Retail's gross margin for 2012 as compared to 2011 decreased from 24.7% to 22.2% due primarily to: (i) the factors impacting Retail's fourth quarter margins as outlined above; (ii) the acquisitions of Piller's and SJ part way through 2011 as both of these businesses generally have lower gross margins as compared to Retail's other businesses; and (iii) a change in selling terms whereby in the third quarter of 2011 certain customers began receiving their products FOB the Company's plant instead of FOB the customers' warehouses. This resulted in the elimination of freight being billed to these customers and corresponding decreases in gross profit and selling expenses.
Foodservice's gross margin for the fourth quarter of 2012 as compared to the fourth quarter of 2011 and for 2012 as compared to 2011 remained relatively stable.
Selling, General and Administrative Expenses (SG&A)
(in thousands of dollars except percentages) 13 weeks 14 weeks 52 weeks 53 weeks ended ended ended ended Dec 29, Dec 31, Dec 29, Dec 31, 2012 % 2011 % 2012 % 2011 %SG&A by segment: Retail 20,171 13.3% 20,621 13.5% 79,870 13.4% 67,417 15.4% Foodservice 12,047 13.0% 11,794 12.7% 48,530 13.1% 45,740 13.0% Corporate 1,119 1,619 5,695 6,200 -------------------------------------------------------------------------- Consolidated 33,337 13.7% 34,034 13.9% 134,095 13.8% 119,357 15.1% -------------------------------------------------------------------------- --------------------------------------------------------------------------
Retail's SG&A in the fourth quarter of 2012 as compared to the fourth quarter of 2011 decreased slightly due to: (i) an extra week of operations in 2011; and (ii) the rationalization of NDSD's distribution network. These decreases were mostly offset by: (i) increased marketing costs associated with the promotion of Piller's new "Simply Free" line of deli meats; and (ii) increases in a variety of variable selling costs associated with Retail's organic sales growth.
Retail's SG&A for 2012 as compared to 2011 increased by $12.5 million primarily due to: (i) the acquisitions of Piller's, SJ and Deli Chef in 2011 which resulted in an increase in Retail's SG&A of $13.5 million; and (ii) the factors impacting Retail's fourth quarter SG&A as outlined above. These items were partially offset by a decrease in freight costs due to the change in selling terms whereby in the third quarter of 2011 certain customers started receiving their products FOB the Company's plant instead of FOB the customers' warehouses (see Gross Profit).
Foodservice's SG&A in the fourth quarter of 2012 as compared to the fourth quarter of 2011 increased by $0.3 million while its SG&A for 2012 as compared to 2011 increased by $2.8 million. Both increases were due to: (i) increased costs associated with the development of the infrastructure needed to accelerate the growth of its seafood based initiatives; and (ii) a variety of items including higher variable selling costs associated with Foodservice's organic sales growth.
The reduction in Corporate's SG&A for the fourth quarter of 2012 as compared to the fourth quarter of 2011 and for 2012 as compared to 2011 was due to decreases in a variety of items including discretionary bonuses, corporate marketing costs, consulting fees and external accounting fees.
Adjusted EBITDA(in thousands of dollars except percentages) 13 weeks 14 weeks 52 weeks 53 weeks ended ended ended ended Dec 29, Dec 31, Dec 29, Dec 31, 2012 % 2011 % 2012 % 2011 %Adjusted EBITDA by segment: Retail 11,444 7.6% 11,385 7.5% 52,807 8.8% 40,577 9.3% Foodservice 4,686 5.1% 4,614 5.0% 21,144 5.7% 20,567 5.8% Corporate (1,119) (1,619) (5,695) (6,200) -------------------------------------------------------------------------- Consolidated 15,011 6.2% 14,380 5.9% 68,256 7.0% 54,944 7.0% -------------------------------------------------------------------------- --------------------------------------------------------------------------
