(LOS ANGELES) -- Unified Grocers1 ("Unified" or the "Company"), the largest wholesale grocery distributor in the western United States, reported strong sales growth for the fiscal year ended September 29, 2007 ("2007 period"), along with improvements in its core operations.
The Los Angeles-based cooperative achieved net sales of $3.13 billion for the 2007 period as compared to $2.95 billion for the fiscal year ended September 30, 2006 ("2006 period"), a 6.1 percent increase. The Company attributed its 2007 sales performance primarily to new stores opened by its members and continued growth in the Company's Perishables and Specialty divisions.
As a result, operating income and net earnings showed modest declines from the prior year but the Company's core operations actually improved. This is demonstrated by the fact that while operating income for the 2007 period declined 6.1 percent from the 2006 period, if the impact of favorable workers' compensation loss reserve adjustments and litigation recoveries occurring in the 2006 period are considered, the Company's operating income on an adjusted basis increased by over 10 percent. These same factors also impacted net earnings, which were $14.4 million for the 2007 period as compared to $16.1 million for the 2006 period.
Unified's financial performance for the 2007 period does not include results from Associated Grocers, Inc. Unified acquired certain assets and assumed certain liabilities of Associated Grocers on September 30, 2007.
"We are very pleased with our results for 2007. If you factor out unusual items that boosted our results last year, our core business experienced significant improvement in 2007," said Alfred A. Plamann, president and chief executive officer, Unified Grocers. "We were able to increase our sales by more than six percent because our retailers are continuing to open new stores and expand their businesses, and also because our sales and procurement personnel are ensuring that these retailers have the right products at the right time.
"We anticipate continued strong growth during 2008," said Plamann. "In addition to approximately $1 billion in additional annual sales volume anticipated from our recent transaction with Associated Grocers, we believe the strategies we have in place, the synergies we expect to achieve and the additional resources we have acquired will continue to keep our Company and our retailers successful in 2008 and beyond."
Unified Grocers is a retailer-owned wholesale grocery distributor that supplies independent retailers throughout the western United States. Unified and its subsidiaries, which generated approximately $3.1 billion in sales during fiscal 2007, offer independent retailers all the resources they need to compete in the supermarket industry.
An online version of Unified's Form 10-K, filed with the Securities and Exchange Commission, is available on Unified's website at www.uwgrocers.com and at www.sec.gov/edgar.shtml.
1As part of an initiative to strengthen its corporate brand and image in the marketplace, Unified Western Grocers recently changed its name and is now doing business as "Unified Grocers." The Company has begun to utilize Unified Grocers as its business name for nearly all purposes and expects to effectuate a legal name change after approval by its shareholders at Unified's annual meeting scheduled for February 12, 2008.
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Safe Harbor Statement
This press release contains forward-looking statements about the future performance of Unified Grocers 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-K 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.
|
(dollars in thousands) |
For the Fiscal Year-ended |
|
|
September 29, 2007 |
September 30, 2006 |
|
Net sales |
$3,133,441 |
$2,953,823 |
|
Operating income |
$55,706 |
$59,353 |
|
Earnings before patronage
dividends and income taxes |
$41,866 |
$45,027 |
|
Patronage dividends |
$17,680 |
$20,973 |
|
Net earnings |
$14,406 |
$16,142 |
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.