-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, StU9Ty7EdCufMf7DaEzbCLjcJZhUuZ0doDS74ltpVmWTB38NDy7d//wno0Q2YjnE z63znUaNENyuJyadr5z6KA== 0001047469-99-019413.txt : 19990512 0001047469-99-019413.hdr.sgml : 19990512 ACCESSION NUMBER: 0001047469-99-019413 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990327 FILED AS OF DATE: 19990511 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NASH FINCH CO CENTRAL INDEX KEY: 0000069671 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-GROCERIES & RELATED PRODUCTS [5140] IRS NUMBER: 410431960 STATE OF INCORPORATION: DE FISCAL YEAR END: 0102 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-00785 FILM NUMBER: 99617431 BUSINESS ADDRESS: STREET 1: 7600 FRANCE AVE STREET 2: PO BOX 355 CITY: SOUTH MINNEAPOLIS STATE: MN ZIP: 55435-0355 BUSINESS PHONE: 6128320534 FORMER COMPANY: FORMER CONFORMED NAME: NASH CO DATE OF NAME CHANGE: 19710617 10-Q 1 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) /X/ OF THE SECURITIES EXCHANGE ACT OF 1934 For the twelve weeks ended March 27, 1999 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) / / OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 0-785 NASH-FINCH COMPANY (Exact Name of Registrant as Specified in its Charter) DELAWARE 41-0431960 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 7600 France Ave. South, Edina, Minnesota 55435 (Address of principal executive offices) (Zip Code) (612) 832-0534 (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 --- --- Number of shares of common stock outstanding at May 4, 1999: 11,342,431 shares PART I - FINANCIAL INFORMATION This report is for the twelve week interim period beginning January 3, 1999, through March 27, 1999. The accompanying financial information has been prepared in conformity with generally accepted accounting principles and practices, and methods of applying accounting principles and practices, (including consolidation practices) as reflected in the financial information included in the Company's Annual Report on Form 10-K, filed with the Securities and Exchange Commission for the preceding fiscal year. The financial statements included in this quarterly report include all adjustments which are, in the opinion of management, necessary to a fair presentation of the Company's financial position and results of operations for the interim period. The information contained herein has not been audited by independent auditors and is subject to any adjustments which may develop in connection with the annual audit of its accounts by the Company's independent auditors. NASH FINCH COMPANY AND SUBSIDIARIES Condensed Consolidated Statements of Operations (In thousands, except per share amounts)
Twelve Weeks Ended ---------------------------- March 27, March 28, 1999 1998 ------------ ------------- Income Net sales $ 922,846 923,525 Other revenues 11,951 9,441 ------------ ------------- Total revenues 934,797 932,966 Cost and expenses: Cost of sales 845,076 840,886 Selling, general and administrative 70,942 68,430 Depreciation and amortization 9,726 10,806 Interest expense 6,983 6,860 ------------ ------------- Total costs and expenses 932,727 926,982 Earnings from continuing operations before income taxes and extraordinary charge 2,070 5,984 Income taxes 878 2,265 ------------ ------------- Earnings from continuing operations before extraordinary charge 1,192 3,719 Discontinued operations: Loss from discontinued operations, net of income tax (benefit) - (1,091) ------------ ------------- Earnings before extraordinary charge 1,192 2,628 Extraordinary charge from early extinguishment of debt, net of income tax benefit of $3,951 - 5,569 ------------ ------------- Net earnings (loss) $ 1,192 (2,941) ============ ============= Basic and diluted earnings (loss) per share: Earnings from continuing operations $ 0.11 0.33 Earnings (loss) from discontinued operations - (0.10) ------------ ------------- Earnings before extraordinary charge 0.11 0.23 Extraordinary charge from early extinguishment of debt, net of income tax benefit - (0.49) ------------ ------------- Net earnings (loss) per share $ 0.11 (0.26) ============ ============= Weighted average number of common shares outstanding and common equivalent shares outstanding: - Basic 11,332 11,301 Diluted 11,332 11,362
- ------------------------------------------------------------ See accompanying notes to consolidated financial statements. NASH FINCH COMPANY AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except per share amounts)
March 27, January 2, Assets 1999 1999 - ------ ------------------ -------------- (unaudited) Current assets: Cash and cash equivalents $ 11,415 848 Accounts and notes receivable, net 164,262 169,748 Inventories 256,150 267,040 Prepaid expenses 20,007 13,154 Deferred tax assets 17,468 16,318 ------------------ -------------- Total current assets 469,302 467,108 Investments in affiliates 4,915 4,805 Notes receivable, noncurrent 13,473 12,936 Property, plant and equipment: Land 27,771 25,386 Buildings and improvements 139,337 130,988 Furniture, fixtures and equipment 298,300 302,450 Leasehold improvements 60,614 61,983 Construction in progress 5,397 10,107 Assets under capitalized leases 26,043 24,878 ------------------ -------------- 557,462 555,792 Less accumulated depreciation and amortization (336,316) (333,414) ------------------ -------------- Net property, plant and equipment 221,146 222,378 Intangible assets, net 68,464 69,141 Investment in direct financing leases 15,983 16,155 Deferred tax asset - net 29,978 31,908 Other assets 8,429 8,664 ------------------ -------------- Total assets $ 831,690 833,095 ================== ============== Liabilities and Stockholders' Equity - ------------------------------------ Current liabilities: Outstanding checks $ 22,668 33,329 Short-term debt payable to banks - 5,525 Current maturities of long-term debt and capitalized lease obligations 2,456 2,563 Accounts payable 196,804 189,382 Accrued expenses 99,764 97,683 Income taxes 3,745 2,991 ------------------ -------------- Total current liabilities 325,437 331,473 Long-term debt 298,606 293,280 Capitalized lease obligations 34,921 34,667 Deferred compensation 5,900 6,450 Other 10,167 10,752 Stockholders' equity: Preferred stock - no par value Authorized 500 shares; none issued - - Common stock of $1.66 2/3 par value Authorized 25,000 shares, issued 11,575 shares in 1999 and 1998 19,292 19,292 Additional paid-in capital 17,947 17,944 Restricted stock (102) (113) Retained earnings 121,356 121,185 ------------------ -------------- 158,493 158,308 Less cost of 233 shares and 234 shares of common stock in treasury, respectively (1,834) (1,835) ------------------ -------------- Total stockholders' equity 156,659 156,473 ------------------ -------------- Total liabilities and stockholders' equity $ 831,690 833,095 ================== ==============
- ------------------------------------------------------------ See accompanying notes to consolidated financial statements. NASH FINCH COMPANY AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands)
Twelve Weeks Ended ------------------------------- March 27, March 28, 1999 1998 ------------- -------------- Operating activities: Net earnings $ 1,192 (2,941) Adjustments to reconcile net income to net cash provided by operating activities: Provision for (use of) special charge (3,861) (850) Discontinued operations (549) Depreciation and amortization 9,726 11,078 Provision for bad debts 885 160 Provision for losses (recovery from) closed lease locations (715) (680) Extraordinary charges - extinguishment of debt - 9,520 Deferred income taxes 780 (3,268) Deferred compensation (551) (86) (Earnings) loss of equity investments (60) (220) Other (1,305) 108 Changes in operating assets and liabilities: Accounts and notes receivable 3,745 9,127 Inventories 12,171 (190) Prepaid expenses (6,823) (1,160) Accounts payable 7,423 25,698 Accrued expenses 6,850 5,037 Income taxes 754 (737) ------------- -------------- Net cash provided by operating activities 29,662 50,596 ------------- -------------- Investing activities: Disposal of property, plant and equipment 2,666 2,189 Additions to property, plant and equipment excluding capital leases (7,549) (13,474) Business acquired, net of cash acquired (3,406) - Loans to customers (5,938) (5,389) Payments from customers on loans 6,143 5,035 Sale (repurchase) of receivables 300 (11,700) Other 414 (30) ------------- -------------- Net cash used for investing activities (7,370) (23,369) ------------- -------------- Financing activities: Proceeds from long-term debt 449 - (Payments) proceeds from revolving debt 5,000 100,000 Dividends paid (1,021) (2,038) (Payments) proceeds from short-term debt (5,525) 4,855 Payments of long-term debt (272) (106,570) Payments of capitalized lease obligations (384) (370) Extinguishment of debt (9,378) (Increase) decrease in outstanding checks (10,661) (14,161) Other 688 275 ------------- -------------- Net cash (used in) provided by financing activities (11,726) (27,387) ------------- -------------- Net increase (decrease) in cash $ 10,566 (160) ============= ==============
- ------------------------------------------------------------ See accompanying notes to consolidated financial statements. NASH FINCH COMPANY AND SUBSIDIARIES Consolidated Statements of Stockholders' Equity
- ------------------------------------------------------------------------------------------------------------------------------------ Fiscal period ended March 27, 1999 January 2, 1999 and January 3, 1998 Foreign (In thousands, except per share amounts) Common Stock Additional currency --------------------- paid-in Retained translation Shares Amount capital earnings adjustment - ------------------------------------------------------------------------------------------------------------------------------------ Balance at December 28, 1996 11,574 $19,290 16,816 200,322 (950) Net earnings (loss) - - - (1,228) - Dividend declared of $.72 per share - - - (8,110) - Treasury stock issued upon exercise of options - - 354 - - Amortized compensation under restricted stock plan - - - - - Repayment of notes receivable from holder of restricted stock - - - - - Distribution of stock pursuant to performance awards - - 460 - - Treasury stock purchased - - - - - Foreign currency translation adjustment - - - - 950 Other 1 2 18 - - ----------- ------------ -------------- ------------- ---------- Balance at January 3, 1998 11,575 $19,292 17,648 190,984 - Net earnings (loss) - - - (61,637) - Dividend declared of $.72 per share - - - (8,162) - Treasury stock issued upon exercise of options - - 47 - - Amortized compensation under restricted stock plan - - - - - Repayment of notes receivable from holders of restricted stock - - - - - Distribution of stock pursuant to performance awards - - 246 - - Treasury stock purchased - - - - - Other 3 - - ----------- ------------ -------------- ------------- ---------- Balance at January 2, 1999 11,575 $19,292 17,944 121,185 - Net earnings - - - 1,192 - Dividend declared of $.09 per share - - - (1,021) - Amortized compensation under restricted stock plan - - - - - Repayment of notes receivable from holders of restricted stock - - - - - Distribution of stock pursuant to performance awards - - 3 - - ----------- ------------ -------------- ------------- ---------- Balance at March 27, 1999 (unaudited) 11,575 $19,292 17,947 121,356 - =========== ============ ============== ============= ========== Treasury Stock Total Restricted ----------------------- stockholders' Stock Shares Amount equity - ------------------------------------------------------------------------------------------------------------- Balance at December 28, 1996 (500) (307) $(2,117) 232,861 Net earnings (loss) - - - (1,228) Dividend declared of $.72 per share - - - (8,110) Treasury stock issued upon exercise of options - 29 143 497 Amortized compensation under restricted stock plan 29 - - 29 Repayment of notes receivable from holder of restricted stock 80 - - 80 Distribution of stock pursuant to performance awards - 30 148 608 Treasury stock purchased - (4) (89) (89) Foreign currency translation adjustment - - - 950 Other - - - 20 -------- --------- ------------ ----------- Balance at January 3, 1998 (391) (252) $(1,915) 225,618 Net earnings (loss) - - - (61,637) Dividend declared of $.72 per share - - - (8,162) Treasury stock issued upon exercise of options - 4 21 68 Amortized compensation under restricted stock plan 72 - - 72 Repayment of notes receivable from holders of restricted stock 206 - - 206 Distribution of stock pursuant to performance awards - 15 75 321 Treasury stock purchased - (1) (16) (16) Other - - - 3 -------- --------- ------------ ----------- Balance at January 2, 1999 (113) (234) $(1,835) 156,473 Net earnings - - - 1,192 Dividend declared of $.09 per share - - - (1,021) Amortized compensation under restricted stock plan 2 - - 2 Repayment of notes receivable from holders of restricted stock 9 - - 9 Distribution of stock pursuant to performance awards - 1 1 4 -------- --------- ------------ ----------- Balance at March 27, 1999 (unaudited) (102) (233) $(1,834) 156,659 ======== ========= ============ ===========
- ------------------------------------------------------------ See accompanying notes to consolidated financial statements. NASH FINCH COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 27, 1999 NOTE 1 The accompanying financial statements include all adjustments which are, in the opinion of management, necessary to present fairly the financial position of the Company and its subsidiaries at March 27, 1999, and January 2, 1999, and the result of operations for the 12-weeks ending March 27, 1999 and March 28, 1998, and the changes in cash flows for the 12-week periods ending March 27, 1999 and March 28, 1998, respectively. All material intercompany accounts and transactions have been eliminated in the consolidated financial statements. Results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. NOTE 2 The Company uses the LIFO method for valuation of a substantial portion of inventories. If the FIFO method had been used, inventories would have been approximately $47.4 million and $47.1 million higher at March 27, 1999 and January 2, 1999, respectively. NOTE 3 The following table sets forth the computation of basic and diluted earnings per share.
Twelve Weeks Ended ------------------------------- March 27, March 28, 1999 1998 ------------------ ----------------- Numerator: Earnings from continuing operations $ 1,192 3,719 ------------------ ----------------- Denominator: Denominator of basic earnings per share; weighted-average shares 11,332 11,301 Effect of dilutive securities: Employee stock options - 35 Contingent - 26 ------------------ ----------------- Dilutive common shares - 61 Denominator for diluted earnings per share; adjusted weighted average shares 11,332 11,362 ================== ================= Basic earnings per share $ .11 .33 ================= ================== Diluted earnings per share $ .11 .33 ================== =================
NOTE 4 On December 29, 1997, a Receivables Purchase Agreement (the "Agreement") was executed by the Company, Nash Finch Funding Corporation (NFFC), a wholly owned subsidiary of the Company, and a certain third party purchaser (the "Purchaser") pursuant to a securitization transaction. The Agreement is a five-year, $50 million revolving receivable purchase facility allowing the Company to sell additional receivables to NFFC, and NFFC to sell, from time to time, variable undivided interest in these receivables to the Purchaser. NFFC maintains a variable undivided interest in these receivables and is subject to losses on its share of the receivables and, accordingly, maintains an allowance of doubtful accounts. As of January 2, 1999 and March 27, 1999 the Company had sold $45.7 million and $45.4 million, respectively, of accounts receivable on a non-recourse basis to NFFC. NFFC sold $36.8 million and $37.1 million, respectively, of its undivided interest in such receivables to the Purchaser, subject to specified collateral requirements. NOTE 5 1998 SPECIAL CHARGES During the fourth quarter of 1998, the Company recorded special charges, totaling $68.5 million relative to abandonment and impairment of assets, and consolidation of certain warehouse and retail stores. During the first quarter, the Company closed distribution centers in Appleton, Wisconsin, Grand Island, Nebraska and Liberal, Kansas and closed three retail stores. Costs totaling $2.5 million incurred largely as a result of the closure of these units were charged to accrued expenses. At March 27, 1999, remaining accrued liabilities established as a result of the 1998 special charges totaled $24.2 million. 1997 SPECIAL CHARGES During the third quarter of 1997, the Company recorded special charges, totaling $31.3 million relative to asset impairment and consolidation of certain warehouses and retail stores. During the first quarter of 1999, costs totaling $1.1 million incurred as a result of the closing of certain warehouses and retail stores were charged to accrued expenses. At March 27, 1999, remaining accrued liabilities established for purposes of the 1997 special charges totaled $6.5 million. NOTE 6 Major Segments of the Business Twelve weeks ended March 27, 1999
All (In thousands) Wholesale Retail Military Other Totals - ------------------------------------------------------------------------------------------------------------ Revenues from external customers $ 543,255 162,521 224,175 568 930,519 Intra segment revenues 99,773 - - 1,177 100,950 Segment pretax profit (loss) 8,813 558 6,154 (181) 15,344
Twelve weeks ended March 28, 1998
All (In thousands) Wholesale Retail Military Other Totals - ------------------------------------------------------------------------------------------------------------ Revenues from external customers $ 553,660 171,048 206,141 553 931,402 Intra segment revenues 103,353 - - 649 104,002 Segment pretax profit (loss) 8,709 250 5,268 (14) 14,213
Reconciliation
(In thousands) 1999 1998 - ------------------------------------------------------------------------- PRETAX PROFIT OR LOSS Total profit for segments $ 15,344 14,213 Unallocated amounts Adjustment of inventory to LIFO (300) 600 Unallocated corporate overhead (12,974) (8,829) ============== ============= Income from continuing operations before income taxes $ 2,070 5,984 ============== =============
NOTE 7 On May 3, 1999 the Company announced an agreement to acquire 18 supermarkets owned by Erickson's Diversified Corporation ("Erickson") through a cash purchase of Erickson's stock. Erickson, with revenues of approximately $200 million, is headquartered in Hudson, Wisconsin and operates stores in Minnesota and Wisconsin. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS REVENUES Total revenues for the first quarter were $934.8 million, an increase of .2% over $933.0 million for the same period last year. Wholesale segment revenues were $543.3 million compared to $553.7 million for the year-ago period. The decline from the prior year quarter reflects the loss of an independent customer in Nebraska and the loss of business from a national chain in Colorado. Retail segment revenues were $162.5 million, a decline of 5.0% from $171.0 million a year ago. A net reduction of four retail stores contributed to the decline in year over year revenues. However, same store sales increased 2.0% compared to the first quarter last year. Military segment revenues increased 8.8% from $206.1 million in 1998 to $224.2 million in 1999. The increase is attributed to strong overseas business and the introduction of new product lines. GROSS MARGINS Gross margins for the quarter were 9.6% in 1999 compared to 9.9% in 1998. The lower margin reflects a growth in the proportion of lower margin wholesale and military business. During the quarter, combined wholesale and military business represented 82.1% of total consolidated revenues compared to 81.4% last year. Higher tobacco prices, which more than offset food price deflation, resulted in a LIFO charge of $.3 million this year, compared to a LIFO credit of $.5 million reported last year. SELLING, GENERAL AND ADMINISTRATIVE Selling, general and administrative expenses as a percent of total revenues were 7.6% compared to 7.3% last year. The current year quarter includes expenses of $3.1 million related to Year 2000 remediation. The Company also incurred non-recurring costs of $1.3 million primarily related to closing warehouses in Liberal, Kansas, Appleton, Wisconsin, and Grand Island, Nebraska. These costs could not be provided for as part of the Company's 1998 restructuring charge. The warehouses were closed in order to consolidate under utilized facilities and enhance warehouse productivity. DEPRECIATION EXPENSE Depreciation and amortization expense decreased 10% compared to last year. The decrease reflects a reduction in depreciable assets due to the closing of warehouses and retail stores since last year, and the write down of impaired assets as part of the restructuring charge recorded at the end of 1998. Amortization of goodwill and other intangibles for the current and prior year quarters was $1.5 million. INTEREST EXPENSE Interest expense for the quarter was $7.0 million, an increase of 1.8% over last year. The increased interest costs are attributed to higher average borrowing rates partially offset by lower borrowing levels compared to a year ago. EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EXTRAORDINARY CHARGE Earnings from continuing operations before income taxes and extraordinary charge were $2.1 million in 1999 compared to $6.0 million last year. The reduction is primarily attributed to Year 2000 remediation costs and non-recurring costs associated with the closing of certain facilities which could not be provided for as part of the 1998 restructuring charge. INCOME TAXES The effective income tax rate for 1999 is estimated at 42.4% compared to a tax rate benefit of 32.2% for 1998. The 1998 annual rate was significantly affected by losses related to the restructuring charges. EXTRAORDINARY CHARGE During the first quarter of 1998, the Company prepaid $106.3 million of senior notes, and paid prepayment premiums and wrote-off related deferred financing costs totaling $9.5 million. This transaction resulted in an extraordinary charge of $5.6 million, or $.49 per share, after income tax benefits of $3.9 million. DISCONTINUED OPERATIONS In October 1998, the Company adopted a plan to sell its produce growing and marketing subsidiary, Nash DeCamp Company. The Company is actively marketing this operation with an expected sale before mid-year 1999. At January 2, 1999 the Company recorded an estimated pretax loss resulting from the expected sale of Nash DeCamp Company of $27.5 million, which includes a provision for anticipated operating losses until disposal of $1.8 million. In the first quarter, Nash DeCamp Company reported operating losses of $.5 million which were applied against the provision. YEAR 2000 The Company has developed a remediation plan toward resolving Year 2000 issues. The plan addresses the modification and/or replacement of existing business critical software and the identification of the non-information technology systems that may be affected by Year 2000. In addition, the plan assesses the readiness of third parties and the related risks to the Company of their non-compliance. To expedite this Year 2000 solution, the Company has reallocated internal resources and has contracted outside resources to assist in the remediation effort. The Company's plan to assess and update systems for Year 2000 compliance consists of three major phases: 1) conducting a complete INVENTORY and assessment of potentially affected business areas, 2) REMEDIATION of affected systems and 3) TESTING remediated components. The chart below shows the percent completed of each phase as of the end of the first quarter 1999:
Inventory Remediation Testing ------------------- ------------------- ---------------- I/T Systems 100% 45% 37% Non I/T Systems 100% 50% 0%
The company expects to complete all mission-critical areas of the project in the third quarter of 1999 and is currently on schedule. The total cost for Year 2000 remediation is estimated at approximately $18.5 million, which includes $4.0 million for the purchase of new equipment that will be capitalized and $14.5 million that will be expensed. Project expenses totaling $3.0 million and $3.1 million were incurred in the fourth quarter of 1998 and the first quarter of 1999, respectively, primarily for internal and external costs associated with the modification of existing software. The total remaining expenditures associated with the Year 2000 project are estimated to be approximately $12.1 million. The costs or consequences of incomplete or untimely resolution of the Year 2000 issue may have a material effect on the Company's business, results of operations and financial condition. However, at this time, the Company is unable to measure the monetary impact of any such failure to comply or failure of other parties on which it is dependent. The Company is currently in the process of establishing and implementing contingency plans to provide viable alternatives for the Company's core business processes. The plans will describe the communications, operations and activities necessary in the event of a Year 2000 systems related failure. Contingency planning is currently 55 percent complete. Comprehensive contingency plans will be in place by the end of the second quarter of 1999. LIQUIDITY AND CAPITAL RESOURCES Historically, the Company has financed its capital needs through a combination of internal and external sources. These sources include cash flow from operations, short-term bank borrowings, various types of long-term debt and lease financing. Cash flow provided from operations totaled $29.7 million for the quarter compared to $50.6 million last year. The decline in operating cash flow resulted primarily from changes in working capital partially offset by higher net income for the quarter. Working capital was $143.8 million at the end of the quarter compared to $135.6 million at year end. The current ratio increased from 1.41 at the end of 1998 to 1.44 at the end of the first quarter. Other transactions affecting liquidity during the quarter include capital expenditures of $7.5 million, cash dividends of $1.0 million and the acquisition of five Iowa retail stores for approximately $3.4 million in cash. The Company believes that borrowing under the revolving credit facility, the sale of subordinated notes, other credit agreements, cash flows from operating activities and lease financing will be adequate to meet the Company's working capital needs, planned capital expenditures and debt service obligations for the foreseeable future. FORWARD-LOOKING STATEMENTS The information contained in this Form 10-Q Report includes forward-looking statements made under the safe harbor provisions of the Private Securities Litigation by the use of words like "believes," "expects," "may," "will," "should," "anticipates," or similar expressions, as discussions of strategy. Although such statements represent management's current expectations based on available data, they are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those anticipated. Such risks, uncertainties and other factors may include, but are not limited to, the ability to: meet debt service obligations and maintain future financial flexibility; respond to continuing competitive pricing pressures; retain existing independent wholesale customers and attract new accounts; address Year 2000 issues as they affect the Company, its customers and vendors; and fully integrate acquisitions and realize expected synergies. PART II - OTHER INFORMATION Items 1, 2, 3, 4 and 5 are not applicable. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. (a) EXHIBITS: 27.1 Financial Data Schedule (b) REPORT ON FORM 8-K Not applicable. 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. NASH-FINCH COMPANY Registrant Date: May 7, 1998 By /s/ John A. Haedicke ------------------------------------ John A. Haedicke Executive Vice President and Chief Financial and Administrative Officer By /s/ Lawrence A. Wojtasiak ------------------------------------ Lawrence A. Wojtasiak Controller NASH FINCH COMPANY EXHIBIT INDEX TO QUARTERLY REPORT ON FORM 10-Q For the Twelve Weeks Ended March 27, 1999
Item No. Item Method of Filing - -------- ---- ---------------- 27.1 Financial Data Schedule Filed herewith
EX-27 2 EXHIBIT 27
5 1,000 3-MOS JAN-01-2000 JAN-03-1999 MAR-27-1999 11,415 0 189,423 25,161 256,150 469,302 557,462 336,316 831,690 325,437 298,606 0 0 19,292 137,367 831,690 922,846 934,797 845,076 79,783 0 885 6,983 2,070 878 1,192 0 0 0 1,192 .11 .11
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