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The Great Atlantic & Pacific Tea Company (GAP) filed Quarterly Report for the period ended 2011-09-10.
The Great Atlantic & Pacific Tea Company has a market cap of $657.11 million; its shares were traded at around $0 .
This is the annual revenues and earnings per share of GAP over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of GAP.
Highlight of Business Operations:
Net cash used in financing activities decreased $19.3 million during the 28 weeks ended September 10, 2011 as compared to 28 weeks ended September 11, 2010. The decrease in cash used in financing activities is due to the decreased overdraft of $14.9 million and decrease in principal payments on capital lease obligations and real estate liabilities of $0.7 million, partially offset by the payment of financing fees for our debtor-in-possession financing of $1.6 million. Not included during the 28 weeks ended September 10, 2011 were payments under our revolving lines of credit of $200.7 million and dividends on preferred stock of $7.0 million, proceeds under our revolving lines of credit of $201.6 million and issuance of long-term debt of $0.8 million which were paid and received during the 28 weeks ended September 11, 2010.After our Company s Bankruptcy Filing on December 12, 2010, we repaid our $655.0 million Credit Agreement with a balance of $140.5 million with the proceeds from the $350.0 million term loan under the DIP Credit Agreement. At January 10, 2011, we received court approval to draw down on the $450.0 million revolver which provided, after adjusting for letters of credit and borrowing base collateral requirements, an additional $156.8 million of availability as of September 10, 2011. As of September 10, 2011, we held excess cash not utilized in our store operations of $211.2 million. The $156.8 million of availability is further subject to a current minimum availability covenant of $100.0 million. Based on the $350.0 million term loan under the DIP Credit Agreement becoming due on June 14, 2012 and the ongoing status of negotiations with union locals to obtain consensual modifications to collective bargaining agreements necessary for our successful reorganization, there is substantial doubt about our Company s ability to meet our obligations for the next twelve months.
Segment loss increased $14.6 million from a loss of $14.9 million for the 12 weeks ended September 11, 2010 to a loss of $29.5 million for the 12 weeks ended September 10, 2011. Our Fresh and Pathmark segments experienced segment income declines of $9.8 million and $4.6 million, respectively. Segment income attributable to ongoing open stores decreased $17.8 million and $16.1 million, respectively, primarily attributable to declines in sales and lower gross margins, partially offset by improvements in supply and logistics along with reduced occupancy expenses due to store closures. Segment income from our Gourmet business declined by $1.0 million. Although Gourmet saw improvements in sales and declining supply and logistics expenses, these improvements were more than offset by lower gross margins and increased labor and occupancy expenses. Segment income for our Other segment, representing Discount and Wine, Beer and Spirits, increased by $0.8 million despite decreases to sales and gross margin which were more than offset by improvements in supply and logistics along with reduced labor and occupancy expenses due to store closures. Refer to Note 21 – Reportable Segments for further discussion of our reportable operating segments.
SG&A expenses for the 28 weeks ended September 10, 2011 included (i) net real estate related costs of $90.3 million, or 233 basis points, of which $63.3 million and $26.2 million were attributed to occupancy reserve adjustments related to April store closings and Southern store closings, respectively (ii) pension withdrawal costs of $13.9 million, or 36 basis points recorded in connection with the partial withdrawal from the multi-employer union pension plan (iii) net restructuring and other costs of $2.8 million, or 7 basis points (iv) net stock-based compensation related expense of $1.5 million, or 4 basis points (v) losses related to Hurricane Irene of $1.0 million, or 3 basis points and (vi) self-insurance reserve adjustments of $0.1 million, or 0.5 basis points. These costs were partially offset by (vii) net real estate gains of $40.9 million, or 105 basis points, of which $29.1 million related to gain from the sale of Southern stores.
During the 12 and 28 weeks ended September 10, 2011, we recorded deferred financing fees amortization of $0.4 million and $0.9 million, respectively, and embedded beneficial conversion features accretion of $1.1 million and $2.6 million, respectively, within “Additional paid-in capital”. During the 12 and 28 weeks ended September 11, 2010, we recorded deferred financing fees amortization of $0.4 million and $0.9 million, respectively, and embedded beneficial conversion features accretion of $1.1 million and $2.6 million, respectively, within “Additional paid-in capital”. During the 12 and 28 weeks ended September 11, 2010, we accrued Preferred Stock dividends of $3.1 million and $7.4 million, respectively, within “Additional paid-in capital” and paid Preferred Stock cash dividends of nil and $7.0 million, respectively.
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