Albertsons 2014 Annual Report Download - page 2

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Dear SUPERVALU Stockholders,
Fiscal 2014 was a year of transition for SUPERVALU as we completed
the sale of five retail banners and began a new chapter in our company’s
history.
I am pleased with our overall financial performance. Fiscal 2014 marked
improved business performance following several years of declining
revenues and market capitalization. Full year sales were $17.2 billion,
up slightly from fiscal 2013. Adjusted EBITDA, an important internal
measure, totaled $772 million.(1)
As I became president and chief executive officer, my highest priorities
were to stabilize the company, lower our cost structure, and realign our
talent needs. We brought in a strong new management team with significant industry experience. We
focused on simplifying our operations with a view toward driving top-line sales while managing costs.
Thanks to the hard work, dedication, and professionalism of our employees, we accomplished these
objectives.
In an industry where trust and confidence are so important, we were also able to strengthen a number
of key relationships that are critical to our future success.
• Our independent retailers and Save-A-Lot licensees have told me how pleased they are with the
changes that have been made at SUPERVALU and have a renewed outlook on our future.
• Our suppliers, particularly around perishable items, are working more closely with our
merchandising team and collectively focusing on what we can accomplish.
• Our financial stakeholders, including banks as well as debt and equity holders, continue to
support SUPERVALU.
• Our employees, who have experienced several challenging years, have a newfound confidence
in the company and the direction we are heading.
As I look forward to fiscal 2015, I am excited about the prospects for all three of our business segments.
Our Save-A-Lot operation is poised for net store count growth this year and we believe this growth will
accelerate thereafter. We recently re-organized our Independent Business region operating structure,
which I believe will benefit us and our current customers and improve our new customer affiliation
prospects. Lastly, our Retail Food banners made significant strides this past year in implementing our
operating model and improving their promotional strategies, and I look for them to drive continued
sales gains this year.
I want to thank all of our stakeholders for their support and trust these past twelve months. I came to
SUPERVALU because I sincerely believed in the opportunity to create value and put this great company
back on a path for future success. We accomplished a great deal last year but our work is never done.
I look forward to updating you on our progress.
Sam Duncan
President and Chief Executive Officer
(1) Adjusted EBITDA is a non-GAAP measure and excludes certain charges. See pages 40-41 for a reconciliation.