Whole Foods Markets (WFM)

[MCArmel1]

Whole Foods Market misses by $0.05, misses on revenue

Nov 4 2015, 16:10 ET | About: Whole Foods Market, Inc. (WFM) | By: Mohit Manghnani, SA News Editor

Whole Foods Market (NASDAQ:WFM): FQ4 EPS of $0.30 misses by $0.05.

Revenue of $3.42B (+4.9% Y/Y) misses by $50M.

Shares -6.7%.

Press Release

http://seekingalpha.com/news/2895266-whole-foods-market-misses-by-0_05-misses-on-revenue?uprof=45#email_link


Whole Foods Market Reports Fourth Quarter Results
2 comments | Wed November 4, 2015 4:05 PM|GlobeNewswire | About: WFM

AUSTIN, Texas, Nov. 4, 2015 (GLOBE NEWSWIRE) -- Whole Foods Market, Inc. (WFM) today reported results for the 12-week fourth quarter ended September 27, 2015. For the quarter, total sales increased 6% to a record $3.4 billion. Comparable store sales on a constant currency basis decreased 0.2%. Earnings before interest, taxes, depreciation and amortization ("EBITDA") were $196 million, or 5.7% of sales, and diluted earnings per share were $0.16. Results included a non-cash asset impairment charge of $46 million, or $0.08 per diluted share, and a restructuring charge of $34 million, or $0.06 per diluted share. Excluding these charges, EBITDA margin was 8.0%, and return on invested capital was 15%.

"In the face of increasing competition, we are not standing still. We have made measurable progress on many of our strategic initiatives over the past year, while producing industry-leading sales per gross square foot of $970, a record $1.1 billion in cash flow from operations, and healthy returns on invested capital," said John Mackey, co-founder and co-chief executive officer of Whole Foods Market. "Through our strong balance sheet and robust cash flow, we self-funded our new store development and strategic investments while returning close to $700 million to our shareholders through dividends and share repurchases."

"There has never been a time where customers have had more interest in what they eat, where it comes from and who's growing it. Our company mission, commitment to transparency, and culture of innovation are more relevant than ever, and we see tremendous growth potential as food consciousness continues to evolve," said Walter Robb, co-chief executive officer of Whole Foods Market. "We recognize the need to move faster and go deeper to rebuild traffic and sales and create a solid foundation for long-term profitable growth and are taking the necessary steps to better communicate our differentiation, improve our value perception, and fundamentally evolve our business."

During the quarter, the Company produced $132 million in cash flow from operations, invested $172 million in capital expenditures, returned $47 million in quarterly dividends to shareholders and repurchased $325 million or 9.9 million shares of common stock. The Company ended the quarter with total cash and cash equivalents, restricted cash, and investments of approximately $582 million. Subsequent to the end of the quarter, the Company repurchased $60 million or 2.0 million shares of common stock.

In a separate release today, the Company announced a new capital allocation strategy that reflects confidence in the Company's future growth and cash flow generation, while expanding its commitment to return capital to shareholders. As part of this strategy, the Company's Board of Directors authorized a new $1 billion share repurchase program and declared a 4% increase in the quarterly dividend to $0.135 per share. In addition, the Company recently entered into a $500 million five-year revolving credit facility and announced its intent to incur additional long-term debt of up to $1 billion prior to the end of the first quarter. The amount and composition of this debt will depend on market conditions and capital allocation considerations at the time the debt is incurred. The Company may also incur additional short-term debt of up to $350 million, which would be repaid with proceeds from the long-term debt. Proceeds from any debt incurred would be used for general corporate purposes, including the repurchase of stock.

The following table provides information on the Company's comparable store sales trends for the fourth quarter and for the first five weeks of the 16-week first quarter. Sales of a store are deemed comparable commencing in the 57th full week after the store was opened or acquired and are presented on a constant currency basis. Companies define comparable store sales differently; thus, growth rates across companies may not be comparable.

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http://seekingalpha.com/pr/15242196-whole-foods-market-reports-fourth-quarter-results