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 ANCHORAGE, Alaska, Aug. 4 /PRNewswire/ -- Carr Gottstein Foods Co. (NYSE: CGF), the largest food and drug retailer in Alaska, today reported record second quarter sales of $145.5 million and a 62 percent increase in earnings per share to 13 cents for the quarter ended July 4, 1993.
 Sales for the quarter rose 3.5 percent to $145.5 from $140.5 for the same 1992 period, setting a record for the company.
 "The sales gain was made on the same number of stores and in spite of continued deflation in grocery prices and increased competition," said John J. Cairns, chairman and chief executive officer. The increase was fueled, in part, from higher sales at two stores that were expanded as part of the company's ongoing remodeling and expansion program.
 "Our same store sales were up nearly 3 percent in our 13 Carr's stores and 10 percent in our three Eagle stores," Cairns said.
 The revenue increase combined with a 5 percent decrease in administrative expense to produce net income of $1.5 million, or 13 cents per share, compared to $1.0 million, or 8 cents per share, in the year ago quarter. Earnings were also strengthened by sales from higher margin specialty departments, Cairns noted.
 During the second quarter, expansion of the Carr's Muldoon store in Anchorage was completed, adding 45 percent more selling area to the store. Expansion of another Carr's store in Wasilla is currently underway.
 For the year to date, sales were $275.4 million, up 3.7 percent from $265.5 million. Net income was $2.9 million, or 26 cents per share, compared to a net loss of ($.3) million, or (2 cents) per share for the comparable 1992 period.
 "This financial performance reflects the company before the initial public stock offering which was completed on July 9, 1993, following the end of the second quarter," Cairns pointed out. "The reported earnings per share figure is based on 11.4 million shares outstanding which increased to 17.1 million shares following the offering."
 Cairns explained that the third quarter, which ends Oct. 3, will be affected by nonrecurring extraordinary charges of approximately $21 million, net of tax effects, stemming from the early repayment of debt and a $3 million, net of tax, nonrecurring charge related to the write off of non-compete agreements.
 "The financial restructuring we've achieved with $78 million in net proceeds from our initial public offering, as well as proceeds from a new credit agreement, considerably strengthens the company's balance sheet, improving our ability to grow through expansion of existing stores and the addition of new ones," said Cairns.
 Carr Gottstein operates 32 stores in Anchorage, Fairbanks, Kenai and other Alaska communities and is the largest employer and food retailer in the state. Annual revenues were $557 million in 1992.
 (in thousands, expect per share data)
 Thirteen Weeks Twenty-six Weeks
 Ended Ended
 July 4, June 28, July 4, June 28,

 1993 1992 1993 1992
 Sales $145,472 $140,543 $275,410 $265,531
 Gross profit $ 46,728 $ 44,755 $ 88,178 $ 83,418
 Operating income $ 9,613 $ 8,727 $ 15,317 $ 13,843
 Net income (loss) $ 1,467 $ 959 $ 2,939 $ (276)
 Net income (loss)
 per share $ 0.13 $ 0.08 $ 0.26 $ (0.02)
 Shares used in per
 calculations(a) 11,364,000 11,406,000 11,366,000 11,406,000
 (a) Subsequent to the end of the quarter ended July 4, 1993, the company completed an initial public offering of common stock. As a result, there are 17.1 million shares currently outstanding.
 -0- 8/4/93
 /CONTACT: Bill Kretschmer, chief financial officer, of Carr Gottstein Foods Co., 907-561-1944; or Dolores Chenoweth of in.ves'com, 503-221-2087, for Carr Gottstein/

CO: Carr Gottstein ST: Alaska IN: REA SU: ERN

JH-LM -- SE003 -- 9173 08/04/93 07:51 EDT
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Publication:PR Newswire
Date:Aug 4, 1993

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