SUNBURY, Pa., April 25 /PRNewswire-FirstCall/ -- Weis Markets, Inc. today reported its first quarter sales increased 4.2% to $595.7 million while its comparable store sales were up 3.9% compared to the same period a year ago.
For the thirteen-week period ending March 29, 2008, the Company's net income declined to $9.1 million compared to $13.4 million in 2007. Basic and diluted earnings per share totaled $.34 per share compared to $.50 per share in 2007.
"The first quarter was the perfect retail storm with a combination of factors significantly impacting our gross margins," said Weis Markets, Inc. Chief Executive Officer Norman S. Rich. "We continue to see considerable wholesale food inflation. Food commodity prices are increasing at a faster pace than retail prices paid by our customers. At the same time, due to an uncertain economy and the high cost of gasoline, our customers are more cautious in their spending. In addition, we continue to maintain our aggressive pricing and promotional program throughout our markets."
The Company said its earnings were also impacted by increases of 35.4% in diesel fuel costs and 18.1% in higher health insurance costs.
In March, David P. Hepfinger joined the Company as President and Chief Operating Officer. Previously, Mr. Hepfinger was Senior Vice President of Retailing and Administration at Price Chopper, a 116 store supermarket company based in Rotterdam, New York.
Earlier this week at the Company's Annual Meeting of Shareholders held in Sunbury, PA, Weis Markets' Vice Chairman Jonathan H. Weis said the Company would invest nearly $80 million in its capital expenditure program, a 23.0% increase over expenditures made in 2007. The Company currently has 19 major projects in various stages of completion, including three new stores, two replacement units, nine additions and five remodels.
ABOUT WEIS MARKETS
Founded in 1912, Weis Markets is a Mid-Atlantic supermarket company. It currently operates 156 stores in five Mid-Atlantic states: Pennsylvania, Maryland, New Jersey, New York and West Virginia.
In addition to historical information, this news release may contain forward-looking statements. Any forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. For example, risks and uncertainties can arise with changes in: general economic conditions, including their impact on capital expenditures; business conditions in the retail industry; the regulatory environment; rapidly changing technology and competitive factors, including increased competition with regional and national retailers; and price pressures.
The Company undertakes no obligation to publicly revise or update these forward-looking statements to reflect events or circumstances that arise after the date hereof other than through its periodic filings with the Securities and Exchange Commission that are available to the public.
WEIS MARKETS, INC. COMPARATIVE SUMMARY OF UNAUDITED SALES & EARNINGS First Quarter - 2008 13 Week 13 Week Period Ended Period Ended Increase March 29, 2008 March 31, 2007 (Decrease) Net Sales $595,666,000 $571,795,000 4.2% Income Before Taxes 12,966,000 20,442,000 (36.6%) Provision for Income Taxes 3,910,000 7,037,000 (44.4%) Net Income $9,056,000 $13,405,000 (32.4%) Weighted-Average Shares Outstanding 26,968,000 27,003,000 (35,000) Basic and Diluted Earnings Per Share $0.34 $0.50 ($0.16)
