-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CFTXLHDsQa7bGkrhhhCQUCr2hknnXU9S/JLwKzvWL8indpbq7NCWolMjJYsPaj5l d739vUq5NsWLzUNbl1WBVA== 0000003333-03-000017.txt : 20030605 0000003333-03-000017.hdr.sgml : 20030605 20030605101424 ACCESSION NUMBER: 0000003333-03-000017 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030501 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030605 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALBERTSONS INC /DE/ CENTRAL INDEX KEY: 0000003333 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-GROCERY STORES [5411] IRS NUMBER: 820184434 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06187 FILM NUMBER: 03733392 BUSINESS ADDRESS: STREET 1: 250 PARKCENTER BLVD STREET 2: P O BOX 20 CITY: BOISE STATE: ID ZIP: 83726 BUSINESS PHONE: 2083956200 MAIL ADDRESS: STREET 1: 250 PARKCENTER BLVD STREET 2: P O BOX 20 CITY: BOISE STATE: ID ZIP: 83726 8-K 1 abs8k12003sifhelptxt.txt EARNINGS RELEASE FOR QUARTER ENDED MAY 1, 2003 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): June 5, 2003 _____________________ ALBERTSON'S, INC. (Exact name of registrant as specified in its charter) Delaware 1-6187 82-0184434 ___________________ ___________________ ___________________ (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 250 Parkcenter Blvd., P.O. Box 20, Boise, Idaho 83726 ________________________________________________ Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (208) 395-6200 _______________________________________________________________ Item 9. Regulation FD Disclosure The information contained in this section is intended to be included under "Item 12. Disclosure of Results of Operations and Financial Condition" and is included under Item 9 in accordance with Securities and Exchange Commission Release No. 33-8216. On June 5, 2003, the Company released its quarterly results for the first quarter of 2003. The text of that release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The press release should be read together with the information contained in the reports that we file with the Securities and Exchange Commission, including the financial statements and related notes contained in those reports. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ALBERTSON'S, INC. BY: /s/ Felicia D. Thornton --------------------------------- Felicia D. Thornton Executive Vice President and Chief Financial Officer Date: June 5, 2003 ____________________________________________________________________________ Exhibit Index Exhibit (99.1): Press Release dated June 5, 2003 EX-99 3 abs8k12003helptxt.txt EARNINGS RELEASE FOR QUARTER ENDED MAY 1, 2003 Exhibit 99.1 June 5, 2003 Contacts: Media Ertharin Cousin 208-395-5392 Analysts Nick Kormeluk 208-395-6622 Albertsons Announces Quarterly Results BOISE, Idaho- Albertsons, Inc., (NYSE:ABS) reported first quarter results today for the period ended May 1, 2003. Net Earnings totaled $172 million, $337 million higher than the $165 million loss recorded during last year's first quarter. Earnings totaled $0.47 per diluted share versus last year's first quarter loss of $ (0.40) per share on the same basis. Sales for the quarter reached $8.940 billion, up from $8.921 billion recorded during last year's first quarter. Gross profit was 28.6% of sales, versus 29.4% achieved last year, reflecting the Company's previously stated strategy to invest gross margin to drive competitiveness. Comparable store sales declined (0.9) % while identical store sales declined (1.2) %. Larry Johnston, chairman & CEO, commented on the results. "The first quarter yielded a much tougher than expected economic and competitive climate. Even as the war ended we saw no improvement. Although sales were much tougher to come by as the quarter progressed, both our food and drug teams promoted aggressively and were successful in protecting our market share." During the quarter, the Company recorded several marketing highlights: |X| Patricia Heaton, two-time Emmy award winning co-star of "Everybody Loves Raymond" was signed as the Company's new spokesperson. Television spots featuring Ms. Heaton and the Company's new branding theme, "Working Hard to Make Life Easier," will begin airing in late June 2003. |X| Sav-On Drug was rated the #1 Drug Store Brand in America by Chain Store Age Magazine |X| "Essensia" was introduced as the Company's new premium private label brand. 58 new items were introduced to drive the launch. Peter Lynch, president & chief operating officer, commented on the quarter, "Customer service levels, price competitiveness, and private label penetration all improved during the quarter. These are extremely positive indicators that show our Company and our brands are becoming stronger even during a tougher than expected environment." During the quarter, the Company paid a dividend of $70 million to shareowners, an effective yield of 3.5%. In addition, 5.3 million shares of stock were repurchased, returning $108 million to shareowners. The Company also opened 32 new food and drug stores during the quarter and closed 22, and completed remodels on 45 stores. Progress also continued against the Company's goal to eliminate $750 million in cost by year end 2004. First quarter cumulative savings reached $482 million against the $500 million cost-out milestone targeted for mid-year 2003. Savings in a myriad of areas were strong, but still not enough to offset increases in occupancy, employee benefits, and workers -MORE- compensation. Selling, General & Administrative expenses reached $2.18 billion during the quarter, or 24.4% of sales versus 23.8% during last year's first quarter. Larry Johnston commented on the outlook for the year. "Worsening economic conditions, a more cautious consumer and an intensifying competitive environment are making 2003 even more difficult than we had originally anticipated. In this environment, we must be more determined than ever to take the steps necessary to defend share, drive sales and attract customers. We believe these near-term investments will ensure our longer-term competitiveness. Consequently, we now expect earnings per share of $1.70 to $1.75 for the total year." Albertsons is one of the world's largest food and drug retailers with annual revenues of approximately $36 billion. Based in Boise, Idaho, the Company employs more than 200,000 associates and operates approximately 2,300 retail stores across the United States, under banners including Albertsons, Jewel-Osco, Acme, Sav-on Drugs, Osco Drug, Albertsons-Osco, Albertsons-Sav-on, Max Foods and Super Saver. *** Certain statements contained in this press release, including statements regarding the Company's expected financial performance, are forward-looking information as defined in the Private Securities Litigation Reform Act of 1995. In reviewing such information about the future performance of the Company, it should be kept in mind that actual results may differ materially from those projected or suggested in such forward-looking information. These statements relate to, among other things: projected sales and earnings per share; investing to increase sales; changes in cash flow; increases in insurance and employee benefit costs; attainment of cost reduction goals; achieving sales increases and increases in identical sales; opening and remodeling stores; and our five strategic imperatives; and are indicated by words or phrases such as "expects," "plans," "believes," "ensure," and "expect." In reviewing such information about the future performance of the Company, it should be kept in mind that actual results may differ materially from those projected or suggested in such forward-looking information. Important assumptions and other important factors that could cause actual results to differ materially from those set forth in the forward-looking information include changes in the general economy; changes in interest rates; changes in consumer spending; actions taken by new or existing competitors (including nontraditional competitors), particularly those intended to improve their market share (such as pricing and promotional activities); and other factors affecting the Company's business in or beyond the Company's control. These factors include changes in the rate of inflation; changes in state or federal legislation or regulation; adverse determinations with respect to litigation or other claims (including environmental matters); labor negotiations; the cost and stability of energy sources; the Company's ability to recruit, retain and develop employees; the Company's ability to develop new stores or complete remodels as rapidly as planned; the Company's ability to implement new technology successfully; stability of product costs; the Company's ability to integrate the operations of acquired or merged companies; the Company's ability to execute its restructuring plans; and the Company's ability to achieve its five strategic imperatives. Other factors and assumptions not identified above could also cause the actual results to differ materially from those set forth in the forward-looking information. The Company does not undertake to update forward-looking information contained herein or elsewhere to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking information. Please refer to our reports and filings with the Securities and Exchange Commission for a further discussion of these risks and uncertainties. ### ALBERTSONS, INC. (Unaudited - In millions, except per share data) Consolidated Earnings Statements 13 Weeks Ended 13 Weeks Ended May 1, 2003 May 2, 2002 - ----------------------------------------------------------------------------------------------------------------------------------- Sales $ 8,940 100.00% $8,921 100.00% Cost of sales 6,387 71.44 6,298 70.60 - ----------------------------------------------------------------------------------------------------------------------------------- Gross profit 2,553 28.56 2,623 29.40 Selling, general and administrative expenses 2,179 24.38 2,121 23.78 Restructuring (credits) charges and other (7) (0.08) 15 0.17 - ----------------------------------------------------------------------------------------------------------------------------------- Operating profit 381 4.26 487 5.45 Other (expense) income: Interest, net (103) (1.15) (105) (1.18) Other, net 1 0.01 (3) (0.03) - ----------------------------------------------------------------------------------------------------------------------------------- Earnings from continuing operations before income taxes 279 3.12 379 4.24 Income tax expense 107 1.20 147 1.66 - ----------------------------------------------------------------------------------------------------------------------------------- Earnings from continuing operations 172 1.92 232 2.58 Discontinued operations: Operating loss - - (454) (5.09) Income tax benefit - - (151) (1.70) - ----------------------------------------------------------------------------------------------------------------------------------- Loss from discontinued operations - - (303) (3.39) - ----------------------------------------------------------------------------------------------------------------------------------- Earnings (loss) before cumulative effect of change in accounting principle 172 1.92 (71) (0.81) Cumulative effect of change in accounting principle (net of tax of $60) - - (94) (1.05) - ----------------------------------------------------------------------------------------------------------------------------------- Net Earnings (Loss) $ 172 1.92% $ (165) (1.86)% - ----------------------------------------------------------------------------------------------------------------------------------- Earnings (Loss) Per Share: Basic Continuing operations $ 0.47 $ 0.57 Discontinued operations - (0.74) Cumulative effect of change in accounting principle (net of tax of $0.15) - (0.24) ---------- ------------ Net Earnings (Loss) 0.47 (0.41) ---------- ------------ Diluted Continuing operations $ 0.47 $ 0.57 Discontinued operations - (0.74) Cumulative effect of change in accounting principle (net of tax of $0.15) - (0.23) ----------- ------------ Net Earnings (Loss) $ 0.47 $ (0.40) ----------- ------------ Weighted Average Common Shares Outstanding: Basic 368 407 Diluted 369 409 o Certain reclassifications have been made in the prior year to conform to classifications used in the current year. ALBERTSONS, INC. (Unaudited - In millions) Consolidated Balance Sheets Consolidated Cash Flow Statements 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended May 1, 2003 May 2, 2002 May 1, 2003 May 2, 2002 - ------------------------------------------------------------------------------------------------------------------------------------ Assets Cash Flows From Current Assets: Operating Activities: Cash and cash equivalents $ 107 $ 367 Net earnings (loss) $ 172 $ (165) Inventories 2,944 2,804 Adjustments to reconcile net Asets held for sale 124 571 earnings to net cash provided by Other current assets 925 1,102 operating activities: - ----------------------------------------------------------- Depreciation and amortization 239 251 Total Current Assets 4,100 4,844 Discontinued operations noncash charges - 401 Other Assets 307 366 Cumulative effect of change in Goodwill and accounting principle 94 Other Intangibles, net 1,611 1,601 Net (gain) loss on asset sales (6) 9 Land, Buildings and Net deferred income taxes Equipment, net 9,086 8,676 and other 14 (82) - ----------------------------------------------------------------------------- Total Assets $ 15,104 $ 15,487 Changes in operating ------------------------------- assets and liabilities (38) 123 ----------------------------------------------------------- Net cash provided by operating activities 381 631 ----------------------------------------------------------- Liabilities and Stockholders' Equity Cash Flows From Current Liabilities: Investing Activities: Accounts payable $ 1,945 $ 1,960 Capital Expenditures (354) (288) Current portions of long-term Proceeds from disposal of land, debt and capitalized lease buildings, and equipment 35 42 obligations 167 48 Proceeds from disposal of assets held for sale 31 69 Other current liabilities 1,219 1,327 Other (10) 14 - ---------------------------------------------------------- ----------------------------------------------------------- Total Current Liabilities 3,331 3,335 Net cash used in investing activities (298) (163) ----------------------------------------------------------- Long-Term Debt 4,950 5,057 Cash Flows From Capitalized Lease Obligations 302 281 Financing Activities: Other Long-Term Liabilities Stock purchases and Deferred Credits 1,324 1,125 and retirements (108) - Stockholders' Equity 5,197 5,689 Cash dividends paid (71) (77) - ---------------------------------------------------------- Net commercial paper 50 - Total Liabilities and Payments on long-term Stockholders' Equity $ 15,104 $ 15,487 borrowings (9) (95) --------- --------- Proceeds from stock options exercised - 10 ----------------------------------------------------------- Net cash used in financing activities (138) (162) ----------------------------------------------------------- Net (Decrease) Increase in Cash and Cash Equivalents (55) 306 Cash and Cash Equivalents at Beginning of Period 162 61 Total Common Shares ----------------------------------------------------------- Outstanding at End of Period 367 407 Cash and Cash Equivalents at End of Period $ 107 $ 367 ---------- ----------
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