Supervalu Inc has booked a jump in second-quarter losses, driven by charges related to the supermarket group's turnaround plan.
The company said its second-quarter net loss totalled US$111m in the three months, up from $60m in the comparable period of last year.
Supervalu has taken a number of steps to improve its performance, including the closure of underperforming stores and debt refinancing.
The company emphasised that losses were driven by one-off charges related to its turnaround plan. Excluding charges, Supervalu said its business would have broken even.
Sales slid from $8.43bn to $8.04bn in the period. The decline was the result of lower same-store sales and the disposal of the majority of its forecourt business, which contributed $158m to quarterly sales in 2012.
SUPERVALU Announces Second Quarter Fiscal 2013 Results
Cash flow from operations of $188 million in second quarter and $415 million year-to-date Net loss per share, including charges, of $0.52 in quarter; $0.00 earnings per share excluding charges EBITDA of $1.65 billion before charges for the 52 weeks ended September 8, 2012 Debt reduction anticipated to be in the range of $400 to $450 million for the year New $1.65 billion asset-based revolving credit facility and $850 million term loan completed Company provides update on strategic review MINNEAPOLIS--(BUSINESS WIRE)--SUPERVALU INC. (NYSE: SVU) today reported second quarter fiscal 2013 net sales of $8.0 billion compared to $8.4 billion last year. The net loss for the second quarter totaled $111 million, or $0.52 per diluted share, including predominantly non-cash net charges of $111 million after-tax, or $0.52 per diluted share. These net charges are comprised of intangible asset impairment charges ($45 million after-tax, or $0.21 per diluted share), charges related to the previously announced store closures net of a gain on sale of assets ($25 million after-tax, or $0.12 per diluted share), other asset impairment charges ($23 million after-tax, or $0.11 per diluted share), the write-off of unamortized costs related to the senior secured credit facilities which were replaced by the recent debt refinancing ($14 million after-tax, or $0.06 per diluted share), and other employee-related costs ($4 million after-tax, or $0.02 per diluted share). When adjusted for these items, second quarter net earnings were $0.00 per diluted share compared to $60 million, or $0.28 per diluted share last year. [See table 1 for a reconciliation of GAAP (actual) and non-GAAP (adjusted) results appearing in this release]. Year-to-date net cash flows from operating activities were $415 million and EBITDA before charges for the 52 weeks ended September 8, 2012 was $1.65 billion.
