Roundy’s Supermarkets on Monday announced a public stock offering as a means to generate capital for the build-out of Dominick’s stores it acquired in Chicago.
In connection with the offering, the Milwaukee-based retailer announced preliminary financial results for fiscal 2013, showing comparable-store sales decreases of 2.4% in the fourth quarter and 2.7% in the fiscal year ended Dec. 28. The figures are unaudited and may be revised, Roundy’s noted.
Roundy’s said it expects sales for the year to total $3.95 billion, a 1.5% increase over fiscal 2012, reflecting the benefit of new stores offset by a 2.7% comparable-store decrease and three store closures. Net income is expected to be between $33 million and $34 million, Roundy’s said, compared to a $69.2 million loss in 2012. For the fourth quarter, Roundy’s expects comps to decrease by 2.4%.
Roundy’s said the offering consists of 2.9 million shares company stock and an additional 5.9 million shares of stock by certain shareholders. Roundy’s said it intends to use the net proceeds for general corporate purposes, which it expects to include funding working capital and operating expenses as well as capital expenditures to build out the Chicago stores acquired from Safeway.
In a separate announcement Monday, Moody’s Investors Service said it assigned a B1 rating to Roundy's proposed $460 million first lien term loan.
|Suggested Categories||More from Supermarketnews|