SpartanNash — Q2 2024 Earnings Presentation
19 slides from SpartanNash's earnings presentation, Aug 15, 2024
Slide 1: Second Quarter 2024 Supplemental Financial Information
Second Quarter 2024 Supplemental Financial Information August 15, 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
Nasdaq: SPTN A Complementary Intersection Between Two Highly Synergistic Segments Committed to Shareholder Value Creation WHOLESALE RETAIL $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 Commissar
Slide 4: Second Quarter 2024 Highlights
Second Quarter 2024 Highlights $2.23 Billion +59 bps Net Sales Gross Margin -3.5% vs. Q2’23 vs. Q2’23 $11.5 Million +166.0% Net Earnings Cash from Operating -41.0% vs. Q2’23 Activities vs. 1H’23 $64.5 Million $30.4 Million Adjusted EBITDA(1) Returned to -2.4% vs. Q2’23 Shareholders(2) YTD (1) A reco
Slide 5: Reaffirms Fiscal Year 2024 Guidance
Reaffirms Fiscal Year 2024 Guidance Net Sales in Billions Adjusted EBITDA in Millions +2.0% at -1.3% at midpoint $9.7 midpoint $255 to $9.5 to $270 $9.7 $257 Fiscal 2022(1) Actual Fiscal 2023 2024 Guidance Fiscal 2023 2024 Guidance Actual Range Actual(1) Range(2) (1) A reconciliation of net earnings
Slide 6: Progress on Long-Term Plan
Progress on Long-Term Plan
Slide 7: Turnaround Plan is Driving Results
Turnaround Plan is Driving Results +9% $300+(4) Adjusted EBITDA(1) $ in millions CAGR $262.5(3)(4) -5% $257 CAGR $243 $231(2) $236 $230 $231 $235(2) $214 $209 $178 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E 2025E (1) See the Appendix for reconciliations of fiscal 2014 to 2023 non-GAAP m
Slide 8: Delivering on Strategic Commitments
Delivering on Strategic Commitments(1) Plan Additional Upside Headwinds Transformational Initiatives Offsetting 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 – FY2
Slide 9: 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 10: 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 11: 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 12: Appendix
Appendix
Slide 13: Balanced Approach to Capital Allocation
Balanced Approach to Capital Allocation Net Long-Term Debt(1) / Adjusted EBITDA(1) Debt Repayment Capital Expenditures and IT Capital(1) Dividend & Share Repurchase $ millions $127 $137 2.3x 2.2x Capital Expenditures & IT Capital $102 Acquisitions 2.0x FYE 2022 FYE 2023 LTM Q2'24 FY 2022 FY 2023 LTM
Slide 14: 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 15: Net Earnings to Adjusted EBITDA Reconciliation
Net Earnings to Adjusted EBITDA Reconciliation © Copyright 2024 SpartanNash. 15 15
Slide 16: Net Earnings (Loss) to Adjusted EBITDA Reconciliation
Net Earnings (Loss) to Adjusted EBITDA Reconciliation © Copyright 2024 SpartanNash. 16 16
Slide 17: 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. 17 17
Slide 18: 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 19: 850 76th Street PO Box 8700 Grand Rapids, MI 49518
850 76th Street PO Box 8700 Grand Rapids, MI 49518 [email protected] © Copyright 2024 SpartanNash.