BRUSSELS, Belgium, December 16, 2001 – Delhaize Group (Euronext Brussels: DELB; NYSE: DEG), the Belgian international food retailer, will file on Monday December 17, 2001 a Form 6K with the Securities and Exchange Commission with pro forma financial information on the Group for the fourth quarter of fiscal 2000 and revised pro forma financial information for the third quarter of fiscal 2000 for Delhaize America, its U.S. subsidiary, to reflect the change in its quarterly financial reporting calendar.
As of January 1, 2001, Delhaize America began reporting four thirteen-week quarters as compared to three twelve-week quarters and one sixteen-week quarter used in 2000 in order to conform to the quarterly presentation used by Delhaize Group. Due to this change in the quarterly financial reporting calendar for Delhaize America and the acquisition of Hannaford Bros., Co. in 2000, Delhaize Group has indicated below pro forma financial information for the fourth quarter of 2000 as if these changes occurred on January 1, 2000 to assist investors in reviewing Company financial trends.
The change in pro forma presentation for Delhaize America has no impact on the actual reported results of Delhaize America and the existing financial guidance on the U.S. operations for 2001 has not changed. Sales of Delhaize America are expected to grow in 2001 approximately 17-18%, with comparable store sales growth to be 1.5-2.0%. In 2001, earnings before interest, taxes, depreciation and amortization (EBITDA) of Delhaize America are expected to increase between 25 and 30%.
Delhaize Group confirms all the reported quarterly and year-to-date actual and pro forma numbers of Delhaize Group and Delhaize America, including Hannaford Bros., in 2000 and 2001 as given in the third quarter 2001 press release of Delhaize Group, published on October 26, 2001.
Consolidated Pro Forma Statements of Income Delhaize Group
For the 13 Weeks ended December 31, 2000
|
(in millions of EUR) |
Pro forma 4Q 2000 |
Actual 4Q 2000 |
|
Sales |
5,372.1 |
6,223.8 |
|
EBITDA (FIFO) |
406.6 |
463.5 |
|
EBITDA margin |
7.6% |
7.5% |
|
Depreciation |
(139.8) |
(164.7) |
|
Amortization of goodwill and intangibles |
(26.7) |
(32.2) |
|
Store closings in the normal course of business |
(0.6) |
(0.6) |
|
Operating result (EBIT) |
239.5 |
266.0 |
|
EBIT margin |
4.5% |
4.3% |
|
Financial income / (expense) |
(102.9) |
(126.0) |
|
Earnings before income taxes and exceptional items |
136.6 |
140.0 |
|
Exceptional income / (expense) |
9.4 |
3.5 |
|
Earnings before income taxes |
146.0 |
143.5 |
|
Income taxes |
(42.4) |
(48.9) |
|
Net earnings from consolidated companies |
103.6 |
94.6 |
|
Minority interests (1) |
(32.4) |
(27.9) |
|
Reported earnings |
71.2 |
66.7 |
|
Cash earnings |
60.6 |
59.5 |
|
Reported EPS (in EUR) |
1.37 |
1.28 |
|
Cash EPS (in EUR) |
1.16 |
1.14 |
|
Weighted average number of shares outstanding |
52,031,725 |
52,031,725 |
|
Number of shares outstanding at the end of the 4th quarter |
52,031,725 |
52,031,725 |
- In the fourth quarter of 2000, the average ownership interest of Delhaize Group in Delhaize America was 45.76%.
Consolidated Pro Forma Statements of Income Delhaize America, Inc.
For the 13 and 39 Weeks ended Sept 29, 2000 (1)
|
(in thousands of USD) |
Pro forma 13 Weeks
Sept 30, 2000 |
Pro forma 39 Weeks
Sept 30, 2000 |
|
Net sales and other revenues |
3,645,114 |
10,623,118 |
|
Cost of goods sold |
(2,771,101) |
(8,020,517) |
|
Selling and administrative expenses |
(750,662) |
(2,164,422) |
|
Asset impairment provision |
(26,961) |
(26,961) |
|
Store closing provision |
(34,237) |
(42,734) |
|
Merger expense |
(24,127) |
(29,461) |
|
Operating income |
38,026 |
339,023 |
|
Interest expense |
(84,831) |
(250,135) |
|
Income before income taxes |
(46,805) |
88,888 |
|
Provision for income taxes |
(6,478) |
(57,801) |
|
Net income |
(40,327) |
31,087 |
|
EBITDA (FIFO) (2) |
247,140 |
809,809 |
- Pro forma consolidated statements of income for the thirteen and thirty-nine week periods ended Sept 30, 2000 are presented to reflect the impact of the calendar change to a thirteen-week calendar quarter and to include the results of operations of Hannaford Bros. Co. which was acquired on July 31, 2000.
- EBITDA is defined by our Company as earnings before interest, taxes, depreciation, amortization, LIFO income/expense, merger expense, store closing provision and asset impairment provision. We do not represent EBITDA as an alternative measure to net income or cash flow from operations, which is determined in accordance with U.S. GAAP. Investors should note that our calculation of EBITDA might differ from similarly titled measures for other companies.
DELHAIZE GROUP
Delhaize Group is a food retailer headquartered in Belgium, and listed on Euronext Brussels and the New York Stock Exchange. At the end of the third quarter of 2001, Delhaize Group’s sales network consisted of 2,446 stores in ten countries on three continents. In 2001, Delhaize Group will post more than EUR 20 billion in sales. Delhaize Group employs approximately 150,000 people.
This press release is available in English, French and Dutch. For more information, visit the Delhaize Group website at www.delhaizegroup.com. Questions can be sent to investor@delhaizegroup.com.
Some of the statements in this press release and other written and oral statements made from time to time by Delhaize Group and its representatives are 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of Securities Exchange Act of 1934, as amended, and involve a number of risks and uncertainties. These statements include, but are not limited to, statements about strategic options, future strategies and the anticipated benefits of these strategies. These statements are based on Delhaize Group’s current expectations. Delhaize Group’s actual results could differ materially from those stated or implied in such forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements are described in Delhaize Group’s Annual Report on Form 20-F for the year ended December 31, 2000 and other periodic filings made by Delhaize Group with the U.S. Securities and Exchange Commission, which risk factors are incorporated herein by reference. Delhaize Group disclaims any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained in this release, or to make corrections to reflect future events or developments.