UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): October 18, 2012
SUPERVALU
INC.
(Exact
name of registrant as specified in its charter)
Delaware |
1–5418 |
41–0617000 |
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
7075 Flying Cloud Drive |
55344 |
(Address of principal executive offices) |
(Zip Code) |
Registrant’s
telephone number, including area code: (952)
828-4000
N/A |
||
(Former name or former address, if changed since last report) |
Check the
appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions (see
General Instruction A.2. below):
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 |
Results of Operations and Financial Condition. |
On October 18, 2012, SUPERVALU INC. (the “Company”) issued a News Release announcing its financial results for the quarter ended September 8, 2012. A copy of the New Release issued by the Company in connection with this Item 2.02 is attached as Exhibit 99.1 and incorporated by reference herein.
The information in this Item 2.02 and Item 9.01 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, regardless of any general incorporation language in such filing.
Item 9.01 |
Financial Statements and Exhibits. |
(d) Exhibits.
Exhibit Number |
Description |
||
99.1 |
News Release of SUPERVALU INC., dated October 18, 2012 |
SIGNATURES
Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: |
October 18, 2012 |
|
|
SUPERVALU INC. |
|||
|
|
By: /s/ Sherry M. Smith |
|
Sherry M. Smith |
|||
Executive Vice President and |
|||
Chief Financial Officer |
|||
(Authorized Officer of Registrant) |
EXHIBIT INDEX
Exhibit |
Description |
99.1 |
News Release of SUPERVALU INC., dated October 18, 2012 |
Exhibit 99.1
SUPERVALU Announces Second Quarter Fiscal 2013 Results
MINNEAPOLIS--(BUSINESS WIRE)--October 18, 2012--SUPERVALU INC. (NYSE: SVU) today reported second quarter fiscal 2013 net sales of $8.0 billion compared to $8.4 billion last year. The net loss for the second quarter totaled $111 million, or $0.52 per diluted share, including predominantly non-cash net charges of $111 million after-tax, or $0.52 per diluted share. These net charges are comprised of intangible asset impairment charges ($45 million after-tax, or $0.21 per diluted share), charges related to the previously announced store closures net of a gain on sale of assets ($25 million after-tax, or $0.12 per diluted share), other asset impairment charges ($23 million after-tax, or $0.11 per diluted share), the write-off of unamortized costs related to the senior secured credit facilities which were replaced by the recent debt refinancing ($14 million after-tax, or $0.06 per diluted share), and other employee-related costs ($4 million after-tax, or $0.02 per diluted share). When adjusted for these items, second quarter net earnings were $0.00 per diluted share compared to $60 million, or $0.28 per diluted share last year. [See table 1 for a reconciliation of GAAP (actual) and non-GAAP (adjusted) results appearing in this release]. Year-to-date net cash flows from operating activities were $415 million and EBITDA before charges for the 52 weeks ended September 8, 2012 was $1.65 billion.
“We have accomplished a number of important steps since I became president and chief executive officer mid-way through the second quarter, including the successful refinancing of our credit facility, restructuring our executive leadership team, and announcing the closure of 60 stores,” said Wayne Sales, SUPERVALU’s president, chief executive officer, and chairman. “Our team is aggressively focused on four key strategic imperatives necessary to improve our business: driving profitable retail sales, growing Save-A-Lot, building our network of successful independent retailers, and reducing costs. I am excited by the progress we have made in defining our key strategies and specific initiatives within each segment of our business.”
Sales continued, “We recently completed our price repositioning at Jewel-Osco and are pleased with the initial results. Price is only one part of an overall plan to build traffic and drive customer engagement. However, as we measure these results, we are also assessing our on-going approach to price investments, our value proposition and how we go to market. As such, the timing of repositioning half our stores will extend past the end of fiscal 2013. At the same time, we are moving quickly on initiatives that will remove significant cost from our business, efforts that will make us more competitive in the future. And, although we have much to do, I am encouraged every day by the quality of our team members and their commitment to our success.”
“I am pleased that the Company continues to generate substantial cash flow. Year-to-date, we have generated more than $400 million in cash flow from operations and, including the proceeds from asset sales, will generate between $900 and $950 million in fiscal 2013. We will use this to reduce our outstanding debt and keep our stores fresh and appealing,” concluded Sales.
Second Quarter Results
Second quarter net sales were $8.0 billion compared to $8.4 billion last year, a decline of 4.6 percent. The decrease in net sales primarily reflects both a decline in identical store sales and the disposition of a majority of the Company’s retail fuel centers which contributed $158 million in sales in the second quarter of fiscal 2012. Identical store sales were influenced by the stressed consumer, the competitive environment, and continued investment in achieving competitive pricing.
Gross profit margin for the second quarter was $1.72 billion, or 21.4 percent of net sales, compared to $1.87 billion or 22.2 percent of net sales last year. The decrease in gross margin as a percent of net sales reflects the negative rate impact from additional promotional activity, an increased level of continued investment in competitive pricing, and a change in business mix which was partially offset by the rate benefit from lower fuel sales (approximately 30 basis points) and a lower LIFO charge.
Selling and administrative expenses in the second quarter were $1.69 billion, or 21.0 percent of net sales, including $87 million in net pre-tax charges primarily related to store closures, asset impairments, and employee-related costs partially offset by the gain on sale of assets. Excluding these items, selling and administrative costs were $1.60 billion, or 19.9 percent of net sales, including an approximate 30 basis point negative impact from lower fuel sales. In the second quarter of fiscal 2012, selling and administrative costs were $1.66 billion, or 19.7 percent of net sales last year. The 10 basis point decrease in the adjusted selling and administrative expense rate as a percent of net sales in the second quarter of fiscal 2013 reflects a change in business mix which was partly offset by the impact of higher corporate reserves related to surplus properties.
Net interest expense for the second quarter was $141 million and included $22 million in pre-tax charges related to writing-off the unamortized loan costs associated with the Company’s previous senior secured credit facility. Excluding this charge, net interest expense was $119 million. In the second quarter of fiscal 2012, net interest expense was $120 million. During the quarter, the Company refinanced its senior secured credit facilities with a $1.65 billion asset-based revolving credit facility and an $850 million term loan, secured by a portion of the Company’s real estate and equipment.
SUPERVALU’s income tax benefit was $71 million, or 38.8 percent of pre-tax loss, for the second quarter, compared to income tax expense of $36 million, or 37.4 percent of pre-tax income in last year’s second quarter.
Diluted weighted-average shares outstanding for the second quarter were 212 million shares compared to 213 million shares last year. For the second quarter of fiscal 2013, diluted loss per share is computed using the basic weighted-average number of shares outstanding and excludes all outstanding stock options and restricted stock as their effect is anti-dilutive when applied to a loss. As of October 12, 2012, SUPERVALU had 214 million shares outstanding.
Retail Food
Second quarter Retail Food net sales were $5.20 billion compared to $5.61 billion last year, a decline of 7.3 percent, primarily reflecting identical store sales of negative 4.3 percent and the disposition of a majority of the Company’s retail fuel centers which contributed $158 million in sales in the second quarter of fiscal 2012.
Retail Food operating loss was $83 million and included $142 million in net pre-tax charges related to intangible and other asset impairments, previously announced store closures and employee-related costs which were partially offset by the gain on sale of assets in conjunction with the previously announced store closures. Excluding these items, Retail Food operating earnings were $59 million, or 1.1 percent of net sales. For the second quarter of fiscal 2012, Retail Food operating earnings were $127 million, or 2.3 percent of net sales last year. The change in Retail Food operating earnings as a percent of net sales was primarily due to increased promotional activity, an increased level of continued investment in competitive pricing, and the deleveraging impact of negative identical store sales which were partially offset by cost reduction initiatives and a lower LIFO charge.
Save-A-Lot
Second quarter Save-A-Lot net sales were $973 million compared to $972 million last year, an increase of 0.1 percent, reflecting the benefit from 47 net new stores being operated at the end of the second quarter of fiscal 2013, offset by the impact from network identical store sales of negative 3.7 percent.
Save-A-Lot operating earnings in the second quarter were $18 million and included $16 million in pre-tax charges primarily related to store closure costs. Excluding these costs, Save-A-Lot operating earnings were $34 million, or 3.5 percent of net sales. For the second quarter of fiscal 2012, Save-A-Lot operating earnings were $50 million, or 5.1 percent of net sales last year. The decline in operating earnings as a percent of net sales was primarily attributable to lower gross margin rates attributable to competitive price investments and additional administrative costs to support its growth strategy.
Independent Business
Second quarter Independent Business net sales were $1.87 billion compared to $1.85 billion last year, an increase of 1.1 percent, primarily due to higher sales to existing customers.
Independent Business operating earnings in the second quarter were $50 million, or 2.7 percent of net sales, compared to $56 million, or 3.1 percent of net sales last year. The decline in Independent Business operating earnings as a percent of net sales was primarily attributable to gross margin investment.
Cash flows
Year-to-date net cash flows from operating activities were $415 million compared to $580 million in the prior year. Year-to-date net cash flows used in investing activities were $307 million compared to $203 million last year, reflecting higher payments for capital expenditures. Year-to-date cash flows used in financing activities were $117 million compared to $334 million last year, reflecting a higher level of debt reduction in the prior year.
Outlook
The Company currently expects debt reduction for fiscal 2013 to be in the range of $400 to $450 million. Cash capital spending is projected to be in the range of $450 to $500 million, including expenditures for technology, maintenance of fleet and facilities, new Save-A-Lot stores, and approximately 40 store remodels.
Strategic Review Update
The Company’s previously announced review of strategic alternatives is proceeding. The Company has received a number of indications of interest and is in active dialogue with several parties. There can be no assurance that this process will result in any transaction or any change in the Company’s overall structure or its business model.
Conference Call
A conference call to review the second quarter results is scheduled for 9:00 a.m. central time today. The call will be webcast live at www.supervaluinvestors.com (click on microphone icon). A replay of the call will be archived at www.supervaluinvestors.com. To access the website replay go to the "Investors" link and click on "Presentations and Webcasts."
About SUPERVALU INC.
SUPERVALU INC. is one of the largest companies in the U.S. grocery channel with annual sales of approximately $35 billion. SUPERVALU serves customers across the United States through a network of approximately 4,400 stores composed of 1,099 traditional retail stores, including 797 in-store pharmacies; 1,341 Save-A-Lot stores, of which 943 are operated by licensee owners; and 1,950 independent stores serviced primarily by the Company's food distribution business. SUPERVALU has approximately 125,000 employees. For more information about SUPERVALU visit www.supervalu.com.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.
Except for the historical and factual information contained herein, the matters set forth in this news release, particularly those pertaining to SUPERVALU’s expectations, guidance, or future operating results, and other statements identified by words such as "estimates," "expects," "projects," "plans," and similar expressions are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including competition, ability to execute initiatives, substantial indebtedness, impact of economic conditions, labor relations issues, escalating costs of providing employee benefits, regulatory matters, food and drug safety issues, self-insurance, legal and administrative proceedings, information technology, severe weather, natural disasters and adverse climate changes, the continuing review of goodwill and other intangible assets, accounting matters and other risk factors relating to our business or industry as detailed from time to time in SUPERVALU's reports filed with the SEC. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, SUPERVALU undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
SUPERVALU INC. and Subsidiaries | |||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Fiscal Quarter Ended | Fiscal Quarter Ended | ||||||||||||||||
September 8, 2012 | September 10, 2011 | ||||||||||||||||
(In millions, except per share data) | (12 weeks) | % of net sales | (12 weeks) | % of net sales | |||||||||||||
Net sales | $ | 8,039 | 100.0 | % | $ | 8,429 | 100.0 | % | |||||||||
Cost of sales | 6,319 | 78.6 | % | 6,556 | 77.8 | % | |||||||||||
Gross profit | 1,720 | 21.4 | % | 1,873 | 22.2 | % | |||||||||||
Selling and administrative expenses | 1,687 | 21.0 | % | 1,657 | 19.7 | % | |||||||||||
Intangible asset impairment charges | 74 | 0.9 | % | - | 0.0 | % | |||||||||||
Operating earnings (loss) | (41 | ) | (0.5 | )% | 216 | 2.6 | % | ||||||||||
Interest expense, net | 141 | 1.7 | % | 120 | 1.4 | % | |||||||||||
Earnings (loss) before income taxes | (182 | ) | (2.3 | )% | 96 | 1.1 | % | ||||||||||
Income tax provision (benefit) | (71 | ) | (0.9 | )% | 36 | 0.4 | % | ||||||||||
Net earnings (loss) | $ | (111 | ) | (1.4 | )% | $ | 60 | 0.7 | % | ||||||||
Net income (loss) per share | |||||||||||||||||
Basic | $ | (0.52 | ) | $ | 0.28 | ||||||||||||
Diluted | $ | (0.52 | ) | $ | 0.28 | ||||||||||||
Weighted average number of shares outstanding | |||||||||||||||||
Basic | 212 | 212 | |||||||||||||||
Diluted | 212 | 213 | |||||||||||||||
SUPERVALU INC. and Subsidiaries | |||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Fiscal Year-to-Date Ended | Fiscal Year-to-Date Ended | ||||||||||||||||
September 8, 2012 | September 10, 2011 | ||||||||||||||||
(In millions, except per share data) | (28 weeks) | % of net sales | (28 weeks) | % of net sales | |||||||||||||
Net sales | $ | 18,629 | 100.0 | % | $ | 19,542 | 100.0 | % | |||||||||
Cost of sales | 14,584 | 78.3 | % | 15,210 | 77.8 | % | |||||||||||
Gross profit | 4,045 | 21.7 | % | 4,332 | 22.2 | % | |||||||||||
Selling and administrative expenses | 3,803 | 20.4 | % | 3,836 | 19.6 | % | |||||||||||
Intangible asset impairment charges | 74 | 0.4 | % | - | 0.0 | % | |||||||||||
Operating earnings (loss) | 168 | 0.9 | % | 496 | 2.5 | % | |||||||||||
Interest expense, net | 296 | 1.6 | % | 275 | 1.4 | % | |||||||||||
Earnings (loss) before income taxes | (128 | ) |
(0.7 |
)% | 221 | 1.1 | % | ||||||||||
Income tax provision (benefit) | (58 | ) | (0.3 | )% | 87 | 0.4 | % | ||||||||||
Net earnings (loss) | $ | (70 | ) | (0.4 | )% | $ | 134 | 0.7 | % | ||||||||
Net income (loss) per share | |||||||||||||||||
Basic | $ | (0.33 | ) | $ | 0.63 | ||||||||||||
Diluted | $ | (0.33 | ) | $ | 0.63 | ||||||||||||
Weighted average number of shares outstanding | |||||||||||||||||
Basic | 212 | 212 | |||||||||||||||
Diluted | 212 | 213 | |||||||||||||||
SUPERVALU INC. and Subsidiaries | ||||||||||
CONDENSED CONSOLIDATED SEGMENT FINANCIAL INFORMATION | ||||||||||
(Unaudited) | ||||||||||
Fiscal Quarter Ended | Fiscal Quarter Ended | |||||||||
September 8, 2012 | September 10, 2011 | |||||||||
(In millions) | (12 weeks) | (12 weeks) | ||||||||
Net sales | ||||||||||
Retail Food (1) | $ | 5,196 | $ | 5,608 | ||||||
% of total | 64.6 | % | 66.6 | % | ||||||
Save-A-Lot (1) | 973 | 972 | ||||||||
% of total | 12.1 | % | 11.5 | % | ||||||
Independent Business | 1,870 | 1,849 | ||||||||
% of total | 23.3 | % | 21.9 | % | ||||||
Total net sales | 8,039 | 8,429 | ||||||||
100.0 | % | 100.0 | % | |||||||
Operating earnings (loss) | ||||||||||
Retail Food (2) | $ | (83 | ) | $ | 127 | |||||
% of sales | (1.6 | )% | 2.3 | % | ||||||
Save-A-Lot (3) | 18 | 50 | ||||||||
% of sales | 1.9 | % | 5.1 | % | ||||||
Independent Business | 50 | 56 | ||||||||
% of sales | 2.7 | % | 3.1 | % | ||||||
Corporate (4) | (26 | ) | (17 | ) | ||||||
Total operating earnings (loss) | (41 | ) | 216 | |||||||
% of sales | (0.5 | )% | 2.6 | % | ||||||
Interest expense, net (5) | 141 | 120 | ||||||||
Earnings (loss) before income taxes | (182 | ) | 96 | |||||||
Income tax provision (benefit) | (71 | ) | 36 | |||||||
Net earnings (loss) | $ | (111 | ) | $ | 60 | |||||
LIFO charge | ||||||||||
Retail Food | $ | 5 | $ | 17 | ||||||
Independent Business | 1 | 2 | ||||||||
Total | $ | 6 | $ | 19 | ||||||
Depreciation and amortization | ||||||||||
Retail Food | $ | 171 | $ | 172 | ||||||
Save-A-Lot | 16 | 14 | ||||||||
Independent Business | 15 | 16 | ||||||||
Total | $ | 202 | $ | 202 | ||||||
(1) The Company's Save-A-Lot reportable segment was formerly aggregated with the Retail Food reportable segment. |
(2) Retail Food operating loss for the second quarter ended September 8, 2012 includes $74 of intangible asset impairment charges, $38 of asset impairment charges, $39 of charges for previously announced store closures, and $4 of multi-employer pension withdrawal, offset in part by $13 in gain on sale of assets in conjunction with the announced store closures. |
(3) Save-A-Lot operating earnings for the second quarter ended September 8, 2012 includes $16 of charges for previously announced store closures. |
(4) Corporate operating loss for the second quarter ended September 8, 2012 includes $3 of severance. |
(5) Interest expense for the second quarter ended September 8, 2012 includes $22 for the write-off of unamortized costs related to debt which was replaced as a result of the recent debt refinancing. |
SUPERVALU INC. and Subsidiaries | ||||||||||
CONDENSED CONSOLIDATED SEGMENT FINANCIAL INFORMATION | ||||||||||
(Unaudited) | ||||||||||
Fiscal Year-to-Date Ended | Fiscal Year-to-Date Ended | |||||||||
September 8, 2012 | September 10, 2011 | |||||||||
(In millions) | (28 weeks) | (28 weeks) | ||||||||
Net sales | ||||||||||
Retail Food (1) | $ | 12,021 | $ | 12,938 | ||||||
% of total | 64.5 | % | 66.2 | % | ||||||
Save-A-Lot (1) | 2,260 | 2,254 | ||||||||
% of total | 12.1 | % | 11.5 | % | ||||||
Independent Business | 4,348 | 4,350 | ||||||||
% of total | 23.4 | % | 22.3 | % | ||||||
Total net sales | 18,629 | 19,542 | ||||||||
100.0 | % | 100.0 | % | |||||||
Operating earnings (loss) | ||||||||||
Retail Food (2) | $ | 16 | $ | 277 | ||||||
% of sales | 0.1 | % | 2.1 | % | ||||||
Save-A-Lot (3) | 77 | 119 | ||||||||
% of sales | 3.4 | % | 5.3 | % | ||||||
Independent Business | 115 | 133 | ||||||||
% of sales | 2.6 | % | 3.1 | % | ||||||
Corporate (4) | (40 | ) | (33 | ) | ||||||
Total operating earnings (loss) | 168 | 496 | ||||||||
% of sales | 0.9 | % | 2.5 | % | ||||||
Interest expense, net (5) | 296 | 275 | ||||||||
Earnings (loss) before income taxes | (128 | ) | 221 | |||||||
Income tax provision (benefit) | (58 | ) | 87 | |||||||
Net earnings (loss) | $ | (70 | ) | $ | 134 | |||||
LIFO charge | ||||||||||
Retail Food | $ | 11 | $ | 30 | ||||||
Independent Business | 1 | 6 | ||||||||
Total | $ | 12 | $ | 36 | ||||||
Depreciation and amortization | ||||||||||
Retail Food | $ | 406 | $ | 410 | ||||||
Save-A-Lot | 37 | 33 | ||||||||
Independent Business | 35 | 35 | ||||||||
Total | $ | 478 | $ | 478 | ||||||
(1) The Company's Save-A-Lot reportable segment was formerly aggregated with the Retail Food reportable segment. |
(2) Retail Food operating loss for the fiscal year-to-date ended September 8, 2012 includes $74 of intangible asset impairment charges, $38 of asset impairment charges, $39 of charges for previously announced store closures, and $4 of multi-employer pension withdrawal, offset in part by $13 in gain on sale of assets in conjunction with the announced store closures. |
(3) Save-A-Lot operating earnings for the fiscal year-to-date ended September 8, 2012 includes $16 of charges for previously announced store closures. |
(4) Corporate operating loss for the fiscal year-to-date ended September 8, 2012 includes $3 of severance. |
(5) Interest expense for the fiscal year-to-date ended September 8, 2012 includes $22 for the write-off of unamortized costs related to debt which was replaced as a result of the recent debt refinancing. |
SUPERVALU INC. and Subsidiaries | |||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(In millions) | September 8, 2012 | February 25, 2012 | |||||||
(Unaudited) | |||||||||
ASSETS | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 148 | $ | 157 | |||||
Receivables, net | 752 | 730 | |||||||
Inventories | 2,190 | 2,150 | |||||||
Other current assets | 222 | 188 | |||||||
Total current assets | 3,312 | 3,225 | |||||||
Property, plant and equipment, net | 6,120 | 6,362 | |||||||
Goodwill | 847 | 847 | |||||||
Intangible assets, net | 713 | 809 | |||||||
Other assets | 862 | 810 | |||||||
Total assets | $ | 11,854 | $ | 12,053 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Current liabilities | |||||||||
Accounts payable and accrued liabilities | $ | 2,546 | $ | 2,519 | |||||
Current maturities of long-term debt and capital lease obligations | 250 | 388 | |||||||
Other current liabilities | 596 | 683 | |||||||
Total current liabilities | 3,392 | 3,590 | |||||||
Long-term debt and capital lease obligations | 6,064 | 5,868 | |||||||
Pension and other postretirement benefit obligations | 1,036 | 1,126 | |||||||
Other long-term liabilities | 1,389 | 1,448 | |||||||
Commitments and contingencies | |||||||||
Total stockholders' equity (deficit) | (27 | ) | 21 | ||||||
Total liabilities and stockholders’ equity | $ | 11,854 | $ | 12,053 | |||||
SUPERVALU INC. and Subsidiaries | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
(Unaudited) | ||||||||||
Fiscal Year-to-Date Ended | Fiscal Year-to-Date Ended | |||||||||
September 8, 2012 | September 10, 2011 | |||||||||
(In millions) | (28 weeks) | (28 weeks) | ||||||||
Cash flows from operating activities | ||||||||||
Net earnings (loss) | $ | (70 | ) | $ | 134 | |||||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||||||||||
Intangible asset impairment charges | 74 | - | ||||||||
Depreciation and amortization | 478 | 478 | ||||||||
LIFO charge | 12 | 36 | ||||||||
Asset impairment and other charges | 136 | 9 | ||||||||
Net gain on the sale of assets and exits of surplus leases | (43 | ) | (12 | ) | ||||||
Deferred income taxes | (43 | ) | 70 | |||||||
Stock-based compensation | 9 | 8 | ||||||||
Net pension and other postretirement benefits cost | 64 | 66 | ||||||||
Contributions to pension and other postretirement benefit plans | (93 | ) | (77 | ) | ||||||
Other adjustments | 20 | 11 | ||||||||
Changes in operating assets and liabilities | (129 | ) | (143 | ) | ||||||
Net cash provided by operating activities | 415 | 580 | ||||||||
Cash flows from investing activities | ||||||||||
Proceeds from sale of assets | 39 | 63 | ||||||||
Purchases of property, plant and equipment | (344 | ) | (267 | ) | ||||||
Other | (2 | ) | 1 | |||||||
Net cash used in investing activities | (307 | ) | (203 | ) | ||||||
Cash flows from financing activities | ||||||||||
Proceeds from issuance of debt | 1,591 | 291 | ||||||||
Payment of debt and capital lease obligations | (1,609 | ) | (580 | ) | ||||||
Dividends paid | (37 | ) | (37 | ) | ||||||
Other | (62 | ) | (8 | ) | ||||||
Net cash used in financing activities | (117 | ) | (334 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | (9 | ) | 43 | |||||||
Cash and cash equivalents at beginning of year | 157 | 172 | ||||||||
Cash and cash equivalents at the end of period | $ | 148 | $ | 215 | ||||||
SUPERVALU INC. and Subsidiaries |
SUPPLEMENTAL INFORMATION |
(Unaudited) |
The measures and items identified below should not be considered an alternative to any GAAP measure of performance or liquidity. Management believes the measures and items identified below are measures of performance and important measures of liquidity. The items below should be reviewed in conjunction with SUPERVALU Inc's financial results reported in accordance with GAAP. |
TABLE: 1 SECOND QUARTER FISCAL 2013 RECONCILIATION OF NET LOSS TO ADJUSTED NET EARNINGS | |||||||||||||||
Fiscal Quarter Ended September 8, 2012 | |||||||||||||||
(in millions, except per share data) | Before Tax | After Tax |
Diluted |
||||||||||||
Net loss | $ | (182 | ) | $ | (111 | ) | $ | (0.52 | ) | ||||||
Adjustments: | |||||||||||||||
Intangible asset impairment charges | 74 | 45 | 0.21 | ||||||||||||
Store closure impairment charges, net of gain | 42 | 25 | 0.12 | ||||||||||||
Long-lived asset impairment charges | 38 | 23 | 0.11 | ||||||||||||
Unamortized financing cost charge | 22 | 14 | 0.06 | ||||||||||||
Labor buy-out and severance costs | 7 | 4 | 0.02 | ||||||||||||
Net earnings after adjustments | $ | 1 | $ | - | $ | 0.00 | |||||||||
TABLE: 2 SECOND QUARTER FISCAL 2013 YEAR-TO-DATE RECONCILIATION OF NET LOSS TO ADJUSTED NET EARNINGS | ||||||||||||
Fiscal Year-to-Date Ended September 8, 2012 | ||||||||||||
(in millions, except per share data) | Before Tax | After Tax |
Diluted |
|||||||||
Net loss | $ | (128 | ) | $ | (70 | ) | $ | (0.33 | ) | |||
Adjustments: | ||||||||||||
Intangible asset impairment charges | 74 | 45 | 0.21 | |||||||||
Store closure impairment charges, net of gain | 42 | 25 | 0.12 | |||||||||
Long-lived asset impairment charges | 38 | 23 | 0.11 | |||||||||
Unamortized financing cost charge | 22 | 14 | 0.06 | |||||||||
Pension withdrawal and severance costs | 7 | 4 | 0.02 | |||||||||
Net earnings after adjustments | $ | 55 | $ | 41 | $ | 0.19 | ||||||
TABLE: 3 RECONCILIATION OF NET EARNINGS (LOSS) TO ADJUSTED EBITDA FOR 52 WEEKS ENDED SEPTEMBER 8, 2012 AND SEPTEMBER 10, 2011 | |||||||||
52 Weeks Ended | |||||||||
(in millions) |
September 8, |
September 10, |
|||||||
Net earnings (loss) | $ | (1,244 | ) | $ | 27 | ||||
Adjustments: | |||||||||
Goodwill and intangible asset impairment charges | 1,506 | 270 | |||||||
Store closure and other impairment charges, net of gain (1) | 64 | 36 | |||||||
Long-lived asset impairment charges | 38 | - | |||||||
Labor buy-out, severance, and pension withdrawal | 27 | 40 | |||||||
Depreciation and amortization | 884 | 901 | |||||||
Interest expense (2) | 508 | 519 | |||||||
Income tax provision (benefit) | (133 | ) | 70 | ||||||
Adjusted EBITDA | $ | 1,650 | $ | 1,863 | |||||
(1) Store closure and other impairment charges, net of gain includes a gain on the sale of assets in conjunction with the announced store closures of $13 for the 52 weeks ended September 8, 2012 and a gain on the sale of Total Logistics Control of $62 for the 52 weeks ended September 10, 2011. |
(2) Interest expense for the 52 weeks ended September 8, 2012 is exclusive of the unamortized financing cost impairment charge, which is reported in Store closure and other impairment charges, net of gain above. |
CONTACT:
SUPERVALU INC.
Investor Contact:
Steve
Bloomquist, 952-828-4144
steve.j.bloomquist@supervalu.com
or
Media
Contact:
Mike Siemienas, 952-828-4245
mike.siemienas@supervalu.com