QFC REPORTS RECORD THIRD-QUARTER RESULTS
QFC REPORTS RECORD THIRD-QUARTER RESULTS BELLEVUE, Wash., Sept. 22 /PRNewswire/ -- Quality Food Centers Inc.
(QFC) (NASDAQ: QFCI) today reported record sales and earnings for the 12 weeks ended Sept. 5, 1992.
Net earnings for the third quarter of 1992 increased 18 percent to a record $5,905,000, or 30 cents per share, compared with net earnings of $5,006,000, or 26 cents per share, in the corresponding 1991 quarter. Third-quarter sales increased 14.8 percent to $107.5 million, compared with $93.7 million last year. Comparable store sales increased 1.8 percent during the quarter, despite more than 1-percent deflation in retail food prices. According to Marc Evanger, vice president and chief financial officer, "Our sales increase reflects the new store we added in December 1991, the two stores we acquired from Haggen Inc. in February, and higher sales in the six stores we expanded and remodeled during the last 12 months. We are pleased with our strong comparable store sales increase, especially in light of the food price deflation during the quarter. Improved buying and merchandising, a lower LIFO inventory adjustment and continued control of operating expenses contributed to QFC's record operating margin of 8.1 percent of sales for the third quarter, compared with 7.8 percent for the same period last year." For the 36 weeks ended Sept. 5, 1992, net earnings increased 21 percent to $16,759,000, or 85 cents per share, compared with net earnings of $13,863,000, or 71 cents per share, in the comparable period last year. Sales for the 36-week period of 1992 reached $313.1 million, up 16.7 percent from 1991. Comparable store sales are up 2.6 percent for the year to date. Dan Kourkoumelis, QFC president and chief operating officer, said, "Our strong results reflect the outstanding job that our people do in taking care of our customers. We are grateful for their efforts and commitment, particularly in 1992, our most active year ever on the expansion and remodeling front. We completed the remodeling of our Alderwood store in August and the expansion and remodeling of our Lynnwood location last week -- our sixth remodel in 1992. The sales increases we have seen from these remodels are extremely gratifying." Stuart Sloan, chairman and chief executive officer, stated, "We're very pleased with our continued strong results for the third quarter of 1992. In addition to remodeling and expanding existing stores, we are also making solid progress in new-store development. The Harbour Pointe store in Mukilteo is under construction and should be open in November, and site work is underway at our Midway store. Site work is scheduled to start in October for our new Fairwood store, and we are in the building permit process for our new Federal Way store." Sloan continued, "We are also actively pursuing other new store sites and acquisition opportunities. As announced last week, Len Psyk has joined QFC's Real Estate Department to assist in handling the increased activity in this area. His strong retail real estate background is an important addition to our real estate team." QFC is the largest independent supermarket chain in the Seattle/Puget Sound area. QFC has served this area for 37 years and today operates 32 stores. QFC's first priority is satisfying the needs of customers by proving superior service, high-quality perishables and competitive prices at convenient store locations. QUALITY FOOD CENTERS FINANCIAL HIGHLIGHTS THIRD QUARTER 1992 (In thousands, except per-share amounts) Sept. 5, Percent of Sept. 7, Percent of 12 Weeks Ended: 1992 Sales 1991 Sales Sales $107,497 100.0 $ 93,652 100.0 Cost of sales and related occupancy expenses 79,685 74.1 69,998 74.7 Operating expenses 19,109 17.8 16,382 17.5 Operating income 8,703 8.1 7,272 7.8 Interest income 184 0.2 320 0.3 Earnings before taxes 8,887 8.3 7,592 8.1 Income taxes 2,982 2.8 2,586 2.8 Net earnings $ 5,905 5.5 $ 5,006 5.3 Average shares outstanding 19,609 -- 19,528 -- Earnings per share $ 0.30 -- $ 0.26 -- Cash and short-term investments $ 27,720 $ 32,837 Total assets 137,358 107,606 Shareholders' equity 99,963 74,038 Sept. 5, Percent of Sept. 7, Percent of 36 Weeks Ended: 1992 Sales 1991 Sales Sales $313,079 100.0 $268,396 100.0 Cost of sales and related occupancy expenses 233,194 74.5 201,146 74.9 Operating expenses 55,230 17.6 47,139 17.6 Operating income 24,655 7.9 20,111 7.5 Interest income 568 0.2 914 0.3 Earnings before taxes 25,223 8.1 21,025 7.8 Income taxes 8,464 2.7 7,162 2.7 Net earnings $ 16,759 5.4 $ 13,863 5.1 Average shares outstanding 19,618 -- 19,503 -- Earnings per share $ 0.85 -- $ 0.71 -- -0- 9/22/92 /CONTACT: Marc Evanger of Quality Food Centers, 206-455-3761/ (QFCI) CO: Quality Food Centers Inc. ST: Washington IN: REA SU: ERN
LM-JH -- SE006 -- 1989 09/22/92 08:02 EDT
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|Date:||Sep 22, 1992|
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