Whole Foods Market Reports Quarterly Results.AUSTIN Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum , Texas--(BUSINESS WIRE)--Feb. 13, 1996--Whole Foods Market is pleased to announce record sales and earnings for the fiscal quarter ended Jan. 14, 1996. Sales during this 16 week period reached $172 million, an increase of 24 percent over sales of $139 million for the same period of the prior fiscal year. Comparable store sales increased 9.3 percent. Net income rose 45 percent to $3,412,000 from $2,353,000 in the prior year, and fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased 41 percent to $.24, compared to $.17 in the prior year. -0-
Following is a condensed income statement comparison for the
first quarter of fiscal year 1996 and 1995 (in thousands, except
percentages and EPS):
1996 1995 % Change
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Sales $172,495 $138,967 24%
Income from operations 6,597 4,740 39%
Operating margin 3.82% 3.41% 12%
Pre-opening costs 0 664 NM
Interest expense 663 131 NM
Pre-tax income 5,934 3,945 50%
Net income 3,412 2,353 45%
EPS $ .24 $ .17 41%
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First quarter income from operations (before taxes, pre-opening
costs, and interest expense) increased 39 percent over the prior
year, due to improvements in margins at existing stores as well as to
income generated by the three stores acquired in February 1995.
The company recently announced a reorganization of Mrs. Gooch's,
the Southern California Region of Whole Foods Market. There has been
a change in regional leadership, and approximately half of the
regional administrative positions have been eliminated. The second
quarter will include a charge to earnings of approximately $1.7 to $2
million (pre- tax), or $.08 per share, for severance and other costs
associated with the restructuring.
This reorganization is expected to result in general and
administrative cost savings of approximately $1.5 million (pre-tax)
annually, or $.06 per share. The downsizing was completed during the
early weeks of the second quarter, and should result in G&A cost
savings during the current fiscal year of approximately $.03 to $.04
per share.
In December 1995 the company completed a pooling-of-interests
acquisition of Oak Street Market in Evanston (Chicago), Ill. The
results of operations of the combined entities for the first 30 days
subsequent to the acquisition are as follows (in thousands, except
EPS):
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Sales $45,076
Cost of goods sold and occupancy costs 30,652
Direct store expenses 11,061
General and administrative expenses 1,382
Amortization 114
Interest 137
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Income before income taxes 1,730
Income taxes 735
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Net income $ 995
Earnings per share $ .07
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So far in the second quarter, the company has opened two stores -
one in Sherman Oaks in Los Angeles, and the other in Georgetown in
Washington D.C. CEO John Mackey said, "In the first twelve days of
operations, the Georgetown store has had the second highest opening
sales in the history of Whole Foods Market. We have opened a 35,000
square foot store with the best of what Whole Foods has to offer.
With a store opening in Arlington at the end of February and Vienna
in late summer, we will further strengthen our position in this very
important market."
Whole Foods Market now has 44 stores in operation, and 15 others
in development. The following is a listing of stores under
development and estimated opening dates:
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Estimated Estimated
Store Opening Store Opening
------------------- --------- ----------------- ---------
1. Lakeview (Chicago) Q2 FY 96 8. Vienna, VA Q4 FY 96
2. Durham(a) Q2 FY 96 9. San Rafael, CA FY 97
3. Arlington, VA Q2 FY 96 10. Evanston, IL FY 97
4. San Francisco Q3 FY 96 11. Manhattan FY 97
5. West Los Angeles(a) Q3 FY 96 12. Philadelphia FY 97
6. Madison, WI Q3 FY 96 13. Mission Viejo,
(So. Calif.) FY 97
7. Cupertino, CA(a) Q3 FY 96 14. Hillcrest (San Diego) FY 97
15. Newport Beach FY 97
(a) Replacement store.
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Whole Foods Market owns and operates the country's largest chain
of natural foods supermarkets, with 44 stores currently open in 11
states. The company operates on a 52/53 week fiscal year ending the
last Sunday in September. The first quarter consists of 16 weeks,
the second and third quarters each consist of 12 weeks, and the
fourth quarter consists of 12 or 13 weeks. The company's shares are
traded on NASDAQ's National Market System under the symbol "WFMI."
The company will host a conference call to discuss these results
at 10 a.m. Central Standard Time on Tuesday, Feb. 13. To
participate, call 415/904-7312 before 10 a.m. To hear a re-play of
the call, call 800/633-8284 before Feb. 20 and ask for reservation
number 1582615.
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WHOLE FOODS MARKET, INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited)
Sixteen Weeks Ended January 14, 1996 and January 15, 1995
(In thousands, except per share data)
1996 1995
===================
Sales $172,495 $138,967
Cost of goods sold and occupancy costs 117,515 94,871
Direct expenses 42,427 34,278
Pre-opening costs -- 664
Amortization expense 454 348
General and administrative expenses 5,502 4,730
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Income from operations 6,597 4,076
Net interest expense 663 131
-------------------
Income before income taxes 5,934 3,945
Income taxes 2,522 1,592
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Net income $ 3,412 $ 2,353
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Net income per share - primary and fully diluted $ 0.24 $ 0.17
===================
Weighted average shares outstanding - primary
and fully diluted 14,427 14,178
===================
CONTACT: Whole Foods Market Glenda Glenda may refer to: People
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