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GIANT FOOD ANNOUNCES SALES, EARNINGS

 WASHINGTON, Aug. 31 /PRNewswire/ -- Giant Food Inc. (AMEX: GFS.A), a Washington-based food-drug chain of 156 units, today announced unaudited sales and earnings for the 12-week and 24-week period ended Aug. 14, 1993, compared with the same periods ended Aug. 15, 1992.
 The federal tax bill signed into law on Aug. 10, 1993, increases the company's tax rate 1 percent retroactive to Jan. 1, 1993. Please refer to the tables attached for the effect on earnings.
 For the Twelve Weeks Ended Aug. 14, 1993:
 -- Sales were $795,841,000, compared with $778,586,000, an increase of 2.2 percent.
 -- Income before income taxes was $26,252,000, 3.30 percent of sales, compared to $19,445,000, 2.50 percent of sales, an increase of 35.0 percent.
 -- Net income was $14,604,000, 1.84 percent of sales, compared with $11,959,000, 1.54 percent of sales.
 -- Earnings per share were 24 cents, compared with 20 cents, an increase of 20 percent.
 For the 24-Weeks Ended Aug. 14, 1993:
 -- Sales were $1,609,307,000, compared with $1,581,606,000, an increase of 1.75 percent.
 -- Income before income taxes was $63,060,000, 3.92 percent of sales, compared to $50,505,000, 3.19 percent of sales, an increase of 24.9 percent.
 -- Income before the cumulative effect of accounting change, for income taxes, was $37,278,000, 2.32 percent of sales, compared with $31,061,000, 1.96 percent of sales.
 -- Earnings per share before the cumulative effect of accounting change, for income taxes, were 62 cents, compared with 52 cents, an increase of 19 percent.
 Giant sales and earnings continue to show improvement over the same reporting periods of the prior fiscal year. Sales volume was up 2 percent for all stores, including 1 percent for stores in operations both years. This year's second quarter results include a provision for retroactive income taxes.
 Giant opened its 156th operating supermarket on June 9, a 61,500 square foot food-drug store in Upper Marlboro, Md., at the Marlboro Crossroads Shopping Center, a GFS Realty property. Construction is underway at the company's first Delaware store, a 64,800 square foot food-drug "Super G" store in the Eden Square Shopping Center in Bear, a Wilmington suburb. Two new food-drug stores are well on their way toward an opening around Thanksgiving. They are located in the Kentlands Shopping Center in Gaithersburg, Md., and the North Point Village Center in Reston, Va. Giant is also nearing completion on the expansion and remodeling of stores in Lutherville and White Oak, Md. Work should be done early in the fall. Finally, construction is continuing on a 61,000 square foot food-drug store in the Cascades Marketplace in Loudon County, Va., also a project of Giant's GFS Realty subsidiary.
 Giant recently signed leases for new food-drug stores in Easton, Md. and in River Oaks, which is in Prince William County, Va.
 By Labor Day, Giant will offer customers the choice of using their credit and debit cards to pay for their purchases in all stores. While Maryland customers have had this option since early in the year, customers in Virginia and the District of Columbia began having this service available during the past month. Experience in Maryland indicates that Giant can expect additional sales volume once the remainder of its stores are on-line with this service.
 On Sept. 19, Giant will begin its fifth year of Apples for the Students plus. Giant's is the only program offering schools Apple Computer equipment and IBM computers. In the four previous years, the comapny has awarded over 60,000 computers and other educational equipment to nearly 3,000 schools. This year's program has been improved by adding over 3,000 textbook and library titles and audio and video cassette recordings.
 Of the 156 supermarkets in operation at the end of the 24 weeks, 110 are food-drug stores. The company also operates three free-standing drug stores. A year ago, Giant operated 155 supermarkets, 108 food-drug stores, and three free-standing drug stores.
 GIANT FOOD INC. FINANCIAL HIGHLIGHTS
 Subject to year-end audit
 CONSOLIDATED SALES AND EARNINGS
 (Dollars in thousands except for per share data)
 24 Weeks Ended
 Aug. 14, Aug. 15 Percent
 1993 1992 Change
 Sales $1,609,307 $1,581,606 1.8
 Income before income taxes 63,060 50,505 24.9
 Provision for income taxes:
 Before tax rate change 24,215 19,444 24.5
 Tax rate change for 24 weeks 631 -- --
 Retroactive tax (Jan. & Feb. '93) 195 -- --
 Effect on deferred taxes 741 -- --
 Total taxes 25,782 19,444 32.6
 Income before cumulative effect
 of accounting change 37,278 31,061 20.0
 Cumulative effect of change
 in accounting for deferred taxes 3,934 -- --
 Net Income $ 41,212 $ 31,061 32.7
 Income per share:
 Before cumulative effect
 of accounting and tax changes $ 0.65 $ 0.52 25.0
 Tax rate change for 24 weeks (0.01) -- --
 Effect of retroactive tax change (0.01) -- --
 Effect on deferred taxes (0.01) -- --
 Sub-total 0.62 0.52 19.2
 Cumulative effect of change
 in accounting for deferred taxes 0.07 -- --
 Net Income $ 0.69 $ 0.52 32.7
 Supplemental Data:
 Effective tax rate 40.9 pct. 38.5 pct. --
 Pre-tax LIFO charge $ 1,860 $ 1,860 --
 Net income per share
 without LIFO charge $ 0.71 $ 0.54 --
 Average number of shares
 (thousands) 59,695 59,633 --
 GIANT FOOD INC. FINANCIAL HIGHLIGHTS
 Subject to year-end audit
 CONSOLIDATED SALES AND EARNINGS
 (Dollars in thousands except for per share data)
 12 Weeks Ended
 Aug. 14, Aug. 15, Percent
 1993 1992 Change
 Sales $ 795,841 $ 778,586 2.2
 Income before income taxes 26,252 19,445 35.0
 Provision for income taxes:
 Before tax rate change 10,081 7,486 34.7
 Tax rate change for 12 weeks 263 -- --
 Retroactive effect
 (01/01/93 to 05/22/93) 563 -- --
 Effect on deferred taxes 741 -- --
 Total taxes 11,648 7,486 55.6
 Net income $ 14,604 $ 11,959 22.1
 Net income per share:
 Before tax rate change $ 0.27 $ 0.20 35.0
 Tax rate change for 12 weeks (0.01) -- --
 Effect of retroactive tax change (0.01) -- --
 Effect on deferred taxes (0.01) -- --
 Net income per share $ 0.24 $ 0.20 20.0
 Supplemental Data:
 Effective tax rate 44.4 pct. 38.5 pct. --
 Pre-tax LIFO charge $ 930 $ 930 --
 Net income per share
 without LIFO charge $ 0.25 $ 0.21 --
 GIANT FOOD INC. FINANCIAL HIGHLIGHTS
 Subject to Year-End Audit
 Consolidated Balance Sheets
 (Dollars in Thousands)
 As at
 Aug. 14, Aug. 15,
 1993 1992
 Cash and cash equivalents $ 237,378 $ 168,609
 Short-term investments(A) 304 227
 Inventories 188,204 193,672
 Other current assets 52,354 44,174
 Total current assets 478,240 406,682
 Property, plant & equipment (net) 684,915 699,575
 Property under capital leases (net) 113,573 113,554
 Other assets 35,159 27,506
 Total $1,311,887 $1,247,317
 Current liabilities $ 296,115 $ 279,970
 Long-term debt-notes and mortgages 103,877 110,903
 Long-term debt-obligations under
 capital leases 146,819 144,641
 Other long-term liabilities 81,700 79,809
 Total liabilities 628,511 615,323
 Shareholders' equity 683,376 631,994
 Total $1,311,887 $1,247,317
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 (Dollars in Thousands)
 24 Weeks Ended
 Aug. 14, Aug. 15,
 1993 1992
 Cash flows from operating activities:
 Net income $ 41,212 $ 31,060
 Depreciation and amortization 42,860 43,029
 Other adjustments 742 900
 Net (decrease) in cash from changes
 in operating assets & liabilities 28,725 (286)
 Net cash provided by operations 113,539 74,703
 Cash flows from investing activities:
 (Increase) in short-term
 investments, net (76) (23)
 Capital expenditures (36,972) (33,910)
 Other investing activities, net 441 (421)
 Net cash used in investing activities (36,607) (34,354)
 Cash flows from financing activities:
 Dividends paid (20,594) (19,963)
 Treasury stock transactions 107 133
 Repayments of long-term debt (4,036) (3,091)
 Net cash used in financing activities (24,523) (22,921)
 Net increase in cash and cash
 equivalents 52,409 17,428
 Cash and cash equivalents --
 beginning of period 184,969 151,181
 Cash and cash equivalents --
 end of period $ 237,378 $ 168,609
 (A) Short-term investments are cash investments maturing more than three months, but less than one year, from original investment date.
 -0- 8/31/93
 /CONTACT: David B. Sykes of Giant Food, 301-341-8480/
 (GFS)


CO: Giant Food Inc. ST: District of Columbia IN: REA SU: ERN

DC-KD -- DC023 -- 7657 08/31/93 17:02 EDT
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Date:Aug 31, 1993
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