Penn Traffic Reports 2006 Financial Results

ELLIOT ZWIEBACH

SYRACUSE, N.Y. — Penn Traffic Co. here said Friday it is continuing to process final quarterly reports for fiscal years 2007 and 2008 after reporting a loss of $3.8 million for the 41-week period that ended Jan. 28, 2006. The 41-week “year” began when the company emerged from Chapter 11 bankruptcy protection in April 2005. The company said subsequent fiscal results will be reported on a full-year basis. Sales for the 41-week period totaled $1 billion. For the 11 weeks from the end of the prior fiscal year till the company emerged from Chapter 11, the company had net income of $129.1 million, which it attributed to extinguishment of $182.8 million in debt, on sales of $265.3 million. Comparable-store sales fell 1.6% in the 41-week period and 0.5% in the 11-week period. For the total 52 weeks combined, net income was $125.3 million, compared with a loss of $24 million in the preceding year, and sales fell 0.3% to $1.3 billion. According to Robert Panasuk, president and chief executive officer, “The new senior management team, assembled over the last 12 months, is committed to making our historic quarterly and annual reports current as quickly as practical. [This] filing is a good step in that direction, and we expect to complete these efforts in the months ahead. At the same time, we’re actively implementing our tactical initiatives to improve Penn Traffic’s profitability and asset efficiency while enhancing customer service and store operations.”

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