SALT LAKE CITY -- Smith's Food & Drug Centers here said expenses and charges led to lower sales and earnings in the third quarter ended Sept. 28 plus a sales drop and a net loss for the 39 weeks.
ization in May, which included redemption of about half of the company's common stock, and the first-quarter shutdown of its 34-store California arm and distribution center.
Net income in the 13-week quarter fell 64.9% to $3.9 million, due to increased interest expense and amortization of deferred financing costs from the new debt obtained in the merger and recap, Smith's said. In the nine months, Smith's had a $171.9 million net loss vs. net income of $29.6 million a year ago, due to expenses and charges from the merger, recap and disposition of the California operation.
Sales in the quarter fell 3.6% to $740.6 million due to store count changes, Smith's said. Those included closure of the 34 California units -- which had higher volumes than the 28 Smitty's stores added -- plus eight new units. Excluding California, quarterly sales rose 24.1% to $740.6 million, and same-store sales fell 0.7%. In the 39 weeks, sales fell 7.1% to $2.12 billion. Excluding California, sales rose 15.3% to $2.05 billion and same-store sales dipped 1.4%.
