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Harris Teeter Supermarkets, Inc. Reports Results For The Second Quarter Of Fiscal 2012

Stocks in this article: HTSI

Harris Teeter Supermarkets, Inc. operates a leading regional supermarket chain in eight states primarily in the southeastern and mid-Atlantic United States, and the District of Columbia.

Selected information regarding Harris Teeter Supermarkets, Inc. and its subsidiaries follows. For more information on Harris Teeter Supermarkets, Inc., visit our web site at: www.harristeeter.com .

Harris Teeter Supermarkets, Inc.
Consolidated Condensed Statements of Earnings
(in thousands, except per share data)
(unaudited)
       
13 Weeks Ended 26 Weeks Ended
April 1, 2012 April 3, 2011 April 1, 2012 April 3, 2011
Sales $ 1,120,379 100.00 % $ 1,050,146 100.00 % $ 2,239,945 100.00 % $ 2,082,427 100.00 %
Cost of Sales   776,822   69.34 %   733,070   69.81 %   1,569,568   70.07 %   1,458,928   70.06 %
Gross Profit 343,557 30.66 % 317,076 30.19 % 670,377 29.93 % 623,499 29.94 %
 
Selling, General and Administrative
Expenses:
Harris Teeter 288,004 25.71 % 266,605 25.39 % 565,993 25.27 % 528,129 25.36 %
Corporate   3,067   0.27 %   2,815   0.27 %   5,636   0.25 %   5,915   0.28 %
Total   291,071   25.98 %   269,420   25.66 %   571,629   25.52 %   534,044   25.65 %
 
Operating Profit   52,486   4.68 %   47,656   4.54 %   98,748   4.41 %   89,455   4.30 %
 
Other Expense (Income):
Interest expense 3,334 0.30 % 5,069 0.48 % 8,072 0.36 % 9,529 0.46 %
Interest income (34 ) 0.00 % (33 ) 0.00 % (82 ) 0.00 % (56 ) 0.00 %
Net investment loss (gain)   -   0.00 %   114   0.01 %   -   0.00 %   (19,392 ) -0.93 %
Total   3,300   0.29 %   5,150   0.49 %   7,990   0.36 %   (9,919 ) -0.48 %
 
Earnings From Continuing Operations
Before Income Taxes 49,186 4.39 % 42,506 4.05 % 90,758 4.05 % 99,374 4.77 %
Income Tax Expense   18,730   1.67 %   16,333   1.56 %   34,486   1.54 %   38,795   1.86 %
Earnings from Continuing
Operations, Net of Income Taxes   30,456   2.72 %   26,173   2.49 %   56,272   2.51 %   60,579   2.91 %
 
Earnings (Loss) from Operations of
Discontinued Operations (344 ) 6,504 (18,344 ) 12,094
Income Tax (Benefit) Expense   (142 )   2,771     (5,985 )   4,634  
Earnings (Loss) from Discontinued
Operations, Net of Income Taxes   (202 )   3,733     (12,359 )   7,460  
 
Net Earnings $ 30,254   $ 29,906   $ 43,913   $ 68,039  
 
Net Earnings (Loss) Per Share - Basic:
Continuing Operations $ 0.62 $ 0.54 $ 1.16 $ 1.25
Discontinued Operations   -     0.08     (0.25 )   0.15  
Total $ 0.62   $ 0.62   $ 0.90   $ 1.40  
 
Net Earnings (Loss) Per Share - Diluted:
Continuing Operations $ 0.62 $ 0.54 $ 1.15 $ 1.24
Discontinued Operations   -     0.08     (0.25 )   0.15  
Total $ 0.62   $ 0.61   $ 0.90   $ 1.39  
 
Weighted Average Number of Shares of
Common Stock Outstanding:
Basic 48,780 48,481 48,714 48,446
Diluted 49,034 48,818 49,016 48,806
 
Dividends Declared Per Common Share $ 0.14 $ 0.13 $ 0.27 $ 0.26
 
Effective Tax Rate on Continuing Operations 38.1 % 38.4 % 38.0 % 39.0 %
   
Harris Teeter Supermarkets, Inc.
Consolidated Condensed Balance Sheets
(in thousands)
(unaudited)
 
April 1, October 2, April 3,
2012   2011 2011

Assets

Current Assets:
Cash and Cash Equivalents $ 232,476 $ 164,479 $ 64,010
Accounts Receivable, Net 52,784 47,088 51,115
Refundable Income Taxes 10,042 15,055 -
Inventories 290,659 287,137 270,068
Deferred Income Taxes 5,023 1,321 828
Prepaid Expenses and Other Current Assets 26,772 24,576 24,675
Current Assets of Discontinued Operations   -     220,017     270,739  
Total Current Assets 617,756 759,673 681,435
 
Property, Net 1,040,048 1,019,468 1,009,195
Investments 104,735 112,556 113,478
Intangible Assets 13,073 13,609 13,602
Other Long-Term Assets 82,440 79,118 78,814
     
Total Assets $ 1,858,052   $ 1,984,424   $ 1,896,524  
 
 

Liabilities and Shareholders' Equity

Current Liabilities:
Current Portion of Long-Term Debt and Capital Lease Obligations $ 4,137 $ 3,902 $ 4,093
Accounts Payable 246,032 252,859 213,980
Income Taxes Payable - - 2,196
Accrued Compensation 57,072 63,236 51,568
Other Current Liabilities 79,410 87,805 72,413
Current Liabilities of Discontinued Operations   -     71,571     68,469  
Total Current Liabilities 386,651 479,373 412,719
 
Long-Term Debt and Capital Lease Obligations 210,702 283,428 285,880
Deferred Income Taxes 23,175 19,674 3,497
Pension Liabilities 104,459 113,617 126,553
Other Long-Term Liabilities 111,397 113,250 111,785
 
Shareholders' 'Equity:
Common Stock 107,940 104,211 99,644
Retained Earnings 1,015,140 984,535 974,106
Accumulated Other Comprehensive Loss (101,412 ) (100,423 ) (105,470 )
Accumulated Other Comprehensive Loss of Discontinued Operations   -     (19,048 )   (17,939 )
Total Shareholders' Equity of Harris Teeter Supermarkets, Inc. 1,021,668 969,275 950,341
Noncontrolling Interest of Discontinued Operations   -     5,807     5,749  
Total Shareholders' Equity 1,021,668 975,082 956,090
     
Total Liabilities and Shareholders' Equity $ 1,858,052   $ 1,984,424   $ 1,896,524  
 
Harris Teeter Supermarkets, Inc.
Consolidated Condensed Statements of Cash Flows
(in thousands)
(unaudited)
26 Weeks Ended
April 1, April 3,
2012 2011
Cash Flow From Operating Activities:
Net Earnings $ 43,913 $ 68,039
Loss (Earnings) from Discontinued Operations 12,359 (7,460 )
Non-Cash Items Included in Net Income
Depreciation and Amortization 66,885 63,652
Deferred Income Taxes 2,153 146
Net Gain on Sale of Property and Investments (162 ) (19,343 )
Share-Based Compensation 3,808 3,999
Other, Net (2,020 ) (1,350 )
Changes in Operating Accounts Providing (Utilizing) Cash
Accounts Receivable (5,696 ) (3,242 )
Inventories (3,522 ) 1,957
Prepaid Expenses and Other Current Assets (1,304 ) 4,268
Accounts Payable (10,055 ) 3,105
Other Current Liabilities (8,439 ) 1,043
Other Long-Term Operating Accounts (30,191 ) (32,571 )
Net Cash Used by Operating Activities of Discontinued Operations   -     (576 )
Net Cash Provided by Operating Activities   67,729     81,667  
 
Investing Activities:
Capital Expenditures (70,393 ) (71,553 )
Purchase of Other Investments (591 ) (14,402 )
Proceeds from Sale of Property and Investments 170,418 50,297
Investments in Company-Owned Life Insurance (611 ) (1,073 )
Other, Net (28 ) (127 )
Net Cash Used by Investing Activities of Discontinued Operations   -     (1,285 )
Net Cash Provided (Used) by Investing Activities   98,795     (38,143 )
 
Financing Activities:
Payments on Long-Term Debt and Capital Lease Obligations (81,357 ) (28,267 )
Dividends Paid (13,308 ) (12,776 )
Proceeds from Stock Issued 314 360
Share-Based Compensation Tax Benefits 1,838 762
Shares Effectively Purchased and Retired for Withholding Taxes (5,129 ) (2,485 )
Other, Net (885 ) 70

Net Cash Used by Financing Activities of Discontinued Operations

  -     (570 )
Net Cash Used by Financing Activities   (98,527 )   (42,906 )
 
Increase in Cash and Cash Equivalents 67,997 618
Effect of Foreign Currency Fluctuations on Cash of Discontinued Operations - 81
Cash and Cash Equivalents at Beginning of Period 164,479 73,612
   
Cash and Cash Equivalents at End of Period $ 232,476   $ 74,311  
 
Cash and Cash Equivalents of Continuing Operations $ 232,476 $ 64,010
Cash and Cash Equivalents of Discontinued Operations - $ 10,301
 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash Paid During the Year for:
Interest, Net of Amounts Capitalized $ 9,357 $ 9,701
Income Taxes 21,716 20,767
Non-Cash Activity:
Assets Acquired Under Capital Leases 8,866 12,144
Note Received in Connection with Sale of Investments - 2,855
       
Harris Teeter Supermarkets, Inc.
Other Statistics
 
13 Weeks Ended 26 Weeks Ended
April 1, April 3, April 1, April 3,
2012 2011 2012 2011
 
Comparable Store Sales Increase 3.91 % 1.42 % 4.62 % 1.81 %
 
Store Brand Penetration Based on Units 24.15 % 24.48 % 24.25 % 24.08 %
 
Store Brand Penetration Based on Sales 24.98 % 24.38 % 25.24 % 24.40 %
 
Store Count
Beginning number of stores 206 201 204 199
Opened during the period - 2 3 4
Closed during the period -   (1 ) (1 ) (1 )
Stores in operation at end of period 206   202   206   202  

 

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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