SUPERVALU Updates Earnings Outlook; To Acquire Associated Grocers - Quick Facts

(RTTNews) - SUPERVALU INC. (SVU) announced the company currently expects its fiscal 2018 net earnings from continuing operations to be in the range of $31 million to $50 million. Adjusted EBITDA, including the contribution from Unified Grocers, is expected to be in the range of $475 million to $495 million. Previously, the company projected its: net earnings from continuing operations in a range of $51 million to $70 million; and adjusted EBITDA, including the contribution from Unified Grocers, in the range of $475 million to $495 million.

Second-quarter adjusted fiscal 2018 net earnings from continuing operations were $18 million, or $0.46 per share compared to net earnings from continuing operations of $9 million, or $0.21 per share, prior year.

Second quarter net sales were $3.80 billion compared to $2.81 billion last year, an increase of 35 percent. Total net sales within the Wholesale segment increased 58 percent. Retail net sales were $1.02 billion, compared to $1.03 billion last year, a decrease of 1.1 percent. The retail net sales decrease reflected identical store sales of negative 3.5 percent and closed stores, partially offset by sales from acquired and new stores.

Separately, SUPERVALU and Associated Grocers of Florida Inc. announced a definitive merger agreement for SUPERVALU to acquire Associated Grocers in a transaction valued at approximately $180 million. Associated Grocers is a retailer-owned cooperative that distributes full lines of grocery and general merchandise to independent retailers, primarily in South Florida, the Caribbean, Central and South America and Asia. During Associated Grocers' last fiscal year, its revenues were approximately $650 million.