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(LOS ANGELES) — Unified Western Grocers, Inc. ("Unified" or the "Company"), the largest wholesale grocery distributor in the Western United States, announced improved earnings for the fiscal quarter ended July 2, 2005 ("2005 period") over the fiscal quarter ended June 26, 2004 ("2004 period").
The Los Angeles-based cooperative achieved net earnings of $2.5 million for the 2005 period, an increase of 9.5 percent over the prior year. Earnings before patronage dividends and income taxes were $9.8 million for the 2005 period compared to $8.3 million for the 2004 period. Sales were down slightly from $721.1 million during the 2004 period as compared to $715.4 million during the 2005 period, a decrease of 0.8 percent. The decrease was due, in part, to the acquisition of one of Unified's customers by a competitor who manufactures and distributes its own products. The decrease was partially offset by the opening of new stores by existing members. The Company's continuing strong performance reflects improvements in gross margin and the results of continued efforts at controlling costs.
The results through 39 weeks showed earnings before estimated patronage dividends and income taxes of $31.0 million, which is a 28.1 percent increase from the prior year. Net earnings year-to-date totaled $8.5 million versus $5.5 million in the previous year or a 56.3 percent increase.
The Company's strong earnings and operations performance generated cash flow from operating activities of approximately $30.3 million for the 39 weeks ended July 2, 2005 and contributed to the Company's ability to reduce debt during the period. The Company reduced total outstanding debt to $167.7 million at July 2, 2005 from $201.3 million at October 2, 2004, the end of our prior fiscal year.
"Although sales for the quarter were essentially flat, net earnings were nearly ten percent higher than they were a year ago," said Al Plamann, president and chief executive officer, Unified Western Grocers, Inc. "This was due largely to a continued focus on productivity enhancements and improvements to our distribution network."
"We are confident that we are on track for positive year-end results and are looking forward to a continuation of our Company's success in 2006 and beyond," Plamann said.
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.
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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.
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(dollars in thousands) |
Thirteen Weeks Ended |
Thirty-Nine Weeks Ended |
|
|
July 2,
2005 |
June 26,
2004 |
July 2,
2005 |
June 26,
2004 |
|
Net sales |
$715,417 |
$721,091 |
$2,141,583 |
$2,258,509 |
|
Operating income |
$13,555 |
$12,516 |
$42,309 |
$37,392 |
|
Earnings before patronagedividends and income taxes |
$9,775 |
$8,308 |
$30,956 |
$24,169 |
|
Estimated patronage dividends |
$5,517 |
$4,430 |
$17,226 |
$15,242 |
|
Net earnings |
$2,518 |
$2,299 |
$8,547 |
$5,468 |
|
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