Smart & Final Stores, Inc.

CIK:0001563407|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 24, 2019	Mar. 25, 2018
Condensed Consolidated Statements of Operations and Comprehensive Loss
Net sales	$ 1,044,802	$ 1,016,237
Cost of sales, buying and occupancy	888,466	869,975
Gross margin	156,336	146,262
Operating and administrative expenses	155,038	147,430
Income (loss) from operations	1,298	(1,168)
Interest expense, net	10,578	9,251
Equity in earnings of joint venture	433	577
Loss before income taxes	(8,847)	(9,842)
Income tax benefit	2,170	2,748
Net loss	$ (6,677)	$ (7,094)
Basic loss per share (in dollars per share)	$ (0.09)	$ (0.10)
Diluted loss per share (in dollars per share)	$ (0.09)	$ (0.10)
Weighted average shares outstanding:
Basic (in shares)	73,867,084	72,231,171
Diluted (in shares)	73,867,084	72,231,171
Comprehensive loss:
Net loss	$ (6,677)	$ (7,094)
Derivative instruments:
Loss, net of income tax benefit of $(48) at March 25, 2018		(133)
Reclassification adjustments, net of income tax expense of $5 at March 25, 2018		15
Foreign currency translation	(61)	(291)
Other comprehensive loss	(61)	(409)
Comprehensive loss	$ (6,738)	$ (7,503)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 24, 2019	Mar. 25, 2018
Operating activities
Net loss	$ (6,677)	$ (7,094)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	12,714	13,880
Amortization	10,698	9,412
Amortization of debt discount and debt issuance costs	472	459
Share-based compensation	2,703	3,285
Deferred income taxes	(628)	(257)
Equity in earnings of joint venture	(433)	(577)
Loss (gain) on disposal of property, plant, and equipment	85	(32)
Asset impairment	322	1,425
Changes in operating assets and liabilities:
Accounts receivable, net	(1,015)	3,452
Inventories	15,036	1,972
Prepaid expenses and other assets	6,494	7,520
Operating lease assets	17,528
Accounts payable	(30,215)	(24,319)
Accrued salaries and wages	652	(5,140)
Operating lease liabilities	(19,653)
Other accrued liabilities	3,968	14,209
Net cash provided by operating activities	12,051	18,195
Investing activities
Purchases of property, plant, and equipment	(22,208)	(25,478)
Proceeds from disposal of property, plant, and equipment	137	33
Investment in capitalized software	(3,899)	(3,523)
Other	(167)	(19)
Net cash used in investing activities	(26,137)	(28,987)
Financing activities
Proceeds from exercise of stock options	27	336
Payment of minimum withholding taxes on net share settlement of share-based compensation awards	(45)	(65)
Fees paid in conjunction with debt financing	(31)	(31)
Borrowings on bank line of credit	36,000	27,000
Payments on bank line of credit	(31,000)	(39,000)
Principal payments on finance leases	(210)
Cash received from landlord related to financing lease obligations		6,671
Net cash provided by (used in) financing activities	4,741	(5,089)
Net decrease in cash and cash equivalents	(9,345)	(15,881)
Cash and cash equivalents at beginning of period	67,217	71,671
Cash and cash equivalents at end of period	57,872	55,790
Cash paid during the period for:
Interest	6,720	1,116
Non-cash investing and financing activities
Software development costs incurred but not paid	1,509	2,115
Construction in progress costs incurred but not paid	$ 12,752	14,888
Property acquired through financing lease obligations		$ 232

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 24, 2019	Dec. 30, 2018
Current assets:
Cash and cash equivalents	$ 57,872	$ 67,217
Accounts receivable, less allowances of $100 and $100 at March 24, 2019 and December 30, 2018, respectively	37,786	36,771
Inventories	286,902	301,938
Prepaid expenses and other current assets	25,721	32,346
Total current assets	408,281	438,272
Property, plant, and equipment:
Land	11,463	9,734
Buildings and improvements	56,705	60,637
Leasehold improvements	379,685	367,820
Fixtures and equipment	469,350	450,267
Construction in progress	16,797	21,784
Property, plant, and equipment, gross	934,000	910,242
Less accumulated depreciation and amortization	465,439	428,095
Property, plant, and equipment, net	468,561	482,147
Assets under capital leases		16,862
Operating lease assets	886,091
Capitalized software, net of accumulated amortization of $21,902 and $20,294 at March 24, 2019 and December 30, 2018, respectively	35,089	33,725
Other intangible assets, net	310,722	355,554
Goodwill	291,918	291,918
Equity investment in joint venture	17,705	17,468
Other assets	80,312	75,972
Total assets	2,498,679	1,711,918
Current liabilities:
Accounts payable	209,453	239,668
Accrued salaries and wages	37,409	36,757
Accrued expenses	91,289	99,317
Current portion of operating and financing lease liabilities	77,486
Current portion of debt, less debt issuance costs	34,196	29,095
Total current liabilities	449,833	404,837
Obligations under capital leases		17,177
Obligations under financing leases	22,229
Long-term operating lease liabilities	867,606
Long-term debt, less debt issuance costs	619,544	619,204
Deferred income taxes	46,942	50,365
Postretirement and postemployment benefits	116,067	115,402
Other long-term liabilities	82,867	196,778
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value; Authorized shares - 10,000,000 Issued and outstanding shares - none
Common stock, $0.001 par value; Authorized shares - 340,000,000 Issued and outstanding shares-76,522,262 and 76,524,061 at March 24, 2019 and December 30, 2018, respectively	77	77
Additional paid-in capital	523,868	521,183
Retained deficit	(207,503)	(190,315)
Accumulated other comprehensive loss	(22,851)	(22,790)
Total stockholders' equity	293,591	308,155
Total liabilities and stockholders' equity	$ 2,498,679	$ 1,711,918