LOS ANGELES, Aug. 7, 2013 (GLOBE NEWSWIRE) -- Unified Grocers, Inc. ("Unified" or the "Company"), the largest wholesale grocery distributor in the western United States, announced results for the 13 weeks ended June 29, 2013 (the Company's third fiscal quarter). The Los Angeles-based cooperative reported a net loss of $11.3 million for the quarter, compared to earnings of $1.2 million for the third quarter 2012. Losses before patronage dividends and income taxes were $14.6 million for the quarter, compared to earnings of $6.2 million for the same period in 2012.
Several items contributed to the losses, including a charge related to the previously announced early extinguishment of senior secured notes ($9.8 million) as part of a refinancing of the Company's debt. The refinancing provides greater flexibility in day-to-day operations and lowers ongoing borrowing costs. The Company also enhanced workers' compensation reserves to address increased claims exposure ($5.5 million) at its insurance subsidiary and incurred additional lease reserves and equipment disposal costs ($2 million). As a result, year-to-date results for the period ended June 29, 2013, show a net loss of $15.9 million compared to net income of $3.3 million in the 2012 period.
"We are a company in transition," said Bob Ling, president and chief executive officer, Unified Grocers. "The debt refinancing in the third quarter positions the Company for growth in fiscal year 2014 and beyond. We are financially sound, we have a solid foundation on which to build and we have a dynamic leadership team in place. We're seeing improving sales trends and continue to execute on a number of initiatives to achieve our long-term strategy to improve sales and profits for Unified and our owners. The outlook is very positive."
Founded in 1922, Unified Grocers is a retailer-owned wholesale grocery distributor that supplies independent retailers throughout the western United States. Unified and its subsidiaries, which generated approximately $3.8 billion in sales during fiscal year 2012, offer independent retailers all the resources they need to compete in the supermarket industry.
Safe Harbor Statement
This press release contains forward-looking statements about the future performance of Unified Grocers based on Management's assumptions and beliefs in light of information currently available to it. There are a variety of factors that could cause actual and future results to differ materially from those anticipated by the statements made above. These factors are outlined in the Company's Form 10-K and other interim reports filed with the Securities and Exchange Commission. Furthermore, Unified undertakes no obligation to update, amend or clarify forward-looking statements whether as a result of new information, future events, or otherwise.
|Unified Grocers, Inc.|
(dollars in thousands)
|For the 13 Weeks Ended||For the 39 Weeks Ended|
| June 29, |
| June 30, |
| June 29, |
| June 30, |
|Operating (loss) income||(1,479)||9,503||2,771||21,768|
|(Loss) Earnings before estimated patronage dividends and income taxes||(14,645)||6,232||(17,001)||12,342|
|Estimated patronage dividends||2,264||4,444||7,228||8,009|
|Net (loss) earnings||($11,261)||$1,245||($15,913)||$3,320|
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Source: Unified Grocers