A&P Updates Financial Outlook

MONTVALE, N.J. — A newly revised financial projection for A&P here predicts the company will still be showing a net loss by 2016, but EBITDA would rise to more than $300 million behind higher sales and more productive stores.

The projected figures — which the company stressed were subject to numerous contingencies — were disclosed as part of a revised disclosure statement filed with U.S. Bankruptcy Court this week. Previous filings did not disclose profits.

The projections show sales growing from $7.1 billion in the fiscal year ending Feb. 25, 2013, to $7.8 billion on the same date in 2016. Operating income, or earnings before interest and taxes, turns positive in 2013 and grows to $48.7 million in 2016, while EBITDA — including “self-help initiatives” including shrink reduction and other internal cost savings totaling $50 million to $75 million each year — will total $309.4 million in 2016, up from $17.4 million negative in fiscal 2012.

A net loss over that period narrows from $72.9 million for fiscal 2012 to $34.2 million for fiscal 2015.

Discuss this Article 8

Anonymous (not verified)
on Jan 9, 2012

A&P Corporate Workers received their yearly bonuses, Tickets to Jets games and NY rangers, BUT cut union wages. I thought we were bankrupted??

Anonymous (not verified)
on Jan 26, 2012

It is a shame that a large company like A&P can walk away from most of its debt that it owes vendors. And then they ask the vendors to work with them on credit and reestablishing themselves to probably go through it again. I guess they will work the system any way they can to cover their rearends.

Anonymous (not verified)
on Jan 29, 2012

Not all A&P Corportate workers received the perks of bonuses or tickets. Some of us haven't received a wage increase in four years

Anonymous (not verified)
on Feb 5, 2012

Poor baby. Pathmark employees just lost 6.25% of pay and earned time. Guess you'll be getting YOUR wage increase now. No wait, you'll be getting MY wages now.

Anonymous (not verified)
on Feb 11, 2012

we lost eight sick days four personal days one weeks vacation and 3.1% a week in wages can you top that.

Anonymous (not verified)
on Feb 9, 2012

you were getting wage increase every year, while non-union employees received nothing, so it equals each other out, you lost and we gained nothing

Anonymous (not verified)
on Feb 11, 2012

A&P will never recover because they never have products that are on sale not to metion the long lines in the stores!!!!

Anonymous (not verified)
on Mar 13, 2012

well every one if forgetting one thing a@p pathmark may not be around come 2016 or 2013 and who lost what who gains what dosent matter we are still have a job hate A@P then take the buyout or walk out the door the people who i blame the most for our lost wages are our local unions who sold us down the river

Post new comment
Sign In or register to use your Supermarket News ID
(optional)

Sponsored by: Tyson Deli

SN’s Spotlight on Deli/Fresh Meals series profiles large chains and independent retailers who show innovation in their deli and fresh meals departments. Click Here

Twitter Facebook Youtube Iphone APP RSS Feeds Google Plus