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EXHIBIT 99.3 - HANNAFORD BROS. CO. FINANCIAL STATEMENTS
The following unaudited financial statements of Hannaford Bros. Co. consist of a
consolidated balance sheet as of July 1, 2000, a consolidated statement of
earnings for the six month period ended July 1, 2000 and the six month period
ended July 3, 1999, a consolidated statement of earnings for the three month
periods ended July 1, 2000 and July 3, 1999 and consolidated statements of cash
flows for the six month periods ended July 1, 2000 and July 3, 1999.
The Company does not include footnote disclosures as it believes that this would
substantially duplicate the disclosures contained in the most recent audited
annual report for the fiscal period ended January 1, 2000.
Unaudited Consolidated Statement of Earnings of Hannaford Bros. Co.
(Dollars in thousands, except per share data)
(UNAUDITED) (UNAUDITED)
6 Months Ended 6 Months Ended
July 1, 2000 July 3, 1999
Net sales $ 1,733,472 $ 1,693,449
Cost of goods sold $ 1,277,064 $ 1,249,509
Selling and administrative expenses $ 470,293 $ 358,470
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Operating Income (loss) $ (13,885) $ 85,470
Interest expense, net $ 9,258 $ 12,045
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Income (loss) before income taxes $ (23,143) $ 73,425
Provision for income taxes $ (8,404) $ 28,021
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Net income (loss) $ (14,739) $ 45,404
Earnings per share:
Basic $ (0.34) $ 1.08
Diluted $ (0.34) $ 1.06
Cash dividends $ 0.33 $ 0.33
Weighted average number of common
shares outstanding
Basic 42,992 42,223
Diluted 43,726 42,865
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Unaudited Consolidated Statement of Earnings of Hannaford Bros. Co.
(Dollars in thousands, except per share data)
(UNAUDITED) (UNAUDITED)
3 Months Ended 3 Months Ended
July 1, 2000 July 3, 1999
Net sales $ 886,626 $ 854,325
Cost of goods sold $ 655,468 $ 628,109
Selling and administrative expenses $ 286,890 $ 179,222
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Operating Income (loss) $ (55,732) $ 46,994
Interest expense, net $ 4,011 $ 5,780
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Income (loss) before income taxes $ (59,743) $ 41,214
Provision for income taxes $ (22,451) $ 15,800
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Net income (loss) $ (37,292) $ 25,414
Earnings per share:
Basic $ (0.86) $ 0.60
Diluted $ (0.85) $ 0.59
Cash dividends $ 0.165 $ 0.165
Weighted average number of common
shares outstanding
Basic 43,434 42,208
Diluted 43,980 42,868
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Unaudited Consolidated Balance Sheet of Hannaford Bros. Co.
(Dollars in thousands)
(UNAUDITED) (UNAUDITED)
July 1, 2000 January 1, 2000
Current Assets
Cash and cash equivalents $ 130,463 $ 53,641
Receivables $ 26,694 $ 26,633
Inventories $ 197,278 $ 230,416
Prepaid expenses $ 4,705 $ 5,817
Deferred tax asset $ 14,492 $ 10,325
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Total current assets $ 373,632 $ 326,832
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Property, at cost, less accumulated depreciation $ 845,305 $ 892,871
Intangible assets, less accumulated amortization $ 50,088 $ 58,154
Other assets $ 72,978 $ 52,133
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Total assets $ 1,342,003 $ 1,329,990
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Liabilities and Shareholders' Equity
Current Liabilities
Short term borrowings $ 20,651 $ 20,391
Accounts payable $ 206,061 $ 187,344
Accrued expenses $ 45,833 $ 61,801
Capital lease obligations - current $ 2,430 $ 2,462
Long term debt - current $ -- $ --
Other liabilities - current $ 141 $ 1,256
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Total current liabilities $ 275,115 $ 273,254
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Long-term debt $ 156,380 $ 185,126
Capital lease obligations $ 59,107 $ 71,464
Deferred income tax liabilities $ (1,016) $ 32,676
Other liabilities $ 84,951 $ 40,282
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Total liabilities $ 574,538 $ 602,802
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Shareholders' equity
Common stock, par value $.75 per share $ 32,819 $ 31,754
Additional paid-in-capital $ 167,747 $ 103,085
Preferred stock purchase rights $ 438 $ 423
Retained earnings $ 566,461 $ 595,478
Less common stock in treasury - 0 and 68 shares $ -- $ (3,552)
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Total shareholders' equity $ 767,465 $ 727,188
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Total liabilities and shareholders' equity $ 1,342,003 $ 1,329,990
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Unaudited Consolidated Statements of Cash Flows of Hannaford Bros. Co.
(Dollars in thousands)
(UNAUDITED)
6 Months Ended 6 Months Ended
July 1, 2000 July 3, 1999
Cash flows from operating activities :
Net Loss $ (14,739) $ 45,404
Adjustments to reconcile net income to net
cash provided by operating activities:
Closed store expenses $ 100,121 $ --
Depreciation and amortization $ 50,531 $ 51,182
Decrease (increase) in inventories $ 29,872 $ (7,711)
Decrease in receivables/prepayments $ 842 $ 3,846
Decrease (increase) in accounts payable
and accrued expenses $ (3,564) $ 14,981
Decrease (increase) in income taxes payable $ (1,174) $ 1,985
Decrease (increase) in deferred taxes $ (37,363) $ (1,234)
Other operating activities $ 2,900 $ (417)
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Net cash provided by operating activities $ 127,426 $ 108,036
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Cash flows from investing activities :
Acquisition of property, plant and equipment $ (66,705) $ (54,927)
Sale of property, plant and equipment, net $ 8,536 $ 6,441
Increase in deferred charges $ (3,333) $ (1,249)
Increase in computer software costs $ (2,702) $ (3,928)
Purchase of Securities (available for sale) $ (7,765) $ --
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Net cash used in investing activities $ (71,969) $ (53,663)
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Cash flows from financing activities :
Principal payments under capital
lease obligations $ (1,198) $ (981)
Proceeds from issuance of long-term debt
Decrease in lines of credit $ (19,700) $ --
Payments of long-term debt $ (8,787) $ (34,690)
Dividends paid $ (14,265) $ (13,945)
Purchase of treasury stock $ (553) $ (19,912)
Issuance of treasury stock $ 2,530
Issuance of common stock $ 63,338 $ 8,630
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Net cash provided by financing activities $ 21,365 $ (60,898)
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Net increase in cash and cash equivalents $ 76,822 $ (6,525)
Cash and cash equivalents at beginning of period $ 53,641 $ 59,722
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Cash and cash equivalents at end of period $ 130,463 $ 53,197
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