|
|
The Great Atlantic & Pacific Tea Company, Inc. Announces Net Income of $27 Million for it's Fiscal Year Ended February 24, 2007
Operating Income Continues to Improve in it's Core Northeast Operations
MONTVALE, NJ - April 25, 2007 - The Great Atlantic & Pacific Tea Company, Inc. (A&P, NYSE Symbol: GAP) announced fiscal 2006 fourth quarter and full year results for the 12 and 52 weeks ended February 24, 2007.
Sales for the fourth quarter were $1.6 billion, comparable to $1.6 billion in the fourth quarter of last year. Comparable store sales decreased 1.5% vs. year-ago mainly due to last year's sales lift post Hurricane Katrina in its New Orleans operations and difficult economic conditions in its Midwest operations. Comparable store sales in its core Northeast operations increased 0.9% in the fourth quarter. Net loss for the quarter was $7 million or $.17 per diluted share this year versus a loss of $39 million or $.95 per diluted share last year.
The results for the fourth quarter of fiscal years 2006 and 2005 include items the Company considers non-operating in nature that management excludes when evaluating the results of the ongoing business. These items are listed on Schedule 3 of the press release. Excluding these items, adjusted loss from operations was $7.6 million in the fourth quarter of fiscal 2006 versus income of $1.7 million in last year's fourth quarter. Adjusted ongoing operating EBITDA, which is reconciled to net cash from operating activities on Schedule 4 of the press release, was $34 million in the fourth quarter of fiscal 2006 versus $41 million in last year's fourth quarter. EBITDA in its core Northeast operations was $30 million for the fourth quarter, an increase of 26% versus the fourth quarter of last year.
U.S. sales for the full year were $6.9 billion versus $7.0 billion in 2005. Total sales of $8.7 billion for last year included sales of $1.7 billion related to A&P Canada which was sold in August 2005. U.S. total comparable store sales decreased 0.5% for the year. Comparable store sales for the Northeast increased 0.6%. Net income for fiscal 2006 was $27 million or $.64 per diluted share compared to income of $393 million or $9.64 per diluted share for 2005, which included the gain on the sale of A&P Canada.
Fiscal 2006 and fiscal 2005 results include the non-operating items listed on Schedule 3 of the press release. Excluding these items, adjusted U.S. loss from operations was $26 million for 2006 versus a loss of $65 million for 2005. Adjusted U.S. ongoing operating EBITDA, which is reconciled to net cash from operating activities on Schedule 4, was $151 million for 2006 versus $127 million in 2005. EBITDA from its core Northeast operations was $125 million for the year, an increase of 20% versus last year.
Christian Haub, Executive Chairman of the Board, said, "Our Fiscal 2006 fourth quarter completed a year of excellent progress for A&P, as we improved operating results, increased shareholder value, and just beyond year-end, took a defining step toward the transformation of our Company with the agreement to acquire Pathmark Stores Inc.
"The improvements set in motion by our divestiture of A&P Canada in 2005, and subsequent management, organization and support structure changes, were reflected in top and bottom line results overall and specifically in our core Northeast operations. Additionally, the Canadian sale and our improving results enabled us to reward investors with a special dividend as well as increased share value.
"Going forward in Fiscal 2007, we anticipate a year of both continuity and dynamic change. Management's commitment to the strategies and practices underlying our current improving trends will remain fully in place. Alongside that focus, we are assembling a careful and comprehensive plan for the integration of the Pathmark operations, upon the anticipated completion of that transaction in the second half.
"With Pathmark's operations reflecting an ideal fit with our Company, we are confident that the financial and strategic benefits of this landmark transaction will put A&P firmly on the road to improved performance in the future," Mr. Haub said."
Eric Claus, President & Chief Executive Officer, said, "Our management team and associates did an excellent job in making Fiscal 2007 a successful transition year for A&P, as we:
- Improved sales trends in core Northeast operating banners.
- Achieved a positive EBITDA performance with improving contribution from our core market operations.
- Converted 24 conventional stores to our successful new fresh format.
- Successfully launched our improved Food Basics discount format.
- Introduced our new generation Food Emporium Fine Foods concept in New York City.
- Maintained the bottom line benefits of previous cost reduction initiatives, and the ongoing cost control emphasis embedded in all Company activities.
"We were very pleased with our bottom line progress, which was the result of better operations and more disciplined cost control throughout the organization; a discipline that will remain a part of everything we do. Our sales improvement, driven by improved merchandising, was also on track with plan, although generated primarily in our northeastern core markets which benefited most from our capital development during the year.
"Our Farmer Jack operations in Michigan again presented our most difficult challenge in Fiscal 2006, and as just announced, we are resolving that situation through the potential divestiture of that business. We thank our management and associates in Michigan for their enthusiastic efforts over the years. Their consistent support and hard work made this a painful decision. But it is clearly the right one, given the region's difficult economy, and A&P's increased focus on the development and upcoming expansion of our business in the Northeast.
"Overall, our positive results were in line with internal forecasts in most key measurements. With continued focus on current strategies and the successful integration of Pathmark, we are confident of accelerated improvement in Fiscal 2007," Mr. Claus said.
Founded in 1859, A&P is one of the nation's first supermarket chains. The Company operates 406 stores in 9 states and the District of Columbia under the following trade names: A&P, Waldbaum's, The Food Emporium, Super Foodmart, Super Fresh, Farmer Jack, Sav-A-Center and Food Basics.
The Company invites investors and other interested parties to listen to a live audio Webcast to be held at 11:00 AM Eastern Time today, at which members of the Company's senior management team will discuss the Company's fourth quarter financial results. The Webcast may be accessed through a link on the "Investors" page of the Company's Website, www.aptea.com. Listeners who cannot participate in the live broadcast will be able to hear a recorded replay of the broadcast beginning this afternoon and available until May 23, 2007.
Effective March 28, 2003, the Securities and Exchange Commission ("SEC") adopted new rules related to disclosure of certain financial measures not calculated in accordance with Generally Accepted Accounting Principles ("GAAP"). Such new rules require all public companies to provide certain disclosures in press release and SEC filings related to non-GAAP financial measures. We use the non-GAAP measures "Adjusted (loss) income from operations" and "EBITDA" to evaluate the Company's liquidity and it is among the primary measures used by management for planning and forecasting of future periods. Adjusted (loss) income from operations is defined as (loss) income from operations adjusted for items the Company considers non-operating in nature that management excludes when evaluating the results of the U.S. ongoing business. EBITDA is defined as earnings before interest, taxes, depreciation, amortization, minority interest, equity in earnings of Metro, Inc., discontinued operations and the (loss) gain on the sale of A&P Canada. Ongoing, operating EBITDA is defined as EBITDA adjusted for items the Company considers non-operating in nature that management excludes when evaluating the results of the U.S. ongoing business. The Company believes the presentation of these measures is relevant and useful for investors because it allows investors to view results in a manner similar to the method used by the Company's management and makes it easier to compare the Company's results with other companies that have different financing and capital structures or tax rates. In addition, these measures are also among the primary measures used externally by the Company's investors, analysts and peers in its industry for purposes of valuation and comparing the results of the Company to other companies in its industry. Ongoing, operating EBITDA is reconciled to Net Cash provided by Operating Activities on Schedule 4 of this release.
This release contains forward-looking statements about the future performance of the Company, which are based on Management's assumptions and beliefs in light of the information currently available to it. The Company assumes no obligation to update the information contained herein. These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially from such statements including, but not limited to: competitive practices and pricing in the food industry generally and particularly in the Company's principal markets; the Company's relationships with its employees and the terms of future collective bargaining agreements; the costs and other effects of legal and administrative cases and proceedings; the nature and extent of continued consolidation in the food industry; changes in the financial markets which may affect the Company's cost of capital and the ability of the Company to access capital; supply or quality control problems with the Company's vendors; and changes in economic conditions which affect the buying patterns of the Company's customers.
###
Investor Contact:
William J. Moss
Vice President, Treasurer
(201) 571-4019
Press Contact:
Richard P. De Santa
Senior Director, Communications
(201) 571-4495
|
|
|
|
The PDF Format
Files listed above can be viewed with Adobe Acrobat Reader. To
download Adobe Acrobat Reader® click
here. Just choose the pages you are interested in, open them and
print as needed. Each PDF contains several pages.
|
|
If you are
currently using Netscape 3.0 or Microsoft Internet Explorer 3.0 as your
browser, then you must take the following steps to access and print
these files:
- Right mouse click on the file you wish to view or print.
- Save the file to your hard drive or a floppy disk.
- Run the newly saved file within a compatible application (i.e.,
Acrobat Reader).
- Print the file from that application.
If you have any questions or
comments regarding the contents of this page, please e-mail your queries
and/or suggestions to webmaster@aptea.com.
|
BACK
|
Founded:
1859 by George Huntington Hartford and George Gilman
Headquarters:
Montvale, NJ
Stock Symbol:
NYSE: "GAP"
Number of Stores:
456
Retail Banners:
A&P, Waldbaum's, A&P Super Foodmart, The Food Emporium, Super Fresh, Pathmark and Food Basics
Annualized Sales Volume:
$9.4 billion of Total Sales for fiscal year 2006 ended February 24, 2007
Scope of Operations:
6 U.S. states (Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland), and the District of Columbia
Own Brands:
America's Choice, Master Choice, Health Pride, Savings Plus, Pathmark
Number of Employees:
Approximately 62,030
Executive Chairman:
Christian W.E. Haub
President & Chief Executive Officer:
Eric Claus
|
