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DELCHAMPS ANNOUNCES SECOND QUARTER RESULTS

 MOBILE, Ala., Jan. 13 /PRNewswire/ -- Delchamps, Inc. (NASDAQ-NMS: DLCH) announced today that sales for the 13-week period ended Jan. 1, 1994 were $274,506,000, an increase of 9.7% compared with sales of $250,228,000 for the same period last fiscal year.
 Sales of stores open in both 13-week periods increased 4.4%. Sales for the 26-week period ended Jan. 1, 1994, were $541,076,000 compared with sales of $505,602,000 for last year's period, an increase of 7.0%. Sales of stores open in both 26-week periods increased 2.6%.
 Net earnings for the 36-week period ended Jan. 1, 1994, were $2,471,000 compared with $3,528,000 earned during the same period last fiscal year, a decrease of 30.0%. For the 26-week period ended Jan. 1, 1994, net earnings were $6,592,000 compared with $6,526,000 for the previous fiscal year, an increase of 1.0%. The earnings for the current 26-week period includes the effect of adopting Statement of Financial Accounting Standard No. 109 ("SFAS No. 109"), "Accounting For Income Taxes." Excluding the effect of SFAS No. 109 on the results for the current 26-week period, earnings decreased 12.8%
 Randy Delchamps, chairman of the board of directors, president and chief executive officer said: "We are pleased to report significant increases in sales and market share for both this quarter and 26-weeks. While promotional activity has contributed to this sales and market share growth, promotional markdowns are clearly reflected in earnings for the quarter. We are committed to keep our business competitive while taking the necessary steps to improve the margins of the company and keeping our focus on expense levels." Delchamps further stated that the management team is focused on resuming its earning growth trend while protecting the positive sales and increased market share and continuing to aggressively respond to competitive activity.
 During the second quarter, the company opened one liquor store and remodeled and expanded one supermarket. During the first half of the fiscal year, Delchamps opened one supermarket, remodeled and expanded three supermarkets, and opened one liquor store. The company now operates 119 supermarkets in Louisiana, Mississippi, Alabama and Florida, and 11 liquor stores in Florida. The company employs over 8,200 associates.
 DELCHAMPS, INC. AND SUBSIDIARY
 Condensed Statements of Earnings
 (In thousands except per share amounts)
 (Unaudited)
 13 weeks ended 1/1/94 12/26/92
 Amount Pct. sales Amount Pct. sales
 Sales $274,506 100.00 250,228 100.00
 Cost of sales 207,139 75.46 184,915 73.90
 Gross profit 67,367 24.54 65,313 26.10
 Selling, general and
 administrative expenses 62,557 22.79 58,344 23.32
 Operating income 4,810 1.75 6,969 2.78
 Other expense 1,023 .37 1,353 .54
 Earnings before income taxes
 and cumulative effect of
 change in accounting for
 income taxes 3,787 1.38 5,616 2.24
 Income taxes 1,316 .48 2,088 .83
 Earnings before cumulative
 effect of change in
 accounting for income taxes 2,471 .90 3,528 1.41
 Cumulative effect of change
 in accounting for income
 taxes --- --- --- ---
 Net earnings $ 2,471 .90 3,528 1.41
 Earnings per common share:
 Earnings before cumulative
 effect of change in
 accounting for income
 taxes $ .35 .50
 Cumulative effect of chg.
 in accounting of income
 taxes --- ---
 Net earnings per common
 share $ .35 .50
 Weighted average number of
 common shares 7,114 7,114
 Dividends declared per common
 share $.11 .11
 26 weeks ended 1/1/94 12/26/92
 Amount Pct. sales Amount Pct. sales
 Sales $541,076 100.00 505,602 100.00
 Cost of sales 404,949 74.84 376,589 74.48
 Gross profit 136,127 25.16 129,013 25.52
 Selling, general and
 administrative expenses 125,176 23.13 116,018 22.95
 Operating income 10,951 2.03 12,995 2.57
 Other expense 2,071 .38 2,673 .53
 Earnings before income taxes
 and cumulative effect of
 change in accounting for
 income taxes 8,880 1.64 10,322 2.04
 Income taxes 3,188 .59 3,796 .75
 Earnings before cumulative
 effect of change in
 accounting for income taxes 5,692 1.05 6,526 1.29
 Cumulative effect of change
 in accounting for income
 taxes 900 .17 --- ---
 Net earnings $ 6,592 1.22 6,526 1.29
 Earnings per common share:
 Earnings before cumulative
 effect of change in
 accounting for income
 taxes $ .80 .92
 Cumulative effect of chg.
 in accounting of income
 taxes .13 ---
 Net earnings per common
 share $ .93 $ .92
 Weighted average number of
 common shares 7,114 7,114
 Dividends declared per common
 share $.22 .22
 -0- 1/13/94
 /CONTACT: George Waldron, vice president, Marketing & Corporate Relations, Delchamps, 205-433-0431, ext. 240/
 (DLCH)


CO: Delchamps, Inc. ST: Alabama IN: REA SU: ERN

JS-BR -- AT001 -- 1642 01/13/94 07:34 EST
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