MAUMEE, Ohio -- Shareholders of Seaway Food Town here and Spartan Stores, Grand Rapids, Mich., are scheduled to vote tomorrow on the merger of the two companies.
Seaway released financial results last week for the third quarter and 39 weeks ended May 27, which showed record sales and earnings for the quarter.
Sales rose 2.7% to $171.9 million for the 13-week quarter and 5.2% to $494.3 million for the nine-month period, while same-store sales increased 3% for the quarter and 2.8% for the 39 weeks.
Net income was up 88.5% to $3.5 million for the quarter and 52.6% to $8.6 million for the first three quarters. The company said the increases were due to improved margins and strong sales promotions.
Operating cash flow rose 31.6% to $10.1 million, or 5.9% of sales, for the quarter and 19.9% to $27.4 million, or 5.3% of sales, for the nine-month period.
Seaway operates 73 stores, including 47 Food Town supermarkets and 26 deep-discount drugstores called The Pharm, in northwest and central Ohio and southeast Michigan.
Under the merger agreement Seaway shareholders will each receive a cash payment of $5 and one share of new Spartan common stock for each Seaway share they own; immediately prior to consummation of the deal, Spartan shareholders will exchange their existing shares of Class A common stock for approximately 13.2 million shares of the new Spartan common.