BEDFORD HEIGHTS, Ohio -- Riser Foods here said new remodeling and merchandising programs contributed to its improved sales and earnings results for the third quarter ended April 8.
Net income for the third quarter reached $2.9 million. Last year, Riser recorded a loss of $5.9 million because the company incurred a $12 million pretax restructuring charge. Income for the 40 weeks was $7.9 million, 43.6% above last year's earnings of $5.5 million.
Net sales rose 6.1% to $275.4 million from $259.5 million for the quarter. Sales increased 5.4% for the year-to-date to $904.2 million from $858.2 million last year.
Earnings per share were 35 cents for the quarter and 96 cents for nine months. This compares to a loss per share of 73 cents for last year's third quarter and earnings per share of 66 cents for three quarters.
Although the company is pleased with its quarterly results, "stagnant food prices and sharp competition from both traditional and nontraditional sources remain our major challenges," said Charles A. Rini Sr., president and chief executive officer, in a statement.
"During the last year we've had six stores that we've remodeled and increased the square footage on," Ronald Ocasek, Riser's chief financial officer, told SN. "We will have another four remodelings in the next 12 months."
All stores are replacements.
Riser operates 38 supermarkets in Ohio under the Rini-Rego Stop-N-Shop banner. The company's American Seaway Foods subsidiary distributes food and health and beauty care items. Another subsidiary, Eagle Ice Cream, manufactures private-label ice cream and distributes frozen novelties.