Unified's Third Quarter Results Exceed Prior Year

LOS ANGELES, Aug. 10, 2011 (GLOBE NEWSWIRE) -- Unified Grocers, Inc. ("Unified" or the "Company"), the largest wholesale grocery distributor in the western United States reported an increase in operating income of $3.1 million over the prior year amount of $9.5 million for the third fiscal quarter ended July 2, 2011 ("2011 period"). This 32 percent increase is attributable to a settlement awarded to the Company relative to the termination of a supply agreement, reductions in operating expenses and strong inventory holding gains for the quarter. Net earnings of $1.2 million for the 2011 period were relatively flat as compared to earnings of $1.3 million for the 2010 period.

Year-over-year sales trends are improving, although the third quarter sales were down slightly over 1 percent from prior year. Although sales were negatively impacted by the loss of a significant member, the decrease was partially offset by an increase in sales to continuing customers, which included the timing of sales associated with Easter occurring in the third quarter of fiscal 2011 compared to the second quarter of fiscal 2010, and sales to new customers.

On a year-to-date basis, net earnings decreased to $7.1 million as compared to $8.0 million last year. Sales and earnings before patronage dividends decreased to $2.883 billion and $21.0 million, from $2.940 billion and $22.2 million, respectively.

 "Consumers continue to be careful about how much they are spending at the grocery store but many of our independent retailers are holding their own in this challenging environment," said Al Plamann, chief executive officer, Unified Grocers. "This is a time when being close to your customers and the community in which you operate really makes a difference — and that's exactly what independents do better than anyone else in the marketplace.

"During the third quarter we signed new customers to supply agreements, we increased sales to existing customers and we exceeded our sales goal at our annual buying show for members and customers, which was held in June," Plamann said. "At year's end we believe we will be at our target for sales and earnings."

Founded in 1922, 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 billion in sales during fiscal 2010, 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.unifiedgrocers.com and at www.sec.gov/edgar.shtml.

The Unified Grocers, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=1214

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.