May 11. 2012 11:00AM - Last modified: May 11. 2012 11:41AM

Profits dip at Roundy’s Inc.

  
Milwaukee-based Roundy’s Inc. reported first quarter net income of $2.3 million, or 6 cents per share, down from $8.8 million, or 29 cents per share, in the same period a year ago.

Net sales for the first quarter of 2012 were $938.2 million, an increase of $22.2 million, or 2.4 percent, from $916.0 million for the first quarter of 2011.
Same store sales decreased 2.1 from the prior year due to continued weakness in the consumer environment and the effect of competitive store openings. As anticipated, results were also negatively affected by lower sales during the 2012 pro football postseason playoffs compared to 2011 when the Green Bay Packers appeared in the Super Bowl and the quarterly calendar shift of the New Year's holiday, when sales are typically slow, which fell in first quarter this year while last year it fell in the fourth quarter of 2010.
"Our first quarter results reflect the strength of our overall business strategy," said Robert Mariano, Roundy's chairman, president and chief executive officer. "Despite continued weakness in consumer discretionary spending, which negatively impacted our same store sales, we were pleased with our total sales growth and solid performance in the Chicago market. In addition, our focus on maintaining an efficient operating structure led to strong cost controls during the quarter. While the economic environment in many of our markets remains challenging, we believe our commitment to providing high quality products and a differentiated customer experience at a great value for our customers will continue to serve our business well."
On Feb. 13, 2012, Roundy's completed an initial public offering and raised approximately $111.9 million in net proceeds through the sale of 14.7 million shares of common stock. The Company used the proceeds from the offering, together with proceeds from a new senior credit facility to repay all of its outstanding borrowings and other amounts owing under its existing credit facilities. The new senior credit facility consists of a $675 million term loan and a $125 million revolving credit facility, which will expire in February 2019 and February 2017, respectively.

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