Albertsons Companies(ACI)2024-07-23 12:31Sales Performance - Identical sales increased by 1.4% to 24.1 billion in Q1 FY2023[3] - Digital sales surged by 23% year-over-year, contributing to the overall sales growth[2] Income and Earnings - Net income for Q1 FY2024 was 0.41 per share, down from 0.72 per share in Q1 FY2023[7] - Adjusted net income decreased to 0.66 per share, compared to 0.93 per share in the prior year[7] - Net income for the 16 weeks ended June 15, 2024, was 417.2 million for the same period last year[26] - Adjusted net income for the 16 weeks ended June 15, 2024, was 545.7 million in the previous year[29] - Net income decreased from 1,119.5 million year-over-year, a decline of approximately 22.6%[39] EBITDA and Margins - Adjusted EBITDA for Q1 FY2024 was 1,318.5 million, or 5.5% in Q1 FY2023[7] - Adjusted EBITDA for the same period was 1,318.5 million year-over-year[31] - Adjusted EBITDA decreased from 4,183.1 million year-over-year, a decline of approximately 8.6%[39] Expenses - Selling and administrative expenses rose to 25.9% of net sales in Q1 FY2024, up from 25.0% in Q1 FY2023, primarily due to increased operating expenses[5] - Selling and administrative expenses increased from 12.4 million year-over-year[35] - Interest expense increased from 482.9 million year-over-year[39] - Merger-related costs increased significantly from 225.8 million year-over-year[39] Cash Flow and Assets - Net cash provided by operating activities increased to 838.3 million in the prior year, reflecting a growth of 14.6%[26] - Cash and cash equivalents at the end of the period increased to 233.2 million, a rise of 26.6%[26] - Cash and cash equivalents increased from 291.1 million year-over-year[38] Liabilities and Equity - Total current assets decreased to 6,287.5 million, a decline of 1.3%[24] - Total liabilities decreased to 23,473.1 million, a reduction of 1.3%[24] - Total stockholders' equity increased to 2,747.5 million, an increase of 6.0%[24] - Total debt decreased from 7,857.4 million year-over-year[38] - Payments on long-term borrowings decreased to 500.2 million, a reduction of 60%[26] Other Financial Metrics - Gross margin rate increased to 27.8% in Q1 FY2024 from 27.7% in Q1 FY2023, although it decreased by 22 basis points when excluding fuel and LIFO expenses[4] - The company reported a net loss on property dispositions of 27.6 million in Q1 FY2023[5] - The company is facing headwinds in FY2024 related to investments in associate wages and benefits, and an increasing mix of lower-margin pharmacy and digital businesses[2] - Miscellaneous adjustments totaled (2.4) million in the previous year[35] - LIFO expense decreased from 32.6 million year-over-year[39] - Total Net Debt Ratio increased slightly from 1.79 to 1.81 year-over-year[38]