Supermarket operator Penn Traffic Co. notes improved fiscal-year results

SYRACUSE, N.Y. Supermarket operator The Penn Traffic Co. announced in a fourth-quarter and 12 months of fiscal 2009 earnings statement that it had “substantially” improved its balance sheet.

The company, which owns and operates the P&C, Quality and BiLo supermarket chains in the Northeast, said revenues from continuing operations were $872.3 million in fiscal 2009, compared with $896 million the year before, reflecting a reduction in the number of stores it owns. The company closed several stores and sold its wholesale business in December and January as part of a divestiture program. It said the lower revenues also reflected lower volume and traffic trends that have affected much of the grocery industry.

Losses from continuing operations in fiscal 2009 were $34.1 million, or $4.04 per share, compared with $29.2 million, or $3.45 per share, the year before. The company said that excluding higher tax expense for fiscal 2009, year-over-year loss from continuing operations was “essentially flat.”

Gross profit in was $267 million, or 30.6% of revenues, compared to $278.8 million, or 31.1% of revenues, the year before.

“We closed fiscal 2009 with a substantially improved balance sheet and a cost structure more closely aligned with what our business requires to deliver value to our customers,” president and CEO Gregory Young said. “At the same time, we continue to make targeted investments to enhance our top-line performance.”