Research Desk Line-up: Village Super Market Post Earnings Coverage
LONDON, UK / ACCESSWIRE / October 24, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on SUPERVALU Inc. (NYSE: SVU), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=SVU, following the Company's release of its second quarter fiscal 2018 operating results on October 18, 2017. The grocery store operator outperformed top- and bottom-line expectations and provided guidance for the fiscal year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
Get more of our free earnings reports coverage from other constituents of the Grocery Stores industry. Pro-TD has currently selected Village Super Market, Inc. (NASDAQ: VLGEA) for due-diligence and potential coverage as the Company reported on October 06, 2017, its financial results for Q4 which ended on July 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on Village Super Market when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on SVU; also brushing on VLGEA. With the links below you can directly download the report of your stock of interest free of charge at:
SUPERVALU's Q2 FY18 net sales surged 35% to $3.80 billion compared to $2.81 billion in Q2 FY17. The Company's net sales surpassed Wall Street's estimates of $3.76 billion.
SUPERVALU's gross profit totaled $428 million, or 11.3%, for Q2 FY18 compared to Q2 FY17 gross profit of $396 million, or 14.1% of net sales, and included $1 million of store closure charges and costs. The decline in gross profit rate was primarily due to the change in business segment mix, with the Wholesale segment representing a larger portion of total sales and gross profit.
SUPERVALU's selling and administrative (S&A) expenses were $435 million in Q2 FY18 and included an asset impairment charge of $42 million and merger and integration costs of $23 million. On an adjusted basis, the Company's selling and administrative expenses were $370 million, or 9.7% of net sales for the reported quarter. SUPERVALU's S&A expenses were $338 million in Q2 FY17 and included a $9 million fee received from a supply agreement termination, partially offset by $3 million of store closure charges and costs.
During Q2 FY18, SUPERVALU's net loss from continuing operations was $25 million, or $0.65 per diluted share. The Company's reported quarter results included a $27 million after-tax asset impairment charge and $16 million of after-tax merger and integration costs. SUPERVALU's net earnings from continuing operations for Q2 FY17 were $12 million, or $0.81 per diluted share. On an adjusted basis, the Company's net earnings from continuing operations were $18 million, or $0.46 per diluted share, for the reported quarter compared to net earnings from continuing operations of $9 million, or $0.21 per diluted share, for the year-ago same period.
SUPERVALU's Segment Results
During Q2 FY18, the Wholesale division's net sales were $2.74 billion, up 58% compared to $1.73 billion in Q2 FY17. The net sales increase was primarily due to sales from the acquired Unified Grocers business, sales to new customers, and increased sales to new stores operated by existing customers. The Company's Wholesale operating earnings in the reported quarter were $61 million, or 2.2% of net sales, compared to operating earnings of $58 million for the year-ago same period and included a fee received from a supply agreement termination of $9 million.
During Q2 FY18, Retail net sales were $1.02 billion compared to $1.03 billion, reflecting a decrease of 1.1%. The net sales decrease reflected identical store sales of negative 3.5% and closed stores, partially offset by sales from acquired and new stores. The Company's Retail operating loss was $58 million in the reported quarter, and included a $42 million asset impairment charge, compared to Retail operating loss of $12 million for Q2 FY17 which included $4 million of store closure charges and costs. On an adjusted basis, the Company's Retail operating loss in the reported quarter was $16 million, or negative 1.5% of net sales, compared to adjusted operating loss of $8 million, or 0.8% of net sales.
During Q2 FY18, the Company's fees earned under services agreements were $40 million compared to $41 million in Q2 FY17.
SUPERVALU's fiscal 2018 year-to-date net cash flows provided by operating activities of continuing operations were $116 million compared to $208 million in the year-ago corresponding period, primarily due to cash utilized for working capital and other assets and liabilities to support higher Wholesale sales volumes and lower cash generated from earnings.
The Company's fiscal 2018 year-to-date net cash flows used in investing activities of continuing operations were $216 million for the reported quarter compared to $69 million in the year-earlier same quarter, primarily due to the acquisition of the Unified Grocers business and a distribution center.
Fiscal 2018 Outlook
SUPERVALU is forecasting net earnings from continuing operations to be in the range of $31 million to $50 million. The Company's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA), including the contribution from Unified Grocers, is expected to be in the range of $475 million to $495 million.
At the close of trading session on Monday, October 23, 2017, SUPERVALU's stock price rose 1.26% to end the day at $15.22. A total volume of 2.01 million shares were exchanged during the session, which was above the 3-month average volume of 931.44 thousand shares. At Monday's closing price, the stock's net capitalization stands at $610.63 million.
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