POMPANO BEACH, Fla. -- Pueblo Xtra International here said last week it is still wading through the financial aftermath of Hurricane Georges, as the company's net sales, net income, cash flow and same-store sales all declined during the 12-week third quarter concluded Nov. 6.
irgin Islands, where Pueblo operates 50 supermarkets and 43 video stores.
In third quarter 1999, the company experienced a net loss of $3.6 million. Net sales for the quarter fell 11.8% to $149.1 million, cash flow declined 56% to $8.4 million, and same-store sales shrank 11.7%.
For the first three quarters, sales declined 13.2% to $519.1 million, same-sales decreased 16%, cash flow fell 34.2% to $39.4 million, and net income decreased 5.6% to $3.4 million.
A factor limiting the year-to-date net income decline was the settlement in the second quarter of a $8.4 million property damage and extra expense insurance claim resulting from Hurricane Georges, partially offset by a $1.2 million loss on a sale/leaseback transaction.
In Pueblo's retail and food division, same store sales declined 10.9% for the quarter and 13.7% year-to-date. The company attributed the decrease in part to the aftermath of Hurricane Georges and the related ongoing disruption associated with repairing storm damaged stores and equipment.
Other factors cited by the company were the remodeling of four supermarkets, increased competition and the effects of repositioning Pueblo's supermarkets to offer a broader product mix while eliminating marginally profitable product lines.
William T. Keon III, president and chief executive officer of Pueblo, said, "We are near completion of the reconstruction effort resulting from the storm, but the impact on business could persist for the next 18 to 24 months."