MONTVALE, NJ - October 17, 2003 - The Great Atlantic & Pacific Tea Company, Inc. (A&P, NYSE Symbol:GAP) announced unaudited fiscal 2003 second quarter and year to date results for the 12 and 28 weeks ended September 6, 2003.

Sales for the second quarter were $2.4 billion, compared with $2.3 billion in the second quarter of fiscal 2002. Comparable store sales increased 1.1% vs. year-ago. The loss for the second quarter was $2.17 per share, compared with a loss of $3.76 in the prior year. Excluding discontinued operations and certain nonrecurring adjustments as detailed on Schedules 2 and 4, the ongoing operating loss per share in the quarter was $1.62, compared with ongoing operating loss of $.33 per share for the second quarter last year. EBITDA for the second quarter of fiscal 2003, based on ongoing operating earnings as shown on Schedule 4 of this release, was $35 million compared to $52 million in the prior year's second quarter.

Sales for the 28 weeks year to date were $5.6 billion versus $5.4 billion in fiscal year 2002. Comparable store sales increased 0.4% for the first half of the year. The net loss per share was $1.65 for the first half of fiscal 2003, compared with a loss of $3.71 for 2002. Excluding discontinued operations and certain nonrecurring adjustments as detailed on Schedules 3 and 5, the ongoing operating loss per share was $2.15 for 2003 compared with a loss of $.22 per share last year.

EBITDA for the first half of 2003, based on ongoing operating earnings as shown on Schedule 5 of this release, was $107 million compared to $156 million in the prior year. Christian Haub, Chairman of the Board, President & Chief Executive Officer, said, "Our second quarter results reflect gradual improvement within our U.S. business, consistent with our expectations at this stage of the turnaround process. Our Canadian Company posted solid results, in light of the continued economic and competitive impact of the SARS and BSE issues in Ontario throughout the quarter.

"I want to take this opportunity to thank our store associates for their ongoing effort and dedication. During the massive power blackout, which affected the majority of our operations, our people worked diligently to prevent food safety issues, serve customers wherever possible and swiftly return our stores to normal operations. In addition, our Company’s high ratings in an independent shopper satisfaction benchmark study, published recently by a national trade publication, also speak to our improving store operations and customer service.

"Although our turnaround is a work in progress, I am pleased with the stability and direction of our U.S. operations, the continued strength of A&P Canada, and our improving liquidity. We have already taken tough and decisive actions to structure our business for success, and will continue to act as necessary to achieve our objectives," Mr. Haub said.

Founded in 1859, A&P was one of the nation’s first supermarket chains, and is today among North America’s largest. In the second quarter, the Company opened 4 new stores and remodeled or expanded one store. The Company operates 643 stores in 11 states, the District of Columbia and Ontario, Canada under the following trade names: A&P, Waldbaum’s, The Food Emporium, Super Foodmart, Super Fresh, Farmer Jack, Sav-A-Center, Dominion, The Barn Markets, Food Basics and Ultra Food & Drug. The Company also manufactures and distributes the Eight O’Clock line of whole bean coffees. The Company invites investors to listen to an audio Webcast of its quarterly discussion of earnings by accessing a link on the "Investor Relations" page of its Website, www.aptea.com. The live broadcast is on Friday, October 17, 2003 at 11 AM Eastern Time, with replays available from the afternoon of October 17 through November 17.

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 "ongoing operating earnings" and "ongoing operating loss" to reflect what the Company’s earnings would have been excluding certain identified major items, which we believe are of a non-operating or one-time nature. These items are reconciled to reported earnings on Schedules 4 and 5 of this release. We use the non-GAAP measure "EBITDA" to reflect a measure that we believe is of interest to investors. EBITDA is reconciled to Net Cash provided by Operating Activities on Schedules 4 and 5 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.

For financial questions, call William J. Moss
Vice President, Treasurer
(201) 571-4019

For non-financial questions, call Richard P. De Santa
Vice President, Corporate Affairs
(201) 571-4495

2003-2Q-Schedules.pdf - PDF
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