(LOS ANGELES) — Unified Western Grocers, Inc., the largest retailer-owned wholesale grocery distributor in the Western United States, announced significantly improved results for its first quarter ended December 28, 2002.
The Los Angeles-based distributor's continuing operations achieved earnings of $6.1 million during the quarter, a 39 percent improvement over the same period last year. Net earnings were $1.3 million for the quarter, compared to a net loss of $2 million in the first quarter of 2002. As a result of its improved performance, Unified generated an estimated $4 million in patronage dividends for members of the cooperative, up from $2.9 million during the first quarter last year. Sales for the quarter were up slightly over last year.
The Company attributed its improved performance to increases in productivity and throughput in each of the Company's five major distribution centers, a company-wide reduction in expenses, improvements in the profitability of its insurance and specialty food subsidiaries and continued strength in its financing subsidiary. In addition, cash flow from operations and working capital also improved.
"We are extremely pleased with the results for the first quarter," said Alfred A. Plamann, president and chief executive officer, Unified Western Grocers, Inc. "Our results confirm that recent strategic initiatives we have implemented are the correct ones and will go a long way toward assuring the future financial strength of our company and the success of our members.
"We are also encouraged because these results were achieved in a very difficult end-of-the-year retailing environment," Plamann said. "I believe that kind of performance speaks volumes about the strength and resiliency of independent retail grocers throughout the Western United States."
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 $2.8 billion in sales during Fiscal 2002, 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 at www.sec.gov/edgar.shtml.
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 filed with the Securities and Exchange Commission and other interim reports. 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.
(Amounts in thousands)
Quarter Ended
December 28, 2002 December 29, 2001
Net sales (from continuing
operations) $709,107 $705,497
Operating income $12,086 $10,182
Earnings from continuing $6,145 $4,411
operations before estimated
patronage dividends and
income taxes
Estimated patronage dividends $3,960 $2,867
Net earnings (loss) $1,298 ($1,978)
This press release contains forward-looking statements with respect to benefits expected to be derived from the proposed acquisition. There are a variety of factors which could cause actual results to differ materially from those anticipated by the statements above. These factors are outlined in Unified'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.