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RICHFOOD HOLDINGS, INC., ANNOUNCES RECORD SECOND QUARTER NET EARNINGS

 RICHMOND, Va., Nov. 3 /PRNewswire/ -- Richfood Holdings, Inc. (NASDAQ-NMS: RCHF), today announced record net earnings of $4.5 million, or 21 cents per share, for the 12-week period ending Oct. 16, 1993, a 27.7 percent increase over net earnings of $3.5 million, or 17 cents per share (as adjusted for the company's September 1993 2-for-1 stock split), for the comparable prior year quarter.
 Sales for the second quarter of fiscal 1994 were $283.9 million, a 20.4 percent increase over sales of $235.8 million for the second quarter of fiscal 1993. Sales for the second quarter of fiscal 1994 included approximately $49.2 million of sales to former customers of the Civilian Division of B. Green & Company, Inc., now serviced by the company. Excluding sales to these customers, fiscal 1994 second quarter sales declined 0.5 percent from the same quarter last year. Sales were affected by decreases in manufacturers' prices for cigarettes, continued deflation in food prices and increased consumer demand for lower-priced products.
 For the 24-week period ended Oct. 16, 1993, the company reported net earnings of $8.9 million, an increase of 28.8 percent over net earnings of $6.9 million for the comparable prior year period. Net earnings per share for the 24-week period ended Oct. 16, 1993, were 42 cents, compared to 33 cents per share (as adjusted for the September 1993 2-for-1 stock split) for the comparable prior year period. Fiscal 1994 year-to-date sales were $577.3 million, a 19.9 percent increase over sales of $481.4 million for the comparable period of fiscal 1993.
 Gross margin increased to 8.48 percent for the second quarter of fiscal 1994 from 7.98 percent for the comparable quarter of fiscal 1993, primarily as a result of increased consumer purchases of higher-margin product lines and the effects of deflation in food prices on the company's LIFO reserve. Operating and administrative expenses were $16.5 million, or 5.83 percent of sales, for the second quarter of fiscal 1994, compared to $13.5 million, or 5.73 percent of sales, for the second quarter of fiscal 1993.
 Donald D. Bennett, president and chief executive officer, said: "We are extremely pleased with our record second quarter net earnings. Our profitability remains strong despite the weak economic environment. We have begun to realize increasing productivity in our warehouse and transportation operations as our new associates, hired to handle the additional volume from the B. Green acquisition, gain experience. Second quarter expenses reflect higher labor costs as a result of initially lower productivity in the new labor force."
 Inventory levels were $85.5 million at Oct. 16, 1993, compared to $67.8 million at Oct. 17, 1992. Average inventory turnover was 15.41 times for the second quarter of fiscal 1994, compared to 14.24 times for the same quarter of fiscal 1993.
 Bennett added: "We continue to manage our inventories efficiently and are well-prepared for the holiday selling season. In addition, on Oct. 1, the new 65,000-square-foot frozen food expansion to our Mechanicsville, Va., warehouse became fully operational. This addition will allow us to centralize frozen food storage at our warehouse, reducing outside storage and transportation costs. Our freezer expansion increases our frozen food capacity by over 65 percent to meet consumer demand for a greater volume and variety of frozen food products."
 Richfood Holdings, Inc., is the largest wholesale food distributor in its mid-Atlantic operating region and the 11th largest in the United States. The company sells a complete selection of national brand and private label groceries, frozen foods, 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
 (unaudited)
 (Dollar amounts in thousands except per share data)
 Second Quarter Ended
 Oct. 16, 1993 Oct. 17, 1992
 (12 weeks) Percent (12 weeks) Percent
 Sales $ 283,921 100.00 $ 235,800 100.00
 Costs and expenses, net:
 Cost of goods sold 259,844 91.52 216,986 92.02
 Operating and
 administrative expenses 16,543 5.83 13,504 5.73
 Interest expense 1,041 0.37 756 0.32
 Interest income (756) (0.27) (899) (0.38)
 Earnings before income taxes 7,249 2.55 5,453 2.31
 Income taxes 2,791 0.98 1,963 0.83
 Net earnings $ 4,458 1.57 $ 3,490 1.48
 Net earnings
 per common share $ 0.21 $ 0.17
 Average common shares
 outstanding (in thousands) 21,209 21,001
 Year-to-Date
 Oct. 16, 1993 Oct. 17, 1992
 (24 weeks) Percent (24 weeks) Percent
 Sales $ 577,288 100.00 $ 481,429 100.00
 Costs and expenses, net:
 Cost of goods sold 529,321 91.69 443,517 92.13
 Operating and
 administrative expenses 33,139 5.74 27,261 5.66
 Interest expense 1,956 0.34 1,498 0.31
 Interest income (1,433) (0.25) (1,689) (0.35)
 Earnings before income taxes 14,305 2.48 10,842 2.25
 Income taxes 5,437 0.94 3,957 0.82
 Net earnings $ 8,868 1.54 $ 6,885 1.43
 Net earnings
 per common share $ 0.42 $ 0.33
 Average common shares
 outstanding (in thousands) 21,187 20,968
 RICHFOOD HOLDINGS, INC., AND SUBSIDIARIES
 Consolidated Balance Sheets
 (unaudited)
 (Dollar amounts in thousands)
 Oct. 16, Oct. 17,
 1993 1992
 Assets
 Current assets:
 Cash and cash equivalents
 (substantially restricted) $ 2,167 $ 2,874
 Receivables, less allowance
 for doubtful accounts of
 $1,483 and $1,826 57,810 38,700
 Inventories 85,470 67,839
 Other current assets 6,412 941
 Total current assets 151,859 110,354
 Notes receivable, less allowance
 for doubtful accounts of
 $2,554 and $2,638 39,295 26,806
 Property and equipment, net 37,591 31,929
 Other assets 22,408 13,643
 Total Assets $ 251,153 $ 182,732
 Liabilities and Stockholders' Equity
 Current liabilities:
 Current installments of
 long-term debt and capital
 lease obligations $ 5,340 $ 9,336
 Accounts payable 77,734 61,242
 Accrued expenses and other
 current liabilities 9,438 9,216
 Total current liabilities 92,512 79,794
 Long-term debt and capital
 lease obligations 57,915 24,891
 Deferred credits and other 10,547 5,306
 Stockholders' equity
 Preferred stock, without
 par value -- --
 Common stock, without
 par value 22,686 21,540
 Retained earnings 67,493 51,201
 Total stockholders' equity 90,179 72,741
 Total Liabilities and
 Stockholders' Equity $ 251,153 $ 182,732
 -0- 11/3/93
 /CONTACT: John E. Stokely, executive vice president, finance and administration, of Richfood Holdings, 804-746-6381/
 (RCHF)


CO: Richfood Holdings ST: Virginia IN: FOD SU: ERN

MH-KD -- DC002 -- 0007 11/03/93 09:27 EST
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Publication:PR Newswire
Date:Nov 3, 1993
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