The decrease in capital expenditures is primarily due to $13.0 million related to the expansion of the Omaha distribution center and $7.9 million in store remodeling activity during the first half of fiscal 2004. The company expects capital expenditures to total approximately $35 million for the fiscal year.
During the second quarter of 2005, the Company sold three ShopKo stores in Colorado and closed two Pamida locations. The Company also announced the closing of one additional Pamida location to occur in the third quarter and expects to recognize a charge of $1.1 million upon the store closing.
First Half 2005 For the first half, consolidated sales were $1,440.2 million compared with $1,510.6 million last year, a decrease of 4.7 percent. Net income was $12.2 million compared with last year's net income of $5.9 million. Diluted earnings per share were $0.40 compared with diluted earnings per share of $0.20 last year.
Due to the pending merger agreement pursuant to which ShopKo Stores Inc will be acquired by a private investment group affiliated with and managed by Goldner Hawn Johnson & Morrison Incorporated, a Minneapolis, Minnesota-based private equity firm, the Company has determined not to hold a conference call to discuss second quarter results.
The proposed merger agreement will be voted on by the company's shareholders at a special meeting scheduled for September 14, 2005.
marketing@alchempro.com
