GREAT FALLS, Mont. -- Buttrey Food & Drug Stores here said net income increased 648% to $187,000 from $25,000 for the first quarter ended April 29.
During the quarter, the 40-store company recorded a net gain of $255,000 due to the sale of land and a distribution center in Payson, Utah, to Associated Food Stores, Salt Lake City. The chain also incurred an extraordinary charge of $85,000 from the early retirement of debt.
Sales for 13 weeks dropped 11.2% to $87.2 million. Comparable-store sales declined 0.5%. The company attributed the decline to the sale of six stores in Washington state last August.
Proceeds from the sale of land and the distribution facility were used to retire approximately $13.3 million worth of debt.
"In the first quarter, the average order size of our customer transactions increased by approximately 2% over 1994," said Joseph H. Fernandez, president and chief executive officer.