Nash Finch Co’s total sales
advance 15.3% in fiscal 3Q
Nov 14, 2009 2:11 PM
Nash Finch Company announced financial results for the 16 weeks (fiscal third quarter) ended October 10, 2009.
The food distribution company’s total sales for the third quarter 2009 were $1.633 billion, compared with $1.416 billion in the prior-year quarter, an increase of 15.3%. Sales for the first 40 weeks of 2009 were $3.990 billion, versus $3.445 billion in the prior-year period, a gain of 15.8%.
Net earnings for third quarter 2009 were $21.9 million, in contrast to net earnings of $7.7 million in the prior-year quarter. For the first 40 weeks of 2009, net earnings were $45.9 million, compared with net earnings of $27.7 million in the same prior-year period.
On November 10, 2009, Nash Finch’s board of directors approved a share repurchase program authorizing the company to spend up to $25 million to purchase shares of the company’s common stock. The program will take effect as soon as administratively practicable, but no earlier than Nov 16, 2009, and will continue until Dec 31, 2010.
“We are pleased with this authorization to buy back shares and intend to use the same opportunistic approach we used in late 2007–2008, when our last share buyback program was in place,” said Alec Covington, Nash Finch chief executive officer and president. “While the economic environment has proved challenging, we continue to generate superior free cash flow results. Our debt levels have fallen below our target range, and due to the low cost of debt we currently enjoy and the importance of maintaining a lower overall cost of capital through proper leverage, we believe a share buyback program is an excellent way to generate value for our investors. We feel this program will not compromise our ability to invest in our business and pursue accretive acquisitions when an opportunity arises.”
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