December 27, 2014 9:01 PM ET

Food and Staples Retailing

Company Overview of Sprouts Farmers Market, Inc.

Company Overview

Sprouts Farmers Market, Inc., through its subsidiaries, is engaged in the retail of natural and organic food in the United States. The company offers fresh produce, bulk foods, vitamins and supplements, grocery products, meat and seafood products, deli and bakery products, dairy and dairy alternatives, frozen foods, beer and wine, natural health and body care products, and natural household products. As of August 7, 2014, it operated 182 stores in 10 states. Sprouts Farmers Market, Inc. was founded in 2002 and is based in Phoenix, Arizona.

11811 North Tatum Boulevard

Suite 2400

Phoenix, AZ 85028

United States

Founded in 2002

14,000 Employees

Phone:

480-814-8016

Key Executives for Sprouts Farmers Market, Inc.

Chief Executive Officer and President
Age: 45
Total Annual Compensation: $500.0K
Chief Financial Officer and Treasurer
Age: 42
Total Annual Compensation: $360.8K
Chief Operating Officer
Age: 43
Total Annual Compensation: $334.9K
Chief Marketing & Information Officer
Age: 54
Total Annual Compensation: $244.2K
Chief Legal Officer and Corporate Secretary
Age: 37
Total Annual Compensation: $257.7K
Compensation as of Fiscal Year 2013.

Sprouts Farmers Market, Inc. Key Developments

Sprouts Farmers Market, Inc. Presents at 2014 Deutsche Bank Health, Wellness & Specialty Retailer Consumer Conference, Dec-10-2014 through Dec-11-2014

Sprouts Farmers Market, Inc. Presents at 2014 Deutsche Bank Health, Wellness & Specialty Retailer Consumer Conference, Dec-10-2014 through Dec-11-2014. Venue: The St. Regis Atlanta, 88 West Paces Ferry Road NW, Atlanta, GA 30305, United States. Presentation Date(s): Dec-11-2014.

Sprouts Farmers Market, Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 28, 2014; Provides Comparable Store Sales Guidance for the Fourth Quarter of 2014; Revised Earnings Guidance for 2014

Sprouts Farmers Market, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 28, 2014. For the quarter, the company reported net sales were $766.4 million, or a 21% increase compared to $633.6 million for the same period in 2013. Net sales growth was driven by strong performance in new stores opened and a 9% increase in comparable store sales growth. Income from operations was $49.7 million against $36.7 million last year. Income before income taxes was $42.6 million against $18.6 million last year. Net income for the quarter was $26.1 million, or basic and diluted earnings per share of $0.17, up from net income of $11.5 million or $0.08 per basic and diluted share for the same period in 2013. Net income in the quarter included $1.1 million pre-tax loss on extinguishment of debt; and $0.9 million of pre-tax secondary offering expenses. Net income for the third quarter of 2013 included $9.5 million pre-tax loss on extinguishment of debt; $3.2 million pre-tax bonus related to the IPO; and $0.4 million pre-tax loss on disposal of assets. Excluding these items, adjusted net income for the quarter increased 41% to $27.4 million, compared to $19.5 million in the same period in 2013, and adjusted EBITDA totaled $65.5 million, up $12.8 million, or 24%, from $52.6 million for the same period in 2013. These increases were driven by higher sales and operating leverage partially offset by expenses and lower operating margin from the 14 new stores opened in the quarter. In addition, net income benefited from lower interest expense due to a lower principal balance on term loan and the interest rate reduction under credit facility in conjunction with IPO. Adjusted basic and diluted earnings per share were $0.18, a 38% increase from adjusted diluted earnings per share of $0.13 from the same period in 2013. Adjusted EBIT was $51 million compared to $40.4 million in the same period in 2013. For the nine months, net sales were $2.2 billion, or a 22% increase compared to $1.8 billion for the same period in 2013. Growth was driven by a 10.4% increase in comparable store sales growth and strong performance in new stores opened. Income from operations was $166.9 million against $116.8 million last year. Income before income taxes was $147.1 million against $69.2 million last year. Net income was $89.9 million or $0.58 per diluted share against $42.0 million or $0.31 per diluted share for the same period in 2013. Net income year-to-date included $1.1 million pre-tax loss on extinguishment of debt; $2.3 million pre-tax secondary offering expenses; $0.4 million pre-tax store closure and exit costs; and $1.1 million pre-tax loss on disposal of assets. Net income for the first three quarters of 2013 included $1.7 million pre-tax store closure and exit costs; $3.2 million pre-tax bonus related to the IPO; $0.4 million pre-tax loss on disposal of assets; and a pre-tax loss on extinguishment of debt of $17.7 million. Excluding these items, adjusted net income increased 66% to $93.0 million compared to $56.0 million in the same period in 2013. Adjusted EBITDA totaled $212.0 million, up $54.6 million or 35% from $157.4 million for the same period in 2013. Adjusted diluted earnings per share were $0.60, a 43% increase from adjusted diluted earnings per share of $0.42 from the same period in 2013. Net cash provided by operating activities was $151.3 million against $138.3 million last year. Purchases of property and equipment were $96.1 million against $74.8 million last year. Adjusted EBIT was $171.2 million compared to $122.5 million in the same period in 2013. For the fourth quarter of 2014, the company expects comparable store sales growth in the range of 5.5% to 6.5% and two-year combined pro forma comparable store sales growth in the range of 19% to 20%. The company revised earnings guidance for 2014. The company expects net sales growth in the range of 19% to 20%, comparable store sales growth in the range of 8.5% to 9.5%, adjusted EBITDA growth in the range of 28% to 30%, adjusted net income growth of 50% plus, adjusted diluted earnings per share in the range of $0.67 to $0.68, adjusted diluted earnings per share growth in the range of 40% to 42% and capital expenditures (net of landlord reimbursements) of approximately $110 million against previous guidance for net sales growth in the range of 19% to 20%, comparable store sales growth in the range of 8.5% to 9.5%, adjusted EBITDA growth in the range of 25% to 27%, adjusted net income growth of 45% plus, adjusted diluted earnings per share in the range of $0.65 to $0.67, adjusted diluted earnings per share growth in the range of 35% to 40% and capital expenditures (net of landlord reimbursements) in the range of $110 million to $120 million.

Sprouts Farmers Market, Inc. to Report Q3, 2014 Results on Nov 06, 2014

Sprouts Farmers Market, Inc. announced that they will report Q3, 2014 results at 3:00 PM, US Mountain Standard Time on Nov 06, 2014

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