Smart & Final StoreS (SFS) has reported 43.19 percent plunge in profit for the quarter ended Oct. 09, 2016. The company has earned $7.03 million, or $0.09 a share in the quarter, compared with $12.38 million, or $0.16 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $15.04 million, or $0.19 a share compared with $16.93 million or $0.22 a share, a year ago.
Revenue during the quarter grew 11.91 percent to $1,394.43 million from $1,246.06 million in the previous year period. Gross margin for the quarter contracted 47 basis points over the previous year period to 14.56 percent. Total expenses were 98.59 percent of quarterly revenues, up from 97.58 percent for the same period last year. That has resulted in a contraction of 102 basis points in operating margin to 1.41 percent.
Operating income for the quarter was $19.63 million, compared with $30.20 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $57.19 million compared with $59.80 million in the prior year period. At the same time, adjusted EBITDA margin contracted 70 basis points in the quarter to 4.10 percent from 4.80 percent in the last year period.
"Smart & Final Stores continues to execute our planned growth by expanding both Smart & Final Extra! and Cash & Carry banners," said David Hirz, president and chief executive officer. "Year-to-date, we’ve opened 33 new Smart & Final Extra! and Cash & Carry banner stores and relocated six Smart & Final legacy to new Extra! store locations. With four additional new stores and six legacy-to-Extra! store conversions planned in the fourth quarter, we are on track to deliver by year-end 15% annual new unit growth in the Smart & Final banner, and above historical average growth in the Cash & Carry banner. We continue to build upon our differentiated brand message and support growth in our two strong, well-positioned store banners."
For the fiscal year 2016, Smart & Final Stores projects revenue to grow in the range of 11.50 percent to 12 percent. It forecasts adjusted net income to be in the range of $45 million to $47 million. The company forecasts diluted earnings per share to be in the range of $0.57 to $0.59 on adjusted basis.
Operating cash flow declinesSmart & Final Stores has generated cash of $86.02 million from operating activities during the nine month period, down 24.91 percent or $28.54 million, when compared with the last year period. The company has spent $119.84 million cash to meet investing activities during the nine month period as against cash outgo of $97.43 million in the last year period. It has incurred net capital expenditure of $115.50 million on net basis during the nine month period, up 20.10 percent or $19.33 million from year ago period.
Cash flow from financing activities was $28.55 million for the nine month period as against cash outgo of $1.67 million in the last year period.
Cash and cash equivalents stood at stood at $54.04 million as at Oct. 09, 2016.
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