KROGER 1QTR OP EARNINGS PER SHARE:
46 CENTS VS. 29 CENTS
CINCINNATI, Ohio, April 19, 1994 --- The Kroger Co. said
today that 1994 first quarter earnings before an extraordinary
item increased to $55.7 million, or 46 cents per share on a fully
diluted basis, from $29.5 million, or 29 cents per share fully
diluted, in the 1993 first quarter. The prior year's earnings
were before an extraordinary item and the cumulative effect of a
change in accounting.
After an extraordinary item of $8.3 million from the early
retirement of debt, Kroger's 1994 first quarter net earnings were
$47.4 million, or 40 cents per fully diluted share, compared with
a loss of $138.8 million in the 1993 first quarter. Last year's
first quarter included a $159.2 million after-tax charge from the
adoption of FASB 106.
First quarter operating cash flow -- earnings before interest
expense, taxes, depreciation, and LIFO -- increased 8.9 percent
to $237.5 million from $218.1 million.
Sales in the first quarter rose 3 percent to $5.33 billion
from $5.17 billion. Identical food store sales improved 2.3
percent, spurred in part by weather-related factors.
Total sales and earnings were enhanced by the fact that
Easter fell in the 1994 first quarter for Dillon Companies. Last
year, Easter was a week later and fell in the second quarter for
both Kroger and Dillon.
Kroger Chairman and Chief Executive Officer Joseph A. Pichler
said the Company was pleased with first quarter results, which
followed a strong performance in 1993's fourth quarter.
"The extraordinarily bad weather in the early weeks of 1994
was a boon to sales," Pichler said. "The significance of
Kroger's first quarter is that this increased business translated
into strong bottom-line results for the Company." Pichler added
that sales of Kroger store brands continued to outpace overall
sales growth.
Pichler cautioned that competitive pressures would increase
through the remainder of 1994 as supercenters and other low-cost
operators open in Kroger markets. He noted that by year-end,
approximately 12 percent of Kroger's total sales base is expected
to be in direct competition with supercenters operated by Wal-
Mart and Kmart, compared to 4 percent at year-end 1993.
Interest expense in the first quarter declined to $76 million
from $97 million in the year earlier first quarter. Long term
debt at the end of the quarter was $4.1 billion, a decrease of
$207.2 million from 1993's first quarter.
During the quarter, Kroger opened and expanded 16 food
stores, and purchased 11 stores, including 10 in Houston from
AppleTree Markets, Inc.
1st Qtr 1st Qtr Percent
1994 1993 Change
3/26/94 3/27/93
Sales $5,328,803,907 $5,173,925,708 3.0
============== ============== ====
EBITD (1) $ 237,547,843 $ 218,067,738 8.9
Non-EBITD
charges(3) $ (4,500,000) $ (4,500,000)
LIFO $ (3,500,000) $ (4,000,000)
Interest $ (76,031,488) $ (96,989,133)
Depreciation
$ (62,310,169) $ (62,976,319)
_______________ _______________
Pre-tax earnings
before extraordinary item
$ 91,206,186 $ 49,602,286
Tax expense
$ (35,516,374) $ (20,138,528)
______________ ______________
Earnings before
extraordinary item
$ 55,689,812 $ 29,463,758
Extraordinary
item (2) $ (8,332,078) $ (9,041,908)
Cumulative effect of change in
accounting (4)
NA $ (159,192,961)
_______________ ________________
Net earnings
(loss) $ 47,357,734 $ (138,771,111)
=============== ===============
Primary earnings (loss)
per common share:
From operations
$0.50 $0.30
From extraordinary
item (2) ($0.07) ($0.09)
From cumulative effect
of change in
accounting (4) NA ($1.63)
_______________ ________________
Primary net earnings
(loss) per common
share $0.43 ($1.42)
=============== ================
Fully-diluted earnings (loss)
per common share:
From operations $0.46 $0.29
From extraordinary
item (2) ($0.06) ($0.08)
From cumulative effect
of change in
accounting (4) NA ($1.38)
_______________ _______________
Fully-diluted net earnings
(loss) per common
share $0.40 ($1.17)
================ ================
Number of shares used in
primary per share
calculation 111,923,229 97,765,137
Number of shares used in
fully-diluted per share
calculation
129,654,351 115,334,138
(1) EBITD represents pre-tax earnings before interest,
depreciation, LIFO and extraordinary items.
(2) Represents the after-tax loss from the early retirement of
debt.
(3) FASB 106 (retiree health care) quarterly expense.
(4) Represents the cumulative effect adjustment from the
adoption of FASB 106 (retiree health care).