DALLAS, Aug. 16 /PRNewswire/ -- Fleming (NYSE: FLM) today announced that
it has reached an agreement in principle to settle all claims related to the
Don's United Super, et.al., Coddington Enterprises, Inc., et.al, J&A Foods,
Inc. et. al., R&D Foods, Inc. et.al., and Robandee United Super, Inc., et.al.,
cases. The settlement, which is contingent on the preparation and execution
of a definitive settlement agreement, includes a full release of Fleming from
liability to the plaintiffs in these cases. Terms of the settlement include
payments by Fleming to the plaintiffs over a 16-month period, the transfer of
a minority interest in several price-impact stores in Arizona to Fleming, and
lease concessions by Fleming to certain plaintiffs.
Execution of the final settlement agreement resolves the disputes between
the parties that have been pending for several years. While Fleming continues
to deny the claims alleged by the plaintiffs, the settlement proposal
eliminates the continued expense and uncertainty and puts the matters behind
the company. Fleming expects to execute a definitive settlement agreement in
the next few weeks. If not executed, the cases and their potential for a
material adverse effect on the company will continue as previously reported in
the company's quarterly and annual reports.
As a result of this agreement in principle, Fleming is recording today a
$21 million after-tax charge in the second quarter to reflect the estimated
total cost of the settlement and other related expenses to Fleming. The
company's previously reported earnings for the second quarter are revised to
reflect the after-tax charge arising from the proposed settlement (see tables
following).
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 website at http://www.fleming.com .
Fleming Companies, Inc. (NYSE: FLM)
Consolidated Condensed Statements of Operations
For the 12 weeks ended July 14, 2001,
and July 8, 2000
(In thousands, except per share amounts)
2001
Reported Adjustments Adjusted
(A)
Net sales $3,457,279 ($2,988) $3,454,291
% change 5.0%
Costs and expenses:
Cost of sales 3,193,922 (11,806) 3,182,116
Selling and administrative (B) 257,692 (51,638) 206,054
Interest expense 34,435 34,435
Interest income (5,788) (5,788)
Equity investment results (279) (279)
Impairment/restructuring charge (117) 117 ---
Total costs and expenses 3,479,865 (63,327) 3,416,538
Income (loss) before taxes (22,586) 60,339 37,753
Taxes on income (loss) (9,128) 24,441 15,313
Net income (loss) ($13,458) $35,898 $22,440
% change 59.7%
Basic and diluted income (loss) per
share:
Basic ($0.31) $0.83 $0.52
Diluted ($0.31) $0.77 $0.46
% change 31.4%
Weighted average shares outstanding:
Basic 43,276 43,276
Diluted 43,276 51,493
Additional information:
Depreciation $31,849 $31,849
Goodwill amortization $4,935 $4,935
Diluted EPS excluding goodwill
amortization $0.54
% change 12.5%
Operating earnings $66,121
% change 20.5%
(A) Adjustments relating to the strategic plan, which was announced in
December 1998, totaled $13.7 million in 2001 compared to
$46.3 million in 2000. Charges include non-cash impairments or
impairment adjustments of asset values and cash restructuring costs
for severance, lease termination, real estate disposition costs for
discontinued operations and other related expenses. The one-time
adjustment for 2001 is an $46.6 million charge from litigation
settlements. There were no one-time adjustments for 2000.
(B ) The 2001 amount includes $46,600 of litigation charges.
Fleming Companies, Inc. (NYSE: FLM)
Consolidated Condensed Statements of Operations (Continued)
For the 12 weeks ended July 14, 2001,
and July 8, 2000
(In thousands, except per share amounts)
2000
Reported Adjustments Adjusted
(A)
Net sales $3,289,878 $1,474 $3,291,352
% change
Costs and expenses:
Cost of sales 2,998,624 (21,658) 2,976,966
Selling and administrative (B) 261,374 (1,861) 259,513
Interest expense 38,447 38,447
Interest income (9,340) (9,340)
Equity investment results 1,694 (256) 1,438
Impairment/restructuring charge 21,013 (21,013) ---
Total costs and expenses 3,311,812 (44,788) 3,267,024
Income (loss) before taxes (21,934) 46,262 24,328
Taxes on income (loss) (8,585) 18,866 10,281
Net income (loss) ($13,349) $27,396 $14,047
% change
Basic and diluted income (loss) per
share:
Basic ($0.35) $0.71 $0.36
Diluted ($0.35) $0.70 $0.35
% change
Weighted average shares outstanding:
Basic 38,576 38,576
Diluted 38,576 40,009
Additional information:
Depreciation $33,483 ($1,917) $31,566
Goodwill amortization $4,772 $4,772
Diluted EPS excluding goodwill
amortization $0.48
% change
Operating earnings $54,873
% change
(A) Adjustments relating to the strategic plan, which was announced in
December 1998, totaled $13.7 million in 2001 compared to
$46.3 million in 2000. Charges include non-cash impairments or
impairment adjustments of asset values and cash restructuring costs
for severance, lease termination, real estate disposition costs for
discontinued operations and other related expenses. The one-time
adjustment for 2001 is an $46.6 million charge from litigation
settlements. There were no one-time adjustments for 2000.
(B) The 2001 amount includes $46,600 of litigation charges.
Fleming Companies, Inc. (NYSE: FLM)
Segment Information For the 12 weeks ended July 14, 2001,
Income (Loss) and July 8, 2000
(In thousands, except per share amounts)
2001
Reported Adjustments Adjusted
Distribution
Gross sales * $3,207,691 $(946) $3,206,745
Intersegment elimination * (262,703) --- (262,703)
Net sales * $2,944,988 $(946) $2,944,042
% change 16.4%
Gross margin $161,958 $1,716 $163,674
% of distribution gross sales 5.10%
Selling and administrative (52,207) 421 (51,786)
% of distribution gross sales -1.61%
Intersegment elimination (9,585) --- (9,585)
Operating earnings $100,166 $2,137 $102,303
% of distribution net sales 3.47%
% change 36.6%
EBITDA $122,202 $8,656 $130,858
% of distribution net sales 4.44%
% change 35.2%
Retail
Net sales $512,291 $(2,042) $510,249
% change -33.0%
Gross margin $106,928 $6,798 $113,726
% of retail sales 22.29%
Selling and administrative (106,068) 4,324 (101,744)
% of retail sales -19.94%
Intersegment profit 9,585 --- 9,585
Operating earnings $10,445 $11,122 $21,567
% of retail sales 4.23%
% change 3.7%
EBITDA $29,442 $3,891 $33,333
% of retail sales 6.53%
% change -13.8%
Support Services
Gross margin $(5,529) $304 $(5,225)
% of total company sales -0.15%
Selling and administrative (A) (99,417) 46,893 (52,524)
% of total company sales -1.52%
Operating earnings $(104,946) $47,197 $(57,749)
% of total company sales -1.67%
EBITDA $(104,897) $47,792 $(57,105)
% of total company sales -1.65%
* Sales of distribution and total company have been restated for
quarters prior to quarter 4, 2000 due to adoption of SAB 101 and
EITF 99-19. Offset is cost of sales; gross margin is not affected.
(A) 2001 reported amount includes $46,600 of litigation charges.
Fleming Companies, Inc. (NYSE: FLM)
Segment Information (Continued) For the 12 weeks ended July 14, 2001,
Income (Loss) and July 8, 2000
(In thousands, except per share amounts)
2000
Reported Adjustments Adjusted
Distribution
Gross sales * $2,922,889 $1,474 $2,924,363
Intersegment elimination * (394,150) --- (394,150)
Net sales * $2,528,739 $1,474 $2,530,213
% change
Gross margin $123,794 $15,413 $139,207
% of distribution gross sales 4.76%
Selling and administrative (48,007) (1,877) (49,884)
% of distribution gross sales -1.71%
Intersegment elimination (14,426) --- (14,426)
Operating earnings $61,361 $13,536 $74,897
% of distribution net sales 2.96%
% change
EBITDA $78,555 $18,236 $96,791
% of distribution net sales 3.83%
% change
Retail
Net sales $761,139 $--- $761,139
% change
Gross margin $175,786 $1,801 $177,587
% of retail sales 23.33%
Selling and administrative (172,805) 1,599 (171,206)
% of retail sales -22.49%
Intersegment profit 14,426 --- 14,426
Operating earnings $17,407 $3,400 $20,807
% of retail sales 2.73%
% change
EBITDA $28,195 $10,455 $38,650
% of retail sales 5.08%
% change
Support Services
Gross margin $(8,326) $5,918 $(2,408)
% of total company sales -0.07%
Selling and administrative (A) (40,562) 2,139 (38,423)
% of total company sales -1.17%
Operating earnings $(48,888) $8,057 $(40,831)
% of total company sales -1.24%
EBITDA $(48,288) $15,398 $(32,890)
% of total company sales -1.00%
* Sales of distribution and total company have been restated for
quarters prior to quarter 4, 2000 due to adoption of SAB 101 and
EITF 99-19. Offset is cost of sales; gross margin is not affected.
(A) 2001 reported amount includes $46,600 of litigation charges.
Fleming Companies, Inc. (NYSE: FLM)
Consolidated Condensed Statements of Operations
For the 28 weeks ended July 14, 2001,
and July 8, 2000
(In thousands, except per share amounts)
2001
Reported Adjustments Adjusted
(A)
Net sales $7,618,470 ($1,327) $7,617,143
% change -0.1%
Costs and expenses:
Cost of sales 6,988,869 (29,662) 6,959,207
Selling and administrative (B) 575,005 (59,694) 515,311
Interest expense 91,937 (2,833) 89,104
Interest income (15,060) 1,102 (13,958)
Equity investment results 72 72
Impairment/restructuring charge (26,976) 26,976 ---
Total costs and expenses 7,613,847 (64,111) 7,549,736
Income (loss) before taxes 4,623 62,784 67,407
Taxes on income (loss) 2,615 25,154 27,769
Income (loss) before extraordinary
charge $2,008 $37,630 $39,638
Extraordinary charge from early
retirement of debt (net of taxes) (3,469) 3,469 ---
Net income (loss) ($1,461) $41,099 $39,638
% change 52.6%
Basic income (loss) per share:
Income (loss) before extraordinary
charge $0.05 $0.90 $0.95
Extraordinary charge from early
retirement of debt (net of taxes) (0.08) 0.08 ---
Net income (loss) ($0.03) $0.98 $0.95
Diluted income (loss) per share:
Income (loss) before extraordinary
charge $0.05 $0.83 $0.88
Extraordinary charge from early
retirement of debt (net of taxes) (0.08) 0.08 ---
Net income (loss) ($0.03) $0.91 $0.88
% change 35.4%
Weighted average shares outstanding:
Basic 41,512 41,512
Diluted 44,077 47,161
Additional information:
Depreciation $76,235 $76,235
Goodwill amortization $11,216 $11,216
Diluted EPS excluding goodwill
amortization $1.08
% change 17.4%
Operating earnings $142,625
% change 18.0%
(A) Adjustments relating to the strategic plan, which was announced in
December 1998, totaled $12.4 million in 2001 compared to
$110.1 million in 2000. Charges include non-cash impairments or
impairment adjustments of asset values and cash restructuring costs
for severance, lease termination, real estate disposition costs for
discontinued operations and other related expenses. The one-time
adjustments for 2001 are $48.6 million in charges from litigation
settlements and net additional interest expense of $1.7 million due
to early retirement of debt. There were no one-time adjustments for
2000.
(B) The 2001 amount includes $48,628 of litigation charges.
Fleming Companies, Inc. (NYSE: FLM)
Consolidated Condensed Statements of Operations (Continued)
For the 28 weeks ended July 14, 2001,
and July 8, 2000
(In thousands, except per share amounts)
2000
Reported Adjustments Adjusted
(A)
Net sales $7,621,376 $1,655 $7,623,031
% change
Costs and expenses:
Cost of sales 6,913,448 (35,331) 6,878,117
Selling and administrative (B) 633,681 (9,667) 624,014
Interest expense 91,548 91,548
Interest income (18,845) (18,845)
Equity investment results 3,585 (284) 3,301
Impairment/restructuring charge 63,158 (63,158) ---
Total costs and expenses 7,686,575 (108,440) 7,578,135
Income (loss) before taxes (65,199) 110,095 44,896
Taxes on income (loss) (25,977) 44,900 18,923
Income (loss) before extraordinary
charge ($39,222) $65,195 $25,973
Extraordinary charge from early
retirement of debt (net of taxes) --- ---
Net income (loss) ($39,222) $65,195 $25,973
% change
Basic income (loss) per share:
Income (loss) before
extraordinary charge ($1.02) $1.69 $0.67
Extraordinary charge from early
retirement of debt (net of taxes) --- ---
Net income (loss) ($1.02) $1.69 $0.67
Diluted income (loss) per share:
Income (loss) before
extraordinary charge ($1.02) $1.67 $0.65
Extraordinary charge from early
retirement of debt (net of taxes) --- ---
Net income (loss) ($1.02) $1.67 $0.65
% change
Weighted average shares outstanding:
Basic 38,541 38,541
Diluted 38,541 39,690
Additional information:
Depreciation $80,931 ($6,312) $74,619
Goodwill amortization $11,073 $11,073
Diluted EPS excluding goodwill
amortization $0.92
% change
Operating earnings $120,900
% change
(A) Adjustments relating to the strategic plan, which was announced in
December 1998, totaled $12.4 million in 2001 compared to
$110.1 million in 2000. Charges include non-cash impairments or
impairment adjustments of asset values and cash restructuring costs
for severance, lease termination, real estate disposition costs for
discontinued operations and other related expenses. The one-time
adjustments for 2001 are $48.6 million in charges from litigation
settlements and net additional interest expense of $1.7 million due
to early retirement of debt. There were no one-time adjustments for
2000.
(B) The 2001 amount includes $48,628 of litigation charges.
Fleming Companies, Inc. (NYSE: FLM)
Segment Information For the 28 weeks ended July 14, 2001,
Income (Loss) and July 8, 2000
(In thousands, except per share amounts)
2001
Reported Adjustments Adjusted
Distribution
Gross sales * $6,950,290 $2,257 $6,952,547
Intersegment elimination * (688,230) --- (688,230)
Net sales * $6,262,060 $2,257 $6,264,317
% change 8.0%
Gross margin $351,809 $5,923 $357,732
% of distribution gross sales 5.15%
Selling and administrative (116,313) 1,398 (114,915)
% of distribution gross sales -1.65%
Intersegment elimination (25,929) --- (25,929)
Operating earnings $209,567 $7,321 $216,888
% of distribution net sales 3.46%
% change 28.4%
EBITDA $263,814 $16,100 $279,914
% of distribution net sales 4.47%
% change 26.7%
Retail
Net sales $1,356,410 $(3,584) $1,352,826
% change -25.8%
Gross margin $293,350 $21,311 $314,661
% of retail sales 23.26%
Selling and administrative (292,526) 8,028 (284,498)
% of retail sales -21.03%
Intersegment profit 25,929 --- 25,929
Operating earnings $26,753 $29,339 $56,092
% of retail sales 4.15%
% change 45.4%
EBITDA $96,310 $(8,657) $87,653
% of retail sales 6.48%
% change 6.9%
Support Services
Gross margin $(15,558) $1,101 $(14,457)
% of total company sales -0.19%
Selling and administrative (A) (166,166) 50,268 (115,898)
% of total company sales -1.52%
Operating earnings $(181,724) $51,369 $(130,355)
% of total company sales -1.71%
EBITDA $(176,648) $52,508 $(124,140)
% of total company sales -1.63%
* Sales of distribution and total company have been restated for
quarters prior to quarter 4, 2000 due to adoption of SAB 101 and
EITF 99-19. Offset is cost of sales; gross margin is not affected.
(A) 2001 reported amount includes $48,628 of litigation charges.
Fleming Companies, Inc. (NYSE: FLM)
For the 28 weeks ended July 14, 2001, and
Segment Information July 8, 2000
Income (Loss) (Continued) (In thousands, except per share amounts)
2000
Reported Adjustments Adjusted
Distribution
Gross sales * $6,765,488 $1,655 $6,767,143
Intersegment elimination * (966,364) --- (966,364)
Net sales * $5,799,124 $1,655 $5,800,779
% change
Gross margin $301,664 $23,627 $325,291
% of distribution gross sales 4.81%
Selling and administrative (122,675) 687 (121,988)
% of distribution gross sales -1.80%
Intersegment elimination (34,394) --- (34,394)
Operating earnings $144,595 $24,314 $168,909
% of distribution net sales 2.91%
% change
EBITDA $168,389 $52,541 $220,930
% of distribution net sales 3.81%
% change
Retail
Net sales $1,822,252 $--- $1,822,252
% change
Gross margin 415,992 $6,569 $422,561
% of retail sales 23.19%
Selling and administrative (420,778) 2,397 (418,381)
% of retail sales -22.96%
Intersegment profit 34,394 --- 34,394
Operating earnings $29,608 $8,966 $38,574
% of retail sales 2.12%
% change
EBITDA $54,952 $27,031 $81,983
% of retail sales 4.50%
% change
Support Services
Gross margin $(9,728) $6,790 $(2,938)
% of total company sales -0.04%
Selling and administrative (A) (90,228) 6,583 (83,645)
% of total company sales -1.10%
Operating earnings $(99,956) $13,373 $(86,583)
% of total company sales -1.14%
EBITDA $(96,003) $23,927 $(72,076)
% of total company sales -0.95%
* Sales of distribution and total company have been restated for
quarters prior to quarter 4, 2000 due to adoption of SAB 101 and
EITF 99-19. Offset is cost of sales; gross margin is not affected.
(A) 2001 reported amount includes $48,628 of litigation charges.
Fleming Companies, Inc. (NYSE: FLM)
Consolidated Condensed Balance Sheet Information
(In thousands)
July 14, December 30, July 8,
2001 2000 2000
Assets
Cash and cash equivalents $14,290 $30,380 $10,022
Receivables, net 582,537 509,045 462,649
Inventory 997,535 831,265 860,514
Other current assets 134,829 252,383 193,501
Total current assets 1,729,191 1,623,073 1,526,686
Property and equipment, net 726,976 716,457 837,510
Other assets 1,090,173 1,063,281 935,757
Total assets $3,546,340 $3,402,811 $3,299,953
Liabilities and shareholders' equity
Accounts payable $1,015,396 $943,279 $791,622
Other current liabilities 297,102 289,109 289,555
Total current liabilities 1,312,498 1,232,388 1,081,177
Long-term debt and capital lease
obligations 1,632,639 1,609,639 1,570,119
Other liabilities 115,426 133,592 123,437
Shareholders' equity 485,777 427,192 525,220
Total liabilities and
shareholders' equity $3,546,340 $3,402,811 $3,299,953
Additional Information
Adjusted EBITDA to interest expense (LTM) 2.72 x 2.61 x 2.57 x
Total debt as a percentage of total
capitalization 77.7% 79.6% 76.0%
Capital expenditures (YTD) $111,619 $150,837 $62,431
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
 back to top
Related links:
http://www.fleming.com
CONTACT:
media, Shane Boyd, +1-972-906-8824, or Randy
Hatcher, +1-972-906-8823, or investors-equity, Meredith Anderson,
+1-972-906-8592, or investors-debt, Matt Hildreth,
+1-972-906-8126, all of Fleming
|
