SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 20,1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ........to...........
Commission File number 0-6080
FOOD LION, INC.
(Exact name of registrant as specified in its charter)
NORTH CAROLINA 56-0660192
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
P.O. Box 1330, 2110 Executive Drive Salisbury, NC 28145-1330
(Address of principal executive office) (Zip Code)
(704) 633-8250
(Registrant's telephone number)
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 registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days.
Yes X No
Outstanding shares of common stock of the Registrant as of July 22, 1998.
Class A Common Stock 250,667,996
Class B Common Stock 232,727,364
Page 1 of 19
The Exhibit index is located on page 17.
FOOD LION, INC.
INDEX TO FORM 10-Q
June 20, 1998
Part I.FINANCIAL INFORMATION Page
Item 1. Financial Statements
Consolidated Statements of Income for the
12 and 24 weeks ended June 20, 1998 and
June 14, 1997 3-4
Consolidated Balance sheets as of June 20,
1998, January 3, 1998 and June 14, 1997 5
Consolidated Statements of Cash Flows for
12 and 24 weeks ended June 20, 1998
and June 14, 1997 6
Notes to Consolidated Financial Statements 7-8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 9-13
Part II. OTHER INFORMATION
Item 1. Legal Proceedings 14
Item 2. Changes in Securities 15
Item 3. Defaults Upon Senior Securities 15
Item 4. Submission of Matters to a Vote of Security 15
Holders
Item 5. Other Information 15
Item 6. Exhibits and Reports on Form 8-K 15
Signatures 16
Exhibit Index 17
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<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
FOOD LION, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
For the 12 Weeks ended June 20, 1998 and June 14, 1997
(Dollars in thousands except per share data)
Restated Restated
June 20,1998 June 14,1997 June 20,1998 June 14,1997
% %
<S> <C> <C> <C> <C>
Net sales $2,353,260 $2,324,719 100.00 100.00
Cost of goods sold 1,826,657 1,821,049 77.62 78.33
Gross profit 526,603 503,670 22.38 21.67
Selling and administrative expenses 352,609 345,413 14.98 14.87
Depreciation and amortization 54,012 52,150 2.30 2.24
Operating income 119,982 106,107 5.10 4.56
Interest expense 23,154 27,761 0.99 1.19
Income before income taxes 96,828 78,346 4.11 3.37
Provision for income taxes 36,795 30,555 1.56 1.31
Net income $ 60,033 $ 47,791 2.55 2.06
Basic and diluted earnings per share $ 0.13 $ 0.10
Dividends per share $ 0.04 $ 0.03
Weighted average number
of shares outstanding:
Class A 244,777,891 236,087,308
Class B 232,727,364 232,760,697
Total 477,505,255 468,848,005
</TABLE>
-3-
<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
FOOD LION, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
For the 24 Weeks ended June 20, 1998 and June 14, 1997
(Dollars in thousands except per share data)
Restated Restated
June 20, 1998 June 14, 1997 June 20, 1998 June 14, 1997
% %
<S> <C> <C> <C> <C>
Net sales $4,658,733 $4,601,465 100.00 100.00
Cost of goods sold 3,626,772 3,604,112 77.85 78.33
Gross profit 1,031,961 997,353 22.15 21.67
Selling and administrative expenses 688,904 692,254 14.79 15.04
Depreciation and amortization 106,430 100,847 2.28 2.19
Operating income 236,627 204,252 5.08 4.44
Interest expense 50,768 54,446 1.09 1.18
Income before income taxes 185,859 149,806 3.99 3.26
Provision for income taxes 70,592 58,424 1.52 1.27
Net income $ 115,267 $ 91,382 2.47 1.99
Basic and diluted earnings per share $ 0.24 $ 0.19
Dividends per share $ 0.07 $ 0.07
Weighted average number
of shares outstanding:
Class A 240,556,329 236,141,377
Class B 232,727,364 232,831,531
Total 473,283,693 468,972,908
</TABLE>
-4-
<TABLE>
FOOD LION, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
Restated
June 20, 1998 January 3, 1998 June 14, 1997
Assets
Current assets:
<S> <C> <C> <C> <C>
Cash and cash equivalents $ 45,702 $ 56,147 $ 26,638
Receivables 157,905 166,790 142,006
Inventories 1,000,916 982,744 974,953
Prepaid expenses and other 52,631 28,234 67,794
Deferred tax asset 63,123 63,123 75,807
Total current assets 1,320,277 1,297,038 1,287,198
Property, at cost, less accumulated
depreciation 1,832,946 1,842,269 1,831,187
Deferred tax asset 51,980 51,980 8,619
Intangible assets 267,046 267,656 274,117
Total assets $3,472,249 $3,458,943 $3,401,121
Liabilities and Shareholders' Equity
Current Liabilities:
Short-term borrowings $ - $ 80,000 $ -
Accounts payable, trade 508,585 460,714 477,972
Accrued expenses 321,621 351,173 355,108
Capital lease obligations - current 21,229 20,427 20,872
Long term debt - current 2,646 2,525 905
Other liabilities - current 9,911 8,756 6,992
Total current liabilities 863,992 923,595 861,849
Long-term debt 470,797 586,355 633,905
Capital lease obligations 491,178 489,928 479,338
Other liabilities 120,686 125,880 143,202
Total liabilities 1,946,653 2,125,758 2,118,294
Shareholders' Equity:
Class A non-voting common stock, $.50 par value 125,299 118,112 118,033
Class B voting common stock, $.50 par value 116,364 116,364 116,364
Additional capital 105,999 794 24
Retained earnings 1,177,934 1,097,915 1,048,406
Total shareholders' equity 1,525,596 1,333,185 1,282,827
Total liabilities and shareholders' equity $3,472,249 $3,458,943 $3,401,121
</TABLE>
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FOOD LION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the 24 Weeks ended June 20, 1998 and June 14, 1997
(Dollars in thousands)
24 Weeks
Restated
June 20,1998 June 14,1997
Cash flows from operating activities
Net income $115,267 $91,382
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 106,430 100,847
(Gain) Loss on disposals of property (1,841) 1,057
Deferred income taxes - (5,850)
Changes in operating assets and liabilities:
Receivables 8,885 9,157
Inventories (18,172) 90,790
Prepaid expenses and other (24,397) (39,712)
Accounts payable and accrued expenses 18,319 (16,074)
Other liabilities (4,039) (11,358)
Total adjustments 85,185 128,857
Net cash provided by operating activities 200,452 220,239
Cash flows from investing activities
Capital expenditures (141,878) (145,846)
Proceeds from disposal of property 66,895 5,121
Net cash used in investing activities ( 74,983) (140,725)
Cash flows from financing activities
Net payments under short-term borrowings (80,000) (250,010)
Principal payments on long-term debt (4,992) (161,274)
Proceeds from issuance of long-term debt - 300,000
Principal payments under capital lease obligations (17,621) (10,320)
Dividends paid (35,248) (31,390)
Repurchase of common stock - (2,960)
Proceeds from issuance of common stock 1,947 707
Net cash used in financing activities (135,914) (155,247)
Net decrease in cash and cash
equivalents (10,445) (75,733)
Cash and cash equivalents at beginning
of period 56,147 102,371
Cash and cash equivalents at end of period $ 45,702 $ 26,638
-6-
Notes to Consolidated Financial Statements (Dollars in thousands)
1) Basis of Presentation:
The accompanying financial statements are presented in accordance with
the requirements of Form 10-Q and, consequently, do not include all the
disclosures normally required by generally accepted accounting principles or
those normally made in the Annual Report on Form 10-K of Food Lion, Inc.
(the "Company"). Accordingly, the reader of this Form 10-Q should refer
to the Company's Form 10-K for the year ended January 3, 1998 for further
information.
The financial information has been prepared in accordance with the
Company's customary accounting practices and has not been audited. In the
opinion of management, the financial information includes all
adjustments consisting of normal recurring adjustments necessary for
a fair presentation of interim results.
2) Supplemental Disclosure of Cash Flow Information:
Selected cash payments and non-cash activities incurred during the 24
week period of 1998 and 1997 were as follows:
June 20, 1998 June 14,1997
Cash payments for income taxes $93,273 $101,676
Cash payments for interest,
net of amounts capitalized 52,952 50,302
Non-cash investing and financing activities:
Capitalized lease obligations
incurred for store properties 31,975 31,594
Capitalized lease obligations
terminated for store properties 12,302 12,069
Conversion of long-term debt
to stock 110,445 0
The Company considers all highly liquid investment instruments
purchased with an original maturity of three months or less to
be cash equivalents.
During the second quarter of 1998 the Company called for redemption its
outstanding convertible subordinated debentures totaling $113.8 million
through either (1) payment to the bond holders
-7-
at 101% of the principal together with accrued interest or (2) conversion
of the debentures into shares of the Company's Class A Common Stock. Most
bond holders elected conversion resulting in the issuance of 13,942,371
shares of Class A Common Stock. The Company paid $3.8 million in principal,
premium and accrued interest to remaining bond holders.
3) Inventories
Inventories are stated at the lower of cost or market. Inventories
valued using the last-in, first-out(LIFO) method comprised approximately
84% and 83% of inventories, in 1998 and 1997, respectively. Meat, produce
and deli inventories are valued on the first-in, first-out (FIFO) method.
If the FIFO method were used entirely, inventories would have been
$119.9 million and $110.6 million greater at June 20, 1998 and June 14, 1997,
respectively. Application of the LIFO method resulted in increases in the
cost of goods sold of $5.5 million and $6.2 million for the 24 weeks ended
June 20, 1998 and June 14, 1997, respectively.
4) Restatement of 1997 Financial Statements
The Company previously determined that its financial statements for the
quarter and the 24 weeks ended June 14, 1997 should be restated to reflect
adjustments related to the acquisition of Kash n' Karry and store closing
costs. The impact of the restatement on the consolidated statement of income
for the second quarter and year to date ended June 14, 1997 is as follows:
Amounts Restated Amounts Restated
Previously Amounts - Previously Amounts
Reported - Second Reported - - YTD
Second Quarter YTD
Quarter
Operating income $109,284 $106,107 $210,608 $204,252
Net income 49,729 47,791 95,259 91,382
Basic earnings per share $0.11 $0.10 $0.20 $0.19
5) Reclassification
Certain financial statement items have been reclassified to conform to
the current year's format.
6) Year 2000 Disclosure
The Company has and will continue to make certain investments in
software systems and applications to ensure the Company is year
2000 compliant. The financial impact to the Company has not been
and is not anticipated to be material to its financial position or
results of operations in any given year.
-8-
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
RESULTS OF OPERATIONS (12 and 24 weeks ended June 20, 1998 compared to 12 and
24 weeks ended June 14, 1997)
The Company's sales for the second quarter and year to date of 1998 were $2.4
billion and $4.7 billion, respectively, resulting in increases of 1.2% over the
corresponding periods of 1997. During the second quarter of 1998 total sales
were impacted by a change in the method of collecting sales tax on products
discounted through the MVP customer(MVP)and Preferred Customer (PCC) loyalty
card programs. Beginning in May 1998, after receiving permission from all state
departments of revenue, the Company began collecting sales tax on the net sales
price, after considering the MVP/PCC discount granted, rather than on the full
retail price of the MVP/PCC items. The related impact on the quarter was to
reduce reported sales by approximately $26 million. This change does not impact
the same store sales calculation or the Company's net income, as gross profit
and expense dollars are the same under either method. The only difference is
that under the new method the discount granted is reflected in sales as opposed
to cost of goods sold under the original method. The following table illustrates
the impact of the change.
Second Quarter 1998 Dollars Dollars % %
(Dollars in thousands) As Reported Adjusted As Adjusted
(New Method) (Original Reported (Original
Method) (New Method)
Method)
Net sales $2,353,260 $2,379,642 100.00 100.00
Cost of goods sold 1,826,657 1,853,039 77.62 77.87
Gross profit 526,603 526,603 22.38 22.13
Selling and administrative 352,609 352,609 14.98 14.82
expenses
Depreciation and 54,012 54,012 2.30 2.27
amortization
Operating income 119,982 119,982 5.10 5.04
Interest expense 23,154 23,154 0.99 0.97
Income before income taxes 96,828 96,828 4.11 4.07
Provision for income taxes 36,795 36,795 1.56 1.55
Net income 60,033 60,033 2.55 2.52
Basic and diluted earning $0.13 $0.13
per share
Weighted average number of 477,505 477,505
shares outstanding
-9-
This change will reduce sales reported in future quarters by approximately two
percent. The adjusted percentage of sales figures included in the table above
are more comparable to figures reported in previous quarters.
Current year sales increased 4.8% and 4.9% over the second quarter and year to
date 1997, respectively, excluding 1997 sales for stores in the Company's
Southwest market which closed during the fourth quarter of 1997. Same store
sales increased 2.7% for second quarter and 2.2% year to date.
The Company's 1998 business plan includes opening 75 new stores, closing 32
stores (approximately 14 of these closings will be relocations) and renovating
approximately 133 existing stores. With this growth plan, the Company
anticipates a net increase in store square footage of 8.0% in 1998. As of June
20, 1998, the Company had opened 33 new stores, closed 15 stores (of which seven
were relocations), and completed renovations to 56 existing stores.
Gross profits of 22.38% for the second quarter and 22.15% year to date (or
22.13% and 22.03%, respectively, adjusted to reflect the original method of
collecting sales tax), compared favorably against prior year gross profits of
21.67% both in the second quarter and year to date. The increase in gross profit
is due to continued category management initiatives and solid results in higher
margin areas such as perishables and frozen foods. The second quarter LIFO
charge was $2.1 million. The Company's internal testing for the second quarter
indicated a minimal inflation rate of 0.5% stemming primarily from an increase
in tobacco and paper prices, an increase in dairy prices due to the rising cost
of butterfat, and an increase in canned tuna and pineapple prices resulting from
the impact of poor weather conditions (El Nino). These increases were offset by
deflation in the grocery category primarily due to a decrease in coffee and
juice prices. All other significant merchandise categories had no inflation. The
current LIFO provision ($5.5 million year to date) is adequate to cover this
level of inflation.
For the second quarter of 1998, selling and administrative expenses were $352.6
million or 14.98% of sales (14.82% adjusted to reflect the original method of
collecting sales tax) as compared to $345.4 million or 14.87% of sales in the
corresponding period of the prior year. Selling and administrative expenses
include the write-off of $1.4 million in debt issuance costs related to the
convertible subordinated debentures which were redeemed during second quarter.
Year to date selling and administrative expenses of 14.79% improved over last
year resulting from (1) a continued focus on cost containment, (2) improved
sales performance, (3) the fourth quarter 1997 closing of the under-performing
stores in the Company's Southwest market, and (4) improvement in the cost
structure at Kash n' Karry due to the integration of all administrative
functions during 1997.
-10-
During the quarter the Company recorded $3.9 million in store closing costs
(included in Selling and Administrative Expenses on the Company's Consolidated
Statement of Income), related to planned store closings. These costs are
included in "Additions" in the table below.
Store Closing Costs
Reduction
of Asset Lease Accrued
(Dollars in millions) Values Liabilities Expenses Total
Balance at March 28,1998 $38.6 $125.6 $8.6 $172.8
Additions 0.0 3.5 0.4 3.9
Reductions -0.2 -6.1 -6.0 -12.3
Reclassifications 1.3 -2.5 1.2 0.0
Recognition of unused 0.0 0.0 0.0 0.0
reserves
Balance at June 20, 1998 $39.7 $120.5 $4.2 $164.4
Significant reductions in the Company's store closing costs primarily include
fees for lease terminations and on-going rent payments made on remaining lease
obligations.
The Company continues to market the remaining closed stores and distribution
center in the Southwest market, which the Company exited in the fourth quarter
of 1997. At the end of the second quarter 1998, 52 of the 61 stores in the
Southwest market had been disposed. As of June 20, 1998 the Company has
received $85.1 million in proceeds related to these disposition efforts
since closing the stores in November of 1997.
At the end of the second quarter of 1998 the Company had $164.4 million in store
closing costs related to 154 stores (149 leased and 5 owned) and two
distribution centers. Disposition efforts on the properties related to these
stores(leases, equipment and store buildings) began immediately following the
store closing and will continue until all related properties are disposed.
Depreciation and amortization of $54.0 million was 2.30% of sales
compared to 2.24% of sales in the second quarter of 1997. Year to date
depreciation and amortization was $106.4 million or 2.28% of sales. The quarter
and year to date increases are primarily due to leasehold improvements and
equipment purchases for new stores and renovations since the second quarter of
last year.
Interest expense of $23.2 million for the second quarter of 1998 and $50.8
million year to date decreased $4.6 million and $3.7 million, respectively,
compared to the same periods of 1997 primarily due the pre-payment of $50
million in note purchase agreements during the fourth quarter of 1997, offset by
an increase in interest expense on store capital leases resulting from new store
openings and renovations.
-11-
Net income for the quarter was $60.0 million or 2.55% of sales as compared to
2.06% of sales in the restated second quarter of the prior year. Basic and
diluted earnings per share were $.13 as compared to $.10 restated last year.
Liquidity and Capital Resources
Cash provided by operating activities totaled $200.5 million for the
24 weeks ended June 20, 1998 compared with $220.2 million for the same period
last year. The decrease was primarily due to an increase in inventory levels
offset by an increase in accounts payable and accrued expenses.
Capital expenditures totaled $141.9 million for the 24 weeks ended June
20, 1998 compared with $145.8 million for the same period in 1997. The Company
opened 33 new stores, closed 15 stores (including seven relocations), and
completed the renovation of 56 existing stores through the end of second quarter
of 1998. Food Lion plans to open a total of 75 new stores in 1998 and to
renovate approximately 133 stores. The Company anticipates that the majority of
the new stores will be opened under conventional leasing arrangements.
Capital expenditures are projected to total approximately $360 million in 1998.
These capital expenditures will be financed through funds generated from
operations, existing bank and credit lines, and other debt, if necessary.
The Company maintains the following bank and credit lines:
$250 million commercial paper program under which no borrowings were
outstanding during the first and second quarters of 1998 and 1997.
A revolving credit facility with a syndicate of commercial banks providing
$700 million in committed lines of credit, of which $350 million expires in
December, 1998 and the remaining $350 million will expire in December,
2001. There were no outstanding borrowings as the end of the second
quarter of 1998 or during 1997.
Additional short-term committed lines of credit totaling $35 million which
are available when needed. The Company is not required to
maintain compensating balances related to these lines of credit, and
borrowings may occur periodically. There were no borrowings as of June 20,
1998 or June 14, 1997. During the second quarter of 1998,
the Company had average borrowings of $6.4 million at a daily weighted
average interest rate of 5.6% with a maximum amount outstanding of $23
million.
-12-
Periodic short-term borrowings may be placed under informal credit
arrangements, which are available to the Company at the discretion of the
lender. Borrowings for the second quarter were as follows (see table below):
Informal Credit Arrangements
(dollars in millions) 1998 1997
Outstanding borrowings at end of second quarter $0 $0
Average borrowings $15.8 $13.4
Maximum amount outstanding $72.0 $55.0
Daily weighted average interest rate 5.62% 5.72%
During the second quarter of 1998, the Company did not purchase any shares of
Class A or Class B stock under the Company's $100 million stock repurchase plan
which expires in May of 1999. The Company is currently preserving its liquidity
for growth opportunities.
Other
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, are forward-looking
statements. 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 statements. 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, including filings with the Securities and
Exchange Commission of Forms 10-Q, 10-K and 8-K. Important assumptions and
other important factors that could cause actual results to differ materially
from those set forth in the forward - looking statements include: changes
in the general economy or in the Company's primary markets, changes in
consumer spending, competitive factors, the nature and extent of continued
consolidation in the industry, changes in the rate of inflation, changes in
state or federal legislation or regulation, adverse determinations with respect
to litigation or other claims, inability to develop new stores or complete
remodels as rapidly as planned, stability of product costs - supply or quality
control problems with the Company's vendors, and uncertainties detailed from
time-to-time in the Company's filings with the Securities and Exchange
Commission. In addition, with respect to the anticipated proceeds from the
disposition of assets in the Southwest, additional factors that could cause
results to differ materially include conditions in the real estate market and
general economic conditions in the local communities where the assets are
located.
-13-
Part II OTHER INFORMATION
Item 1. Legal Proceedings
Longman et al. v. Food Lion,Inc. and Tom E.Smith,4:92 CV 696
(M.D.N.C.)(complaint filed November 12, 1992, and amended January 23,
1993)("Longman");and
Feinman et al. v. Food Lion, Inc. and Tom E. Smith,4:92 CV
705(M.D.N.C.)(complaint filed November 13, 1992)("Feinman").
The Longman and Feinman actions asserted claims against the Company and Tom
E.Smith under Section 10(b) of the Securities Exchange Act of 1934, as amended,
and Rule 10b-5 for securities fraud and claims of common law fraud and negligent
misrepresentation. The actions had been consolidated for discovery and trial
purposes. On June 18, 1998, the court granted Food Lion's and Mr. Smith's
motions for summary judgment, and dismissed these actions in their entirety as
to both Food Lion and Mr.Smith.The plaintiffs have filed a notice of appeal in
these actions.
In re Food Lion, Inc. Fair Labor Standards Act "Effective Scheduling" Litigation
In re Food Lion, Inc., Fair Labor Standards Act "Effective Scheduling"
litigation, MDL Docket No. 929 involves a number of actions against the Company
which were transferred by the Multi-District Litigation Panel to the United
States District Court for the Eastern District of North Carolina for pretrial
proceedings (the "Multi-District Action"). The pretrial proceedings are complete
and pursuant thereto, a number of claims were dismissed. Other cases settled
(North Carolina, 1994 and 1995; Virginia, 1993 and 1994; Tennessee,1994;
Florida, 1997; and South Carolina, 1998) in an aggregate amount (inclusive of
attorneys' fees where awarded) not material to the Company's financial condition
or results of operations. Approximately 67 claims dismissed from the North
Carolina cases were consolidated and certified for appeal to the United States
Court of Appeals for the Fourth Circuit. A number of claims dismissed from the
South Carolina and Florida cases were added to the appeal. On June 4, 1998, the
Fourth Circuit decided in favor of Food Lion on all appeals, upholding the
District Court's dismissal of claims from the Multi-District Action (In re: Food
Lion, Incorporated, Fair Labor Standards Act "Effective Scheduling" Litigation,
No.MISC-92-198-5-F, CA-92-503-2 (4th Cir. June 4, 1998)(per curian).In the first
quarter of 1998, a petition for attorneys' fees was filed with respect to the
Florida claims and remains pending. Based upon currently available information,
the Company believes that any resulting liability will not have a material
adverse effect on the financial condition or results of operations of the
Company.
-14-
Item 2. Change in Securities
This item is not applicable.
Item 3. Defaults Upon Senior Securities
This item is not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
This item is not applicable.
Item 5. Other Information
This item is not applicable.
Item 6. Exhibits and Reports on Form 8-K
(a). Exhibits
27 Financial Data Schedule
(b). The Company did not file a report on Form 8-K for the period ended June
20, 1998.
-15-
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.
FOOD LION, INC.
Registrant
DATE July 23, 1998 BY: Laura Kendall
Laura Kendall
Vice President of Finance
Chief Financial Officer
Principal Financial Officer
-16-
EXHIBIT INDEX
SEQ. PAGE
Exhibit # DESCRIPTION NO.
27 Financial Data Schedule 18-19
-17-
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