MILWAUKEE, Wis. -- Roundy's here said it experienced gains in its retail segment for the first quarter ended April 2 as its independent distribution segment continued to shrink.
Total sales and service fees fell 2.8% to $911.4 million for the 13-week quarter. However, retail sales rose 11% to $777.3 million, while independent distribution sales fell 43.4% to $134.2 million following the closure of two distribution facilities last fall.
Same-store sales in the retail segment increased 1.1%, which the company said was due to the Easter holiday falling in the first quarter this year. Excluding the effect of the holiday, comps rose 0.8%.
Net income jumped 307.1% following a gain of $49 million from the sale of two distribution centers last fall.
Retail sales represented 85.3% of total sales, up from 75% a year ago, while independent distribution -- formerly designated as wholesale sales -- accounted for 14.7% of the total and encompassed sales to 32 licensed retailers (seven of which Roundy's is in the process of acquiring) and 75 smaller customers.
The company said the increase in retail sales was due to three acquisitions of licensed stores totaling 13 units that contributed approximately $66.2 million to first-quarter sales. It said the decline in independent distribution sales was attributable to an undisclosed amount of lost business associated with the closure last September of distribution facilities in Eldorado, Ill., and Evansville, Ind., and the loss of sales in the segment when it acquired seven licensed Pick 'n Save Stores in 2004.
1ST-QUARTER RESULTS
Qtr Ended: 4/2/05; 4/3/04
Sales: $911.4 million; $937.5 million
Change: -2.8%
Net Income*: $62.9 million; $15.5 million
Change: +307.1%
*Income from continuing operations -- excluding two distribution centers in Lima, Ohio, and Westville, Ind., and two retail stores in Ohio, all of which were sold to Nash Finch Co. on March 31 -- fell 14.1% to $10.7 million, which the company attributed to higher depreciation and interest expense in the quarter.
