5/16/07

Spartan Stores (SPTN)

Website: www.spartanstores.com

SPTN is the nation’s tenth largest grocery distributor.

Overview

Over the past several years, while the grocery industry was experiencing significant consolidation, Spartan Stores began to implement its strategy of owning and operating retail supermarkets. This plan should enable the company to compete more effectively in this rapidly changing and dynamic business. Spartan Stores owns and operates 68 supermarkets and 19 deep-discount food and drug stores in addition to distributing to more than 350 supermarkets. 

The Company expects to close on the acquisition of 20 retail stores from G&R Felpausch Company, in the first quarter of 2008. 

SPTN Investor Highlights

• Consolidated net sales for the 13-week fourth quarter increased 23.6 percent to $559.5 million from $452.8 million in last year's 12-week fourth quarter.
• Operating earnings improved for the fifth consecutive quarter, increasing 34.2 percent to $14.0 million from $10.4 million in the same period last year.
• Net sales have improved by at least 12 percent for the past four quarters and operating earnings have grown by double digits in nine of our last 11 quarters.
• Net earnings for the quarter increased 36.4 percent to $7.2 million, or $0.34 per diluted share, from $5.3 million, or $0.25 per diluted share, in the same period last year.
• Reduced outstanding borrowings by approximately $19.2 million during the fourth quarter. The reduction in outstanding borrowings was the result of improved cash flow from operations due to higher earnings and improved inventory turnover rates.
• Added to Standard & Poor's Small-Cap 600.
• Entered into a purchase agreement to acquire 20 retail grocery stores, two fuel centers and three convenience stores, from G&R Felpausch Company.

Profile

Spartan Stores (SPTN) is the nation's tenth largest grocery distributor with warehouse facilities in Grand Rapids and Plymouth, Michigan. 

The Company distributes more than 40,000 private-label and national brand products to over 350 independent grocery stores in Michigan, Indiana and Ohio. Spartan Stores also owns and operates 68 retail supermarkets and 19 deep-discount food and drug stores in Michigan and Ohio, including Family Fare Supermarkets, Glen's Markets, D&W Fresh Markets, and The Pharm.

Recent News and Press Releases

Spartan Stores Announces Proposed Offering of $75 Million Convertible Senior Notes

Spartan Stores Declares Dividend

Spartan Stores Continues Its Strong Financial Performance; Fiscal 2007 Fourth-Quarter Net Income Increases More Than 36 Percent

Spartan Stores Announces Significant Expansion of Existing Distribution Supply Relationship

AT&T Completes Successful Network Upgrade for Spartan Stores

Spartan Stores Making $38.5M Acquisition

Spartan Stores, Inc. Enters Into Purchase Agreement To Acquire 20 Supermarkets From G&R Felpausch Company

For the latest News and Quotes on SPTN Click Here.

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Contacts

Spartan Stores Inc.

850 76th Street SW
PO Box 8700
Grand Rapids, MI 49518
Phone: 616-878-2000
Fax: 616-878-8802

Outlook

Spartan Stores, Inc., a small-cap value company in the consumer services sector, is expected to outperform the market over the next six months with average risk. Source MSN

SEC Filings

SPTN filings with the SEC can be found here. All Fillings are current and the Company is fully reporting.

Disclaimer

SmallCapReview.com feature stock reports are intended to be stock ideas, NOT recommendations. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. For continuing coverage of SPTN, please sign up for our free newsletter. Information contained in this report was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable. For more information see our disclaimer section, a link of which can be found on our web site. This document contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from the Company's expectations and estimates. The information provided in this report is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country.

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