Printer Friendly

KROGER FOURTH QUARTER PER SHARE BEFORE EXTRAORDINARY ITEMS: 71 CENTS VS. 44 CENTS

 CINCINNATI, Feb. 8 /PRNewswire/ -- The Kroger Co. (NYSE: KR) said today that it posted strong gains in earnings, operating cash flow and sales in the 1992 fourth quarter. Earnings before an extraordinary item totaled $68.8 million, or 71 cents per share on a fully diluted basis, compared to earnings before an extraordinary item of $41.1 million, or 44 cents per share, in the 1991 fourth quarter.
 After the extraordinary item of $15.6 million related to the early retirement of high-cost debt, net earnings in the 1992 fourth quarter totaled $53.1 million, or 56 cents per share on a fully diluted basis, versus net earnings of $29.4 million, or 32 cents per share, after an extraordinary item of $11.7 million, in the previous year's final quarter. Kroger reported a LIFO credit of $6.1 million in the 1992 fourth quarter, versus a LIFO charge of $.3 million in the 1991 fourth quarter.
 Operating cash flow --- pre-tax earnings before interest, depreciation, LIFO and extraordinary items --? increased 11.4 percent to $279.2 million, compared to operating cash flow of $250.7 million in the 1991 fourth quarter.
 Sales rose 11.2 percent to a record $5.7 billion in the quarter, which contained an extra week. Without the extra week, the sales increase would have been approximately 2.4 percent.
 For the full year 1992, earnings before the extraordinary item related to the early retirement of high-cost debt totaled $101.2 million, or $1.11 per share, compared to $100.7 million, or $1.12 per share. After the $107.1 million extraordinary item for early debt retirement, Kroger had a net loss in 1992 of $5.9 million, or a loss of 6 cents per share, versus net earnings of $79.9 million, or 89 cents per share, in 1991. The 1992 LIFO charge totaled $8.1 million, versus a $26.2 million LIFO charge for 1991. Operating cash flow decreased 6.2 percent to $908.2 million from $968.0 million. Total sales increased 3.7 percent to $22.1 billion including the extra week in 1992.
 Identical food store sales rose 1.4 percent in the fourth quarter and 0.5 percent for all of 1992. These comparisons exclude sales from Michigan, which had a lengthy strike during the second and third quarters.
 Kroger Chairman and Chief Executive Officer Joseph A. Pichler said the fourth quarter performance was the result of strong holiday-related business in Kroger's combination stores and superstores. Gross profit margins were aided by improved sales in higher margin specialty departments.
 "We are pleased with the strength of our fourth quarter performance," Pichler said. He added that the company's geographic diversity and market share leadership contributed to particularly strong results in the Southeast, Colorado and the Midwest. They also served as a cushion against the negative impact of fourth quarter losses in Michigan, Cincinnati, Dayton, Dallas and Houston. Kroger's convenience store division, comprised of seven companies and 940 stores, produced a 1.4 percent increase in identical store grocery sales and an 8.5 percent increase in identical store gasoline gallonage in the fourth quarter. Operating results were strong.
 As previously released, Kroger's 1992 net interest expense decreased 10.6 percent to $475 million. During 1992, Kroger issued $1.3 billion of new debt at an average interest rate of 9.11 percent, replacing debt with an average cost of more than 13 percent.
 Kroger said it anticipates that interest expense will be in the range of $420-$430 million in 1993 and $370-$380 million in 1994. Both estimates assume that the company's recently filed offering of 12.5 million shares of common stock is completed. Proceeds from the equity issue will be used to retire high-cost debt and for general corporate purposes.
 The company also said it will implement Statement of Financial Accounting Standards No. 106 ("Employers Accounting for Postretirement Benefits Other Than Pensions") in the first quarter of 1993. The Company plans to account for this using the immediate recognition approach and expects that the cumulative effect of the change in accounting for these benefits as of Jan. 3, 1993 will total $140-$160 million after-tax.
 During 1992, capital expenditures totaled approximately $240 million. Kroger expanded food store net square footage by 2.5 percent by completing 42 new stores and expansions and 83 remodels. Kroger said net new food store square footage will average 3.5 percent annually over the next three years and that capital expenditures will total approximately $1 billion over that time frame.
 The Kroger Co.
 Sales and Earnings
 4th Qtr 4th Qtr Percent
 1992 1991 Change
 1/2/93 12/28/91
 Sales $5,700,788,900 $5,128,649,044 11.2
 EBITD (1) $ 279,230,355 $ 250,738,251 11.4
 LIFO $ 6,057,400 $ (343,756)
 Interest $ (110,166,854) $ (120,995,191)
 Depreciation
 $ (60,873,230) $ (59,671,059)
 Pre-tax earnings
 before extraordinary
 loss $ 114,247,671 $ 69,728,245
 Tax expense
 $ (45,454,416) $ (28,611,540)
 Earnings before
 extraordinary
 loss $ 68,793,255 $ 41,116,705
 Extraordinary
 loss (2) $ (15,645,506) $ (11,701,241)
 Net earnings
 $ 53,147,749 $ 29,415,464
 Primary earnings
 per common
 share (3):
 From operations
 $0.74 $0.46
 From extraordinary
 loss (2) ($0.17) ($0.13)
 Primary net earnings
 per common
 share $0.57 $0.33
 Fully diluted earnings
 per common share (4):
 From operations $0.71 $0.44
 From extraordinary
 loss (2) ($0.15) ($0.12)
 Fully-diluted net earnings
 per common
 share $0.56 $0.32
 Average number of
 common shares
 used in primary
 per share
 calculation 92,341,325 90,286,432
 Average number of
 common shares
 used in fully-diluted
 per share
 calculation 100,985,245 96,957,536
 Year Year Percent
 1992 1991 Change
 1/2/93 12/28/91
 Sales $22,144,587,903 $21,350,530,297 3.7
 EBITD (1) $ 908,227,685 $ 967,978,794 (6.2)
 LIFO $ (8,142,600) $ (26,243,756)
 Interest $ (474,848,647) $ (531,118,103)
 Depreciation
 $ (251,821,607) $ (242,021,952)
 Pre-tax earnings before
 extraordinary
 loss $ 173,414,831 $ 168,594,983
 Tax expense
 $ (72,254,623) $ (67,901,182)
 Earnings before
 extraordinary
 loss $ 101,160,208 $ 100,693,801
 Extraordinary
 loss (2) $ (107,102,896) $ (20,838,423)
 Net earnings
 (loss) $ (5,942,688) $ 79,855,378
 Earnings per
 common share (3):
 From operations
 $1.11 $1.12
 From extraordinary
 loss (2) ($1.17) ($0.23)
 Net earnings (loss)
 per common
 share ($0.06) $0.89
 Average number of
 common shares
 used in per share
 calculation
 91,364,074 90,218,394
 (1) EBITD represents pre-tax earnings before interest,
 depreciation and LIFO as defined in the Company's Bank Credit
 Agreement.
 (2) Represents the after-tax loss from the early retirement of
 debt.
 (3) Primary earnings per common share equals net earnings
 divided by the weighted number of common shares outstanding
 after giving effect to dilutive stock options.
 (4) Fully-diluted earnings per common share equal net earnings
 plus the after-tax interest incurred on the Company's 8-3/4
 percent and 6-3/8 percent convertible securities of $2,446,762
 in 1992 and $1,903,358 on the 8-3/4 percent convertible
 securities in 1991 divided by common shares outstanding after
 giving effect to dilutive stock options and shares assumed to be
 issued on conversion of the Company's convertible securities.
 -0- 2/8/93
 /CONTACT: Paul Bernish (media), 513-762-1304; or Pam Taylor (investors), 513-762-4969; both of The Kroger Company/
 (KR)


CO: The Kroger Company ST: Ohio IN: REA SU: ERN

KK -- CL003 -- 3930 02/08/93 08:56 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 8, 1993
Words:1270
Previous Article:CURTICE BURNS FOODS ANNOUNCES RETIREMENT OF DAVID J. MCDONALD; APPOINTMENT OF J. WILLIAM PETTY AS SUCCESSOR
Next Article:LAND ROVER SOFT TOP MAY COME TO U.S.; DEFENDER 90 MODEL WOULD BE ULTIMATE IN OPEN-AIR ADVENTURE
Topics:


Related Articles
KROGER FOURTH QUARTER PER SHARE BEFORE EXTRAORDINARY ITEMS: 46 CENTS VS. 78 CENTS
FILENE'S BASEMENT REPORTS RECORD EARNINGS FOR THE FOURTH QUARTER AND FISCAL YEAR
KROGER FIRST QUARTER OPERATING NET PER SHARE 23 CENTS VS. 12 CENTS
GAMMA BIOLOGICALS REPORTS INCREASED SALES FOR FISCAL YEAR ENDED MARCH 31, 1992
KROGER THIRD QUARTER OPERATING EARNINGS 8 CENTS VS. 18 CENTS
FILENE'S BASEMENT REPORTS FOURTH QUARTER AND FISCAL YEAR RESULTS
KROGER 1ST QTR NET PER SHARE BEFORE EXTRAORDINARY ITEMS: 29 CENTS V. 23 CENTS
HEALTH AND REHABILITATION PROPERTIES TRUST ANNOUNCES SECOND QUARTER CASH FLOW OF 34 CENTS PER SHARE
KROGER 1QTR OP EARNINGS PER SHARE: 46 CENTS VS. 29 CENTS
KROGER 4TH QTR OPER NET PER SHARE: 75 CENTS VS 71 CENTS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters