US: Roundy's Q1 profits slide on costs
- Net profits slide 73.8%
- Adjusted EBITDA drops 4.1%
- Net sales climb 2.4%, same-store sales fall
US regional retailer Roundy's has booked a drop in first-quarter profits, hurt by debt repayment and costs from its IPO in February.
For the three months to the end of March, net profit slid 73.8% to US$2.3m. The company blamed the drop partially on a $8.4m cost to pay off debt and on expenses from its listing.
Adjusted EBITDA for the quarter dropped 4.1% to $48.7m, which the company said was primarily due to the effect of "a more challenging economic environment" and a "difficult" year-over-year sales comparison, which resulted in lower same-store sales and gross margins.
Same-store sales dropped 2.1% from the prior year due to continued weakness in the consumer environment and the effect of competitive store openings, it said.
However, net sales climbed 2.4% to reach $938.2m. Roundy's chairman and CEO Robert Mariano said the company was "pleased" with its total sales growth and "solid" performance in the Chicago market.
"Our focus on maintaining an efficient operating structure led to strong cost controls during the quarter. While the economic environment in many of our markets remains challenging, we believe our commitment to providing high quality products and a differentiated customer experience at a great value for our customers will continue to serve our business well," Mariano said.
The company forecasts a decline of 0.5% to 1.5% in fiscal 2012 same-store sales and diluted earnings per share of $1.11 to $1.22.
Click here to view the full earnings release.
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