SHEBOYGAN, Wis. -- Schultz Sav-O Stores here said net income rose 88.8% to $4.75 million, a record, for the year ended Jan. 1.
and 10.8% for the 12-week fourth quarter to $106.9 million. The fourth quarter of the previous year covered 13 weeks.
James H. Dickelman, chairman, president and chief executive officer, said Schultz's results were satisfactory.
"We view them not so much as an achievement of an objective, but as the establishment of a new base on which to grow," he said. Schultz said the increased net earnings are "principally the result of continued improvements" in wholesale operations.
Results in 1992 included an after-tax charge of $1.6 million, or 56 cents per share, which resulted from a settlement of lease obligations.
Schultz attributed the sales decline to one less week of operation as well as a reduction in the number of corporate stores it operates. Schultz owned 21 corporate retail stores and supplied 64 franchisee units as of Jan. 1. This compared with 53 franchisees and 32 corporate stores on Oct. 1, 1992.
Schultz decided in 1992 to expand its wholesale volume, largely by converting underperforming corporate supermarkets to franchise stores or closing their operations. Schultz also announced it had agreed to terminate a supply relationship with three stores in northern Illinois during the first quarter of 1994, which will reduce annual wholesale volume by about $14 million. Schultz will enter into a new franchise agreement for one store with a new operator.