The Great Atlantic & Pacific Tea Company Inc. Announces Results for 2002 Fourth Quarter and Full Year.Business Editors MONTVALE Montvale may mean:
Company reports loss of $.54 per share for the fourth quarter 2002 The Great Atlantic & Pacific Tea Company, Inc. (A&P, NYSE NYSE See: New York Stock Exchange Symbol:GAP) announced unaudited fiscal 2002 fourth quarter and annual results for the 12 and 52 weeks ended February February: see month. 22, 2003. Sales for the fourth quarter were $2.52 billion, compared with $2.51 billion in the fourth quarter of fiscal 2001. Comparable store sales increased .5%. Earnings per share were a loss of $.54 for the quarter, compared with a profit of $.52 in the prior year. During the fourth quarter of fiscal 2002, the Company recorded an extraordinary gain of $12.9 million or $.34 per share for the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of $57.5 million of its Notes. The Company also recorded an adjustment to its 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). reserves, improving earnings by $3.3 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. or $.09 per share. Excluding these adjustments, ongoing operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. per share in the quarter was $.97 compared with ongoing operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before of $.23 per share for fourth quarter last year. Ongoing operating earnings for the fourth quarters of fiscal years 2002 and 2001 are reconciled rec·on·cile v. rec·on·ciled, rec·on·cil·ing, rec·on·ciles v.tr. 1. To reestablish a close relationship between. 2. To settle or resolve. 3. to reported earnings on Schedules 2 and 4 of this release. For the full year, sales were $10.79 billion, compared with $10.97 billion in fiscal 2001. Comparable store sales increased .4%. Earnings per share were a loss of $5.03 for fiscal year 2002, compared with a loss of $1.88 in the prior year. Excluding certain non-operating items, ongoing operating loss for the 52 weeks of fiscal 2002 was $2.15 per share compared with ongoing operating earnings of $.32 per share for fiscal 2001. Ongoing operating earnings for fiscal years 2002 and 2001 are reconciled to reported earnings on Schedules 3 and 5 of this release. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the fourth quarter of fiscal 2002, based on ongoing operating earnings as shown on Schedule 4 of this release, was $50 million compared to $91 million in the prior year's fourth quarter. EBITDA for fiscal year 2002, based on ongoing operating earnings as shown on Schedule 5 of this release, was $263 million compared to $372 million for fiscal year 2001. Christian Christian flees the City of Destruction. [Br. Lit.: Pilgrim’s Progress] See : Escape Christian travels to Celestial City with cumbrous burden on back. [Br. Lit. Haub, Chairman of the Board, President & Chief Executive Officer, said, "We have taken decisive action to halt the decline of our overall results, and to ensure the Company's on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" financial health. We restructured our organization, reduced costs, commenced the sale of non-strategic assets to lower our debt, and secured financing necessary to meet our needs going forward. We believe that our management changes and these actions have begun to stabilize stabilize See peg. our business in the U.S. I remain confident that we will improve our U.S. operations while continuing to drive success in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of ." Founded in 1859, A&P was one of the nation's first supermarket supermarket Large retail store operated on a self-service basis, selling groceries, produce, meat, bakery and dairy products, and sometimes nonfood goods. Supermarkets were first established in the U.S. during the 1930s as no-frills retail stores offering low prices. chains, and is today among North America's largest. In the fourth quarter, the Company opened 5 new stores and remodeled or expanded 7 stores. The Company operates 695 stores in 15 states, the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). and Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. , Canada under the following trade names: A&P, Waldbaum's  This article or section is in need of attention from an expert on the subject.Please help recruit one or [ improve this article] yourself. See the talk page for details. , The Food Emporium, Super Foodmart, Super Fresh, Farmer Jack, Kohl's Kohl's Corporation (NYSE: KSS) is an American department store chain headquartered in Menomonee Falls, Wisconsin, a suburb of Milwaukee. The Company currently operates 834 stores in 46 states. , Sav-A-Center, Dominion dominion, power to rule, or that which is subject to rule. Before 1949 the term was used officially to describe the self-governing countries of the Commonwealth of Nations—e.g., Canada, Australia, or India. , The Barn Markets and Food Basics
Food Basics is a no-frills Canadian supermarket chain created by A&P Canada to compete with the successful No Frills warehouse style supermarket operated by Loblaw. and Ultra Food & Drug. The Company also manufactures and distributes the Eight O'Clock line of whole bean bean, name applied to the seeds of leguminous trees and shrubs and to various leguminous plants of the family Leguminosae (pulse family) with edible seeds or seed pods (legumes). The genera and species encompassed by the term bean are many and variable. coffees. The Company invites investors to listen to an audio Webcast of its quarterly discussion of earnings by accessing a link on the "Investor Relations Investor relations The process by which the corporation communicates with its investors. " page of its Website, www.aptea.com. The live broadcast is on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , April 25, 2003 at 11 AM Eastern Time, with replays available from the afternoon of April 25 through May 25. Effective March 28, 2003, the Securities and Exchange Commission adopted new rules related to disclosure of certain financial measures not calculated in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). Such new rules require all public companies to provide certain disclosures in press release and SEC filings related to non-GAAP financial measures. We use the non-GAAP measures "ongoing operating earnings" and "ongoing operating loss" to reflect what the company's earnings would have been excluding certain identified major items, which we believe are of a non-operating or one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. nature. These items are reconciled to reported earnings on Schedules 2, 3, 4 and 5 of this release. We use the non-GAAP measure "EBITDA" to reflect a measure that we believe is of interest to investors. EBITDA is reconciled to Net Cash provided by Operating Activities on Schedules 4 and 5 of this release. This release contains 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. about the future performance of the Company, which are based on Management's assumptions and beliefs in light of the information currently available to it. The Company assumes no obligation to update the information contained herein. These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially from such statements including, but not limited to: competitive practices and pricing in the food industry generally and particularly in the Company's principal markets; the Company's relationships with its employees and the terms of future collective bargaining agreements The contractual agreement between an employer and a Labor Union that governs wages, hours, and working conditions for employees and which can be enforced against both the employer and the union for failure to comply with its terms. ; the costs and other effects of legal and administrative cases and proceedings; the nature and extent of continued consolidation in the food industry; changes in the financial markets which may affect the Company's cost of capital and the ability of the Company to access capital; supply or quality control problems with the Company's vendors; and changes in economic conditions which affect the buying patterns of the Company's customers.
The Great Atlantic & Pacific Tea Company, Inc.
Schedule 1 - GAAP Earnings for the 12 and 52 weeks ended
February 22, 2003 and February 23, 2002
(Unaudited)
(In thousands, except share amounts and store data)
12 Weeks Ended 52 Weeks Ended
---------------------- ------------------------
February February February February
22, 2003 23, 2002 22, 2003 23, 2002
---------------------- ------------------------
Sales (1) $2,520,179 $2,512,043 $10,794,370 $10,973,315
Cost of merchandise
sold (2) (1,813,402)(1,796,099) (7,738,337) (7,822,649)
---------------------- ------------------------
Gross margin 706,777 715,944 3,056,033 3,150,666
Store operating,
general and
administrative
expense (2) (3) (716,522) (710,691) (3,048,775) (3,234,796)
Gain on proceeds from
the demutualization
of a mutual insurance
company (3) - 60,606 - 60,606
---------------------- ------------------------
(Loss) income from
operations (9,745) 65,859 7,258 (23,524)
Interest expense (18,471) (19,753) (84,679) (91,722)
Interest income 1,602 1,788 7,897 6,972
---------------------- ------------------------
(Loss) income before
income taxes and
extraordinary item
(2) (26,614) 47,894 (69,524) (108,274)
(Provision for)
benefit from income
taxes (2) (4) (6) (7,219) (20,230) (136,166) 43,590
---------------------- ------------------------
Net (loss) income
before extraordinary
item (2) (33,833) 27,664 (205,690) (64,684)
Extraordinary gain
(loss) on early
extinguishment of
debt (5) 12,865 (7,222) 12,181 (7,222)
---------------------- ------------------------
Net (loss) income $(20,968) $20,442 $(193,509) $(71,906)
====================== ========================
Net (loss) income per
share - basic: (2)
(Loss) income before
extraordinary item $(0.88) $0.72 $(5.34) $(1.69)
Extraordinary gain
(loss) on early
extinguishment of
debt 0.34 (0.19) 0.31 (0.19)
---------------------- ------------------------
Net (loss) income per
share - basic $(0.54) $0.53 $(5.03) $(1.88)
====================== ========================
Net (loss) income per
share - diluted: (2)
(Loss) income before
extraordinary item $(0.88) $0.70 $(5.34) $(1.69)
Extraordinary gain
(loss) on early
extinguishment of
debt 0.34 (0.18) 0.31 (0.19)
---------------------- ------------------------
Net (loss) income per
share - diluted $(0.54) $0.52 $(5.03) $(1.88)
====================== ========================
Weighted average
common shares
outstanding:
Basic 38,515,806 38,361,941 38,494,812 38,350,616
====================== ========================
Diluted 38,515,806 39,478,296 38,494,812 38,350,616
====================== ========================
Gross margin rate 28.04% 28.50% 28.31% 28.71%
====================== ========================
Store operating,
general and
administrative
expense rate 28.43% 28.29% 28.24% 29.48%
====================== ========================
Number of stores
operated at end of
quarter 695 702 695 702
====================== ========================
Number of franchised
stores served at end
of quarter 65 67 65 67
====================== ========================
(1) Included in sales for the 12 and 52 weeks ended February 22, 2003
were wholesale sales to franchisees of $166.0 million and $712.5
million, respectively, compared to $158.1 million and $676.5
million, respectively, for the 12 and 52 weeks ended February 23,
2002.
(2) Cost of merchandise sold for the 12 week period ended February 23,
2002 and 52 week periods ended February 22, 2003 and February 23,
2002 and store operating, general and administrative expense for
the 12 and 52 week periods ended February 22, 2003 and February
23, 2002 include amounts related to the Company's asset
disposition initiatives. These amounts and their impact on income
before income taxes and extraordinary item, (provision for)
benefit from income taxes, net (loss) income and net (loss) income
per share are detailed on Schedules 2 and 3 attached.
(3) During the fourth quarter of fiscal 2001, the Company received
cash and common stock in the amount of $60.6 million related to
the demutualization of a mutual insurance company. As a result of
the sale of the remaining shares of stock, the Company recognized
a gain of $1.7 million which is included in store operating,
general and administrative expense for the 52 week period ended
February 22, 2003.
(4) During the 52 weeks ended February 23, 2002, the Canadian federal
government reduced corporate income tax rates, which benefits the
Company's ongoing net income and cash flow. The Company's tax
provision for the 52 weeks ended February 23, 2002, however, was
increased to reflect the reduction in value of its deferred
Canadian tax asset resulting from lower rates. This one-time
adjustment of the tax asset lowered earnings by $1.2 million
($0.03 per share).
(5) During the 52 weeks ended February 22, 2003, the Company purchased
in the open market $50.7 million of its 7.75% Notes due April 15,
2007 and $44.5 million of its 9.125% Notes due December 15, 2011.
As a result, the Company recognized an extraordinary gain of $12.2
million during the 52 weeks ended February 22, 2003.
(6) (Provision for) benefit from income taxes for the 52 week period
ended February 22, 2003 includes a charge to record a valuation
allowance for the Company's entire U.S. deferred tax asset as a
result of an assessment of the likelihood of future recognition of
such deferred tax assets.
The Great Atlantic & Pacific Tea Company, Inc.
Schedule 2 - Adjustments to GAAP Earnings for the 12 Weeks Ended
February 22, 2003 and February 23, 2002
(Unaudited)
(In thousands, except share amounts and store data)
12 Weeks Ended
February 22, 2003
-----------------------------------------
Extraordinary
Asset gain on early
disposition extinguishment Total
initiative of debt adjustments
-----------------------------------------
Sales $- $- $-
Cost of merchandise sold - - -
-----------------------------------------
Gross margin - - -
Store operating, general and
administrative expense 3,532 - 3,532
Gain on proceeds from the
demutualization of a mutual
insurance company - - -
-----------------------------------------
Income (loss) from operations 3,532 - 3,532
Interest expense - - -
Interest income - - -
-----------------------------------------
Income (loss) before income
taxes and extraordinary
items 3,532 - 3,532
(Provision for) benefit from
income taxes (201) - (201)
-----------------------------------------
Net income (loss) before
extraordinary items 3,331 - 3,331
Extraordinary items:
Gain on early extinguishment
of debt - 12,865 12,865
Loss on early extinguishment
of debt, net of $5,230 tax
benefit - - -
-----------------------------------------
Net income (loss) $3,331 $12,865 $16,196
=========================================
Net income (loss) per share -
basic:
Net income (loss) before
extraordinary items $0.09 $- $0.09
Extraordinary gain (loss) on
early extinguishment of debt - 0.34 0.34
-----------------------------------------
Net income (loss) per share -
basic $0.09 $0.34 $0.43
=========================================
Net income (loss) per share -
diluted:
Net income (loss) before
extraordinary items $0.09 $- $0.09
Extraordinary gain (loss) on
early extinguishment of debt - 0.34 0.34
-----------------------------------------
Net income (loss) per share -
diluted $0.09 $0.34 $0.43
=========================================
Weighted average common
shares outstanding:
Basic 38,515,806 38,515,806 38,515,806
=========================================
Diluted 38,515,806 38,515,806 38,515,806
=========================================
12 Weeks Ended
February 23, 2002
-------------------------------------------------
Gain on
proceeds from
the
Extraordinary demutualization
Asset loss on early of a mutual
disposition extinguishment insurance Total
initiative of debt company adjustments
-------------------------------------------------
Sales $- $- $- $-
Cost of merchandise
sold (3,707) - - (3,707)
-------------------------------------------------
Gross margin (3,707) - - (3,707)
Store operating,
general and
administrative
expense (24,887) - - (24,887)
Gain on proceeds from
the demutualization
of a mutual
insurance company - - 60,606 60,606
-------------------------------------------------
Income (loss) from
operations (28,594) - 60,606 32,012
Interest expense - - - -
Interest income - - - -
-------------------------------------------------
Income (loss) before
income taxes and
extraordinary items (28,594) - 60,606 32,012
(Provision for)
benefit from income
taxes 11,981 - (25,455) (13,474)
-------------------------------------------------
Net income (loss)
before extraordinary
items (16,613) - 35,151 18,538
Extraordinary items:
Gain on early
extinguishment of
debt - - - -
Loss on early
extinguishment of
debt, net of $5,230
tax benefit - (7,222) - (7,222)
-------------------------------------------------
Net income (loss) $(16,613) $(7,222) $35,151 $11,316
=================================================
Net income (loss) per
share - basic:
Net income (loss)
before extraordinary
items $(0.43) $- $0.92 $0.49
Extraordinary gain
(loss) on early
extinguishment of
debt $- $(0.19) $- $(0.19)
-------------------------------------------------
Net income (loss) per
share - basic $(0.43) $(0.19) $0.92 $0.30
=================================================
Net income (loss) per
share - diluted:
Net income (loss)
before extraordinary
items $(0.42) $- $0.89 $0.47
Extraordinary gain
(loss) on early
extinguishment of
debt - (0.18) - (0.18)
-------------------------------------------------
Net income (loss) per
share - diluted $(0.42) $(0.18) $0.89 $0.29
=================================================
Weighted average
common shares
outstanding:
Basic 38,361,941 38,361,941 38,361,941 38,361,941
=================================================
Diluted 39,478,296 39,478,296 39,478,296 39,478,296
=================================================
The Great Atlantic & Pacific Tea Company, Inc.
Schedule 3 - Adjustments to GAAP Earnings for the 52 Weeks Ended
February 22, 2003 and February 23, 2002
(Unaudited)
(In thousands, except share amounts and store data)
52 Weeks Ended
February 22, 2003
---------------------------------------------------------
Gain on
proceeds
Extra- from the
ordinary demutual-
gain on ization
early Deferred of a
Asset extinguish- Tax Asset mutual
disposition ment Valuation insurance Total
initiative of debt Allowance company Adjustments
---------------------------------------------------------
Sales $- $- $- $- $-
Cost of
merchandise
sold (1,263) - - - (1,263)
---------------------------------------------------------
Gross margin (1,263) - - - (1,263)
Store
operating,
general and
administrative
expense 7,657 - - 1,717 9,374
Gain on
proceeds
from the
demutual-
ization of a
mutual
insurance
company - - - - -
---------------------------------------------------------
Income (loss)
from
operations 6,394 - - 1,717 8,111
Interest
expense - - - - -
Interest income - - - - -
---------------------------------------------------------
Income (loss)
before income
taxes and
extraordinary
item 6,394 - - 1,717 8,111
Benefit from
(provision
for) income
taxes 3,199 - (133,675) (721) (131,197)
---------------------------------------------------------
Net income
(loss) before
extraordinary
item 9,593 - (133,675) 996 (123,086)
Extraordinary
gain (loss) on
early
extinguishment
of debt, net of
income tax
benefit of $0
and $5,230,
respectively - 12,468 - - 12,468
Reinstatement of
tax benefit on
extraordinary
loss on early
extinguishment
of debt
recorded in
first quarter
of fiscal 2002 - - (287) - (287)
---------------------------------------------------------
Net income
(loss) $9,593 $12,468 $(133,962) $996 $(110,905)
=========================================================
Net income
(loss) per
share - basic:
Income (loss)
before
extraordinary
item $0.25 $- $(3.47) $0.03 $(3.19)
Extraordinary
gain (loss)
on early
extinguishment
of debt, including
the
reinstatement
of tax benefit - 0.32 (0.01) - 0.31
---------------------------------------------------------
Net income
(loss) per
share - basic $0.25 $0.32 $(3.48) $0.03 $(2.88)
=========================================================
Net income
(loss) per
share -
diluted:
Income (loss)
before
extraordinary
item $0.25 $- $(3.47) $0.03 $(3.19)
Extraordinary
gain (loss) on
early
extinguishment
of debt, including
the
reinstatement
of tax benefit - 0.32 (0.01) - 0.31
---------------------------------------------------------
Net income
(loss) per
share -
diluted $0.25 $0.32 $(3.48) $0.03 $(2.88)
=========================================================
Weighted
average common
shares
outstanding:
Basic 38,494,812 38,494,812 38,494,812 38,494,812 38,494,812
=========================================================
Diluted 38,494,812 38,494,812 38,494,812 38,494,812 38,494,812
=========================================================
52 Weeks Ended
February 23, 2002
-----------------------------------------------------
Gain on
proceeds
Extra- from the
ordinary demutual-
loss on ization
early of a
Asset extinguish- mutual
disposition ment insurance Total
initiative of debt company Adjustments
------------------------------------------------------
Sales $- $- $- $-
Cost of merchandise
sold (3,889) - - (3,889)
----------------------------------------------------
Gross margin (3,889) - - (3,889)
Store operating,
general and
administrative
expense (189,579) - - (189,579)
Gain on proceeds
from the
demutualization of
a mutual
insurance
company - - 60,606 60,606
----------------------------------------------------
Income (loss) from
operations (193,468) - 60,606 (132,862)
Interest expense - - - -
Interest income - - - -
----------------------------------------------------
Income (loss)
before income
taxes and
extraordinary item (193,468) - 60,606 (132,862)
Benefit from
(provision for)
income taxes 81,200 - (25,455) 55,745
----------------------------------------------------
Net income (loss)
before
extraordinary item (112,268) - 35,151 (77,117)
Extraordinary gain
(loss) on early
extinguishment of
debt, net of
income tax benefit
of $0 and $5,230,
respectively - (7,222) - (7,222)
Reinstatement of tax
benefit on
extraordinary loss
on early
extinguishment
of debt recorded in
first quarter of
fiscal 2002 - - - -
----------------------------------------------------
Net income (loss) $(112,268) $(7,222) $35,151 $(84,339)
====================================================
Net income (loss)
per share - basic:
Income (loss)
before
extraordinary item $(2.93) $- $0.92 $(2.01)
Extraordinary gain
(loss) on early
extinguishment of
debt, including
the reinstatement
of tax benefit - (0.19) - (0.19)
----------------------------------------------------
Net income (loss)
per share - basic $(2.93) $(0.19) $0.92 $(2.20)
====================================================
Net income (loss)
per share -
diluted:
Income (loss)
before
extraordinary item $(2.93) $- $0.92 $(2.01)
Extraordinary gain
(loss) on early
extinguishment of
debt, including the
reinstatement
of tax benefit - (0.19) - (0.19)
----------------------------------------------------
Net income (loss)
per share -
diluted $(2.93) $(0.19) $0.92 $(2.20)
====================================================
Weighted average
common shares
outstanding:
Basic 38,350,616 38,350,616 38,350,616 38,350,616
====================================================
Diluted 38,350,616 38,350,616 38,350,616 38,350,616
====================================================
The Great Atlantic & Pacific Tea Company, Inc.
Schedule 4 - Pro Forma Earnings for the 12 Weeks Ended
February 22, 2003 and February 23, 2002
(Unaudited)
(In thousands, except share amounts and store data)
12 Weeks Ended
February 22, 2003
-------------------------------------------------
Adjustments
to be (added)
subtracted
GAAP (See Earnings
Earnings (1) (2) Schedule 2) as Adjusted (2)
-------------------------------------------------
Sales $2,520,179 $- $2,520,179
Cost of merchandise
sold (1,813,402) - (1,813,402)
-------------------------------------------------
Gross margin 706,777 - 706,777
Store operating,
general and
administrative
expense (716,522) 3,532 (720,054)
Gain on proceeds from
the demutualization
of a mutual
insurance
company - - -
-------------------------------------------------
(Loss) income from
operations (9,745) 3,532 (13,277)
Interest expense (18,471) - (18,471)
Interest income 1,602 - 1,602
-------------------------------------------------
(Loss) income before
income taxes and
extraordinary item (26,614) 3,532 (30,146)
Provision for income
taxes (7,219) (201) (7,018)
-------------------------------------------------
Net (loss) income
before extraordinary
item (33,833) 3,331 (37,164)
Extraordinary gain
(loss) on early
extinguishment of
debt, net of
benefit of nil and
$5,230, respectively 12,865 12,865 -
-------------------------------------------------
Net (loss)
income $(20,968) $16,196 $(37,164)
=================================================
Net (loss) income per
share - basic:
(Loss) income before
extraordinary item $(0.88) $0.09 $(0.97)
Extraordinary gain
(loss) on early
extinguishment of
debt 0.34 0.34 -
-------------------------------------------------
Net (loss) income per
share - basic $(0.54) $0.43 $(0.97)
=================================================
Net (loss) income per
share - diluted:
(Loss) income before
extraordinary item $(0.88) $0.09 $(0.97)
Extraordinary gain
(loss) on early
extinguishment of
debt 0.34 0.34 -
-------------------------------------------------
Net (loss) income per
share - diluted $(0.54) $0.43 $(0.97)
=================================================
Weighted average
common shares
outstanding:
Basic 38,515,806 38,515,806 38,515,806
=================================================
Diluted 38,515,806 38,515,806 38,515,806
=================================================
Gross margin rate 28.04% 28.04%
================= =================
Store operating,
general and
administrative
expense rate 28.43% 28.57%
================= =================
Depreciation and
amortization $63,704 $63,704
================= =================
Reconciliation of GAAP cash flow
measure to adjusted EBITDA:
Net cash provided by
operating activities $121,793
Net interest expense 16,869
Adjustments from GAAP
earnings (see
Schedule 2) 3,331
Deferred income tax
(provision) benefit (9,942)
Working capital
changes (58,175)
Other, net (23,449)
-----------------
Adjusted EBITDA $50,427
=================
Notes:
---------------------
(1) Cost of sales for the 12 weeks ended February 23, 2002 includes
$0.01 million related to the Company's business process initiative
which was announced in 2000. Store operating, general and
administrative expense for the 12 weeks ended February 22, 2003
and February 23, 2002 includes $11.5 million and $20.3 million,
respectively, related to the business process initiative.
(2) Earnings as adjusted for the 12 weeks ended February 22, 2003
includes severance of approximately of $10 million and a charge
relating to the adoption of EITF 02-16 "Accounting By a Customer
(including a Reseller) for Certain Consideration Received From a
Vendor" of approximately $2 million. These charges are offset by a
$7 million reduction of accruals for occupancy costs which we
believe accumulated over a number of years and are not significant
to each or any of those years.
12 Weeks Ended
February 23, 2002
--------------------------------------
Adjustments
to be
(added)
GAAP subtracted Earnings
Earnings (1) (See as
Schedule Adjusted
2)
--------------------------------------
Sales $2,512,043 $- $2,512,043
Cost of merchandise
sold (1,796,099) (3,707) (1,792,392)
--------------------------------------
Gross margin 715,944 (3,707) 719,651
Store operating,
general and
administrative
expense (710,691) (24,887) (685,804)
Gain on proceeds from
the demutualization
of a mutual
insurance
company 60,606 60,606 -
--------------------------------------
(Loss) income from
operations 65,859 32,012 33,847
Interest expense (19,753) - (19,753)
Interest income 1,788 - 1,788
--------------------------------------
(Loss) income before
income taxes and
extraordinary item 47,894 32,012 15,882
Provision for income
taxes (20,230) (13,474) (6,756)
--------------------------------------
Net (loss) income
before extraordinary
item 27,664 18,538 9,126
Extraordinary gain
(loss) on early
extinguishment of
debt, net of
benefit of nil and
$5,230, respectively (7,222) (7,222) -
--------------------------------------
Net (loss)
income $20,442 $11,316 $9,126
======================================
Net (loss) income per
share - basic:
(Loss) income before
extraordinary item $0.72 $0.48 $0.24
Extraordinary gain
(loss) on early
extinguishment of
debt (0.19) (0.19) -
--------------------------------------
Net (loss) income per
share - basic $0.53 $0.29 $0.24
======================================
Net (loss) income per
share - diluted:
(Loss) income before
extraordinary item $0.70 $0.47 $0.23
Extraordinary gain
(loss) on early
extinguishment of
debt (0.18) (0.18) -
--------------------------------------
Net (loss) income per
share - diluted $0.52 $0.29 $0.23
======================================
Weighted average
common shares
outstanding:
Basic 38,361,941 38,361,941 38,361,941
======================================
Diluted 39,478,296 39,478,296 39,478,296
======================================
Gross margin rate 28.50% 28.65%
=============== ===========
Store operating,
general and
administrative
expense rate 28.29% 27.30%
=============== ===========
Depreciation and
amortization $57,599 $57,599
=============== ===========
Reconciliation of
GAAP cash flow
measure to adjusted
EBITDA:
Net cash provided by
operating activities $150,831
Net interest expense 17,965
Adjustments from GAAP
earnings (see
Schedule 2) 18,538
Deferred income tax
(provision) benefit (18,809)
Working capital
changes (19,283)
Other, net (57,796)
-----------
Adjusted EBITDA $91,446
===========
Notes:
---------------------
(1) Cost of sales for the 12 weeks ended February 23, 2002 includes
$0.01 million related to the Company's business process initiative
which was announced in 2000. Store operating, general and
administrative expense for the 12 weeks ended February 22, 2003
and February 23, 2002 includes $11.5 million and $20.3 million,
respectively, related to the business process initiative.
(2) Earnings as adjusted for the 12 weeks ended February 22, 2003
includes severance of approximately of $10 million and a charge
relating to the adoption of EITF 02-16 "Accounting By a Customer
(including a Reseller) for Certain Consideration Received From a
Vendor" of approximately $2 million. These charges are offset by a
$7 million reduction of accruals for occupancy costs which we
believe accumulated over a number of years and are not significant
to each or any of those years.
The Great Atlantic & Pacific Tea Company, Inc.
Schedule 5 - Pro Forma Earnings for the 52 Weeks Ended
February 22, 2003 and February 23, 2002
(Unaudited)
(In thousands, except share amounts and store data)
52 Weeks Ended
February 22, 2003
---------------------------------------------
Adjustments
to be (added)
GAAP subtracted Earnings
Earnings (1) (See Schedule as Adjusted
3)
---------------------------------------------
Sales $10,794,370 $- $10,794,370
Cost of merchandise sold (7,738,337) (1,263) (7,737,074)
---------------------------------------------
Gross margin 3,056,033 (1,263) 3,057,296
Store operating, general
and administrative
expense (3,048,775) 9,374 (3,058,149)
Gain on proceeds from
the demutualization of
a mutual insurance
company - - -
---------------------------------------------
Income (loss) from
operations 7,258 8,111 (853)
Interest expense (84,679) - (84,679)
Interest income 7,897 - 7,897
---------------------------------------------
(Loss) income before
income taxes and
extraordinary item (69,524) 8,111 (77,635)
(Provision for) benefit
from income taxes (136,166) (131,197) (4,969)
---------------------------------------------
Net (loss) income before
extraordinary item (205,690) (123,086) (82,604)
Extraordinary gain
(loss) on early
extinguishment of debt,
net of benefit of nil and
$5,230, respectively 12,181 12,468 (287)
Reinstatement of tax benefit on
extraordinary loss on early
extinguishment
of debt recorded in
first quarter of
fiscal 2002 - (287) 287
---------------------------------------------
Net (loss) income $(193,509) $(110,905) $(82,604)
=============================================
Net (loss) income per
share - basic and
diluted:
(Loss) income before
extraordinary item $(5.34) $(3.19) $(2.15)
Extraordinary gain
(loss) on early
extinguishment of debt,
including
the reinstatement
of tax benefit 0.31 0.31 -
---------------------------------------------
Net (loss) income per
share - basic and
diluted $(5.03) $(2.88) $(2.15)
=============================================
Weighted average common
shares outstanding:
Basic 38,494,812 38,494,812 38,494,812
=============================================
Diluted 38,494,812 38,494,812 38,494,812
=============================================
Gross margin rate 28.31% 28.32%
================= =============
Store operating, general
and administrative
expense rate 28.24% 28.33%
================= =============
Depreciation and
amortization $263,585 $263,585
================= =============
Reconciliation of GAAP
cash flow measure to
adjusted EBITDA:
Net cash provided by
operating activities $178,622
Net interest expense 76,782
Adjustments from GAAP
earnings (see Schedule 3) 123,086
Deferred income tax
(provision) benefit (157,566)
Working capital changes 7,080
Other, net 34,728
-------------
Adjusted EBITDA $262,732
=============
52 Weeks Ended
February 23, 2002
---------------------------------------------
Adjustments
to be
(added)
GAAP subtracted Earnings
Earnings (1) (See as Adjusted
Schedule
3)
---------------------------------------------
Sales $10,973,315 $- $10,973,315
Cost of merchandise sold (7,822,649) (3,889) (7,818,760)
---------------------------------------------
Gross margin 3,150,666 (3,889) 3,154,555
Store operating, general
and administrative
expense (3,234,796) (189,579) (3,045,217)
Gain on proceeds from
the demutualization of
a mutual insurance
company 60,606 60,606 -
---------------------------------------------
Income (loss) from
operations (23,524) (132,862) 109,338
Interest expense (91,722) - (91,722)
Interest income 6,972 - 6,972
---------------------------------------------
(Loss) income before
income taxes and
extraordinary item (108,274) (132,862) 24,588
(Provision for) benefit
from income taxes 43,590 55,745 (12,155)
---------------------------------------------
Net (loss) income before
extraordinary item (64,684) (77,117) 12,433
Extraordinary gain
(loss) on early
extinguishment of debt,
net of
benefit of nil and
$5,230, respectively (7,222) (7,222) -
Reinstatement of tax benefit on
extraordinary loss on early
extinguishment
of debt recorded in
first quarter of
fiscal 2002 - - -
---------------------------------------------
Net (loss) income $(71,906) $(84,339) $12,433
=============================================
Net (loss) income per
share - basic and
diluted:
(Loss) income before
extraordinary item $(1.69) $(2.01) $0.32
Extraordinary gain
(loss) on early
extinguishment of debt,
including
the reinstatement
of tax benefit (0.19) (0.19) -
---------------------------------------------
Net (loss) income per
share - basic and
diluted $(1.88) $(2.20) $0.32
=============================================
Weighted average common
shares outstanding:
Basic 38,350,616 38,350,616 38,350,616
=============================================
Diluted 38,350,616 38,350,616 38,350,616
=============================================
Gross margin rate 28.71% 28.75%
================== ===============
Store operating, general
and administrative
expense rate 29.48% 27.75%
================== ===============
Depreciation and
amortization $262,552 $262,552
================== ===============
Reconciliation of GAAP
cash flow measure to
adjusted EBITDA:
Net cash provided by
operating activities $314,939
Net interest expense 84,750
Adjustments from GAAP
earnings (see Schedule 3) 77,117
Deferred income tax
(provision) benefit 47,298
Working capital changes 14,844
Other, net (167,058)
---------------
Adjusted EBITDA $371,890
===============
The Great Atlantic & Pacific Tea Company, Inc.
Schedule 6 - Condensed Balance Sheet Data
(Unaudited)
(In millions, except per share and store data)
February 22, 2003 February 23, 2002
----------------- ------------------
Cash and short-term investments $199 $169
Other current assets 901 1,043
----------------- ------------------
Total current assets 1,100 1,212
Property-net 1,609 1,705
Other assets 176 273
----------------- ------------------
Total assets $2,885 $3,190
================= ==================
Total current liabilities $1,091 $1,184
Total non-current liabilities 1,296 1,333
Stockholders' equity 498 673
----------------- ------------------
Total liabilities and
stockholders' equity $2,885 $3,190
================= ==================
Other Statistical Data
----------------------
Total Debt and Capital Leases $926 $884
Temporary Investments 78 78
----------------- ------------------
Net Debt $849 $806
Total Retail Square Footage (in
thousands) 26,818 26,664
Book Value Per Share $12.93 $17.54
For the 52 For the 52
weeks ended weeks ended
February 22, 2003 February 23, 2002
----------------- ------------------
Capital Expenditures $220 $246
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