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RICHFOOD ANNOUNCES RECORD FISCAL YEAR NET EARNINGS

 RICHMOND, Va., June 10 /PRNewswire/ -- Richfood Holdings, Inc. (NASDAQ: RCHF) today announced its fourth consecutive fiscal year of record net earnings. Record net earnings were $15.8 million, or $1.51 per share, for the 1993 fiscal year ended May 1, 1993. These earnings represent a 15.0 percent increase over net earnings of $13.8 million, or $1.32 per share, for the previous fiscal year. The company operated at a net after tax margin of 1.45 percent for fiscal 1993, compared to
1.29 percent for fiscal 1992. Sales for the 52-week fiscal 1993 were $1.091 billion, a 2.1 percent increase over sales of $1.068 billion for the 53-week fiscal 1992.
 Donald D. Bennett, president and chief executive officer, said: "We are extremely pleased with our operating performance in fiscal 1993. This performance, as measured by net margin and return on equity, establishes Richfood as the industry leader in profitability. Our profitability is driven by operating efficiencies which directly benefit our customers by providing them with merchandise at the lowest possible cost. Serving our retail customers efficiently is our highest priority and this philosophy has proven to be an integral part of our success."
 Sales in fiscal 1993 included approximately $67.0 million of sales to new customers serviced as a result of the company's acquisition of certain assets and assumption of certain contracts of the Civilian Wholesale Division of B. Green and Company, Inc. ("Civilian Division") on Jan. 22, 1993. Sales for fiscal 1992 included approximately $20.1 million of sales associated with the 53rd week in the prior fiscal year. Excluding the effects of the 53rd week last year and fiscal 1993 Civilian Division sales, company sales declined 2.3 percent from fiscal 1992 to fiscal 1993. This decline was primarily a result of overall economic conditions, increasing consumer preferences for lower- priced private label products, deflation in the company's perishable lines of products and certain customer store closings.
 Mr. Bennett commented: "The acquisition of the B. Green Civilian Division was significant for us. These new customers represent additional sales volume that will be served from our 1.2 million square foot warehouse in Mechanicsville, Va. With this additional volume we are able to realize further economies and efficiencies out of our facility and operation. These economies and efficiencies will allow us to continue to be the low cost provider to our customers, keeping them a competitive force in the marketplace."
 Gross margin increased to 8.26 percent in fiscal 1993, up from 7.88 percent in fiscal 1992. Operating and administrative expenses increased from 5.67 percent of sales in fiscal 1992 to 5.99 percent of sales in fiscal 1993. Interest income, net of interest expense, was $0.1 million in fiscal 1993, as compared to interest expense that exceeded interest income in fiscal 1992 by $1.8 million.
 Mr. Bennett commented further: "Our gross margin continues to remain at levels above last year as consumer purchases of higher-margin private label merchandise remain strong. Increases in operating and administrative expenses were primarily due to one-time expenses incurred in the transition of the Civilian Division sales volume to our existing facility. The transition of this volume was completed in mid-March and we are now serving all customers from our existing facility. Excluding the transition expenses, operating and administrative expenses, as a percent of sales, decreased in fiscal 1993 as compared to fiscal 1992."
 For the 16-week quarter ended May 1, 1993, the company reported net earnings of $4.9 million, or $0.46 per share, a 3.6 percent decrease from net earnings of $5.1 million, or $0.49 per share, for the 17-week quarter ended May 2, 1992. Fiscal 1993 fourth quarter sales, including 14 weeks of sales to new customers from the Civilian Division acquisition ($67.0 million), were $370.8 million. Fourth quarter fiscal 1992 sales, including sales in the 17th week of that quarter ($20.1 million), were $338.9 million. As stated above, sales decline on a same store basis was primarily a result of overall economic conditions, increasing consumer preferences for lower-priced private label products, deflation in perishable lines of products and certain customer store closings. This decline is expected to be offset by the acquisition of additional stores by existing customers in the first quarter of fiscal 1994. Excluding revenues and expenses related to the Civilian Division during this transition quarter, the company had increased profitability over the same quarter of last year.
 Richfood Holdings, Inc. is the largest wholesale food distributor in its Mid-Atlantic region and the 11th largest in the United States. The Company sells a complete selection of national brand and private label groceries, frozen food, meat, produce, dairy, bakery and delicatessen products to approximately 450 customers that operate approximately 750 retail supermarkets in Virginia, Maryland, North Carolina, Delaware, West Virginia and the District of Columbia.
 RICHFOOD HOLDINGS, INC. AND SUBSIDIARIES
 Consolidated Statements of Earnings
 (Dollar amounts in thousands, except per share data)
 Periods ended Fourth Quarter Fiscal Year
 5/1/93 5/2/92 5/1/93 5/2/92
 (16 Weeks) 17 Weeks) (52 Weeks) (53 Weeks)
 Sales $ 370,791 $ 338,864 $1,091,438 $1,068,473
 Costs and expenses,
 net:
 Cost of goods sold 338,753 311,048 1,001,307 984,280
 Operating and
 administrative
 expenses 24,064 19,620 65,361 60,556
 Interest expense 1,135 746 3,175 2,911
 Interest income (954) (597) (3,278) (1,115)
 Earnings before
 income taxes 7,793 8,047 24,873 21,841
 Income taxes 2,896 2,966 9,030 8,070
 Net earnings $ 4,897 $ 5,081 $15,843 $13,771
 Net earnings per
 common share $ 0.46 $ 0.49 $ 1.51 $ 1.32
 Average common shares
 outstanding 10,583 10,442 10,526 10,437
 -0- 6/10/93
 /CONTACT: David Walke or Bernie Kilkelly of Morgen-Walke Associates, 212-850-5600, for Richfood Holdings, Inc./
 (RCHF)


CO: Richfood Holdings, Inc. ST: Virginia IN: REA SU: ERN

TS -- NY021 -- 4446 06/10/93 10:13 EDT
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Date:Jun 10, 1993
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