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Section 1: 8-K (8-K)

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) February 20, 2020

Sprouts Farmers Market, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware

 

001-36029

 

32-0331600

(State or other jurisdiction

of incorporation or organization)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

5455 E. High Street, Suite 111

Phoenix, Arizona 85054

(Address of principal executive offices and zip code)

(480) 814-8016

(Registrant’s telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class 

 

Trading Symbol(s)

 

Name of Each Exchange on Which

Registered

Common Stock, $0.001 par value

 

SFM

 

NASDAQ Global Select Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

 

 


 

Item 2.02. Results of Operations and Financial Condition.

On February 20, 2020, Sprouts Farmers Market, Inc. (the “Company”) issued a press release announcing its results of operations for its fourth fiscal quarter and fiscal year ended December 29, 2019. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated into this Item 2.02 by reference.

The information furnished in this Item 2.02, including Exhibit 99.1 attached hereto and incorporated herein, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

The text of this Current Report on Form 8-K is available on the Company’s investor relations website located at investors.sprouts.com, although the Company reserves the right to discontinue that availability at any time.

Item 9.01. Financial Statements and Exhibits.

 

(d)

Exhibits

 

Exhibit

Number

  

Description

 

 

 

99.1

  

Press release of Sprouts Farmers Market, Inc., dated February 20, 2020, entitled “Sprouts Farmers Market, Inc. Reports Fourth Quarter and Full Year 2019 Results”

 

 

 

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

SPROUTS FARMERS MARKET, INC.

 

 

 

Date: February 20, 2020

 

By:

 

/s/ Brandon F. Lombardi

 

 

Name:

 

Brandon F. Lombardi

 

 

Title:

 

Chief Legal Officer and Corporate Secretary

 

 

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

sfm-ex991_6.htm

Exhibit 99.1

          

 

 

 

Investor Contact:

Media Contact:

Susannah Livingston

Diego Romero

(602) 682-1584

(602) 682-3173

[email protected]

[email protected]

SPROUTS FARMERS MARKET, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2019 RESULTS

PHOENIX, Ariz. – (Globe Newswire) – February 20, 2020 – Sprouts Farmers Market, Inc. (Nasdaq: SFM) today reported results for the 13-week fourth quarter and 52-week year ended December 29, 2019.  

Fourth Quarter Highlights:

 

Net sales of $1.4 billion; an 8% increase from the same period in 2018

 

Comparable store sales growth of 1.5% and two-year comparable store sales growth of 3.8%

 

Net income of $32 million; compared to net income of $13 million and adjusted net income of $24 million from the same period in 2018

 

Diluted earnings per share of $0.27; compared to diluted earnings per share of $0.10 and adjusted diluted earnings per share of $0.19 from the same period in 2018

Fiscal Year 2019 Highlights:

 

Net sales of $5.6 billion; an 8% increase from 2018

 

Comparable store sales growth of 1.1% and two-year comparable store sales growth of 3.2%

 

Net income and adjusted net income of $150 million; compared to net income of $159 million and adjusted net income of $168 million in 2018

 

Diluted earnings and adjusted diluted earnings per share of $1.25; compared to diluted earnings per share of $1.22 and adjusted diluted earnings per share of $1.29 in 2018

 

“During the fourth quarter, I was encouraged by the Sprouts team’s dedication to driving same store sales growth, while we simultaneously delivered positive margins,” said Jack Sinclair, chief executive officer of Sprouts Farmers Market.   “We remain engaged in developing a long-term strategy and are optimistic about the future of Sprouts rooted in a brand that is good for you, good for your family and good for the planet.”

 

2020 First Quarter and Full Year Outlook

 

The following provides information on our outlook for 2020, which does not factor in any strategic changes. In addition, the Company notes the fiscal year 2020 will be a 53-week year, with the extra week falling in the fourth quarter. We estimate the impact from the 53rd week to be approximately $120 million in sales, $9 million in income before income taxes, and $0.06 in diluted earnings per share:

 

 

 

 

 

Full year 2020 Outlook

 

 

 

Q1 2020 Outlook

 

(52-Week)

 

Net sales growth

 

5.5% to 6.5%

 

5.5% to 6.5%

 

Comparable store sales growth

 

0% to 1%

 

0% to 1%

 

Unit growth

 

 

 

Approximately 20

 

Diluted earnings per share

 

$0.45 to $0.47

 

$1.17 to $1.23

 

Earnings before taxes ("EBT") Growth

 

 

 

$187M to $197M

 

Effective tax rate

 

 

 

Approximately 26%

 

Capital expenditures (net of landlord reimbursements)

 

 

 

$120M to $130M

 

 

 

 

 

 


Fourth Quarter and Full Year 2019 Conference Call

We will hold a conference call at 3 p.m. Mountain Standard Time (5 p.m. Eastern Standard Time) on Thursday, February 20, 2020 during which Sprouts executives will further discuss our fourth quarter and fiscal year 2019 financial results.

A webcast of the conference call will be available through Sprouts’ investor webpage located at investors.sprouts.com. Participants should register on the website approximately 10 minutes prior to the start of the webcast.

The conference call will be available via the following dial-in numbers:

 

U.S. Participants: 877-398-9481

 

International Participants: +1-408-337-0130

 

Conference ID: 9977410

The audio replay will remain available for 72 hours and can be accessed by dialing 855-859-2056 (toll-free) or 404-537-3406 (international) and entering the confirmation code: 9977410.

Important Information Regarding Outlook

There is no guarantee that Sprouts will achieve its projected financial expectations, which are based on management estimates, currently available information and assumptions that management believes to be reasonable.   These expectations are inherently subject to significant economic, competitive and other uncertainties and contingencies, many of which are beyond the control of management.  See “Forward-Looking Statements” below.

 

Forward-Looking Statements

Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Any statements contained herein that are not statements of historical fact (including, but not limited to, statements to the effect that Sprouts Farmers Market or its management "anticipates," "plans," "estimates," "expects," or "believes," or the negative of these terms and other similar expressions) should be considered forward-looking statements, including, without limitation, statements regarding the company’s guidance, outlook, growth and opportunities. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this release. These risks and uncertainties include, without limitation, risks associated with the company’s ability to successfully compete in its intensely competitive industry; the company’s ability to successfully open new stores; the company’s ability to manage its growth; the company’s ability to maintain or improve its operating margins; the company’s ability to identify and react to trends in consumer preferences; product supply disruptions; general economic conditions; accounting standard changes; and other factors as set forth from time to time in the company’s Securities and Exchange Commission filings, including, without limitation, the company’s Annual Report on Form 10-K. The company intends these forward-looking statements to speak only as of the time of this release and does not undertake to update or revise them as more information becomes available, except as required by law.

Corporate Profile

About Sprouts Farmers Market
Sprouts Farmers Market, Inc., one of the fastest-growing retailers in the country, has made healthy living accessible to shoppers for nearly two decades by offering affordable, fresh, natural and organic products. True to its farmers market heritage, Sprouts is known for pioneering its unique grocery model by offering a welcoming store layout featuring fresh produce at the center of the store, an expansive bulk foods section, and a vitamin department focused on overall wellness. Sprouts also offers a unique assortment of healthier products with special attributes, such as plant-based, gluten-free, keto-friendly, and grass-fed, to meet the growing and diverse needs of today’s consumer. Headquartered in Phoenix, Ariz., Sprouts employs more than 30,000 team members and operates over 340 stores in 22 states from coast to coast. Visit 
about.sprouts.com for more information.

 

 

 

 


SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

 

 

 

Thirteen weeks ended

 

 

Fifty-two weeks ended

 

 

 

December 29,

2019

 

 

December 30,

2018

 

 

December 29,

2019

 

 

December 30,

2018

 

Net sales

 

$

1,364,991

 

 

$

1,269,338

 

 

$

5,634,835

 

 

$

5,207,336

 

Cost of sales

 

 

896,028

 

 

 

848,369

 

 

 

3,740,017

 

 

 

3,459,861

 

Gross profit

 

 

468,963

 

 

 

420,969

 

 

 

1,894,818

 

 

 

1,747,475

 

Selling, general and administrative expenses

 

 

387,481

 

 

 

352,672

 

 

 

1,549,707

 

 

 

1,404,443

 

Depreciation and amortization (exclusive of depreciation included

   in cost of sales)

 

 

30,703

 

 

 

27,966

 

 

 

120,491

 

 

 

108,045

 

Store closure and other costs

 

 

3,864

 

 

 

11,579

 

 

 

7,260

 

 

 

12,076

 

Income from operations

 

 

46,915

 

 

 

28,752

 

 

 

217,360

 

 

 

222,911

 

Interest expense, net

 

 

5,195

 

 

 

7,420

 

 

 

21,192

 

 

 

27,435

 

Other income

 

 

 

 

 

 

 

 

 

 

 

320

 

Income before income taxes

 

 

41,720

 

 

 

21,332

 

 

 

196,168

 

 

 

195,796

 

Income tax provision

 

 

10,086

 

 

 

8,629

 

 

 

46,539

 

 

 

37,260

 

Net income

 

$

31,634

 

 

$

12,703

 

 

$

149,629

 

 

$

158,536

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.27

 

 

$

0.10

 

 

$

1.25

 

 

$

1.23

 

Diluted

 

$

0.27

 

 

$

0.10

 

 

$

1.25

 

 

$

1.22

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

117,934

 

 

 

126,574

 

 

 

119,368

 

 

 

128,827

 

Diluted

 

 

118,219

 

 

 

127,398

 

 

 

119,742

 

 

 

129,776

 

 

 

 

 


SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

 

 

December 29,

2019

 

 

December 30,

2018

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

85,314

 

 

$

1,588

 

Accounts receivable, net

 

 

15,713

 

 

 

40,564

 

Inventories

 

 

275,979

 

 

 

264,366

 

Prepaid expenses and other current assets

 

 

10,833

 

 

 

27,323

 

Total current assets

 

 

387,839

 

 

 

333,841

 

Property and equipment, net of accumulated depreciation

 

 

741,508

 

 

 

766,429

 

Operating lease assets

 

 

1,028,436

 

 

 

 

Intangible assets, net of accumulated amortization

 

 

185,395

 

 

 

194,803

 

Goodwill

 

 

368,078

 

 

 

368,078

 

Other assets

 

 

11,727

 

 

 

12,463

 

Total assets

 

$

2,722,983

 

 

$

1,675,614

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

261,326

 

 

$

253,969

 

Accrued salaries and benefits

 

 

48,579

 

 

 

48,603

 

Current portion of capital and financing lease obligations

 

 

 

 

 

7,428

 

Current portion of operating lease liabilities

 

 

106,153

 

 

 

 

Current portion of finance lease liabilities

 

 

754

 

 

 

 

Total current liabilities

 

 

416,812

 

 

 

310,000

 

Long-term capital and financing lease obligations

 

 

 

 

 

119,642

 

Long-term operating lease liabilities

 

 

1,078,927

 

 

 

 

Long-term debt and finance lease liabilities

 

 

549,419

 

 

 

453,000

 

Other long-term liabilities

 

 

41,517

 

 

 

153,377

 

Deferred income tax liability

 

 

54,356

 

 

 

50,399

 

Total liabilities

 

 

2,141,031

 

 

 

1,086,418

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Undesignated preferred stock; $0.001 par value; 10,000,000 shares

   authorized, no shares issued and outstanding

 

 

 

 

 

 

Common stock, $0.001 par value; 200,000,000 shares authorized,

   117,543,668 shares issued and outstanding, December 29, 2019;

   124,975,691 shares issued and outstanding, December 30, 2018

 

 

117

 

 

 

124

 

Additional paid-in capital

 

 

670,966

 

 

 

657,140

 

Accumulated other comprehensive (loss) income

 

 

(4,682

)

 

 

1,134

 

Accumulated deficit

 

 

(84,449

)

 

 

(69,202

)

Total stockholders' equity

 

 

581,952

 

 

 

589,196

 

Total liabilities and stockholders' equity

 

$

2,722,983

 

 

$

1,675,614

 

 

 

 

 

 


SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)

 

 

 

Fifty-two weeks ended

 

 

 

December 29, 2019

 

 

December 30, 2018

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net income

 

$

149,629

 

 

$

158,536

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

 

122,804

 

 

 

110,749

 

Operating lease asset amortization

 

 

81,842

 

 

 

 

Store closure and other costs

 

 

4,113

 

 

 

4,115

 

Share-based compensation

 

 

8,949

 

 

 

14,512

 

Deferred income taxes

 

 

(216

)

 

 

23,333

 

Other non-cash items

 

 

4,136

 

 

 

1,482

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

36,062

 

 

 

(7,666

)

Inventories

 

 

(11,612

)

 

 

(34,824

)

Prepaid expenses and other current assets

 

 

19,208

 

 

 

(2,908

)

Other assets

 

 

(1,275

)

 

 

(5,086

)

Accounts payable and other accrued liabilities

 

 

28,699

 

 

 

4,366

 

Accrued salaries and benefits

 

 

295

 

 

 

3,039

 

Operating lease liabilities

 

 

(88,002

)

 

 

 

Other long-term liabilities

 

 

578

 

 

 

24,731

 

Cash flows from operating activities

 

 

355,210

 

 

 

294,379

 

Cash flows used in investing activities

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(183,232

)

 

 

(177,082

)

Cash flows used in investing activities

 

 

(183,232

)

 

 

(177,082

)

Cash flows used in financing activities

 

 

 

 

 

 

 

 

Proceeds from revolving credit facilities

 

 

265,405

 

 

 

233,000

 

Payments on revolving credit facilities

 

 

(180,405

)

 

 

(128,000

)

Payments on capital and financing lease obligations

 

 

 

 

 

(4,517

)

Payments on finance lease obligations

 

 

(690

)

 

 

 

Payments of deferred financing costs

 

 

 

 

 

(2,131

)

Cash from landlords related to capital and financing lease obligations

 

 

 

 

 

3,643

 

Repurchase of common stock

 

 

(176,310

)

 

 

(258,307

)

Proceeds from exercise of stock options

 

 

4,878

 

 

 

21,843

 

Other

 

 

(319

)

 

 

(59

)

Cash flows used in financing activities

 

 

(87,441

)

 

 

(134,528

)

Increase / (Decrease) in cash, cash equivalents, and restricted cash

 

 

84,537

 

 

 

(17,231

)

Cash, cash equivalents, and restricted cash at beginning of the period

 

 

2,248

 

 

 

19,479

 

Cash, cash equivalents, and restricted cash at the end of the period

 

$

86,785

 

 

$

2,248

 

 

 

 

 

 


Non-GAAP Financial Measures

In addition to reporting financial results in accordance with accounting principles generally accepted in the United States (“GAAP”), the company presents EBITDA, adjusted EBITDA, adjusted income before income taxes (adjusted EBT), adjusted net income and adjusted diluted earnings per share. These measures are not in accordance with, and are not intended as alternatives to, GAAP. The company's management believes that this presentation provides useful information to management, analysts and investors regarding certain additional financial and business trends relating to its results of operations and financial condition. In addition, management uses these measures for reviewing the financial results of the company, and certain of these measures may be used as components of incentive compensation.

The company defines EBITDA as net income before interest expense, provision for income tax, and depreciation, amortization and accretion and adjusted EBITDA as EBITDA excluding the impact of special items. The company defines adjusted EBT, adjusted net income and adjusted diluted earnings per share by adjusting the applicable GAAP measure to remove the impact of special items.

Non-GAAP measures are intended to provide additional information only and do not have any standard meanings prescribed by GAAP. Use of these terms may differ from similar measures reported by other companies. Because of their limitations, non-GAAP measures should not be considered as a measure of discretionary cash available to use to reinvest in the growth of the company’s business, or as a measure of cash that will be available to meet the company’s obligations. Each non-GAAP measure has its limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of the company’s results as reported under GAAP.

The following table shows a reconciliation of EBITDA and adjusted EBITDA to net income for the thirteen and fifty-two weeks ended December 29, 2019 and December 30, 2018 and a reconciliation of EBT, net income and diluted earnings per share to adjusted EBT, adjusted net income and adjusted diluted earnings per share for the thirteen and fifty-two weeks ended December 29, 2019 and December 30, 2018:

 

 

 

 


SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES

NON-GAAP MEASURE RECONCILIATION

(UNAUDITED)

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

 

 

 

Thirteen weeks ended

 

 

Fifty-two weeks ended

 

 

 

December 29,

2019

 

 

December 30,

2018

 

 

December 29,

2019

 

 

December 30,

2018

 

Net income

 

$

31,634

 

 

$

12,703

 

 

$

149,629

 

 

$

158,536

 

Income tax provision (1)

 

 

10,086

 

 

 

8,629

 

 

 

46,539

 

 

 

37,260

 

Income before income taxes (Earnings before taxes "EBT")

 

 

41,720

 

 

 

21,332

 

 

 

196,168

 

 

 

195,796

 

Special Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Executive Compensation (2)

 

 

 

 

 

3,618

 

 

 

508

 

 

 

3,618

 

Store closures (3)

 

 

 

 

 

7,961

 

 

 

 

 

 

7,961

 

Total Special Items - pre-tax

 

 

 

 

 

11,579

 

 

 

508

 

 

 

11,579

 

Adjusted EBT

 

$

41,720

 

 

$

32,911

 

 

$

196,676

 

 

$

207,375

 

Net income

 

$

31,634

 

 

$

12,703

 

 

$

149,629

 

 

$

158,536

 

Income tax provision (1)

 

 

10,086

 

 

 

8,629

 

 

 

46,539

 

 

 

37,260

 

Interest expense, net

 

 

5,195

 

 

 

7,420

 

 

 

21,192

 

 

 

27,435

 

Earnings before interest and taxes (EBIT)

 

 

46,915

 

 

 

28,752

 

 

 

217,360

 

 

 

223,231

 

Depreciation, amortization and accretion

 

 

31,258

 

 

 

28,571

 

 

 

122,804

 

 

 

110,749

 

Earnings before interest, taxes, depreciation and

   amortization (EBITDA)

 

$

78,173

 

 

$

57,323

 

 

$

340,164

 

 

$

333,980

 

Special Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Executive Compensation (2)

 

 

 

 

 

3,618

 

 

 

508

 

 

 

3,618

 

Store closures (3)

 

 

 

 

 

7,961

 

 

 

 

 

 

7,961

 

Total Special Items - pre-tax

 

 

 

 

 

11,579

 

 

 

508

 

 

 

11,579

 

Adjusted EBITDA

 

$

78,173

 

 

$

68,902

 

 

$

340,672

 

 

$

345,559

 

Net income

 

$

31,634

 

 

$

12,703

 

 

$

149,629

 

 

$

158,536

 

Special Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Executive compensation, net of tax (2)

 

 

 

 

 

5,652

 

 

 

 

 

 

5,652

 

Store closures, net of tax (3)

 

 

 

 

 

5,921

 

 

 

377

 

 

 

5,921

 

Adjusted Net income before one-time tax benefit

 

 

31,634

 

 

 

24,276

 

 

 

150,006

 

 

 

170,109

 

Income tax benefit related to Tax Act and other

   one-time tax benefits (4)

 

 

 

 

 

 

 

 

 

 

 

(2,573

)

Adjusted Net income

 

$

31,634

 

 

$

24,276

 

 

$

150,006

 

 

$

167,536

 

Diluted earnings per share

 

$

0.27

 

 

$

0.10

 

 

$

1.25

 

 

$

1.22

 

Adjusted diluted earnings per share

 

$

0.27

 

 

$

0.19

 

 

$

1.25

 

 

$

1.29

 

Diluted weighted average shares outstanding

 

 

118,219

 

 

 

127,398

 

 

 

119,742

 

 

 

129,776

 

 

(1)

Income tax provision includes approximately a $12 million (or $0.10 per diluted share) benefit during the fifty-two weeks ended December 30, 2018 in excess federal and state tax for share based compensation primarily associated with the exercise of expiring pre-IPO options.

(2)

During the thirteen and fifty-two weeks ended December 30, 2018, the Company recorded one-time pre-tax compensation charges of $4 million associated with the resignation of the former CEO. The after-tax impact includes incremental tax expense associated with certain nondeductible executive compensation costs.

(3)

During the thirteen and fifty-two weeks ended December 30, 2018, in connection with the closure to two stores, the Company recorded one-time non-cash pre-tax charges of $8 million primarily related to the estimated fair value of the lease termination obligations and asset impairments. After-tax impact includes the tax benefit on the pre-tax charge.

(4)

During the fifty-two weeks ended December 30, 2018, the Company adopted a tax calculation method change for the accelerated deduction of certain items, resulting in a discrete tax benefit of $3 million.

 

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Source: Sprouts Farmers Market, Inc.

Phoenix, AZ

2/20/2020

 

 

 

 

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