Comp Strength Propels Smart & Final Fiscal 2015

Smart & Final stores posted net income of $10 million versus $9.3 million in the first quarter ended January 3. Net income per diluted share came in at 13 cents compared to 12 cents in the 2014 period, reflecting an increase of approximately 1.3 million fully diluted shares, including shares issued in the company’s September 2014 initial public offering.

Adjusted net income was $14.7 million versus $12.3 million for the 2014 quarter, according to the company. Adjusted income per diluted share was 19 cents as compared to 16 cents in the year ago period.

Adjusted income per diluted share beat a published MarketBeat analyst average estimate of 16 cents.

Comparable store sales gained 3.5%, with comp growth comprised of a 3.9% increase in comparable transaction count and a 0.4% decrease in comparable average transaction.

Net sales were $997.6 million, up 18.9% versus the year-prior period. An additional week in the fourth quarter of fiscal 2015 added $73.3 million to total sales versus the year before, Smart & Final noted.

For the full fiscal year, net income was $38.3 million versus $33.1 million in fiscal 2014 while net income per diluted share was 50 cents versus 52 cents in fiscal 2014, reflecting the increase of 13.3 million fully diluted shares.

Adjusted net income was $56.3 million versus $46.5 million in the year earlier, while adjusted income per diluted share was 73 cents in both fiscal 2015 and fiscal 2014.

Comps gained 4.5%, comprised of a 4.4% increase in comparable transaction count and a 0.1% increase in comparable average transaction size. Net sales were $3.97 billion versus $3.53 billion in fiscal 2014.

In fiscal 2015, the company opened 20 new Smart & Final Extra! stores and completed nine conversions of legacy Smart & Final stores to the Smart & Final Extra! format, including three store relocations. Smart & Final also opened two new Cash & Carry stores. As of January 3, the company operated a total of 127 Smart & Final Extra! and 94 legacy Smart & Final stores, and 55 Cash & Carry stores.