Unified Reports 3rd Quarter Results

LOS ANGELES, Aug. 20, 2010 (GLOBE NEWSWIRE) -- Unified Grocers, Inc. ("Unified" or the "Company"), the largest wholesale grocery distributor in the western United States, reported net sales of $980.1 million for the third fiscal quarter ended July 3, 2010 ("2010 period"), as compared to $992.5 million for the third fiscal quarter ended June 27, 2009 ("2009 period"), a decrease of 1.2 percent. The decline is attributed to continued soft economic conditions and unemployment levels within its various operating areas.

The Company reported net earnings of $1.3 million for the 2010 period, as compared to net earnings of $3.9 million for the 2009 period. Earnings before patronage dividends and income taxes decreased 22.2 percent and were $6.5 million for the 2010 period, compared to $8.4 million for the 2009 period. The decline in earnings was largely attributable to volatile equity markets that negatively impacted certain life insurance contracts maintained by the Company, resulting in a $2.8 million decline when compared to the same period in 2009. Lower sales volume and non-cash expense increases in pension and post retirement expenses also contributed to the decline in earnings. Partially offsetting these declines were the impacts of operating expense reductions in excess of the lower sales levels.

On a year-to-date basis, net earnings decreased to $8.0 million (down 21.1 percent) while sales and earnings before patronage dividends and income taxes also decreased to $2.940 billion (down 1.7 percent) and $22.2 million (down 22.7 percent) respectively. A major factor impacting the decline in year-to-date earnings before patronage dividends and income taxes was the unusually high level of food inflation and other vendor-related support during Fiscal 2009 that has not been present thus far in Fiscal 2010. 

"Uncertain economic conditions continue to impact consumer spending at many of our members' retail stores," said Al Plamann, president and chief executive officer, Unified Grocers. "Sales volumes are down because consumers are still cautious about what they are spending and are continuing to trade down in many product categories.

"Though our earnings for the quarter and fiscal year at Unified are in line with our budget, we continue to focus on expense control in all of our operations in an effort to keep our distribution network as efficient and effective as possible," said Plamann. "Our retailers continue to open new stores and refresh existing facilities. There are many opportunities for our independent retailers in all of our marketplaces."

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 2009, 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, 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.