SpartanNash — Q3 2024 Earnings Presentation
21 slides from SpartanNash's earnings presentation, Nov 7, 2024
Slide 1: Third Quarter 2024 Supplemental Financial Information
Third Quarter 2024 Supplemental Financial Information November 7, 2024 1
Slide 2: General Disclaimer
General Disclaimer Forward-Looking Statements The matters discussed in this presentation, in the Company’s press releases, and in the Company’s website-accessible conference calls with analysts include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as a
Slide 3: A Complementary Intersection Between Two Highly Synergistic Segments
A Complementary Intersection Between Nasdaq: SPTN Two Highly Synergistic Segments Committed to Maximizing WHOLESALE RETAIL Shareholder Value $6.9B $2.8B FY23 Net Sales FY23 Net Sales Creating Food Serving Independent Grocers Solutions Large National Accounts with Market-Leading U.S. Military Commiss
Slide 4: Third Quarter 2024 Highlights
Third Quarter 2024 Highlights(1) $2.25 Billion +1.9% Net Sales Retail Segment Net Sales a decrease of 0.6% Supported by Inorganic Growth $10.9 Million 11 Quarters Net Earnings of Growth in a decrease of 1.9% Military Net Sales Compared to PYQs $60.5 Million $37.7 Million Adjusted EBITDA(2) Returned
Slide 5: Updates Fiscal Year 2024 Guidance
Updates Fiscal Year 2024 Guidance Net Sales Adjusted EBITDA Adjusted in Billions in Millions(1) EPS(1) $9.7 $255 to $9.5 to $9.5 to $2.18 $1.85 to $257 $270 $9.7 $9.7 $252 to $2.10 $1.85 to $257 $1.95 Fiscal 2023 Previous Current Fiscal 2023 Previous Current Fiscal 2023 Previous Current Actual Guida
Slide 6: Progress on Long-Term Plan
Progress on Long-Term Plan
Slide 7: Turnaround Plan is Driving Results
Turnaround Plan is Driving Results Adjusted EBITDA(1) $ in millions +MSD(3)(4) $252 - 257(3)(4) $257 +~7% CAGR From Fiscal 2019 – 2025E -5% CAGR $243 From Fiscal 2014 - 2019 $231(2) $236 $235(2) $230 $231 $214 $209 $178 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E 2025E (1) See the Append
Slide 8: Delivering on Strategic Margin Commitments
Delivering on Strategic Margin Commitments(1) Plan Upside Transformational Initiatives Offsetting Some Additional Headwinds $50mm - $125mm - $130mm - $140mm $60mm $150mm Expected Gross Benefits Actualized by End of FY24 $55mm $40mm - $25mm $55mm FY22 FY23 FY24E FY25E FY22 – FY25E FY22 – FY25E FY22 –
Slide 9: Disciplined M&A Framework
Disciplined M&A Framework Fresh Encounter Inc.(1) 49-store chain with locations in Ohio, Indiana and Kentucky Markham Enterprises Inc.(2) three-store chain of convenience stores and fuel distributor in mid-Michigan (1) Announced on Oct. 14, 2024, and expected to close in November 2024. (2) Announced
Slide 10: Accelerating Capabilities in Marketing and Merchandising
Accelerating Capabilities in Marketing and Merchandising Enhanced Category Planning* OwnBrands* Promotional Effectiveness* E-Commerce Key Simplified, Better Assortment* Capabilities Loyalty/Personalization* Pricing* AI/AA Capabilities Go-to-Market Plan *Created the foundation for the Customer Value
Slide 11: Pilots Customer Value Proposition in Retail Segment
Pilots Customer Value Proposition in Retail Segment Market fresh Open bakery A dedicated Improved $20 healthy buys at new and expanded value wall competitive and quick lower prices deli with fresh, showcasing pricing based meal kits with fresh-cut grab-and-go market-disrupting on analytics designed
Slide 12: Enhancing Shopper Experience, Driven by Insights
Enhancing Shopper Experience, Driven by Insights Creating Engaging Partnering with Brands Broadening Local Digital Experiences on Digital Promotions Partnerships Personalized Value Differentiated Amplifying Convenience through Loyalty Offerings OwnBrands Portfolio & Indulgence © Copyright 2024 Spart
Slide 13: Appendix
Appendix
Slide 14: Balanced Approach to Capital Allocation
Balanced Approach to Capital Allocation Debt Repayment Capital Expenditures and IT Capital(1) Net Long-Term Debt(1) / Adjusted EBITDA(1) Dividend & Share Repurchase $ millions 2.4x $127 $143 2.3x Capital Expenditures & IT Capital $102 2.0x Acquisitions FYE 2022 FYE 2023 LTM Q3'24 FY 2022 FY 2023 LTM
Slide 15: Key Performance Indicator Definitions
Key Performance Indicator Definitions 90-Day New Hire Retention Rate: New hires who remain employed after 90 days from their respective start dates divided by the total new hires. Merchandising Transformation Benefits: Gross benefits (before consideration of macroeconomic headwinds) generated from i
Slide 16: Net Earnings to Adjusted EBITDA Reconciliation
Net Earnings to Adjusted EBITDA Reconciliation © Copyright 2024 SpartanNash. 16 16
Slide 17: Net Earnings to Adjusted EPS Reconciliation
Net Earnings to Adjusted EPS Reconciliation (a) The income tax effect on adjustments is computed by applying the applicable tax rate to the adjustments. © Copyright 2024 SpartanNash. 17 17
Slide 18: Net Earnings (Loss) to Adjusted EBITDA Reconciliation
Net Earnings (Loss) to Adjusted EBITDA Reconciliation © Copyright 2024 SpartanNash. 18 18
Slide 19: Long-Term Debt and Finance Lease Obligations to Net Long-Term Debt Reconciliation
Long-Term Debt and Finance Lease Obligations to Net Long-Term Debt Reconciliation © Copyright 2024 SpartanNash. 19 19
Slide 20: Purchases of Property and Equipment to Capital Expenditures and IT Capital Reconciliation
Purchases of Property and Equipment to Capital Expenditures and IT Capital Reconciliation Notes: Capital expenditures and IT capital is a non-GAAP financial measure calculated by adding spending related to the development of cloud computing applications to capital expenditures, the most directly com
Slide 21: 850 76th Street
850 76th Street PO Box 8700 Grand Rapids, MI 49518 [email protected] © Copyright 2024 SpartanNash.