0000950131-95-002030.txt : 19950802 0000950131-95-002030.hdr.sgml : 19950802 ACCESSION NUMBER: 0000950131-95-002030 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950617 FILED AS OF DATE: 19950801 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUPERVALU INC CENTRAL INDEX KEY: 0000095521 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-GROCERIES & RELATED PRODUCTS [5140] IRS NUMBER: 410617000 STATE OF INCORPORATION: DE FISCAL YEAR END: 0224 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-05418 FILM NUMBER: 95557886 BUSINESS ADDRESS: STREET 1: 11840 VALLEY VIEW RD CITY: EDEN PRAIRIE STATE: MN ZIP: 55344 BUSINESS PHONE: 6128284000 MAIL ADDRESS: STREET 1: 11840 VALLEY VIEW ROAD CITY: EDEN PRAIRIE STATE: MN ZIP: 55344 FORMER COMPANY: FORMER CONFORMED NAME: SUPER VALU STORES INC DATE OF NAME CHANGE: 19920703 10-Q 1 FORM 10-Q JUNE 17, 1995 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period (12 weeks) ended June 17, 1995. 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 number 1-5418 SUPERVALU INC. (Exact name of registrant as specified in its Charter) DELAWARE 41-0617000 ................................................................................ (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 11840 Valley View Road, Eden Prairie, Minnesota 55344 ................................................................................ (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (612) 828-4000 ................................................................................ Former name, former address and former fiscal year, if changed since last report: N.A. ................................................................................ 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 ........... ........... The number of shares outstanding of each of the issuer's classes of Common Stock as of July 15, 1995 is as follows: Title of Each Class Shares Outstanding ------------------- ------------------ Common Shares 68,223,494
PART I - FINANCIAL INFORMATION ------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------- Item 1: Financial Statements ------------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF EARNINGS ------------------------------------------------------------------------------------- SUPERVALU INC. and Subsidiaries ------------------------------------------------------------------------------------- (In thousands, except per share data) First Quarter (16 Weeks) Ended ------------------------------------- June 17, 1995 June 18, 1994 ------------------------------------------------------------------------------------- Net sales $ 4,973,037 $ 4,991,115 Costs and expenses: Cost of sales 4,512,696 4,552,947 Selling and administrative expenses 344,596 321,952 Amortization of goodwill 5,457 4,225 Interest Interest expense 44,119 38,297 Interest income 7,092 7,655 ------------------------------------- Interest expense, net 37,027 30,642 ------------------------------------- Total costs and expenses 4,899,776 4,909,766 ------------------------------------- Earnings before equity in earnings of ShopKo and income taxes 73,261 81,349 Equity in earnings of ShopKo 2,468 2,293 ------------------------------------- Earnings before income taxes 75,729 83,642 Provision for income taxes Current 25,542 27,108 Deferred 4,236 5,921 ------------------------------------- Income tax expense 29,778 33,029 ------------------------------------- Net earnings $ 45,951 $ 50,613 ===================================== Net earnings per common share $ 0.66 $ 0.71 Weighted average number of common shares outstanding 69,225 71,633 Dividends declared per common share $ 0.235 $ 0.220 Supplemental information: After-tax LIFO income $ 208 $ 1,709 All data subject to year-end audit. See notes to consolidated financial statements.
CONSOLIDATED BALANCE SHEETS
-------------------------------------------------------------------------------------------------------- SUPERVALU INC. and Subsidiaries First Quarter as of Fiscal Year End -------------------------------------------------------------------------------------------------------- (In thousands) June 17, June 18, February 25, Assets 1995 1994 1995 -------------------------------------------------------------------------------------------------------- Current Assets Cash and cash equivalents $ 6,109 $ 3,672 $ 4,839 Receivables, less allowance for losses of $28,929 at June 17, 1995, $35,592 at June 18, 1994, and $29,268 at February 25, 1995 405,755 399,900 383,458 Inventories 1,093,752 1,199,843 1,109,791 Other current assets 137,405 91,955 148,252 ------------------------------------------- Total current assets 1,643,021 1,695,370 1,646,340 Long-term notes receivable 69,138 67,902 73,094 Long-term investment in direct financing leases 72,246 80,146 77,688 Property, plant and equipment Land 175,347 179,246 202,949 Buildings 905,384 823,998 868,379 Property under construction 40,316 85,961 51,640 Leasehold improvements 137,886 120,506 134,094 Equipment 951,370 915,034 970,779 Assets under capital leases 217,587 199,659 205,030 ------------------------------------------- 2,427,890 2,324,404 2,432,871 Less accumulated depreciation and amortization Owned property, plant and equipment 830,303 776,363 825,546 Assets under capital leases 40,170 38,679 36,027 ------------------------------------------- Net property, plant and equipment 1,557,417 1,509,362 1,571,298 Investment in ShopKo 182,066 172,619 182,839 Goodwill 509,251 480,587 515,009 Other assets 235,206 342,606 238,881 ------------------------------------------- Total assets $4,268,345 $4,348,592 $4,305,149 =========================================== Liabilities and Stockholders' Equity -------------------------------------------------------------------------------------------------------- Current Liabilities Notes payable $ 255,146 $ 239,226 $ 226,168 Accounts payable 978,639 935,190 1,003,106 Current maturities of long-term debt 10,181 9,060 9,277 Current obligations under capital leases 18,587 18,440 19,060 Other current liabilities 156,443 152,513 189,526 ------------------------------------------- Total current liabilities 1,418,996 1,354,429 1,447,137 Long-term debt 1,212,835 1,154,678 1,215,184 Long-term obligations under capital leases 249,949 253,895 244,582 Deferred income taxes -- 108,874 -- Other liabilities 210,290 187,037 205,024 Stockholders' equity Preferred stock 5,908 5,908 5,908 Common stock 75,335 75,335 75,335 Capital in excess of par value 12,688 13,224 12,717 Retained earnings 1,266,403 1,302,957 1,236,507 Treasury stock, at cost (184,059) (107,745) (137,245) ------------------------------------------- Total stockholders' equity 1,176,275 1,289,679 1,193,222 ------------------------------------------- Total liabilities and stockholders' equity $4,268,345 $4,348,592 $4,305,149 =========================================== Quarterly data subject to year-end audit. See notes to consolidated financial statements.
3 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY ------------------------------------------------------------------------------------------------------------- SUPERVALU INC. and Subsidiaries ------------------------------------------------------------------------------------------------------------- (In thousands, except per share data)
Capital in Preferred Common Excess of Treasury Retained Stock Stock Par Value Stock Earnings Total ------------------------------------------------------------------------------------------------------------- Balances at February 26, 1994 $5,908 $75,335 $12,966 $ (86,868) $1,268,117 $1,275,458 Net earnings -- -- -- -- 43,334 43,334 Sales of common stock under option plans -- -- (290) 1,435 -- 1,145 Cash dividends declared on common stock - $.925 per share -- -- -- -- (66,024) (66,024) Compensation under employee incentive plans -- -- 41 253 -- 294 Purchase of shares for treasury -- -- -- (52,065) -- (52,065) Other -- -- -- -- (8,920) (8,920) ------------------------------------------------------------------------------------------------------------- Balances at February 25, 1995 5,908 75,335 12,717 (137,245) 1,236,507 1,193,222 Net earnings -- -- -- -- 45,951 45,951 Sales of common stock under option plans -- -- (29) 593 -- 564 Cash dividends declared on common stock - $.235 per share -- -- -- -- (16,055) (16,055) Compensation under employee incentive plans -- -- -- (788) -- (788) Purchase of shares for treasury -- -- -- (46,619) -- (46,619) ------------------------------------------------------------------------------------------------------------- Balances at June 17, 1995 $5,908 $75,335 $12,688 $(184,059) $1,266,403 $1,176,275 ============================================================================================================= Interim data subject to year-end audit. See notes to consolidated financial statements.
4
CONSOLIDATED STATEMENTS OF CASH FLOWS --------------------------------------------------------------------------------------- SUPERVALU INC. and Subsidiaries --------------------------------------------------------------------------------------- (In thousands) --------------------------------------------------------------------------------------- Year-to-date (16 weeks ended) --------------------------------------------------------------------------------------- June 17, June 18, 1995 1994 --------------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES Net earnings $ 45,951 $ 50,613 Adjustments to reconcile net earnings to net cash provided by operating activities: Equity in earnings of ShopKo (2,468) (2,293) Dividends received from ShopKo 3,241 3,241 Depreciation and amortization 64,848 65,009 Provision for losses on receivables 1,699 1,425 Gain on sale of property, plant and equipment (1,587) (1,950) Deferred income taxes 4,236 6,250 Treasury shares contributed to employee incentive plan 66 - Changes in assets and liabilities: Receivables (23,996) (21,550) Inventory 16,039 (27,953) Other current assets 10,656 8,399 Direct finance leases 2,536 2,529 Accounts payable (24,026) 4,274 Other liabilities (11,549) (34,153) --------------------------------------------------------------------------------------- Net cash provided from operating activities 85,646 53,841 --------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES Additions to long-term notes receivable (9,982) (7,919) Payments received on long-term notes receivable 13,938 6,585 Proceeds from sale of property, plant and equipment 31,063 14,657 Purchase of property, plant and equipment (57,787) (61,619) Business acquisitions, net of cash acquired - (58,697) Other investing activities (4,393) (25,403) --------------------------------------------------------------------------------------- Net cash used in investing activities (27,161) (132,396) --------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES Net issuance of short-term notes payable 28,978 212,588 Repayment of long-term debt (1,445) (75,296) Reduction of obligations under capital leases (5,100) (4,746) Payments for purchase of common stock under option plans (309) (829) Dividends paid (32,720) (31,643) Payment for purchase of treasury stock (46,619) (20,693) --------------------------------------------------------------------------------------- NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (57,215) 79,381 --------------------------------------------------------------------------------------- Net increase in cash and cash equivalents 1,270 826 Cash and cash equivalents at beginning of year 4,839 2,846 --------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT END OF FIRST QUARTER $ 6,109 $ 3,672 =======================================================================================
All data subject to year-end audit. See notes to consolidated financial statements. 5 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Accounting Policies ------------------- The summary of significant accounting policies is included in the notes to consolidated financial statements in the 1995 annual report of SUPERVALU INC. ("SUPERVALU" or the "company"). Restructure and Other Charges ----------------------------- In December 1994, restructuring and other charges totaling $244.0 million were incurred for the implementation of the plan formulated under the ADVANTAGE project, the sale, closure or restructure of certain retail businesses and the recognition of certain asset impairments. The aggregate charges included $204.8 million for activities under the restructuring plan. Management's objective under the ADVANTAGE project is to fundamentally change its business processes to improve the effectiveness and efficiency of the company's food distribution system thus lowering the cost of goods to the company's customers. Its retail food objective is to improve retail performance by eliminating certain operations and assets that do not add shareholder value and focusing on building its successful retail formats. The charges included $53.1 million for severance, pension and outplacement which is based on the projected impact of the plan on employee levels in both food distribution and retail food. The company expects approximately 4,300 employees to be eliminated over an 18 month period under the re-engineering efforts, 1,700 of which are employed in retail food operations. During the first quarter of fiscal 1996, approximately 853 positions were eliminated which resulted in severance and outplacement payments of $1.0 million. Also included in the charge is a $20.0 million provision in food distribution which represents expected losses on the sale of tangible assets and expenses under non-cancelable leases as a result of the strategic shift. Expenditures of $1.4 million were incurred during the first quarter of fiscal 1996 for non-cancelable leases and losses on disposition of assets. The restructuring charges included a $87.8 million provision for property and lease discontinuances at retail locations, resulting primarily from various exit strategies and payment of portions of non-cancelable lease obligations. Approximately 30 retail stores were expected to be sold or closed, primarily in fiscal 1995 and 1996. At the end of 1995, six of the stores had been closed and during the first quarter of 1996, an additional two stores were closed and five stores were in the process of closing. The company is in the process of closing its four MAX CLUB warehouse membership stores which were announced to be closing in May following a liquidation sale in each store. During the first quarter of fiscal 1996, charges against the reserve were $12.5 million which related to the closedown of retail locations. The retail units covered by the reserve had aggregate sales and pre-tax losses of $54.9 and $2.6 million, respectively, for the first quarter, compared with $83.6 and $4.0 million for the same period last year. 6 The final component of the aggregate restructuring charges was a $43.9 million impairment provision representing the effect of the strategic shift on the recoverability of certain assets. The company holds land for development, transition stores for wholesale market share, certain warehouse properties and miscellaneous sites the majority of which are expected to be disposed of by the end of the second quarter. During the first quarter of fiscal 1996, $1.5 million was charged against the reserve for carrying costs and losses on disposition of property. Cash expenditures related to the restructuring plan were $2.9 million during the first quarter of fiscal 1996. Statement of Registrant ----------------------- The data presented herein is unaudited but, in the opinion of management, includes all adjustments necessary for a fair presentation of the consolidated financial position of the company and its subsidiaries at June 17, 1995 and June 18, 1994 and the results of the company's operations and cash flows for the periods then ended. These interim results are not necessarily indicative of the results of the fiscal years as a whole. A limited review of this data has been performed by the company's independent certified public accountants, Deloitte & Touche LLP. A copy of their report is attached as an exhibit to this report. 7 Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations --------------------------------------------------------------- RESULTS OF OPERATIONS --------------------- The following table sets forth items from the company's Consolidated Statements of Earnings as percentages of net sales:
-------------------------------------------------------------------------------- First Quarter (16 weeks) Ended -------------------------------------------------------------------------------- Fiscal Fiscal 1996 1995 -------------------------------------------------------------------------------- Net sales 100.00% 100.00% Cost of sales (90.74) (91.22) Selling and administrative expenses (7.04) (6.54) Interest expense (.89) (.76) Interest income .14 .15 -------------------------------------------------------------------------------- Earnings before equity in earnings of ShopKo, and income taxes 1.47 1.63 Equity in earnings of ShopKo .05 .04 Provision for income taxes (.60) (.66) -------------------------------------------------------------------------------- Net earnings .92% 1.01% ================================================================================
NET SALES Net sales for the first quarter decreased .4% from the first quarter of last year. Food distribution net sales decreased 1.9% from last year due to competitive market conditions at the retail level and the sales reductions arising from last year's three facility consolidations. Food price inflation, as measured by the company, was zero for the quarter compared to deflation of .8% last year. Retail food net sales increased 11.5% over the first quarter of last year. The increase was primarily due to the acquisitions of Hyper Shoppes, Inc. and Texas T Stores and new store openings. However, this increase was partially offset by a decline in same-store sales of approximately 1% which was primarily due to reduced sales in stores announced to be closing and competitive pressures in certain markets.
Net Sales by Segment -------------------------------------------------------------------------------- (In thousands) First Quarter (16 weeks) -------------------------------------------------------------------------------- June 17, 1995 June 18, 1994 Net Sales % of Total Net Sales % of Total -------------------------------------------------------------------------------- Food distribution $4,446,127 89.4 % $4,533,909 90.8 % Retail food 1,260,889 25.4 % 1,131,111 22.7 % Less: Eliminations (733,979) (14.8)% (673,905) (13.5)% -------------------------------------------------------------------------------- Total net sales $4,973,037 100.0 % $4,991,115 100.0 % ================================================================================
8 GROSS PROFIT Gross profit as a percentage of net sales increased to 9.3% in the first quarter, compared with 8.8% in the first quarter of fiscal 1995. The increase was due principally to the growing proportion within the company's total sales mix of the higher-margined retail food business, which represented 25% of total sales in the first quarter of fiscal 1996, compared with 23% in the first quarter of last year. Food distribution gross profit margin was relatively flat, positively affected by increased manufacturing allowances and the growth of Save-A-Lot. These positive impacts were largely offset by a reduced LIFO credit. The retail food gross profit margin increased from last year primarily due to the improved mix of higher gross margin items at Cub Foods stores. SELLING AND ADMINISTRATIVE EXPENSES Selling and administrative expenses were 7.0% of net sales for the quarter compared with 6.5% in the first quarter last year. The higher percentage was primarily due to the increased proportion of the company's retail food segment which operates at a higher selling and administrative expense percentage than the food distribution segment. Retail food selling and administrative expenses as a percent of net sales were higher than last year primarily due to increased advertising expense resulting from competitive pressures and higher promotional activity associated with new store openings. The increase in retail food expenses was also due to higher supply costs resulting from the increased cost of paper and packaging supplies. Expenses of $5.5 million related to the ADVANTAGE project were incurred during the current quarter, compared with $3.8 million last year. OPERATING EARNINGS The company's pre-tax operating earnings (earnings before interest, corporate expenses, equity in earnings of ShopKo Stores, Inc. ("ShopKo"), and taxes) decreased 3.2% to $117.2 million for the first quarter of fiscal 1996. Food distribution operating earnings decreased 3.0% in the first quarter from the previous year due to a reduced LIFO credit, the softness in sales and pre-tax expenses of $1.6 million related to the ADVANTAGE project and charged to this segment. Retail food operating earnings decreased 4.5% in the first quarter over last year due to restructuring activity at Laneco and competitive pressures in certain markets. INTEREST INCOME AND EXPENSE Interest income was $7.1 million in the first quarter of fiscal 1996, down slightly from last year's interest income of $7.7 million. Interest expense increased to $44.1 million in the first quarter, compared with $38.3 million in the prior year, reflecting higher short-term rates and increased debt levels. 9 EQUITY IN EARNINGS OF SHOPKO SUPERVALU's share of ShopKo net earnings increased to $2.5 million in the first quarter from $2.3 million in the first quarter of last year. Sales increased 8.9% primarily due to strong results from the prescription benefit management business. ShopKo reported total net earnings of $5.4 million compared with $5.0 million last year. The increase in net earnings was due to strong sales and expense control initiatives related to store and central retail operations. These positive effects were partially offset by a reduced gross margin percentage due to the impact of the lower gross margin prescription benefit management sales and a heavier weighting toward promotional sales. INCOME TAXES The effective tax rate decreased slightly in the first quarter of 1996 to 39.3% from 39.5% in the first quarter of 1995. The slight decrease in the effective tax rate was principally due to the increased contribution from ShopKo. NET EARNINGS Net earnings for the first quarter of fiscal 1996 were $46.0 million compared with last year's earnings of $50.6 million. The decrease in net earnings was primarily due to higher interest expense, a reduced LIFO credit, increased expenses related to the ADVANTAGE project and the softness in sales. In relation to the ADVANTAGE project, the company anticipates that an additional $9 to $11 million after-tax will be used for related costs during fiscal 1996. The company currently anticipates a contribution from this project in fiscal 1997. LIQUIDITY AND CAPITAL RESOURCES ------------------------------- Internally generated funds, principally from the company's food distribution business, continue to be the major source of capital for liquidity and capital growth. Cash provided from operations for the first quarter was $85.6 million compared with $53.8 million last year. The increase was primarily due to the reduction of inventory related to the closing of retail stores. Cash provided from operations was primarily used to finance capital expenditures of $57.5 million and pay dividends of $32.7 million. In December 1994, the Board of Directors approved a new treasury stock purchase program. The company may repurchase up to 5.0 million shares which may be used for any corporate purpose. During the first quarter of fiscal 1996, the company repurchased 1.8 million shares at a cost of approximately $46.6 million. The company has purchased a total of 3.3 million shares under this program. The company financed the purchase of the treasury stock primarily from the sale of surplus and under-utilized property, plant and equipment. 10 During the first quarter, capital expenditures related to the ADVANTAGE project were $2.6 million. The company intends to invest approximately $100 million in the project during fiscal 1996. The monies will be used to fund regional facilities, technology and various mechanization systems. The company expects that the investment in ADVANTAGE will be recovered by the reduction in inventory and property levels. SUPERVALU will continue to use short-term and long-term debt as a supplement to internally generated funds to finance its activities. To that end, the company has a "shelf registration" in effect pursuant to which the company could sell an additional $400 million of long-term debt without further registration. The company has $300 million of debt due in November of 1995, which it intends to refinance by utilizing the existing shelf registration or the available revolving credit agreement. The use of available revolving credit of $400 million, the shelf registration or any other long-term debt will depend on management's views with respect to long-term capital needs and the relative attractiveness of short-term versus long-term interest rates. Management does not anticipate the need for any additional long-term external financing except for leases or if significant acquisitions are completed. The company's financial position and long-term debt ratings are strong, with an A3 rating from Moody's Investors Services, Inc. During the first quarter of fiscal 1996, Standard and Poor's Ratings Group lowered its ratings on the company's long-term debt to BBB+ from A and commercial paper to A-2 from A-1. The Standard and Poor's Ratings Group announced that the downgrade reflected the general decline in profitability of the food wholesaling industry, as well as the company's higher debt levels and expenses related to the ADVANTAGE project. These changes do not impair the company's ability to obtain financing and are expected to have only a minimal impact on the company's borrowing costs in the future. These strong ratings, the available credit facilities and internally- generated funds provide the company with the financial flexibility to meet unexpected liquidity needs. 11 PART II - OTHER INFORMATION --------------------------- Item 4. Submission of Matters to a Vote of Security Holders. --------------------------------------------------- The Registrant held its Annual Meeting of Stockholders on June 28, 1995 at which the stockholders took the following actions: (a) elected Herman Cain, Stephen D. Agostino, Charles Lillis and Michael Wright for terms expiring in 1998. The votes cast for and withheld with respect to each such Director were as follows:
Votes For Votes Withheld ---------- -------------- Herman Cain 59,119,185 597,505 Stephen D'Agostino 59,103,711 612,979 Charles Lillis 59,073,240 643,450 Michael Wright 59,050,599 666,091
The Directors whose terms continued after the meeting are as follows: Edwin C. Gage, Vernon H. Heath, William A. Hodder, Garnett L. Keith, Jr., Richard L. Knowlton, Harriet Perlmutter, Carole F. St. Mark and Winston R. Wallin. (b) ratified, by a vote of 59,355,871 for, 100,856 against and 259,963 abstaining, the appointment of Deloitte & Touche LLP as the independent auditors of Registrant for the fiscal year ending February 24, 1996. (c) approved by a vote of 35,673,498 for, 18,726,308 against and 1,027,085 abstaining the shareholder resolution relating to the Company's Preferred Share Purchase Rights Plan. Reference is hereby made to the Proxy Statement dated May 25, 1995, filed with the Commission pursuant to Regulation 14A, for further information regarding these proposals approved by the stockholders at the Annual Meeting. Item 6. Exhibits and Reports on Form 8-K. ------ -------------------------------- (a) Exhibits filed with this Form 10-Q: 12 15. Letters from Deloitte & Touche regarding unaudited interim financial information. 27. Financial Data Schedule. (b) Reports on Forms 8-K. No reports were filed on Form 8-K during the quarter ended June 17, 1995. 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. SUPERVALU INC. (Registrant) By: /s/ Isaiah Harris --------------------------------------- Isaiah Harris Date: August 1, 1995 Vice President and Controller (Chief Accounting Officer and duly authorized officer of Registrant) 13 EX-15 2 LETTERS FROM DELOITTE & TOUCHE LLP Exhibit 15 to Quarterly Report on Form 10-Q Page 1 of 2 LETTER REGARDING UNAUDITED INFORMATION Stockholders and Board of Directors SUPERVALU INC. Eden Prairie, Minnesota We have made a review, in accordance with standards established by the American Institute of Certified Public Accountants, of the unaudited interim information of SUPERVALU INC. and subsidiaries for the periods ended June 17, 1995 and June 18, 1994, as indicated in our report dated July 25, 1995. Because we did not perform an audit, we expressed no opinion on that information. We are aware that our report referred to above, which is included in your Quarterly Report on Form 10-Q for the quarter ended June 17, 1995, is incorporated by reference in Registration Statements No. 33-28310, No. 33-16934, No. 2-56896, and No. 33-50071 on Form S-8 and No. 33-56415 on Form S-3. We also are aware that the aforementioned report, pursuant to Rule 436(c) under the Securities Act of 1933, is not considered a part of the Registration Statements prepared or certified by an accountant or a report prepared or certified by an accountant within the meaning of Sections 7 and 11 of that act. /s/ Deloitte & Touche LLP ------------------------- Deloitte & Touche LLP Minneapolis, Minnesota July 25, 1995 [LETTERHEAD OF DELOITTE & TOUCHE] INDEPENDENT ACCOUNTANTS' REVIEW REPORT Stockholders and Board of Directors SUPERVALU INC. Eden Prairie, Minnesota We have reviewed the accompanying consolidated balance sheets of SUPERVALU INC. (the Company) and subsidiaries as of June 17, 1995 and June 18, 1994 and the related consolidated statements of earnings and cash flows for the 16-week periods then ended and the consolidated statement of stockholders' equity for the interim period ended June 17, 1995. These consolidated financial statements are the responsibility of the Company's management. We conducted our reviews 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 of 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 reviews, we are not aware of any material modifications that should be made to such 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 of SUPERVALU INC. and subsidiaries as of February 25, 1995 and the related consolidated statements of earnings, stockholders' equity, and cash flows for the year then ended (not presented herein), and in our report dated April 10, 1995, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of February 25, 1995 and the consolidated statement of stockholders' equity for the year then ended is fairly stated, in all material respects, in relation to the consolidated financial statements from which it has been derived. /s/ Deloitte & Touche LLP ---------------------------- Deloitte & Touche LLP July 25, 1995 [LOGO LETTERHEAD OF DELOITTE & TOUCHE] EX-27 3 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED BALANCE SHEETS AS OF JUNE 17, 1995 AND THE CONSOLIDATED STATEMENT OF EARNINGS FOR THE 16 WEEKS ENDED JUNE 17, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1 4-MOS FEB-24-1996 JUN-17-1995 6,109 0 434,684 (28,929) 1,093,752 1,643,021 2,427,890 (870,473) 4,268,345 1,418,996 1,462,784 75,335 0 5,908 1,095,032 4,268,345 4,973,037 4,973,037 4,512,696 4,512,696 0 1,699 44,119 75,729 29,778 45,951 0 0 0 45,951 0.66 0.66