Albertsons Companies, LLC Reports Third Quarter Results
Boise, ID - January 16, 2018
Albertsons Companies, LLC (the "Company") today reported results for the third quarter of fiscal 2017, which ended December 2, 2017.
Third Quarter Fiscal 2017 Highlights and 2018 Outlook
Announced alliance with Instacart for same-day deliveries in as little as an hour
Initiated roll-out of Plated meal-kits in-store
Accelerated growth of eCommerce business, including expansion of 'Drive-Up and Go' options
Increased penetration in Own Brands by 62 basis points
Exceeded $1 billion in last twelve months "O Organics" sales for the first time
Acquired an equity interest in El Rancho, a Texas-based Hispanic specialty grocer
Increased registered households in Company loyalty programs by 23% since fiscal 2016
Record number of store reset activities focused on adding new and expanded product offerings
"We are very encouraged now that our identical store sales trends have turned positive in the fourth quarter of fiscal 2017, as our marketing and merchandising plans are taking hold, and prior year comparisons ease" said Bob Miller, Chairman and CEO. "We anticipate improvements to Adjusted EBITDA in fiscal 2018 as a result of $100 million in expected additional synergies from the Safeway acquisition as the SuperValu transition services agreement winds down, as well as from the implementation of $150 million of identified cost reduction initiatives. We believe these synergy and cost savings initiatives, together with continuing identical store sales momentum, will result in improvements to our Adjusted EBITDA in fiscal 2018, which we currently estimate to approximate $2.7 billion. With much of the Safeway integration behind us, we expect our capital expenditures for fiscal 2018 to be approximately $1.2 billion, which is a reduction of approximately $300 million from fiscal 2017. Though we are decreasing our capital expenditures, we will increase our investments in technology in fiscal 2018."
"We continue to accelerate the expansion of our eCommerce and digital offerings to serve our customers' needs, including our own home delivery service and 'Drive-Up and Go' pick up at store," added Mr. Miller. "The previously announced alliance with Instacart and our in-store roll-out of Plated meal-kits expand our capabilities further, allowing us to respond to our customers whenever and however they wish to purchase food. In addition, the acquisition of an equity interest in El Rancho expands our ability to serve the Hispanic community and positions El Rancho well for further growth."
Executive Management Changes
Today, we’re announcing some changes to the Company’s executive team. Wayne Denningham, President and Chief Operating Officer, will retire near the end of the fiscal year. Wayne’s contributions and service spanning over 40 years with the Company are greatly appreciated and we wish him well in retirement. In addition, the Company is pleased to announce the promotion of Susan Morris to Executive Vice President and Chief Operations Officer, who will report directly to Bob Miller and assume Wayne’s responsibilities over operations, distribution and manufacturing. Going forward, Bob Miller intends to be very involved in the Company’s operational and merchandising decisions. Susan has been with the Company for 32 years and has served in a variety of senior executive roles for the Company, including most recently as Executive Vice President of the West Region, and previously as Executive Vice President of the East Region, and prior to that as Division President of multiple divisions.
Separately, Bob Miller has signed a one-year extension to his employment agreement, which will now run through January 30, 2019.
The following information was filed by Albertsons Companies, Llc (ABS) on Tuesday, January 16, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.