Harris Teeter 1997 Annual Report Download

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even better
Always striving to be even better for its
customers, American & Efird has improved
its inventory management by incorpor-
ating statistical techniques in its
planning and scheduling systems.
“One of the keys to service excellence
is having the right goods at the right
distribution center at the right time,”
explains American & Efird customer
service representative Dana Hill.
“Our efficient planning and schedul-
ing systems help us do just that.”
Fully implemented in each of Harris
Teeter’s 138 stores in 1997, the
VIC (Very Important Customer) Card
program is helping Harris Teeter
continue to build a loyal customer
base throughout its five-state
region. “The VIC Card rewards cus-
tomers for shopping at Harris
Teeter. They can get automatic dis-
counts and participate in our special
promotions,” comments cashier
Kischa Gallimore. “The VIC Card tells
us about what people are buying so
we can serve them better.”
Ruddick Corporation
1997 ANNUAL REPORT
American & Efird |Harris Teeter

Table of contents

  • Page 1
    ... Corporation 1997 program is helping Harris Teeter continue to build a loyal customer base throughout its five-state ANNUAL REPORT region. "The VIC Card rewards customers for shopping at Harris Teeter. They can get automatic discounts and participate in our special promotions," comments cashier...

  • Page 2
    ...Virginia Distribution centers Hunter Farms dairy Indian Trail, NC Greensboro, NC Charlotte, NC High Point, NC Mission Ruddick Corporation's goal is to provide long-term financial value to its shareholders. To achieve this goal, the Company focuses on its customers, associates and the communities...

  • Page 3
    ... 60,396 97,490 33,873 .71 .21 580,807 274,740 5.87 Net Sales In Billions of Dollars Total Operating Profit In Millions of Dollars Net Income In Millions of Dollars Shareholders' Equity In Millions of Dollars Book Value Dollars Per Share 1.86 1.68 2.01 2.14 2.30 76.7 60.4 63.9 83.1 94.8 39...

  • Page 4
    ... the greatest value to its most important constituents: its shareholders, customers and associates. Focusing on Enhancing Execution at Harris Teeter In last year's annual report, we emphasized the fact that both our companies provide products that are essential to "everyday" life: high performance...

  • Page 5
    ... Dickson Chairman of the Executive Committee Thomas W. Dickson President Ruddick Corporation encompasses two well-managed Richard N. Brigden operating subsidiaries with leading positions in their chosen markets. Vice President - Finance Harris Teeter is a nationally-recognized, full-service...

  • Page 6
    ... stores in order to simply build market share. We carefully study a wide range of unique demographics and density data aimed at identifying selected locations that fit our customer profile and meet our financial objectives. Ruddick Investment works hand in hand with the real estate team at Harris...

  • Page 7
    .... Focus groups, customer panels and consumer research help store managers like Britt Moose improve their ability to meet the unique needs of their stores' shoppers. "Harris Teeter's innovative services, such as providing a wider variety of prepared foods and installing the highly popular sushi bars...

  • Page 8
    ... to report that, given the low rate of food inï¬,ation and the tough competitive challenges we faced, we were able to maintain our same store sales, open some of our most promising new Harris Teeter locations (for example, in key cities such as Atlanta and Nashville) and implement key programs to...

  • Page 9
    ...Tracking System - is made available to A&E customers. ANETRAK SM helps customers compare the performance of A&E products to competitors' products. With this feedback, they can optimize their sewing operations and clearly understand how product quality enhances the value A&E provides. 7 Even Better...

  • Page 10
    ...'s VIC Card program boosts customer loyalty by offering special everyday discounts, targeted coupon mailings and other promo- Information systems continue to be a focus at Harris Teeter. Through enhanced information systems, category management has yielded improved sales and margins in a number of...

  • Page 11
    ... sales per store. Since 1993, Harris Teeter's store space has increased more than 24% due to an increase in store openings and in average store square footage. Harris Teeter's EBITDA has grown in each of the past five years. Fred J. Morganthall, II "Harris Teeter stands out in the competitive...

  • Page 12
    ...or next day service to major sewing centers worldwide from our strategically located sales and distribution A N D American & Efird Dyeing and Finishing Plant Mt. Holly NC Associates Mary Jane Kendrick (foreground) and Pamela L. Price take pride in monitoring product quality and production order...

  • Page 13
    ... 94 95 96 97 Revenues skyrocketed 19% in 1997, due primarily to the acquisition of Threads USA and international sales growth. Operating profit was positively impacted by the successful integration of the Threads USA business into existing facilities. EBITDA was also enhanced by A&E's strong...

  • Page 14
    ... of Financial Condition and Results of Operations 17 Consolidated Balance Sheets 18 Statements of Consolidated Income and Retained Earnings 19 Statements of Consolidated Cash Flows...20 Notes to Consolidated Financial Statements... 29 Report of Independent Public Accountants.. 30 Eleven-Year...

  • Page 15
    ... 8% expansion in store square footage over the course of the year, increased advertising and promotion and the successful system-wide rollout of the new customer loyalty card (the VIC Card) introduced in 1996. Grocery sales grew by 4% and accounted for 36% of the sales increase. Dairy, meat, produce...

  • Page 16
    ...customer acceptance of larger, new-format stores, strong feature plans, merchandising and advertising, strong holiday sales and a 4% increase in store square footage during fiscal 1996. Grocery sales were up 6%, which accounted for 43% of the sales increase. Dairy, meat, produce and frozen products...

  • Page 17
    ...be managed but future equity investment will be limited. Due to continued growth of the American & Efird and Harris Teeter businesses, Ruddick Investment's relative size to the consolidated Company had declined. As a result, Ruddick Investment is no longer considered an operating company. Effective...

  • Page 18
    ... be closed. New store locations include three in Virginia, two in Atlanta, Georgia, one in Nashville, Tennessee, five in North Carolina and one in Jacksonville, Florida, a new market for Harris Teeter and its sixth state. The expansion that began in 1997 of Harris Teeter's two distribution centers...

  • Page 19
    ... Amortization Property, Net Investments and Other Assets Investments Other Assets Total Assets Liabilities and Shareholders' Equity Current Liabilities $ 801,702 Notes Payable Current Portion of Long-term Debt Dividends Payable Accounts Payable Federal and State Income Taxes Accrued Compensation...

  • Page 20
    ...(Dollars in thousands, except per share data) 1997 Net Sales Cost of Sales Selling, General and Administrative Expenses Operating Profit Net Interest Expense Other Administrative Expense, Net Income Before Taxes Taxes Net Income Retained Earnings at Beginning of Fiscal Year Common Dividend: 1997...

  • Page 21
    ...Amortization Deferred Taxes Restructuring Charge Other, Net Decrease (Increase) in Accounts Receivable Decrease (Increase) in Inventories Decrease (Increase) in Other Current Assets Increase (Decrease) in Current Liabilities Net Cash Provided by Operating Activities Net Cash Provided by Discontinued...

  • Page 22
    ... undepreciated construction in progress at September 28, 1997 and September 29, 1996, respectively. Investments The Company holds a financial position in certain shopping centers in which Harris Teeter, Inc., is an anchor tenant. Additionally it makes loans to and equity investments in a number of...

  • Page 23
    ... in the period in which the related expense is incurred. Net advertising expenses of $15,555,000, $12,839,000, and $13,224,000 were included in the Company's results of operations for fiscal 1997, 1996 and 1995, respectively. Income Taxes Ruddick and its subsidiaries file a consolidated federal...

  • Page 24
    ... the market price of the Company's stock at the date of the grant over the option exercise price and is charged to operations over the vesting period. Income tax benefits attributable to stock options exercised are credited to capital stock. U D D I C K C O R P O R A T I O N Earnings Per Share...

  • Page 25
    ... these merchants. In addition, Harris Teeter leases certain store locations which are not currently in use but are expected to be assigned to other merchants. These leases expire over the next 20 years and the future minimum lease payments related to these locations total $35,665,000 (approximating...

  • Page 26
    ... of the rights. Stock Options At September 28, 1997, the Company has 1982, 1988, 1993 and 1995 incentive stock option plans which authorized options for 4,000,000 shares of common stock. Under the plans, the Company has granted to officers and management personnel stock options which become...

  • Page 27
    ... the Company's stock option plans as of September 28, 1997, September 29, 1996 and October 1, 1995, changes during the years ending on those dates and related weighted average exercise price is presented below: (Shares in thousands) 1997 1996 1995 Even Better R E P O R T 25 11 Shares Price $ 10...

  • Page 28
    ... The tax effects of temporary differences giving rise to the Company's consolidated deferred tax liability at September 28, 1997 and September 29, 1996 are as follows: (In thousands) Deferred Tax Assets 1997 1996 Employee benefits Reserves not currently deductible Other Total deferred tax assets...

  • Page 29
    ... $19,080,000 in 1997, 1996 and 1995, respectively, related to store investment activities of the Company for the development of retail sites. (2) Corporate Assets Employed include the net cash surrender value of Company owned life insurance and the net assets of discontinued operations. (3) Includes...

  • Page 30
    .... The contribution payable at September 28, 1997 and September 29, 1996, required to be paid by due date of the federal income tax return, was $1,462,000 and $6,986,000, respectively. In 1997 (1996), a 7.5% (8%) weighted average discount rate and 5% (5%) rate of increase in future payroll costs were...

  • Page 31
    ...16 3⁄4 14 3⁄4 Fourth Quarter $ 582.3 11.9 .25 .08 16 5⁄8 14 3⁄4 Net Sales Net Income Net Income Per Share Dividend Per Share Market Price Per Share High Low 1996 Operating Results Net Sales Net Income Net Income Per Share Dividend Per Share Market Price Per Share High Low $ 529.7 8.1 .17...

  • Page 32
    ... Equity Book Value Per Share Capital Expenditures American & Efird Harris Teeter Corporate Total Capital Expenditures Working Capital Total Assets Long-Term Debt - Including Current Portion Long-Term Debt as a Percent of Capital Employed Number of Employees Number of Beneficial Shareholders...

  • Page 33
    1 9 9 7 A N N U A L E P O R T Even Better R 1993 (1) 1992 1991 1990 1989 1988 (1) 1987 31 11 $ 264,814 1,412,315 $ 1,677,129 $ $ $ 30,551 29,845 60,396 33,873 .71 .21 $ 97,490 13.3% 5.87 19,433 33,683 27 $ 53,143 $ 243,324 1,270,430 $ 1,513,754 $ $ $ 28,510 31,067 59,577 30,789 .65 ....

  • Page 34
    ... Merchandising & Manufacturing C. Douglas Rhodes Senior Vice President Manufacturing - Worldwide John L. Miller Vice President Technical Service Bernard Mandel Ruddick Corporation Thomas W. Dickson Senior Vice President Human Resources Karen L. Stout Senior Vice President Sales - North America...

  • Page 35
    ...1994 and 1993 prices are adjusted for a 100% stock dividend distributed in October 1995. Wachovia Bank of North Carolina, N.A. Winston-Salem, NC Shareholders/Shares Outstanding Corporate Address 2000 Two First Union Center Charlotte, NC 28282 704 | 372-5404 As of September 28, 1997, Ruddick had...

  • Page 36
    Ruddick Corporation 2000 Two First Union Center Charlotte, NC 28282 704 | 372-5404 RDK-AR-97