Prime Retail, Inc. Reports 29.3% Increase In Fourth Quarter Funds From
Operations
BALTIMORE, MD - Jan. 28, 1997 - Prime Retail, Inc. (Nasdaq: PRME,
PRMEP) today announced its operating results for the fourth quarter and
year ended December 31, 1996.
In accordance with the new definition of funds from operations ("FFO")
established by the National Association of Real Estate Investment Trusts
in 1995, FFO before allocations to preferred shareholders and minority
interests increased 29.3% to $9.7 million for the three months ended
December 31, 1996, compared to $7.5 million for the three months ended
December 31, 1995. On a primary basis, FFO per common share
equivalent increased 66.7% to $0.30 for the three months ended
December 31, 1996, compared to $0.18 for the three months ended
December 31, 1995. On a fully diluted basis, FFO per common share
equivalent increased 10.3% to $0.32 the three months ended December
31, 1996, compared to $0.29 for the three months ended December 31,
1995.
Abraham Rosenthal, chief executive officer of the Company, stated: "We
are very pleased with the 29.3% increase in FFO in the fourth quarter of
1996 when compared to the same period in 1995. Our fourth quarter
results include the financial benefits associated with the recently
completed acquisitions of Rocky Mountain Factory Stores, Kansas City
Factory Outlets and our joint venture partner's 50.0% interest in Grove
City Factory Shops and the openings of Buckeye Factory Shops and
Carolina Factory Shops. 1996 was a very productive year for the
Company, considering we completed a $43.2 million common stock
secondary offering, exchanged 60% of our Series B preferred stock for
common stock, completed a significant debt refinancing, opened 930,000
square feet of new outlet space and completed several strategic property
acquisitions. The fundamentals of our business are sound and, therefore,
we look forward to continued growth in future years."
FFO before allocations to preferred shareholders and minority interests
was $27.6 million for the year ended December 31, 1996, after
deducting non-recurring charges of $6.1 million in the second quarter
related to the debt refinancing, compared to $28.0 million for the year
ended December 31, 1995. On a primary basis, FFO per common share
equivalent increased 37.5% to $0.77 for the year ended December 31,
1996, compared to $0.56 for the year ended December 31, 1995. On a
fully diluted basis, FFO per common share equivalent decreased 12.3%
to $0.93 for the year ended December 31, 1996, compared to $1.06 for
the year ended December 31, 1995. The non- recurring charge of $6.1
million related primarily to the write down of nonrefundable deferred
financing fees and the unamortized cost of certain interest rate protection
contracts. The non-recurring charge had no effect on distributable net
cash flow of the Company.
Income before allocations to preferred shareholders, minority interests
and extraordinary loss (GAAP basis) was $7.0 million and $12.8 million
for the years ended December 31, 1996, and 1995, respectively, and
$3.7 million and $3.4 million for the three months ended December 31,
1996, and 1995, respectively.
As previously announced, on November 1, 1996, the Company acquired
Rocky Mountain Factory Stores and Kansas City Factory Outlets for an
aggregate purchase price of $71.3 million. Rocky Mountain Factory
Stores is located in Loveland, Colorado, which is approximately 35
miles north of Denver and contains approximately 328,000 square feet of
GLA. Kansas City Factory Outlets is located in Odessa, Missouri, which
is approximately 20 miles east of Kansas City and contains
approximately 191,000 square feet of GLA. On November 8, 1996, the
Company opened Phase II of Kansas City Factory Shops, which contains
approximately 105,000 square feet of GLA. On November 1, 1996, the
Company also finalized its previously announced agreement to purchase
its joint venture partner's first mortgage and 50.0% partnership interest in
Grove City Factory Shops. Grove City Factory Shops is located in
Grove City, Pennsylvania, which is approximately 40 miles north of
Pittsburgh and consists of approximately 415,000 square feet of GLA. On
November 15, 1996, the Company opened Phase IV of Grove City
Factory Shops containing approximately 118,000 square feet of GLA
bringing the total project to 533,000 square feet of GLA. Grove City
Factory Shops is the number one project in the Company's portfolio in
terms of total GLA and sales per square foot which exceed $340.00 for
the year ended December 31, 1996. The operating results of the
Company for the three months ended December 31, 1996, include the
results of these three acquisitions which closed on November 1, 1996.
Prior to November 1, 1996, the Company accounted for its 50.0%
investment in Grove City Factory Shops using the equity method of
accounting. As a result of the Company's acquisition of its joint venture
partner's 50.0% interest, the operating results of Grove City Factory
Shops are now consolidated. Finally, on November 1, 1996, the
Company completed a previously announced debt refinancing that
provided $428.3 million of loan proceeds. Proceeds from this
transaction were primarily used (i) to refinance debt under various credit
facilities, (ii) to purchase Rocky Mountain Factory Stores, Kansas City
Factory Outlets and Grove City Factory Shops, and (iii) loan costs, fees
and working capital.
During the year ended December 31, 1996, the Company opened 930,000
square feet of GLA as summarized in the following table:
Center GLA Opening Date
Location Third Quarter Openings Arizona Factory Shops
109,000 September 26 Phoenix, Arizona Ohio
Factory Shops 35,000 August 29
Jeffersonville,
O
h
i
o
Magnolia Bluff Factory Shops21,000 July 28
Darien, Georgia Triangle Factory Shops 6,000
July 19 Raleigh-Durham,
N
o
r
t
h
C
a
r
o
l
i
n
a
Total third quarter 171,000
Fourth Quarter Openings
Carolina Factory Shops 235,000 November 8
Gaffney, South Carolina Buckeye Factory Shops
205,000 November 22 Medina County, Ohio Grove
City Factory Shops 118,000 November 15 Grove
City,
P
e
n
n
s
y
l
v
a
n
i
a
Kansas City Factory Outlets105,000 November 8
Odessa, Missouri
Gulfport Factory Shops 40,000 November 1
Gulfport,
Mississippi
Gulf Coast Factory Shops 30,000 October 18
Ellenton, Florida Indiana Factory Shops 26,000
November 14 Daleville, Indiana
Total fourth quarter 759,000
Total - 1996 930,000
For the year ended December 31, 1996, same-space sales in centers
owned by the Company increased 0.4% to $233.00 per square foot
compared to $232.00 per square foot for the year ended December 31,
1995. Same-space sales is defined as weighted average sales per square
foot reported by merchants for space open since January 1, 1995.
On January 16, 1997, the board of directors approved a dividend of
$0.295 per common share payable on February 15, 1997, to common
shareholders of record on February 3, 1997. The dividend covers the
period from October 1, 1996, through December 31, 1996. The dividend
is the pro rata equivalent of an annual dividend of $1.18 per share. In
addition, the board approved a dividend of $0.53125 per share on the
8.5% Series B Preferred Stock. This dividend is payable on February
15, 1997, to Series B Preferred shareholders of record on February 3,
1997. The dividend covers the period from November 16, 1996, through
February 15, 1997. The dividend is the pro rata equivalent of an annual
dividend of $2.125 per share. The board further approved a dividend of
$0.65625 per share on the 10.5% Series A Senior Cumulative Preferred
Stock. This dividend is payable on February 15, 1997, to Series A
Preferred shareholders of record on February 3, 1997. The dividend
covers the period from November 16, 1996, through February 15, 1997.
The dividend is the pro rata equivalent of an annual dividend of $2.625
per share.
Based on the old definition of funds from operations ("old FFO"), old
FFO before allocations to preferred shareholders and minority interests
increased 17.6% to $10.5 million for the three months ended December
31, 1996, compared to $8.9 million for the three months ended December
31, 1995. On a primary basis, old FFO per common share equivalent
increased 13.3% to $0.34 for the three months ended December 31,
1996, compared to $0.30 for the three months ended December 31, 1995.
On a fully diluted basis, old FFO per common share equivalent
decreased 2.8% to $0.35 for the three months ended December 31, 1996,
compared to $0.36 for the three months ended December 31, 1995. The
fourth quarter 1996 old FFO results represent the second consecutive
quarter that parity was achieved in the amount of dividends and
distributions that will be paid to both common shareholders and unit
holders at $0.295 per share.
For the year ended December 31, 1996, the dividends and distributions
paid to shareholders are taxable as summarized in the following table:
Security Return of Capital
Ordinary income Common Stock
100.0% ---
10.5% Series A
Cumulative Preferred Stock ---
100.0%
8.5% Series B Cumulative
Participating Convertible
Preferred Stock 61.98%
38.02%
Prime Retail is a self-administered, self-managed real estate investment
trust engaged in the ownership, development, and management of factory
outlet centers. Prime Retail's outlet center portfolio consists of 21 outlet
centers in 16 states, which total approximately 5.8 million square feet of
GLA as of December 31, 1996. As of December 31, 1996, Prime
Retail's factory outlet center portfolio was approximately 91% leased.
Prime Retail has been a developer of factory outlet centers since 1988.
For additional information, visit Prime Retail's web site at:
http://www.primeretail.com.
PRIME RETAIL, INC.
Selected Financial Data (Unaudited)
Amounts in thousands except per share and unit
information
GAAP BASIS
Three Months Ended
Year Ended
December 31
December 31
1996 1995
1996 1995
STATEMENTS OF OPERATIONS
Revenues
Base rents $16,293 $12,659
$54,710 $46,368 Percentage rents
710 399 1,987 1,520 Tenant
reimbursements 7,181 6,151 25,254
22,283 Income from
investment partnerships 380 537
1,239 1,729
Interest and other 1,364 1,583
5,850 5,498
Total revenues 25,928 21,329
89,040 77,398
Expenses
Property operating 5,885 4,962
20,421 17,389 Real estate taxes
1,434 911 5,288 4,977 Depreciation
and amortization 5,678 4,177 19,256
15,438 Corporate general and
administrative 1,186 1,438
4,018 3,878
Interest 7,142 5,842
24,485 20,821 Other charges
899 630 8,586 2,089
Total expenses 22,224 17,960
82,054 64,592
Income before minority
interests and
extraordinary item 3,704 3,369
6,986 12,806
(Income) loss allocated
to minority interests (2,568) 1,213
(1,170) 5,364
Income before extraordinary item 1,136 4,582
5,816 18,170 Extraordinary item - loss
on early extinguishment of
debt, net of minority
interests in the amount
of $3,263 --- ---
(1,017) ---
Net income 1,136 4,582
4,799 18,170 Income allocated to
preferred shareholders 3,000 5,236
14,236 20,944
Loss allocated to common
shareholders $(1,864) $(654)
$(9,437) $(2,774)
Per common share (A):
Loss before
extraordinary item $(0.14) $(0.23)
$(1.03) $(0.96)
Extraordinary item --- ---
(0.12) --- Net loss
$(0.14) $(0.23) $(1.15) $(0.96)
Weighted average
common shares outstanding 13,405 2,875
8,221 2,875
SELECTED BALANCE SHEET DATA
Decem
ber
31
1996
1995
Rental properties before
accumulated depreciation $644,450
$454,480
Cash and cash equivalents 3,924
14,927 Total assets
666,803 462,405 Mortgage and other debt
499,523 305,954 Total liabilities
527,596 326,465
Shareholders' equity 139,207
121,484
Selected Financial Data (Unaudited) --
continued
Amounts in thousands except per share and unit
information
FUNDS FROM OPERATIONS (FFO) and DIVIDEND
DISTRIBUTION SUMMARY
Three Months Ended
Year Ended
December 31
December 31
1996 1995
1996 1995
RECONCILIATION OF GAAP INCOME
TO FFO (NEW and OLD DEFINITION)
Income before minority
interests and extraordinary
item (GAAP basis) $3,704 $3,369
$6,986 $12,806
Adjustments:
Depreciation and amortization 5,678 4,177
19,256 15,438 Amortization of deferred
financing costs and
interest rate
protection contracts 696 1,213
3,723 4,524
Non-cash charges --- ---
6,131 --- Unconsolidated joint
venture adjustments 388 144
2,052 365
Distributable net cash flow(B) 10,466 8,903
38,148 33,133
Non-cash charges --- ---
(6,131) ---
FFO - Old Definition(C) 10,466 8,903
32,017 33,133
Non-real estate depreciation
and amortization (773) (1,407)
(4,380) (5,137)
FFO - New Definition(C) $9,693 $7,496
$27,637 $27,996
DIVIDEND DISTRIBUTION SUMMARY
Distributable net cash flow $10,466 $8,903
$38,148 $33,133 Preferred stock
dividend - Series A (1,509) (1,509)
(6,038) (6,038)
8,957 7,394
32,110 27,095
Payout reserves(D) (1,003) (739)
(3,347) (2,710)
7,954 6,655
28,763 24,385
Preferred stock
dividend - Series B (1,491) (3,727)
(8,199) (14,907)
6,463 2,928
20,564 9,478
Common stock dividend (3,954) (848)
(12,711) (3,392)
2,509 2,080
7,853 6,086
Distribution adjustment(E) --- ---
1,117 --- Total distribution to
limited partners $2,509 $2,080
$8,970 $6,086
Per share/unit amounts:
Preferred stock
Series A $0.656 $0.656
$2.625 $2.625 Series B
$0.531 $0.531 $2.125 $2.125
Common stock(F) $0.295 $0.295
$1.180 $1.180 Limited partner units(F)
$0.295 $0.226 $1.036 $0.660
PRIME RETAIL, INC.
Selected Financial Data (Unaudited) --
continued
Amounts in thousands except per share and unit
information
FUNDS FROM OPERATIONS (FFO) and DIVIDEND DISTRIBUTION
SUMMARY
- (continued)
FUNDS FROM OPERATIONS SUMMARY - NEW
DEFINITION
Three Months Ended
Year Ended
December 31
December 31
1996 1995
1996 1995
FFO - New Definition $9,693 $7,496
$27,637 $27,996 Minority interests
(60) (45) (248) (276)
9,633 7,451
27,389 27,720
Preferred stock dividends
Series A (1,509) (1,509)
(6,038) (6,038) Series B
(1,491) (3,727) (8,199) (14,907)
6,633 2,215
13,152 6,775
Allocation to limited
partners (2,509) (2,080)
(7,853) (6,086)
Allocation to common
shares outstanding $4,124 $135
$5,299 $689
FFO per common share
outstanding(F)(G) $0.31 $0.05
$0.64 $0.24
FFO per common share
equivalent - primary(F)(H) $0.30 $0.18
$0.77 $0.56
FFO per common share
equivalent - fully
diluted(F)(I) $0.32 $0.29
$0.93 $1.06
Weighted Average Shares
and Units Outstanding
Common Shares 13,405 2,875
8,221 2,875 Limited partner common units
8,505 9,221 8,855 9,221
Total primary shares 21,910 12,096
17,076 12,096
Series B convertible
preferred shares 3,356 8,391
5,805 8,391 Total fully diluted shares
25,266 20,487 22,881 20,487
Selected Financial Data (Unaudited) --
continued
Amounts in thousands except per share and unit
information
FUNDS FROM OPERATIONS (FFO) and DIVIDEND DISTRIBUTION
SUMMARY
- (continued)
FUNDS FROM OPERATIONS SUMMARY - OLD
DEFINITION
Three Months Ended
Year Ended
December 31
December 31
1996 1995
1996 1995
FFO - Old Definition $10,466 $8,903
$32,017 $33,133 Minority interests
(62) (70) (253) (280)
10,404 8,833
31,764 32,853
Preferred stock dividends
Series A (1,509) (1,509)
(6,038) (6,038) Series B
(1,491) (3,727) (8,199) (14,907)
7,404 3,597
17,527 11,908
Allocation to limited partners (2,509) (2,080)
(7,853) (6,086)
Allocation to
common shares outstanding $4,895 $1,517
$9,674 $5,822
FFO per common
share outstanding(F)(G) $0.37 $0.53
$1.18 $2.03
FFO per common share
equivalent -
primary(F)(H) $0.34 $0.30
$1.03 $0.98
FFO per common share
equivalent -
fully diluted(F)(I) $0.35 $0.36
$1.12 $1.31
Weighted Average Shares
and Units Outstanding
Common Shares 13,405 2,875
8,221 2,875 Limited partner common units
8,505 9,221 8,855 9,221
Total primary shares 21,910 12,096
17,076 12,096
Series B convertible
preferred shares 3,356 8,391
5,805 8,391 Total fully diluted shares
25,266 20,487 22,881 20,487
Notes:
(A) Net loss per common share (GAAP basis) is net of applicable
preferred dividends. Fully diluted per share amounts (GAAP basis) are
not presented since the effect would be anti- dilutive.
(B) In accordance with its Partnership Agreement, Prime Retail, L.P.
excludes non-cash charges in determining its distributable net cash flow.
(C) Funds from operations means net income (loss) (computed in
accordance with GAAP), excluding gains or losses from debt
restructuring and sales of real property, plus depreciation and
amortization and after adjustments for unconsolidated partnerships and
joint ventures. In March 1995, the National Association of Real Estate
Investment Trusts established guidelines clarifying the definition of FFO
(as modified, the "New Definition"). For the Company, the primary
impact of reporting FFO under the New Definition is a reduction in FFO
since the amortization of capitalized debt costs and depreciation of
non-real estate assets are not added back to income before allocations to
minority interests (GAAP basis).
(D) Includes reserves for capital expenditures and working capital.
(E) In accordance with the Partnership Agreement, dividends paid on
newly issued shares of common stock are not subtracted in connection
with calculating the amount to be distributed to the limited partners to the
extent such newly issued shares were not issued and outstanding for the
entire quarter.
(F) In accordance with its Partnership Agreement, Prime Retail, L.P.
will pay a preferential distribution of $0.295 in each quarter for each
common unit held by Prime Retail, Inc. (the total of such units is equal to
the number of outstanding common shares of the Company) before any
distribution is paid for the common units held by the Limited Partners.
After payment of the preferential distribution to Prime Retail, Inc., up to
$0.295 will be distributed for each common unit held by the Limited
Partners. Any additional distributions will be allocated pro rata among
the common units held by the Company and by the Limited Partners. The
preferential distribution for common units held by the Company will
terminate after Prime Retail, L.P. has paid quarterly distributions of at
least $0.295 on all common units (21,910 common units after giving
effect to the exchange offer and the secondary common stock offering)
during four successive quarters without distributing to the Convertible
Preferred Units and common units more than 90% of FFO after the
payment of distributions to the Senior Preferred Units in any such
quarter. Once the preferential distribution is terminated, distributions
with respect to the common units held by Prime Retail, Inc. and the
Limited Partners will be pro rata to the holders thereof. Accordingly,
FFO must equal at least $10,347 (or $0.335 per common share
equivalent-primary) for four successive quarters to terminate the
preferential distribution to the Company. For purposes of determining the
amount of distributions to the Limited Partners and whether the
Company's FFO is sufficient to terminate the preferential distribution,
FFO is calculated based on the old definition of Funds from Operations.
(G) "FFO per common share outstanding" is equal to FFO after minority
interests less Series A and Series B preferred dividends and
distributions to limited partners divided by the weighted average number
of common shares outstanding.
(H) "FFO per common share and common share equivalent-primary" is
equal to FFO after minority interests less Series A and Series B
preferred dividends divided by the total of (a) the weighted average
number of common shares and (b) the weighted average number of
limited partner common units.
(I) "FFO per common share and common share equivalent-fully diluted"
is equal to FFO after minority interests less Series A preferred dividends
divided by the total of (a) the weighted average number of common
shares, (b) the weighted average number of limited partner common units
and (c) the weighted average number of common share equivalents
assuming a full conversion of all Series B convertible preferred shares.
SOURCE Prime Retail, Inc./CONTACT: Robert P. Mulreaney, Chief
Financial Officer, or Anya T. Harris, Public Relations of Prime Retail,
410-234-0782/
Smith's Food & Drug Centers, Inc. Announces Record EBITDA For
Fiscal 1996
SALT LAKE CITY, UT - Jan. 28, 1997 - Smith's Food & Drug Centers,
Inc. (NYSE: SFD) ("Smith's or the "Company") today announced results
for the fourth quarter and fiscal 1996 ended December 28, 1996.
FOURTH QUARTER RESULTS
Net income for the quarter was $7.8 million or $.48 per common share
compared to a net loss of $70.1 million or $2.79 per common share for
the quarter in the prior year. Excluding the closed California operations
in 1995, earnings before interest, taxes, depreciation, amortization and
LIFO (EBITDA) for the quarter increased 16.9% to $71.4 million, or
9.3% of sales, compared to EBITDA of $61.1 million, or 9.7% of sales,
last year. The increase in EBITDA resulted primarily from the addition
of 26 stores by merger with Smitty's Supermarkets, Inc. ("Smitty's") and
four new stores opened since the end of 1995. The Company's EBITDA
to cash interest expense coverage for the fourth quarter was 2.1 times.
The average number of common shares outstanding during the quarter
totaled 16.2 million, compared to 25.1 million last year. (There are
currently 15.8 million common shares outstanding, excluding stock
options, reflecting the recapitalization of the Company and the issuance
of shares to the former Smitty's shareholders in connection with the
merger with Smitty's.)
Sales for the fourth quarter 1996 were $766.2 million, a decrease of
4.0% from the fourth quarter last year. Excluding California, net sales
increased $134.9 million, or 21.4%, from $631.3 million in 1995 to
$766.2 million in 1996. Excluding California, same store sales for the 13
week period decreased 1.6% compared to declines of 2.7%, .9% and
.7%, respectively, in the first, second and third quarters of 1996. The
pre-tax LIFO credit for the fourth quarter was $3.3 million or $.12 per
common share after tax.
FISCAL 1996 RESULTS
Sales for the year ended December 28, 1996 were $2.9 billion, a
decrease of 6.3%. Excluding California, net sales increased $407.8
million, or 16.9% during the year. Excluding California, same stores
sales for the year decreased 1.4%.
The net loss for the year totaled $164.2 million or $8.42 per common
share, compared to a net loss of $40.5 million or $1.62 per common
share last year. Results for each year included restructuring charges
related to the California disposition. Additionally, the results for 1996
included one-time expenses resulting from the merger and
recapitalization. Excluding these expenses and charges, EBITDA for
fiscal 1996 increased 14.6% to a record $260.3 million compared to
EBITDA of $227.2 million last year. Due to the merger and
recapitalization, the average number of common shares outstanding
during 1996 were 19.5 million and 25.0 million in 1995. The pre-tax
LIFO charge for the year totaled $2.0 million compared to $4.0 million
last year.
EXPANSION
During the year, the Company opened four new stores located in Cedar
City, Utah; Mesquite, Nevada and two in Phoenix, Arizona; acquired the
28 Smitty's stores in Arizona and closed 34 stores in California. Two of
the Smitty's stores were subsequently leased to other retailers. As of
December 28, 1996, the Company operated 150 stores, 133 of which
were large food and drug combination stores, with total square footage
of approximately 10.2 million.
MERGER AND RECAPITALIZATION
On May 23, 1996, Smith's repurchased approximately one-half of its
25.1 million outstanding shares of Common Stock at $36.00 per share
and issued 3.2 million shares of its Class B Common Stock in connection
with the Smitty's merger. To finance the transactions, Smith's (i) entered
into a new senior secured bank credit facility under which Smith's
borrowed $805 million of term loans and (ii) issued and sold $575
million of 11 1/4% Senior Subordinated Notes due 2007 in a public
offering. The Company recently announced that it has made additional
prepayments of $100 million on the term loans subsequent to the end of
fiscal 1996. In addition, the Company plans to make an additional $25
million prepayment on January 31, 1997. These payments are in addition
to the $50 million prepayment on September 30, 1996 and result in total
prepayments of $175 million since the recapitalization of the Company in
May of 1996.
As a result of the merger, the financial results for the fiscal year include
31 weeks of operations from the Smitty's stores. Additionally, Smith's
closed its California region comprised of 34 stores and a large
distribution center during the first quarter of 1996. Due to the effect on
operations caused by the closure of California and the merger with
Smitty's, comparisons of quarterly and year-to-date results to the prior
year's comparable periods are not meaningful.
Al Rowland, Smith's President and Chief Operating Officer, said, "I am
pleased with the financial results for fiscal 1996. We focused on our
operational opportunities and integrating Smith's and Smitty's which
resulted in achieving record EBITDA of $260 million for the year. Also
since May 1996, we have focused on reducing the leverage of the
Company. I am pleased that the proceeds from the sale of excess assets,
including California assets, and related tax benefits received, in addition
to cash flow from operations, have permitted us to make $175 million in
prepayments on the bank term loans."
The Company operates stores in seven Intermountain and Southwestern
states with principal markets in Salt Lake City, Phoenix, Las Vegas and
Albuquerque.
SMITH'S FOOD & DRUG CENTERS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollar amounts in thousands)
Dec
28,
Dec
30,
199
6
19
95
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$48,466 $16,079 Rebates and accounts
receivable 23,624 23,802
Inventories
371,912 394,982 Other current assets
136,031 45,155 Assets held
for sale 40,348
125,000
TOTAL CURRENT ASSETS
620,381 605,018 PROPERTY AND EQUIPMENT
Land
195,408 276,626 Buildings
591,075 610,049 Leasehold
improvements 46,266
55,830 Property under capitalized leases
33,212 Fixtures and equipment
530,894 509,524
1,396,8
55
1,452,0
29
Less allowances for depreciation
and amortization
440,811 390,933
956,0
44
1,061
,096
GOODWILL, less accumulated
amortization of $1,684
121,484
OTHER ASSETS
88,096 20,066
$1,786,0
05
$1,686,1
80
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable
$269,717 $214,152 Accrued sales and other
taxes 29,480 38,724
Accrued payroll and related benefits
78,950 65,785 Other accrued expenses
69,303 43,695 Current
maturities 36,883
21,940 Accrued restructuring costs
25,678 58,000
TOTAL CURRENT LIABILITIES
510,011 442,296 LONG-TERM DEBT, less current
maturities 1,313,926 717,761 OBLIGATIONS
UNDER CAPITAL LEASES,
less current portion
25,585
ACCRUED RESTRUCTURING COSTS,
less current portion
10,421 40,000
DEFERRED INCOME TAXES
13,330 58,600 OTHER LONG-TERM LIABILITIES
31,616 7,492 REDEEMABLE
PREFERRED STOCK,
less current maturities
3,319 3,311
COMMON STOCKHOLDERS' EQUITY
(122,203) 416,720
$1,786,0
05
$1,686,1
80
SMITH'S FOOD & DRUG CENTERS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED) (Dollar amounts in thousands, except per
share data)
Thirteen
Fifty-Two
Weeks Ended
Weeks Ended
Dec 28, Dec 30, Dec
28, Dec 30,
1996 1995
1996 1995
Net sales $766,185 $798,324
$2,889,988 $3,083,737 Cost of goods sold
586,161 616,099 2,237,789 2,386,707
180,024 182,225
652,199 697,030
Expenses:
Operating, selling
and administrative 105,389 117,604
449,247 461,401
Depreciation and
amortization 25,700 27,811
93,951 104,963
Interest 33,555 15,086
104,602 60,046 Amortization of deferred
financing costs 2,304 108
5,406 432
Restructuring Charges 140,000
201,622 140,000
166,948 300,609
854,828 766,842
INCOME (LOSS) BEFORE
INCOME TAXES AND
EXTRAORDINARY CHARGE 13,076 (118,384)
(202,629) (69,812)
Income taxes (benefit) 5,300 (48,300)
(80,245) (29,300) INCOME (LOSS) BEFORE
EXTRAORDINARY CHARGE 7,776 (70,084)
(122,384) (40,512)
Extraordinary charge on
extinguishment of debt,
net of tax benefit
41,782
NET INCOME (LOSS) $7,776 $(70,084)
$(164,166) $(40,512) Income (loss) per share of
Common Stock:
Income (loss) before
extraordinary charge $0.48 $(2.79)
$(6.28) $(1.62)
Extraordinary charge
(2.14) Net income (loss) $0.48 $(2.79)
$(8.42) $(1.62)
Average number of common
shares outstanding
(In thousands) 16,182 25,071
19,493 25,031
SMITH'S FOOD & DRUG CENTERS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) (Dollar amounts in thousands)
Fifty-Tw
o
Fifty-Tw
o
Weeks
Ended
Weeks
Ended
Dec 28,
Dec 30,
1996
1995
OPERATING ACTIVITIES:
Net loss
$(164,166) $(40,512) Adjustments to reconcile
net loss
to net cash provided by
operating activities:
Depreciation and amortization
93,951 104,963 Deferred income tax
benefit (58,703) (53,400)
Restructuring charges
201,622 140,000 Extraordinary charge
69,636 Other
5,957 1,000
148,2
97
152,0
51
Changes in operating assets and
liabilities:
Rebates and accounts receivable
8,966 1,794 Inventories
68,894 (5,418) Other
current assets (44,271)
(5,397) Trade accounts payable
18,483 (21,691) Accrued sales
and other taxes (15,608)
6,583 Accrued payroll and
related benefits
3,391 7,058
Accrued other expenses
(29,882) 6,101 Accrued
restructuring costs (76,232)
CASH PROVIDED BY OPERATING ACTIVITIES
82,038 141,081 INVESTING ACTIVITIES:
Additions to property and equipment
(101,303) (149,035) Proceeds from sale of
property
and equipment
146,075 5,841
Other investing activities
4,269 (3,480)
CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES
49,041 (146,674)
FINANCING ACTIVITIES:
Additions to long-term debt
1,380,000 45,978 Payments on long-term debt
(944,712) (18,686) Purchases
of Treasury Stock (453,636)
(9,039) Payments for deferred financing costs
(79,224) (22) Payment of dividends
(3,761) (14,917) Other
financing activities 2,641
4,170
CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES
(98,692) 7,484
NET INCREASE IN
CASH AND CASH EQUIVALENTS
32,387 1,891
Cash and cash equivalents at
beginning of year
16,079 14,188
CASH AND CASH EQUIVALENTS AT END OF YEAR
$48,466 $16,079
SOURCE Smith's Food & Drug Centers Inc./CONTACT: Matthew G.
Tezak of Smith's Food & Drug Centers, Inc., 801-974-1400/