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TheStreet Open House

Ruddick Corporation Reports Fiscal Third Quarter 2011 Results

Ruddick Corporation is a holding company with two primary operating subsidiaries: Harris Teeter, Inc., a leading regional supermarket chain with operations in eight states primarily in the southeastern and mid-Atlantic United States, and the District of Columbia; and American & Efird, Inc., one of the world’s largest global manufacturers and distributors of industrial sewing thread, embroidery thread and technical textiles.

Selected information regarding Ruddick Corporation and its subsidiaries is attached. For more information on Ruddick Corporation, visit our web site at: www.ruddickcorp.com .

Ruddick Corporation
Consolidated Condensed Statements of Operations
(in thousands, except per share data)
(unaudited)
       
13 Weeks Ended 39 Weeks Ended
July 3, June 27, July 3, June 27,
  2011     2010     2011     2010  
Net Sales:
Harris Teeter $ 1,101,650 $ 1,019,138 $ 3,184,077 $ 2,992,104
American & Efird   86,077     79,434     241,894     218,418  
Total   1,187,727     1,098,572     3,425,971     3,210,522  
 
Cost of Sales:
Harris Teeter 775,592 714,581 2,234,520 2,093,454
American & Efird   63,844     60,258     181,647     166,548  
Total   839,436     774,839     2,416,167     2,260,002  
 
Gross Profit:
Harris Teeter 326,058 304,557 949,557 898,650
American & Efird   22,233     19,176     60,247     51,870  
Total   348,291     323,733     1,009,804     950,520  
 
Selling, General and Administrative Expenses:
Harris Teeter 275,400 261,439 803,530 766,132
American & Efird 14,357 13,351 40,519 38,955
Corporate   1,985     (795 )   7,070     3,436  
Total   291,742     273,995     851,119     808,523  
 
Operating Profit (Loss):
Harris Teeter 50,658 43,118 146,027 132,518
American & Efird 7,876 5,825 19,728 12,915
Corporate   (1,985 )   795     (7,070 )   (3,436 )
Total   56,549     49,738     158,685     141,997  
 
Other Expense (Income):
Interest expense 4,945 5,016 14,677 15,030
Interest income (85 ) (19 ) (200 ) (158 )
Net investment loss (gain)   -     (309 )   (19,392 )   (310 )
Total   4,860     4,688     (4,915 )   14,562  
 
Earnings Before Taxes 51,689 45,050 163,600 127,435
Income Tax Expense   19,379     15,857     62,808     46,588  
Net Earnings 32,310 29,193 100,792 80,847
Less: Net Earnings Attributable to the
Noncontrolling Interest   212     323     655     767  
 
Net Earnings Attributable to Ruddick Corporation $ 32,098   $ 28,870   $ 100,137   $ 80,080  
 
Earnings Per Share Attributable to Ruddick
Corporation:
Basic $ 0.66 $ 0.60 $ 2.07 $ 1.66
Diluted $ 0.66 $ 0.59 $ 2.05 $ 1.65
 
Weighted Average Number of Shares of
Common Stock Outstanding:
Basic 48,489 48,252 48,460 48,180
Diluted 48,874 48,628 48,830 48,558
 
Dividends Declared Per Common Share $ 0.13 $ 0.12 $ 0.39 $ 0.36
 
Effective Income Tax Rate 37.5 % 35.2 % 38.4 % 36.6 %
Ruddick Corporation
Consolidated Condensed Balance Sheets
(in thousands)
(unaudited)
     
July 3, October 3, June 27,
  2011     2010     2010  

Assets

Current Assets:
Cash and Cash Equivalents $ 124,208 $ 73,612 $ 31,062
Accounts Receivable, Net 112,979 99,407 100,098
Refundable Income Taxes 9,287 16,767 9,906
Inventories 327,029 320,506 315,604
Deferred Income Taxes 1,509 2,236 3,038
Prepaid Expenses and Other Current Assets   32,348     32,443     27,400  
Total Current Assets 607,360 544,971 487,108
 
Property, Net 1,069,334 1,067,807 1,046,683
Investments 179,424 174,733 165,600
Deferred Income Taxes 992 977 10,503
Goodwill 515 515 515
Intangible Assets 20,041 21,434 21,948
Other Long-Term Assets   85,015     79,449     88,700  
 
Total Assets $ 1,962,681   $ 1,889,886   $ 1,821,057  
 
 

Liabilities and Equity

Current Liabilities:
Notes Payable $ 7,021 $ 6,785 $ 6,012
Current Portion of Long-Term Debt and Capital Lease Obligations 4,664 12,035 10,624
Accounts Payable 251,484 228,748 212,302
Dividends Payable - - 5,862
Deferred Income Taxes 17 159 85
Accrued Compensation 59,792 64,102 53,120
Other Current Liabilities   87,141     90,218     85,506  
Total Current Liabilities 410,119 402,047 373,511
 
Long-Term Debt and Capital Lease Obligations 285,648 296,131 304,014
Deferred Income Taxes 19,321 1,721 548
Pension Liabilities 146,441 185,445 156,507
Other Long-Term Liabilities 116,503 105,619 102,819
 
Equity:
Common Stock 102,017 98,285 95,584
Retained Earnings 999,815 918,843 892,750
Accumulated Other Comprehensive Loss   (123,177 )   (124,679 )   (110,765 )
Total Equity of Ruddick Corporation 978,655 892,449 877,569
Noncontrolling Interest   5,994     6,474     6,089  
Total Equity 984,649 898,923 883,658
     
Total Liabilities and Equity $ 1,962,681   $ 1,889,886   $ 1,821,057  
Ruddick Corporation
Consolidated Condensed Statements of Cash Flows
(in thousands)
(unaudited)
  39 Weeks Ended
July 3,   June 27,
  2011     2010  
Cash Flow From Operating Activities:
Net Earnings $ 100,137 $ 80,080
Non-Cash Items Included in Net Income
Depreciation and Amortization 105,066 100,357
Deferred Income Taxes 16,631 23,584
Net Gain on Sale of Property and Investments (20,023 ) (3,452 )
Share-Based Compensation 6,014 4,419
Other, Net (6,682 ) (4,097 )
Changes in Operating Accounts Providing (Utilizing) Cash:
Accounts Receivable (13,697 ) (20,650 )
Inventories (7,164 ) (6,575 )
Prepaid Expenses and Other Current Assets (831 ) 784
Accounts Payable 23,031 (16,085 )
Other Current Liabilities 2,236 (11,964 )
Other Long-Term Operating Accounts (39,019 ) (12,008 )
Dividends Received   1,431     100  
Net Cash Provided by Operating Activities   167,130     134,493  
 
Investing Activities:
Capital Expenditures (102,531 ) (72,398 )
Purchase of Other Investments (18,834 ) (10,153 )
Proceeds from Sale of Property and Investments 58,277 7,508
Return of Partnership Investments - 3,364
Investments in COLI, Net of Proceeds from Death Benefits (1,073 ) (246 )
Other, Net   (1,721 )   (2,316 )

Net Cash Used in Investing Activities

  (65,882 )   (74,241 )
 
Financing Activities:
Net Proceeds from Short-Term Debt Borrowings 603 501
Net Payments on Revolver Borrowings - (42,600 )
Proceeds from Long-Term Debt Borrowings - 1,037
Payments on Long-Term Debt and Capital Lease Obligations (30,066 ) (9,292 )
Dividends Paid (19,165 ) (17,529 )
Proceeds from Stock Issued 559 3,230
Share-Based Compensation Tax Benefits 1,085 1,068
Shares Effectively Purchased and Retired for Withholding Taxes (2,485 ) (1,375 )
Purchase and Retirement of Common Stock - (1,491 )
Other, Net   (1,238 )   (64 )
Net Cash Used in Financing Activities   (50,707 )   (66,515 )
 
Increase (Decrease) in Cash and Cash Equivalents 50,541 (6,263 )
Effect of Foreign Currency Fluctuations on Cash 55 15
Cash and Cash Equivalents at Beginning of Period   73,612     37,310  
 
Cash and Cash Equivalents at End of Period $ 124,208   $ 31,062  
 
Supplemental Disclosures of Cash Flow Information:
Cash Paid During the Period for:
Interest $ 14,701 $ 14,309
Income Taxes 33,802 25,219
Non-Cash Activity:
Assets Acquired Under Capital Leases 12,144 -
Note Received in Connection with Sale of Investments 2,855 -
Ruddick Corporation
Other Statistics
July 3, 2011
(dollars in millions)
       
Consolidated
Harris American Ruddick
Teeter   & Efird   Corporate   Corporation
 
Depreciation and Amortization:
3rd Fiscal Quarter $ 32.0 $ 3.2 $ 0.3 $ 35.5
Fiscal Year to Date 95.1 9.1 0.9 105.1
 
Capital Expenditures:
3rd Fiscal Quarter $ 27.0 $ 1.4 $ - $ 28.4
Fiscal Year to Date 98.6 3.9 - 102.5
 
Purchase of Other Investment Assets:
3rd Fiscal Quarter $ 4.4 $ - $ - $ 4.4
Fiscal Year to Date 18.8 - - 18.8
 
 
 
Harris Teeter Store Count: Quarter Year to Date
 
Beginning number of stores 202 199
Opened during the period 2 6
Closed during the period   -     (1 )
Stores in operation at end of period   204     204  
 
 
Quarter Year to Date
 
Harris Teeter Comparable Store Sales 4.37 % 2.68 %

Definition of Comparable Store Sales:

Comparable store sales are computed using corresponding calendar weeks to account for the occasional extra week included in a fiscal year. A new store must be in operation for 14 months before it enters into the calculation of comparable store sales. A closed store is removed from the calculation in the month in which its closure is announced. A new store opening within an approximate two-mile radius of an existing store that is to be closed upon the new store opening is included as a replacement store in the comparable store sales measure as if it were the same store. Sales increases resulting from existing comparable stores that are expanded in size are included in the calculations of comparable store sales, if the store remains open during the construction period.

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