<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-------------------------------
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For 26 Weeks Ended: July 31, 1997 Commission File Number: 1-6187
ALBERTSON'S, INC.
------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 82-0184434
- ------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
250 Parkcenter Blvd., P.O. Box 20, Boise, Idaho 83726
- ----------------------------------------------- ----------
(Address) (Zip Code)
Registrant's telephone number, including area code: (208) 395-6200
--------------
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
----- -----
Number of Registrant's $1.00 par value
common shares outstanding at August 27, 1997: 245,750,753
<PAGE> 2
PART I. FINANCIAL INFORMATION
ALBERTSON'S, INC.
CONSOLIDATED EARNINGS
(in thousands except per share data)
(unaudited)
<TABLE>
<CAPTION>
13 WEEKS ENDED 26 WEEKS ENDED
------------------------ ------------------------
July 31, August 1, July 31, August 1
1997 1996 1997 1996
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
Sales $3,680,509 $3,481,131 $7,288,050 $6,825,072
Cost of sales 2,748,549 2,580,165 5,427,384 5,065,491
---------- ---------- ---------- ----------
Gross profit 931,960 900,966 1,860,666 1,759,581
Selling, general and
administrative expense 746,344 688,937 1,478,332 1,350,989
---------- ---------- ---------- ----------
Operating profit 185,616 212,029 382,334 408,592
Other (expenses) income:
Interest, net (19,541) (15,005) (38,855) (29,962)
Other, net 9,356 (1,381) 9,045 (852)
---------- ---------- ---------- ----------
Earnings before income taxes 175,431 195,643 352,524 377,778
Income taxes 65,991 74,931 133,818 144,689
---------- ---------- ---------- ----------
NET EARNINGS $ 109,440 $ 120,712 $ 218,706 $ 233,089
========== ========== ========== ==========
EARNINGS PER SHARE $ .44 $ .48 $ .88 $ .93
DIVIDENDS DECLARED PER SHARE $ .16 $ .15 $ .32 $ .30
Weighted average common
shares outstanding 249,021 251,962 249,827 251,945
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE> 3
ALBERTSON'S, INC.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
<TABLE>
<CAPTION>
July 31, 1997 January 30,
(unaudited) 1997
-------------- ------------
ASSETS
------
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 16,156 $ 90,865
Accounts and notes receivable 103,065 98,364
Inventories 1,151,920 1,201,067
Prepaid expenses 47,877 42,823
Deferred income taxes 48,684 42,804
---------- ----------
TOTAL CURRENT ASSETS 1,367,702 1,475,923
OTHER ASSETS 200,105 184,070
LAND, BUILDINGS AND EQUIPMENT 4,870,598 4,622,655
Less accumulated depreciation and amortization 1,692,218 1,568,015
---------- ----------
3,178,380 3,054,640
---------- ----------
$4,746,187 $4,714,633
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Accounts payable $ 690,560 $ 682,305
Salaries and related liabilities 134,032 135,681
Taxes other than income taxes 75,615 67,086
Income taxes 6,802 14,409
Self-insurance 67,293 63,999
Unearned income 37,688 36,539
Other current liabilities 49,314 46,161
Current maturities of long-term debt 86,445 975
Current capitalized lease obligations 8,211 7,938
---------- ---------
TOTAL CURRENT LIABILITIES 1,155,960 1,055,093
LONG-TERM DEBT 886,572 921,704
CAPITALIZED LEASE OBLIGATIONS 128,714 130,050
DEFERRED INCOME TAXES 10,709 15,876
OTHER LONG-TERM LIABILITIES AND DEFERRED CREDITS 351,762 344,892
STOCKHOLDERS' EQUITY:
Preferred stock - $1 par value; authorized - 10,000,000 shares; issued - none
Common stock - $1 par value; authorized - 600,000,000 shares; issued -
245,960,904
shares and 250,690,105 shares, respectively 245,961 250,690
Capital in excess of par value 92
Retained earnings 1,966,509 1,996,236
---------- ----------
2,212,470 2,247,018
---------- ----------
$4,746,187 $4,714,633
========== ==========
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE> 4
ALBERTSON'S, INC.
CONSOLIDATED CASH FLOWS
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
26 WEEKS ENDED
-----------------------------
July 31, August 1,
1997 1996
------------- ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 218,706 $ 233,089
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and amortization 160,276 141,507
Net deferred income taxes (11,047) (1,327)
Increase in cash surrender value of
Company-owned life insurance (11,000) (1,000)
Changes in operating assets and liabilities:
Receivables and prepaid expenses (9,755) (9,737)
Inventories 49,147 (4,618)
Accounts payable 8,255 (30,908)
Other current liabilities 1,468 14,473
Self-insurance 7,257 (1,055)
Unearned income (161) (2,305)
Other long-term liabilities 4,316 723
---------- ----------
Net cash provided by operating activities 417,462 338,842
CASH FLOWS FROM INVESTING ACTIVITIES:
Net capital expenditures excluding
noncash activities (281,393) (322,678)
Increase in other assets (5,035) (8,234)
---------- ----------
Net cash used in investing activities (286,428) (330,912)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term borrowings 200,000 200,000
Payments on long-term borrowings (4,068) (80,820)
Net commercial paper activity (149,365) (49,542)
Proceeds from stock options exercised 1,474 601
Cash dividends (77,622) (70,542)
Stock purchased and retired (176,162)
---------- ----------
Net cash used in financing activities (205,743) (303)
---------- ----------
NET (DECREASE) INCREASE IN CASH AND
CASH EQUIVALENTS (74,709) 7,627
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD 90,865 69,113
---------- ----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 16,156 $ 76,740
========== =========
NONCASH ACTIVITIES:
Capitalized lease obligations incurred $ 3,069 $ 2,700
Capitalized lease obligations terminated 361 1,405
Tax benefits related to stock options 842 448
CASH PAYMENTS FOR:
Income taxes 148,926 162,469
Interest, net of amounts capitalized 30,828 27,568
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE> 5
ALBERTSON'S, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Basis of Presentation
- ---------------------
The accompanying unaudited consolidated financial statements include the
results of operations, account balances and cash flows of the Company and its
wholly-owned subsidiaries. All material intercompany balances have been
eliminated.
In the opinion of management, the accompanying unaudited consolidated
financial statements include all adjustments necessary to present fairly, in all
material respects, the results of operations of the Company for the periods
presented. Such adjustments consisted only of normal recurring items. The
statements have been prepared by the Company pursuant to the rules and
regulations of the Securities and Exchange Commission. Certain information and
footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted pursuant to such rules and regulations. It is suggested that these
consolidated financial statements be read in conjunction with the consolidated
financial statements and the accompanying notes included in the Company's 1996
Annual Report.
The balance sheet at January 30, 1997, has been taken from the audited
financial statements at that date.
The preparation of the Company's consolidated financial statements, in
conformity with generally accepted accounting principles, requires management to
make estimates and assumptions. These estimates and assumptions affect the
reported amounts of assets and liabilities and the disclosure of contingent
assets and liabilities at the date of the financial statements, and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from these estimates.
Historical operating results are not necessarily indicative of future
results.
Reclassifications
- -----------------
Certain reclassifications have been made in the prior year's financial
statements to conform to classifications in the current year.
<PAGE> 6
Indebtedness
- ------------
In July 1997, the Company issued $200 million of medium-term notes under a
shelf registration statement filed with the Securities and Exchange Commission
in May 1996. A summary of these notes is as follows (in thousands):
<TABLE>
<S> <C>
Due July 2007 (6.58% interest) $ 10,000
Due July 2008 (6.67% interest) 15,000
Due July 2009 (6.76% interest) 72,000
Due July 2012 (6.82% interest) 6,500
Due July & August 2017 (7.00% interest) 36,500
Due July 2027 (7.12% interest) 30,000
Due July 2027 (6.56% interest) 30,000
--------
$200,000
==========
</TABLE>
Interest on the notes is paid semiannually. The 6.56% notes due July 2027,
contain a put option which would require the Company to repay the notes in July
2007, if the holder of the note so elects by giving the Company a 60 day notice.
Proceeds from the issuance were used primarily to repay borrowings under the
Company's commercial paper program. Medium-term notes up to $100 million remain
available for issuance under the 1996 shelf registration statement.
New Accounting Standards
- ------------------------
In June 1997 the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards (SFAS) No. 130, "Reporting Comprehensive Income"
and SFAS No. 131, "Disclosures about Segments of an Enterprise and Related
Information."
SFAS No. 130 requires that an enterprise (a) classify items of other
comprehensive income by their nature in a financial statement and (b) display
the accumulated balance of other comprehensive income separately from retained
earnings and additional paid-in capital in the equity section of a statement of
financial position. This statement will be effective for the Company's 1998
fiscal year.
SFAS No. 131 requires that a public business enterprise report financial and
descriptive information about its reportable operating segments. Operating
segments are components of an enterprise for which separate financial
information is available that is evaluated regularly by the chief operating
decision maker in deciding how to allocate resources and in assessing
performance. This statement will be effective for the Company's 1998 fiscal
year.
The Company is reviewing SFAS No. 130 and No. 131 to determine their effect
on the Company's reporting requirements.
<PAGE> 7
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
- ---------------------
Results for the quarter:
The following table sets forth certain income statement components expressed
as a percent to sales and the percentage change from the previous year in the
amounts of such components:
<TABLE>
<CAPTION>
Percent to Sales
-------------------
13 weeks ended Percentage
-------------------
7-31-97 8-01-96 Inc./(Dec.)
------- ------- ----------
<S> <C> <C> <C>
Sales 100.00% 100.00% 5.7%
Gross profit 25.32 25.88 3.4
Selling, general and
administrative
expenses 20.28 19.79 8.3
Operating profit 5.04 6.09 (12.5)
Net interest
expense 0.53 0.43 30.2
Other income (expense) 0.25 (0.04) N.A.
Earnings before
income taxes 4.77 5.62 (10.3)
Net earnings 2.97 3.47 (9.3)
</TABLE>
Sales increased primarily as a result of the continued expansion of net
retail square footage. Sales in stores that have been in operation for the full
13 week periods of both years decreased. Identical store sales decreased 0.6%
and comparable store sales (which include replacement stores) decreased 0.6%.
During the second quarter of 1996, the Company's Denver Division benefited from
a 44-day strike that affected two of the Company's competitors. Excluding the
Denver Division, total sales increased 7.7%, identical store sales increased
1.1% and comparable store sales increased 1.1%. Management estimates that annual
inflation in products the Company sells was approximately 0.2%. During the
quarter 17 stores were opened, 3 stores were closed and 7 store remodels were
completed. Retail square footage increased to 41 million square feet, a net
increase of 8.2% from August 1, 1996.
In addition to new store development, the Company plans to increase sales
through its continued investment in specific programs initiated in 1996. Such
programs include: the Front End Manager program; the home meal solutions process
called "Quick Fixin' Ideas;" special destination categories such as Albertson's
Better Care pharmacies, baby care, pet care, snack and beverage centers; and
increased emphasis on training programs utilizing Computer Guided Training. The
Company also began its new "Dear Albertson's" advertising campaign in February
1997, supported by the largest investment in broadcast media in the Company's
history.
Gross profit, as a percent to sales, decreased primarily as a result of the
Company's overly aggressive implementation of initiatives to increase sales
through vendor-assisted bonus-buy promotional programs and increased costs
associated with the Company's new advertising
<PAGE> 8
campaign. The pre-tax LIFO charge reduced gross profit by $10.9 million
(0.30% to sales) for the 13 weeks ended July 31, 1997, and $12.4 million
(0.36% to sales) for the 13 weeks ended August 1, 1996.
Selling, general and administrative expenses, as a percent to sales,
increased due primarily to increased salary and related benefit costs resulting
from the Company's initiatives to increase sales, increased workers'
compensation costs and increased depreciation expense associated with the
Company's expansion program.
The increase in net interest expense resulted primarily from higher average
outstanding debt during the second quarter of 1997 as compared to the second
quarter of 1996.
Other income for the 13 weeks ended July 31, 1997, included non-cash income
of $10.4 million for the increase in cash surrender value of Company-owned life
insurance. No such non-cash income or expense was included in other income for
the 13 weeks ended August 1, 1996.
The Company's effective income tax rate for the 13 weeks ended July 31, 1997,
was 37.6% as compared to 38.3% for the 13 weeks ended August 1, 1996. The
reduction from the prior year is primarily due to the effect of the increase in
the cash surrender value of Company-owned life insurance which is a non-taxable
item.
Year-to-date results:
The following table sets forth certain income statement components expressed
as a percent to sales and the percentage change from the previous year in the
amounts of such components:
<TABLE>
<CAPTION>
Percent to Sales
-------------------
26 weeks ended Percentage
-------------------
7-31-96 8-01-96 Inc./(Dec.)
------- ------- ----------
<S> <C> <C> <C>
Sales 100.00% 100.00% 6.8%
Gross profit 25.53 25.78 5.7
Selling, general and
administrative
expenses 20.28 19.79 9.4
Operating profit 5.25 5.99 (6.4)
Net interest
expense 0.53 0.44 29.7
Other income (expense) 0.12 (0.01) N.A.
Earnings before
income taxes 4.84 5.54 (6.7)
Net earnings 3.00 3.42 (6.2)
</TABLE>
Sales increased primarily as a result of the continued expansion of net
retail square footage. Identical store sales increased 0.1% and comparable store
sales (which include replacement stores) increased 0.1%. These identical and
comparable store sales increases were negatively impacted by the benefits the
Company realized in 1996 from a 44-day strike which affected two of the
Company's competitors. Management estimates that annual inflation in products
the Company sells was approximately 0.2%. During the 26 weeks 24 stores were
opened, 3
<PAGE> 9
stores were closed and 15 store remodels were completed. Retail square footage
increased to 41 million square feet, a net increase of 8.2% from August 1, 1996.
In addition to new store development, the Company plans to increase sales
through its continued investment in specific programs initiated in 1996. Such
programs include: the Front End Manager program; the home meal solutions process
called "Quick Fixin' Ideas;" special destination categories such as Albertson's
Better Care pharmacies, baby care, pet care, snack and beverage centers; and
increased emphasis on training programs utilizing Computer Guided Training. The
Company also began its new "Dear Albertson's" advertising campaign in February
1997, supported by the largest investment in broadcast media in the Company's
history.
Gross profit, as a percent to sales, decreased primarily as a result of the
Company's overly aggressive implementation of initiatives to increase sales
through vendor-assisted bonus-buy promotional programs and increased costs
associated with the Company's new advertising campaign. Decreases in retail
gross profit, as a percent to sales, were partially offset by the continued
efficiencies and related cost reductions gained at the Company's distribution
centers. The Company's distribution system provided approximately 77% of all
products purchased by retail stores. Utilization of the Company's distribution
system enables the Company to better control product costs, quality and
distribution. The pre-tax LIFO charge reduced gross profit by $21.8 million
(0.30% to sales) for the 26 weeks ended July 31, 1997, and $24.8 million (0.36%
to sales) for the 26 weeks ended August 1, 1996.
Selling, general and administrative expenses, as a percent to sales,
increased due primarily to increased salary and related benefit costs resulting
from the Company's initiatives to increase sales, increased workers'
compensation costs and increased depreciation expense associated with the
Company's expansion program.
The increase in net interest expense resulted primarily from higher average
outstanding debt during the 26 weeks ended July 31, 1997, as compared to the
prior year.
Other income for the 26 weeks ended July 31, 1997, included non-cash income
of $11.0 million for the increase in cash surrender value of Company-owned life
insurance as compared to $1.0 million of other income for the 26 weeks ended
August 1, 1997.
The Company's effective income tax rate for the 26 weeks ended July 31, 1997,
was 38.0% as compared to 38.3% for the prior year. The reduction from the prior
year is primarily due to the effect of the increase in the cash surrender value
of Company-owned life insurance which is a non-taxable item.
Liquidity and Capital Resources
- -------------------------------
The Company's operating results continue to enhance its financial position
and ability to continue its planned expansion program. Cash provided by
operating activities during the 26 weeks ended July 31, 1997, was $417 million
compared to $339 million in the prior year. The
<PAGE> 10
increase from the prior year in cash provided by operating activities was
primarily due to changes in inventories and accounts payable.
During the 26 weeks ended July 31, 1997, the Company spent $281 million for
net capital expenditures, $78 million for the payment of dividends and $176
million to purchase and retire stock. The Company also reduced commercial paper
borrowings by $149 million.
The Company utilizes its commercial paper program to supplement cash
requirements due to seasonal fluctuations in working capital as a result of
operations and the Company's capital expenditure program. Accordingly,
commercial paper borrowings will fluctuate between the Company's quarterly
reporting periods. The Company had $180 million of commercial paper borrowings
outstanding at July 31, 1997, compared to $329 million at January 30, 1997, and
$160 million at August 1, 1996.
In July 1997, the Company issued $200 million of medium-term notes under a
shelf registration statement filed with the Securities and Exchange Commission
in May 1996. Proceeds from the issuance were used primarily to repay borrowings
under the Company's commercial paper program. Medium-term notes up to $100
million remain available for issuance under the 1996 shelf registration
statement.
Since 1987 the Board of Directors has continuously adopted or renewed
programs under which the Company is authorized, but not required, to purchase
and retire shares of its common stock. The program adopted by the Board on
March 3, 1997, authorizes the Company to purchase and retire up to 7 million
shares through March 31, 1998. During the 26 weeks ended July 31, 1977,
4,861,300 shares were purchased and retired pursuant to this program.
Cautionary Statement for Purposes of "Safe Harbor Provisions"
of the Private Securities Litigation Reform Act of 1995
- -------------------------------------------------------------
From time to time, information provided by the Company, including written or
oral statements made by its representatives, may contain forward-looking
information as defined in the Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts, which address
activities, events or developments that the Company expects or anticipates will
or may occur in the future, including such things as expansion and growth of the
Company's business, future capital expenditures and the Company's business
strategy, contain forward-looking information. In reviewing such information it
should be kept in mind that actual results may differ materially from those
projected or suggested in such forward-looking information. This forward-looking
information is based on various factors and was derived utilizing numerous
assumptions. Many of these factors have previously been identified in filings or
statements made by or on behalf of the Company.
Important assumptions and other important factors that could cause actual
results to differ materially from those set forth in the forward-looking
information include: changes in the general economy, changes in consumer
spending, competitive factors and other factors affecting the Company's business
in or beyond the Company's control. These factors include changes in the rate of
inflation, changes in state or federal
<PAGE> 11
legislation or regulation, adverse determinations with respect to litigation
or other claims, labor negotiations, ability to recruit and develop employees,
ability to develop new stores or complete remodels as rapidly as planned and
stability of product costs.
Other factors and assumptions not identified above could also cause the
actual results to differ materially from those set forth in the forward-looking
information. The Company does not undertake to update forward-looking
information to reflect actual results, changes in assumptions or changes in
other factors affecting such forward-looking information.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
- --------------------------
Three civil lawsuits filed in September 1996 as purported state-wide class
actions (Washington, Choate v. Albertson's, Inc.; California, Gloege v.
Albertson's, Inc.; and Florida, Mitchell v. Albertson's, Inc.) and one civil
lawsuit filed in April 1997 in federal court in Boise, Idaho as a purported
several-state class action (the remaining 17 states in which the Company
operates, Barton v. Albertson's, Inc.) have been brought against the Company
alleging that (i) the Company has a wide-spread practice of permitting its
hourly-paid employees to work "off-the-clock" without being paid for their work
and (ii) the Company's bonus and worker's compensation plans are unlawful. These
suits are being sponsored and financed by the United Food & Commercial Workers
(UFCW), International Union. In addition, two other similar cases have been
filed as purported class actions which in effect duplicate the coverage of the
UFCW sponsored suits (Flach v. Albertson's, Inc. filed in state court in
Colorado in April 1997 and Rose v. Albertson's, Inc. filed in federal court in
Boise, Idaho in April 1997).
The Company has firm and long-standing policies in place prohibiting
off-the-clock work and has structured its bonus and worker's compensation plans
to comply with all applicable laws. Although these lawsuits are still in their
preliminary stages, the Company believes it has strong defenses and intends to
vigorously defend against these lawsuits. The Company further believes that the
UFCW sponsored suits are part of a broader and continuing effort by the UFCW and
some of its locals to pressure the Company to unionize employees who have not
expressed a desire to be represented by a union.
In the opinion of management, the ultimate resolution of these actions will
not have a material adverse effect on the Company's financial condition or
results of operations.
The Company is also involved in routine litigation incidental to operations.
In the opinion of management, the ultimate resolution of these legal proceedings
will not have a material adverse effect on the Company's financial condition or
results of operations.
<PAGE> 12
Item 2. Changes in Securities
- ------------------------------
In accordance with the Company's $600 million revolving credit agreement, the
Company's consolidated tangible net worth, as defined, shall not be less than
$750 million.
Item 3. Defaults upon Senior Securities
- ----------------------------------------
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
- ------------------------------------------------------------
Information regarding the Company's Annual Meeting of Stockholders held on
May 23, 1997, was included under Item 4 of Form 10-Q for the quarter ended May
1, 1997.
Item 5. Other Information
- --------------------------
Not applicable.
Item 6. Exhibits and Reports on Form 8-K
- -----------------------------------------
a. Exhibits
27 Financial data schedule for the 26 weeks ended July 31,
1997.
b. The following reports on Form 8-K were filed during the quarter:
None.
<PAGE> 13
SIGNATURE
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.
ALBERTSON'S, INC.
---------------------------------
(Registrant)
Date: September 3, 1997 /S/ A. Craig Olson
--------------------- ---------------------------------
A. Craig Olson
Senior Vice President, Finance
and Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ALBERTSON'S
QUARTERLY REPORT TO STOCKHOLDERS FOR THE QUARTER ENDED JULY 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-29-1998
<PERIOD-START> JAN-31-1997
<PERIOD-END> JUL-31-1997
<CASH> 16,156
<SECURITIES> 0
<RECEIVABLES> 104,065
<ALLOWANCES> 1,000
<INVENTORY> 1,151,920
<CURRENT-ASSETS> 1,367,702
<PP&E> 4,870,598
<DEPRECIATION> 1,692,218
<TOTAL-ASSETS> 4,746,187
<CURRENT-LIABILITIES> 1,155,960
<BONDS> 1,015,286
0
0
<COMMON> 245,961
<OTHER-SE> 1,966,509
<TOTAL-LIABILITY-AND-EQUITY> 4,746,187
<SALES> 7,288,050
<TOTAL-REVENUES> 7,288,050
<CGS> 5,427,384
<TOTAL-COSTS> 5,427,384
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 38,855
<INCOME-PRETAX> 352,524
<INCOME-TAX> 133,818
<INCOME-CONTINUING> 218,706
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 218,706
<EPS-PRIMARY> .88
<EPS-DILUTED> .88
</TABLE>
