MONTVALE, N.J. — The Great Atlantic & Pacific Tea Company, Inc. (A&P, NYSE Symbol:GAP) today announced fiscal 2009 third quarter and year to date results for the 12 and 40 weeks ended December 5, 2009.
Sales for the third quarter were $2.0 billion versus $2.1 billion last year. Comparable store sales decreased 5.8%. For the third quarter, excluding non-operating items, adjusted EBITDA was $36 million versus $78 million last year. Adjusted loss from operations was $20.1 million versus adjusted income from operations of $17.4 million in last years third quarter. The non-operating items excluded from adjusted income from operations are listed on Schedule 3 of the press release and adjusted EBITDA is reconciled to net cash from operating activities on Schedule 4. For the third quarter, reported loss from continuing operations was $502.4 million which includes charges of $412.6 million for goodwill, trademark and long-lived asset impairment and $16 million for mark to market adjustments related to financial liabilities. Loss from continuing operations in the comparable period of the prior year totaled $3.8 million, and included income of $23 million for mark to market adjustments related to financial liabilities.
Sales for the 40 weeks year to date were $6.8 billion versus $7.2 billion in 2008. Comparable store sales decreased 4.2%. Excluding non-operating items, adjusted EBITDA was $180 million versus $241 million last year. Adjusted loss from operations was $11.8 million versus adjusted income from operations of $39.9 million last year. The non-operating items excluded from adjusted income from operations are listed on Schedule 3 of the press release and adjusted EBITDA is reconciled to net cash from operating activities on Schedule 4. Year to date reported loss from continuing operations was $622.9 million which includes charges of $412.6 million for goodwill, trademark and long-lived asset impairment and $25 million for mark to market adjustments related to financial liabilities. Loss from continuing operations in the comparable period of the prior year totaled $5.3 million, and included income of $114 million for mark to market adjustments related to financial liabilities.
Christian Haub, Executive Chairman of the Board, said, The US food retail market continues to face one of the most difficult and challenging environments in many years which analysts expect will extend through the first half of 2010. Unemployment, deflation and the resulting price competition combined with consumers drastic changes in spending behavior has severely impacted both our industry and our business.
Since assuming the role of interim CEO, I have launched efforts to assess all aspects of our business and to develop initiatives to improve our performance in the short term. During this important process, we have been fully engaged with Yucaipa and have leveraged their significant skills and industry expertise. We have determined that our previous merchandising and marketing programs did not meet the consumers changing needs. As a result, we have been changing our go-to-market direction and implemented a number of initiatives to mitigate the negative external influences and provide our customers with better value, service and quality products.
This quarter marks the transition to a different approach which we expect will translate to improved performance in the coming months. At the same time, we are working together with Yucaipa to develop longer-term strategies to drive sustainable success in the future. These efforts combined with our strong strategic position in the Northeast, our superior store base and our resolve to implement strategic changes makes me confident in the Companys long-term prospects.
Source: The Great Atlantic & Pacific Tea Company Inc.
