FOOD 4 LESS CASH FLOW, SALES FLAT IN QUARTER

LA HABRA, Calif. -- Food 4 Less here reported flat sales and operating cash flow for the second quarter and 28 weeks ended Jan. 7. For the 16-week quarter and first half, Food 4 Less reported a net loss, compared with net income of $100,000 in the year-ago quarter and a loss for the first half of the prior year. Sales increased 0.8% to $806 million for the quarter and were flat at $1.4 billion for the half, while same-store sales fell 3.5% for the quarter and an estimated 4.6% for the half. The company said a 4.3% sales increase resulted from the addition of 13 new or acquired stores during the quarter and the conversion of 11 stores -- nine Vivas and two Boys Markets -- to the Food 4 Less warehouse format. Those gains, however, were partially offset by the closure of seven stores, the company added. The cost of the 11 store conversions was $11.5 million, which resulted in a $5.1 million restructuring charge to reflect the writeoff of property and equipment, the company said. Food 4 Less said it plans to convert 26 remaining Boys and six remaining Vivas to other formats, "[which] will further improve comparable store sales," it noted.

Same-store -4.6%

Net Income ($8.7 million) ($1 million)