Printer Friendly

RYKOFF-SEXTON POSTS THIRD QUARTER LOSS INCLUDING A RESTRUCTURING CHARGE

 LOS ANGELES, March 9 /PRNewswire/ -- Rykoff-Sexton Inc. (NYSE: RYK) today announced it sustained a net loss for the third fiscal quarter ended Jan. 30, 1993, due in part to a one-time charge in connection with a company-wide restructuring.
 The net loss for the three-month period amounted to $22,449,000, equal to $1.93 per share, which included the one-time restructuring charge of $31,000,000, or on an after-tax basis, of $19,530,000, or $1.68 per share, and an additional provision of $1.4 million, primarily for bad debts. The company reported net income of $1,470,000, equal to $.13 per share, for the comparable third quarter a year ago. Sales for the third quarter, which had 13 weeks of operations, amounted to $360,043,000, compared with $389,894,000 in last year's third quarter, which had 14 weeks of operations.
 For the nine months ended Jan. 30, 1993, Rykoff-Sexton reported a net loss of $19,289,000, equal to $1.66 per share, including the one- time restructuring charge, the additional bad debt provision and the positive effect of FAS 109 accounting for income taxes, which amounted to $732,000, or $.06 per share. This compares with net income of $7,195,000, or $.62 per share, which included an extraordinary charge of $2,610,000, or $.23 per share, related to a litigation settlement. Sales for the year-to-date period were $1,124,657,000 for 39 weeks, compared with $1,141,053,000 last year, which consisted of 40 weeks.
 Mark Van Stekelenburg, who was elected president and chief executive officer on Dec. 7, 1992, said operating results for the quarter were impacted by lower than planned sales volume, partially due to continued weak market conditions and unusually poor weather in California and Arizona, the elimination of a few selected accounts and the closure of four small operations. During the quarter, the company experienced continued pressure on its gross profit margin due to the competitive environment and changes in customer and product mix. The additional $1.4 million provision primarily resulted from bad debts for two large accounts that filed for bankruptcy protection. Without this special charge, operating expenses were down compared to last year, adjusted for one less week.
 Van Stekelenburg said Rykoff-Sexton has embarked on an aggressive plan aimed at increasing sales, cutting operating expenses and improving its management information systems.
 He said the one-time restructuring charge was necessary because the company is making fundamental changes in the way it does business. Immediate actions are being carried forth, such as plant closures and the relocation of plants into more efficient facilities; elimination of redundancies between the company's two principal operating divisions; a reduction in the workforce; and the use of modern technology in warehousing and transportation. Van Stekelenburg said more than $4 million in annualized salary savings already has been achieved, and operating expenses for the third quarter were reduced 2.5 percent from the prior-year period on a comparable basis.
 "We have a directive from our board of directors to move swiftly and aggressively in re-positioning the company within all the markets we serve to capitalize on our strong brand recognition and to achieve profitable growth on a consistent basis," said Van Stekelenburg. "Rykoff-Sexton's extensive, quality product lines, highly trained sales force and stellar reputation among customers will provide a solid foundation on which to meet our goals."
 Rykoff-Sexton Inc. is a leading manufacturer and distributor of food and related products for restaurants, institutions and membership warehouse stores nationwide, as well as the country's largest restaurant equipment, supply, contract and design company. Manufacturing, processing and packaging operations are based in Los Angeles; Indianapolis; Englewood, N.J.; Brooklyn, N.Y.; and Des Moines, Iowa. The company's 28 distribution centers are located throughout the United States.
 RYKOFF-SEXTON INC.
 Condensed Consolidated Statements of Income
 (In thousands except per share and share data)
 (Unaudited)
 Third Quarter Year-to-Date
 13 Weeks 14 Weeks 39 Weeks 40 Weeks
 Ended Ended Ended Ended
 Jan. 30, Feb. 1, Jan. 30, Feb. 1,
 1993 1992 1993 1992
 Net sales $360,043 $389,894 $1,124,657 $1,141,053
 Income (loss)
 before
 provision for
 income taxes,
 extraordinary
 item and
 accounting
 change(a) (35,865) 2,449 (31,819) 16,341
 Provision
 (benefit)
 for income
 taxes (13,416) 979 (11,798) 6,536
 Income (loss)
 before
 extraordinary
 item and
 accounting
 change (22,449) 1,470 (20,021) 9,805
 Extraordinary
 item, net of
 income taxes(b) --- --- --- (2,610)
 Cumulative effect
 of change in
 accounting
 for income taxes --- --- 732 ---
 Net income
 (loss) (22,449) 1,470 (19,289) 7,195
 Earnings (loss)
 per share:
 Income (loss)
 before
 extraordinary
 item and
 accounting
 change(a) ($1.93) $.13 ($1.72) $.85
 Extraordinary
 item(b) --- --- --- (.23)
 Accounting
 change --- --- .06 ---
 Net income
 (loss) ($1.93) $.13 ($1.66) $.62
 Weighted
 average
 number of
 shares
 outstanding 11,622,072 11,594,501 11,619,629 11,581,074
 (a) Includes a one-time restructuring charge of $31 million.
 (b) Provision for litigation settlement.
 -0- 3/9/93
 /CONTACT: Richard J. Martin, VP of Rykoff-Sexton, 213-622-4131; or Roger S. Pondel of Pondel Parsons & Wilkinson, 310-207-9300, for Rykoff-Sexton/
 (RYK)


CO: Rykoff-Sexton Inc. ST: California IN: FOD SU: ERN

JB-JL -- LA005 -- 4365 03/09/93 08:51 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:Mar 9, 1993
Words:877
Previous Article:U.S. CAN CORPORATION ANNOUNCES PRICING OF INITIAL PUBLIC OFFERING
Next Article:RYKOFF-SEXTON SUSPENDS DIVIDEND
Topics:


Related Articles
RYKOFF-SEXTON INC. REPORTS NET INCOME
RYKOFF-SEXTON REPORTS RESULTS
RYKOFF-SEXTON REPORTS RESULTS
RYKOFF-SEXTON EXPECTS TO REPORT A NET LOSS FOR ITS FIRST FISCAL QUARTER
RYKOFF-SEXTON REPORTS PROFITABLE FOURTH QUARTER; LOSS FOR YEAR, INCLUDING THIRD QUARTER RESTRUCTURING CHARGE
RYKOFF-SEXTON REPORTS IMPROVED EARNINGS FOR FIRST QUARTER
RYKOFF-SEXTON REPORTS IMPROVED OPERATING EARNINGS FOR SECOND QUARTER
RYKOFF-SEXTON REPORTS IMPROVED SALES AND INCOME FOR THIRD QUARTER
Rykoff-Sexton Reports Sales, Earnings for Third Fiscal Quarter
U.S. Foodservice Reports 54% Earnings per Share Increase.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters