The Great Atlantic & Pacific Tea Company Inc. announces year-end results

Business Wire, March 14, 1995

MONTVALE, NJ--(BUSINESS WIRE)--MARCH 14, 1995--The Great Atlantic & Pacific Tea Company, Inc. today reported net earnings (unaudited) for the fourth quarter ended February 25, 1995 of $5,777,000 or $.15 per share compared to a net loss of $19,427,000 or $.51 in the fourth quarter of last year. Current fourth quarter pre-tax earnings were adversely affected by a pre-tax loss of $3,722,000 in Canada where company operations are being restructured following labor negotiations.

Sales for the quarter were $2,370,080,000 compared to $2,362,510,000, last year. U.S. identical store sales were off 2.2 percent compared to last year when sales were elevated due to numerous northeastern U.S. winter storms. Canadian identical store sales comparisons are not meaningful this year because of a 14-week strike which caused the closure of 63 Miracle and Ultra Food Mart stores in Ontario, Canada during the fourth quarter of last year.

For the year ended February 25, 1995, the company reported a net loss of $171,536,000 or $4.49 per share on sales of $10,331,950,000 compared with net income of $3,959,000 or $.10 per share on sales of $10,384,077,000 in fiscal 1993. In fiscal 1994, the company recorded pre-tax income of $80,509,000 from U.S. operations, up 54 percent over 1993, which was offset by pre-tax losses of $65,957,000 in Canada. The Canadian losses include a charge of $27,000,000, which represented the costs associated with three employee buy-outs negotiated with its Canadian labor unions. The Company recorded in the third quarter after-tax, non-recurring charges of $160,000,000 or $4.19 per share, which included a write-off of goodwill and certain long-lived assets, a provision for store closings, and a net reduction in deferred tax assets. The company also recorded in the first quarter, a cumulative net charge of $4,950,000 or $.13 a share to reflect the adoption of FASB #112 "Employers' Accounting for Postemployment Benefits".

James Wood, chairman and chief executive officer said, "Our U.S. operations continue to show improvement, while we are reducing Canadian losses through a restructuring plan that will return our Ontario operations to growth and profitability."

During the 1994 fiscal year, the company opened 22 new stores, including 6 liquor stores, remodeled or expanded 53 stores and closed 87 stores. A&P operates 1,108 stores in 23 eastern states and Ontario, Canada under the A&P, Waldbaum's, Food Emporium, Super Fresh, Farmer Jack, Kohl's, Dominion and Miracle/Ultra Food Mart names. -0-