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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)
APRIL 7, 1997
PUEBLO XTRA INTERNATIONAL, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
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DELAWARE 33-63372 65-0415593
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(STATE OR OTHER JURISDICTION (COMMISSION (I.R.S. EMPLOYER
OF INCORPORATION) FILE NUMBER) (IDENTIFICATION NO.)
1300 N.W. 22ND STREET, POMPANO BEACH, FLORIDA 33069
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
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REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (954) 977-2500
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(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
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ITEM 5. OTHER EVENTS.
The information set forth in the press release issued by Pueblo Xtra
International, Inc., attached hereto as Exhibit 99.1, is incorporated herein by
reference.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
99.1 Press release of Pueblo Xtra International, Inc., dated April 7,
1997.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PUEBLO XTRA INTERNATIONAL, INC.
/s/ DAN CAMMARATA
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Dan Cammarata
Controller and Chief Accounting
Officer
Dated: April 11, 1997
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EXHIBIT INDEX
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EXHIBIT NO. DESCRIPTION
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99.1 Press release of Pueblo Xtra International, Inc. dated April 7, 1997.
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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
San Juan, Puerto Rico
April 7, 1997
PUEBLO XTRA INTERNATIONAL, INC. ANNOUNCES FISCAL 1997 EARNINGS
Pueblo Xtra International, Inc., the largest supermarket chain and video
rental operator in Puerto Rico and the U.S. Virgin Islands, today reported its
financial results for the fiscal year ended January 25, 1997.
At the fiscal year-end, the Company operated a total of 50 supermarkets and
27 Blockbuster video stores. Sales for the 1997 fiscal year decreased $125
million, or 10.9%, from $1,145.4 million in the prior year to $1,020.1 million.
The primary factor in the overall sales reduction was the Company's decision in
January 1996 to discontinue its retail operations in the competitive Florida
market in order to focus on its core markets where it has a stronger competitive
position and greater profit opportunities. Net sales from the Company's
supermarket and video operations in Puerto Rico and the U.S. Virgin Islands
increased by $27.7 million, or 2.8%, in fiscal 1997 over fiscal 1996. The
Company's Puerto Rico supermarket operations experienced a same store sales
decrease for the year of 2.6% although such operations had an increase of 3.4%
in same store sales for the fourth quarter of fiscal 1997 compared to the
comparable quarter in the previous year. U.S. Virgin Islands supermarket
operations experienced a same store sales increase for fiscal 1997 of 7.0%.
Blockbuster operations experienced a same store sales increase for fiscal 1997
of 10.5%.
Gross profit as a percentage of net sales in fiscal 1997 was 25.5% as
compared to 25.9% in the prior year. Gross margin in the Puerto Rico and U.S.
Virgin Islands markets decreased to 25.6% in fiscal 1997 from 26.3% in fiscal
1996.
Selling, general and administrative expenses decreased from the prior year
amount of $240.2 million to $213.5 million, or 11.1%, primarily as a result of
the closing of the Florida operations. Selling, general and administrative
expenses, as a percentage of sales, was 20.9% in fiscal 1997, which was
comparable to that of fiscal 1996. Such expenses attributable to Puerto Rico and
the U.S. Virgin Islands increased in fiscal 1997, primarily as a result of a
$2.9 million charge for the closing of two supermarkets in Puerto Rico, a $2.7
million increase in advertising expenditures in such areas, $1.9 million in
consulting fees arising from an ongoing project to improve supermarket
operations and efficiencies in Puerto Rico, and $1.1 million in severance costs
recorded in connection with the elimination of 440 store employees in Puerto
Rico.
Results of operations for fiscal 1997 were a net loss of $16.9 million
compared to a net loss of $32.4 million for fiscal 1996. The Company recorded an
unusual charge in both fiscal years resulting from the closing of its Florida
retail operations.
SUMMARY OF OPERATING RESULTS
(DOLLARS IN THOUSANDS)
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FISCAL YEAR ENDED
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JANUARY 25, 1997 JANUARY 27, 1996
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Net Sales............................................. $1,020,056 $1,145,370
Gross Profit.......................................... 259,727 296,880
Selling, General and Administrative Expenses.......... 213,485 240,219
Unusual Charges....................................... 4,160 32,161
Operating Profit...................................... 954 (19,169)
Interest Expense, Net................................. 30,182 33,346
Net Loss.............................................. (16,918) (32,357)
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During fiscal 1997, the Company developed and commenced the implementation
of a revised business strategy focused on comparable store sales performance,
selected new store expansion, and improved operating, purchasing and
merchandising practices. The Company believes that the increase in same store
sales in Puerto Rico for the fourth quarter of fiscal 1997 discussed above is
attributable in part to the
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implementation of this strategy. Another component of this strategy has been the
reorganization of labor scheduling practices and store operating procedures,
which enabled the Company to eliminate 440 store employees in January, 1997.
The Company has previously announced it is currently pursuing a refinancing
plan designed to replace its existing bank credit facilities with longer term
capital. Such plan is currently expected to be completed by the end of the
Company's current fiscal quarter and to provide increased liquidity and
additional financial and operating flexibility.
The Company recently announced that David L. Aston, a 28-year veteran of
the supermarket industry and most recently president of Waldbaum and Superfresh
Foods, has been appointed as President of the Puerto Rico Retail Food Division.
In addition, William T. Keon, III, President and Chief Executive Officer of the
Company, announced today the promotion of the following existing members of
management: Filiberto Berrios, previously Vice President and General Manager of
the Blockbuster Division, has been named Senior Vice President of such division;
Thomas F. Johnson, previously General Manager of the Virgin Islands Division,
has become a Vice President of the Company and President of the Virgin Islands
Division; Daniel Cammarata, the Controller of the Company, has also been named
Chief Accounting Officer; Alicia Echavarria, the Vice President of Human
Resources for the Puerto Rico Division, has also become Assistant Secretary of
the Company; and Richard Skelly, who is Director of Finance, has also been named
Assistant Secretary and Assistant Treasurer of the Company.
The information herein with respect to the Company's business strategy and
the refinancing plan contains certain forward-looking statements. These
statements are based on the Company's expectations and are subject to various
risks and uncertainties, including successful implementation of the business
strategy and completion of negotiation and documentation related to such
refinancing plan.
