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Pathmark third-quarter results show net loss improvement to $5.8 million from $18.3 million
By Lisa Kerner
Charlotte, N.C., Dec. 7 - Pathmark Stores, Inc. reported unaudited results for its third quarter ended Oct. 28, including an improved net loss of $5.8 million, or $0.11 per diluted share, compared with a net loss of $18.3 million, or $0.36 per diluted share, in the prior year's third quarter.
The reduction in the net loss was primarily due to an increase in adjusted EBITDA to $30.3 million in the third quarter of 2006 compared with $19.0 million in the third quarter of 2005, according to a company news release.
The company said higher gross profit of $14.1 million and improvement in almost all departments led to the increase in adjusted EBITDA.
Third-quarter sales fell 0.3% to $978.1 million from $980.5 million in the prior year's third quarter, with same-store sales remaining flat.
Chief executive officer John Standley attributed the flat sales in part to a poor Labor Day weekend during the company's earnings call on Thursday. On a positive note, Standley said the Thanksgiving holiday was strong and the company is moving ahead with plans for a prototype store, store renovations and several merchandising initiatives.
Pathmark has debt of $618.6 million, with $20 million in borrowings, according to chief financial officer Frank Vitrano's comments on the call.
Vitrano noted that the company, in compliance with all covenants, has good liquidity and letters of credit totaling $84.5 million.
The Carteret, N.J.-based regional chain of 141 supermarkets completed 13 store renovations since January. Capital expenditures for fiscal 2006 are expected to be approximately $70 million.
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