New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Business News and Headlines
SEC Filings, Earing Reports, Press Releases
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
The Kroger Co. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: September 16, 2011 01:30PM

The Kroger Co. (KR) filed Quarterly Report for the period ended 2011-08-13. Kroger Co. has a market cap of $13.68 billion; its shares were traded at around $22.61 with a P/E ratio of 12 and P/S ratio of 0.2. The dividend yield of Kroger Co. stocks is 1.9%. Kroger Co. had an annual average earning growth of 4% over the past 10 years. GuruFocus rated Kroger Co. the business predictability rank of 2-star.



Highlight of Business Operations:

For the second quarter of 2011, net earnings totaled $281 million, or $0.46 per diluted share, compared to $262 million, or $0.41 per diluted share for the same period of 2010. Our second quarter earnings per diluted share for 2011 increased, compared to the same period in 2010, primarily due to strong retail fuel operations, the repurchase of our stock over the past four quarters and the benefit from certain tax adjustments.

Net earnings of $0.46 per diluted share for the second quarter of 2011 represented an increase of 12.2% over net earnings of $0.41 per diluted share for the second quarter of 2010. Net earnings per diluted share increased in the second quarter of 2011, compared to the second quarter of 2010, due to increased net earnings and the repurchase of 48 million of our common shares over the past four quarters. Net earnings of $1.17 per diluted share for the first two quarters of 2011 represented an increase of 19.4% over net earnings of $0.98 per diluted share for the first two quarters of 2010. Net earnings per diluted share increased in the first two quarters of 2011, compared to the first two quarters of 2010, due to increased net earnings and the repurchase of 48 million of our common shares over the past four quarters.

We generated $2.2 billion of cash from operating activities during the first two quarters of 2011, compared to $2.3 billion in the first two quarters of 2010. The cash provided by operating activities came from net earnings including noncontrolling interests, adjusted for non-cash expenses, and changes in working capital. Changes in working capital provided cash from operating activities of $488 million in the first two quarters of 2011 and $820 million in the first two quarters of 2010. This decrease in the change in working capital was primarily due to an increase in prepaid expenses in the first two quarters of 2011, compared to a decrease in the first two quarters of 2010. This increase in prepaid expenses was primarily due to a decision not to pre-fund our voluntary employee benefit account at the end of fiscal year 2010 compared to a $300 million pre-funding at the end of fiscal year 2009.

Total debt, including both the current and long-term portions of capital leases and lease-financing obligations, decreased $470 million to $7.3 billion as of the end of the second quarter of 2011, from $7.8 billion as of the end of the second quarter of 2010. Total debt decreased $544 million as of the end of the second quarter of 2011, from $7.9 billion as of year-end 2010. The decrease as of the end of the second quarter of 2011, compared to the end of the second quarter of 2010 and year-end 2010, resulted primarily from the payment at maturity in the first quarter of 2011 of $478 million of senior notes bearing an interest rate of 6.80%. As of August 13, 2011, our cash and temporary cash investments were $643 million compared to $825 million as of January 29, 2011. This decrease was primarily due to the payment at maturity of the senior notes described above and the increased share repurchase activity noted below.

During the second quarter of 2011, we invested $259 million to repurchase 10.6 million Kroger common shares at an average price of $24.30 per share. For the first two quarters of 2011, we invested $803 million to repurchase 33.8 million Kroger common shares at an average price of $23.79 per share. These shares were reacquired under three separate stock repurchase programs. The first was a $500 million repurchase program that was authorized by Kroger’s Board of Directors on June 24, 2010. The second is a $1 billion repurchase program that was authorized by Kroger’s Board of Directors on March 3, 2011. The third is a program that uses the cash proceeds from the exercises of stock options by participants in Kroger’s stock option and long-term incentive plans as well as the associated tax benefits.

Capital expenditures, excluding acquisitions and the purchase of leased facilities, totaled $429 million for the second quarter of 2011 compared to $403 million for the second quarter of 2010. Year-to-date, capital expenditures, excluding acquisitions and the purchase of leased facilities, totaled $1.0 billion in 2011 and $935 million in 2010. During the second quarter of 2011, capital expenditures for the purchase of leased facilities totaled $13 million compared to $7 million for the second quarter of 2010. During the first two quarters of 2011, capital expenditures for purchases of leased facilities totaled $19 million compared to $17 million for the first two quarters of 2010. During the second quarter of 2011, we opened, acquired, expanded or relocated seven food stores and also completed 32 within-the-wall remodels. During the first two quarters of 2011, we opened, acquired, expanded or relocated 17 food stores and also completed 70 within-the-wall remodels. Total food store square footage decreased 0.2% from the second quarter of 2010. Excluding acquisitions and operational closings, total food store square footage increased 1.2% over the second quarter of 2010.

Read the The complete Report



Stocks Discussed: KR,
Rate this post:




Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't




Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial