SpartanNash Announces Fourth Quarter and Fiscal 2024 Results

Growth and Cost Savings Contributed Significantly to Fourth Quarter Profitability and Cash Flow Building on Year-End Momentum, Company Provides Robust Fiscal 2025 Outlook , /PRNewswire/ -- Food solutions company SpartanNash (the "Company") (Nasdaq: SPTN) today reported financial results for its 12-week fourth quarter and 52-week fiscal year ended Dec. 28, 2024. "I am incredibly proud of the progress the team made on our strategic plan in 2024, achieving our third consecutive year of record adjusted EBITDA, bolstered by the delivery of our margin-enhancing programs a year ahead of schedule," said SpartanNash President and CEO Tony Sarsam. "We are energized by the momentum going into 2025, especially as we integrate the recently acquired grocery and c-store businesses – Fresh Encounter and Markham – into our retail portfolio. We are also investing into organic growth, fueled by a continued focus on our transformational initiatives, which are expected to further drive results, capture additional cost savings, enhance margin, and maximize long-term shareholder value." Fourth Quarter Fiscal 2024 Highlights(1) Net sales increased 0.7% to $2.26 billion, driven by an increase in volume in the Retail segment, partially offset by lower volume in the Wholesale segment. Wholesale segment net sales decreased 2.1% to $1.56 billion primarily due to reduced case volumes in both the independent retailers and national accounts customer channels. Retail segment net sales increased 7.7% to $697.1 million, while comparable store sales were down 0.7%. Incremental sales from stores acquired in fiscal 2024 more than offset lower consumer demand trends. Net loss of $1.04 per diluted share, compared to net earnings of $0.30 per diluted share. The decrease included the write-off of $45.7 million of goodwill within the Retail segment. Adjusted EPS(2) of $0.42, compared to $0.35. Adjusted EBITDA(3) of $58.6 million, compared to $53.6 million. These increases were driven by higher gross margin rates in both segments, including benefits from the merchandising transformation, and contributions from recently acquired retail stores. The increase was partially offset by lower case volumes within the Wholesale segment, as well as higher corporate administrative expenses. These measures exclude, among other items, restructuring and asset impairment charges and the impact of the LIFO provision. Fiscal 2024 Highlights(4) Net sales decreased 1.9% to $9.55 billion. Wholesale segment net sales decreased 3.0% to $6.71 billion. Retail segment net sales increased 1.1% to $2.84 billion, while comparable store sales decreased 1.7%. Net earnings of $0.01 per diluted share decreased compared to $1.50 per diluted share. Adjusted EPS(2) of $2.03 decreased from $2.18. Adjusted EBITDA(3) of $258.5 million increased from $257.4 million. Cash generated from operating activities of $205.9 million compared to $89.3 million. The 130.5% increase in cash from operating activities is due primarily to working capital improvements. Net long-term debt(5) to adjusted EBITDA(5) ratio of 2.8x increased from 2.4x at the end of the third quarter, due to inorganic growth investments in the fourth quarter. Capital expenditures and IT capital(6) of $144.4 million compared to $127.4 million. Returned $45.0 million to shareholders through $15.1 million in share repurchases and $29.9 million in dividends. (1) All comparisons are for the fourth quarter of 2024 compared with the fourth quarter of 2023, unless otherwise noted. (2) A reconciliation of net (loss) earnings to adjusted earnings from continuing operations, as well as per diluted share ("adjusted EPS"), a non-GAAP financial measure, is provided in Table 3. (3) A reconciliation of net (loss) earnings to adjusted EBITDA, a non-GAAP financial measure, is provided in Table 2. (4) All comparisons are for the fiscal year 2024 compared with the fiscal year 2023, unless otherwise noted. (5) A reconciliation of long-term debt and finance lease obligations to net long-term debt and Net Earnings to Adjusted EBITDA, non-GAAP financial measures, are provided in Table 4. (6) A reconciliation of purchases of property and equipment to capital expenditures and IT capital, a non-GAAP financial measure, is provided in Table 5. Fiscal 2025 Outlook The following table provides the Company's guidance for fiscal 2025: Fiscal 2024 Fiscal 2025 Outlook 52 Weeks 53 Weeks (In millions, except adjusted EPS(2)) Actual Low High Total net sales $ 9,549 $ 9,800 $ 10,000 Adjusted EBITDA(3) $ 258 $ 263 $ 278 Adjusted EPS(2) $ 2.03 $ 1.60 $ 1.85 Capital expenditures and IT capital(6) $ 144 $ 150 $ 165 Guidance incorporates both the investments and benefits from the Company's long-term strategic initiatives, including all transformational programs and tuck-in acquisitions. The adjusted EPS guidance also reflects an approximate $0.30 impact due to an increase in non-cash expenses primarily depreciation and amortization, as well as incremental interest costs associated with recent acquisitions and capital investments. The Company estimates that the 53rd week will contribute net sales of $0.2 billion, adjusted EBITDA of $4.0 million and adjusted EPS of $0.06. Conference Call & Supplemental Earnings Presentation The Company will host a conference call to discuss its quarterly results with additional comments and details on Wednesday, Feb. 12, 2025, at 8:30 a.m. ET. There will also be a simultaneous, live webcast made available on SpartanNash's website at corporate.spartannash.com/events under the "Investors" section and will remain archived on the Company's website through Wednesday, Feb. 26, 2025. A supplemental quarterly earnings presentation will also be available on the Company's website at corporate.spartannash.com/investor-presentations. About SpartanNash SpartanNash (Nasdaq: SPTN) is a food solutions company that delivers the ingredients for a better life. Committed to fostering a People First culture, the SpartanNash family of Associates is 20,000 strong. SpartanNash operates two complementary business segments – food wholesale and grocery retail. Its global supply chain network serves wholesale customers that include independent and chain grocers, national retail brands, e-commerce platforms, and U.S. military commissaries and exchanges. The Company distributes products for every aisle in the grocery store, from fresh produce to household goods to its OwnBrands, which include the Our Family® portfolio of products. On the retail side, SpartanNash operates nearly 200 brick-and-mortar grocery stores, primarily under the banners of Family Fare, Martin's Super Markets and D&W Fresh Market, in addition to dozens of pharmacies and fuel centers with convenience stores. Leveraging insights and solutions across its segments, SpartanNash offers a full suite of support services for independent grocers. For more information, visit spartannash.com. Forward-Looking Statements The matters discussed in this press release and in the Company's website-accessible conference calls with analysts and investor presentations include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"), about the plans, strategies, objectives, goals or expectations of the Company. These forward-looking statements may be identifiable by words or phrases indicating that the Company or management "expects," "projects," "anticipates," "plans," "believes," "intends," or "estimates," or that a particular occurrence or event "may," "could," "should," "will" or "will likely" result, occur or be pursued or "continue" in the future, that the "outlook," "trend," "guidance" or "target" is toward a particular result or occurrence, that a development is an "opportunity," "priority," "strategy," "focus," that the Company is "positioned" for a particular result, or similarly stated expectations. Undue reliance should not be placed on these forward-looking statements, which speak only as of the date made. Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which, with respect to future business decisions, are subject to change. These uncertainties and contingencies may affect actual results and could cause actual results to differ materially. These risks and uncertainties include the Company's ability to compete in an extremely competitive industry; the Company's dependence on certain major customers; the Company's ability to implement its growth strategy and transformation initiatives; the Company's ability to implement its growth strategy through acquisitions and successfully integrate acquired businesses; disruptions to the Company's information security network, including security breaches and cyber-attacks; impacts to the availability and performance of the Company's information technology systems; changes in relationships with the Company's vendor base; changes in product availability and product pricing from vendors; macroeconomic uncertainty, including rising inflation, potential economic recession, and increasing interest rates; difficulty attracting and retaining well-qualified Associates and effectively managing increased labor costs; failure to successfully retain or manage transitions with executive leaders and other key personnel; changes in the geopolitical conditions; impairment charges for goodwill or other long-lived assets; impacts to the Company's business and reputation due to an increasing focus on environmental, social and governance matters; customers to whom the Company extends credit or for whom the Company guarantees loans may fail to repay the Company; disruptions associated with severe weather conditions and natural disasters, including effects from climate change; disruptions associated with disease outbreaks; the Company's ability to manage its private brand program for U.S. military commissaries, including the termination of the program or not achieving the desired results; the Company's level of indebtedness; interest rate fluctuations; the Company's ability to service its debt and to comply with debt covenants; changes in government regulations; labor relations issues; changes in the military commissary system, including its supply chain, or in the level of governmental funding; product recalls and other product-related safety concerns; cost increases related to multi-employer pension plans; and other risks and uncertainties listed under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's most recent Annual Report on Form 10-K and in subsequent filings with the Securities and Exchange Commission. Additional risks and uncertainties not currently known to the Company or that the Company currently believes are immaterial also may impair its business, operations, liquidity, financial condition and prospects. The Company undertakes no obligation to update or revise its forward-looking statements to reflect developments that occur or information obtained after the date of this press release. INVESTOR CONTACT:Kayleigh CampbellHead of Investor Relations[email protected] MEDIA CONTACT: Adrienne Chance SVP and Chief Communications Officer[email protected] SPARTANNASH COMPANY AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF (LOSS) EARNINGS(Unaudited) 12 Weeks Ended 52 Weeks Ended December 28, December 30, December 28, December 30, (In thousands, except per share amounts) 2024 2023 2024 2023 Net sales $ 2,261,624 $ 2,245,183 $ 9,549,324 $ 9,729,219 Cost of sales 1,897,122 1,906,214 8,036,826 8,243,663 Gross profit 364,502 338,969 1,512,498 1,485,556 Operating expenses Selling, general and administrative 335,466 306,451 1,381,317 1,366,238 Acquisition and integration, net (99) 1,157 3,113 3,416 Goodwill impairment 45,716 — 45,716 — Restructuring and asset impairment, net 11,119 7,819 28,391 9,190 Total operating expenses 392,202 315,427 1,458,537 1,378,844 Operating (loss) earnings (27,700) 23,542 53,961 106,712 Other expenses and (income) Interest expense, net 10,884 9,669 44,827 39,887 Other, net (77) (790) (1,891) (3,300) Total other expenses, net 10,807 8,879 42,936 36,587 (Loss) earnings before income taxes (38,507) 14,663 11,025 70,125 Income tax (benefit) expense (3,426) 4,358 10,726 17,888 Net (loss) earnings $ (35,081) $ 10,305 $ 299 $ 52,237 Net (loss) earnings per basic common share $ (1.04) $ 0.30 $ 0.01 $ 1.53 Net (loss) earnings per diluted common share $ (1.04) $ 0.30 $ 0.01 $ 1.50 Weighted average shares outstanding: Basic 33,609 34,039 33,793 34,211 Diluted 33,609 34,670 34,205 34,901 SPARTANNASH COMPANY AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited) December 28, December 30, (In thousands) 2024 2023 Assets Current assets Cash and cash equivalents $ 21,570 $ 17,964 Accounts and notes receivable, net 448,887 421,859 Inventories, net 546,312 575,226 Prepaid expenses and other current assets 75,042 62,440 Total current assets 1,091,811 1,077,489 Property and equipment, net 779,984 649,071 Goodwill 181,035 182,160 Intangible assets, net 117,821 101,535 Operating lease assets 327,211 242,146 Other assets, net 104,434 103,174 Total assets $ 2,602,296 $ 2,355,575 Liabilities and Shareholders' Equity Current liabilities Accounts payable $ 485,017 $ 473,419 Accrued payroll and benefits 85,829 78,076 Other accrued expenses 61,993 57,609 Current portion of operating lease liabilities 49,562 41,979 Current portion of long-term debt and finance lease liabilities 12,838 8,813 Total current liabilities 695,239 659,896 Long-term liabilities Deferred income taxes 91,010 73,904 Operating lease liabilities 305,051 226,118 Other long-term liabilities 26,537 28,808 Long-term debt and finance lease liabilities 740,969 588,667 Total long-term liabilities 1,163,567 917,497 Commitments and contingencies Shareholders' equity Common stock, voting, no par value; 100,000 shares authorized; 33,752 and 34,610 shares outstanding 454,751 460,299 Preferred stock, no par value, 10,000 shares authorized; no shares outstanding — — Accumulated other comprehensive income 1,337 796 Retained earnings 287,402 317,087 Total shareholders' equity 743,490 778,182 Total liabilities and shareholders' equity $ 2,602,296 $ 2,355,575 SPARTANNASH COMPANY AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) 52 Weeks Ended (In thousands) December 28, 2024 December 30, 2023 Cash flow activities Net cash provided by operating activities $ 205,877 $ 89,327 Net cash used in investing activities (247,025) (116,517) Net cash provided by financing activities 44,754 16,068 Net increase (decrease) in cash and cash equivalents 3,606 (11,122) Cash and cash equivalents at beginning of the period 17,964 29,086 Cash and cash equivalents at end of the period $ 21,570 $ 17,964 SPARTANNASH COMPANY AND SUBSIDIARIESSUPPLEMENTAL FINANCIAL DATATable 1: Sales and Operating Earnings (Loss) by Segment(Unaudited) 12 Weeks Ended 52 Weeks Ended (In thousands) December 28, 2024 December 30, 2023 December 28, 2024 December 30, 2023 Wholesale Segment: Net sales $ 1,564,574 69.2 % $ 1,598,169 71.2 % $ 6,709,305 70.3 % $ 6,919,217 71.1 % Operating earnings 18,300 21,681 97,423 87,701 Retail Segment: Net sales 697,050 30.8 % 647,014 28.8 % 2,840,019 29.7 % 2,810,002 28.9 % Operating (loss) earnings (46,000) 1,861 (43,462) 19,011 Total: Net sales $ 2,261,624 100.0 % $ 2,245,183 100.0 % $ 9,549,324 100.0 % $ 9,729,219 100.0 % Operating (loss) earnings (27,700) 23,542 53,961 106,712 Non-GAAP Financial Measures In addition to reporting financial results in accordance with GAAP, the Company also provides information regarding adjusted earnings from continuing operations, as well as per diluted share ("adjusted EPS"), net long-term debt, capital expenditures and IT capital, and adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA"). These are non-GAAP financial measures, as defined below, and are used by management to allocate resources, assess performance against its peers and evaluate overall performance. The Company believes these measures provide useful information for both management and its investors. The Company believes these non-GAAP measures are useful to investors because they provide additional understanding of the trends and special circumstances that affect its business. These measures provide useful supplemental information that helps investors to establish a basis for expected performance and the ability to evaluate actual results against that expectation. The measures, when considered in connection with GAAP results, can be used to assess the overall performance of the Company as well as assess the Company's performance against its peers. These measures are also used as a basis for certain compensation programs sponsored by the Company. In addition, securities analysts, fund managers and other shareholders and stakeholders that communicate with the Company request its financial results in these adjusted formats. Current year adjusted earnings from continuing operations, and adjusted EBITDA exclude, among other items, LIFO expense, organizational realignment, severance associated with cost reduction initiatives, a non-routine settlement gain with an insurance company related to a legal matter from a previously closed operation, operating and non-operating costs associated with the postretirement plan amendment and settlement and a non-operating benefit associated with a pension refund from an annuity provider. Current year organizational realignment includes consulting and severance costs associated with the Company's change in its go-to-market strategy as part of its long-term plan, which relates to the reorganization of certain functions. Costs related to the postretirement plan amendment and settlement include operating and non-operating expenses associated with recognition of plan settlement losses and amortization of the prior service credit related to the amendment of the retiree medical plan, which are adjusted out of adjusted earnings from continuing operations. Postretirement plan amendment and settlement costs also include operating expenses related to payroll taxes which are adjusted out of all non-GAAP financial measures. The pension refund from an annuity provider is related to a terminated pension plan and is a non-operating benefit which is adjusted out of adjusted earnings from continuing operations. Prior year adjusted earnings from continuing operations, and adjusted EBITDA exclude, among other items, LIFO expense, organizational realignment, severance associated with cost reduction initiatives and a non-routine settlement related to a legal matter resulting from a previously closed operation and operating and non-operating costs associated with the postretirement plan amendment and settlement. Each of these items are considered "non-operational" or "non-core" in nature. The Company is unable to provide a full reconciliation of the GAAP to non-GAAP measures used in the Fiscal 2025 Outlook section of this press release without unreasonable effort because it is not possible to predict certain adjustment items with a reasonable degree of certainty since they are not yet known or quantifiable, and do not relate to the Company's normal operating activities. These adjustments may include, among other items, restructuring and asset impairment activity, acquisition and integration costs, severance, organizational realignment costs, and the impact of adjustments to the LIFO inventory reserve. This information is dependent upon future events, which may be outside of the Company's control and could have a significant impact on its GAAP financial results for fiscal 2025. Table 2: Reconciliation of Net (Loss) Earnings to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)(A Non-GAAP Financial Measure)(Unaudited) 12 Weeks Ended 52 Weeks Ended (In thousands) December 28, 2024 December 30, 2023 December 28, 2024 December 30, 2023 Net (loss) earnings $ (35,081) $ 10,305 $ 299 $ 52,237 Income tax (benefit) expense (3,426) 4,358 10,726 17,888 Other expenses, net 10,807 8,879 42,936 36,587 Operating (loss) earnings (27,700) 23,542 53,961 106,712 Adjustments: LIFO expense (benefit) 121 (6,341) 5,167 16,104 Depreciation and amortization 25,265 23,394 103,412 98,639 Acquisition and integration, net (99) 1,157 3,113 3,416 Restructuring and goodwill / asset impairment, net 56,835 7,819 74,107 9,190 Cloud computing amortization 1,979 1,349 7,585 5,034 Organizational realignment, net 842 529 2,757 5,239 Severance associated with cost reduction initiatives 117 7 537 318 Stock-based compensation 2,604 2,463 10,743 12,536 Stock warrant 168 280 868 1,559 Non-cash rent (398) (505) (2,679) (2,599) (Gain) loss on disposal of assets (236) (45) (284) 259 Legal settlement (900) — (900) 900 Postretirement plan amendment and settlement — — 99 94 Adjusted EBITDA $ 58,598 $ 53,649 $ 258,486 $ 257,401 Wholesale: Operating earnings $ 18,300 $ 21,681 $ 97,423 $ 87,701 Adjustments: LIFO expense (benefit) 517 (4,346) 4,378 12,388 Depreciation and amortization 13,165 12,370 54,291 51,535 Acquisition and integration, net — 27 2,048 216 Restructuring and asset impairment, net 9,122 7,860 15,914 8,548 Cloud computing amortization 1,239 915 4,861 3,414 Organizational realignment, net 526 330 1,720 3,269 Severance associated with cost reduction initiatives 91 7 321 303 Stock-based compensation 1,831 1,601 7,403 8,216 Stock warrant 168 280 868 1,559 Non-cash rent (14) 4 (803) (134) Gain on disposal of assets (253) (72) (380) (83) Legal settlement (900) — (900) 900 Postretirement plan amendment and settlement — — 62 59 Adjusted EBITDA $ 43,792 $ 40,657 $ 187,206 $ 177,891 Retail: Operating (loss) earnings (46,000) 1,861 (43,462) 19,011 Adjustments: LIFO (benefit) expense (396) (1,995) 789 3,716 Depreciation and amortization 12,100 11,024 49,121 47,104 Acquisition and integration, net (99) 1,130 1,065 3,200 Restructuring and goodwill / asset impairment, net 47,713 (41) 58,193 642 Cloud computing amortization 740 434 2,724 1,620 Organizational realignment, net 316 199 1,037 1,970 Severance associated with cost reduction initiatives 26 — 216 15 Stock-based compensation 773 862 3,340 4,320 Non-cash rent (384) (509) (1,876) (2,465) Loss on disposal of assets 17 27 96 342 Postretirement plan amendment and settlement — — 37 35 Adjusted EBITDA $ 14,806 $ 12,992 $ 71,280 $ 79,510 Notes: Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("adjusted EBITDA") is a non-GAAP operating financial measure that the Company defines as net earnings plus interest, discontinued operations, depreciation and amortization, and other non-cash items including share-based payments (equity awards measured in accordance with ASC 718, Stock Compensation, which include both stock-based compensation to employees and stock warrants issued to non-employees) and the LIFO provision, as well as adjustments for items that do not reflect the ongoing operating activities of the Company. Adjusted EBITDA and adjusted EBITDA by segment are not measures of performance under GAAP and should not be considered as a substitute for net earnings, cash flows from operating activities and other income or cash flow statement data. The Company's definitions of adjusted EBITDA and adjusted EBITDA by segment may not be identical to similarly titled measures reported by other companies. Table 3: Reconciliation of Net (Loss) Earnings toAdjusted Earnings from Continuing Operations, as well as per diluted share ("adjusted EPS")(A Non-GAAP Financial Measure)(Unaudited) 12 Weeks Ended December 28, 2024 December 30, 2023 per diluted per diluted (In thousands, except per share amounts) Earnings share Earnings share Net (loss) earnings $ (35,081) $ (1.04) $ 10,305 $ 0.30 Adjustments: LIFO expense (benefit) 121 (6,341) Acquisition and integration, net (99) 1,157 Restructuring and goodwill / asset impairment, net 56,958 7,819 Organizational realignment, net 842 529 Severance associated with cost reduction initiatives 117 7 Legal settlement (900) — Postretirement plan amendment and settlement — (763) Total adjustments 57,039 2,408 Income tax effect on adjustments (a) (7,522) (693) Total adjustments, net of taxes 49,517 1.46 * 1,715 0.05 Adjusted earnings from continuing operations $ 14,436 $ 0.42 $ 12,020 $ 0.35 * Includes rounding 52 Weeks Ended December 28, 2024 December 30, 2023 per diluted per diluted (In thousands, except per share amounts) Earnings share Earnings share Net earnings $ 299 $ 0.01 $ 52,237 $ 1.50 Adjustments: LIFO expense 5,167 16,104 Acquisition and integration, net 3,113 3,416 Restructuring and goodwill / asset impairment, net 74,230 9,190 Organizational realignment, net 2,757 5,239 Severance associated with cost reduction initiatives 537 318 Pension refund from annuity provider (239) — Legal settlement (900) 900 Postretirement plan amendment and settlement (1,458) (3,174) Total adjustments 83,207 31,993 Income tax effect on adjustments (a) (14,220) (8,218) Total adjustments, net of taxes 68,987 2.02 23,775 0.68 Adjusted earnings from continuing operations $ 69,286 $ 2.03 $ 76,012 $ 2.18 (a) The income tax effect on adjustments is computed by applying the effective tax rate, before discrete tax items, to the total adjustments for the period. Notes: Adjusted earnings from continuing operations, as well as per diluted share ("adjusted EPS"), is a non-GAAP operating financial measure that the Company defines as net (loss) earnings plus or minus adjustments for items that do not reflect the ongoing operating activities of the Company and costs associated with the closing of operational locations. Adjusted earnings from continuing operations is not a measure of performance under GAAP and should not be considered as a substitute for net (loss) earnings, cash flows from operating activities and other income or cash flow statement data. The Company's definition of adjusted earnings from continuing operations may not be identical to similarly titled measures reported by other companies. Table 4: Reconciliation of Long-Term Debt and Finance Lease Obligations to Net Long-Term Debt and Net Earnings to Adjusted EBITDA(A Non-GAAP Financial Measure)(Unaudited) (In thousands) December 28, 2024 October 5, 2024 Current portion of long-term debt and finance lease liabilities $ 12,838 $ 9,747 Long-term debt and finance lease liabilities 740,969 626,957 Total debt 753,807 636,704 Cash and cash equivalents (21,570) (17,510) Net long-term debt $ 732,237 $ 619,194 Rolling 52- Weeks Ended (In thousands, except for ratio) December 28, 2024 October 5, 2024 Net earnings $ 299 $ 45,685 Income tax expense 10,726 18,510 Other expenses, net 42,936 41,008 Operating earnings 53,961 105,203 Adjustments: LIFO expense (benefit) 5,167 (1,295) Depreciation and amortization 103,412 101,541 Acquisition and integration, net 3,113 4,369 Restructuring and goodwill / asset impairment, net 74,107 25,091 Cloud computing amortization 7,585 6,955 Organizational realignment, net 2,757 2,444 Severance associated with cost reduction initiatives 537 427 Stock-based compensation 10,743 10,602 Stock warrant 868 980 Non-cash rent (2,679) (2,786) Gain on disposal of assets (284) (93) Legal settlement (900) — Postretirement plan amendment and settlement 99 99 Adjusted EBITDA $ 258,486 $ 253,537 Net long-term debt to adjusted EBITDA ratio 2.8 2.4 Notes: Net long-term debt is a non-GAAP financial measure that is defined as long-term debt and finance lease obligations plus current maturities of long-term debt and finance lease obligations less cash and cash equivalents. The Company believes both management and its investors find the information useful because it reflects the amount of long-term debt obligations that are not covered by available cash. Net long-term debt is not a substitute for GAAP financial measures and may differ from similarly titled measures of other companies. Table 5: Reconciliation of Purchases of Property and Equipment to Capital Expenditures and IT Capital(A Non-GAAP Financial Measure)(Unaudited) 52 Weeks Ended (In thousands) December 28, 2024 December 30, 2023 Purchases of property and equipment $ 132,394 $ 120,330 Plus: Cloud computing spend 12,050 7,040 Capital expenditures and IT capital $ 144,444 $ 127,370 Notes: Capital expenditures and IT capital is a non-GAAP financial measure calculated by adding spending related to the development of cloud computing applications to capital expenditures, the most directly comparable GAAP measure. Cloud computing spend only includes costs incurred during the application development phase and does not include ongoing costs of hosting or maintenance associated with these applications, which are expensed as incurred. The Company believes it is a useful indicator of the Company's investment in its facilities and systems as it transitions to more cloud-based IT systems. Capital expenditures and IT capital is not a substitute for GAAP financial measures and may differ from similarly titled measures of other companies. SOURCE SpartanNash WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

SpartanNash Announces Fourth Quarter and Fiscal 2024 Results

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