Albertsons Companies, Inc. Reports Third Quarter Fiscal 2020 Results
Raises Fiscal 2020 Outlook
Boise, ID - January 12, 2021
Albertsons Companies, Inc. (NYSE: ACI) (the "Company") today reported results for the third quarter of fiscal 2020, which ended December 5, 2020.
Third Quarter of Fiscal 2020 Highlights
•Identical sales growth of 12.3%
•Digital sales growth of 225%
•Net income per share of $0.20; Adjusted net income per share of $0.66
•Net income of $124 million; Adjusted net income of $387 million
•Adjusted EBITDA of $968 million, an increase of 53% compared to the third quarter last year
•Executed debt refinancing and announced paydown to drive an additional $25 million in annualized interest savings
"Our constant focus on our customers continued to drive strong growth and market share gains in the third quarter," said Vivek Sankaran, President & CEO. "It is clear that our strategy is working, and as we continue to execute on our strategic priorities, we believe we are well positioned to deliver sustainable growth over the long term. At the same time, we remain focused on delivering value to all stakeholders, including taking care of our customers, associates and the communities we serve as we continue to navigate through the pandemic."
Third Quarter of Fiscal 2020 Results
Sales and other revenue was $15.4 billion during the 12 weeks ended December 5, 2020 ("third quarter of fiscal 2020") compared to $14.1 billion during the 12 weeks ended November 30, 2019 ("third quarter of fiscal 2019"). The increase was driven by the Company's 12.3% growth in identical sales, partially offset by lower fuel sales. Identical sales benefited from the Company's 225% growth in digital sales.
Gross profit margin increased to 29.3% during the third quarter of fiscal 2020 compared to 28.3% during the third quarter of fiscal 2019. Excluding the impact of fuel, gross profit margin increased 25 basis points. The increase was primarily driven by continued improvements in shrink expense and sales leverage on advertising and supply chain costs, partially offset by expenses related to our growth in digital sales and select investments in price.
Selling and administrative expenses were 28.0% of sales during the third quarter of fiscal 2020 compared to 27.0% of sales for the third quarter of fiscal 2019. Excluding the impact of fuel, selling and administrative expenses as a percentage of sales increased 40 basis points. The increase in selling and administrative expenses was primarily attributable to the $285.7 million charge (pre-tax) related to the previously announced withdrawal from the United Food and Commercial Workers International Union ("UFCW") Union-Industry Pension Fund ("National Fund") and incremental COVID-19 expenses to safeguard associates and customers, partially offset by sales leverage driven by higher identical sales and continued focus on cost control.
Gain on property dispositions and impairment losses, net was $59.0 million during the third quarter of fiscal 2020 compared to $18.7 million during the third quarter of fiscal 2019.
The following information was filed by Albertsons Companies, Inc. (ACI) on Tuesday, January 12, 2021 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.