990823 Richfood Announces First Quarter ResultsAugust 14, 1999Richmond, VA - Richfood Holdings, Inc. announced operating results for its quarter ended July 24, 1999. Net earnings, excluding the effect of certain non- recurring expenses, for the twelve week first quarter were $15.1 million, or $0.32 per share, assuming dilution. This represents a 13.5% increase over net earnings of $13.3 million, or $0.28 per share, assuming dilution, for the twelve week period ended July 25, 1998. This increase was primarily attributable to realizing the benefits of the Farm Fresh and Shoppers Food Warehouse acquisitions, including incremental wholesale volume and improved operating margins in the retail operations, as compared to the period following the acquisitions in the first quarter of fiscal 1999. As a result of the Company's recent announcement that it has entered into an Agreement and Plan of Merger with SUPERVALU INC., the Company recorded certain non-recurring expenses in the first quarter of fiscal 2000. The non- recurring expenses of $8.2 million primarily consisted of costs associated with the settlement of a financial instrument under previously planned financing strategies and professional fees incurred in connection with the SUPERVALU transaction. Net earnings, including the effect of the non-recurring expenses, were $10.1 million, or $0.21 per share, assuming dilution, for the quarter ended July 24, 1999. Sales for the quarter ended July 24, 1999, were $910.7 million, a 1.0% increase from sales of $901.3 million for the first quarter of fiscal 1999. Sales for the first quarter of fiscal 2000 consisted of wholesale grocery sales of $760.2 million and retail grocery sales of $410.3 million, reduced by $259.8 million of intersegment sales. Wholesale grocery sales and retail grocery sales for the first quarter of fiscal 2000 increased 6.4% and 4.9%, respectively, as compared to the first quarter of fiscal 1999. Wholesale grocery sales in the quarter increased primarily as a result of incremental wholesale volume resulting from the acquisitions of Farm Fresh and Shoppers Food Warehouse which had not been fully realized in the prior fiscal year first quarter. Retail grocery sales include twelve weeks of Shoppers sales in the current fiscal year first quarter as compared to ten weeks of Shoppers sales in the prior fiscal year first quarter, following its acquisition by the Company on May 18, 1998. On June 9, 1999, the Company announced that it had entered into an Agreement and Plan of Merger with SUPERVALU pursuant to which it is expected that Richfood will become a wholly owned subsidiary of SUPERVALU and Richfood's outstanding common stock will be converted into the right to receive cash and/or SUPERVALU common stock. The transaction has been approved by the respective Boards of Directors of Richfood and SUPERVALU, and the Federal Trade Commission has granted early termination of the federal antitrust waiting period. Closing of the transaction remains subject to other customary conditions, including approval by Richfood's shareholders at a special meeting to be held August 31, 1999. Richfood Holdings, Inc., headquartered in Richmond, Virginia, is one of the largest food retailers and the largest wholesale food distributor in the Mid- Atlantic operating region. The Company's Retail Division operates three retail grocery chains: 39 Farm Fresh retail grocery stores located in Virginia's Hampton Roads market; 37 Shoppers Food Warehouse supermarkets in the Washington, D.C. area; and 18 Metro retail grocery stores in the metropolitan Baltimore area. The Company's Wholesale Division provides a full range of grocery, dairy, frozen food, produce, meat and non-food items to chain and independent retailers throughout the region.
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