Caldor's operating profits gain 14.5% in Fiscal 1990, - FinanceWatch

Discount Store News, March 18, 1991

Caldor's Operating Profits Gain 14.5% in Fiscal 1990

NORWALK, Conn. -- Caldor reported a 14.5% gain in operating profits for 1990 on a 7% sales gain during its first entire year on its own. Earnings before taxes and interest rose to $125 million from $109 million in 1989. Including a 5% same store gain, sales increased to $1.77 billion for the year.

Caldor, which underwent a leveraged buyout in November 1989, from May Department Stores has yet to release net results for 1990. But analysts expect that taxes and hefty interest payments for LBO debt consumed most of the operating profit, leaving the chain with a slim net profit.

Chief financial officer Robert Schauman said, "We are pleased with our financial performance, especially considering the retail climate of 1990."

Caldor operates 122 stores in North East and Mid-Atlantic states.

Odyssey Partners, the brokerage firm of Donaldson, Lufkin & Jenrette, and Caldor management acquired a majority interest in the chain from May for $500 million. To help swing the deal, May retained a 20% interest and will share in Caldor's net profits. [Tabular Data Omitted]