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SMITH'S FOOD & DRUG CENTERS REPORTS INCREASED SALES AND NET INCOME FOR FIRST QUARTER 1992

 SMITH'S FOOD & DRUG CENTERS REPORTS INCREASED SALES
 AND NET INCOME FOR FIRST QUARTER 1992
 SALT LAKE CITY, April 28 /PRNewswire/ -- Smith's Food & Drug Centers Inc. (NYSE: SFD) today reported increased sales and net income for the first quarter 1992.
 Sales for the first quarter ended April 4, 1992 totaled $670 million compared to $533 million for the like quarter last year, an increase of 26 percent. Adjusting for the additional week in the first quarter of fiscal 1992 (14 weeks compared to 13 weeks) the sales increase would have been 18 percent. Net income was $13.1 million, up 26 percent over the $10.4 million reported last year. Net income per common share, diluted by additional shares issued in connection with the public offering in July 1991, was 44 cents compared to 41 cents, an increase of 7 percent. Sales in comparable stores increased 1 percent over the first quarter of the prior year.
 The increase in sales was a result of our store expansion program. In the last quarter of fiscal 1991, we opened 10 large combination food and drug centers. At April 4, 1992, we operated 109 stores totaling 6.8 million square feet compared to 95 stores totaling 5.6 million square feet at the end of prior year's first quarter. During the quarter one combination center was opened in Moreno Valley, Calif. and a conventional store in Las Vegas was closed. The expansion plan for the remainder of fiscal 1992 is to open 14 stores totaling approximately 1.1 million square feet including 10 stores in Southern California. The increase in square footage will be approximately 16 percent. As in fiscal 1991, most of these new stores will be opened during the last half of the year.
 Improvements in gross margins and net margins were caused by several factors. Stores opened during recent years have continued to build volume effecting economies of scale which added to profitability. Improvements and additions to our distribution facilities generated additional savings. Also the consumers purchased more private label products which yield higher margins to the company while giving the consumer a lower price. The improvement in margins was partially offset by higher operating costs due to our entry into California.
 The board of directors increased the regular quarterly dividend to 11 cents per common share or 44 cents annually, the first of which was paid to stockholders on March 12, 1992.
 Smith's is a leading regional supermarket chain operating 109 stores in eight western states. Of these stores, 93 are large combination food and drug centers.
 SMITH'S FOOD & DRUG CENTERS INC.
 Condensed Consolidated Statements of Income
 (Unaudited)
 (Amounts in thousands except per share data)
 Fourteen Weeks Ended Thirteen Weeks Ended
 April 4, 1992 March 30, 1991
 Net sales $669,511 $532,922
 Cost of goods sold 518,282 416,067
 151,229 116,855
 Expenses:
 Operating, selling
 and administrative 106,899 82,639
 Depreciation and
 amortization 14,306 10,276
 Interest 8,476 7,234
 129,681 100,149
 INCOME BEFORE
 INCOME TAXES 21,548 16,706
 Income taxes 8,400 6,300
 NET INCOME $13,148 $10,406
 Net income per
 common share $.44 $.41
 Average common
 shares outstanding 29,962 25,272
 Condensed Consolidated Balance Sheets
 (Unaudited)
 (In thousands)
 April 4, March 30,
 1992 1991
 ASSETS
 CURRENT ASSETS
 Cash and cash equivalents $ 14,649 $ 17,031
 Receivables 12,717 10,661
 Inventories 290,434 209,821
 Other current assets 34,073 3,767
 TOTAL CURRENT ASSETS 351,873 241,280
 PROPERTY AND EQUIPMENT
 Land 221,138 159,795
 Buildings 475,650 356,948
 Leasehold improvements 28,831 26,436
 Fixtures and equipment 358,788 296,896
 1,084,407 840,075
 Less allowances (166,816) (142,769)
 TOTAL PROPERTY AND EQUIPMENT 917,591 697,306
 OTHER ASSETS 11,437 8,927
 $1,280,901 $947,513
 LIABILITIES AND STOCKHOLDERS' EQUITY
 CURRENT LIABILITIES
 Trade accounts payable $ 168,922 $156,261
 Accrued taxes 36,162 28,323
 Other accrued liabilities 53,450 44,082
 Current maturities 21,071 17,466
 TOTAL CURRENT LIABILITIES 279,605 246,132
 LONG-TERM DEBT 460,516 376,590
 DEFERRED INCOME TAXES 49,000 40,000
 REDEEMABLE PREFERRED STOCK 7,401 8,448
 COMMON STOCKHOLDERS' EQUITY 484,379 276,343
 $1,280,901 $947,513
 Condensed Consolidated Statements of Cash Flows
 (Unaudited)
 (In thousands)
 Fourteen Weeks Ended Thirteen Weeks Ended
 April 4, 1992 March 30, 1991
 OPERATING ACTIVITIES:
 Net income $13,148 $10,406
 Adjustments to
 reconcile net
 income to net cash
 provided by operating
 activities:
 Depreciation and
 amortization 15,367 10,943
 Deferred income taxes 2,800 2,300
 Other 141 54
 31,456 23,703
 Changes in operating
 assets and liabilities:
 Receivables 2,357 4,640
 Inventories (7) (190)
 Other current assets (30,218) (156)
 Trade accounts payable (11,461) (6,071)
 Accrued taxes 5,320 16
 Other accrued
 liabilities (7,532) 923
 CASH PROVIDED (USED)
 BY OPERATING
 ACTIVITIES (10,085) 22,865
 INVESTING ACTIVITIES:
 Additions to property and
 equipment (71,732) (71,623)
 Proceeds from sale of
 property and equipment 124 686
 Other 152 (223)
 CASH USED BY
 INVESTING
 ACTIVITIES (71,456) (71,160)
 FINANCING ACTIVITIES:
 Additions to long-term debt 91,664 57,078
 Payments on long-term debt (6,258) (6,353)
 Redemptions of Preferred Stock (314) (281)
 Payment of dividends (3,296) (2,275)
 CASH PROVIDED
 BY FINANCING
 ACTIVITIES 81,796 48,169
 NET INCREASE (DECREASE)
 IN CASH AND CASH
 EQUIVALENTS 255 (126)
 Cash and cash equivalents
 at beginning of year 14,394 17,157
 CASH AND CASH EQUIVALENTS
 AT END OF PERIOD $14,649 $17,031
 -0- 4/28/92
 /CONTACT: Robert D. Bolinder or Matthew G. Tezak both of Smith's Food & Drug Centers, 801-974-1400/
 (SFD) CO: Smith's Food & Drug Centers Inc. ST: Utah IN: FOD SU: ERN


MC -- DV005 -- 3509 04/28/92 07:31 EDT
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