ANCHORAGE, Alaska -- Carr Gottstein Foods here said income before nonrecurring and extraordinary items improved sharply in the year ended Jan. 2
The adjusted income totaled $6.9 million in fiscal 1993, compared with adjusted income of $1 million the previous year.
Including extraordinary items related to debt reduction and accounting changes and a separate nonrecurring item, the company reported a loss of $14.6 million for the year. Net income, after the positive effect of an accounting change, totaled $2 million in fiscal 1992.
Operating income rose 4.5% to $31.6 million and sales declined slightly to $555.3 million in 1993, which had one fewer week than 53-week fiscal 1992.
Same-store sales fell 7.2% in the fourth quarter, which had one fewer week in 1993. Excluding the extra week in both the quarter and the year, same-store sales rose 0.1% and 1.7%, respectively.
Sales were impacted by seven new competitors that opened during the second half of the year, the company said.
John J. Cairns, chairman and chief executive officer, said Carrs Quality Centers are converting some general merchandise space to other high-margin categories such as produce, specialty foods and private label" to meet the new competition.
Jonathan Ziegler, a securities analyst with Salomon Bros., New York, said Carr Gottstein is shifting focus back to typical supermarket categories now that consumers have more store options.
"Because there weren't a lot of alternatives, Carr Gottstein has filled the role of a general store that sold all kinds of merchandise," he said.
Brooks O'Neil, a securities analyst with Piper Jaffray, Minneapolis, said, Carr Gottstein's numbers are really "quite strong" considering the new square footage added by competitors.
Gross margins slipped about 90 basis points to just over 30% of sales, O'Neil said, "which is not too bad, considering all the competitive activity."