<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
/X/ OF THE SECURITIES EXCHANGE ACT OF 1934
For the twelve weeks ended March 27, 1999
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
/ / OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File No. 0-785
NASH-FINCH COMPANY
(Exact Name of Registrant as Specified in its Charter)
DELAWARE 41-0431960
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
7600 France Ave. South, Edina, Minnesota 55435
(Address of principal executive offices) (Zip Code)
(612) 832-0534
(Registrant's telephone number including area code)
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 shares of common stock outstanding at May 4, 1999:
11,342,431 shares
<PAGE>
PART I - FINANCIAL INFORMATION
This report is for the twelve week interim period beginning January
3, 1999, through March 27, 1999.
The accompanying financial information has been prepared in
conformity with generally accepted accounting principles and practices, and
methods of applying accounting principles and practices, (including
consolidation practices) as reflected in the financial information included
in the Company's Annual Report on Form 10-K, filed with the Securities and
Exchange Commission for the preceding fiscal year. The financial statements
included in this quarterly report include all adjustments which are, in the
opinion of management, necessary to a fair presentation of the Company's
financial position and results of operations for the interim period.
The information contained herein has not been audited by independent
auditors and is subject to any adjustments which may develop in connection
with the annual audit of its accounts by the Company's independent auditors.
<PAGE>
NASH FINCH COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
Twelve Weeks Ended
----------------------------
March 27, March 28,
1999 1998
------------ -------------
<S> <C> <C>
Income
Net sales $ 922,846 923,525
Other revenues 11,951 9,441
------------ -------------
Total revenues 934,797 932,966
Cost and expenses:
Cost of sales 845,076 840,886
Selling, general and administrative 70,942 68,430
Depreciation and amortization 9,726 10,806
Interest expense 6,983 6,860
------------ -------------
Total costs and expenses 932,727 926,982
Earnings from continuing operations before income
taxes and extraordinary charge 2,070 5,984
Income taxes 878 2,265
------------ -------------
Earnings from continuing operations before
extraordinary charge 1,192 3,719
Discontinued operations:
Loss from discontinued operations, net of income
tax (benefit) - (1,091)
------------ -------------
Earnings before extraordinary charge 1,192 2,628
Extraordinary charge from early extinguishment
of debt, net of income tax benefit of $3,951 - 5,569
------------ -------------
Net earnings (loss) $ 1,192 (2,941)
============ =============
Basic and diluted earnings (loss) per share:
Earnings from continuing operations $ 0.11 0.33
Earnings (loss) from discontinued operations - (0.10)
------------ -------------
Earnings before extraordinary charge 0.11 0.23
Extraordinary charge from early extinguishment of debt,
net of income tax benefit - (0.49)
------------ -------------
Net earnings (loss) per share $ 0.11 (0.26)
============ =============
Weighted average number of common shares
outstanding and common equivalent shares outstanding: -
Basic 11,332 11,301
Diluted 11,332 11,362
</TABLE>
- ------------------------------------------------------------
See accompanying notes to consolidated financial statements.
<PAGE>
NASH FINCH COMPANY AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
March 27, January 2,
Assets 1999 1999
- ------ ------------------ --------------
(unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 11,415 848
Accounts and notes receivable, net 164,262 169,748
Inventories 256,150 267,040
Prepaid expenses 20,007 13,154
Deferred tax assets 17,468 16,318
------------------ --------------
Total current assets 469,302 467,108
Investments in affiliates 4,915 4,805
Notes receivable, noncurrent 13,473 12,936
Property, plant and equipment:
Land 27,771 25,386
Buildings and improvements 139,337 130,988
Furniture, fixtures and equipment 298,300 302,450
Leasehold improvements 60,614 61,983
Construction in progress 5,397 10,107
Assets under capitalized leases 26,043 24,878
------------------ --------------
557,462 555,792
Less accumulated depreciation and amortization (336,316) (333,414)
------------------ --------------
Net property, plant and equipment 221,146 222,378
Intangible assets, net 68,464 69,141
Investment in direct financing leases 15,983 16,155
Deferred tax asset - net 29,978 31,908
Other assets 8,429 8,664
------------------ --------------
Total assets $ 831,690 833,095
================== ==============
Liabilities and Stockholders' Equity
- ------------------------------------
Current liabilities:
Outstanding checks $ 22,668 33,329
Short-term debt payable to banks - 5,525
Current maturities of long-term debt and
capitalized lease obligations 2,456 2,563
Accounts payable 196,804 189,382
Accrued expenses 99,764 97,683
Income taxes 3,745 2,991
------------------ --------------
Total current liabilities 325,437 331,473
Long-term debt 298,606 293,280
Capitalized lease obligations 34,921 34,667
Deferred compensation 5,900 6,450
Other 10,167 10,752
Stockholders' equity:
Preferred stock - no par value
Authorized 500 shares; none issued - -
Common stock of $1.66 2/3 par value
Authorized 25,000 shares, issued 11,575 shares in 1999
and 1998 19,292 19,292
Additional paid-in capital 17,947 17,944
Restricted stock (102) (113)
Retained earnings 121,356 121,185
------------------ --------------
158,493 158,308
Less cost of 233 shares and 234 shares of
common stock in treasury, respectively (1,834) (1,835)
------------------ --------------
Total stockholders' equity 156,659 156,473
------------------ --------------
Total liabilities and stockholders' equity $ 831,690 833,095
================== ==============
</TABLE>
- ------------------------------------------------------------
See accompanying notes to consolidated financial statements.
<PAGE>
NASH FINCH COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Twelve Weeks Ended
-------------------------------
March 27, March 28,
1999 1998
------------- --------------
<S> <C> <C>
Operating activities:
Net earnings $ 1,192 (2,941)
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision for (use of) special charge (3,861) (850)
Discontinued operations (549)
Depreciation and amortization 9,726 11,078
Provision for bad debts 885 160
Provision for losses (recovery from) closed lease locations (715) (680)
Extraordinary charges - extinguishment of debt - 9,520
Deferred income taxes 780 (3,268)
Deferred compensation (551) (86)
(Earnings) loss of equity investments (60) (220)
Other (1,305) 108
Changes in operating assets and liabilities:
Accounts and notes receivable 3,745 9,127
Inventories 12,171 (190)
Prepaid expenses (6,823) (1,160)
Accounts payable 7,423 25,698
Accrued expenses 6,850 5,037
Income taxes 754 (737)
------------- --------------
Net cash provided by operating activities 29,662 50,596
------------- --------------
Investing activities:
Disposal of property, plant and equipment 2,666 2,189
Additions to property, plant and equipment
excluding capital leases (7,549) (13,474)
Business acquired, net of cash acquired (3,406) -
Loans to customers (5,938) (5,389)
Payments from customers on loans 6,143 5,035
Sale (repurchase) of receivables 300 (11,700)
Other 414 (30)
------------- --------------
Net cash used for investing activities (7,370) (23,369)
------------- --------------
Financing activities:
Proceeds from long-term debt 449 -
(Payments) proceeds from revolving debt 5,000 100,000
Dividends paid (1,021) (2,038)
(Payments) proceeds from short-term debt (5,525) 4,855
Payments of long-term debt (272) (106,570)
Payments of capitalized lease obligations (384) (370)
Extinguishment of debt (9,378)
(Increase) decrease in outstanding checks (10,661) (14,161)
Other 688 275
------------- --------------
Net cash (used in) provided by financing activities (11,726) (27,387)
------------- --------------
Net increase (decrease) in cash $ 10,566 (160)
============= ==============
</TABLE>
- ------------------------------------------------------------
See accompanying notes to consolidated financial statements.
<PAGE>
NASH FINCH COMPANY AND SUBSIDIARIES
Consolidated Statements of Stockholders' Equity
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Fiscal period ended March 27, 1999
January 2, 1999 and January 3, 1998 Foreign
(In thousands, except per share amounts) Common Stock Additional currency
--------------------- paid-in Retained translation
Shares Amount capital earnings adjustment
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balance at December 28, 1996 11,574 $19,290 16,816 200,322 (950)
Net earnings (loss) - - - (1,228) -
Dividend declared of $.72 per share - - - (8,110) -
Treasury stock issued upon exercise of options - - 354 - -
Amortized compensation under restricted stock plan - - - - -
Repayment of notes receivable from holder of
restricted stock - - - - -
Distribution of stock pursuant to performance awards - - 460 - -
Treasury stock purchased - - - - -
Foreign currency translation adjustment - - - - 950
Other 1 2 18 - -
----------- ------------ -------------- ------------- ----------
Balance at January 3, 1998 11,575 $19,292 17,648 190,984 -
Net earnings (loss) - - - (61,637) -
Dividend declared of $.72 per share - - - (8,162) -
Treasury stock issued upon exercise of options - - 47 - -
Amortized compensation under restricted stock plan - - - - -
Repayment of notes receivable from holders of
restricted stock - - - - -
Distribution of stock pursuant to performance awards - - 246 - -
Treasury stock purchased - - - - -
Other 3 - -
----------- ------------ -------------- ------------- ----------
Balance at January 2, 1999 11,575 $19,292 17,944 121,185 -
Net earnings - - - 1,192 -
Dividend declared of $.09 per share - - - (1,021) -
Amortized compensation under restricted stock plan - - - - -
Repayment of notes receivable from holders of
restricted stock - - - - -
Distribution of stock pursuant to performance awards - - 3 - -
----------- ------------ -------------- ------------- ----------
Balance at March 27, 1999 (unaudited) 11,575 $19,292 17,947 121,356 -
=========== ============ ============== ============= ==========
<CAPTION>
Treasury Stock Total
Restricted ----------------------- stockholders'
Stock Shares Amount equity
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Balance at December 28, 1996 (500) (307) $(2,117) 232,861
Net earnings (loss) - - - (1,228)
Dividend declared of $.72 per share - - - (8,110)
Treasury stock issued upon exercise of options - 29 143 497
Amortized compensation under restricted stock plan 29 - - 29
Repayment of notes receivable from holder of
restricted stock 80 - - 80
Distribution of stock pursuant to performance awards - 30 148 608
Treasury stock purchased - (4) (89) (89)
Foreign currency translation adjustment - - - 950
Other - - - 20
-------- --------- ------------ -----------
Balance at January 3, 1998 (391) (252) $(1,915) 225,618
Net earnings (loss) - - - (61,637)
Dividend declared of $.72 per share - - - (8,162)
Treasury stock issued upon exercise of options - 4 21 68
Amortized compensation under restricted stock plan 72 - - 72
Repayment of notes receivable from holders of
restricted stock 206 - - 206
Distribution of stock pursuant to performance awards - 15 75 321
Treasury stock purchased - (1) (16) (16)
Other - - - 3
-------- --------- ------------ -----------
Balance at January 2, 1999 (113) (234) $(1,835) 156,473
Net earnings - - - 1,192
Dividend declared of $.09 per share - - - (1,021)
Amortized compensation under restricted stock plan 2 - - 2
Repayment of notes receivable from holders of
restricted stock 9 - - 9
Distribution of stock pursuant to performance awards - 1 1 4
-------- --------- ------------ -----------
Balance at March 27, 1999 (unaudited) (102) (233) $(1,834) 156,659
======== ========= ============ ===========
</TABLE>
- ------------------------------------------------------------
See accompanying notes to consolidated financial statements.
<PAGE>
NASH FINCH COMPANY AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 27, 1999
NOTE 1
The accompanying financial statements include all adjustments which
are, in the opinion of management, necessary to present fairly the financial
position of the Company and its subsidiaries at March 27, 1999, and January
2, 1999, and the result of operations for the 12-weeks ending March 27, 1999
and March 28, 1998, and the changes in cash flows for the 12-week periods
ending March 27, 1999 and March 28, 1998, respectively. All material
intercompany accounts and transactions have been eliminated in the
consolidated financial statements. Results of operations for the interim
periods presented are not necessarily indicative of the results to be
expected for the full year.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
NOTE 2
The Company uses the LIFO method for valuation of a substantial
portion of inventories. If the FIFO method had been used, inventories would
have been approximately $47.4 million and $47.1 million higher at March 27,
1999 and January 2, 1999, respectively.
NOTE 3
The following table sets forth the computation of basic and diluted
earnings per share.
<TABLE>
<CAPTION>
Twelve Weeks Ended
-------------------------------
March 27, March 28,
1999 1998
------------------ -----------------
<S> <C> <C>
Numerator:
Earnings from continuing operations $
1,192 3,719
------------------ -----------------
Denominator:
Denominator of basic earnings per
share; weighted-average shares 11,332 11,301
Effect of dilutive securities:
Employee stock options - 35
Contingent - 26
------------------ -----------------
Dilutive common shares - 61
Denominator for diluted earnings
per share; adjusted weighted
average shares 11,332 11,362
================== =================
Basic earnings per share $ .11 .33
=================
==================
Diluted earnings per share $ .11 .33
================== =================
</TABLE>
NOTE 4
<PAGE>
On December 29, 1997, a Receivables Purchase Agreement (the
"Agreement") was executed by the Company, Nash Finch Funding Corporation
(NFFC), a wholly owned subsidiary of the Company, and a certain third party
purchaser (the "Purchaser") pursuant to a securitization transaction. The
Agreement is a five-year, $50 million revolving receivable purchase facility
allowing the Company to sell additional receivables to NFFC, and NFFC to
sell, from time to time, variable undivided interest in these receivables to
the Purchaser. NFFC maintains a variable undivided interest in these
receivables and is subject to losses on its share of the receivables and,
accordingly, maintains an allowance of doubtful accounts. As of January 2,
1999 and March 27, 1999 the Company had sold $45.7 million and $45.4 million,
respectively, of accounts receivable on a non-recourse basis to NFFC. NFFC
sold $36.8 million and $37.1 million, respectively, of its undivided interest
in such receivables to the Purchaser, subject to specified collateral
requirements.
NOTE 5
1998 SPECIAL CHARGES
During the fourth quarter of 1998, the Company recorded special
charges, totaling $68.5 million relative to abandonment and impairment of
assets, and consolidation of certain warehouse and retail stores. During the
first quarter, the Company closed distribution centers in Appleton,
Wisconsin, Grand Island, Nebraska and Liberal, Kansas and closed three retail
stores. Costs totaling $2.5 million incurred largely as a result of the
closure of these units were charged to accrued expenses. At March 27, 1999,
remaining accrued liabilities established as a result of the 1998 special
charges totaled $24.2 million.
1997 SPECIAL CHARGES
During the third quarter of 1997, the Company recorded special
charges, totaling $31.3 million relative to asset impairment and
consolidation of certain warehouses and retail stores. During the first
quarter of 1999, costs totaling $1.1 million incurred as a result of the
closing of certain warehouses and retail stores were charged to accrued
expenses. At March 27, 1999, remaining accrued liabilities established for
purposes of the 1997 special charges totaled $6.5 million.
<PAGE>
NOTE 6
Major Segments of the Business
Twelve weeks ended March 27, 1999
<TABLE>
<CAPTION>
All
(In thousands) Wholesale Retail Military Other Totals
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Revenues from external
customers $ 543,255 162,521 224,175 568 930,519
Intra segment revenues 99,773 - - 1,177 100,950
Segment pretax profit
(loss) 8,813 558 6,154 (181) 15,344
</TABLE>
Twelve weeks ended March 28, 1998
<TABLE>
<CAPTION>
All
(In thousands) Wholesale Retail Military Other Totals
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Revenues from external
customers $ 553,660 171,048 206,141 553 931,402
Intra segment revenues 103,353 - - 649 104,002
Segment pretax profit
(loss) 8,709 250 5,268 (14) 14,213
</TABLE>
Reconciliation
<TABLE>
<CAPTION>
(In thousands) 1999 1998
- -------------------------------------------------------------------------
<S> <C> <C>
PRETAX PROFIT OR LOSS
Total profit for segments $ 15,344 14,213
Unallocated amounts
Adjustment of inventory to LIFO (300) 600
Unallocated corporate overhead (12,974) (8,829)
============== =============
Income from continuing operations
before income taxes $ 2,070 5,984
============== =============
</TABLE>
NOTE 7
On May 3, 1999 the Company announced an agreement to acquire 18
supermarkets owned by Erickson's Diversified Corporation ("Erickson") through
a cash purchase of Erickson's stock. Erickson, with revenues of approximately
$200 million, is headquartered in Hudson, Wisconsin and operates stores in
Minnesota and Wisconsin.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
REVENUES
Total revenues for the first quarter were $934.8 million, an
increase of .2% over $933.0 million for the same period last year.
Wholesale segment revenues were $543.3 million compared to $553.7
million for the year-ago period. The decline from the prior year quarter
reflects the loss of an independent customer in Nebraska and the loss of
business from a national chain in Colorado.
Retail segment revenues were $162.5 million, a decline of 5.0% from
$171.0 million a year ago. A net reduction of four retail stores contributed
to the decline in year over year revenues. However, same store sales
increased 2.0% compared to the first quarter last year.
Military segment revenues increased 8.8% from $206.1 million in
1998 to $224.2 million in 1999. The increase is attributed to strong overseas
business and the introduction of new product lines.
GROSS MARGINS
Gross margins for the quarter were 9.6% in 1999 compared to 9.9% in
1998. The lower margin reflects a growth in the proportion of lower margin
wholesale and military business. During the quarter, combined wholesale and
military business represented 82.1% of total consolidated revenues compared
to 81.4% last year. Higher tobacco prices, which more than offset food price
deflation, resulted in a LIFO charge of $.3 million this year, compared to a
LIFO credit of $.5 million reported last year.
SELLING, GENERAL AND ADMINISTRATIVE
Selling, general and administrative expenses as a percent of total
revenues were 7.6% compared to 7.3% last year. The current year quarter
includes expenses of $3.1 million related to Year 2000 remediation. The
Company also incurred non-recurring costs of $1.3 million primarily related
to closing warehouses in Liberal, Kansas, Appleton, Wisconsin, and Grand
Island, Nebraska. These costs could not be provided for as part of the
Company's 1998 restructuring charge. The warehouses were closed in order to
consolidate under utilized facilities and enhance warehouse productivity.
DEPRECIATION EXPENSE
Depreciation and amortization expense decreased 10% compared to last
year. The decrease reflects a reduction in depreciable assets due to the
closing of warehouses and retail stores since last year, and the write down
of impaired assets as part of the restructuring charge
<PAGE>
recorded at the end of 1998. Amortization of goodwill and other intangibles
for the current and prior year quarters was $1.5 million.
INTEREST EXPENSE
Interest expense for the quarter was $7.0 million, an increase of
1.8% over last year. The increased interest costs are attributed to higher
average borrowing rates partially offset by lower borrowing levels compared
to a year ago.
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EXTRAORDINARY
CHARGE
Earnings from continuing operations before income taxes and
extraordinary charge were $2.1 million in 1999 compared to $6.0 million last
year. The reduction is primarily attributed to Year 2000 remediation costs
and non-recurring costs associated with the closing of certain facilities
which could not be provided for as part of the 1998 restructuring charge.
INCOME TAXES
The effective income tax rate for 1999 is estimated at 42.4%
compared to a tax rate benefit of 32.2% for 1998. The 1998 annual rate was
significantly affected by losses related to the restructuring charges.
EXTRAORDINARY CHARGE
During the first quarter of 1998, the Company prepaid $106.3 million
of senior notes, and paid prepayment premiums and wrote-off related deferred
financing costs totaling $9.5 million. This transaction resulted in an
extraordinary charge of $5.6 million, or $.49 per share, after income tax
benefits of $3.9 million.
DISCONTINUED OPERATIONS
In October 1998, the Company adopted a plan to sell its produce
growing and marketing subsidiary, Nash DeCamp Company. The Company is
actively marketing this operation with an expected sale before mid-year 1999.
At January 2, 1999 the Company recorded an estimated pretax loss
resulting from the expected sale of Nash DeCamp Company of $27.5 million,
which includes a provision for anticipated operating losses until disposal of
$1.8 million. In the first quarter, Nash DeCamp Company reported operating
losses of $.5 million which were applied against the provision.
YEAR 2000
<PAGE>
The Company has developed a remediation plan toward resolving Year
2000 issues. The plan addresses the modification and/or replacement of
existing business critical software and the identification of the
non-information technology systems that may be affected by Year 2000. In
addition, the plan assesses the readiness of third parties and the related
risks to the Company of their non-compliance. To expedite this Year 2000
solution, the Company has reallocated internal resources and has contracted
outside resources to assist in the remediation effort. The Company's plan to
assess and update systems for Year 2000 compliance consists of three major
phases: 1) conducting a complete INVENTORY and assessment of potentially
affected business areas, 2) REMEDIATION of affected systems and 3) TESTING
remediated components. The chart below shows the percent completed of each
phase as of the end of the first quarter 1999:
<TABLE>
<CAPTION>
Inventory Remediation Testing
------------------- ------------------- ----------------
<S> <C> <C> <C>
I/T Systems 100% 45% 37%
Non I/T Systems 100% 50% 0%
</TABLE>
The company expects to complete all mission-critical areas of the project in
the third quarter of 1999 and is currently on schedule.
The total cost for Year 2000 remediation is estimated at
approximately $18.5 million, which includes $4.0 million for the purchase of
new equipment that will be capitalized and $14.5 million that will be
expensed. Project expenses totaling $3.0 million and $3.1 million were
incurred in the fourth quarter of 1998 and the first quarter of 1999,
respectively, primarily for internal and external costs associated with the
modification of existing software. The total remaining expenditures
associated with the Year 2000 project are estimated to be approximately $12.1
million.
The costs or consequences of incomplete or untimely resolution of
the Year 2000 issue may have a material effect on the Company's business,
results of operations and financial condition. However, at this time, the
Company is unable to measure the monetary impact of any such failure to
comply or failure of other parties on which it is dependent.
The Company is currently in the process of establishing and
implementing contingency plans to provide viable alternatives for the
Company's core business processes. The plans will describe the
communications, operations and activities necessary in the event of a Year
2000 systems related failure. Contingency planning is currently 55 percent
complete. Comprehensive contingency plans will be in place by the end of the
second quarter of 1999.
LIQUIDITY AND CAPITAL RESOURCES
Historically, the Company has financed its capital needs through a
combination of internal and external sources. These sources include
<PAGE>
cash flow from operations, short-term bank borrowings, various types of
long-term debt and lease financing.
Cash flow provided from operations totaled $29.7 million for the
quarter compared to $50.6 million last year. The decline in operating cash
flow resulted primarily from changes in working capital partially offset by
higher net income for the quarter. Working capital was $143.8 million at the
end of the quarter compared to $135.6 million at year end. The current ratio
increased from 1.41 at the end of 1998 to 1.44 at the end of the first
quarter.
Other transactions affecting liquidity during the quarter include
capital expenditures of $7.5 million, cash dividends of $1.0 million and the
acquisition of five Iowa retail stores for approximately $3.4 million in cash.
The Company believes that borrowing under the revolving credit
facility, the sale of subordinated notes, other credit agreements, cash flows
from operating activities and lease financing will be adequate to meet the
Company's working capital needs, planned capital expenditures and debt
service obligations for the foreseeable future.
FORWARD-LOOKING STATEMENTS
The information contained in this Form 10-Q Report includes
forward-looking statements made under the safe harbor provisions of the
Private Securities Litigation by the use of words like "believes," "expects,"
"may," "will," "should," "anticipates," or similar expressions, as
discussions of strategy. Although such statements represent management's
current expectations based on available data, they are subject to risks,
uncertainties and other factors which could cause actual results to differ
materially from those anticipated. Such risks, uncertainties and other
factors may include, but are not limited to, the ability to: meet debt
service obligations and maintain future financial flexibility; respond to
continuing competitive pricing pressures; retain existing independent
wholesale customers and attract new accounts; address Year 2000 issues as
they affect the Company, its customers and vendors; and fully integrate
acquisitions and realize expected synergies.
<PAGE>
PART II - OTHER INFORMATION
Items 1, 2, 3, 4 and 5 are not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) EXHIBITS:
27.1 Financial Data Schedule
(b) REPORT ON FORM 8-K
Not applicable.
<PAGE>
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.
NASH-FINCH COMPANY
Registrant
Date: May 7, 1998 By /s/ John A. Haedicke
------------------------------------
John A. Haedicke
Executive Vice President and Chief
Financial and Administrative Officer
By /s/ Lawrence A. Wojtasiak
------------------------------------
Lawrence A. Wojtasiak
Controller
<PAGE>
NASH FINCH COMPANY
EXHIBIT INDEX TO QUARTERLY REPORT
ON FORM 10-Q
For the Twelve Weeks Ended March 27, 1999
<TABLE>
<CAPTION>
Item No. Item Method of Filing
- -------- ---- ----------------
<S> <C> <C>
27.1 Financial Data Schedule Filed herewith
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-01-2000
<PERIOD-START> JAN-03-1999
<PERIOD-END> MAR-27-1999
<CASH> 11,415
<SECURITIES> 0
<RECEIVABLES> 189,423
<ALLOWANCES> 25,161
<INVENTORY> 256,150
<CURRENT-ASSETS> 469,302
<PP&E> 557,462
<DEPRECIATION> 336,316
<TOTAL-ASSETS> 831,690
<CURRENT-LIABILITIES> 325,437
<BONDS> 298,606
0
0
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<CGS> 845,076
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<INCOME-PRETAX> 2,070
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<NET-INCOME> 1,192
<EPS-PRIMARY> .11
<EPS-DILUTED> .11
</TABLE>
