SpartanNash Company (SPTN) has reported an 8.15 percent rise in profit for the quarter ended Oct. 08, 2016. The company has earned $16.65 million, or $0.44 a share in the quarter, compared with $15.39 million, or $0.41 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $20.05 million, or $0.53 a share compared with $18.63 million or $0.49 a share, a year ago. Revenue during the quarter went up marginally by 1.39 percent to $1,800.08 million from $1,775.40 million in the previous year period. Gross margin for the quarter contracted 41 basis points over the previous year period to 14.18 percent. Total expenses were 98.34 percent of quarterly revenues, down from 98.35 percent for the same period last year. This has led to an improvement of 1 basis points in operating margin to 1.66 percent.
Operating income for the quarter was $29.87 million, compared with $29.22 million in the previous year period.
However, the adjusted operating income for the quarter stood at $35.10 million compared to $34.77 million in the prior year period. At the same time, adjusted operating margin contracted 1 basis points in the quarter to 1.95 percent from 1.96 percent in the last year period.
"We are pleased with our ability to overcome the continued challenging economic conditions and prolonged deflationary environment to deliver third quarter sales and earnings growth," stated Dennis Eidson, SpartanNash's chief executive officer. "These results reflect the strength of our strategy to provide innovative and impactful solutions for our food distribution and retail customers as we benefited from new customer supply agreements and our third consecutive quarter of improved retail comparable store sales trends. During the quarter, we continued to invest in our merchandising, pricing and promotional initiatives, including expanded produce and private brand product offerings, as well as the continued roll out of Open Acres™. We also celebrated the grand re-openings of our newly remodeled Omaha stores with encouraging results. In addition, we realized further benefits from our ongoing investments in our supply chain network."
For financial year 2016, SpartanNash Company projects diluted earnings per share to be in the range of $1.58 to $1.65. The company projects diluted earnings per share to be in the range of $2.09 to $2.16 on adjusted basis.
Operating cash flow drops significantly
SpartanNash Company has generated cash of $78.57 million from operating activities during the nine month period, down 39.50 percent or $51.30 million, when compared with the last year period. The company has spent $52.54 million cash to meet investing activities during the nine month period as against cash outgo of $71.50 million in the last year period.
The company has spent $21.94 million cash to carry out financing activities during the nine month period as against cash outgo of $47.49 million in the last year period.
Cash and cash equivalents stood at $26.40 million as on Oct. 08, 2016, up 210.20 percent or $17.89 million from $8.51 million on Oct. 10, 2015.
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