SYRACUSE, N.Y. -- Penn Traffic Co. here said sales rose to record levels for the year and fourth quarter ended Jan. 29, due in part to last year's acquisition of Insalaco Markets, Pittston, Pa.
items resulted in a $17.8 million loss for the year. Net income rose 19.3% to $4.95 million in the quarter.
Operating net rose 11% for the year to $140.6 million and 22.9% for the quarter to $45.8 million. Cash flow -- or earnings before interest, taxes, depreciation and amortization -- rose 15% for the year to $229.9 million and 19.2% for the quarter to $66.6 million.
Results include a $25.8 million, or $2.45 per share, extraordinary charge related to the early retirement of debt.
Gary D. Hirsch, chairman, said Penn Traffic "dramatically strengthened" its long-term position in 1993. It increased total square footage by 11.9%, with 40 stores added or expanded.
Claude J. Incaudo, president and chief executive officer, said Penn Traffic's supermarket business units all showed improved same-store sales in the fourth quarter and there has been a continual improvement in the performance of the former Peter J. Schmitt stores in Buffalo, N.Y., and Erie, Pa.
Debra Levin, a securities analyst at Morgan Stanley, New York, said the surge in Penn Traffic's cash flow resulted from the Insalaco acquisition, the maturing of the former Schmitt stores bought in January '93, the consolidation of the company's nonfood warehousing programs and its remodeling and expansion.
"The company said the contribution of the Isalaco stores to net income was consistent with expectations," Levin said. "There appear to be more opportunities for growth in this division than had previously been anticipated."