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SUPERVALU INC. REPORTS RESULTS

 MINNEAPOLIS, April 13 /PRNewswire/ -- Supervalu Inc. (NYSE: SFS) today announced record results for its fourth quarter ended Feb. 27, 1993. On an operating basis, results for the year also represented record results.
 Sales for this year's 12-week quarter were $3.9 billion, up 47 percent over last year's 13-week quarter's sales of $2.6 billion. Sales would have increased about 1 percent excluding the change in number of weeks and the Wetterau acquisition. Net earnings were $49.9 million compared with $47.5 million and earnings per share rose 8 percent, from $.65 to $.70.
 Sales for the 52-week year were $12.6 billion, up 18 percent from last year's 53-week results of $10.6 billion. On a comparable weeks basis, sales increased 3 percent after excluding the Wetterau acquisition. Earnings for the year were $164.5 million, or $2.31 per share. Last year's total net earnings were $194.4 million, or $2.60 per share, which included a $51.3 million ($.69 per share) gain on the sale of a 54 percent interest in ShopKo Stores, Inc. and a $13.3 million ($.18 per share) charge related to the adoption of SFAS No. 106 covering certain retiree benefits.
 "We are very pleased with our results for the quarter and the year," said Mike Wright, chairman and CEO. "Integration of the Wetterau acquisition is moving along very well, adding to the quarter's earnings, while our pre-acquisition businesses continue to show improvement despite the sluggish sales environment."
 Wright continued, "This was a year of significant accomplishment. We completed a major acquisition, finishing another phase in our strategic repositioning, took important first steps to extend our business into the wholesale club and international areas, and delivered very good earnings growth. Our earnings increased about 15 percent for both the fourth quarter and year after adjusting for the extra week, the two non-recurring items in fiscal 1992 plus the changed ownership percentage in ShopKo."
 Sales for the quarter grew about 45 percent in the company's food distribution segment, but despite a 1 percent increase in tonnage would have been flat without the Wetterau acquisition and after adjusting for last year's extra week. Year-to-date sales increased 16 percent; after adjustments, sales were up 1 percent. Sales were affected, as they were through most of fiscal 1993, by the weak economic climate and slow consumer spending, a modest deflation in food products, as well as the Jan. 8, 1993 sale of the company's Salem division. The quarter's operating contribution improved 32 percent because of the Wetterau acquisition and tight expense control.
 For the fourth quarter, the company's retail food segment continued the excellent trend established during the third quarter; operating earnings increased 83 percent on a 53 percent sales increase. For the year, sales increased 35 percent leading to a near doubling of operating profit contribution. Retail segment same-store sales declined about 2 percent for the year, but improved to a slightly positive result for the quarter, both calculated on a same number of weeks basis. During the quarter, 7 new stores were opened. At quarter-end, the company operated 246 retail stores, principally under the names Cub Foods, Laneco, Shop 'n Save and Scott's. Also included in the total are 63 company-operated Save-A-Lot stores, whose results are reported within the retail segment.
 Borrowing related to the Wetterau acquisition increased interest expense $9.2 million for the quarter and $12.4 million year-to-date. In addition, the company incurred during the quarter $2.5 million in charges for amortization of goodwill and $3.4 million for amortization of fixed asset write-ups related to the acquisition.
 As previously announced the company has established a $450 million capital budget for fiscal 1994. Approximately $255 million is slated for food distribution; $105 million for property, plant and equipment expenditures, and $150 million reserved to help the growth of our independent retailers. The capital budget also includes $176 million for the company's corporately-owned retail operations. This provides funding for 26 new retail units, 15 of which are corporate Save-A-Lot units, as well as the company's first two Max Club warehouse stores. The first such unit is expected to open during August and will be located in Yuma, Ariz.
 Supervalu is the nation's largest food distribution company, supplying about 5,500 stores in 44 states, and the 14th largest food retailer through the operation of corporately-owned stores.
 SUPERVALU INC. AND SUBSIDIARIES
 Consolidated Statements of Earnings
 (In thousands, except per share data)
 Periods Ended Year-to-Date Fourth Quarter
 2/27/93 2/29/92 2/27/93 2/29/92
 (52 weeks) (53 weeks) (12 weeks) (13 weeks)
 Net sales $12,568,000 $10,632,301 $3,853,737 $2,628,724
 Costs and expenses:
 Cost of sales 11,531,394 9,807,633 3,511,655 2,394,474
 Selling and
 administrative
 expenses 742,511 582,869 247,430 165,153
 Amortization of
 goodwill 4,346 920 2,742 230
 Interest
 Interest expense 83,066 72,693 31,093 15,262
 Interest income 28,863 38,373 10,478 9,611
 Interest expense, net 54,203 34,320 20,615 5,651
 Total costs and
 expenses 12,332,454 10,425,742 3,782,442 2,565,506
 Earnings before equity
 in earnings of ShopKo,
 gain on sale of ShopKo
 stock, income taxes
 and cumulative
 effect of change
 in accounting
 principle 235,546 206,559 71,295 63,216
 Equity in earnings
 of ShopKo 23,072 32,176 8,042 9,744
 Gain on sale of
 ShopKo stock -- 84,105 -- --
 Earnings before
 income taxes and
 cumulative effect
 of change in accounting
 principle 258,618 322,840 79,337 72,960
 Provision for
 income taxes 94,092 115,175 29,388 25,416
 Earnings before
 cumulative effect
 of change in accounting
 principle 164,526 207,665 49,949 47,544
 Cumulative effect of
 change in accounting
 principle -- (13,288) -- --
 Net earnings $164,526 $194,377 $49,949 $47,544
 Net earnings per
 common share:
 Before cumulative
 effect of change in
 accounting principle $2.31 $2.78 $0.70 $0.65
 Cumulative effect of
 change in accounting
 principle -- (0.18) -- --
 Net earnings per
 common share $2.31 $2.60 $0.70 $0.65
 Weighted average number
 of common shares
 outstanding 71,341 74,700 71,398 72,972
 Dividends declared
 per common share $0.765 $0.705 $0.195 $0.180
 Supplemental information:
 After-tax LIFO
 income ($3,384) ($1,064) ($1,751) ($369)
 -0- 4/13/93
 /CONTACT: Jeff Girard, 612-828-4028, or Rita Simmer, 612-828-4429, both of Supervalu Inc./
 (SFS)


CO: Supervalu Inc. ST: Minnesota IN: FOD REA SU: ERN

LD -- NY009 -- 4997 04/13/93 07:01 EDT
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Date:Apr 13, 1993
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