Retail News Breaks Archives
A&P loss widens, sales dip in 4Q
May 6th, 2010
MONTVALE, N.J. – A&P posted a bigger loss and declined sales for its fiscal 2009 fourth quarter and full year.
The Mid-Atlantic supermarket chain said late Wednesday that sales for the 12-week fourth quarter ended February 27 totaled $2 billion, down 13% from $2.3 billion in the prior-year 13-week fourth quarter. Same-store sales fell 4.8%.
For the 2009 fourth quarter, excluding nonoperating items, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) came in at $41 million versus $86 million a year earlier. The estimated EBITDA benefit from the 13th week was approximately $6 million, A&P said.
The adjusted loss from operations was $13 million in the 2009 quarter, compared with adjusted income from operations of $26 million a year ago.
In the 2009 fourth quarter, the reported loss from continuing operations was $158 million, reflecting charges of $65 million for goodwill, trademark and long-lived asset impairment and income of $16 million for mark-to-market adjustments related to financial liabilities, according to A&P. The loss from continuing operations in the year-ago quarter totaled $84 million and included income of $3 million for mark-to-market adjustments related to financial liabilities.
A&P's net loss in the 2009 fourth quarter was $171.4 million, or $5.07 per diluted share, compared with $112.1 million, or $4.83 per diluted share, a year earlier.
"The past year was certainly a challenge, as the economy continued its sluggish pace," president and chief executive officer Ron Marshall said in a statement. "The good news is that we have identified several critical issues within our organization that will lead us back to market prominence. We are committing our undivided attention to clarifying our brand identity in our principal banners, completing the integration of the Pathmark acquisition and maximizing supply-chain cost improvement opportunities."
For the 52 weeks ended Feb. 27, sales fell 7.4% to $8.8 billion from $9.5 billion in the 53-week period in 2008. Same-store sales decreased 4.3%.
Excluding nonoperating items, adjusted EBITDA was $224 million in fiscal 2009 versus $333 million fin the previous year. The adjusted loss from operations came in at $22 million, compared with adjusted income from operations of $72 million last year.
The reported loss from continuing operations for 2009 was $781 million, which includes charges of $477 million for goodwill, trademark and long-lived asset impairment and expense of $9 million for mark-to-market adjustments related to financial liabilities, A&P said. The loss from continuing operations in the prior year totaled $90 million and included income of $117 million for mark-to-market adjustments related to financial liabilities.
The net loss for 2009 totaled $876.5 million, or $29.34 per diluted share, compared with $143.3 million, or $5.41 per diluted share, in the prior year.
"The fixes in our company are attainable, and the initiatives are in place today to provide us the path forward," Marshall noted. "Concurrent to transforming the culture of our company, we are gaining ground in better understanding our customer, developing the skills critical for our success, making prudent reinvestments in our business and reducing costs through a process of continuous improvement. Our sole mission is to make The Great Atlantic & Pacific Tea Co. great again."
As of Feb. 27, A&P operated 429 stores, down from 436 a year earlier. The food and drug retailer's stores are in eight Mid-Atlantic states and the District of Columbia under the banners A&P, Waldbaum's, Pathmark, Best Cellars, The Food Emporium, Super Foodmart, SuperFresh and Food Basics.