Printer Friendly

VONS REPORTS INCREASED OPERATING RESULTS IN THE FIRST QUARTER OF 1992

VONS REPORTS INCREASED OPERATING RESULTS IN THE FIRST QUARTER OF 1992
 ARCADIA, Calif., April 20 /PRNewswire/ -- The Vons Companies Inc. (NYSE: VON) today announced earnings from operations (earnings before extraordinary items) for the first quarter ended March 22, 1992, of $15.1 million, compared with $12.7 million in the year-ago quarter, an 18.9 percent increase. Earnings from operations per share was $.35 in the first quarter of 1992, compared with $.33 per share in the year-ago quarter, a 6.1 percent increase despite an increase of 4.5 million shares outstanding as a result of the company's June 1991 common stock offering.
 "We are pleased with our ability to consistently improve our operating earnings performance, particularly given the difficult economic environment. We believe our commitment to investing in programs which improve our customers' shopping experience has enabled us to be successful," said Roger E. Stangeland, chairman and chief executive officer.
 Sales for the first quarter of 1992 were $1.3 billion, compared with $1.2 billion in the year-ago quarter, a 3.7 percent increase. The sales increase primarily reflects the Jan. 28, 1992, acquisition of 18 Williams Bros. Markets stores.
 Same store sales in the first quarter of 1992 were up 0.3 percent over the year-ago quarter. Sales reflect the benefit of the company's on-going remodel and upgrade programs which have helped mitigate the impact of the recession and deflation in key product categories.
 "We see our customers continuing to be cautious in their spending patterns. As a result, while pleased with our performance, we continue to be cautious in our short-term outlook," said Stangeland.
 Gross margin improved dramatically in the first quarter of 1992 increasing to 24.8 percent, compared with 23.7 percent in the year-ago quarter. Improved gross margin is the result of the company's on-going remodel and upgrade programs, use of promotional and other buying opportunities as well as the pass through of market-wide structural cost increases. Gains in gross margin were made despite increases in coupon usage, coupon value and the amount of items purchased on advertised specials.
 Selling and administrative expenses as a percent of sales increased to 21.0 percent in the first quarter of 1992 from 19.8 percent in the year ago quarter. This increase reflects labor rate increases as well as the impact of the softer sales environment.
 Operating cash flow (defined as operating income plus depreciation and amortization of goodwill and other assets and LIFO charge) in the first quarter of 1992 was $66.6 million or 5.3 percent of sales, compared with $63.7 million or 5.2 percent of sales in the year ago quarter.
 Net interest expense for the first quarter of 1992 was $17.7 million, a decrease of $4.2 million from the first quarter of 1991. This decrease is due to the reduction in revolving debt borrowings, a lower weighted average interest cost on revolving debt and the repurchase of senior subordinated and subordinated debt.
 Net income in the first quarter of 1992 includes a $0.5 million extraordinary after tax charge related to debt refinancing. This contrasts with a $7.6 million extraordinary benefit from utilization of net operating loss carryforwards in the first quarter of 1991. Net income in the first quarter of 1992 was $14.6 million, or $.34 per share compared with $20.3 million or $.52 per share in the first quarter of 1991.
 On Jan. 31, 1992, the company filed a $375 million shelf registration statement for debt securities. On March 23, 1992, the company issued $150 million of 9 5/8 percent senior subordinated notes. The company has also notified holders of its 12 7/8 percent senior subordinated reset notes that the entire issue will be redeemed on May 1, 1992. In the first quarter of 1992, the company repurchased $9.7 million in senior subordinated and subordinated debt.
 During the first quarter of 1992, the company opened one new Vons Food and Drug store in Henderson, Nev., completed seven remodels and one upgrade. No stores were closed. At quarter end, the company operated 339 stores.
 Cash capital expenditures in the first quarter of 1992 were $37.2 million compared with $24.5 million in the first quarter of 1991.
 On March 22, 1992, senior debt and capital lease obligations were $364.1 million and subordinated debt was $368.2 million. Unused credit under the Revolving Credit Facility at the end of the first quarter of 1992 was $208.4 million.
 The Vons Companies Inc. is the largest supermarket operator in Southern California. The company currently operates 340 stores under the names Vons, Vons Food and Drug, Pavilions, Tianguis and Williams Bros. and also operates the Jerseymaid dairy and ice cream plant.
 THE VONS COMPANIES INC.
 Results of Operations
 (Millions of dollars, except share data)
 (unaudited)
 12 weeks ended
 March 22, March 24,
 1992 1991
 Sales $1,268.2 $1,223.3
 Costs and expenses:
 Cost of sales, buying and occupancy 953.5 933.4
 Selling and administrative expenses 266.1 242.3
 Amortization of excess cost over
 net assets acquired 3.3 3.2
 Operating income 45.3 44.4
 Interest expense, net 17.7 21.9
 Income before income tax provision and
 extraordinary items 27.6 22.5
 Income tax provision 12.5 9.8
 Income before extraordinary items 15.1 12.7
 Extraordinary items (.5) 7.6
 Net income $14.6 $20.3
 Income per common share:
 Income before extraordinary items $.35 $.33
 Extraordinary items (.01) .19
 Net income $.34 $.52
 Weighted average common shares and common
 share equivalents 43,525,388 38,963,284
 Certain Non-Cash Charges
 Depreciation and amortization of
 property and capital leases $15.2 $13.4
 Amortization of excess cost over net
 assets acquired and other assets 4.4 4.1
 Amortization of debt discount and deferred
 financing costs 1.5 1.8
 LIFO charge 1.7 1.8
 Total non-cash charges $22.8 $21.1
 THE VONS COMPANIES INC.
 Consolidated Balance Sheets
 (in millions of dollars)
 (unaudited)
 March 22, Dec. 29,
 1992 1991
 Assets
 Current assets:
 Cash $5.2 $6.7
 Accounts receivable 34.4 36.2
 Inventories 350.4 359.2
 Other 46.8 45.5
 Total current assets 436.8 447.6
 Property and capital leases, net 839.2 795.0
 Excess of cost over net assets acquired 526.7 505.4
 Other 58.3 54.6
 Total assets $1,861.0 $1,802.6
 Liabilities and Shareholders' Equity
 Current liabilities:
 Current maturities of long-term debt
 and capital lease obligations $5.5 $5.5
 Accounts payable 295.7 312.6
 Accrued liabilities 228.0 205.2
 Total current liabilities 529.2 523.3
 Accrued self-insurance and
 non-current liabilities 112.7 110.3
 Senior debt and capital lease obligations 358.6 314.5
 Subordinated debt, net 368.2 376.8
 Shareholders' equity 492.3 477.7
 Total liabilities and shareholders' equity $1,861.0 $1,802.6
 -0- 11/4/91
 /CONTACT: Mary McAboy of The Vons Companies, 818-821-7897/
 (VON) CO: The Vons Companies Inc. ST: California IN: REA SU: ERN 1298 04-20-92 18:01 EDT KJ-CH -- LA033 -- 0285 04/20/92 18:08 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 20, 1992
Words:1194
Previous Article:MOODY'S ASSIGNS 'MIG 2' RATING TO $2.3 BILLION NEW YORK STATE 1992 TAX AND REVENUE ANTICIPATION NOTES
Next Article:MERIDIAN BANCORP ISSUES STATEMENT


Related Articles
SAFEWAY INC. ANNOUNCES 1991 EARNINGS
VONS REPORTS 31 PERCENT INCREASE IN 1991 EARNINGS FROM OPERATIONS
SAFEWAY INC. ANNOUNCES FIRST QUARTER, 1992 EARNINGS
SAFEWAY ANNOUNCES SECOND QUARTER 1992 EARNINGS
VONS REPORTS SECOND QUARTER RESULTS
VONS REPORTS 23 PERCENT INCREASE IN OPERATING EARNINGS IN THIRD QUARTER 1992
VONS ESTIMATES FIRST QUARTER 1993 SAME-STORE SALES
VONS REPORTS FIRST QUARTER 1993 RESULTS
VONS REPORTS 1993 YEAR END RESULTS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters