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STOP & SHOP ANNOUNCES THIRD QUARTER RESULTS

 QUINCY, Mass., Dec. 6 /PRNewswire/ -- The Stop & Shop Companies, Inc. (NYSE: SHP) today announced third quarter results showing a 6 percent in sales and a net profit of $12,400,000, a 14 percent increase over last year.
 Sales for the twelve weeks ended Nov. 6, 1993 were $806,700,000, compared with $759,500,000 for the same period last year, a 6 percent increase. Earnings from continuing operations before income tax provision were $23,200,000, a 22 percent increase over last year's restated $19,000,000. Earnings for 1992 have been restated to reflect adoption, in the first fiscal quarter of 1993, of Statement of Financial Accounting Standards (SFAS) No. 109, "Accounting for Income Taxes."
 Net earnings for the third quarter were $12,400,000 or 24 cents per share, compared with a restated $10,900,000 or 21 cents per share, in the same period of the prior year.
 Sales for the forty weeks ended Nov. 6, 1993 were $2,697,200,000, compared with $2,542,000,000 for the prior year, a 6 percent increase. Year-to-date earnings from continuing operations before income tax provision were $90,000,000, a 26 percent increase over last year's restated $71,600,000.
 Year-to-date earnings from continuing operations were $44,900,000 or 86 cents per share for the 40 weeks ended Nov. 6, 1993, after reflecting a reduction in earnings of $4,500,000 in the second quarter due to Federal tax law changes. This compared with a restated $40,700,000 or 79 cents per share for the same period last year.
 Net earnings, year-to-date, were $39,100,000 or 75 cents per share, after reflecting a charge earlier this year of $5,800,000 caused by the adoption of SFAS No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions." This compared with a restated net loss of $182,700,000 or $3.54 per share for the same period last year. The prior year's figures included Bradlees, which became a discontinued operation, as well as extraordinary loss due to early retirement of high interest debt.
 The company is modifying its method of computing comparable store sales to include all enlargements of existing stores. This method is utilized by a predominant number of supermarket companies.
 The company also will include store replacements in this computation. The Superstore Program, begun in 1982, has replaced 44 conventional stores through the fiscal year ended Jan. 30, 1993. In 1993, 1994 and 1995, it is anticipated that the acceleration of this program will replace an additional 20 conventional stores. The company believes that inclusion of replacement stores in reported comparable store sales provides more useful information to the public.
 Reporting comparable store sales on the basis described, recent history would reflect the following:
 F/Y/E F/Y/E F/Y/E
 1/29/94 1/30/93 2/1/92
 As As As
 Reported Reported Reported
 1st Quarter 3pct 0 1pct 0 2pct 2pct
 2nd Quarter 4pct 1pct 1pct -1pct 2pct 1pct
 3rd Quarter 2pct -1pct(a) 2pct 0 0 0
 4th Quarter 3pct 1pct 1pct 0
 Year-To-Date 3pct 0(a)
 Fiscal Year 2pct 0 1pct 1pct
 (a) F/Y/E 1/29/94 3rd Quarter and Year-To-Date computed on prior basis.
 During the third quarter, Stop & Shop opened new superstores in Wappingers Falls, New York and Southington, Conn., as well as replacement superstores in Kingston, Mass., and Simsbury, Conn. On Dec. 3, the company opened replacement superstores in North Attleboro and
Dorchester (South Bay), Mass. The company expects to open two additional superstores in Massachusetts in January, one a new location in Agawam and the other an enlargement in Framingham. This will bring to 14 the number of superstores opened this fiscal year. At least 12 Super Stop & Shops are expected to open in fiscal 1994.
 Stop & Shop, New England's largest supermarket company, now operates 122 Stop & Shop supermarkets, including 84 superstores, in Conn., Mass., Rhode Island and New York.
 THE STOP & SHOP COMPANIES, INC.
 AND SUBSIDIARIES
 Consolidated Statements of Operations
 (Unaudited)
 (In Thousands Except Per Share Amounts)
 12 Weeks Ended 40 Weeks Ended
 11/6/93 11/7/92(c) 11/6/93 11/7/92(c)
 Retail sales $806,745 $759,468 $2,697,229 $2,541,970
 Cost and expenses:
 Cost of goods sold,
 buying and warehousing
 costs 588,228 559,528 1,969,119 1,876,633
 Selling, store operating
 and administrative
 expenses 159,176 144,307 519,277 473,949
 Depreciation and
 amortization 16,290 14,508 52,019 46,983
 Amortization of goodwill
 and lease interests 2,630 2,595 8,767 8,650
 Costs and expenses 766,324 720,938 2,549,182 2,406,215
 Operating profit 40,421 38,530 148,047 135,755
 Interest expense, net 17,246 19,514 58,090 64,159
 Earnings from continuing
 operations before income
 tax provision 23,175 19,016 89,957 71,596
 Income tax provision(a) 10,775 8,137 45,057 30,919
 Earnings from continuing
 operations(a) 12,400 10,879 44,900 40,677
 Loss from discontinued
 operations, net of
 income tax benefit --- --- --- (13,958)
 Loss on disposition of
 discontinued operations --- --- --- (194,539)
 Extraordinary loss, net of
 income tax benefit --- --- --- (14,900)
 Cumulative effect of change
 in accounting method, net
 of income tax benefit(b) --- --- (5,806) ---
 Net earnings (loss)(a) $12,400 $10,879 $39,094 $(182,720)
 Net earnings (loss) per
 common share and share
 equivalents:
 Earnings from continuing
 operations(a) 24 cents 21 cents 86 cents 79 cents
 Loss from discontinued
 operations, net of
 income tax benefit --- --- --- (27 cents)
 Loss on disposition
 of discontinued
 operations --- --- --- (3.77)
 Extraordinary loss,
 net of income tax
 benefit --- --- --- (29 cents)
 Cumulative effect of
 change in accounting
 method, net of income
 tax benefit(b) --- --- (11 cents) ---
 Net earnings (loss)(a) 24 cents 21 cents 75 cents ($3.54)
 Weighted average number
 of common shares and share
 equivalents outstanding 51,592 51,544 51,944 51,542
 (a) The 40 weeks ended Nov. 6, 1993 includes a net charge of $4,500 (9 cents per share) as a result of the increase in the corporate Federal income tax rate, as required under SFAS 109, "Accounting for Income Taxes".
 (b) Represents immediate recognition of the cumulative effect of adopting SFAS 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions", in the first fiscal quarter.
 (c) Restated to reflect retroactive adoption of SFAS 109 in the first fiscal quarter of 1993.
 -0- 12/6/93
 /CONTACT: S. Terry Vandewater of Stop & Stop, 617-770-6025)
 (SHP)


CO: Stop & Shop ST: Massachusetts IN: REA SU: ERN

JL-DJ -- NE001 -- 0654 12/06/93 09:28 EST
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Date:Dec 6, 1993
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