-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, Pgjs3MZC2z3ZXN8sy1HcMSjoARldJLJCOuMhiloeLljvRYbwPr/4xjGkENsDGDOY GTVMio+DVXN7HIdxdQupag== 0000031364-94-000002.txt : 19940701 0000031364-94-000002.hdr.sgml : 19940701 ACCESSION NUMBER: 0000031364-94-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940430 FILED AS OF DATE: 19940614 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ECKERD CORP CENTRAL INDEX KEY: 0000031364 STANDARD INDUSTRIAL CLASSIFICATION: 5912 IRS NUMBER: 133302437 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-04844 FILM NUMBER: 94534221 BUSINESS ADDRESS: STREET 1: P O BOX 4689 CITY: CLEARWATER STATE: FL ZIP: 34618 BUSINESS PHONE: 8133996000 MAIL ADDRESS: STREET 1: JACK ECKERD CORPORATION STREET 2: P O BOX 4689 CITY: CLEARWATER STATE: FL ZIP: 34618 FORMER COMPANY: FORMER CONFORMED NAME: ECKERD DRUGS OF FLORIDA INC DATE OF NAME CHANGE: 19700112 10-Q 1 10-Q FOR 1ST QUARTER ENDED APRIL 30, 1994 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Thirteen Weeks Ended April 30, 1994 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to --------- --------- Commission File No. 1-4844 ECKERD CORPORATION (Exact name of registrant as specified in charter) DELAWARE 13-3302437 (State of incorporation) (I.R.S. Employer Identification No.) 8333 Bryan Dairy Road Largo, Florida 34647 (Address and zip code of principal executive offices) (813) 399-6000 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ----- ----- As of May 28, 1994 the following number of shares of Common Stock, $.01 par value, were outstanding: 31,668,867 (including 605,022 shares of Non-Voting Common Stock) -1- ECKERD CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS EXCEPT SHARE DATA)
Unaudited Audited ASSETS 4/30/94 1/29/94 - - - ------ --------- --------- Current assets: Cash and short-term interest bearing deposits plus accrued interest $ 11,349 12,110 Receivables, less allowance for doubtful receivables of $5,000 and $5,000 100,263 92,672 Merchandise inventories 730,426 765,653 Prepaid expenses and other current assets 6,480 6,232 --------- --------- Total current assets 848,518 876,667 --------- --------- Property, plant and equipment, at cost 476,868 507,061 Less accumulated depreciation 226,391 238,425 --------- --------- Net property, plant and equipment 250,477 268,636 Excess of cost over net assets acquired, less --------- --------- accumulated amortization 31,009 31,594 Favorable lease interests, less accumulated amortization 171,130 177,803 Unamortized debt expense 37,540 38,779 Other assets 27,199 24,025 --------- --------- $1,365,873 1,417,504 ========== ========= LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) - - - ---------------------------------------------- Current liabilities: Bank debit balances $ 16,228 40,974 Current installments of long-term debt 1,896 1,905 Accounts payable 260,606 363,136 Accrued expenses 169,583 164,064 --------- --------- Total current liabilities 448,313 570,079 --------- --------- Other non-current liabilities 72,456 73,461 Long-term debt, excluding current installments 996,934 952,986 Stockholders' deficit: Preferred stock of $.01 par value. Authorized 20,000,000 shares; none issued - - Voting common stock of $.01 par value. Authorized 96,481,272 shares; issued 31,061,245 and 31,031,811 310 310 Non-voting common stock of $.01 par value. Authorized 3,518,728 shares; issued 605,022 shares 6 6 Capital in excess of par value 225,807 225,560 Retained deficit (377,953) (404,898) --------- --------- Total stockholders' deficit (151,830) (179,022) --------- --------- $1,365,873 1,417,504 ========== =========
See accompanying notes to condensed consolidated financial statements. -2- ECKERD CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (IN THOUSANDS EXCEPT PER SHARE DATA)
Thirteen Weeks Ended --------------------------- 4/30/94 5/1/93 ---------- --------- Sales and other operating revenue $1,126,806 1,055,152 ---------- --------- Costs and expenses: Cost of sales, including store occupancy, warehousing and delivery expense 856,694 793,329 Operating and administrative expenses 217,846 210,420 --------- --------- Earnings before interest expenses 52,266 51,403 Interest expenses: Interest expense, net 22,212 30,914 Amortization of original issue discount and deferred debt expenses 1,689 1,746 --------- --------- Total interest expenses 23,901 32,660 --------- --------- Earnings before income taxes 28,365 18,743 Income tax provision 1,420 923 --------- --------- Net earnings for the period 26,945 17,820 Preferred stock dividends - 2,708 --------- --------- Net earnings for the period available to common shares $ 26,945 15,112 ========== ========= Net earnings per common share $ .84 .56 ========== =========
See accompanying notes to condensed consolidated financial statements. -3- ECKERD CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (IN THOUSANDS)
Thirteen Weeks Ended ------------------------- 4/30/94 5/1/93 --------- -------- Cash flows from operating activities: Net earnings for the period $ 26,945 17,820 Adjustments to reconcile net earnings for the period to net cash provided by operating activities: Depreciation and amortization 18,278 23,030 Amortization of original issue discount and deferred debt expenses 1,689 1,746 Decrease in receivables, merchandise inventories and prepaid expenses 11,943 24,000 Decrease in accounts payable and accrued expenses (95,249) (2,168) -------- ------- Net cash provided by (used in) operating activities (36,394) 64,428 -------- ------- Cash flows from investing activities: Additions to property, plant and equipment (7,079) (9,775) Sale of property, plant and equipment 95 1,336 Acquisition of certain drug store assets (376) (109) Net cash proceeds from sale of Vision Group 23,654 - Other 844 (985) -------- ------- Net cash from (used in) investing activities 17,138 (9,533) -------- ------- Cash flows from financing activities: Increase (decrease) in bank debit balances (24,746) 451 14.5% preferred stock cash dividends - (2,708) Additions to long-term debt 23 373 Reductions of long-term debt (579) (878) Net additions (reductions) under credit agreements 44,265 (48,500) Other, including deferred financing costs (468) (722) -------- ------- Net cash provided by (used in) financing activities 18,495 (51,984) -------- ------- Net increase (decrease) in cash and cash equivalents (761) 2,911 Cash and short-term interest bearing deposits plus accrued interest at beginning of period 12,110 18,642 -------- ------- Cash and short-term interest bearing deposits plus accrued interest at end of period $ 11,349 21,553 ========= =======
See accompanying notes to condensed consolidated financial statements. -4- ECKERD CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. The condensed consolidated financial statements include the accounts of the Company and its subsidiaries all of which are wholly owned, and were prepared from the books and records of the Company without audit or verification and in the opinion of management include all adjustments (none of which were other than recurring accruals) necessary to present a fair statement of results for such periods. It is suggested that these condensed consolidated financial statements should be read in conjunction with the financial statements and notes filed as part of the Form 10-K/A report for the fiscal year ended January 29, 1994. The results of operations of the periods indicated should not be considered as necessarily indicative of operations for the full year. 2. Substantially all inventories are determined on a last-in, first-out (LIFO) cost basis. At April 30, 1994 and January 29, 1994 inventories would have been greater by approximately $68.6 million and $66.1 million, respectively, if inventories were valued on a first-in, first-out (FIFO) cost basis. The cost of merchandise sold is calculated primarily on estimated inventory values and inflation rates based on physical inventories taken at all locations at least once during the fiscal year. 3. Net earnings per common share calculations for the periods presented are after considering any preferred dividends paid on the Company's 14.5% cumulative redeemable preferred stock which was repurchased on July 15, 1993. The weighted average number of shares outstanding for the thirteen weeks ended April 30, 1994 and May 1, 1993 were 32,224,000 and 26,917,000, respectively.
-5- 4. Eckerd Corporation Condensed Consolidated Statements of Operations (Unaudited) (In Thousands Except Per Share Data)
Thirteen Weeks Ended --------------------------------------- 04/30/94 05/01/93 ----------- ------------------------- Actual Actual Adjusted(A) ----------- ----------- ----------- Sales $1,126,806 1,055,152 1,039,645 Cost of sales 856,694 793,329 786,008 Operating and administrative expenses 217,846 210,420 203,594 --------- --------- --------- Operating profit 52,266 51,403 50,043 Interest expense 23,901 32,660 32,185 Income taxes 1,420 923 879 --------- --------- --------- Net earnings 26,945 17,820 16,979 Preferred stock dividends - 2,708 2,708 Net earnings available --------- --------- --------- to common shares $ 26,945 15,112 14,271 Net earnings per ========== ========= ========= common share $.84 .56 .53 Weighted average number of ==== ==== ==== shares outstanding 32,224 26,917 26,917 Earnings before interest, income taxes, depreciation and amortization (EBITDA) $ 70,544 74,433 72,470 EBITDA, adjusted for comparability (B) $ 74,116 74,945 72,982 Earnings before interest, income taxes and amortization (EBITA) $ 60,293 60,045 58,651 EBITA, adjusted for comparability (B) $ 62,344 60,557 59,163
(A) The adjusted financial data is based on the historical financial statements of the Company, adjusted to give effect to the Company's sale of the Vision Group operations which was sold effective January 30, 1994, and the use of the net proceeds therefrom as if such transaction had occurred as of the beginning of the period ended May 1, 1993. (B) Two financing transactions entered into in April and June of 1993 relating to the placement of certain inventory on consignment and the sale and leaseback of certain photo processing equipment negatively impacted the comparability of first quarter EBITDA and EBITA with last year by approximately $3,060 and $1,539, respectively. -6- ECKERD CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION Results of Operations The Company sold its Vision Group operations effective January 30, 1994. The following results of operations discussion will compare the first quarter of fiscal 1994 to the adjusted first quarter of fiscal 1993 (thirteen weeks ended April 30, 1994 and May 1, 1993) which gives effect to the Company's sale of the Vision Group operations. See "footnote 4 of Notes to Condensed Consolidated Financial Statements." The Company's sales and other operating revenue for the first quarter of fiscal 1994 and 1993 were $1,126.8 million and $1,039.6 million, respectively, an increase of 8.4%. Comparable drug store sales (stores open for one year or more) increased 7.4% in the first quarter of fiscal 1994, compared to 6.2% for the first quarter of fiscal 1993 in spite of a severe cough, cold and flu virus which stimulated sales during the first quarter of fiscal 1993. The increase in comparable drug store sales in the first quarter was due to the increase in sales of prescription drugs resulting from sales related to new third-party prescription plan contracts and the Company's competitive pricing program. In addition, comparable drug store sales growth was positively affected by increased sales of non prescription items in the health, beauty and skincare, greeting card, convenience food and photofinishing categories resulting from increased marketing emphasis and shelf space for these categories. Total sales growth in the first quarter was positively affected by the growth in comparable drug store sales, as well as the inclusion of 19 drug stores acquired during the fourth quarter of fiscal 1993. Prescription sales as a percentage of drug store sales was approximately 50.3% for the first quarter of fiscal 1994 as compared with approximately 47.8% for the first quarter of fiscal 1993. The growth in prescription sales in the first quarter was primarily the result of increased third-party prescription sales and the Company's competitive pricing program. Third-party prescription sales represented approximately 62.7% and 55.3% of the Company's prescription sales in the first quarter of fiscal 1994 and 1993, respectively. The Company expects prescription sales to third-party payors, in terms of both dollar volume and as a percentage of total prescription sales, to continue to increase in fiscal 1994 and thereafter. Although contracts with third-party payors generally increase the volume of prescription sales and gross profit dollars, third-party payors typically negotiate lower prescription prices than those on non third-party prescriptions, resulting in decreasing gross profit margins on the Company's prescription sales. Cost of sales and related expenses in the first quarter of fiscal 1994 and 1993 was $856.7 million and $786.0 million, respectively, an increase of 9.0%. As a percentage of sales, cost of sales and related expenses were 76.0% compared to 75.6% for the first quarter of fiscal 1994 and 1993, respectively. The competitive pricing strategy for non third-party prescription sales and the continued increase in third-party prescription sales with typically lower gross -7- profit margins than non third-party prescription sales partially offset by a lower LIFO charge of $2.5 million ($4.0 million in the first quarter of fiscal 1993) were the primary reasons for the increase in cost of sales and related expenses in the first quarter of fiscal 1994. Operating and administrative expenses in the first quarter of fiscal 1994 and 1993 were $217.8 million and $203.6 million, respectively, an increase of 7.0%. As a percentage of sales, operating and administrative expenses decreased to 19.3% in the first quarter of fiscal 1994 from 19.6% in the first quarter of fiscal 1993 as a result of the higher sales increases in fiscal 1994 and lower costs as a percentage of sales in such expense categories as payroll and insurance. Non-cash, tax deductible amortization of intangibles included in operating and administrative expenses in the first quarter of fiscal 1994 and 1993 were $8.0 million, compared to $8.6 million, respectively, a decrease of 6.8%. Earnings before interest expenses were $52.3 million in the first quarter of fiscal 1994, compared to $50.0 million in the first quarter of fiscal 1993, an increase of 4.4% primarily due to the increase in gross profit dollars as a result of higher sales and other operating revenue, and a decrease in operating and administrative expenses as a percentage of sales. Two financing transactions entered into in April and June of 1993 relating to the placement of certain inventory on consignment and the sale and leaseback of certain photo processing equipment negatively impacted the comparability of first quarter earnings before interest expenses by $1.5 million with a corresponding positive impact on interest expense. Earnings before interest expenses adjusted for comparability increased from $50.5 million in the first quarter of fiscal 1993 to $54.3 million in the first quarter of fiscal 1994, an increase of 7.4%. Total interest expenses were $23.9 million compared to $32.2 million in the first quarter of fiscal 1994 and 1993, respectively, a decrease of 25.7%. The decrease was due primarily to the lower cost of debt for the Company after the June 1993 refinancing, the August 1993 initial public offering and November 1993 9.25% Senior Subordinated Note issuance. Income taxes for the first quarter of fiscal 1994 and 1993 of $1.4 million and $.9 million, respectively, represent alternative minimum and state income taxes for the Company. As a result of the foregoing factors, the Company had net earnings in the first quarter of fiscal 1994 of $26.9 million, or 2.4% of sales, compared with net earnings of $17.0 million, or 1.6% of sales in the first quarter of fiscal 1993. At April 30, 1994 the Company operated 1,709 Eckerd Drug stores and 436 Eckerd Express Photo labs and Insta-Care Pharmacy Services a provider of pharmaceutical care to institutions. -8- Financial Condition and Liquidity With respect to the balance sheet at April 30, 1994 compared to the balance sheet at January 29, 1994, merchandise inventories decreased $35.2 million (net of the LIFO charge of $2.5 million) to $730.4 million, accounts receivable increased $7.6 million to $100.3 million and property, plant and equipment decreased $30.2 million to $476.9 million. The sale of the Vision Group operations reduced inventories, receivables and property, plant and equipment by approximately $12.5 million, $2.6 million and $26.7 million, respectively. The balance of the inventory reduction is a result of strong first quarter sales coupled with good inventory management and control. The receivables increase is attributable primarily to the increase in institutional and third-party prescription sales. Additions to property, plant and equipment of $7.1 million were primarily due to improvements to existing stores and facilities and the addition of new stores and retirements of fully depreciated assets were $10.5 million. At April 30, 1994, $620.4 million in borrowings were outstanding under the Credit Agreement ($410.9 million under Tranche A, $138.5 million under Tranche B, $60.0 million Revolving Loan borrowings and $11.0 million of banker's acceptances) and the Company had unused and available borrowing commitments thereunder of $151.6 million. The Tranche A loan commitment of $410.9 million (originally $500.0 million was reduced by $27.5 million from net proceeds from the IPO and $61.6 million of prepayments and scheduled payments) amortizes in unequal quarterly payments and matures in full in July 1999. The Tranche A loan commitment amortizes by $18.5 million by the end of fiscal year 1994, by $64.6 million for fiscal year 1995, by $83.1 million for fiscal years 1996, 1997 and 1998 and by $78.5 million for fiscal year 1999. The Tranche B term loan commitment of $138.5 million (originally $150.0 million was reduced by $8.3 million from net proceeds from the IPO and $3.2 million of prepayments) amortizes in unequal semi-annual payments and matures in full in June 2000. The Tranche B loan commitment amortizes by $9.1 million for fiscal year 1998, by $18.6 million for fiscal year 1999 and by $110.8 million for fiscal year 2000. The Revolving Loan commitment of $300.0 million matures in full at the end of July 1999. At April 30, 1994 the Company had excess availability under the Revolving Loan commitment and accordingly did not treat the $18.5 million Tranche A loan maturity as current. On April 30, 1994 the Company had working capital of $400.2 million and a current ratio of 1.9 to 1 compared to $306.6 million and 1.5 to 1 at January 29, 1994. Including the Company's first quarter net earnings of $26.9 million and $17.8 million for fiscal years 1994 and 1993, respectively, cash flow provided by operating activities declined $100.8 million for fiscal 1994 compared with fiscal 1993. This decline was principally due to the initiation of the inventory consignment program of approximately $52 million in the first quarter of fiscal 1993 and higher than normal cash payments to merchandise vendors in the first quarter of fiscal 1994, as a result of the reduction of accounts payable from an abnormally high balance at January 29, 1994 primarily from the timing of vendor payment due dates. -9- Net cash from investing activities for the first quarter of fiscal 1994 and 1993 provided $17.1 million and used $9.5 million, respectively. Uses of cash were principally for capital expenditures of $7.1 million and $9.8 million for fiscal 1994 and 1993, respectively, for additions to the Company's drug stores, and Express Photo units and improvements to existing stores. In fiscal 1994, a source of cash to the Company from investing activities was provided by a partial payment for the sale of the Vision Group operations. Capital expenditures planned for fiscal 1994 are expected to be approximately $45 million. Funds for the planned cash capital expenditures are expected to come from cash flow from operating activities and available borrowings, if necessary. In addition, the Company is financing expansion or upgrade of photoprocessing equipment through five-year operating leases in an amount of up to $10 million per year under a sale and leaseback agreement effective June, 1993. Approximately $1.7 million has been financed as operating leases during the first quarter of fiscal 1994. Such items were treated as capital expenditures during the first quarter of fiscal 1993. Financing activities for the first quarter of fiscal 1994 provided $18.5 million primarily from bank borrowings to support working capital needs and the reduction of $24.7 million of bank debit balances. Financing activities for the first quarter of fiscal 1993 used $52.0 million primarily to reduce bank borrowings and pay cash dividends on the Company's 14.5% cumulative redeemable preferred stock which was repurchased on July 15, 1993. The Company anticipates that the combination of amortization of intangibles and interest on debt will have a negative impact upon future earnings and, to a lesser degree, cash flow from operating activities. The Company does not believe, however, that the impact of such planned amortization and interest expenses upon earnings indicates a present or future impairment of liquidity. Based upon the Company's ability to generate cash flow from operating activities, the available unused portion of the working capital revolving credit loans under the Credit Agreement and other existing financing sources, the Company believes that it will have the funds necessary to meet the principal and interest payments on its debt as they become due and to operate and expand its businesses. REVIEW BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS The Company's independent public accountants have made a limited review of the financial information furnished herein in accordance with standards established by the American Institute of Certified Public Accountants. The Auditors' Report is presented on page 11 of this report. -10- Auditors' Report ---------------- The Board of Directors Eckerd Corporation: We have reviewed the condensed consolidated balance sheet of Eckerd Corporation and subsidiaries as of April 30, 1994 and the related condensed consolidated statements of operations and cash flows for the thirteen weeks ended April 30, 1994. These condensed consolidated financial statements are the responsibility of the Company's management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the accompanying condensed consolidated financial statements for them to be in conformity with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the consolidated balance sheet as of January 29, 1994, and the related consolidated statements of operations, stockholders' equity (deficit), and cash flows, for the year then ended (not presented herein); and in our report dated March 18, 1994, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of January 29, 1994 is fairly stated in all material respects in relation to the consolidated balance sheet from which it has been derived. KPMG PEAT MARWICK June 8, 1994 -11- PART II - OTHER INFORMATION Item 4. Submission of Matters to a Vote of Security Holders - - - ------------------------------------------------------------ The Company's Annual Meeting of Stockholders was held on May 17, 1994. As of that date proxies covering 27,550,745 shares of 31,037,880 shares outstanding were entitled to vote. The following Class I directors were elected to the Company's Board of Directors for a term of three years until the Annual Meeting in 1997.
Withheld Nominee In Favor Authority - - - ------- ---------- ------------ John W. Boyle 27,481,976 68,769 Dr. James T. Doluisio 27,512,372 38,373 Rupinder S. Sidhu 27,434,170 116,675
Donald F. Dunn, Alexis P. Michas and Francis A. Newman are Class II directors and their terms expire on the date of the Annual Meeting in 1995. Albert J. Fitzgibbons, III, Lewis W. Lehr and Stewart Turley are Class III directors and their terms expire on the date of the Annual Meeting in 1996. The results of voting by stockholders on the adoption of a resolution ratifying the selection of KPMG Peat Marwick by the Board of Directors as independent auditors of the Company for the ensuing year was as follows:
In Favor Opposed Abstained ---------- --------- --------- 27,536,603 8,899 5,243 Item 6. Exhibits and Reports on Form 8-K - - - ----------------------------------------- (a) Exhibits 15.1 Letter re unaudited interim financial information (b) Reports on Form 8-K The Company did not file any reports on Form 8-K during the thirteen weeks ended April 30, 1994. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ECKERD CORPORATION (Registrant) /s/Samuel G. Wright June 14, 1994 ----------------------------------- - - - ------------- Samuel G. Wright Date Senior Vice President-Finance (Principal Accounting Officer)
-12- Exhibit Index ------------- Eckerd Corporation Form 10-Q Exhibit No Description of Exhibit Page - - - ---------- ---------------------- ---- 15.1 Letter re unaudited interim financial information 14 -13- EX-15 2 LETTER: KPMG PEAT MARWICK, ACCOUNTANT'S AWARENESS
EXHIBIT 15.1 Eckerd Corporation and Subsidiaries 8333 Bryan Dairy Road Largo, FL 34647 Gentlemen: Re: Registration Statement on Form S-3 (No. 33-50223) Registration Statement on Form S-8 (No. 33-49977) Registration Statement on Form S-3 (No. 33-10721) Registration Statement on Form S-8 (No. 33-50755) Registration Statement on Form S-3 (No. 33-52939) With respect to the above referenced registration statements, we acknowledge our awareness of the incorporation by reference therein of our report dated June 8, 1994 related to our review of interim financial information, which report was included in the Form 10-Q of Eckerd Corporation and Subsidiaries for the thirteen weeks ended April 30, 1994. Pursuant to Rule 436(c) under the Securities Act of 1993, such report is not considered a part of a registration statement prepared or certified by an accountant or a report prepared or certified by an accountant within the meaning of sections 7 and 11 of the Act. Very truly yours, KPMG PEAT MARWICK Tampa, Florida June 14, 1994
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