Not all corporate language is universal and a glossary of terms is often helpful to define meaning and explain active financial terminology.
Adjusted Net Earnings
This is the net earnings of Empire and its subsidiary, Sobeys Inc. attributable to the owners of the company. However, this financial position is excluding certain items to better help analyze trends in performance and financial results.
Book Value Per Common Share
This is the total of the shareholder’s equity and net of non-controlling interest. However, it also includes dividing this number by the total common shares that are outstanding.
CAGR
This is an acronym standing for compound annual growth rate. It references the annual growth rate of an investment over a specified period of time longer than one year.
Capital Expenditures
These are the payments made for the acquisition of property, equipment, and investment property purchases under the Empire brand name.
EBITDA
This is an acronym for the total earnings before interest, tax, depreciation, and amortization. By definition, it means the net earnings prior to specific financial costs (net of the financial income) of items and intangibles.
EBITDA Margin
This is the total earnings before interest, tax, depreciation, and amortization divided by the sales totalled under the Sobeys Inc. name.
Adjusted EBITDA
This is also excluding certain items so a better financial position and performance understanding can be reached when analyzing specific data trends.
Free Cash Flow
This is the cash flow from operating activities. This is a financial position also inclusive of the proceeds on the disposal of property and the equipment and investment of property. This is exclusive of acquisitions of property, equipment, investment property, and intangibles.
Funded Debt
This pertains to all of Empire’s interest-bearing debt. This includes bank loans, bankers’ acceptances, long-term debt, and long-term lease liabilities.
Gross Profit
The gross profit and financial position of Empire and its subsidiary, Sobeys Inc., pertains to the sales minus the cost of those sales.
Gross Margin
The gross margin is the gross profit divided by the total sales.
Hedge
A hedge is a financial instrument used to manage the foreign exchange interest rate, energy, or other commodity risk. It does so by transacting that which offsets the existing position.
Interest Expense
An interest expense is a financial move to expense liabilities. These liabilities are measured at amortized cost and interest experience on lease.
Net Funded Debt
The net funded debt is the funded debt of Empire and its subsidiary, Sobeys Inc., minus the cash and cash equivalents.
Net Total Capital
The net total capital is the funded debt of business in addition to the shareholder’s equity and the net of non-controlling interest. However, this total is without the inclusivity of cash and cash equivalents.
Net Funded Debt to Net Total Capital
In reference to the phrase, “net funded debt to net total capital” is the definition that the net funded debt is divided by the net total capital.
Operating Income
The operating income is also named the earnings before interest and taxes (EBIT). This is calculated as net earnings from continuing operations prior to financial costs (net of the financial income) and income taxes.
Operating Income Margin
This is the operating income divided by the sales of Empire through its subsidiary, Sobeys Inc.
Private Label
A private label of Sobeys Inc. is a brand or line of products. They are wholly marketed, distributed, and owned by the company. Examples include Compliments and Panache.
ROE
This is the return on equity and defines the net earnings for the year. This is attributable to the owners of the parent company divided by the average shareholder’s equity.
Same-Store Sales
This verbiage of financial position is in reference to any sale made duplicate in multiple stores operating within the same location in both reporting periods.
Total Capital
The total capital for Empire and its subsidiary, Sobeys Inc., is the funded debt plus shareholder equity and the net of non-controlling interest.
Weighted Average Number of Shares
The weighted number of shares is the total number of Non-Voting Class A shares plus Class B common shares outstanding. This is then adjusted to account for the timeshares are outstanding within the reporting period.
Read More
Empire continues to provide transparency on its financial position and operations of its company and its subsidiary brand, Sobeys Inc. Additional information regarding annual and quarterly reporting and the overall capital structure of the company can be found through the links below.
