Unified Grocers 2013 fiscal year 'in line with expectations'
The year-end financials are in line with our expectations, given the previously announced actions the Company took on some very important issues. These included a fee for the early extinguishment of senior secured notes ($9.8 million) which provides greater flexibility in day-to-day operations and lower ongoing borrowing costs; an increase in workers' compensation reserves for claims exposure ($9.1 million); and disposal costs related to leases and equipment ($2.5 million).
"This was a year of transition, course corrections and establishing a solid foundation for growth," said Bob Ling, President and Chief Executive Officer, Unified Grocers. Ling, who has been President of Unified since June, 2011, succeeded Al Plamann as Chief Executive Officer effective May 1, 2013. "We have a strong leadership team in place and a plan that gives us a clear understanding of where the company is headed and how we're going to improve sales and profits. The fourth quarter was particularly encouraging in terms of establishing growth momentum. Sales trends are improving, we have solid performance in our core operations and all of our important business fundamentals are headed in the right direction."
"I see similar positive signs for our retailers," Ling added. "While some are experiencing ups and others downs, a significant number invested in the future growth and success of their businesses in 2013 by remodeling stores and in some cases opening new locations. This is an indication of confidence regarding future business prospects for independent retail grocers."
An online version of Unified's Form 10-K, filed with the Securities and Exchange Commission, is available on Unified's website at www.unifiedgrocers.com and at www.sec.gov/edgar.shtml.