-----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, PvrCcjNlM/fTFmo2p5/mlq8Yf2pghoIuuZMfh+aekZgASwtdt+4lBGO7ERLqBHO7 21vE7tN5y9WPASRGqisFwg== 0000003333-03-000050.txt : 20030905 0000003333-03-000050.hdr.sgml : 20030905 20030904174602 ACCESSION NUMBER: 0000003333-03-000050 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030731 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030905 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: 03882215 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 abs8k2q2003txt.txt QUARTER END 7-31-03 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): September 4, 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 12. Results of Operations and Financial Condition On September 4, 2003, the Company released its sales and earnings for the second 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. /S/ Felicia D. Thornton BY: Felicia D. Thornton Executive Vice President and Chief Financial Officer Date: September 4, 2003 ------------------------------ Exhibit Index Exhibit (99.1): Press Release dated September 4, 2003 EX-99.1 3 abs8k2q2003newsreleasetxt.txt EARNINGS RELEASE 7-31-03 EXHIBIT 99.1 September 4, 2003 FOR IMMEDIATE RELEASE Contacts: Media Ertharin Cousin 208-395-6392 Analysts Nick Kormeluk 208-395-6622 ALBERTSONS ANNOUNCES 2Q RESULTS -Earnings exceed First Call Consensus of Industry Analysts -Total Year Guidance Reaffirmed -Comp Store Sales Running Positive in Early 3Q BOISE, Idaho, September 4, 2003 - Albertsons, Inc. (NYSE: ABS), one of the world's largest food and drug retailers, today announced earnings per diluted share of $0.44 for the second quarter of Fiscal 2003, exceeding the First Call Consensus of Industry Analysts. Net earnings for the thirteen week period totaled $162 million, compared to $257 million or $0.63 per diluted share during the same quarter last year. The Company also reported that sales grew $112 million during quarter reaching $9.053 billion, versus last year's second quarter sales of $8.941 billion. Comparable store sales declined 0.9 percent and identical store sales declined 1.3 percent. Larry Johnston, Chairman & CEO, commented on the results. "The economic and competitive environment remained difficult during the second quarter, however we were encouraged that we were able to successfully grow our share position versus our traditional competitors as well as exceed Wall Street expectations. We are also pleased to be able to reaffirm our previously stated earnings guidance of $1.70-$1.75 per share for fiscal year 2003. Although our second quarter comp store sales were slightly negative, we are very encouraged to see that our new pricing and promotional programs which were developed and rolled out during 2Q are beginning to gain traction. Our 3Q sales velocity reflects this as our comp store sales for the first four weeks of the quarter have been positive." Total gross profit rose $25 million to $2.656 billion coming in at 29.34 percent of sales, slightly lower than the 29.43 percent generated in the same period last year. The Company attributed the margin rate decline during the period to its strategic investments in targeted sales promotions which offset margin improvements achieved by increased corporate brand penetration, higher generic drug sales and the first wave of savings generated by the Company's new strategic sourcing and supply chain initiatives. -MORE- During the quarter, selling, general and administrative expenses totaled 25.35 percent of sales versus 24.02 percent in the second quarter of 2002, largely driven by increased benefit costs across the country and higher worker's compensation costs, particularly in California. The Company confirmed that a previously announced goal to reduce $750 million from selling, general and administrative expenses by year-end 2004 remains on track. Johnston commented, saying, "We are pleased to confirm that our $750 million expense reduction program is successfully on track. Yet, given the heightened competitive environment we are experiencing, it is clear we must be even more diligent in all areas of our cost structure in order to reengineer the Company for maximum efficiency. ACT 1 of the Albertsons restructuring plan has been well executed by our teams over the past 30 months. Now all assets, markets, processes and organization structures will be put through an even more rigorous screen than we have utilized over the past 2 1/2 years." During the second quarter of 2003, Albertsons also continued its aggressive investment in technology, purchasing approximately 4,000 self-checkout lanes, completing the construction of one of the world's largest real-time data warehouses and installing a new labor management system in four divisions. Over the course of the quarter, the Company paid an overall dividend yield of 3.8%, opened 22 new stores, and also continued its strategy to upgrade the existing store base by remodeling 56 units during the period. Johnston concluded, "Participants in the retail food and drug store industries continue to wage an increasingly fierce, competitive battle for customers and market share. We must keep looking for new ways every day to grow sales and drive higher levels of efficiency. Albertsons is committed to take out unnecessary costs and remove more underperforming assets from our system... while also investing in and growing the parts of our Company that support our strategic development plans." 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 employees and operates approximately 2,300 retail stores in 31 states across the United States, under banners including Albertsons, Jewel-Osco, Acme, Albertsons-Osco, Albertsons-Sav-on, Sav-on Drugs, Osco Drug, 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) Condensed Consolidated Earnings Statements
13 Weeks Ended 13 Weeks Ended 26 Weeks Ended 26 Weeks Ended July 31, 2003 August 1, 2002 July 31,2003 August 1, 2002 - ------------------------------------------------------------------------------------------------------------------------------------ Sales $9,053 100.00% $8,941 100.00% $17,993 100.00% $17,862 100.00% Cost of sales 6,397 70.66 6,310 70.57 12,784 71.05 12,608 70.59 - ------------------------------------------------------------------------------------------------------------------------------------ Gross profit 2,656 29.34 2,631 29.43 5,209 28.95 5,254 29.41 Selling, general and administrative expenses 2,295 25.35 2,148 24.02 4,474 24.86 4,269 23.90 Restructuring credits and other (8) (0.09) (37) (0.41) (15) (0.08) (22) (0.12) - ------------------------------------------------------------------------------------------------------------------------------------ Operating profit 369 4.08 520 5.82 750 4.17 1,007 5.63 Other (expense) income: Interest, net (105) (1.16) (103) (1.15) (208) (1.16) (208) (1.16) Other, net - - (14) (0.16) 1 0.01 (17) (0.09) - ------------------------------------------------------------------------------------------------------------------------------------ Earnings from continuing operations before income taxes 264 2.92 403 4.51 543 3.02 782 4.38 Income tax expense 102 1.13 160 1.79 209 1.16 307 1.72 - ------------------------------------------------------------------------------------------------------------------------------------ Earnings from continuing operations 162 1.79 243 2.72 334 1.86 475 2.66 Discontinued operations: Operating loss - - (17) (0.19) - - (467) (2.61) Gain on Disposal 37 0.41 33 0.18 Income tax expense (benefit) - - 6 0.07 - - (145) (0.81) - ------------------------------------------------------------------------------------------------------------------------------------ Earnings (loss) from discontinued operations - - 14 0.15 - - (289) (1.62) - ------------------------------------------------------------------------------------------------------------------------------------ Earnings before cumulative effect of change in 162 1.79 257 2.87 334 1.86 186 1.04 accounting principle Cumulative effect of change in accounting principle - - - - - - (94) (0.52) (net of tax of $60) - ------------------------------------------------------------------------------------------------------------------------------------ Net Earnings $162 1.79% $257 2.87% $334 1.86% $92 0.52% - ------------------------------------------------------------------------------------------------------------------------------------ Earnings (Loss) Per Share: Basic Continuing operations $0.44 $0.60 $0.90 $1.17 Discontinued operations - 0.03 - (0.71) Cumulative effect of change in accounting principle - - - (0.23) (net of tax of $0.15) ------ ----- ------ ------ Net Earnings $0.44 $0.63 $0.90 $0.23 ===== ===== ===== ===== Diluted Continuing operations $0.44 $0.60 $0.90 $1.16 Discontinued operations - 0.03 - (0.71) Cumulative effect of change in accounting principle - - - (0.22) (net of tax of $0.15) ------ ----- ----- ------ Net Earnings $0.44 $0.63 $0.90 $0.23 ===== ===== ===== ===== Weighted Average Common Shares Outstanding: Basic 368 407 371 407 Diluted 368 409 371 409
ALBERTSONS, INC. (Unaudited - In millions) Condensed Consolidated Balance Sheet Data Condensed Consolidated Cash Flow Data
26 WeeksEnded 26 Weeks Ended July 31,2003 August 1, 2002 July 31, 2003 August 1,2002 - ------------------------------------------------------------- -------------------------------------------------------------------- Assets Cash Flows From Operating Activities: Current Assets: Net earnings $ 334 $ 92 Cash and cash equivalents $ 123 $ 80 Adjustments to reconcile net earnings to net Inventories 2974 2863 cash provided by operating activities: Assets held for sale 104 221 Depreciation and amortization 478 496 Other current assets 908 955 Discontinued operations noncash - 356 charges - ------------------------------------------------------------------------------------------------------------------------------------ Total Current Assets 4,109 4,832 Cumulative effect of change in accounting Other assets 297 331 principle - 94 Goodwill and intangibles, net 1,606 1,590 Net deferred income taxes and other 23 32 Land, buildings and equipment, net 9,147 8,815 Changes in operating assets and 42 148 liabilities - ------------------------------------------------------------------------------------------------------------------------------------ Total Assets $ 15,159 $ 15,568 Net cash provided by operating 877 1,218 activities ============================== ================================================================== Cash Flows From Investing Activities: Liabilities and Stockholders' Equity Capital expenditures (643) (683) Current Liabilities: Proceeds from disposal of land, Accounts payable $ 1,941 $ 2,042 buildings and equipment 29 78 Current portions of long-term debt and Proceeds from disposal of assets 62 430 capital lease obligations 215 143 held for sale Other (5) 21 Other current liabilities 1,285 1,223 Net cash used in investing activities (557) (154) - -------------------------------------------------------------- ---------------------------------------------------------------- Total Current Liabilities 3,441 3,408 Cash Flows From Financing Activities: Long-term debt 4,750 4,954 Cash dividends paid (141) (155) Capital lease obligations 307 285 Payments on long-term borrowings (110) (107) Other long-term liabilities Stock purchases and retirements (108) (75) and deferred credits 1,365 1,117 Proceeds from stock options exercised - 15 ---------------------------------------------------------------- Stockholders' equity 5,296 5,804 Net cash used in financing activities (359) (322) - -------------------------------------------------------------- ---------------------------------------------------------------- Total Liabilities and Stockholders' Equity $ 15,159 $ 15,568 Net (Decrease) Increase in Cash =============================== and Cash Equivalents (39) 742 Cash and Cash Equivalents at Beginning of Period 162 61 ================================================================ Cash and Cash Equivalents at End of Period $ 123 $ 803 ============================= Total Common Shares Outstanding at End of Period 367 404
-----END PRIVACY-ENHANCED MESSAGE-----