Great A & P results dip

http://finance.yahoo.com/news/The-Great-Atlantic-Pacific-bw-3828050982.html?x=0
The Great Atlantic & Pacific Tea Company, Inc. Announces Results for Its Fourth Quarter and Full Year Ended February 27, 2010
MONTVALE, N.J.--(BUSINESS WIRE)--The Great Atlantic & Pacific Tea Company, Inc. (A&P, NYSE Symbol: GAP) today announced fiscal 2009 fourth quarter and full year results for the 12 and 52 weeks ended February 27, 2010.
Sales for the 12-week fourth quarter were $2.0 billion versus $2.3 billion in last year’s 13-week fourth quarter. Comparable store sales decreased 4.8% during the comparable 12-week period. For the 12-week fourth quarter, excluding non-operating items, adjusted EBITDA was $41 million versus $86 million for last year’s 13-week fourth quarter. The estimated EBITDA benefit from the 13th week was approximately $6 million. Adjusted loss from operations was $13 million versus adjusted income from operations of $26 million last year. The non-operating items excluded from adjusted income from operations are listed on Schedule 3 of the press release and adjusted EBITDA is reconciled to net loss on Schedule 3 and to net cash from operating activities on Schedule 4. For the fourth quarter, reported loss from continuing operations was $158 million which includes charges of $65 million for goodwill, trademark and long-lived asset impairment and income of $16 million for mark to market adjustments related to financial liabilities. Loss from continuing operations in last year’s fourth quarter totaled $84 million, and included income of $3 million for mark to market adjustments related to financial liabilities.
Ron Marshall, President and Chief Executive Officer, The Great Atlantic & Pacific Tea Company, Inc., said, “The past year was certainly a challenge, as the economy continued its sluggish pace. The good news is that we have identified several critical issues within our organization that will lead us back to market prominence. We are committing our undivided attention to clarifying our brand identity in our principal banners, completing the integration of the Pathmark acquisition and maximizing supply chain cost improvement opportunities.”
Sales for the 52-week full year were $8.8 billion versus $9.5 billion for the 53 weeks in 2008. Comparable store sales decreased 4.3% during the comparable 52-week period. Excluding non-operating items, adjusted EBITDA was $224 million versus $333 million for the 53-week fiscal 2008. Adjusted loss from operations was $22 million versus adjusted income from operations of $72 million last year. The non-operating items excluded from adjusted income from operations are listed on Schedule 3 of the press release and adjusted EBITDA is reconciled to net loss on Schedule 3 and to net cash from operating activities on Schedule 4. Reported loss from continuing operations was $781 million which includes charges of $477 million for goodwill, trademark and long-lived asset impairment and expense of $9 million for mark to market adjustments related to financial liabilities. Loss from continuing operations in the prior year totaled $90 million, and included income of $117 million for mark to market adjustments related to financial liabilities.
Marshall continued, “The fixes in our Company are attainable and the initiatives are in place today to provide us the path forward. Concurrent to transforming the culture of our Company, we are gaining ground in better understanding our customer, developing the skills critical for our success, making prudent reinvestments in our business and reducing costs through a process of continuous improvement. Our sole mission is to make The Great Atlantic & Pacific Tea Company great, again.”
The Company also announced its planned filing of a shelf registration statement with the Securities and Exchange Commission following the filing of our Annual Report on Form 10-K. In connection with its convertible preferred stock offering in August 2009, the Company agreed to register all of the shares of common stock beneficially owned by Tengelmann and Yucaipa, including the shares issuable upon conversion of the convertible preferred stock. The Company also replenished its shelf capacity by registering up to $500.0 million of securities for primary sales. The Company has no current plans to sell securities under the shelf, and is not aware of any planned sales by the selling security holders.