<PAGE>
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): June 20, 1997
SHOPKO STORES, INC.
(Exact name of registrant as specified in its charter)
Minnesota 1-10876 41-0985054
--------------- ------------ --------------
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) No.)
700 Pilgrim Way
Green Bay, Wisconsin 54304
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (414) 497-2211
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Item 5. Other Events.
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On June 20, 1997, ShopKo Stores, Inc., a Minnesota corporation ("ShopKo"),
announced results of operations for its first fiscal quarter (16 weeks) ended
June 14, 1997. ShopKo's press release dated June 20, 1997 is attached hereto as
an exhibit and is incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
---------------------------------
(c) Exhibits
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Exhibit Number Description
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99.1 Press Release dated June 20, 1997.
2
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SIGNATURES
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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 hereunto duly authorized.
Dated: June 20, 1997 SHOPKO STORES, INC.
By: /s/ Richard D. Schepp
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Richard D. Schepp, Vice President Legal Affairs
3
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EXHIBIT INDEX
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Exhibit No. Description
- ----------- -----------
99.1 Press Release dated June 20, 1997
4
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EXHIBIT 99.1
------------
<PAGE>
Contact: Lawrence J. Clark
(414) 496-4113
SHOPKO REPORTS INCREASED FIRST QUARTER SALES AND EARNINGS
---------------------------------------------------------
GREEN BAY, WIS. June 20 (PRNEWSWIRE)-- ShopKo Stores, Inc., (NYSE: SKO) reported
first quarter consolidated sales (16 weeks through June 14, 1997) increased 17.9
percent to $720.0 million versus $610.9 million reported for the same period
last year. Retail comparable store sales increased 5.1 percent in the first
quarter. First quarter net income increased 25.7 percent to $7.2 million or
$0.22 per share, compared to $5.8 million or $0.18 per share for the same period
last year. Results for the first quarter of fiscal 1998 are net of a
nonrecurring pre-tax charge of $2.8 million ($0.05 per share) for costs incurred
in connection with the business combination agreement with Phar-Mor, Inc., which
was terminated on April 2, 1997.
Dale P. Kramer, President and Chief Executive Officer said, "The Company is
extremely pleased with the retail store performance and the continued growth in
ProVantage health services."
The following table summarizes first quarter sales by business segment:
Consolidated Sales Summary (dollars in millions)
<TABLE>
Business Segments Quarter Ended % Change
- ----------------- ------------- --------
6/14/97 6/15/96 Total Comp
------- ------- ----- ----
<S> <C> <C> <C> <C>
Retail Store $577.4 $546.6 5.6 5.1
ProVantage 150.1 69.5 116.1 N/A
Intercompany (7.5) (5.2) N/A N/A
Consolidated $720.0 $610.9 17.9 --
</TABLE>
The increase in ProVantage sales is due primarily to internally generated growth
and the acquisition of CareStream Scrip Card in August 1996.
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Consolidated gross margin as a percentage of sales for the first quarter was
22.7 percent versus 24.0 percent for the same period last year. Retail store
gross margin as a percentage of sales was 26.5 percent this year compared to
25.8 percent for the first quarter of last year. The gross margin percentages
reflect LIFO charges of $1.4 million this year versus $1.1 million last year.
The increase in the retail store gross margin rate is primarily due to a shift
in the sales mix away from lower gross margin promotional sales. ProVantage
gross margin as a percentage of sales was 6.9 percent for the first quarter of
this year compared to 7.4 percent for the same period last year. This decrease
is primarily attributable to a larger percentage of ProVantage's sales coming
from the lower gross margin claims processing activities.
Consolidated selling, general and administrative expenses as a percentage of
sales decreased to 17.2 percent for the first quarter this year from 18.6
percent last year. The decrease is primarily due to increased ProVantage sales.
Retail store selling, general and administrative expenses were 19.4 percent of
net sales for both fiscal years. ProVantage selling, general and administrative
expenses were 3.6 percent of net sales this year compared to 2.9 percent of net
sales last year. This increase is primarily due to costs associated with
acquired Scrip Card lives.
Shopko Stores, Inc. is a leading regional retailer operating 130 stores and four
free-standing optical centers in 16 states, concentrated in the Upper Midwest,
Mountain and Pacific Northwest states, and ProVantage, Inc., which specializes
in prescription benefit management (PBM), vision benefit management (VBM) and
health information technology (HIT). Shopko stock is traded on the New York
Stock Exchange under the symbol "SKO".
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SHOPKO STORES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
<TABLE>
<CAPTION>
---------------------- ----------------------
RETAIL SEGMENT PROVANTAGE SEGMENT
---------------------- ----------------------
Quarter to Date Quarter to Date
---------------------- ----------------------
June 14, June 15, June 14, June 15,
1997 1996 1997 1996
(16 Weeks) (16 Weeks) (16 Weeks) (16 Weeks)
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Revenues:
Net sales $577,355 $546,664 $150,133 $69,474
Licensed department rentals and other income 3,541 3,686 302 145
-------- -------- -------- -------
580,896 550,350 150,435 69,619
Costs and expenses:
Cost of sales 424,193 405,421 139,712 64,326
Selling, general and administrative expenses 112,290 106,237 5,402 2,034
Nonrecurring charge
Depreciation and amortization expenses 18,177 17,373 1,222 321
-------- -------- -------- -------
554,660 529,031 146,336 66,681
Income from operations 28,236 21,319 4,099 2,938
</TABLE>
<TABLE>
<CAPTION>
---------------------- ----------------------
CORPORATE TOTAL
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Quarter to Date Quarter to Date
---------------------- ----------------------
June 14, June 15, June 14, June 15,
1997 1996 1997 1996
(16 Weeks) (16 Weeks) (16 Weeks) (16 Weeks)
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Revenues:
Net sales $(7,520) $(5,227) $719,968 $610,911
Licensed department rentals and other income 9,843 3,831
------- ------- -------- --------
(7,520) (5,227) 723,811 614,742
Costs and expenses:
Cost of sales (7,520) (5,227) 556,385 464,520
Selling, general and administrative expenses 6,460 5,117 124,152 113,388
Nonrecurring charge 2,800 - 2,800 -
Depreciation and amortization expenses 130 133 19,529 17,827
------- ------- -------- --------
1,870 23 702,866 595,735
Income from operations (9,390) (5,250) 20,945 19,007
Interest expenses 9,025 9,522
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Earnings before income taxes 11,920 9,485
Provision for income taxes 4,682 3,726
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Net earnings $ 7,238 $ 5,759
======== ========
Basic net earnings per common share $ 0.22 $ 0.18
======== ========
Weighted average number of common
shares outstanding 32,240 32,020
Diluted net earnings per common share $ 0.22 $ 0.18
======== ========
Adjusted weighted average number of common
shares outstanding 32,767 32,431
</TABLE>
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SHOPKO STORES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
June 14, June 15,
1997 1996
- --------------------------------------------------------------------------------
Cash and cash equivalents $ 172,110 $ 118,014
Receivables, less allowances 77,786 44,834
Merchandise inventories 358,527 343,969
Other current assets 17,116 18,031
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Total current assets 625,539 524,848
Other assets and deferred charges 63,620 24,738
Net property and equipment 587,974 604,206
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Total assets 1,277,133 1,153,792
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Accounts payable - trade 188,713 183,294
Accrued liabilities 173,666 107,679
Current portion of long-term obligations 2,014 1,090
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Total current liabilities 364,393 292,063
Long-term obligations 418,129 415,026
Deferred income taxes 23,510 22,729
Shareholders' equity 471,101 423,974
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Total liabilities and shareholders' equity 1,277,133 1,153,792
=========== ==========
SOURCE Shopko Stores, Inc.
-0- 06/20/97
/CONTACT: Lawrence J. Clark of Shopko Stores, Inc., 414-496-4113/
/Shopko Stores press releases available through Company News On-call by
fax, 800-758-5804, ext. 103639, or at http://www.prnewswire.com/
(SKO)
