THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Wednesday, October 26, 1994 TAG: 9410260484
SECTION: BUSINESS PAGE: D3 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER
DATELINE: NORFOLK LENGTH: Short : 34 lines
Despite continuing losses due to its mounting debt payments, Farm Fresh Inc. posted a 14.6 percent boost in sales and an increase in cash flow for the third quarter.
Farm Fresh lost $4.3 million for the three months ending Sept. 10, compared to a $2.3 million loss in the same period a year ago. Earnings before interest, taxes, depreciation and amortization - a measure of cash flow - rose 3 percent to $10.1 million, up from $9.8 million.
Sales rose to $205.1 million in the quarter, up from $178.9 million in the year-earlier period. Same-store sales, considered a better barometer of a company's performance, jumped 6.4 percent.
``We are delighted with our sales trends companywide,'' Chief Executive Michael E. Julian said.
Farm Fresh mostly blamed its losses on heavy costs associated with its acquisition of 18 Safeway stores in the Richmond area last year. Advertising and low grand-opening prices played a role.
Interest expenses on $35 million in notes used to buy the stores have risen, as have rent expenses.
Since the purchase, the company's market share in Richmond has about doubled, Julian said. ``We expect it to continue to grow,'' he added.
Julian said the company plans to expand its existing stores and open a new store at Kiln Creek on the Peninsula next spring. by CNB