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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 growth in sales for the fiscal quarter ended December 30, 2006 ("2007 period") over the fiscal quarter ended December 31, 2005 ("2006 period").
Sales at the Los Angeles-based cooperative increased to $781.4 million for the 2007 period, an increase of 4.1 percent 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 the Company's Perishables and Specialty Products divisions. Estimated patronage dividends improved by 29 percent to $6.6 million for the 2007 period over the 2006 period as a result of improved sales combined with reductions in post-retirement benefits and transportation expenses. Earnings before estimated patronage dividends and income taxes in the 2007 period decreased slightly ($0.3 million) from the 2006 period. The decrease in net earnings was due largely to a favorable non-recurring adjustment to claims reserves in our insurance subsidiaries during the 2006 period, offset by the improved performance in our patronage businesses during the current period.
"We are continuing to see a change in the mix of product offerings throughout the retail grocery marketplace," said Alfred A. Plamann, president and chief executive officer, Unified Western Grocers. "Demand for both fresh and specialty products remains very strong; many of our members and customers are allocating more shelf space to these products than they have in the past.
“Overall, we are very pleased with our results for the first quarter,” said Plamann. “Our operations are strong, our distribution network remains efficient and workers’ compensation expenses appear to have stabilized, which should remove some earnings volatility for us on go-forward basis. We believe that 2007 is going to be another good year for Unified Western Grocers.”
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 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.
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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-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 Western Grocers, Inc.
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(dollars in thousands) |
Thirteen Weeks Ended
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December 30,
2006 |
December 31, 2005 |
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Net sales |
$781,375 |
$750,808 |
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Operating income |
$16,279 |
$16,643 |
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Earnings before patronage
dividends and income taxes |
$12,399 |
$12,652 |
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Estimated patronage dividends |
$6,577 |
$5,096 |
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Net earnings |
$3,462 |
$5,807 |
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