LOS ANGELES, Feb. 12, 2009 (GLOBE NEWSWIRE) -- Unified Grocers ("Unified" or the "Company"), the largest wholesale grocery distributor in the western United States, reported sales approximating those reported during the first quarter of fiscal 2008, a year in which the Company established new all-time highs for year-end sales and earnings.
Unified reported net sales of $1,045.2 million for the quarter ended December 27, 2008 ("2009 period"), as compared to $1,052.5 million for the fiscal quarter ended December 29, 2007 ("2008 period"). Earnings before patronage dividends and income taxes were $16.2 million for the 2009 period, compared to $18.1 million for the 2008 period.
Earnings after patronage dividends (net earnings) were $3.9 million for the 2009 period as compared to $6.2 million for the 2008 period. The principal reason for the reduction from 2008 is that in the 2009 period, earnings attributable to the former Associated Grocers (Seattle) customers are now reflected in patronage dividends, as the vast majority of these customers are now members. In the 2008 period, earnings attributed to these customers were reflected in net earnings. Additionally, the 2009 period reflects investment declines tied to the equity markets larger than those recorded in 2008.
In spite of a weakened economy and a difficult overall business environment, Unified was able to maintain its sales volume near 2008 levels by increasing sales to the Company's existing customer base (primarily in private label and specialty foods offerings) plus inflationary effects. This sales growth was offset during the period by the transition of a customer of the former Associated Grocers to another wholesaler as that customer emerged from bankruptcy.
Operating income for the 2009 period was $19.8 million compared to $22.5 million in the 2008 period. Operating performance was impacted by investment declines tied to the equity markets but aided by inventory holding gains resulting from vendor price increases.
"We are in possibly the most challenging business environment that any of us have experienced in our lifetimes," said Al Plamann, president and chief executive officer, Unified Grocers. "Our industry is not immune from the effects of this severe recession. While I'm not surprised that our independent retailers have been able to hold their own in their marketplaces, I am pleased that the results are strong.
"We are well aware that things can change drastically in a very short period of time," Plamann said. "Toward that end, we are working with our retail members and customers to ensure that they -- and we -- are doing everything that can be done to maintain and enhance the current and future success of our distribution network and marketplace partnership."
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 $4.1 billion in sales during fiscal 2008, offer independent retailers all the resources they need to compete in the supermarket industry.
The Unified Grocers, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=1214
An online version of Unified's Form 10-Q and other financial documents, filed with the Securities and Exchange Commission, is available on Unified's website at www.unifiedgrocers.com and at www.sec.gov/edgar.shtml.
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.
Unified Grocers, Inc.
(dollars in thousands) For the Thirteen Weeks Ended
December 27, December 29,
2008 2007
---- ----
Net sales $1,045,219 $1,052,557
Operating income $19,775 $22,469
Earnings before patronage
dividends and income taxes $16,165 $18,062
Patronage dividends $9,988 $8,364
Net earnings $3,860 $6,170