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(LOS ANGELES) -- Unified Western Grocers, Inc. ("Unified" or the "Company"), the largest retailer-owned wholesale grocery distributor in the Western United States, announced an 8.8 percent increase in sales for the fiscal quarter ended June 30, 2007 ("2007 period") over the fiscal quarter ended July 1, 2006 ("2006 period").
Sales at the Los Angeles-based cooperative grew to $790.6 million for the 2007 period, an increase of $64.2 million over the same period in 2006. The Company attributed its performance during the quarter to new stores opened by members and continued sales growth in gourmet, ethnic foods and natural/organic products through the Company's Market Centre subsidiary.
Operating income for the 2007 period was $14.1 million, compared to $19.2 million in the 2006 period (which included income of approximately $8 million resulting from a favorable legal settlement and insurance reserve adjustments). The improvement in the Company's base results for the 2007 period reflects benefits from strong sales growth.
"We had an excellent third quarter, especially in terms of sales growth," said Alfred A. Plamann, president and chief executive officer, Unified Grocers. "We are well ahead of our financial plan for both the quarter and the fiscal year, particularly so when considering the non-recurring gains that helped boost our performance in the 2006 period."
Pre-patronage, pre-tax earnings for the 2007 period were $10.4 million, compared to $15.8 million for the 2006 period. The 2006 period included income of approximately $8 million in non-recurring gains resulting from a favorable legal judgment and insurance reserve adjustments. Results through the 39 weeks ended June 30, 2007 showed earnings before estimated patronage dividends of $32.6 million compared to $39.3 million in 2006.
Cash provided by operations was $32.7 million during the first nine months of fiscal 2007, compared to $27.0 million during the same period in 2006. The increased operating cash flow highlights the improvement in the Company's working capital management.
"We are very pleased with our performance in 2007," Plamann said. "Our members continue to open new stores and are focusing on products that help differentiate their businesses in the marketplace. As our retailers prepare for their busiest time of year, the holiday season, we are expecting a strong year-end performance."
As previously announced, Unified has entered into a definitive agreement to purchase certain assets of Associated Grocers, Inc., Seattle, Wash. The transaction is expected to close later this year.
Unified Grocers 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 2006, offer independent retailers all the resources they need to compete in the supermarket industry.
An online version of Unified's Form 10-Q, filed with the Securities and Exchange Commission, is available on Unified's website at www.uwgrocers.com and at www.sec.gov/edgar.shtml.
1 As part of an initiative to strengthen its corporate brand and image in the marketplace, Unified Western Grocers recently changed its name and is now doing business as "Unified Grocers." The Company has begun to utilize Unified Grocers as its business name for nearly all purposes and expects to effectuate a legal name change after approval by its shareholders at Unified's next annual meeting in mid-February, 2008.
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Safe Harbor Statement This press release contains forward-looking statements about the future performance of Unified Grocers 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-Q 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 Grocers
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(dollars in thousands) |
Thirteen Weeks Ended |
Thirty-Nine Weeks Ended |
|
|
June 30, 2007 |
July 1, 2006 |
June 30, 2007 |
July 1, 2006 |
|
Net sales |
$790,596 |
$726,446 |
$2,325,595 |
$2,187,288 |
|
Operating income |
$14,101 |
$19,231 |
$43,857 |
$50,164 |
|
Earnings before patronage dividends and income taxes |
$10,381 |
$15,818* |
$32,649 |
$39,253* |
|
Estimated patronage dividends |
$4,034 |
$7,860 |
$14,121 |
$17,223 |
|
Net earnings |
$4,315 |
$5,137 |
$11,347 |
$14,933 |
* Includes non-recurring gains from a favorable legal judgment and insurance reserve adjustments.
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