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Kroger Annual Report (Amendment), Year Ended Feb 2, 2002

Filing Date
Filed August 14, 2002
Period End
February 2, 2002
Security
KR
In the record · 2016–202610-K1210-Q328-K137

KR filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 137 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Oct ’17Oct ’17
  2. Leadership change8-K · Dec ’19Dec ’19
  3. FY2022 annual report10-K · Mar ’22Mar ’22
  4. Impairment8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 10-K/A filed August 14, 2002. Cited figures are marked; the original filing is the authoritative source.

This Amendment No. 4 to the Form 10-K of The Kroger Co. (fiscal year ended February 2, 2002), filed August 14, 2002, is filed solely to correct inadvertent misclassifications of cash flows within the investing section of the Consolidated Statement of Cash Flows and between the financing and investing sections.

The filing states there is no change in the net change in cash and no effect on earnings, the balance sheet, the income statement, or shareowners' equity. The corrected report shows fiscal 2001 sales of $50.1 billiona, up 2.2% from the 53-week 2000 year, with identical food store sales up 0.9%. Gross profit rose to 27.35% of sales from 26.93%, and EBITDA increased 5.8% to $3.74 billion.

Net earnings were $1.04 billionb, or $1.26 diluted EPS, compared with $877 million and $1.04 in 2000. Cash from operations was $2.35 billion, and capital expenditures were $1.9 billion. Total debt rose $302 million to $8.8 billion, and the company repurchased $732 million of treasury stock during the year.

Management tied the 2001 results to the Strategic Growth Plan announced in December 2001, which targets more than $500 millionc in reduced merchandising and operating costs over two years, and to a restructuring charge of $37 million. The company also recorded an $81 million pre-tax charge on energy purchase contracts that no longer qualified for the normal purchases exception, and $91 million of asset impairment charges.

For investors, the filing's key points are steady sales and margin improvement offset by higher costs for health care, energy, and credit card fees, a heavy capital spending program, and rising leverage. Management projects fiscal 2002 EPS growth of 10%-12% before one-time items, and a 2002 free cash flow estimate of $550 million to $650 milliond.

02—Key points

Key Highlights

  1. Fiscal 2001 sales were $50.1 billion, up 2.2% from the 53-week 2000 year, with identical food store sales up 0.9%.
  2. Net earnings were $1.04 billion ($1.26 diluted EPS), compared with $877 million ($1.04 diluted EPS) in 2000.
  3. Gross profit improved to 27.35% of sales from 26.93%, while operating, general and administrative expenses rose to 18.93% of sales from 18.68%.
  4. EBITDA increased 5.8% to $3.74 billion, and cash from operations was $2.35 billion against $1.9 billion of capital expenditures.
  5. Total debt increased $302 million to $8.8 billion, and treasury stock purchases totaled $732 million.
  6. Strategic Growth Plan announced December 2001 aims to cut merchandising and operating costs by more than $500 million over two years, with a $37 million restructuring charge recorded.
  7. An $81 million pre-tax charge was recorded on energy purchase contracts, and asset impairment charges totaled $91 million; management projects fiscal 2002 EPS growth of 10%-12% before one-time items.

03—Questions

Frequently Asked Questions

  1. Why was this amended 10-K filed?

    The filing corrects inadvertent misclassifications of cash flows within the investing section and between the financing and investing sections of the Consolidated Statement of Cash Flows. The filing states there is no change in the net change in cash and no effect on earnings or the balance sheet.

  2. How did Kroger's profitability change in fiscal 2001?

    Net earnings rose to $1.04 billion from $877 million, and diluted EPS rose to $1.26 from $1.04. Gross profit increased to 27.35% of sales from 26.93%, and EBITDA grew 5.8% to $3.74 billion.

  3. What are the main cost pressures the company identified?

    Operating, general and administrative expenses rose to 18.93% of sales from 18.68%, due to higher health care and energy costs and increased credit card fees. The company also recorded an $81 million pre-tax charge on energy purchase contracts.

  4. What is management's outlook for fiscal 2002?

    Management expects annual EPS growth of 10%-12% before one-time items in fiscal 2002 and 2003, and estimates free cash flow of about $550-$650 million in fiscal 2002 with capital spending of $2.1 billion.

  5. How is the company's debt position changing?

    Total debt rose $302 million to $8.8 billion in 2001, and the company had $1.4 billion of borrowings at year-end under its credit lines. On March 26, 2002, it issued $500 million of 6.75% Senior Notes due 2012.

04—Continue

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