Albertson's, Inc., Reports Second Quarter Earnings Per Share of $0.50 Without Merger-Related Costs and One-Time Charges.Business Editors BOISE Boise, city, United States Boise (boi`sē, –zē), city (1990 pop. 125,738), state capital and seat of Ada co., SW Idaho, on the Boise River; inc. 1864. , Idaho--(BUSINESS WIRE)--Sept. 5, 2000 Albertson's, Inc. (NYSE NYSE See: New York Stock Exchange :ABS (Automatic Backup System) See backup program. ), one of the nation's largest food and drug retailing companies, today reported sales of $9.2 billion for the thirteen-week quarter ended August 3, 2000, an increase of 4.6% over the second quarter last year, excluding divested stores' sales. Identical store sales increased 1.2% and comparable store sales (which include replacement stores) increased 1.4%. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. without merger-related costs and one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges for the thirteen-week quarter was $447 million. Net earnings without merger-related costs and one-time charges were $211 million or 2.3% as a percent to sales. Basic and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of without merger-related costs and one-time charges were $0.50. On a FIFO (First In First Out) A storage method that retrieves the item stored for the longest time. Contrast with LIFO. See traffic engineering methods. FIFO - first-in first-out basis, earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Merger-related costs and one-time charges for the quarter amounted to $26 million ($17 million after tax, or $0.04 per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share). Including all merger-related costs and one-time charges, the Company reported net earnings of $194 million, or $0.46 per basic and diluted share, compared to a loss of $228 million, or ($0.54) per basic and diluted share for the second quarter of 1999. Sales for the 26 weeks ended August 3, 2000, were $18.2 billion, an increase of 4.4% over the same 26-week period last year, excluding divested stores' sales. Identical store sales increased 0.8% and comparable store sales increased 1.1%. Operating profit without merger-related costs and one-time charges was $900 million. Net earnings without merger-related costs and one-time charges were $437 million, or 2.4% as a percent to sales and $1.03 per diluted share. Merger-related costs and one-time charges were $103 million for the 26-week period ended August 3, 2000 ($64 million after tax, or $0.15 per basic and diluted share) which includes $102 million of period costs and $1 million in restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). costs. Including all merger-related costs and one-time charges, the Company reported net earnings for the 26 weeks of $373 million, or $0.88 per basic and diluted share, compared to net earnings of $10 million or $0.02 per basic and diluted share for the same 26-week period last year. Peter Lynch Lynch may be:
The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , said, "Clearly we are not happy with this quarter's earnings results. However, we have targeted areas in need of improvement and we have developed a strategic plan to address our current challenges. We are proceeding with our previously announced plans to invest gross profit to drive sales. In conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with those plans, we are developing marketing and merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. programs that will enable us to re-energize the center, or 'heart', of the store and maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. each and every retail store. We are focused on enhancing our current sales base and strengthening our current markets. Management's focus on fine-tuning In theoretical physics, fine-tuning refers to circumstances when the parameters of a model must be adjusted very precisely in order to agree with observations. Theories requiring fine-tuning are regarded as problematic in the absence of a known mechanism to explain why the our core business should enable the Company to better satisfy the needs of our customers, and in-turn, strengthen sales. Comparable store sales for August increased 0.9%." As previously announced, the Company has reestablished its culture of thrift thrift: see leadwort. and plans to reduce operating and interest expenses by $250 million in 2001. "We believe there are multiple opportunities to take costs out of our structure. We have put together a team of employees to help us pinpoint excessive costs and we will drive those costs out of the operation. This does not mean that we will cut corners or set unrealistic expectations; it does mean that we will eliminate all secondary costs that do not directly benefit ongoing operations or contribute to the success of our business," said A. Craig Craig , Edward Gordon 1872-1966. British theatrical producer, director, and designer whose innovative productions and simplified stage designs influenced modern theater. Olson Olson may refer to:
reapportion allocate, apportion - distribute according to a plan or set apart for a special purpose; "I am allocating a loaf of resources to get back to our lean operating structure and cost-efficient Adj. 1. cost-efficient - productive relative to the cost cost-effective efficient - being effective without wasting time or effort or expense; "an efficient production manager"; "efficient engines save gas" ways." Second quarter results reflect the Company's strong cash flow position with cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses totaling $775 million. As a result of the Company's very successful working capital reduction program, FIFO inventory has been reduced by almost $420 million year to date. In addition, total debt, excluding capital leases, has been reduced by $440 million year to date, including $165 million during the second quarter. The Company also has set a goal to reduce capital expenditures by $500 million over the next two and a half years. "We feel that an emphasis on our current store base is in the best interest of the Company. While we will continue to remodel re·mod·el tr.v. re·mod·eled also re·mod·elled, re·mod·el·ing also re·mod·el·ling, re·mod·els also re·mod·els To make over in structure or style; reconstruct. our stores to enhance the store base, we are scaling back on new store openings in order to allocate To reserve a resource such as memory or disk. See memory allocation. more resources to the improvement of stores currently in operation," said Mr. Lynch. As previously announced, the Company plans to invest gross profit to drive sales. As a result, the Company expects diluted earnings per share for fiscal year 2000, excluding merger-related costs, to be even with or slightly higher than 1999's diluted earnings per share of $2.26. During the second quarter the Company opened 17 combination food and drug stores, 1 conventional store, 6 stand-alone (jargon) stand-alone - Capable of operating without other programs, libraries, computers, hardware, networks, etc. Exactly what is absent is presumed to be obvious from context. "We only run Windows on stand-alone PCs because it's too dangerous to run it on networked ones." drugstores, 16 fuel centers and completed remodels on 13 supermarkets Supermarkets, past and present, include: Transnational Originating (HQ) country first. The rest in alphabetical order.
Pursuant to the stock buyback Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. program approved by Albertson's Board of Directors in April 2000, the Company purchased and retired 2,196,000 shares of its common stock during the second quarter at a total cost of $72.5 million. Year to date the Company has purchased and retired 2,893,000 shares at a total cost of $95 million. A conference call to review the second quarter results is scheduled for 3:00 p.m. (MDT MDT abbr. Mountain Daylight Time MDT (in the US and Canada) Mountain Daylight Time MDT n abbr (US) (= mountain daylight time) → ) today. A live webcast of the call will be available at www.albertsons Albertsons is a brand name currently used by two separate companies due to the 2006 split of Albertsons, Inc.:
Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , September 8 at 5:00 p.m. (MDT). To access PostView, call 1/800/633-8284, enter reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. number 16245054 and follow the instructions. For calls placed from outside the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , dial 858/812-6440. Albertson's, Inc., is one of the largest retail food and drug chains in the United States. Based in Boise, Idaho “Boise” redirects here. For other uses, see Boise (disambiguation). Boise is the capital and most populous city of the U.S. state of Idaho. It is the county seat of Ada County and the principal city of the Boise metropolitan area. , the Company currently operates over 2,500 retail stores in 36 states across the United States. The Company does not undertake to update forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. in this news release to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information. Assumptions and other information that could cause actual results to differ from those set forth in the forward-looking information can be found in the Company's filings with the Securities and Exchange Commission, including the Company's Form 10-Q Form 10-Q See 10-Q. .
ALBERTSON'S, INC.
(Unaudited - In millions except per share data)
Consolidated Earnings
13 Weeks Ended 13 Weeks Ended
August 3, 2000 July 29, 1999
----------------- -----------------
Sales $9,213 100.00% $9,381 100.00%
Cost of sales 6,572 71.33 6,826 72.76
----------------- -----------------
Gross profit 2,641 28.67 2,555 27.24
Selling, general and
administrative expenses 2,221 24.11 2,172 23.16
Merger-related (income) expense (1) (0.01) 458 4.88
----------------- -----------------
Operating profit 421 4.57 (75) (0.80)
Other (expenses) income:
Interest, net (99) (1.07) (78) (0.83)
Other, net 3 0.03 1 0.01
----------------- -----------------
Earnings before income taxes 325 3.53 (152) (1.62)
Income taxes 131 1.42 53 0.56
----------------- -----------------
Earnings (loss) before
extraordinary item 194 2.11 (205) (2.18)
Extraordinary loss on
extinguishment of debt,
net of tax benefit of $7 (23) (0.25)
----------------- -----------------
Net Earnings (Loss) $194 2.11% $ (228) (2.43)%
================= =================
Basic Earnings Per Share:
Earnings (loss) before
extraordinary item $0.46 ($0.49)
Extraordinary item (0.06)
----------------- -----------------
Net earnings (loss) $0.46 ($0.54)
================= =================
Diluted Earnings Per Share:
Earnings (loss) before
extraordinary item $0.46 ($0.49)
Extraordinary item (0.06)
----------------- -----------------
Net earnings (loss) $0.46 ($0.54)
================= =================
Weighted Average Number of
Common Shares Outstanding:
Basic 423 422
Diluted 423 422
LIFO charge before income taxes $6 $9
Consolidated Earnings
26 Weeks Ended 26 Weeks Ended
August 3, 2000 July 29, 1999
----------------- -----------------
Sales $18,227 100.00% $18,597 100.00%
Cost of sales 13,076 71.74 13,539 72.80
----------------- -----------------
Gross profit 5,151 28.26 5,058 27.20
Selling, general and
administrative expenses 4,353 23.88 4,230 22.75
Merger-related (income) expense 1 0.01 430 2.31
----------------- -----------------
Operating profit 797 4.37 398 2.14
Other (expenses) income:
Interest, net (182) (1.00) (160) (0.86)
Other, net 4 0.02 5 0.03
----------------- -----------------
Earnings before income taxes 619 3.40 243 1.31
Income taxes 246 1.35 210 1.13
----------------- -----------------
Earnings (loss) before
extraordinary item 373 2.05 33 0.18
Extraordinary loss on
extinguishment of debt,
net of tax benefit of $7 (23) (0.13)
----------------- -----------------
Net Earnings (Loss) $ 373 2.05% $ 10 0.06%
Basic Earnings Per Share:
Earnings (loss) before
extraordinary item $0.88 $0.08
Extraordinary item (0.06)
----------------- -----------------
Net earnings (loss) $0.88 $0.02
================= =================
Diluted Earnings Per Share:
Earnings (loss) before
extraordinary item $0.88 $0.08
Extraordinary item (0.06)
----------------- -----------------
Net earnings (loss) $0.88 $0.02
================= =================
Weighted Average Number of
Common Shares Outstanding:
Basic 423 421
Diluted 423 422
LIFO charge before income taxes $12 $18
Consolidated Earnings - Without Merger-Related Costs and
One-Time Charges
13 Weeks Ended 13 Weeks Ended
August 3, 2000 July 29, 1999
------------------ ------------------
Sales $9,213 100.00% $9,381 100.00%
Cost of sales 6,570 71.32 6,822 72.72
------------------ ------------------
Gross profit 2,643 28.68 2,559 27.28
Selling, general and
administrative expenses 2,196 23.84 2,089 22.27
------------------ ------------------
Operating profit 447 4.84 470 5.01
Other (expenses) income:
Interest, net (99) (1.07) (78) (0.82)
Other, net 3 0.03 1 0.01
------------------ ------------------
Earnings before
income taxes 351 3.81 393 4.19
Income taxes 140 1.52 157 1.68
------------------ ------------------
Net Earnings $211 2.29% $236 2.52%
================== ==================
Earnings Per Share:
Basic $0.50 $0.56
Diluted $0.50 $0.56
Return on average
stockholders' equity (1) 14.6% 17.0%
Return on average assets (1) 5.5% 6.2%
Effective tax rate 39.8% 40.0%
Consolidated Earnings - Without Merger-Related Costs and
One-Time Charges
26 Weeks Ended 26 Weeks Ended
August 3, 2000 July 29, 1999
------------------ ------------------
Sales $18,227 100.00% $18,597 100.00%
Cost of sales 13,053 71.61 13,535 72.78
------------------ ------------------
Gross profit 5,174 28.39 5,062 27.22
Selling, general and
administrative expenses 4,274 23.45 4,143 22.28
------------------ ------------------
Operating profit 900 4.94 919 4.94
Other (expenses) income:
Interest, net (182) (1.00) (160) (0.86)
Other, net 4 0.02 5 0.03
------------------ ------------------
Earnings before
income taxes 722 3.96 764 4.11
Income taxes 285 1.56 304 1.64
------------------ ------------------
Net Earnings $ 437 2.40% $ 460 2.47%
================== ==================
Earnings Per Share:
Basic $1.03 $1.09
Diluted $1.03 $1.09
Return on average
stockholders' equity (1) 15.1% 16.6%
Return on average assets (1) 5.6% 6.1%
Effective tax rate 39.5% 39.8%
(1) Annualized
-- Certain reclassifications have been made in the prior year to
conform to classifications used in the current year.
ALBERTSON'S, INC.
(Unaudited - In millions)
Consolidated Balance Sheets
August 3, 2000 July 29, 1999
-------------- -------------
Assets
Current Assets:
Cash and cash equivalents $ 107 $ 36
Inventories 3,123 3,113
Property held for resale 82 570
Other current assets 645 862
------- -------
Total Current Assets 3,957 4,581
Other Assets 428 339
Goodwill and other intangibles, net 1,737 1,816
Land, Buildings and
Equipment, net 9,197 8,386
------- -------
Total Assets $15,319 $15,122
======= =======
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $ 2,231 $ 2,161
Current portions of long-term
debt and capitalized lease
obligations 112 360
Other current liabilities 1,111 1,200
------- -------
Total Current Liabilities 3,454 3,721
Long-Term Debt 4,894 4,842
Capitalized Lease Obligations 207 201
Other Long-Term Liabilities
and Deferred Credits 940 898
Stockholders' Equity 5,824 5,460
------- -------
Total Liabilities and
Stockholders' Equity $15,319 $15,122
======= =======
Total Common Shares
Outstanding at End of Period 421 423
ALBERTSON'S, INC.
(Unaudited - In millions)
Consolidated Cash Flows
26 Weeks Ended 26 Weeks Ended
August 3, 2000 July 29, 1999
-------------- --------------
Cash Flows From
Operating Activities:
Net earnings $ 373 $ 10
Adjustments to reconcile net
earnings to net cash provided by
operating activities:
Depreciation and amortization 458 419
Goodwill amortization 28 30
Merger-related noncash expense 3 304
Net loss (gain) on asset sales 8 (2)
Net deferred income taxes 37 (83)
Increase in cash surrender
value of Company-owned
life insurance (4) (5)
Changes in operating
assets and liabilities 341 (55)
------- -------
Net cash provided by
operating activities 1,244 618
------- -------
Cash Flows From
Investing Activities:
Net capital expenditures (708) (823)
Decrease in other assets 17 8
------- -------
Net cash used in
investing activities (691) (815)
------- -------
Cash Flows From
Financing Activities:
Proceeds on long-term borrowings 515 1,300
Proceeds on bank borrowings 500
Payments on long-term borrowings (345) (835)
Net commercial paper and
bank line activity (601) (756)
Proceeds from stock options
exercised 5 20
Cash dividends paid (156) (112)
Stock purchased and retired (95)
------- -------
Net cash (used in) provided by
financing activities (677) 117
------- -------
Net Decrease in Cash
and Cash Equivalents (124) (80)
Cash and Cash Equivalents
at Beginning of Period 231 116
------- -------
Cash and Cash Equivalents
at End of Period $ 107 $ 36
======= =======
-- Certain reclassifications have been made in the prior year to
conform to classifications used in the current year.
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