stockholders' equity |
|
2,501.8 |
|
|
|
3,385.9 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
27,093.3 |
|
|
$ |
26,755.7 |
|
Albertsons Companies, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (in millions) (unaudited) |
|||||||
|
40 weeks ended |
||||||
|
November 29,
|
|
November 30,
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
698.2 |
|
|
$ |
786.8 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
(Gain) loss on property dispositions and impairment losses, net |
|
(28.7 |
) |
|
|
59.4 |
|
Depreciation and amortization |
|
1,439.6 |
|
|
|
1,396.9 |
|
Operating lease right-of-use assets amortization |
|
539.9 |
|
|
|
522.0 |
|
LIFO expense |
|
41.5 |
|
|
|
22.9 |
|
Deferred income tax |
|
(0.4 |
) |
|
|
(182.9 |
) |
Contributions to pension and post-retirement benefit plans, net of expense (income) |
|
(76.6 |
) |
|
|
(70.7 |
) |
Deferred financing costs |
|
15.3 |
|
|
|
12.4 |
|
Equity-based compensation expense |
|
73.6 |
|
|
|
87.9 |
|
Other operating activities |
|
15.5 |
|
|
|
12.8 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Receivables, net |
|
(182.7 |
) |
|
|
(205.1 |
) |
Inventories, net |
|
(549.2 |
) |
|
|
(214.9 |
) |
Accounts payable, accrued salaries and wages and other accrued liabilities |
|
80.6 |
|
|
|
(77.6 |
) |
Operating lease liabilities |
|
(443.0 |
) |
|
|
(435.1 |
) |
Self-insurance assets and liabilities |
|
7.4 |
|
|
|
35.4 |
|
Other operating assets and liabilities |
|
18.6 |
|
|
|
171.9 |
|
Net cash provided by operating activities |
|
1,649.6 |
|
|
|
1,922.1 |
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Payments for property, equipment and intangibles, including lease buyouts |
|
(1,412.8 |
) |
|
|
(1,446.7 |
) |
Proceeds from sale of assets |
|
85.2 |
|
|
|
24.1 |
|
Other investing activities |
|
42.2 |
|
|
|
6.1 |
|
Net cash used in investing activities |
|
(1,285.4 |
) |
|
|
(1,416.5 |
) |
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of long-term debt, including ABL facility |
|
2,585.0 |
|
|
|
50.0 |
|
Payments on long-term borrowings, including ABL facility |
|
(1,350.4 |
) |
|
|
(250.7 |
) |
Payments of obligations under finance leases |
|
(33.1 |
) |
|
|
(41.1 |
) |
Payments for debt financing costs |
|
(33.9 |
) |
|
|
— |
|
Dividends paid on common stock |
|
(246.7 |
) |
|
|
(208.5 |
) |
Treasury stock purchase, at cost |
|
(1,199.7 |
) |
|
|
— |
|
Unsettled accelerated share repurchase agreement |
|
(150.0 |
) |
|
|
— |
|
Employee tax withholding on vesting of restricted stock units |
|
(32.4 |
) |
|
|
(42.0 |
) |
Net cash used in financing activities |
|
(461.2 |
) |
|
|
(492.3 |
) |
|
|
|
|
||||
Net (decrease) increase in cash and cash equivalents and restricted cash |
|
(97.0 |
) |
|
|
13.3 |
|
Cash and cash equivalents and restricted cash at beginning of period |
|
297.9 |
|
|
|
193.2 |
|
Cash and cash equivalents and restricted cash at end of period |
$ |
200.9 |
|
|
$ |
206.5 |
|
Albertsons Companies, Inc. and Subsidiaries Reconciliation of Non-GAAP Measures (in millions, except per share data) |
|||||||||||||||
The following table reconciles Net income to Adjusted net income and Adjusted EBITDA (in millions): |
|||||||||||||||
|
12 weeks ended |
|
40 weeks ended |
||||||||||||
|
November 29,
|
|
November 30,
|
|
November 29,
|
|
November 30,
|
||||||||
Net income |
$ |
293.3 |
|
|
$ |
400.6 |
|
|
$ |
698.2 |
|
|
$ |
786.8 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Business transformation (1)(b) |
|
35.6 |
|
|
|
15.0 |
|
|
|
109.2 |
|
|
|
52.8 |
|
Equity-based compensation expense (b) |
|
21.2 |
|
|
|
21.7 |
|
|
|
73.6 |
|
|
|
87.9 |
|
(Gain) loss on property dispositions and impairment losses, net |
|
(1.2 |
) |
|
|
10.2 |
|
|
|
(28.7 |
) |
|
|
59.4 |
|
LIFO expense (a) |
|
13.2 |
|
|
|
3.5 |
|
|
|
41.5 |
|
|
|
22.9 |
|
Merger-related costs (2)(b) |
|
23.1 |
|
|
|
61.1 |
|
|
|
61.1 |
|
|
|
220.8 |
|
Certain legal and regulatory accruals and settlements, net (b) |
|
2.9 |
|
|
|
2.2 |
|
|
|
13.9 |
|
|
|
2.0 |
|
Amortization of debt discount and deferred financing costs (c) |
|
3.8 |
|
|
|
3.8 |
|
|
|
15.2 |
|
|
|
12.3 |
|
Amortization of intangible assets resulting from acquisitions (b) |
|
11.2 |
|
|
|
11.1 |
|
|
|
37.1 |
|
|
|
36.9 |
|
Miscellaneous adjustments (3)(e) |
|
18.0 |
|
|
|
4.3 |
|
|
|
16.0 |
|
|
|
37.1 |
|
State income tax benefits related to the settlement of audits |
|
— |
|
|
|
(81.0 |
) |
|
|
— |
|
|
|
(81.0 |
) |
Tax impact of adjustments to Adjusted net income |
|
(30.8 |
) |
|
|
(32.2 |
) |
|
|
(79.5 |
) |
|
|
(125.0 |
) |
Adjusted net income |
$ |
390.3 |
|
|
$ |
420.3 |
|
|
$ |
957.6 |
|
|
$ |
1,112.9 |
|
Tax impact of adjustments to Adjusted net income |
|
30.8 |
|
|
|
32.2 |
|
|
|
79.5 |
|
|
|
125.0 |
|
State income tax benefits related to the settlement of audits |
|
— |
|
|
|
81.0 |
|
|
|
— |
|
|
|
81.0 |
|
Income tax expense |
|
84.4 |
|
|
|
14.5 |
|
|
|
210.6 |
|
|
|
124.7 |
|
Amortization of debt discount and deferred financing costs (c) |
|
(3.8 |
) |
|
|
(3.8 |
) |
|
|
(15.2 |
) |
|
|
(12.3 |
) |
Interest expense, net |
|
116.0 |
|
|
|
109.0 |
|
|
|
363.1 |
|
|
|
358.3 |
|
Amortization of intangible assets resulting from acquisitions (b) |
|
(11.2 |
) |
|
|
(11.1 |
) |
|
|
(37.1 |
) |
|
|
(36.9 |
) |
Depreciation and amortization (d) |
|
432.2 |
|
|
|
423.0 |
|
|
|
1,439.6 |
|
|
|
1,396.9 |
|
Adjusted EBITDA |
$ |
1,038.7 |
|
|
$ |
1,065.1 |
|
|
$ |
2,998.1 |
|
|
$ |
3,149.6 |
|
Albertsons Companies, Inc. and Subsidiaries Reconciliation of Non-GAAP Measures (in millions, except per share data) |
|||||||||||
The following tables reconcile diluted net income per Class A common share to Adjusted net income per Class A common share (in millions, except per share data): |
|||||||||||
|
12 weeks ended |
|
40 weeks ended |
||||||||
|
November 29,
|
|
November 30,
|
|
November 29,
|
|
November 30,
|
||||
Numerator: |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
Adjusted net income (4) |
$ |
390.3 |
|
$ |
420.3 |
|
$ |
957.6 |
|
$ |
1,112.9 |
|
|
|
|
|
|
|
|
||||
Denominator: |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
Weighted average Class A common shares outstanding - diluted |
|
534.7 |
|
|
584.1 |
|
|
559.4 |
|
|
582.9 |
Restricted stock units (5) |
|
7.6 |
|
|
7.4 |
|
|
7.9 |
|
|
8.0 |
Adjusted weighted average Class A common shares outstanding - diluted |
|
542.3 |
|
|
591.5 |
|
|
567.3 |
|
|
590.9 |
|
|
|
|
|
|
|
|
||||
Adjusted net income per Class A common share - diluted |
$ |
0.72 |
|
$ |
0.71 |
|
$ |
1.69 |
|
$ |
1.88 |
|
12 weeks ended |
|
40 weeks ended |
||||||||||||
|
November 29,
|
|
November 30,
|
|
November 29,
|
|
November 30,
|
||||||||
Net income per Class A common share - diluted |
$ |
0.55 |
|
|
$ |
0.69 |
|
|
$ |
1.25 |
|
|
$ |
1.35 |
|
Non-GAAP adjustments (6) |
|
0.18 |
|
|
|
0.03 |
|
|
|
0.46 |
|
|
|
0.56 |
|
Restricted stock units (5) |
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.03 |
) |
Adjusted net income per Class A common share - diluted |
$ |
0.72 |
|
|
$ |
0.71 |
|
|
$ |
1.69 |
|
|
$ |
1.88 |
|
(1) |
Primarily includes costs associated with third-party consulting fees related to our Customers for Life strategy and costs related to employee terminations. |
|
(2) |
The 12 and 40 weeks ended November 29, 2025 primarily relates to litigation costs and retention program expense related to the terminated merger. The 12 and 40 weeks ended November 30, 2024 primarily includes third-party legal and advisor fees and retention program expense related to the merger. |
|
(3) |
Primarily includes pension settlement gains and losses, adjustments for closed stores and surplus properties, net realized and unrealized gains and losses related to non-operating investments, non-cash rent expense, gains and losses on energy hedges and other items not considered in our core performance. |
|
(4) |
See the reconciliation of Net income to Adjusted net income above for further details. |
|
(5) |
Represents incremental unvested restricted stock units ("RSUs") to adjust the diluted weighted average Class A common shares outstanding during each respective period to the fully outstanding RSUs as of the end of each respective period. |
|
(6) |
Reflects the per share impact of Non-GAAP adjustments for each period. See the reconciliation of Net income to Adjusted net income above for further details. |
|
|
|
|
Non-GAAP adjustment classifications within the Condensed Consolidated Statements of Operations: |
||
(a) |
Cost of sales |
|
(b) |
Selling and administrative expenses |
|
(c) |
Interest expense, net |
|
Albertsons Companies, Inc. and Subsidiaries Reconciliation of Non-GAAP Measures (in millions, except per share data) |
|||||||||||
| (d) Depreciation and amortization: | |||||||||||
|
12 weeks ended |
|
40 weeks ended |
||||||||
|
November 29,
|
|
November 30,
|
|
November 29,
|
|
November 30,
|
||||
Cost of sales |
$ |
46.4 |
|
$ |
41.3 |
|
$ |
155.7 |
|
$ |
136.7 |
Selling and administrative expenses |
|
385.8 |
|
|
381.7 |
|
|
1,283.9 |
|
|
1,260.2 |
Total Depreciation and amortization |
$ |
432.2 |
|
$ |
423.0 |
|
$ |
1,439.6 |
|
$ |
1,396.9 |
| (e) Miscellaneous adjustments: | ||||||||||||||
|
12 weeks ended |
|
40 weeks ended |
|||||||||||
|
November 29,
|
|
November 30,
|
|
November 29,
|
|
November 30,
|
|||||||
Cost of sales |
$ |
(0.2 |
) |
|
$ |
(0.4 |
) |
|
$ |
(0.5 |
) |
|
$ |
2.0 |
Selling and administrative expenses |
|
19.2 |
|
|
|
8.1 |
|
|
|
42.5 |
|
|
|
31.7 |
Other (income) expense, net |
|
(1.0 |
) |
|
|
(3.4 |
) |
|
|
(26.0 |
) |
|
|
3.4 |
Total Miscellaneous adjustments |
$ |
18.0 |
|
|
$ |
4.3 |
|
|
$ |
16.0 |
|
|
$ |
37.1 |
Albertsons Companies, Inc. and Subsidiaries Reconciliation of Non-GAAP Measures (in millions) |
|||
The following table is a reconciliation of Net debt ratio on a rolling four quarter basis: |
|||
|
November 29,
|
|
November 30,
|
Total debt (including finance leases) |
|
|
|
Cash and cash equivalents |
195.1 |
|
202.3 |
Total debt net of cash and cash equivalents |
8,817.6 |
|
7,636.1 |
|
|
|
|
Rolling four quarters Adjusted EBITDA |
|
|
|
|
|
|
|
Total Net debt ratio |
2.29 |
|
1.88 |
The following table is a reconciliation of Net income to EBITDA and Adjusted EBITDA on a rolling four quarter basis: |
|||||||
|
Rolling four quarters ended |
||||||
|
November 29,
|
|
November 30,
|
||||
Net income |
$ |
870.0 |
|
|
$ |
1,037.3 |
|
Depreciation and amortization |
|
1,860.6 |
|
|
|
1,816.0 |
|
Interest expense, net |
|
464.6 |
|
|
|
467.3 |
|
Income tax expense |
|
257.0 |
|
|
|
189.0 |
|
EBITDA |
|
3,452.2 |
|
|
|
3,509.6 |
|
|
|
|
|
||||
Business transformation (1) |
|
161.6 |
|
|
|
60.0 |
|
Equity-based compensation expense |
|
91.9 |
|
|
|
111.9 |
|
Loss on property dispositions and impairment losses, net |
|
7.7 |
|
|
|
60.2 |
|
LIFO expense (benefit) |
|
47.2 |
|
|
|
(12.9 |
) |
Merger-related costs (2) |
|
95.1 |
|
|
|
277.2 |
|
Certain legal and regulatory accruals and settlements, net |
|
18.0 |
|
|
|
2.0 |
|
Miscellaneous adjustments (3) |
|
(20.5 |
) |
|
|
57.4 |
|
Adjusted EBITDA |
$ |
3,853.2 |
|
|
$ |
4,065.4 |
|
(1) |
|
Primarily includes costs associated with third-party consulting fees related to our Customers for Life strategy and costs related to employee terminations. |
(2) |
|
Primarily includes third-party legal and advisor fees and retention program expense related to the merger. Also includes litigation costs related to the termination of the merger in December 2024. |
(3) |
|
Primarily includes pension settlement gains and losses, net realized and unrealized gains and losses related to non-operating investments, adjustments for closed stores and surplus properties, non-cash rent expense, gains and losses on energy hedges and other items not considered in our core performance. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260107106352/en/
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Source: Albertsons® Companies, Inc.
