Albertson's Second Quarter Earnings Exceed Targets Driven by Strong Sales Momentum; Company Reports Earnings Per Share of $0.45 Before Restructuring and Other 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. 4, 2001 Signaling a continued acceleration acceleration, change in the velocity of a body with respect to time. Since velocity is a vector quantity, involving both magnitude and direction, acceleration is also a vector. In order to produce an acceleration, a force must be applied to the body. of its business turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. , Albertson's, Inc. (NYSE NYSE See: New York Stock Exchange :ABS (Automatic Backup System) See backup program. ) one of the world's largest food and drug retailers, today reported second quarter earnings that exceeded both company guidance and First Call consensus estimates. Sales in the quarter totaled almost $9.6 billion. Before 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). and other charges 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. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. were $0.45 and net earnings for the period totaled $184 million. Company guidance for EPS was at least $0.43 and First Call consensus was $0.44. Larry Johnston Larry Johnston was a Manitoba politician and activist. In 1977, he was a leading figure in the province's Revolutionary Workers League, a Trotskyist organization aligned with the national party of the same name. , Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. said, "We are very encouraged by these results and remain committed to taking the steps necessary to unleash the full shareholder value that is inherent in this great company. The results we are reporting today prove that the plans we have implemented are beginning to give us traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. to continue moving the company in the right direction. We will continue taking the steps necessary to sustain our positive momentum, remaining sharply focused on our five strategic imperatives." For the 13 week period ended August 2, 2001, total sales increased 3.9% when compared to the year earlier period. Comparable store sales, including replacements increased 1.9% and identical store sales increased 1.5%. As previously announced, the company recorded a charge in the second quarter to cover a major portion of its recently announced restructuring program. The second quarter charge totaled $558 million pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern , $0.82 per share, covering severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when benefits, asset impairments and lease terminations including $450 million in noncash charges Noncash charge A cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow. That is, this is treated as an accounting expense -- not a real expense that demands cash. . Mr. Johnston Johnston, town (1990 pop. 26,542), Providence co., N central R.I., a suburb of Providence; inc. 1759. Among its manufactures are jewelry, textiles, and fabricated metals. Johnston is the home of several insurance companies. said, "This restructuring plan is a major step in returning Albertson's to peak competitive condition. The associated charges will be justified in a relatively short period of time by the company's improved performance." Including restructuring and other charges, the company reported a net loss for the quarter of $151 million or $0.37 per share. Commenting on the company's positive sales momentum, Peter Lynch Lynch may be:
adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: products, will result in both strong sales and improved gross margins." Discussing the progress on expense ratios, Mr. Lynch said, "During the quarter, the company also saw a continued narrowing of the gap in our Selling, General and Administrative (SG&A) expenses versus the prior year. Costs such as labor, maintenance, supplies, and other retail expenses continued to decline. Going forward, our recently announced restructuring plan and the many new cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. programs being implemented in every corner of this company will positively impact our SG&A expense ratios. As the savings from these aggressive programs begin to accelerate over the next several quarters, we expect to see a continued narrowing of the SG&A expense gap versus the previous year. Eventually these costs should begin consistently tracking below prior year actuals Actuals 1. A term used to describe the underlying in future and forward contracts, dealing with commodities rather than financial instruments. 2. A term used to describe a securities historical volatitity. Notes: 1. as we move toward our goal of reaching industry leading levels of efficiency. It is this combination of cost discipline and robust sales momentum that will yield the operational excellence we are striving for at Albertson's." Johnston concluded saying, "While we are extremely encouraged by this progress, it is still too early in our game plan to provide long term guidance on the company's earnings per share. We are however, looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. earnings per share of $0.44 for the third quarter. This will be accomplished by realizing the benefits from our restructuring actions while simultaneously si·mul·ta·ne·ous adj. 1. Happening, existing, or done at the same time. See Synonyms at contemporary. 2. Mathematics achieving our comparable store sales growth targets. It is also important to note that while we anticipate completing roughly one half of our 165 announced store closures this fiscal year, we still expect fiscal year 2001 sales to reach at least $38 billion, which will represent an increase of $1.2 billion over the prior year." Albertson's is one of the world's largest food and drug retailing companies, with annual revenues of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $37 billion. 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 employs more than 235,000 associates and operates more than 2,500 retail stores in 36 states across the U.S. Its banners include Albertson's, Jewel-Osco, Acme (company, jargon) ACME - /ak'mee/ 1. A Company that Makes Everything. The canonical imaginary business. Possibly also derived from the word "acme" meaning "highest point". 2. A program for MS-DOS. , Osco Drug Osco Drug is a chain of pharmacy stores which operate under Supervalu Pharmacies. Most Oscos currently can be found in Jewel supermarkets. Since 2006, Osco is a wholly owned subsidiary of Supervalu Pharmacies of Eden Prairie, Minnesota-based Supervalu. , Sav-on Drugs, Max Foods, Super Saver Super saver may refer to:
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of to discuss the second quarter's earnings at 3:00 p.m. (EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ) today, September September: see month. 4. The meeting will be simulcast Simulcast is a portmanteau of "simultaneous broadcast", and refers to programs or events broadcast across more than one medium, or more than one service on the same medium, at the same time. on the Albertson's website, www.albertsons Albertsons is a brand name currently used by two separate companies due to the 2006 split of Albertsons, Inc.:
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 2, 2001 August 3, 2000
----------------------------------------------------------------------
Sales $ 9,577 100.00% $ 9,214 100.00%
Cost of sales 6,862 71.64 6,572 71.33
----------------------------------------------------------------------
Gross profit 2,715 28.36 2,642 28.67
Selling, general and
administrative expenses 2,341 24.45 2,222 24.11
Restructuring charges and other 510 5.33
Merger-related (income) expense (1) (0.01) (1) (0.01)
----------------------------------------------------------------------
Operating (loss) profit (135) (1.41) 421 4.57
Other (expenses) income:
Interest, net (111) (1.16) (99) (1.07)
Other, net (1) (0.01) 3 0.03
----------------------------------------------------------------------
(Loss) earnings before
income taxes (247) (2.58) 325 3.53
Income tax (benefit) expense (96) (1.00) 131 1.42
----------------------------------------------------------------------
Net (Loss) Earnings $ (151) (1.58)% $ 194 2.11%
------------------ -------------------
(Loss) Earnings Per Share:
Basic ($0.37) $0.46
Diluted ($0.37) $0.46
Weighted Average
Common Shares Outstanding:
Basic 406 423
Diluted 408 423
LIFO charge before income taxes $7 $6
----------------------------------------------------------------------
26 Weeks Ended 26 Weeks Ended
August 2, 2001 August 3, 2000
----------------------------------------------------------------------
Sales $ 18,908 100.00% $18,227 100.00%
Cost of sales 13,535 71.58 13,069 71.70
----------------------------------------------------------------------
Gross profit 5,373 28.42 5,158 28.30
Selling, general and
administrative expenses 4,578 24.21 4,360 23.92
Restructuring charges and other 510 2.70
Merger-related (income) expense (15) (0.08) 1 0.01
----------------------------------------------------------------------
Operating (loss) profit 300 1.59 797 4.37
Other (expenses) income:
Interest, net (219) (1.16) (182) (1.00)
Other, net (12) (0.06) 4 0.02
----------------------------------------------------------------------
(Loss) earnings before
income taxes 69 0.36 619 3.40
Income tax (benefit) expense 34 0.18 246 1.35
----------------------------------------------------------------------
Net (Loss) Earnings $ 35 0.18% $ 373 2.05%
-------------------------------------
(Loss) Earnings Per Share:
Basic $0.09 $0.88
Diluted $0.09 $0.88
Weighted Average
Common Shares Outstanding:
Basic 406 423
Diluted 408 423
LIFO charge before income taxes $15 $12
----------------------------------------------------------------------
Consolidated Earnings - Before Restructuring and Other Charges
13 Weeks Ended 13 Weeks Ended
August 2, 2001 August 3, 2000
----------------------------------------------------------------------
Sales $ 9,577 100.00% $ 9,214 100.00%
Cost of sales 6,862 71.64 6,571 71.32
----------------------------------------------------------------------
Gross profit 2,715 28.36 2,643 28.68
Selling, general and
administrative expenses 2,291 23.93 2,196 23.84
----------------------------------------------------------------------
Operating profit 424 4.43 447 4.84
Other (expenses) income:
Interest, net (111) (1.16) (99) (1.07)
Other, net (1) (0.01) 3 0.03
----------------------------------------------------------------------
Earnings before
income taxes 312 3.26 351 3.81
Income taxes 128 1.34 140 1.52
----------------------------------------------------------------------
Net Earnings $ 184 1.92% $ 211 2.29%
--------------------------------------------
Earnings Per Share:
Basic $0.45 $0.50
Diluted $0.45 $0.50
Return on average
stockholders'
equity (1) 12.9% 14.6%
Return on average
assets (1) 4.5% 5.5%
Effective tax rate 41.0% 39.8%
26 Weeks Ended 26 Weeks Ended
August 2, 2001 August 3, 2000
----------------------------------------------------------------------
Sales $ 18,908 100.00% $ 18,227 100.00%
Cost of sales 13,535 71.58 13,046 71.57
----------------------------------------------------------------------
Gross profit 5,373 28.42 5,181 28.43
Selling, general and
administrative expenses 4,515 23.88 4,281 23.49
----------------------------------------------------------------------
Operating profit 858 4.54 900 4.94
Other (expenses) income:
Interest, net (219) (1.16) (182) (1.00)
Other, net (12) (0.06) 4 0.02
----------------------------------------------------------------------
Earnings before
income taxes 627 3.31 722 3.96
Income taxes 257 1.36 285 1.56
----------------------------------------------------------------------
Net Earnings $ 370 1.96% $ 437 2.40%
--------------------------------------------
Earnings Per Share:
Basic $0.91 $1.03
Diluted $0.91 $1.03
Return on average
stockholders'
equity (1) 13.1% 15.1%
Return on average
assets (1) 4.6% 5.6%
Effective tax rate 41.0% 39.5%
----------------------------------------------------------------------
(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 2, 2001 August 3, 2000
------------------------------------------------ -------------
Assets
Current Assets:
Cash and cash equivalents $ 140 $ 120
Inventories 3,236 3,123
Property held for sale 257 82
Other current assets 960 646
------------------------------------------------ ----------
Total Current Assets 4,593 3,971
Other Assets 444 428
Goodwill and
Other Intangibles, net 1,628 1,741
Land, Buildings and
Equipment, net 9,212 9,195
------------------------------------------------ ----------
Total Assets $ 15,877 $ 15,335
------------ ----------
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $ 2,132 $ 2,234
Current portions of long-term
debt and capitalized lease
obligations 139 112
Other current liabilities 1,282 1,111
------------------------------------------------ -----------
Total Current Liabilities 3,553 3,457
Long-Term Debt 5,492 4,894
Capitalized Lease Obligations 244 207
Other Long-Term Liabilities
and Deferred Credits 985 953
Stockholders' Equity 5,603 5,824
------------------------------------------------ -----------
Total Liabilities and
Stockholders' Equity $ 15,877 $ 15,335
------------ -----------
Total Common Shares
Outstanding at End of Period 406 421
Consolidated Cash Flows
26 Weeks Ended 26 Weeks Ended
August 2, 2001 August 3, 2000
---------------------------------------------------- -------------
Cash Flows From
Operating Activities:
Net earnings $ 35 $ 373
Adjustments to reconcile net
earnings to net cash provided by
operating activities:
Depreciation and amortization 495 458
Goodwill amortization 28 28
Merger-related noncash (income) expense (13) 3
Restructuring and other noncash charges 454
Net loss on asset sales 12 8
Net deferred income taxes and other (199) 37
Decrease (Increase) in cash surrender
value of Company-owned
life insurance 13 (4)
Changes in operating
assets and liabilities 182 340
---------------------------------------------------- -------------
Net cash provided by
operating activities 1,007 1,243
---------------------------------------------------- -------------
Cash Flows From
Investing Activities:
Net capital expenditures (708) (708)
Decrease in other assets 80 17
---------------------------------------------------- -------------
Net cash used in
investing activities (628) (691)
---------------------------------------------------- -------------
Cash Flows From
Financing Activities:
Payments on long-term borrowings (27) (345)
Proceeds from long-term borrowings 613 515
Net commercial paper and
bank line activity (743) (601)
Proceeds from stock options
exercised 15 5
Cash dividends paid (154) (156)
Stock purchased and retired (95)
---------------------------------------------------- -------------
Net cash used in
financing activities (296) (677)
---------------------------------------------------- -------------
Net Increase (Decrease) in Cash
and Cash Equivalents 83 (125)
Cash and Cash Equivalents
at Beginning of Period 57 245
---------------------------------------------------- -------------
Cash and Cash Equivalents
at End of Period $140 $ 120
--------- -------------
-- Certain reclassifications have been made in the prior year to
conform to classifications used in the current year.
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