Albertson's, Inc. Reports 29th Consecutive Year of Increased Sales and Earnings.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)--March 1, 1999--Albertson's, Inc. (NYSE NYSE See: New York Stock Exchange :ABS (Automatic Backup System) See backup program. ) reports increased sales and earnings for the quarter and year ended January January: see month. 28, 1999. Annual sales for the 1998 fiscal year increased 9.0% to $16.0 billion compared with $14.7 billion last year. Identical store sales for the year increased 0.3% and comparable store sales, which include replacement stores, increased 0.5%. 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. for the year was $973.2 million, an increase of 9.1% over the prior year. Net earnings for the year increased 9.7% to $567.2 million from $516.8 last year. 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 increased 10.6% to $2.30 from $2.08 per share last year. Operating profit for the year included a $24.4 million charge (Impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. -- store closures) related to management's decision to close 16 underperforming stores in 8 states. Excluding this charge, operating profit would have been $997.6 million, an increase of 11.9% over the $891.7 million last year. Net earnings for the year would have been $582.6 million, an increase of 12.7% over last year. Diluted earnings per share would have increased 13.5% to $2.36 per share. Sales increased 10.1% to $4.2 billion for the 13 weeks ended January 28, 1999. Identical store sales increased 0.3% and comparable store sales increased 0.4%. Net earnings were $190.4 million compared to $174.7 million last year, an increase of 9.0%. Diluted earnings per share increased 8.5% to $0.77 per share from $0.71 per share for the fourth quarter last year. The Company ended the fiscal year with 983 retail stores and total operating square footage of 48.4 million square feet, a net increase of 13.1% over the last 12 months. Albertson's opened 17 stores during the fourth quarter for a Company record of 132 stores opened during the year. Included in the 132 stores were 74 stores that were acquired during the year. During the fourth quarter the Company completed remodels on 11 stores and strategic retrofits on 13 stores for a total of 27 remodels and 30 strategic retrofits completed during the year. Three stores were closed during the fourth quarter for a total of 27 closures during the fiscal year. 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:
"In addition, we have continued to focus on our pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. business which is growing at a tremendous rate due to demographic See demographics. factors and the increased use of prescriptions to cure, treat and prevent hundreds of diseases. The pending American Stores American Stores was the name of a United States chain of supermarkets. It was formed in 1917 when Acme Markets merged with four other Philadelphia area grocery chains into American Stores. American Stores would grow to 1,700 stores in 40 states with $15 billion in sales. merger will provide us with a new format to take advantage of this growth -- the 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." drugstore. We expect to complete the merger during the Company's 1999 first fiscal quarter or early in the second fiscal quarter. We are ready to begin integrating Albertson's and American Stores when the merger is completed, and we look forward to the many opportunities provided by this combination." The Company also reported sales trends for the four-week period ended February February: see month. 25, 1999. Total sales increased 9.8%; identical store sales increased 1.9% and comparable store sales, which include replacement stores, increased 2.0% over the similar four-week period last year. The Company will discontinue dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: its monthly sales reporting and will only report quarterly sales with its quarterly earnings release. Albertson's, Inc. is one of the largest retail food-drug chains in 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. . The 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. based company currently operates 985 retail stores in 25 Western, Midwestern Mid·west or Middle West A region of the north-central United States around the Great Lakes and the upper Mississippi Valley. It is generally considered to include Ohio, Indiana, Illinois, Michigan, Wisconsin, Minnesota, Iowa, Missouri, Kansas, and and Southern states Southern States U.S. Confederacy government of 11 Southern states that left the Union in 1860. [Am. Hist.: EB, III: 73] Dixie popular name for Southern states in U.S. and for song. [Am. Hist. . 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, if any, are not updated 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 Form 10-Q Form 10-Q See 10-Q. and Joint Proxy Statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. and Prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. , filed with the Securities and Exchange Commission. -0-
ALBERTSON'S, INC.
(Unaudited -- In thousands except per share data)
Consolidated Earnings
13 Weeks Ended 13 Weeks Ended
01/28/99 01/29/98
Sales $4,171,351 100.00% $3,789,429 100.00%
Cost of sales 2,987,232 71.61 2,742,351 72.37
Gross profit 1,184,119 28.39 1,047,078 27.63
Selling, general and
administrative expenses 883,891 21.19 760,164 20.06
Impairment - store closures (5,016) (0.12)
Operating profit 305,244 7.32 286,914 7.57
Other (expenses) income:
Interest, net (28,951) (0.69) (21,320) (0.56)
Other, net 15,728 0.38 9,873 0.26
Earnings before income taxes 292,021 7.00 275,467 7.27
Income taxes 101,633 2.44 100,764 2.66
Net Earnings $190,388 4.56% $174,703 4.61%
Earnings Per Share:
Basic $0.78 $0.71
Diluted $0.77 $0.71
Weighted average number of
common shares outstanding:
Basic 245,618 245,642
Diluted 246,979 246,590
Total common shares
outstanding at end
of period 245,697 245,736
Return on average
stockholders' equity (1) 27.9% 29.7%
Return on average assets (1) 12.4% 13.7%
Dividends per share $0.17
$16,005,115 100.00% $14,689,511 100.00%
Cost of sales 11,622,026 72.61 10,807,687 73.57
Gross profit 4,383,0enses) income:
Interest, net (107,074) (0.
Earnings Per Share:
Basic c 245,637 247,735
Diluted 246,808
Return on average %
LIFO charge (credit) before
income taxes $8,285 $9,171
(1) Annualized for the thirteen weeks ended January 28, 1999 and
January 29, 1998.
Note: Certain reclassifications have been made in the prior year to
conform to classifications used in the current year.
ALBERTSON'S, INC.
(Unaudited - In thousands)
Consolidated Balance Sheets
01/28/99 01/29/98
Assets
Current Assets:
Cash and cash equivalents $80,646 $108,083
Inventories 1,503,164 1,308,578
Other current assets 250,095 211,196
Total Current Assets 1,833,905 1,627,857
Other Assets 277,728 207,360
Goodwill, Net of
Accumulated Amortization 148,322
Land, Buildings and
Equipment, Net of Accumulated
Depreciation and Amortization 3,974,013 3,383,373
Total Assets $6,233,968 $5,218,590
------------ ------------
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $873,956 $742,557
Current portions of long-term
debt and capitalized lease
obligations 18,338 96,119
Other current liabilities 486,537 436,843
Total Current Liabilities 1,378,831 1,275,519
Long-Term Debt 1,527,432 989,650
Capitalized Lease Obligations 157,102 140,957
Other Long-Term Liabilities
and Deferred Credits 360,149 393,008
Stockholders' Equity 2,810,454 2,419,456
Total Liabilities and
Stockholders' Equity $6,233,968 $5,218,590
------------ ------------
Consolidated Cash Flows
52 Weeks Ended 52 Weeks Ended
01/28/99 01/29/98
Cash Flows From
Operating Activities:
Net earnings $567,153 $516,814
Adjustments to reconcile
net earnings to net cash
provided by operating
activities:
Depreciation and
amortization 375,395 328,795
Net deferred income taxes (27,968) (1,299)
Increase in cash surrender
value of Company-owned
life insurance (22,670) (14,113)
Impairment - store closures 24,407
Changes in operating
assets and liabilities (90,871) 37,950
Net cash provided by
operating activities 825,446 868,147
Cash Flows From
Investing Activities:
Net capital expenditures (786,741) (636,955)
Business acquisitions,
net of cash acquired (259,672)
Increase in other assets (9,274) (14,258)
Net cash used in
investing activities (1,055,687) (651,213)
Cash Flows From
Financing Activities:
Proceeds from long-term
borrowings 317,000 200,000
Payments on long-term
borrowings (154,692) (8,995)
Net commercial paper activity 216,954 (45,692)
Proceeds from stock options
exercised 4,644 5,206
Cash dividends paid (164,584) (156,261)
Stock purchased and retired (16,518) (193,974)
Net cash provided by
(used in) financing
activities 202,804 (199,716)
Net (Decrease) Increase in Cash
and Cash Equivalents (27,437) 17,218
Cash and Cash Equivalents
at Beginning of Year 108,083 90,865
Cash and Cash Equivalents
at End of Year $80,646 $108,083
-------------- ------------
Note: Certain reclassifications have been made in the prior year to
conform to classifications used in the current year.
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