<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
Amendment No. 1
to
Quarterly Report Pursuant to Section 13 or 15 (d)
of the Securities Exchange Act of 1934
For the quarterly period ended December 30, 1994
Commission File Number 2-60487
United Grocers, Inc.
(Exact name of registrant as specified in its charter)
Oregon 93-0301970
(State or other jurisdiction of (IRS Employer identification No.)
incorporation or organization)
6433 S.E. Lake Road
Post Office Box 22187, Milwaukie, Oregon 97269
(address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (503) 833-1000
<PAGE>
The undersigned registrant hereby amends Item 1 of its Quarterly
Report on Form 10-Q for the quarterly period ended December 30, 1994, as
follows:
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements.
The following unaudited consolidated financial statements of United
Grocers, Inc., and subsidiaries for the periods ended December 30, 1994 and
December 31, 1993, include all adjustments which management considers
necessary for a fair presentation of the results for the interim periods.
All adjustments to prior period figures are for the purpose of making the
results comparable and are of a normal recurring nature. Any changes in
accounting methods not of a normal recurring nature are separately disclosed.
In 1993-94 the Company adopted FASB #113 (Accounting for Reinsurance
Contracts). Refer to Part I, Item 2, for a description of the effect of this
change on the balance sheet.
Principles of Consolidation
The consolidated financial statements include the accounts of the Company and
its wholly-owned subsidiaries, Grocers Insurance Group, Inc., Grocers
Insurance Agency, Inc., UGIC, Ltd., Grocers Insurance Company (formerly
United Employers Insurance Co.), United Workplace Consultants, Inc., U.G.
Resources, Inc., United Resources, Inc., BAT Enterprises, Inc., Western
Passage Express, Inc., United Store Development, Ltd., Premier Consulting,
Inc. (formerly Employee Management Services, Inc.), Western Security
Services, Inc., Affiliated General Agency, Inc. and Northwest Process, Inc.
All intercompany balances and transactions have been eliminated upon
consolidation.
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UNITED GROCERS, INC., AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 30, 1994, and September 30, 1994
<TABLE>
<CAPTION>
(Unaudited) (Audited)
ASSETS 12/30/94 09/30/94
------------ ------------
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 13,635,393 $ 12,984,028
Investments maintained for
insurance reserves 41,051,094 36,939,578
Accounts and notes receivable 54,932,471 60,290,461
Inventories 77,499,755 74,307,422
Other current assets 8,001,769 5,367,295
Deferred income taxes 2,811,914 2,811,914
------------ ------------
Total current assets 197,932,396 192,700,698
------------ ------------
NON-CURRENT ASSETS:
Notes receivable 31,256,240 33,155,543
Investment in affiliated companies 7,832,484 7,832,484
Other receivables and investments 5,744,767 6,899,133
Other non-current assets 9,737,156 7,730,575
------------ ------------
Total non-current assets 54,570,647 55,617,735
------------ ------------
PROPERTY, PLANT AND EQUIPMENT -
(Net of accumulated depreciation) 59,924,185 58,517,120
------------ ------------
TOTAL $312,427,228 $306,835,553
============ ============
</TABLE>
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UNITED GROCERS, INC., AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 30, 1994, and SEPTEMBER 30, 1994
(continued)
<TABLE>
<CAPTION>
(Unaudited) (Audited)
LIABILITIES AND MEMBERS' EQUITY 12/30/94 09/30/94
------------ ------------
<S> <C> <C>
CURRENT LIABILITIES:
Notes payable - bank $ 46,942,102 $ 31,020,667
Accounts payable 58,659,198 64,629,410
Insurance reserves supported by
investments 34,116,374 32,038,408
Compensation and taxes payable 3,023,386 2,952,534
Other accrued expenses 4,232,744 3,159,900
Members' patronage payable 910,000 6,865,736
Current installments on
long-term liabilities 6,760,758 6,776,197
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Total current liabilities 154,644,562 147,442,852
------------ ------------
LONG-TERM LIABILITIES 112,610,745 114,669,266
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DEFERRED INCOME TAXES 3,744,109 3,744,109
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DEFERRED INCOME 554,469 554,469
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MEMBERS' EQUITY (Members' Equity is
subject to redemption due to the
occurrence of certain events, e.g.,
termination of membership):
Common stock (Authorized, 10,000,000
shares at $5.00 par value;issued
and outstanding, 612,702 shares at
December 30, 1994 and 619,881 shares
at September 30, 1994) (Shares owned by
a member in excess of 4,000 are subject
to repurchase. See Note below.) 3,293,007 3,256,080
Additional paid-in capital 22,559,380 22,472,564
Retained earnings 15,020,956 14,696,213
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Total members' equity 40,873,343 40,424,857
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TOTAL $312,427,228 $306,835,553
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</TABLE>
Common Stock Note: 22,409 shares are subject to repurchase at December 30,
1994 and September 30, 1994 in the amount of $1,277,213. At December 30,
1994 and September 30, 1994 there were 2,869 shares held for possible
redemption in the amount of $163,533.
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UNITED GROCERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
(Unaudited)
Quarter Quarter
Ended Ended
12/30/1994 12/31/1993
------------ ------------
<S> <C> <C>
Net sales and operations $243,288,734 $229,399,822
------------ ------------
Costs and expenses:
Cost of sales 207,493,311 195,195,792
Operating expenses 24,288,709 23,929,411
Selling and administrative expenses 2,370,275 2,439,540
Depreciation 1,387,178 1,303,129
Interest:
Interest expense 2,459,753 2,130,365
Interest income 866,478 1,138,635
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Interest expense, net 1,593,275 991,730
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Total cost and expenses 237,132,748 223,859,602
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Income before members' allowances, patronage
dividends and income taxes 6,155,986 5,540,220
Members' allowances 3,866,201 3,546,359
Members' patronage dividends 1,400,000 1,300,000
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Income before income taxes 889,785 693,861
Provision for income taxes 373,476 245,400
------------ ------------
Net Income $ 516,309 $ 448,461
============ ============
</TABLE>
<PAGE>
UNITED GROCERS, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three months ended
----------------------------
December 30 December 31
CASH FLOWS FROM OPERATING ACTIVITIES: 1994 1993
------------ ------------
<S> <C> <C>
Net income $ 516,309 $ 448,461
Adjustments to reconcile net income to
net cash provided by (used in)
operating activities:
Depreciation 1,387,178 1,303,129
Provision for doubtful accounts
and notes 506,992 506,688
Patronage dividends payable in
common stock 793,776 853,325
(Gain)loss on sale of assets ( 67,789) ( 52,479)
Decrease (increase) in non-cash
current assets:
Accounts and notes receivable 5,357,990 ( 6,629,603)
Inventories ( 3,192,333) ( 2,289,122)
Other current assets ( 9,581,692) ( 2,879,823)
Increase (decrease) in non-cash
current liabilities:
Accounts payable and insurance
reserves ( 3,892,246) ( 2,800,067)
Compensation and taxes payable 70,852 ( 228,266)
Other accrued expenses 1,072,844 ( 45,181)
Members' patronage and other
refunds ( 5,955,736) ( 6,369,927)
Decrease (increase) in non-current
other assets ( 852,215) ( 594,324)
------------ ------------
Net cash provided by (used in)
operating activities ( 13,836,070) ( 18,777,189)
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Loans to members ( 5,115,806) ( 7,467,671)
Collections on loans to members 3,609,748 1,607,567
Proceeds from sale of member loans 2,898,369 50,000
Sale and redemption of investments 4,433,139 164,258
Purchase of investments ( 1,597,437) ( 3,034,814)
Sale of property/plant/equipment 23,546 146,756
Purchase-property/plant/equipment ( 2,750,000) ( 2,356,839)
------------ ------------
Net cash provided by (used in)
investing activities 1,501,559 ( 10,890,743)
------------ ------------
</TABLE>
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UNITED GROCERS, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Continued)
(Unaudited)
[CAPTION]
Three months ended
----------------------------
December 30 December 31
1994 1993
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[S] [C] [C]
CASH FLOWS FROM FINANCING ACTIVITIES:
Sale of common stock 11,400 409,944
Repurchase of common stock ( 872,999) ( 335,809)
Proceeds of long-term liabilities:
Revolving bank lines of credit 225,900,000 189,800,000
Other loans 4,215,691 -0-
Redeemable notes and certificates 3,600,600 3,155,200
Repayment of long-term liabilities:
Revolving bank lines of credit (209,850,405) (160,151,392)
Mortgages and notes ( 4,593,338) ( 669,346)
Redeemable notes and certificates ( 5,425,073) ( 6,268,128)
------------ ------------
Net cash provided by (used in)
financing activities 12,985,876 25,940,469
------------ ------------
Net increase (decrease) in cash and
cash equivalents 651,365 ( 3,727,463)
Cash and cash equivalents, beginning of year 12,984,028 18,807,473
------------ ------------
Cash and cash equivalents, end of quarter $ 13,635,393 $ 15,080,010
============ ============
[/TABLE]
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: March 1, 1995 UNITED GROCERS, INC.
(Registrant)
By /s/ John W. White
John W. White
Vice President
(Principal Accounting Officer)
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