Winn-Dixie 2Q records net loss, flat sales
Feb. 15, 2011
by Bryan Salvage
JACKSONVILLE, Fla. – Winn-Dixie Stores Inc. announced for the second quarter of fiscal 2011 ended Jan. 12 a net loss of $24.0 million, or $0.43 per diluted share, compared to net income of $2.1 million or $0.04 per diluted share for the same period last year. Net sales in the second quarter were $2.1 billion, which were essentially flat compared to the same period in the prior fiscal year.
Its identical store sales trend improved by 250 basis points compared to the first quarter of fiscal 2011, and 470 basis points compared to the fourth quarter of fiscal 2010. Adjusted EBITDA was $27.4 million in the second quarter of fiscal 2011, a decrease of $5.1 million compared to the same period last year, but an increase of $34.3 million compared to the first quarter of fiscal 2011.
“We delivered significant improvements in both identical store sales and adjusted EBITDA compared to last quarter, due largely to the strategic adjustments we made to our promotional activity and the implementation of sustainable merchandising and marketing initiatives tailored to meet the shopping needs of our guests,” said Peter Lynch, chairman, CEO and president.
“As we move through the year, we will continue to manage inflation in key categories as efficiently as possible, while being mindful of consumers who are particularly cost conscious in this environment,” he added. “While the economic environment in our key markets remains challenging, we are confident that we can continue to offer our guests better quality, service and value for their shopping dollars.”
For continuing operations, the company reported a net loss of $22.3 million or $0.40 per diluted share, which includes a deferred tax expense of $7.9 million or $0.14 per diluted share, to reflect an increase in the company’s valuation allowance on its deferred tax assets.
For the 28-week period, the company had a net loss of $100.8 million, or $1.82 per diluted share, compared to a net loss of $6.0 million or $0.11 per diluted share for the same period last year. This includes a net loss of $41.9 million or $0.76 per diluted share for discontinued operations, as compared to a net loss from discontinued operations of $4.6 million or $0.09 per diluted share, for the same period last year.
Net sales for the 28 weeks were $3.6 billiondown $33.0 million, compared to the same period in the prior fiscal year. Identical store sales for the 28 weeks, which exclude stores that opened or closed during the 28 weeks, decreased 1.4% compared to the same period in the prior fiscal year.
Winn-Dixie Stores Inc. is one of the nation’s largest food retailers. It is basedin Jacksonville, Fla. As of Jan. 12, the company operated 484 retail grocery locations in Florida, Alabama, Louisiana, Georgia and Mississippi.