EX-99.3 4 g67629a2ex99-3.txt UNAUDITED FINANCIAL STATEMENTS OF HANNAFORD BROS. 1 EXHIBIT 99.3 - HANNAFORD BROS. CO. FINANCIAL STATEMENTS The following unaudited financial statements of Hannaford Bros. Co. consist of a consolidated balance sheet as of July 1, 2000, a consolidated statement of earnings for the six month period ended July 1, 2000 and the six month period ended July 3, 1999, a consolidated statement of earnings for the three month periods ended July 1, 2000 and July 3, 1999 and consolidated statements of cash flows for the six month periods ended July 1, 2000 and July 3, 1999. The Company does not include footnote disclosures as it believes that this would substantially duplicate the disclosures contained in the most recent audited annual report for the fiscal period ended January 1, 2000. Unaudited Consolidated Statement of Earnings of Hannaford Bros. Co. (Dollars in thousands, except per share data)
(UNAUDITED) (UNAUDITED) 6 Months Ended 6 Months Ended July 1, 2000 July 3, 1999 Net sales $ 1,733,472 $ 1,693,449 Cost of goods sold $ 1,277,064 $ 1,249,509 Selling and administrative expenses $ 470,293 $ 358,470 ----------- ----------- Operating Income (loss) $ (13,885) $ 85,470 Interest expense, net $ 9,258 $ 12,045 ----------- ----------- Income (loss) before income taxes $ (23,143) $ 73,425 Provision for income taxes $ (8,404) $ 28,021 ----------- ----------- Net income (loss) $ (14,739) $ 45,404 Earnings per share: Basic $ (0.34) $ 1.08 Diluted $ (0.34) $ 1.06 Cash dividends $ 0.33 $ 0.33 Weighted average number of common shares outstanding Basic 42,992 42,223 Diluted 43,726 42,865
2 Unaudited Consolidated Statement of Earnings of Hannaford Bros. Co. (Dollars in thousands, except per share data)
(UNAUDITED) (UNAUDITED) 3 Months Ended 3 Months Ended July 1, 2000 July 3, 1999 Net sales $ 886,626 $ 854,325 Cost of goods sold $ 655,468 $ 628,109 Selling and administrative expenses $ 286,890 $ 179,222 ----------- ----------- Operating Income (loss) $ (55,732) $ 46,994 Interest expense, net $ 4,011 $ 5,780 ----------- ----------- Income (loss) before income taxes $ (59,743) $ 41,214 Provision for income taxes $ (22,451) $ 15,800 ----------- ----------- Net income (loss) $ (37,292) $ 25,414 Earnings per share: Basic $ (0.86) $ 0.60 Diluted $ (0.85) $ 0.59 Cash dividends $ 0.165 $ 0.165 Weighted average number of common shares outstanding Basic 43,434 42,208 Diluted 43,980 42,868
3 Unaudited Consolidated Balance Sheet of Hannaford Bros. Co. (Dollars in thousands)
(UNAUDITED) (UNAUDITED) July 1, 2000 January 1, 2000 Current Assets Cash and cash equivalents $ 130,463 $ 53,641 Receivables $ 26,694 $ 26,633 Inventories $ 197,278 $ 230,416 Prepaid expenses $ 4,705 $ 5,817 Deferred tax asset $ 14,492 $ 10,325 ----------- ----------- Total current assets $ 373,632 $ 326,832 ----------- ----------- Property, at cost, less accumulated depreciation $ 845,305 $ 892,871 Intangible assets, less accumulated amortization $ 50,088 $ 58,154 Other assets $ 72,978 $ 52,133 ----------- ----------- Total assets $ 1,342,003 $ 1,329,990 ----------- ----------- Liabilities and Shareholders' Equity Current Liabilities Short term borrowings $ 20,651 $ 20,391 Accounts payable $ 206,061 $ 187,344 Accrued expenses $ 45,833 $ 61,801 Capital lease obligations - current $ 2,430 $ 2,462 Long term debt - current $ -- $ -- Other liabilities - current $ 141 $ 1,256 ----------- ----------- Total current liabilities $ 275,115 $ 273,254 ----------- ----------- Long-term debt $ 156,380 $ 185,126 Capital lease obligations $ 59,107 $ 71,464 Deferred income tax liabilities $ (1,016) $ 32,676 Other liabilities $ 84,951 $ 40,282 ----------- ----------- Total liabilities $ 574,538 $ 602,802 ----------- ----------- Shareholders' equity Common stock, par value $.75 per share $ 32,819 $ 31,754 Additional paid-in-capital $ 167,747 $ 103,085 Preferred stock purchase rights $ 438 $ 423 Retained earnings $ 566,461 $ 595,478 Less common stock in treasury - 0 and 68 shares $ -- $ (3,552) ----------- ----------- Total shareholders' equity $ 767,465 $ 727,188 ----------- ----------- Total liabilities and shareholders' equity $ 1,342,003 $ 1,329,990 ----------- -----------
4 Unaudited Consolidated Statements of Cash Flows of Hannaford Bros. Co. (Dollars in thousands)
(UNAUDITED) 6 Months Ended 6 Months Ended July 1, 2000 July 3, 1999 Cash flows from operating activities : Net Loss $ (14,739) $ 45,404 Adjustments to reconcile net income to net cash provided by operating activities: Closed store expenses $ 100,121 $ -- Depreciation and amortization $ 50,531 $ 51,182 Decrease (increase) in inventories $ 29,872 $ (7,711) Decrease in receivables/prepayments $ 842 $ 3,846 Decrease (increase) in accounts payable and accrued expenses $ (3,564) $ 14,981 Decrease (increase) in income taxes payable $ (1,174) $ 1,985 Decrease (increase) in deferred taxes $ (37,363) $ (1,234) Other operating activities $ 2,900 $ (417) ----------- ----------- Net cash provided by operating activities $ 127,426 $ 108,036 ----------- ----------- Cash flows from investing activities : Acquisition of property, plant and equipment $ (66,705) $ (54,927) Sale of property, plant and equipment, net $ 8,536 $ 6,441 Increase in deferred charges $ (3,333) $ (1,249) Increase in computer software costs $ (2,702) $ (3,928) Purchase of Securities (available for sale) $ (7,765) $ -- ----------- ----------- Net cash used in investing activities $ (71,969) $ (53,663) ----------- ----------- Cash flows from financing activities : Principal payments under capital lease obligations $ (1,198) $ (981) Proceeds from issuance of long-term debt Decrease in lines of credit $ (19,700) $ -- Payments of long-term debt $ (8,787) $ (34,690) Dividends paid $ (14,265) $ (13,945) Purchase of treasury stock $ (553) $ (19,912) Issuance of treasury stock $ 2,530 Issuance of common stock $ 63,338 $ 8,630 ----------- ----------- Net cash provided by financing activities $ 21,365 $ (60,898) ----------- ----------- Net increase in cash and cash equivalents $ 76,822 $ (6,525) Cash and cash equivalents at beginning of period $ 53,641 $ 59,722 ----------- ----------- Cash and cash equivalents at end of period $ 130,463 $ 53,197 ----------- -----------