DALLAS, Aug. 20 /PRNewswire/ -- Fleming (NYSE: FLM) today announced that
the company is affirming its previously announced guidance for 2001 adjusted
earnings of $1.96 per share, as well as its 2002 and 2003 guidance of $2.50
per share and $3.30 per share, respectively. This represents the continuation
of a five-year 30% compounded growth rate for adjusted earnings (fiscal years
1999-2003).
"Our $1.96 guidance for 2001 is especially noteworthy because of the
concurrent 22% increase in fully diluted shares during our second quarter this
year," said Fleming Chairman and Chief Executive Officer Mark Hansen. During
the latest quarter, Fleming's fully diluted shares grew from 42 million to
51 million shares, and adjusted earnings were 60% over the second quarter of
2000. Hansen continued, "The solid, ongoing improvement in our retail
business and a 16% year-over-year improvement in distribution sales drove
blockbuster results for the latest quarter. As we look ahead, the company
expects to benefit from improvements derived from our central procurement
initiatives, sales growth, expense management and productivity enhancements."
In addition, Fleming also recently announced the expected settlement of
several complex and old lawsuits relating to certain retail supply agreements
in Kansas City and Salt Lake City. The settlements cover a multitude of
lawsuits with issues dating back as far as 30 years. "Although these suits
have nothing to do with current Fleming operations, we are very pleased to put
a final conclusion to these pending issues and bring them to a close," said
Hansen. Also, as a result of these settlements, Fleming will obtain 100%
ownership of key Arizona Food4Less stores. "In total, this is a very positive
development for our company as we are closing a chapter on the past and
clearing the way for more aggressive Food4Less expansion in the Southwest,"
said Hansen.
Fleming is the industry leader in distribution and has a growing presence
in value retailing. Fleming's primary business is buying and selling
merchandise. The company serves approximately 3,000 supermarkets including
more than 700 North American stores of global supermarketer IGA and other
regional banners, 5,000 convenience stores and more than 2,000 supercenters,
discount, limited assortment, drug, specialty, and other businesses across the
country. To learn more about Fleming, visit our Web site at http://www.fleming.com .
Safe-Harbor Statement: This release includes forward-looking statements
that (a) project or offer guidance regarding earnings, revenues, or other
financial results, (b) depend on future events for their accuracy, or (c) rely
upon projections and assumptions which may prove to be inaccurate. The
projections were not prepared with a view to compliance with the guidelines
established by the American Institute of Certified Public Accountants
regarding projections. These forward-looking statements and the company's
business and prospects are subject to a number of factors that could cause
actual results to differ materially, including: the ability to achieve the
expected synergies and anticipated cost savings from the Kmart alliance;
unanticipated transition and start-up costs related to the Kmart alliance; the
ability to obtain capital or obtain it on acceptable terms; unanticipated
problems with product procurement; adverse effects of the changing industry
environment and increased competition; sales declines and loss of customers;
exposure to litigation and other contingent losses; unanticipated charges
related to the strategic initiatives plan or failure to achieve the expected
results of such plan; the inability to integrate acquired companies and to
achieve operating improvements at those companies; increases in labor costs
and disruptions in labor relations with union bargaining units representing
the company's employees; and negative effects of the company's substantial
indebtedness and the limitations imposed by restrictive covenants contained in
the company's debt instruments. These and other risk factors are described in
the company's Securities and Exchange Commission reports, including but not
limited to the 10-K Report for the 2000 fiscal year. The company undertakes
no obligation to update forward-looking statements to reflect developments or
information obtained after the date hereof. Adjusted earnings are defined as
earnings excluding strategic plan charges and one-time items.
CONTACTS:
(Media) Shane Boyd 972.906.8824
(Media) Randy Hatcher 972.906.8823
(Investors-Equity) Meredith Anderson 972.906.8592
(Investors-Debt) Matt Hildreth 972.906.8126
SOURCE Fleming
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Related links:
http://www.fleming.com
CONTACT:
media, Randy Hatcher, +1-972-906-8823, or
Shane Boyd, +1-972-906-8824, or investors-equity, Meredith
Anderson, +1-972-906-8592, or investors-debt, Matt Hildreth,
+1-972-906-8126, all of Fleming
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