A&P Updates Financial Outlook

MONTVALE, N.J. — A newly revised financial projection for A&P [4]here predicts the company will still be showing a net loss by 2016, but EBITDA would rise to more than $300 million behind higher sales and more productive stores.

The projected figures — which the company stressed were subject to numerous contingencies — were disclosed as part of a revised disclosure statement filed with U.S. Bankruptcy Court this week. Previous filings did not disclose profits.

The projections show sales growing from $7.1 billion in the fiscal year ending Feb. 25, 2013, to $7.8 billion on the same date in 2016. Operating income, or earnings before interest and taxes, turns positive in 2013 and grows to $48.7 million in 2016, while EBITDA — including “self-help initiatives” including shrink reduction and other internal cost savings totaling $50 million to $75 million each year — will total $309.4 million in 2016, up from $17.4 million negative in fiscal 2012.

A net loss over that period narrows from $72.9 million for fiscal 2012 to $34.2 million for fiscal 2015.