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(LOS ANGELES) — Unified Western Grocers, Inc., the largest wholesale grocery distributor in the Western United States, announced improved earnings for the fiscal quarter ended January 1, 2005 ("2005 period") over the fiscal quarter ended December 27, 2003 ("2004 period").
The Los Angeles-based cooperative achieved earnings of $13.6 million before patronage dividends and income taxes for the 2005 period, a 65.5 percent improvement over the 2004 period. Net earnings for the Company in the 2005 period were $3.9 million, an increase of $1.9 million over the prior year. While sales were down 8.6% from the previous year, this was due largely to a lockout that impacted three major retail grocery chains in Southern California in 2004. The Company's improved performance reflects improvements in gross margin and the results of continued efforts at controlling costs.
The Company's strong earnings and operations performance generated cash flow of approximately $16.4 million in the 2005 period and contributed to the Company's ability to reduce debt in the 2005 period. The Company reduced total outstanding debt by $6.9 million to $194.4 million at January 1, 2005 from $201.3 million at October 2, 2004. Since 2002, the Company has reduced its outstanding debt by $111.4 million.
"Investments we have made over the past several years to improve the efficiency of our distribution system are beginning to pay big dividends," said Al Plamann, president and chief executive officer, Unified Western Grocers, Inc. "We have seen dramatic improvements in productivity at our warehouses during the past year and now we're seeing how those numbers are having a positive impact on our earnings.
"Although our sales volume was not as high as it was during last year's strike, our core business remains strong," said Plamann. "Additionally, many of our members are planning to open new stores this year, which should result in additional sales in the future."
Unified Western Grocers, Inc. is a retailer-owned wholesale grocery distributor that supplies independent retailers throughout the Western United States. Unified and its subsidiaries, which generated approximately $3 billion in sales during fiscal 2004, offer independent retailers all the resources they need to compete in the supermarket industry.
An online version of Unified's Form 10-K, filed with the Securities and Exchange Commission, is available on Unified's website at www.uwgrocers.com and at www.sec.gov/edgar.shtml.
Safe Harbor Statement
This press release contains forward-looking statements about the future performance of Unified Western Grocers, Inc. based on Management's assumptions and beliefs in light of information currently available to it. There are a variety of factors that could cause actual and future results to differ materially from those anticipated by the statements made above. These factors are outlined in the Company's Form 10-K and other interim reports filed with the Securities and Exchange Commission. Furthermore, Unified undertakes no obligation to update, amend or clarify forward-looking statements whether as a result of new information, future events, or otherwise.
Unified Western Grocers, Inc.
(dollars in thousands)
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For the fiscal quarter-ended |
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January 1,
2005 |
December 27,
2003 |
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Net sales |
$729,686 |
$798,200 |
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Operating income |
$17,438 |
$12,982 |
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Earnings before patronage
dividends and income taxes |
$13,570 |
$8,198 |
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Patronage dividends |
$8,152 |
$5,053 |
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Net earnings |
$3,882 |
$1,951 |
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