In a filing with the Securities & Exchange Commission, the Florida-based supermarket group Winn-Dixie Stores has issued trading results for the second quarter and first half of the 2007 fiscal year, and given an update on its financial recovery. The company emerged from Chapter 11 bankruptcy protection on 21 November, 2006.
Net income was $286.8m and $262.2m for the second quarter and first half of the fiscal year, respectively. However, Winn-Dixie said these results were impacted significantly by non-cash items, the largest of which were a $188.2m gain in connection with the discharge of liabilities associated with the company’s exit from Chapter 11, and a $144.8m gain related to the revaluation of assets and liabilities as part of fresh-start reporting.
The retailer said that it had continued to make progress in the implementation of its turnaround, and as of 10 January, 2007, it had approximately US$500m of liquidity, a significant increase from the end of the prior fiscal quarter, and no borrowings under its revolving credit facility.
Identical store sales for the first half of the fiscal year grew by 1.8% as compared to the same period in fiscal 2006, Winn-Dixie said. The retailer has also initiated a store redevelopment programme, with 40 store remodels currently underway, of which 15 to 22 are expected to be completed by the end of the current fiscal year. The company is planning to remodel about 75 stores a year in future fiscal years.
“We are continuing to make progress in many areas of our business plan,” said Winn-Dixie chairman, CEO and president Peter Lynch. “Going forward, we remain committed to executing five key initiatives: rebuilding trust in our brand; investing capital in our stores; neighbourhood marketing; associate training and development; and focusing on profitable sales.”
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