Nash Finch Company
) first-quarter 2012 earnings (excluding one-time items) of 47
cents per share missed the Zacks Consensus Estimate of 55 cents by
14.5%. Additionally, it plunged 33.8% from prior-year quarter's
earnings of 71 cents per share, due to the ongoing macroeconomic
headwinds and increasing competition.
Including the after-tax impact of these one-time items, net
earnings in the reported quarter were $5.5 million or 42 cents a
share, as opposed to net earnings of $7.5 million, or 57 cents in
the prior-year quarter.
Nash Finch's total sales in the first quarter 2012 were $1.06
billion, down 3.7% from $1.10 billion in the prior-year quarter.
Total comparable sales of Nash Finch shed 3.1% year over year in
the reported quarter, excluding the impact of lower sales due to
closure and disposition of six retail stores during the
Nash Finch's cost of sales for the quarter was $977.9 million
compared with $1.0 billion a year ago. Selling, general and
administrative expense decreased to $58.3 million from $62.6
million in the prior-year quarter.
Adjusted earnings before interest, income tax, depreciation and
amortization (EBITDA) in the first quarter of 2012 were $23.9
million, or 2.3% of sales as compared with $30.8 million, or 2.8%
of sales in the prior-year quarter. The adjusted results for both
2011 and 2012 excluded the impact of significant items totaling
Interest expense of Nash Finch for the quarter came down to $5.1
million from $5.5 million incurred a year ago.
Sales in the quarter declined 1.1% to $531.3 million in the first
quarter of 2012 from $537.4 million in the prior-year quarter. The
decline was due to lower sales to overseas commissaries.
The segment's EBITDA decreased to $13.4 million in the first
quarter of 2012, with an EBITDA margin of 2.5% in the quarter under
review, a contraction of 30 basis points from the previous
Food Distribution & Retail:
The combined Food Distribution and Retail sales decreased
year-over-year to $527.3 million from $562.4 million a year ago.
The decrease was primarily attributable to the sale or closing of
six retail stores.
Total segment's EBITDA decreased to $9.4 million from $14.7
million in the prior-year quarter. EBITDA margin also contracted to
1.8% from 2.6% in the first quarter of 2011.
Cash and cash equivalents of Nash Finch were $700 million as of
March 24, 2012, versus $773 million as on December 31, 2011.
Long-term debt went up to $298.1 million at quarter-end from $278.6
million as on December 31, 2011.
Nash Finch continues to focus on effectively managing its
balance sheet and is currently in compliance with all of its debt
covenants. The debt leverage ratio at the end of the first quarter
2012 was 2.39x.
Share Repurchase and Dividend
Nash Finch didn't repurchase any shares in the first quarter of
2012, but the board of directors of Nash Finch declared a regular
quarterly cash dividend of 18 cents per share of common stock.
The dividend will be paid on June 1, 2012, to shareholders of
record at the close of business on May 18, 2012.
Based in Minneapolis, Minnesota, Nash Finch Company operates as
a wholesale food distributor in the United States. Its close
). Nash Finch currently has a Zacks #4 Rank, which implies a
short-term Sell rating on the stock. However, on a long- term basis
we remain Neutral on the stock.
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