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SUPER VALU REPORTS RECORD RESULTS AND ADOPTION OF SFAS NO. 106

 SUPER VALU REPORTS RECORD RESULTS AND ADOPTION OF SFAS NO. 106
 MINNEAPOLIS, April 8 /PRNewswire/ -- Super Valu Stores, Inc. (NYSE: SVU) today announced record earnings for its recently concluded fiscal year and additionally announced the early adoption of Statement of Financial Accounting Standards No. 106, "Employers' Accounting for Post-Retirement Benefits other than Pensions" (SFAS No. 106).
 Sales for the 53-week year ended Feb. 29, 1992, rose 5.2 percent to $10.6 billion from last year's restated $10.1 billion. Net earnings were $194.4 million versus $155.1 million and earnings per share were $2.60 compared with last year's $2.06. "We are very pleased with our results for the year, and especially so with the fourth quarter," said Chairman and CEO Michael W. Wright. "We believe we are beginning to realize the benefits from both our new strategic direction and our investments of the last few years."
 The company's results included two non-recurring items. During the third quarter, the company recorded a gain of $51.3 million after tax, or 69 cents per share, related to the sale of 54 percent of its interest in ShopKo Stores, Inc. Second, SFAS No. 106 was adopted and led to a one-time cumulative after-tax charge of $13.3 million, or 18 cents per share. The new accounting standard, which must be implemented by most American companies no later than 1993, requires that the future costs of providing certain retiree benefits, such as medical coverage, be recognized over the employee's working career rather than expensed as incurred. There will be no cash flow effect from the charge to earnings.
 Sales for the 13-week fourth quarter were $2.6 billion compared with last year's 12-week quarter's results of $2.4 billion. Net earnings, which reflected only 46 percent of ShopKo earnings, were $47.5 million versus last year's $47.2 million when the company owned 100 percent of ShopKo. The decrease in the company's ownership interest in ShopKo affects the comparability of this year's fourth quarter with last year's results, and such change is estimated to be $11.2 million. Excluding this impact, the company's earnings for the fourth quarter would have increased about 32 percent.
 After making similar adjustments for the full year's results and excluding the gain arising from the ShopKo sale and the charge for SFAS No. 106, the company's fiscal 1992 earnings would have increased about 14 percent.
 Operating results in the company's wholesale businesses were up sharply in the fourth quarter due to the extra week, tonnage increases, reduced LIFO charges and improved margins related to productivity and expenses management. As measured by the company's internal inflation indices, inflation was down slightly, so all of the sales growth represented real growth.
 Growth from retail development, which includes new store construction, store remodels and new retail store affiliations, increased 15 percent, generating $600 million in new sales. Wright credited the strength of the company's independent retailers and the financial flexibility provided by the company's strong balance sheet for the sharp rebound. "Over 2.9 million square feet of new or remodeled retail space resulted from last year's development efforts. The ability to respond to market opportunities is a key competitive issue, one where our range of retailing formats and financial strength creates a competitive advantage," said Wright. The company earlier announced that it has budgeted a 50 percent increase to $150 million in this fiscal year for financing support for independent retail customers' growth.
 The company's corporate retail food operations also produced improved operating results for both the quarter and year. Sales and earnings were bolstered by the acquisition in November of Scott's Foods, a 13-store group in the Fort Wayne, Ind. area. Additionally, the Twin Valu food and general merchandise supercenters continued to show improvement which has led to the recently announced plans to open a third Twin Valu supercenter and two Twin Valu food stores in the Cleveland area. The company noted that the financial effects of operating stores currently in transition between independent owners had been reclassified to the wholesale segment.
 The company's principal retail foods business, Cub Foods, experienced flat operating results for the quarter. This was principally due to the acquisition or opening of seven stores while closing one during the year, the soft retail environment and the competitive situation in selected markets. Cub ended the year operating 41 corporately owned stores.
 As previously announced, capital funding has been allocated for the opening of up to nine new corporate Cub stores, adding 20 percent to selling space, and major renovations in 12 existing units. In addition, funding is provided for six franchised Cub units in this fiscal year.
 Wright also indicated that approximately 3.5 million shares of Super Valu stock had been repurchased by year-end pursuant to the previously announced board approval to repurchase up to 7.5 million shares.
 SUPER VALU STORES, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF EARNINGS
 (In thousands, except per share data)
 Fourth Quarter Ended Year-To-Date Ended
 2/29/92 2/23/91 2/29/92 2/23/91
 (13 wks) (12 wks) (53 wks) (52 wks)
 Net sales $2,628,724 $2,350,499 $10,632,301 $10,104,899
 Earnings before income
 taxes, gain on sale of ShopKo
 stock and cumulative effect of
 change in accounting
 principle 72,960 62,777 238,735 225,680
 Gain on sale of
 ShopKo stock -- -- 84,105 --
 Earnings before income taxes
 and cumulative effect of
 change in accounting
 principle 72,960 62,777 322,840 225,680
 Provision for income
 taxes 25,416 15,556 115,175 70,544
 Earnings before cumulative
 effect of change in
 accounting principle 47,544 47,221 207,665 155,136
 Cumulative effect of change
 in accounting principle -- -- (13,288) --
 Net earnings $47,544 $47,221 $194,377 $155,136
 Net earnings per common share:
 Net earnings per common share
 before cumulative effect of
 change in accounting
 principle $0.65 $0.63 $2.78 $2.06
 Cumulative effect of change
 in accounting principle -- -- (0.18) --
 Net earnings per common
 share $0.65 $0.63 $2.60 $2.06
 Weighted average number of
 common shares
 outstanding 72,972 75,214 74,700 75,165
 Dividends declared per
 common share $0.180 $0.165 $0.705 $0.645
 Supplemental information:
 After-tax LIFO charge
 (income) $(369) $1,818 $(1,064) $6,489
 SUPER VALU STORES, INC. AND SUBSIDIARIES
 COMPOSITION OF NET SALES AND EARNINGS


(The following table sets forth the composition of the company's net
 sales and operating earnings)
 (In thousands, except per share and percent data)
 Fourth Quarter Ended Year-To-Date Ended
 2/29/92 2/23/91 2/29/92 2/23/91
 (13 wks) (12 wks) (53 wks) (52 wks)
 Net sales:
 Retail support $2,372,676 $2,173,978 $9,841,033 $9,523,719
 Percentage 90.3 92.5 92.6 94.2
 Retail food 592,423 435,798 2,002,923 1,764,745
 Percentage 22.5 18.5 18.8 17.5
 Sales eliminations (336,375) (259,277) (1,211,655) (1,183,565)
 Percentage -12.8 -11.0 -11.4 -11.7
 Total net sales $2,628,724 $2,350,499 $10,632,301 $10,104,899
 Percentage 100.0 100.0 100.0 100.0
 Operating earnings
 before income taxes:
 Retail support $63,833 $46,128 $240,471 $214,155
 Percentage 88.5 89.9 94.6 94.8
 Retail food 8,276 5,203 13,707 11,761
 Percentage 11.5 10.1 5.4 5.2
 Total operating
 earnings $72,109 $51,331 $254,178 $225,916
 Percent 100.0 100.0 100.0 100.0
 Interest income $9,611 $12,308 $38,373 $44,970
 Interest expense (15,262) (18,788) (72,693) (76,411)
 General corporate
 expenses (3,242) (2,812) (13,299) (13,875)
 Earnings before income
 taxes, equity in earnings
 of ShopKo, gain on sale
 of ShopKo stock, and
 cumulative effect of
 change in accounting
 principle $63,216 $43,039 $206,559 $180,600
 Equity in earnings of
 ShopKo 9,744 20,738 32,176 45,080
 Gain on sale of ShopKo -- -- 84,105 --
 Cumulative effect of change
 in accounting principle -- -- (13,288) --
 Provision for income
 taxes (25,416) (15,556) (115,175) (70,544)
 Net earnings $47,544 $47,221 $194,377 $155,136
 Net earnings per common
 share:
 Net earnings per common
 share before cumulative
 effect of change in accounting
 principle $0.65 $0.63 $2.78 $2.06
 Cumulative effect of change
 in accounting principle -- -- (0.18) --
 Net earnings per common
 share $0.65 $0.63 $2.60 $2.06
 -0- 4/8/92
 /CONTACT: Mike Mulligan, 612-828-4441, or Rita Simmer, 612-828-4429, both of Super Valu/
 (SVU) CO: Super Valu Stores, Inc. ST: Minnesota IN: REA SU: ERN


AL -- MN004 -- 6261 04/08/92 12:34 EDT
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