UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) November 28, 1995
ECKERD CORPORATION
(Exact name of registrant as specified in charter)
DELAWARE 1-4844
(State or other jurisdiction of incorporation) (Commission File No.)
13-3302437
(I.R.S. Employer Identification No.)
8333 Bryan Dairy Road
Largo, Florida 34647
(Address and zip code of principal executive offices)
(813) 399-6000
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
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Item 5. Other Events
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Attached as Exhbit 20.1 hereto and incorporated herein by reference is
a copy of the Company's press release dated November 28, 1995 which
reported the Company's earnings for the thirteen and thirty-nine week
periods ended October 28, 1995.
Item 7. Financial Statements, Pro Forma Financial Information and
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Exhibits
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(c) Exhibits:
20. 1 Press release dated November 28, 1995
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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.
ECKERD CORPORATION
(Registrant)
/s/ Samuel G. Wright
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Samuel G. Wright
Executive Vice President/
Chief Financial Officer
(Principal Accounting Officer)
DATE: November 28, 1995
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Exhibit Index
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Eckerd Corporation
Current Report on Form 8-K
Dated November 28, 1995
Exhibit No. Description of Exhibit Page
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20.1 Press Release
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EXHIBIT 20.1
NEWS RELEASE ECKERD CORPORATION
PO Box 4689
Clearwater, FL 34618
(813) 399-6000
November 28, 1995
NR #35
ECKERD CORPORATION'S THIRD QUARTER EARNINGS INCREASE
CLEARWATER, FL - November 28, 1995 - Eckerd Corporation
(NYSE:ECK) today reported increased earnings and sales in the third
quarter ended October 28, 1995.
For the quarter, earnings before extraordinary items increased
400 percent to $5.6 million or $.16 per share from $1.1 million or $.03
per share in the third quarter of fiscal 1994. For the nine month
period, earnings before extraordinary items increased 36 percent to
$48.2 million or $1.43 per share from $35.5 million or $1.10 per share
in fiscal 1994. Improved sales and operations and lower interest costs,
partially offset by a higher tax rate, contributed to the results.
Sales in the third quarter were a record $1.165 billion, an
11.7 percent increase from the prior year. Pharmacy sales increased
18.5 percent for the quarter while non-pharmacy sales increased 4.2
percent. For the nine months, sales totaled $3.523 billion, a 10.4
percent increase, pharmacy sales increased 16.7 percent and
non-pharmacy sales increased 3.9 percent. Comparable drug store sales,
measuring the performance of stores open one year or more (excluding
relocated stores open less than one year), increased 10.2 percent for
the quarter and 9.2 percent for the nine month period.
Operating profits for the quarter increased to $25.5 million
from $22.5 million in fiscal 1994. Gross profit margins were negatively
impacted by the continued shift of pharmacy sales mix to managed care
providers and by an increase in the LIFO inventory charge for the
quarter to $3.8 million, compared to $2.6 million last year. Operating
profits for the nine month period increased to $116.8 million from
$102.8 million in fiscal 1994. The LIFO charge for the nine months
increased to $9.8 million from $7.4 million in fiscal 1994.
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During the quarter the company also recorded an extraordinary
non-cash charge of $5.0 million, net of taxes, for the write off of
deferred costs and unamortized original issue discount related to the
early retirement of the remaining $78.9 million of 11.125 percent
subordinated debentures outstanding at the beginning of the quarter.
All 1994 results have been adjusted to exclude results from
Insta-Care Pharmacy Services which was sold effective November 15,
1994.
"The third quarter results reflect growth in both the pharmacy
and front-end portions of the business," said Stewart Turley, Eckerd
chairman and chief executive officer. "We also benefited from the
acquisition of the Florida Rite Aid stores and the near completion of
the underperforming store closings program. We're determined to
maintain our position as a leading convenient drug retailer and will
seek to build on our strengths during the busy holiday season."
Eckerd Corporation is one of America's largest retail drug
chains. The company ranks 255 on the Fortune 500 list. Eckerd operates
over 1,700 Eckerd drug stores in 13 states and over 500 Eckerd Express
one-hour photo labs in nine states.
Financial Contact:
Marty Gladysz, Vice President/Treasurer: (813) 399-6315
Media Contact:
Gerry Hoeppner, Director of Public Relations: (813) 399-6380
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<CAPTION>
Eckerd Corporation
Condensed Consolidated Statements of Operations
(In Thousands, Except Per Share Data)
(Unaudited)
Thirteen Weeks Ended Thirty-Nine Weeks
Ended
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October 28, October 29, 1994 October 28, October 29, 1994
1995 1995
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Actual Actual (A) Adjusted (B) Actual Actual (A) Adjusted (B)
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Sales and other operating revenue $ 1,164,907 $ 1,071,036 $ 1,042,707 $ 3,523,225 $ 3,274,121 $ 3,190,081
Cost of sales 915,137 831,513 812,853 2,739,733 2,517,877 2,461,912
Operating and administrative expenses 215,229 206,995 198,960 641,980 624,830 601,353
Amortization of intangibles 9,072 8,481 8,395 24,744 24,259 24,007
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Operating profit 25,469 24,047 22,499 116,768 107,155 102,809
Interest expense 18,720 23,410 21,273 58,669 71,802 65,398
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Earnings before income taxes and
extraordinary item 6,749 637 1,226 58,099 35,353 37,411
Income taxes 1,147 32 106 9,877 1,782 1,916
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Earnings before extraordinary item 5,602 605 1,120 48,222 33,571 35,495
Extraordinary item (5,012) (26,620) (26,620) (6,033) (26,620) (26,620)
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Net earnings (loss) $ 590 ($ 26,015) ($ 25,500) $ 42,189 $ 6,951 $ 8,875
=========== =========== =========== =========== =========== ===========
Earnings per common share before
extraordinary item $ .16 $ .02 $ .03 $ 1.43 $ 1.04 $ 1.10
Net earnings (loss) per common share $ .02 ($ .80) ($ .79) $ 1.25 $ .22 $ .27
Weighted average number of shares
outstanding 35,621 32,422 32,422 33,777 32,297 32,297
Earnings before interest, income taxes,
extraordinary item, depreciation
and amortization (EBITDA) $ 47,368 $ 44,085 $ 42,046 $ 178,228 $ 164,486 $ 158,788
(A) Certain amounts have been reclassified to conform to the 1995 actual
financial statement presentation.
(B) The adjusted financial data is based on the historical financial statements
of the Company, adjusted to give effect to the Company's sale of the
Insta-Care Pharmacy Services operations which was sold effective November
15, 1994, and the use of the net proceeds therefrom as if such transaction
had occured as of the beginning of the thirty-nine week period ended
October 29, 1994.
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