Fleming (NYSE:FLM) today reported a 52 percent increase in third quarter 2001 net earnings to $22.8 million, or $0.47 per share, after adjustments to exclude strategic plan charges and one-time items, compared to $15.0 million, or $0.37 per share, in the third quarter of 2000. Analysts’ consensus estimate for third quarter 2001 earnings was $0.44 per share. Fleming also announced that it is increasing its 2001 adjusted earnings guidance from $1.96 to a range of $1.96 to $2.00. The company’s fourth quarter guidance ranges from $0.61 to $0.65 per share on an adjusted basis.
With total sales just above $4 billion and net distribution sales of $3.5 billion for the 12-week quarter, Fleming took over the top position as the largest distributor in its industry following the successful integration and first full quarter of operations of the Kmart alliance. Third quarter adjusted operating earnings of $68.1 million increased 9.5 percent from $62.2 million in the prior year. Adjusted EBITDA increased to $110.2 million in 2001 from $106.7 million in 2000.
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The third quarter results are even more impressive considering the following circumstances:
- Continuing operations – Total company adjusted EBITDA increased 14 percent in the third quarter of 2001 when compared to 2000 on a continuing operations basis. Divested conventional retail stores contributed approximately $10 million more in EBITDA in the prior year’s third quarter compared to the current year.
- Growth of equity – The diluted share count increased to 51.0 million shares in the third quarter of 2001 from 40.4 million in 2000 (a 26.4 percent increase) as Fleming increased equity to fund growth. The majority of the share increases resulted from the sale of common stock to an affiliate of The Yucaipa Companies (3.8 million shares) and the issuance of $150 million of convertible debt securities (5.0 million shares). Additionally, “in the money” stock options and stock related to employee benefit programs added another 1.8 million shares.
“Fleming emerged from the third quarter as the leading distributor in our industry,” said Mark S. Hansen, chairman of the board and chief executive officer of Fleming. Total company net sales for the 12-week third quarter were $4.02 billion, compared to $3.19 billion in the prior year, a 26 percent increase. Distribution accounted for 88 percent of net sales, up from 78 percent in the prior year, while retail accounted for 12 percent of net sales. The shift in sales mix between distribution (with its higher volumes and lower margin percentages) and retail is a factor in the comparison of margin percentages between the two years.
Distribution segment net sales increased 42 percent to $3.54 billion, up from $2.50 billion in the prior year. “Our distribution sales grew dramatically, attributable in large part to our alliance with Kmart. However, it’s important to highlight the growth of the other conventional and alternative retailers we serve, including independent supermarket operators, convenience stores, supercenters, self-distributing grocery chains, and ethnic retailers,” said Hansen. Approximately 11 of the 42 percentage point increase was attributable to customers other than Kmart.
Third quarter 2001 retail sales of $484.4 million declined compared to the prior year’s $693.6 million. However, sales of continuing operations jumped 21 percent in the third quarter to $453.8 million compared to $375.9 million in 2000. Comparable store sales were up 1.5 percent for the quarter.
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By GlobalDataDistribution segment adjusted operating earnings, which climbed 29 percent to $102.1 million (2.89 percent of sales), were predominantly influenced by the higher sales levels.
“Our distribution centers are running at all-time high volumes, and we are only just beginning to leverage the scale and efficiencies inherent in these sales levels,” noted Hansen. “The volume allowed us to immediately improve selling and administrative costs, which declined by 28 basis points.” Adjusted EBITDA increased 28 percent to $130.4 million from $101.7 million in the prior year. Growth in both the Kmart and convenience store business was instrumental in increasing EBITDA dollars, albeit at a lower margin rate.
Retail segment adjusted operating earnings declined to $17.1 million from $19.4 million in the prior year’s third quarter. Expressed as a percentage of sales, operating earnings increased in the current year’s third quarter to 3.54 percent of sales from 2.79 percent of sales the prior year. A significant reduction in selling and administrative expense – nearly 200 basis points – contributed to the improved retail performance. Adjusted EBITDA improved 62 basis points to 6.14 percent of sales from 5.52 percent of sales. Commenting on the retail segment results, Hansen said, “Our price impact formats, with their high volumes and low operating costs, are a great fit with our distribution strategy. This allows us to be extremely competitive while developing a strong consumer following in this under-served niche of the retail grocery sector.”
The company added six new price-impact and four new limited assortment stores during the quarter. The company also completed the conversion of four former Sentry stores. In total, it operated 98 price impact (which includes the 44 Rainbow stores operated in the Minneapolis market and the six Sentry Stores in the Milwaukee market that are in the process of being remodeled and converted) and 16 limited assortment stores at the end of the quarter. Fleming affirmed its stated growth plan of operating 174 price impact stores by the end of 2003.
Selling and administrative adjusted expenses attributable to the company’s support services totaled $46.9 million in the third quarter. Comprised primarily of salaries and expenses related to centralized procurement and back office operations (including centralized accounting, information technology, and human resources functions), the company believes that the move to centralization is substantially complete. “Approximately 80 percent of our total procurement needs are being addressed centrally and 20 percent locally,” said Hansen. “We believe this makes our Lewisville facility the second-highest volume consumer packaged goods procurement office in the nation and an essential point of business for the vendor community.”
An important upgrade in Fleming’s debt ratings by Standard & Poor’s, along with overall lower interest rates, lowered net interest expense by $4.7 million in the third quarter compared to the same quarter last year. Standard & Poor’s upgraded Fleming’s corporate credit rating to BB from BB- with a stable outlook. Moody’s confirmed Fleming’s Ba3 rating with an upgrade to a positive outlook. Additionally, Fleming received an initial debt rating from Fitch with a rating of BB+, one step below investment grade.
Similar to the first and second quarters of 2001, strategic plan charges were down substantially in the third quarter and totaled $6.3 million pre-tax compared to $100.7 million pre-tax in the prior year’s third quarter. The company continues to expect an aggregate of approximately $20 million in strategic plan charges in 2001, compared to $309 million in 2000.
Unadjusted, the company had net earnings for the 12-week third quarter of $19.1 million, or $.40 per share on a fully diluted basis.
Other Accomplishments and Milestones Through Third Quarter, 2001
Distribution:
- Successfully integrated an incremental $3 billion in Kmart food and consumables supply business that was not formerly handled by Fleming. One remaining product category, tobacco, will be integrated in early 2002, which is expected to add an additional $250 million in annualized sales.
- Completed the acquisition of assets and inventory of Miller & Hartman South, a Leitchfield, Kentucky-based convenience store distributor serving 1,000 customers in 1,800 locations across eight southeastern states.
- Added year-to-date approximately $800 million in gross annualized sales from acquired convenience store distribution businesses, principally Minter-Weisman and Miller & Hartman South.
- Added year to date approximately $700 million in gross annualized new business (excluding the Kmart alliance) in the distribution segment. Customers included a variety of independent retailers operating both traditional supermarkets as well as non-traditional retail formats.
- Completed a series of innovative transactions that placed former Furrs Supermarkets locations into the hands of independent retail operators (including eight IGA franchises). Fleming’s net investment in the transaction was approximately $39 million.
- Commenced operation of a new 540,000 square foot distribution center in South Brunswick, New Jersey. The facility, with an initial annual volume of approximately $600 million, is the second of two new full-line distribution centers opened in 2001.
- Introduced two new private label lanes. Exceptional Value appeals to the price-focused customer. With a total of 210 items (and another 70 in development), Exceptional Value was on store shelves in August. Comida Sabrosa, Fleming’s 80-item specialty line of Hispanic private label products, was introduced in September and will be expanded to a total of 100 items.
Retail:
- Completed the acquisition of five El Paso and Las Cruces-area stores from Kroger. The stores will be operated in Fleming’s price impact format style under the Rainbow Foods banner.
- Completed the remodel and re-merchandising of four former Sentry stores in the Milwaukee area. Operating under the Rainbow Foods banner in Fleming’s price impact format, the stores boasted dramatically lower prices on 16,000 items. Six additional stores are slated to be converted in the Milwaukee market over the coming months.
- Entered the Amarillo, Texas market with the company’s price impact format under the Rainbow Foods banner.
- Completed the major remodel of seven northern California Food4Less stores.
- Opened Fleming’s 16th opening-price-point discount store, Yes!Less, in the Fort Worth, Texas market, joining 14 others in north Texas and one in Louisiana.
- Raised $400,000 in customer and employee contributions at Fleming’s Rainbow Foods, Food4Less, Yes!Less, and company office and warehouse locations for the American Red Cross September 11th Fund.
Other:
- Announced the settlement of several complex and old lawsuits relating to certain retail supply agreements in Kansas City and Salt Lake City. The settlements covered a multitude of lawsuits with issues dating back as far as 30 years.
- On October 15, we completed the offering of $150 million of senior subordinated notes, essentially matching the long-term nature of Fleming’s recent acquisitions with long-term financing. The notes were the first significant high-yield issuance following the September 11th tragedy.
About Fleming Companies, Inc.
Fleming is the industry leader in distribution and has a growing presence in value retailing. Fleming’s primary business is buying and selling merchandise. The company serves approximately 3,000 supermarkets, 6,800 convenience stores, and more than 2,000 supercenters, discount, limited assortment, drug, specialty, and other stores across the United States. To learn more about Fleming, visit our Web site at www.fleming.com.
Safe-Harbor Statement
This release, including the attached tables, includes forward-looking statements that (a) project or offer guidance regarding earnings, revenues, or other financial results, (b) depend on future events for their accuracy, or (c) rely upon projections and assumptions which may prove to be inaccurate. These forward-looking statements and the company’s business and prospects are subject to a number of factors that could cause actual results to differ materially, including: adverse effects of the changing industry environment and increased competition; sales declines and loss of customers; the ability to achieve the expected synergies and anticipated cost savings from the Kmart alliance; unanticipated transition and start-up costs related to the Kmart alliance; the ability to obtain capital or obtain it on acceptable terms; unanticipated problems with product procurement; exposure to litigation and other contingent losses; the inability to integrate acquired companies and to achieve operating improvements at those companies; increases in labor costs and disruptions in labor relations with union bargaining units representing the company’s employees; and negative effects of the company’s substantial indebtedness and the limitations imposed by restrictive covenants contained in the company’s debt instruments. These and other risk factors are described in the company’s Securities and Exchange Commission reports, including but not limited to the company’s Form 10-K. The company undertakes no obligation to update forward-looking statements to reflect developments or information obtained after the date hereof.
Fleming Companies, Inc. (NYSE:FLM)
Consolidated Condensed Statements of Operations
For the 12 weeks ended October 6, 2001, and September 30, 2000
(In thousands, except per share amounts)
2001
Reported Adjustments Adjusted
(A)
Net sales (B) $4,022,085 $565 $4,022,650
% change 26.1%
Costs and expenses:
Cost of sales (B) 3,748,895 (1,220) 3,747,675
Selling and administrative 209,928 (3,056) 206,872
Interest expense 35,370 35,370
Interest income (5,494) (5,494)
Equity investment results 689 689
Impairment/restructuring
charge 1,415 (1,415) –
Litigation charge –
Total costs and expenses 3,990,803 (5,691) 3,985,112
Income (loss) before taxes 31,282 6,256 37,538
Taxes on income (loss) 12,207 2,506 14,713
Net income (loss) $19,075 $3,750 $22,825
% change 51.9%
Basic and diluted income
(loss) per share:
Basic $0.44 $0.09 $0.52
Diluted $0.40 $0.07 $0.47
% change 27.0%
Weighted average shares
outstanding:
Basic 43,728 43,728
Diluted 51,032 51,032
Additional information:
Depreciation $33,676 ($35) $33,641
Goodwill amortization $5,000 $5,000
Diluted EPS excluding
goodwill amortization $0.55
% change
Operating earnings $68,103
% change 9.5%
EBITDA (C) $110,238
% of sales 2.74%
% change 3.3%
2000
Reported Adjustments Adjusted
(A)
Net sales (B) $3,197,655 ($8,327) $3,189,328
% change
Costs and expenses:
Cost of sales (B) 2,894,341 (10,969) 2,883,372
Selling and administrative 260,019 (16,264) 243,755
Interest expense 40,111 40,111
Interest income (6,322) (6,322)
Equity investment results 2,097 (31) 2,066
Impairment/restructuring
charge 83,356 (83,356) –
Litigation charge (1,916) 1,916 –
Total costs and expenses 3,271,686 (108,704) 3,162,982
Income (loss) before taxes (74,031) 100,377 26,346
Taxes on income (loss) (28,472) 39,792 11,320
Net income (loss) ($45,559) $60,585 $15,026
% change
Basic and diluted income
(loss) per share:
Basic ($1.17) $1.56 $0.39
Diluted ($1.17) $1.56 $0.37
% change
Weighted average shares
outstanding:
Basic 38,902 38,902
Diluted 38,902 40,364
Additional information:
Depreciation $33,286 ($350) $32,936
Goodwill amortization $4,784 $4,784
Diluted EPS excluding
goodwill amortization $0.51
% change
Operating earnings $62,201
% change
EBITDA (C) $106,743
% of sales 3.35%
% change
A – Adjustments relating to the strategic plan, which was announced
in December 1998, totaled $6.3 million in 2001 compared to $100.7
million in 2000. Charges include non-cash impairments or
impairment adjustments of asset values and cash restructuring
costs for severance, lease termination, real estate disposition
costs for discontinued operations and other related expenses.
There were no one-time adjustments for 2001. The one-time
adjustments for 2000 are an $8.6 million gain from the sale of a
facility, $10.2 million in charges relating to closing certain
company-owned retail stores, and $1.9 million net income from
litigation settlements.
B – Sales of distribution and total company have been restated for
quarters prior to quarter 4, 2000 due to adoption of SAB 101 and
EITF 99-19. Offset is cost of sales; gross margin is not affected.
C – EBITDA is earnings before interest expense, income taxes,
depreciation and amortization, equity investment results, and LIFO
provision ($2,000 credit in 2001 and $500 charge in 2000).
Fleming Companies, Inc. (NYSE:FLM – news)
Segment Information
Income (Loss)
For the 12 weeks ended October 6, 2001, and September 30, 2000
(In thousands, except per share amounts)
2001
Reported Adjustments Adjusted
Distribution
Gross sales (A) $ 3,798,652 $ 518 $ 3,799,170
Intersegment elimination (A) (260,895) – (260,895)
Net sales (A) $ 3,537,757 $ 518 $ 3,538,275
% change 41.8%
Gross margin $ 170,743 $ 812 $ 171,555
% of distribution
gross sales 4.52%
Selling and administrative (60,889) 1,078 (59,811)
% of distribution
gross sales -1.57%
Intersegment elimination (9,655) – (9,655)
Operating earnings $ 100,199 $ 1,890 $ 102,089
% of distribution
net sales 2.89%
% change 28.7%
EBITDA $ 129,570 $ 849 $ 130,419
% of distribution
net sales 3.69%
% change 28.2%
Retail
Net sales $ 484,328 $ 47 $ 484,375
% change -30.2%
Gross margin $ 107,289 $ 356 $ 107,645
% of retail sales 22.22%
Selling and administrative (101,627) 1,473 (100,154)
% of retail sales -20.68%
Intersegment profit 9,655 – 9,655
Operating earnings $ 15,317 $ 1,829 $ 17,146
% of retail sales 3.54%
% change -11.5%
EBITDA $ 25,908 $ 3,853 $ 29,761
% of retail sales 6.14%
% change -22.3%
Support Services
Gross margin $ (4,842) $ 617 $ (4,225)
% of total company sales -0.11%
Selling and administrative (47,412) 505 (46,907)
% of total company sales -1.17%
Operating earnings $ (52,254) $ 1,122 $ (51,132)
% of total company sales -1.27%
EBITDA $ (51,461) $ 1,519 $ (49,942)
% of total company sales -1.24%
2000
Reported Adjustments Adjusted
Distribution
Gross sales (A) $ 2,881,606 $ (8,327) $ 2,873,279
Intersegment elimination(A) (377,577) – (377,577)
Net sales (A) $ 2,504,029 $ (8,327) $ 2,495,702
% change
Gross margin $ 147,620 $ (1,784) $ 145,836
% of distribution
gross sales 5.08%
Selling and administrative (54,725) 1,599 (53,126)
% of distribution
gross sales -1.85%
Intersegment elimination (13,359) – (13,359)
Operating earnings $ 79,536 $ (185) $ 79,351
% of distribution
net sales 3.18%
% change
EBITDA $ 101,966 $ (261) $ 101,705
% of distribution
net sales 4.08%
% change
Retail
Net sales $ 693,626 $ – $ 693,626
% change
Gross margin $ 160,929 $ 2,230 $ 163,159
% of retail sales 23.52%
Selling and administrative (168,461) 11,323 (157,138)
% of retail sales -22.65%
Intersegment profit 13,359 – 13,359
Operating earnings $ 5,827 $ 13,553 $ 19,380
% of retail sales 2.79%
% change
EBITDA $ (48,904) $ 87,214 $ 38,310
% of retail sales 5.52%
% change
Support Services
Gross margin $ (5,235) $ 2,196 $ (3,039)
% of total company sales -0.10%
Selling and administrative (36,833) 3,342 (33,491)
% of total company sales -1.05%
Operating earnings $ (42,068) $ 5,538 $ (36,530)
% of total company sales -1.15%
EBITDA $ (46,315) $ 13,043 $ (33,272)
% of total company sales -1.04%
A – Sales of distribution and total company have been restated for
quarters prior to quarter 4, 2000 due to adoption of SAB 101 and
EITF 99-19. Offset is cost of sales; gross margin is not affected.
Fleming Companies, Inc. (NYSE:FLM – news)
Consolidated Condensed Statements of Operations
For the 40 weeks ended October 6, 2001, and September 30, 2000
(In thousands, except per share amounts)
2001
Reported Adjustments Adjusted
(A)
Net sales (B) $11,640,555 ($762) $11,639,793
% change 7.7%
Costs and expenses:
Cost of sales (B) 10,737,764 (30,882) 10,706,882
Selling and administrative 736,305 (14,122) 722,183
Interest expense 127,307 (2,833) 124,474
Interest income (20,554) 1,102 (19,452)
Equity investment results 761 761
Impairment/restructuring
charge (25,561) 25,561 –
Litigation charges 48,628 (48,628) –
Total costs and expenses 11,604,650 (69,802) 11,534,848
Income (loss) before taxes 35,905 69,040 104,945
Taxes on income (loss) 14,822 27,660 42,482
Income (loss) before
extraordinary charge $21,083 $41,380 $62,463
Extraordinary charge from
early retirement
of debt (net of taxes) (3,469) 3,469 –
Net income (loss) $17,614 $44,849 $62,463
% change 52.4%
Basic income (loss) per share:
Income (loss) before
extraordinary charge $0.50 $0.98 $1.48
Extraordinary charge from
early retirement
of debt (net of taxes) (0.08) 0.08 –
Net income (loss) $0.42 $1.06 $1.48
Diluted income (loss)
per share:
Income (loss) before
extraordinary charge $0.47 $0.92 $1.35
Extraordinary charge from
early retirement
of debt (net of taxes) (0.08) 0.08 –
Net income (loss) $0.39 $1.00 $1.35
% change 31.1%
Weighted average shares
outstanding:
Basic 42,177 42,177
Diluted 44,670 48,316
Additional information:
Depreciation $109,911 ($35) $109,876
Goodwill amortization $16,216 $16,216
Diluted EPS excluding
goodwill amortization $1.66
% change 16.1%
Operating earnings $210,728
% change 15.1%
EBITDA (C) $353,665
% of sales 3.04%
% change 4.8%
2000
Reported Adjustments Adjusted
(A)
Net sales (B) $10,819,031 ($6,672) $10,812,359
% change
Costs and expenses:
Cost of sales (B) 9,807,789 (46,300) 9,761,489
Selling and administrative 893,700 (25,931) 867,769
Interest expense 131,659 131,659
Interest income (25,167) (25,167)
Equity investment results 5,682 (315) 5,367
Impairment/restructuring
charge 146,514 (146,514) –
Litigation charges (1,916) 1,916 –
Total costs and expenses 10,958,261 (217,144) 10,741,117
Income (loss) before taxes (139,230) 210,472 71,242
Taxes on income (loss) (54,449) 84,692 30,243
Income (loss) before
extraordinary charge ($84,781) $125,780 $40,999
Extraordinary charge from
early retirement
of debt (net of taxes) –
Net income (loss) ($84,781) $125,780 $40,999
% change
Basic income (loss) per shar
Income (loss) before
extraordinary charge ($2.19) $3.25 $1.06
Extraordinary charge from
early retirement
of debt (net of taxes) – –
Net income (loss) ($2.19) $3.25 $1.06
Diluted income (loss)
per share:
Income (loss) before
extraordinary charge ($2.19) $3.22 $1.03
Extraordinary charge from
early retirement
of debt (net of taxes) – –
Net income (loss) ($2.19) $3.22 $1.03
% change
Weighted average shares
outstanding:
Basic 38,651 38,651
Diluted 38,651 39,897
Additional information:
Depreciation $114,217 ($6,662) $107,555
Goodwill amortization $15,857 $15,857
Diluted EPS excluding
goodwill amortization $1.43
% change
Operating earnings $183,101
% change
EBITDA (C) $337,580
% of sales 3.12%
% change
A – Adjustments relating to the strategic plan, which was announced
in December 1998, totaled $18.7 million in 2001 compared to $210.8
million in 2000. Charges include non-cash impairments or
impairment adjustments of asset values and cash restructuring
costs for severance, lease termination, real estate disposition
costs for discontinued operations and other related expenses. The
one-time adjustments for 2001 are $48.6 million in charges from
litigation settlements and net additional interest expense of $1.7
million due to early retirement of debt. The one-time adjustments
for 2000 are an $8.6 million gain from the sale of a facility,
$10.2 million in charges relating to closing certain company-owned
retail stores, and $1.9 million net income from litigation
settlements.
B – Sales of distribution and total company have been restated for
quarters prior to quarter 4, 2000 due to adoption of SAB 101 and
EITF 99-19. Offset is cost of sales; gross margin is not affected.
C – EBITDA is earnings before interest expense, income taxes,
depreciation and amortization, equity investment results, and LIFO
provision ($2,607 credit in 2001 and $5,900 charge in 2000)
Fleming Companies, Inc. (NYSE:FLM – news)
Segment Information
Income (Loss)
For the 40 weeks ended October 6, 2001, and September 30, 2000
(In thousands, except per share amounts)
2001
Reported Adjustments Adjusted
Distribution
Gross sales (A) $ 10,748,942 $ 2,775 $ 10,751,717
Intersegment elimination (A) (949,125) – (949,125)
Net sales (A) $ 9,799,817 $ 2,775 $ 9,802,592
% change 18.2%
Gross margin $ 522,552 $ 6,735 $ 529,287
% of distribution
gross sales 4.92%
Selling and administrative (177,202) 2,476 (174,726)
% of distribution
gross sales -1.63%
Intersegment elimination (35,584) – (35,584)
Operating earnings $ 309,766 $ 9,211 $ 318,977
% of distribution
net sales 3.25%
% change 28.5%
EBITDA $ 393,384 $ 16,949 $ 410,333
% of distribution
net sales 4.19%
% change 27.2%
Retail
Net sales $ 1,840,738 $ (3,537) $ 1,837,201
% change -27.0%
Gross margin $ 400,639 $ 21,667 $ 422,306
% of retail sales 22.99%
Selling and administrative (394,153) 9,501 (384,652)
% of retail sales -20.94%
Intersegment profit 35,584 – 35,584
Operating earnings $ 42,070 $ 31,168 $ 73,238
% of retail sales 3.99%
% change 26.4%
EBITDA $ 122,218 $ (4,804) $ 117,414
% of retail sales 6.39%
% change -2.4%
Support Services
Gross margin $ (20,400) $ 1,718 $ (18,682)
% of total company
sales -0.16%
Selling and administrative (164,950) 2,145 (162,805)
% of total company
sales -1.40%
Operating earnings $ (185,350) $ 3,863 $ (181,487)
% of total company
sales -1.56%
EBITDA $ (228,109) $ 54,027 $ (174,082)
% of total company
sales -1.50%
2000
Reported Adjustments Adjusted
Distribution
Gross sales (A) $ 9,647,094 $ (6,672) $ 9,640,422
Intersegment elimination (A) (1,343,941) – (1,343,941)
Net sales (A) $ 8,303,153 $ (6,672) $ 8,296,481
% change
Gross margin $ 449,284 $ 21,843 $ 471,127
% of distribution
gross sales 4.89%
Selling and administrative (177,400) 2,286 (175,114)
% of distribution
gross sales -1.82%
Intersegment elimination (47,753) – (47,753)
Operating earnings $ 224,131 $ 24,129 $ 248,260
% of distribution
net sales 2.99%
% change
EBITDA $ 270,354 $ 52,280 $ 322,634
% of distribution
net sales 3.89%
% change
Retail
Net sales $ 2,515,878 $ – $ 2,515,878
% change
Gross margin 576,921 8,799 $ 585,720
% of retail sales 23.28%
Selling and administrative (589,239) 13,720 (575,519)
% of retail sales -22.88%
Intersegment profit 47,753 – 47,753
Operating earnings $ 35,435 $ 22,519 $ 57,954
% of retail sales 2.30%
% change
EBITDA $ 6,049 $ 114,245 $ 120,294
% of retail sales 4.78%
% change
Support Services
Gross margin $ (14,963) $ 8,986 $ (5,977)
% of total company
sales -0.06%
Selling and administrative (127,061) 9,925 (117,136)
% of total company
sales -1.08%
Operating earnings $ (142,024) $ 18,911 $ (123,113)
% of total company
sales -1.14%
EBITDA $ (142,318) $ 36,970 $ (105,348)
% of total company
sales -0.97%
A – Sales of distribution and total company have been restated for
quarters prior to quarter 4, 2000 due to adoption of SAB 101 and
EITF 99-19. Offset is cost of sales; gross margin is not affected.
Fleming Companies, Inc. (NYSE:FLM – news)
Consolidated Condensed Balance Sheet Information
(In thousands)
Oct. 6, Dec. 30, Sept. 30,
2001 2000 2000
Assets
Cash and cash equivalents $ 43,491 $ 30,380 $ 49,673
Receivables, net 571,503 509,045 467,995
Inventory 1,094,935 831,265 867,145
Other current assets 129,082 252,383 247,308
Total current assets 1,839,011 1,623,073 1,632,121
Property and equipment, net 737,874 716,457 723,191
Other assets 1,170,892 1,063,281 994,500
Total assets $ 3,747,777 $ 3,402,811 $ 3,349,812
Liabilities and
shareholders’ equity
Accounts payable $ 1,016,873 $ 943,279 $ 846,851
Current portion of LT debt
and cap lease obligations 60,584 59,837 58,662
Other current liabilities 199,847 229,272 175,146
Total current liabilities 1,277,304 1,232,388 1,080,659
Long-term debt and capital
lease obligations 1,851,855 1,609,639 1,677,466
Other liabilities 109,688 133,592 111,847
Shareholders’ equity 508,930 427,192 479,840
Total liabilities and
shareholders’ equity $ 3,747,777 $ 3,402,811 $ 3,349,812
Additional Information
Adjusted EBITDA to interest
expense (LTM) 2.82 x 2.61 2.58 x
Total debt as a percentage of
total capitalization 79.0% 79.6% 78.3%
Capital expenditures (YTD) $ 168,504 $ 150,837 $ 107,623
Inventory turns (YTD) 14.5 x 14.3 x 13.6 x
