Smart & Final Stores, Inc. Reports Third Quarter 2015 Financial Results

Nov 11, 2015, 16:10 ET from Smart & Final Stores, Inc.

COMMERCE, Calif., Nov. 11, 2015 /PRNewswire/ -- Smart & Final Stores, Inc. (the "Company") (NYSE: SFS) today reported financial results for the sixteen week fiscal third quarter ended October 4, 2015.

Third Quarter Highlights:

  • Net sales increased 10.1% to $1,246.1 million
  • Comparable store sales growth of 4.8%
  • Net income of $12.4 million, or $0.16 per diluted share
  • Adjusted net income increased 13.6% to $16.9 million, or $0.22 per diluted share
  • Adjusted EBITDA increased 4.8% to $59.8 million
  • 270 stores at quarter-end, including 120 Smart & Final Extra! stores
  • Increased Adjusted EBITDA guidance for 2015

"Smart & Final Stores delivered solid operational and financial results in the third quarter, led by our consistent comparable store sales growth and new store development in-line with our plans," said Dave Hirz, President and Chief Executive Officer. "Since our September 2014 initial public offering, we have grown the number of Smart & Final Extra! stores by 33 to 120, opened two new stores in the Cash & Carry banner, and continued to deepen our merchandise offering to meet the evolving needs of both our household and business customers."

Mr. Hirz continued, "Our third quarter performance was strong across our banners, with both Smart & Final and Cash & Carry stores posting solid transaction growth and stable gross margin rates.  While average transaction size continues to be impacted by moderating deflation in some product categories, overall sales growth is in our expected range for 2015. As a result, we are increasing our full year 2015 guidance for Adjusted EBITDA to a range of $190 to $192 million."

"Our consistent new store execution provides us with a solid foundation to pursue an exciting opportunity for accelerated development of Smart & Final Extra! stores, through the acquisition of 32 store leases and related assets in central and southern California previously operated under the Haggen store banner," Mr. Hirz added.  "While this opportunity remains subject to court approval and customary closing conditions, we are optimistic that we will be successful in acquiring these store leases, which we expect to open in 2016. Our 2016 store development plans also include an anticipated additional six to eight new Smart & Final Extra! stores and three to five new Cash & Carry stores.  With exciting store growth prospects, an exceptional team, and a differentiated consumer proposition, we look forward to continuing to execute our growth plan."

In order to aid understanding of the Company's business performance, it has presented results in conformity with accounting principles generally accepted in the United States ("GAAP") and has also presented adjusted net income, adjusted net income per share, adjusted net income per diluted share, EBITDA and adjusted EBITDA, which are non-GAAP measures that are explained and reconciled to the comparable GAAP measures in the tables included in this release. Where applicable, the numbers below are first presented on a GAAP basis and then on an adjusted basis.

Third Quarter 2015 Financial Results Net sales were $1,246.1 million, a 10.1% increase as compared to $1,131.8 million in the same period of 2014. Net sales growth was driven by a 4.8% increase in comparable store sales and from the net sales contribution of new stores. The growth in comparable store sales was comprised of a 5.0% increase in comparable transaction count and a 0.2% decrease in comparable average transaction size.

Net sales for Smart & Final banner stores were $940.2 million, a 12.0% increase as compared to $839.3 million in the same period of 2014.  Comparable store sales growth for the Smart & Final banner was 5.5% in the third quarter.

Net sales for Cash & Carry banner stores were $305.9 million, a 4.6% increase as compared to $292.5 million in the same period of 2014.  Comparable store sales growth for the Cash & Carry banner was 2.9% in the third quarter.

Gross margin from operations was $187.2 million, a 10.5% increase as compared to $169.5 million in the same period of 2014. Gross margin rate in the third quarter was 15.0%, unchanged from the same period in the prior year.

Operating and administrative expenses were $157.0 million, an 11.6% increase as compared to $140.7 million in the same period of 2014. This increase was primarily related to higher sales volumes, increased store count and support costs, additional marketing expenses and public company costs.

Net income was $12.4 million, as compared to $10.2 million in the same period of 2014. Net income per diluted share was $0.16 as compared to $0.17 in the same period of 2014, and reflects an increase of approximately 16.2 million fully diluted shares, including shares issued in the Company's September 2014 initial public offering (the "IPO").

Adjusted net income was $16.9 million, an increase of 13.6% as compared to $14.9 million for the same period of 2014. Adjusted net income per diluted share was $0.22 as compared to $0.24 in the same period of 2014, and reflects an increase of approximately 16.2 million fully diluted shares, including shares issued in the IPO.

Adjusted EBITDA was $59.8 million, an increase of 4.8% as compared to $57.1 million in the same period of 2014.

Fiscal Year-to-date Financial Results Net sales were $2,973.4 million in the 40 weeks (three fiscal quarters) ended October 4, 2015, an increase of 10.3% as compared to $2,694.9 million in the same period of 2014. The net sales growth was primarily due to a 4.8% increase in comparable store sales and from the net sales contribution of new stores.  The growth in comparable store sales was comprised of a 4.5% increase in comparable transaction count and a 0.2% increase in comparable average transaction size. 

Net sales for Smart & Final banner stores were $2,256.4 million, an 11.5% increase as compared to $2,024.3 million in the same period of 2014. Year-to-date comparable store sales growth for the Smart & Final banner was 4.6%.

Net sales for Cash & Carry banner stores were $717.0 million, a 6.9% increase as compared to $670.6 million in the same period of 2014.  Year-to-date comparable store sales growth for the Cash & Carry banner was 5.3%.

Net income was $28.3 million, an increase of 18.7% as compared to $23.8 million in the same period of 2014. Net income per diluted share was $0.37 as compared to $0.40 for the same period of 2014, and reflects an increase of approximately 16.8 million fully diluted shares, including shares issued in the Company's September 2014 initial public offering.

Adjusted net income was $41.6 million, an increase of 21.1% as compared to $34.3 million in the same period of 2014. Adjusted net income per diluted share was $0.54 as compared to $0.57 in the same period of 2014 and reflects an increase of approximately 16.8 million fully diluted shares, including shares issued in the Company's September 2014 initial public offering.

Adjusted EBITDA was $145.5 million, an increase of 7.9% as compared to $134.8 million in the same period of 2014.

Growth and Development During the third quarter of fiscal 2015, the Company opened six new Smart & Final Extra! stores and completed three conversions of legacy Smart & Final stores to the Smart & Final Extra! format, including one store relocation. The Company also opened one new Cash & Carry store.

As of October 4, 2015, the Company operated a total of 120 Smart & Final Extra! and 96 legacy Smart & Final stores, and 54 Cash & Carry stores.

 

Operating Stores at Quarter End (October 4, 2015)

 Smart & Final Banner Stores

 Cash & Carry Banner Stores

 Total Company

  Extra! format

 Legacy format

 Total

End of Fiscal 2014

98

103

201

53

254

New stores

15

-

15

1

16

Relocations, net

2

(2)

-

-

-

Conversions

5

(5)

-

-

-

End of 3rd Quarter 2015

120

96

216

54

270

 

Consistent with prior guidance, during the fourth quarter of fiscal 2015, the Company expects to open five additional new Smart & Final Extra! stores, complete two additional conversions of legacy Smart & Final stores to the Extra! format, including one store relocation, and open one new Cash & Carry store.  The fourth quarter of fiscal 2015 will be a thirteen-week period, and the 2015 fiscal year will be a 53-week period.

Leverage and Liquidity At October 4, 2015, the Company's debt, net of debt discount, was $589.8 million. Cash and cash equivalents was $122.3 million.

In the 40 weeks ended October 4, 2015, the Company generated cash from operations of $114.6 million. The Company invested a net amount of $96.2 million in capital expenditures, primarily related to the development of new stores, store relocations and conversions, and to improvements of existing assets.

Share Repurchase Program The Company's Board of Directors has authorized a share repurchase program of up to $25 million of the Company's common stock, to be financed from cash on hand and executed over a period of time.  The Company expects any repurchases under the program to commence no earlier than November 16, 2015 and to occur over the following twelve months.

The specific timing and amount of any repurchases will be dependent on market conditions, applicable laws and other factors.  In connection with the share repurchase program, the Company may acquire shares in open market transactions (including pursuant to plans adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended) or privately negotiated transactions.

Outlook The Company currently expects to achieve the following results for its 2015 Fiscal Year (ending January 3, 2016):

 

Fiscal Year Ending January 3, 2016

Net sales growth

11% - 12%

Comparable store sales growth 

3.5% - 4.5%

Unit growth (net new stores)

20 Smart & Final Extra!

2 Cash & Carry

Relocations of existing stores

3 Smart & Final

1 Cash & Carry

Conversions of legacy stores to the Extra! format

6 stores

Adjusted EBITDA

$190 - $192 million

Adjusted net income

$51 - $53 million  

Adjusted diluted EPS

$0.67- $0.70

Capital expenditures 

$135 - $145 million

Basic weighted average shares

73.1 million

Fully diluted weighted average shares

76.6 million

 

Third Quarter 2015 Conference Call The Company will host a conference call today at 1:30 p.m. PT / 4:30 p.m. ET to discuss its fiscal third quarter 2015 financial results. To participate in the call, please dial (877) 407-0784 (U.S.) or (201) 689-8560 (International) ten minutes prior to the start time. The conference call can also be accessed on the "Investors" section of the Company's web site at http://www.smartandfinal-investor.com/.

For those unable to participate during the live broadcast, a telephonic replay of the call will also be available beginning today at approximately 7:30 p.m. Eastern Time, by dialing (877) 870-5176 (U.S.) or (858) 384-5517 (International) and entering the replay pin number: 13621882.  The telephonic replay will be available until 11:59 p.m. Eastern Time, on Wednesday, November 25, 2015.

About Smart & Final Smart & Final Stores, Inc. (NYSE: SFS), is a value-oriented food and everyday staples retailer that serves household and business customers. The Company is headquartered in Commerce (Los Angeles), CA, where it was founded over 140 years ago.  As of October 4, 2015, the Company operated 270 grocery and foodservice stores under the "Smart & Final", "Smart & Final Extra!" and "Cash & Carry Smart Foodservice" banners in California, Oregon, Washington, Arizona, Nevada, and Idaho, with an additional 16 Smart & Final stores in northern Mexico operated through a joint venture.

Forward-Looking Statements Certain statements contained in this release that are not historical information contain forward-looking statements. The forward-looking statements involve risks and uncertainties and actual results may differ materially from those projected or implied. Further, certain forward-looking statements are based on assumptions of future events which may not prove to be accurate. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "may," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or, in each case, their negative, or other variations or comparable terminology. The Company derives many of its forward-looking statements from its operating budgets and forecasts, which are based upon many detailed assumptions. While the Company believes that its assumptions are reasonable, it is difficult to predict the impact of known factors and, of course, it is impossible to anticipate all factors that could affect actual results. These factors are discussed in the "Risk Factors," "Special Note Concerning Forward-Looking Statements," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Business" sections and elsewhere in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission.

You should keep in mind that any forward-looking statement made by the Company herein, or elsewhere, speaks only as of the date on which made. New risks and uncertainties come up from time to time, and it is impossible for the Company to predict these events or how they may affect it. The Company has no obligation to update any forward-looking statements after the date hereof, except as required by federal securities laws.

 

Smart & Final Stores, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations 

(Unaudited)

(In Thousands, Except Share and Per Share Amounts)

 Sixteen Weeks Ended 

 Forty Weeks Ended 

October 4, 2015

October 5, 2014

October 4, 2015

October 5, 2014

Net sales 

$        1,246,063

$        1,131,821

$        2,973,354

$        2,694,908

Cost of sales, buying and occupancy 

1,058,824

962,317

2,522,367

2,292,630

Gross margin 

187,239

169,504

450,987

402,278

Operating and administrative expenses 

157,040

140,678

378,122

334,527

Income from operations 

30,199

28,826

72,865

67,751

Interest expense, net 

9,333

11,725

25,007

29,483

Loss on early extinguishment of debt

-

2,224

2,192

2,224

Equity in earnings of joint venture 

138

318

1,045

1,032

Income before income taxes 

21,004

15,195

46,711

37,076

Income tax provision

(8,624)

(4,972)

(18,410)

(13,231)

Net income

$             12,380

$             10,223

$             28,301

$             23,845

Net income per share:

       Basic

$                 0.17

$                 0.17

$                 0.39

$                 0.41

       Diluted

$                 0.16

$                 0.17

$                 0.37

$                 0.40

Weighted average shares outstanding:

       Basic

73,116,746

59,101,972

73,099,258

57,969,954

       Diluted

77,404,466

61,232,212

77,025,990

60,196,116

 

Smart & Final Stores, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In Thousands, Except Share and Per Share Amounts)

 October 4,

2015 

December 28,

2014

 (Unaudited) 

Assets 

Current assets: 

Cash and cash equivalents 

$            122,300

$              106,847

Accounts receivable, less allowances of $809 and $787 at October 4, 2015 and December 28, 2014, respectively 

22,581

23,666

Inventories 

232,218

223,404

Prepaid expenses and other current assets 

15,428

26,532

Deferred income taxes 

22,500

22,419

Total current assets 

415,027

402,868

Property, plant, and equipment: 

Land 

10,940

11,165

Buildings and improvements 

20,441

23,938

Leasehold improvements 

222,664

176,114

Fixtures and equipment 

251,758

203,473

Construction in progress 

16,138

7,344

521,941

422,034

Less accumulated depreciation and amortization 

160,559

115,350

361,382

306,684

Capitalized software, net of accumulated amortization of $11,632 and $9,486 at October 4, 2015 and December 28, 2014, respectively 

10,775

10,403

Other intangible assets, net 

323,550

325,289

Goodwill 

611,242

611,242

Deferred financing costs, net 

4,496

5,894

Equity investment in joint venture 

12,355

11,924

Other assets 

49,951

54,988

Total assets 

$         1,788,778

$           1,729,292

Liabilities and stockholders' equity

Current liabilities: 

Accounts payable 

$            191,520

$              184,897

Accrued salaries and wages 

28,783

28,582

Accrued expenses 

82,733

72,667

Total current liabilities 

303,036

286,146

Long-term debt, less debt discount 

589,789

588,117

Deferred income taxes 

125,392

125,673

Postretirement and postemployment benefits 

120,400

127,004

Other long-term liabilities 

97,865

85,144

Commitments and contingencies 

Stockholders' equity: 

Preferred stock, $0.001 par value; 

Authorized shares – 10,000,000 

Issued and outstanding shares – none

Common stock, $0.001 par value; 

Authorized shares – 340,000,000

Issued and outstanding shares -  73,736,982 and 73,755,388 at October 4, 2015 and December 28, 2014, respectively

74

74

Additional paid-in capital 

499,823

489,550

Retained earnings

60,302

32,001

Accumulated other comprehensive loss

(7,903)

(4,417)

Total stockholders' equity 

552,296

517,208

Total liabilities and stockholders' equity 

$         1,788,778

$           1,729,292

 

Smart & Final Stores, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In Thousands)

 Forty Weeks Ended 

 October 4, 2015 

 October 5, 2014 

Operating activities 

Net income 

$                 28,301

$                 23,845

Adjustments to reconcile net income to net cash provided by operating activities: 

Depreciation 

28,982

27,107

Amortization 

22,688

21,886

Amortization of deferred financing costs and debt discount 

2,114

2,509

Share-based compensation

8,081

8,455

Excess tax benefits related to share-based payments

(275)

(730)

Deferred income taxes

1,442

(3,382)

Equity in earnings of joint venture 

(1,045)

(1,032)

(Gain) loss on disposal of property, plant, and equipment 

(38)

28

Asset impairment 

562

501

Loss on early extinguishment of debt

2,192

2,224

Changes in operating assets and liabilities: 

Accounts receivable, net 

1,085

(2,871)

Inventories

(8,814)

(1,540)

Prepaid expenses and other assets 

15,620

3,589

Accounts payable 

6,623

12,306

Accrued salaries and wages 

201

2,778

Other accrued liabilities 

6,835

4,752

Net cash provided by operating activities 

114,554

100,425

Investing activities 

Purchases of property, plant, and equipment 

(101,025)

(87,619)

Proceeds from sale of property, plant, and equipment 

8,103

33

Investment in capitalized software 

(3,254)

(2,065)

Purchase of intangible asset

(100)

Other 

(1,252)

(38)

Net cash used in investing activities 

(97,428)

(89,789)

Financing activities

Issuance of common stock in IPO

173,080

Issuance of common stock, other

79

Proceeds from exercise of stock options

196

450

Payment of minimum withholding taxes on net share settlement of stock option exercise and vested restricted stock

(694)

(2,667)

Fees paid in conjunction with debt financing

(1,236)

(200)

Payments on bank debt

(120,880)

Payments of public offering issuance costs

(214)

(4,611)

Excess tax benefits related to share-based payments

275

730

Contingent consideration related to acquisition of Smart & Final Holdings Corp.

(248)

Net cash (used in) provided by financing activities

(1,673)

45,733

Net increase in cash and cash equivalents

15,453

56,369

Cash and cash equivalents at beginning of period

106,847

53,699

Cash and cash equivalents at end of period

$               122,300

$               110,068

Cash paid during the period for:

Interest 

$                 22,407

$                 33,174

Income taxes

$                 10,229

$                 11,375

Non-cash investing and financing activities

Software development costs incurred but not paid

$                          –

$                        57

Construction in progress costs incurred but not paid

$                 16,147

$                 12,593

 

 Smart & Final Stores, Inc. and Subsidiaries 

 Segment Reporting 

 (Dollars in Thousands) 

 Smart & Final 

 Cash & Carry 

 Corporate / Other 

 Consolidated 

 Sixteen Weeks Ended October 4, 2015 

 Net sales 

$         940,168

$         305,895

$                          -

$     1,246,063

 Cost of sales, distribution and store occupancy 

794,004

262,131

2,689

1,058,824

 Operating and administrative expenses 

116,276

19,964

20,800

157,040

 Income (loss) from operations 

$           29,888

$           23,800

$               (23,489)

$          30,199

 Capital expenditures 

$           39,365

$             1,741

$                  1,149

$          42,255

 Sixteen Weeks Ended October 5, 2014 

 Net sales 

$         839,276

$         292,545

$                          -

$     1,131,821

 Cost of sales, distribution and store occupancy 

708,599

251,148

2,570

962,317

 Operating and administrative expenses 

102,688

18,495

19,495

140,678

 Income (loss) from operations 

$           27,989

$           22,902

$               (22,065)

$          28,826

 Capital expenditures 

$           38,535

$                803

$                  1,900

$          41,238

 Forty Weeks Ended October 4, 2015 

 Net sales 

$      2,256,357

$         716,997

$                          -

$     2,973,354

 Cost of sales, distribution and store occupancy 

1,898,841

616,646

6,880

2,522,367

 Operating and administrative expenses 

276,922

48,483

52,717

378,122

 Income (loss) from operations 

$           80,594

$           51,868

$               (59,597)

$          72,865

 Capital expenditures 

$           93,415

$             6,060

$                  4,804

$        104,279

 Forty Weeks Ended October 5, 2014 

 Net sales 

$      2,024,324

$         670,584

$                          -

$     2,694,908

 Cost of sales, distribution and store occupancy 

1,707,868

578,479

6,283

2,292,630

 Operating and administrative expenses 

243,651

44,324

46,552

334,527

 Income (loss) from operations 

$           72,805

$           47,781

$               (52,835)

$          67,751

 Capital expenditures 

$           83,595

$             1,184

$                  4,905

$          89,684

 

Non-GAAP Financial Measures

To supplement the Company's financial information presented in accordance with GAAP, the Company uses certain non-GAAP financial measures, namely adjusted net income, adjusted net income per share, adjusted net income per diluted share, EBITDA and Adjusted EBITDA to clarify and enhance understanding of its past performance. The Company defines adjusted net income as net income adjusted for the items set forth in the tables below. The Company defines adjusted net income per share as adjusted net income divided by the weighted average basic shares outstanding. The Company defines adjusted net income per diluted share as adjusted net income divided by the weighted average diluted shares outstanding. The Company defines EBITDA as net income before depreciation and amortization, interest expense and provision for income tax, and adjusted EBITDA as EBITDA adjusted for the items set forth in the tables below.

Use of these non-GAAP measures may differ from similar measures reported by other companies. Each of these non-GAAP measures has its limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of the Company's results as reported under GAAP.

The following tables present reconciliations of adjusted net income, EBITDA and adjusted EBITDA to net income, and adjusted net income per share and adjusted net income per diluted share to net income per share, for the sixteen-week and forty-week periods ended October 4, 2015 and October 5, 2014.

 

 Smart & Final Stores, Inc. and Subsidiaries 

 Reconciliation of EBITDA to Non-GAAP Adjusted EBITDA 

 (Unaudited) 

 (In Thousands) 

 Sixteen Weeks Ended 

 Forty Weeks Ended 

October 4, 2015

October 5, 2014

October 4, 2015

October 5, 2014

 Net income 

$             12,380

$             10,223

$             28,301

$             23,845

 Depreciation and amortization  

21,887

20,540

51,670

48,993

 Interest expense, net 

9,333

11,725

25,007

29,483

 Income tax provision 

8,624

4,972

18,410

13,231

 EBITDA 

52,224

47,460

123,388

115,552

 Adjustments to EBITDA 

 Transaction costs (a) 

-

1,169

936

1,639

 Net loss from closed stores and exit costs (b) 

638

491

2,012

1,461

 Loss from asset dispositions (c) 

55

271

558

506

 Share-based compensation expense (d) 

3,178

6,714

8,081

8,455

 Non-cash rent (e) 

1,801

1,573

3,078

4,151

 Pre-opening costs (f) 

1,764

1,123

5,174

3,099

 Loss on extinguishment of debt (g) 

-

2,224

2,192

2,224

 Other items (h) 

142

(3,952)

97

(2,280)

 Adjusted EBITDA 

$             59,802

$             57,073

$           145,516

$           134,807

 

 Smart & Final Stores, Inc. and Subsidiaries 

 Reconciliation of Net Income to Non-GAAP Adjusted Net Income 

 (Unaudited) 

 (In Thousands, Except Share and Per Share Amounts) 

 Sixteen Weeks Ended 

 Forty Weeks Ended 

October 4, 2015

October 5, 2014

October 4, 2015

October 5, 2014

 Net income 

$             12,380

$            10,223

$            28,301

$            23,845

 Income tax provision 

8,624

4,972

18,410

13,231

 Net income before income taxes 

21,004

15,195

46,711

37,076

 Adjustments to Net Income 

 Transaction costs (a) 

-

1,169

936

1,639

 Net loss from closed stores and exit costs (b) 

638

491

2,012

1,461

 Loss from asset dispositions (c) 

55

271

558

506

 Share-based compensation expense (d) 

3,178

6,714

8,081

8,455

 Non-cash rent (e) 

1,801

1,573

3,078

4,151

 Pre-opening costs (f) 

1,764

1,123

5,174

3,099

 Loss on extinguishment of debt (g) 

-

2,224

2,192

2,224

 Other items (h) 

142

(3,952)

97

(2,280)

 Adjusted income tax provision 

(11,651)

(9,908)

(27,289)

(22,015)

 Adjusted net income 

$             16,931

$            14,900

$            41,550

$            34,316

Adjusted Net Income Per Share

Net income per share - basic

$               0.17

$               0.17

$               0.39

$               0.41

Per share impact of net income adjustments

0.06

0.08

$               0.18

$               0.18

Adjusted net income per share - basic

$               0.23

$               0.25

$               0.57

$               0.59

Net income per share - diluted

$               0.16

$               0.17

$               0.37

$               0.40

Per share impact of net income adjustments

0.06

0.07

$               0.17

$               0.17

Adjusted net income per share - diluted

$               0.22

$               0.24

$               0.54

$               0.57

Weighted average shares - basic

73,116,746

59,101,972

73,099,258

57,969,954

Weighted average shares - fully diluted

77,404,466

61,232,212

77,025,990

60,196,116

(a)  Represents costs primarily associated with the Company's secondary public offering that were charged to expense in the forty weeks ended October 4, 2015 and the Company's initial public offering that were charged to expense in the sixteen and forty weeks ended October 5, 2014.

(b)  Represents costs associated with store closure and exit costs.

(c)  Represents non-cash loss associated with asset dispositions and impairment charges.

(d)  Represents expenses associated with the Company's equity-based incentive award program.

(e)  Represents non-cash component of recognized rent expense.

(f)   Represents new store and relocation opening costs consisting primarily of rent, utilities, distribution, store labor and advertising.

(g)  Represents loss on the early extinguishment of debt in the forty weeks ended October 4, 2015 in connection with an amendment to the Company's Term Loan Facility and the write-off of unamortized debt discount and deferred financing costs in the sixteen and forty weeks ended October 5, 2014 in connection with the early payment on the Company's Term Loan Facility.

(h)  Represents (i) severance costs in the sixteen-week and forty-week periods ended October 4, 2015 and October 5, 2014, (ii) death benefit income from a Company-owned life insurance policy for the sixteen-week and forty-week periods ended October 5, 2014, (iii) reversal of a reserve related to executive compensation for the sixteen-week and forty-week periods ended October 5, 2014, and (iv) consulting expenses related to strategic growth initiatives for the sixteen-week and forty-week periods ended October 5, 2014.

 

Logo - http://photos.prnewswire.com/prnh/20140929/149066

 

SOURCE Smart & Final Stores, Inc.



RELATED LINKS

http://www.smartandfinal.com