LOS ANGELES, Feb. 14, 2017 (GLOBE NEWSWIRE) -- Unified Grocers, Inc. (the “Company”), the largest wholesale grocery distributor in the Western United States, announced that it has filed results for the first quarter of fiscal year 2017, ended December 31, 2016 (“fiscal 2017 Q1”) with the Securities and Exchange Commission (SEC).
Net income of $1.9 million for fiscal 2017 Q1 was a significant improvement over the prior year’s first quarter $1.8 million loss (“fiscal 2016 Q1” ended January 2, 2016). This improvement was primarily due to a continuing focus on operational efficiencies and expense control, reflected in reduced transportation and warehouse costs, along with a new dairy program implemented in the summer of 2016.
Fiscal 2017 Q1 included the final step in our strategy to sell non-core assets with the sale of the Southern California bakery. While we recognized a loss of $1.4 million, the transaction generated cash and now positions the Company to focus entirely on wholesale distribution to the Membership. Even with the loss on the bakery sale, operating income was ahead of the prior year ($4.6 million in fiscal 2017 Q1 compared to $3.2 million in fiscal 2016 Q1).
While net sales are below fiscal 2016 Q1 — primarily due to meat deflation and the loss of business resulting from the closure of Haggen’s Pacific Southwest (California, Arizona, Nevada) stores — total sales to our existing customer base have remained stable.
“I’m pleased to report the improvement in earnings,” said Bob Ling, President and Chief Executive Officer, Unified Grocers. “That’s a positive trend, particularly in this deflationary cycle, and speaks to the improvements we have made in our core business.”
For more information, see Unified’s Form 10-Q filing with the SEC on unifiedgrocers.com and at sec.gov/edgar.shtml.
The filing included the following financial highlights:
| Unified Grocers, Inc. | ||||
| Selected Consolidated Statement of Earnings (Unaudited) | ||||
| (dollars in thousands) | For the 13 weeks ended | For the 13 weeks ended | ||
| December 31, 2016 | January 2, 2016 | |||
| Net sales | $961,159 | $972,865 | ||
| Gross profit | $71,116 | $73,381 | ||
| Percent of sales | 7.40% | 7.54% | ||
| Operating income | $4,658 | $3,231 | ||
| Net Earnings (Loss) from continuing operations | $1,912 | ($1,677 | ) | |
| Net Gain/(Loss) from discontinued operations | $0 | ($152 | ) | |
| Net earnings (loss) | $1,912 | ($1,829 | ) | |
About Unified Grocers, Inc.
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 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 including the Company’s ability to grow operating income, provide sufficient operating capital and liquidity to fund operations and strategic initiatives, and grow sales through product differentiation. These factors and others 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.