Winn-Dixie Reports Third Quarter Results

Apr 25, 2001, 01:00 ET from Winn-Dixie Stores, Inc.

    JACKSONVILLE, Fla., April 25 /PRNewswire Interactive News Release/ --
 Winn-Dixie Stores, Inc. (NYSE:   WIN) announced sales and results of operations
 for its third quarter of fiscal 2001.
     Excluding restructuring and interest on COLI, net earnings for the quarter
 were $39.0 million, or $0.28 per diluted share, compared to $10.3 million, or
 $0.07 per diluted share, for the same quarter last year.  Year-to-date, net
 earnings were $91.0 million, or $0.65 per diluted share, compared to
 $54.7 million, or $0.37 per diluted share.  Including the restructuring and
 interest on COLI, net earnings for the quarter were $10.7 million, or $0.08
 per diluted share, compared to $10.3 million, or $0.07 per diluted share, for
 the same quarter last year.  Year-to-date, net earnings were  $32.3 million,
 or $0.23 per diluted share, compared to $13.5 million, or $0.09 per diluted
 share, for the prior year.
     Sales for the 12 weeks ended April 4, 2001, were $3.0 billion, a decrease
 of $183.0 million, or 5.7% compared with the same quarter last year.  For the
 40 weeks ended April 4, 2001, sales were $9.9 billion, a $724.0 million
 decrease, or 6.8% under the prior year.  Identical store sales decreased 5.3%
 for the quarter and 4.2% for the year.  Comparable store sales, which include
 replacement stores, decreased 5.3% for the quarter and 4.0% for the year.
 Identical and comparable sales decreased largely because of the elimination of
 unprofitable sales departments (deli/cafes, melon bars, salad bars, dry
 cleaners, etc.), the elimination of unprofitable sales items in remaining
 departments, a reduction in the number of 24-hour stores and construction
 disruptions from numerous store modifications (retrofits).  During the third
 quarter, 384 locations had construction in progress due to the retrofit
 activity.
     In April 2000, the Board of Directors adopted management's "Plan of
 Restructuring."  The Plan includes retrofits to approximately 690 stores
 during fiscal 2001 at an estimated expense of $144 million ($88.6 million
 after tax or $0.63 per diluted share).  The current quarter includes
 restructuring charges totaling $44.5 million ($27.4 million after tax or $0.19
 per diluted share).  Year-to-date, restructuring charges totaled $90.7 million
 ($55.8 million after tax or $0.40 per diluted share).
     Al Rowland, Winn-Dixie's President and Chief Executive Officer, stated:
 "We are pleased with the progress of our restructuring program.  We have
 completed 426 store retrofits with an approximate return on capital of 50%.
 This is in line with our expectations and our projected results.  Our results
 show the impact our restructuring program is having on expense reductions.
 Centralized procurement is starting to improve our gross profits.  Our focus
 now is on improving store operations and customer count, which will improve
 sales."
     For the 40 weeks ended April 4, 2001, Winn-Dixie opened 12 new stores and
 acquired 77 stores, averaging 37,900 square feet, closed 13 stores, averaging
 34,500 square feet, enlarged 6 stores and remodeled 4 store locations.  As of
 April 4, 2001, there were 1,155 stores in operation, compared to 1,189 last
 year.  Of the 1,155 stores, 972 are larger than 35,000 square feet, with 794
 being Marketplace stores.  There are 7 new stores presently under
 construction.  By the end of this fiscal year, the Company plans to have
 opened 19 new stores, acquired 77 stores, and enlarged or remodeled 12
 existing stores.
     According to published reports, Winn-Dixie is one of the nation's largest
 retail food chains.
 
     Winn-Dixie Stores, Inc.
     Third Quarter
     Dollars in thousands except per share data
 
                                  12 Weeks Ended              12 Weeks Ended
                                   April 4, 2001               April 5, 2000
 
                             Amount             %       Amount             %
 
     Sales               $3,016,312         100.0    3,199,356         100.0
     Cost of sales        2,202,483          73.0    2,333,937          73.0
     Gross profit           813,829          27.0      865,419          27.0
     Operating &
      administrative
      expenses              737,392          24.4      841,809          26.3
     Restructuring and
      other non-recurring
      charges                44,542           1.5          ---           ---
     Operating income        31,895           1.1       23,610           0.7
     Interest expense *      14,457           0.5        6,907           0.2
     Earnings before
      income taxes           17,438           0.6       16,703           0.5
     Income taxes *           6,714           0.2        6,430           0.2
     Net earnings           $10,724           0.4       10,273           0.3
     Basic earnings
      per share               $0.08                       0.07
     Diluted earnings
      per share               $0.08                       0.07
     Dividends per share     $0.255                      0.255
     Number of stores         1,155                      1,189
 
 
     Fiscal Year-to-Date
     Dollars in thousands except per share data
 
                                  40 Weeks Ended            40 Weeks Ended
                                  April 4, 2001              April 5, 2000
 
                             Amount             %       Amount             %
 
     Sales               $9,913,512         100.0   10,637,551         100.0
     Cost of sales        7,291,670          73.6    7,732,859          72.7
     Gross profit         2,621,842          26.4    2,904,692          27.3
     Operating
      & administrative
      expenses            2,440,521          24.6    2,792,934          26.2
     Restructuring and
      other non-recurring
      charges                90,748           0.9          ---           ---
     Operating income        90,573           0.9      111,758           1.1
     Interest expense *      38,043           0.4       40,297           0.4
     Earnings before
      income taxes           52,530           0.5       71,461           0.7
     Income taxes *          20,224           0.2       57,912           0.6
     Net earnings           $32,306           0.3       13,549           0.1
     Basic earnings
      per share               $0.23                       0.09
     Diluted earnings
      per share               $0.23                       0.09
     Dividends per share     $0.765                      0.765
 
     * See note (3) Income Taxes
 
 
     Consolidated Balance Sheets
     Dollar amounts in thousands
 
     Assets                                     April 4, 2001  June 28, 2000
 
     Current assets                                $1,545,051      1,471,922
     Property, plant and equipment, net             1,170,916      1,034,493
     Other assets                                     322,917        240,678
                                                   $3,038,884      2,747,093
 
     Liabilities and Shareholders' Equity
 
     Short-term borrowings                               $---        235,000
     Other current liabilities                      1,109,129      1,186,553
       Current liabilities                          1,109,129      1,421,553
     Long-term debt                                   697,435            ---
     Other liabilities                                439,178        457,705
     Shareholders' equity                             793,142        867,835
                                                   $3,038,884      2,747,093
 
 
     Cash Flow Information
     Dollar amounts in thousands
 
                                                    40 Weeks       40 Weeks
                                                     Ended           Ended
                                                 April 4, 2001   April 5, 2000
 
     Net cash provided by operating activities        $55,238        502,930
     Net cash used in investing activities          (394,266)      (162,265)
     Net cash provided by (used in)
      financing activities                            327,406      (342,922)
     Decrease in cash and cash equivalents           (11,622)        (2,257)
     Cash and cash equivalents at beginning of year    29,576         24,746
     Cash and cash equivalents at end of period       $17,954         22,489
 
     Capital expenditures, net                       $269,917        177,999
     Depreciation and amortization                    144,904        200,679
     Dividends paid                                   107,032        112,338
 
 
     Supplemental and Explanatory Information
 
     (1)  Basis of Consolidation: The consolidated financial statements
          include the accounts of Winn-Dixie Stores, Inc. and its subsidiaries
          which operate as a major food retailer in fourteen states and the
          Bahama Islands.
 
     (2)  Interest Expense: During the third quarter of fiscal 2001, the
          Company capitalized interest totaling $0.3 million, and $5.2 million
          for the year, related to construction of new stores and a warehouse
          facility in Jacksonville, Florida.
 
     (3)  Income Taxes:  During fiscal 2000, the Company reserved $30.4 million
          for taxes and $19.7 million for interest ($42.5 million after tax, or
          $0.29 per diluted share) after receiving an unfavorable opinion in
          October 1999 and a computational decision on January 11, 2000, from
          the U.S. Tax Court.  Additional interest totaling $4.6 million
          ($2.8 million after tax) was recorded in the current year.  The Tax
          Court upheld the Internal Revenue Service's position that interest
          related to loans on broad-based, company owned life insurance
          policies in 1993 was not deductible for income tax purposes. Congress
          passed legislation phasing out such deductions over a three-year
          period in the fall of 1996.  The Company held such policies and
          deducted interest on outstanding loans from March 1993 through
          December 1997.  Management disagrees with the Tax Court's decision
          and has appealed.  While the ultimate outcome of this litigation
          cannot be predicted with certainty, in the opinion of management, the
          ultimate resolution of this matter will not have any additional
          material adverse impact on the Company's financial condition or
          results of operations.
 
     (4)  Inventory:  The following supplemental information is provided to
          facilitate comparisons with companies using the FIFO method.
 
                                  Third Quarter             Year-to-Date
                              (Dollars in thousands except per share data)
 
                           12 Weeks      12 Weeks     40 Weeks      40 Weeks
                               2001          2000         2001          2000
          FIFO Basis
 
     Inventories         $1,473,588     1,562,261    1,473,588     1,562,261
     Net earnings
      from operations        12,557        12,106       38,416        19,659
     Diluted earnings
      per share                0.09          0.08         0.27          0.13
 
     (5)  Earnings Per Share: The following weighted average number of shares
          of common stock were used in the calculations for earnings per share:
 
 
                                         Basic       Diluted
                                            (in thousands)
              2001
              Quarter                  140,233        140,964
              Year-to-Date             139,697        140,167
 
              2000
              Quarter                  144,376        144,621
              Year-to-Date             146,397        146,570
 
     (6)  Restructuring: On April 19, 2000, the Board of Directors adopted
          management's "Plan of Restructuring".  As a result of the
          restructuring, the Company recorded expenses of approximately
          $396 million ($256 million after tax or $1.76 per diluted share) in
          the fourth quarter of fiscal 2000.  An additional $144 million
          ($88.6 million after tax or $0.63 per diluted share) is expected to
          be incurred during fiscal 2001 for the store retrofits.  Charges
          totaling $44.5 million ($27.4 million after tax or $0.19 per diluted
          share) were recorded in the current quarter and $90.7 million
          ($55.8 million after tax or $0.40 per diluted share) for the year.
          The Company expects a reduction in expenses of approximately
          $400 million per year ($246 million after tax or $1.76 per diluted
          share) approximately one year following completion of the
          restructuring.
 
     (7)  Results of operations: The following table shows the effect of the
          restructuring charges and interest on company owned life insurance
          for the current year.
 
 
         12 weeks ended           As Reported    Non-recurring   Excluding
         April 4, 2001                              Charges    Non-recurring
 
     Net sales                    $3,016,312             ---     3,016,312
     Cost of sales                 2,202,483             ---     2,202,483
     Gross profit on sales           813,829             ---       813,829
     Operating and
      administrative expenses        737,392             ---       737,392
     Restructuring and
      other non-recurring charges     44,542          44,542           ---
     Operating income                 31,895        (44,542)        76,437
     Interest expense                 14,457           1,387        13,070
     Earnings before income taxes     17,438        (45,929)        63,367
     Income taxes                      6,714        (17,683)        24,397
     Net earnings                    $10,724        (28,246)        38,970
     Basic earnings per share          $0.08          (0.20)          0.28
     Diluted earnings per share        $0.08          (0.20)          0.28
 
 
         40 weeks ended           As Reported    Non-recurring   Excluding
         April 4, 2001                              Charges    Non-recurring
 
     Net sales                    $9,913,512             ---     9,913,512
     Cost of sales                 7,291,670             ---     7,291,670
     Gross profit on sales         2,621,842             ---     2,621,842
     Operating and
      administrative expenses      2,440,521             ---     2,440,521
     Restructuring and
      other non-recurring charges     90,748          90,748           ---
     Operating income                 90,573        (90,748)       181,321
     Interest expense                 38,043           4,625        33,418
     Earnings before income tax       52,530        (95,373)       147,903
     Income taxes                     20,224        (36,719)        56,943
     Net earnings                    $32,306        (58,654)        90,960
     Basic earnings per share          $0.23          (0.42)          0.65
     Diluted earnings per share        $0.23          (0.42)          0.65
 
     (8)  Reclassification: Cash discounts and other income have been
          reclassified as a reduction of cost of sales and operating and
          administrative expense, respectively.  This reclassification is
          consistent with industry practice.  Certain prior year amounts have
          been reclassified to conform to the current year's presentation.
 
 
     Cautionary Statement Regarding Forward-Looking Information and Statements
     The projections following this Cautionary Statement are forward-looking
 statements within the meaning of the Private Securities Litigation Reform Act
 of 1995 with respect to the results of operations of the Company.  These
 forward-looking statements involve certain risks and uncertainties.  Factors
 that may cause actual results to differ materially from those projected
 include, among others, the following possibilities: (i) our ability to
 complete successfully the restructuring of operations adopted by the Board of
 Directors on April 19, 2000, (ii) our ability to integrate successfully the
 acquisition on January 11, 2001, of 68 stores and 32 gas stations from Jitney
 Jungle, (iii) heightened competition, including specifically the
 intensification of price competition, the entry of new competitors, or the
 expansion of existing competitors in one or more of our operating regions,
 (iv) changes in federal, state or local legislation or regulations affecting
 food manufacturing, food distribution, or food retailing, including
 environmental compliance; (v) the availability and terms of financing,
 including in particular the possible impact of changes in the ratings assigned
 to us by nationally recognized rating agencies; and (vi) general business and
 economic conditions in our operating regions, including the rate of
 inflation/deflation and changes in population, consumer demands and spending,
 types of employment and numbers of jobs.  The Company undertakes no obligation
 to publicly update or revise any forward-looking statements, whether as a
 result of new information, future events or otherwise.  Readers are cautioned
 not to place undue reliance on these forward-looking statements.  This news
 release, including the projections, should be read in conjunction with the
 reports of the Company on file with the Securities and Exchange Commission.
 
     Securities and Exchange Commission Fair Disclosure Forward-Looking
 Earnings Forecast
     To give guidance to all investors in the spirit of the Securities and
 Exchange Commission fair disclosure rules, the Company's earnings model
 projects the following:
 
                                      52 Weeks Ending        52 Weeks Ending
                                       June 27, 2001          June 26, 2002
                                     (dollars in thousands except per share)
 
                                      Low          High        Low      High
     Earnings excluding
      restructuring and other
      non-recurring charges      $133,000       147,000   $224,000   245,000
 
     Diluted earnings per share     $0.95          1.05       1.60      1.75
 
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SOURCE Winn-Dixie Stores, Inc.
    JACKSONVILLE, Fla., April 25 /PRNewswire Interactive News Release/ --
 Winn-Dixie Stores, Inc. (NYSE:   WIN) announced sales and results of operations
 for its third quarter of fiscal 2001.
     Excluding restructuring and interest on COLI, net earnings for the quarter
 were $39.0 million, or $0.28 per diluted share, compared to $10.3 million, or
 $0.07 per diluted share, for the same quarter last year.  Year-to-date, net
 earnings were $91.0 million, or $0.65 per diluted share, compared to
 $54.7 million, or $0.37 per diluted share.  Including the restructuring and
 interest on COLI, net earnings for the quarter were $10.7 million, or $0.08
 per diluted share, compared to $10.3 million, or $0.07 per diluted share, for
 the same quarter last year.  Year-to-date, net earnings were  $32.3 million,
 or $0.23 per diluted share, compared to $13.5 million, or $0.09 per diluted
 share, for the prior year.
     Sales for the 12 weeks ended April 4, 2001, were $3.0 billion, a decrease
 of $183.0 million, or 5.7% compared with the same quarter last year.  For the
 40 weeks ended April 4, 2001, sales were $9.9 billion, a $724.0 million
 decrease, or 6.8% under the prior year.  Identical store sales decreased 5.3%
 for the quarter and 4.2% for the year.  Comparable store sales, which include
 replacement stores, decreased 5.3% for the quarter and 4.0% for the year.
 Identical and comparable sales decreased largely because of the elimination of
 unprofitable sales departments (deli/cafes, melon bars, salad bars, dry
 cleaners, etc.), the elimination of unprofitable sales items in remaining
 departments, a reduction in the number of 24-hour stores and construction
 disruptions from numerous store modifications (retrofits).  During the third
 quarter, 384 locations had construction in progress due to the retrofit
 activity.
     In April 2000, the Board of Directors adopted management's "Plan of
 Restructuring."  The Plan includes retrofits to approximately 690 stores
 during fiscal 2001 at an estimated expense of $144 million ($88.6 million
 after tax or $0.63 per diluted share).  The current quarter includes
 restructuring charges totaling $44.5 million ($27.4 million after tax or $0.19
 per diluted share).  Year-to-date, restructuring charges totaled $90.7 million
 ($55.8 million after tax or $0.40 per diluted share).
     Al Rowland, Winn-Dixie's President and Chief Executive Officer, stated:
 "We are pleased with the progress of our restructuring program.  We have
 completed 426 store retrofits with an approximate return on capital of 50%.
 This is in line with our expectations and our projected results.  Our results
 show the impact our restructuring program is having on expense reductions.
 Centralized procurement is starting to improve our gross profits.  Our focus
 now is on improving store operations and customer count, which will improve
 sales."
     For the 40 weeks ended April 4, 2001, Winn-Dixie opened 12 new stores and
 acquired 77 stores, averaging 37,900 square feet, closed 13 stores, averaging
 34,500 square feet, enlarged 6 stores and remodeled 4 store locations.  As of
 April 4, 2001, there were 1,155 stores in operation, compared to 1,189 last
 year.  Of the 1,155 stores, 972 are larger than 35,000 square feet, with 794
 being Marketplace stores.  There are 7 new stores presently under
 construction.  By the end of this fiscal year, the Company plans to have
 opened 19 new stores, acquired 77 stores, and enlarged or remodeled 12
 existing stores.
     According to published reports, Winn-Dixie is one of the nation's largest
 retail food chains.
 
     Winn-Dixie Stores, Inc.
     Third Quarter
     Dollars in thousands except per share data
 
                                  12 Weeks Ended              12 Weeks Ended
                                   April 4, 2001               April 5, 2000
 
                             Amount             %       Amount             %
 
     Sales               $3,016,312         100.0    3,199,356         100.0
     Cost of sales        2,202,483          73.0    2,333,937          73.0
     Gross profit           813,829          27.0      865,419          27.0
     Operating &
      administrative
      expenses              737,392          24.4      841,809          26.3
     Restructuring and
      other non-recurring
      charges                44,542           1.5          ---           ---
     Operating income        31,895           1.1       23,610           0.7
     Interest expense *      14,457           0.5        6,907           0.2
     Earnings before
      income taxes           17,438           0.6       16,703           0.5
     Income taxes *           6,714           0.2        6,430           0.2
     Net earnings           $10,724           0.4       10,273           0.3
     Basic earnings
      per share               $0.08                       0.07
     Diluted earnings
      per share               $0.08                       0.07
     Dividends per share     $0.255                      0.255
     Number of stores         1,155                      1,189
 
 
     Fiscal Year-to-Date
     Dollars in thousands except per share data
 
                                  40 Weeks Ended            40 Weeks Ended
                                  April 4, 2001              April 5, 2000
 
                             Amount             %       Amount             %
 
     Sales               $9,913,512         100.0   10,637,551         100.0
     Cost of sales        7,291,670          73.6    7,732,859          72.7
     Gross profit         2,621,842          26.4    2,904,692          27.3
     Operating
      & administrative
      expenses            2,440,521          24.6    2,792,934          26.2
     Restructuring and
      other non-recurring
      charges                90,748           0.9          ---           ---
     Operating income        90,573           0.9      111,758           1.1
     Interest expense *      38,043           0.4       40,297           0.4
     Earnings before
      income taxes           52,530           0.5       71,461           0.7
     Income taxes *          20,224           0.2       57,912           0.6
     Net earnings           $32,306           0.3       13,549           0.1
     Basic earnings
      per share               $0.23                       0.09
     Diluted earnings
      per share               $0.23                       0.09
     Dividends per share     $0.765                      0.765
 
     * See note (3) Income Taxes
 
 
     Consolidated Balance Sheets
     Dollar amounts in thousands
 
     Assets                                     April 4, 2001  June 28, 2000
 
     Current assets                                $1,545,051      1,471,922
     Property, plant and equipment, net             1,170,916      1,034,493
     Other assets                                     322,917        240,678
                                                   $3,038,884      2,747,093
 
     Liabilities and Shareholders' Equity
 
     Short-term borrowings                               $---        235,000
     Other current liabilities                      1,109,129      1,186,553
       Current liabilities                          1,109,129      1,421,553
     Long-term debt                                   697,435            ---
     Other liabilities                                439,178        457,705
     Shareholders' equity                             793,142        867,835
                                                   $3,038,884      2,747,093
 
 
     Cash Flow Information
     Dollar amounts in thousands
 
                                                    40 Weeks       40 Weeks
                                                     Ended           Ended
                                                 April 4, 2001   April 5, 2000
 
     Net cash provided by operating activities        $55,238        502,930
     Net cash used in investing activities          (394,266)      (162,265)
     Net cash provided by (used in)
      financing activities                            327,406      (342,922)
     Decrease in cash and cash equivalents           (11,622)        (2,257)
     Cash and cash equivalents at beginning of year    29,576         24,746
     Cash and cash equivalents at end of period       $17,954         22,489
 
     Capital expenditures, net                       $269,917        177,999
     Depreciation and amortization                    144,904        200,679
     Dividends paid                                   107,032        112,338
 
 
     Supplemental and Explanatory Information
 
     (1)  Basis of Consolidation: The consolidated financial statements
          include the accounts of Winn-Dixie Stores, Inc. and its subsidiaries
          which operate as a major food retailer in fourteen states and the
          Bahama Islands.
 
     (2)  Interest Expense: During the third quarter of fiscal 2001, the
          Company capitalized interest totaling $0.3 million, and $5.2 million
          for the year, related to construction of new stores and a warehouse
          facility in Jacksonville, Florida.
 
     (3)  Income Taxes:  During fiscal 2000, the Company reserved $30.4 million
          for taxes and $19.7 million for interest ($42.5 million after tax, or
          $0.29 per diluted share) after receiving an unfavorable opinion in
          October 1999 and a computational decision on January 11, 2000, from
          the U.S. Tax Court.  Additional interest totaling $4.6 million
          ($2.8 million after tax) was recorded in the current year.  The Tax
          Court upheld the Internal Revenue Service's position that interest
          related to loans on broad-based, company owned life insurance
          policies in 1993 was not deductible for income tax purposes. Congress
          passed legislation phasing out such deductions over a three-year
          period in the fall of 1996.  The Company held such policies and
          deducted interest on outstanding loans from March 1993 through
          December 1997.  Management disagrees with the Tax Court's decision
          and has appealed.  While the ultimate outcome of this litigation
          cannot be predicted with certainty, in the opinion of management, the
          ultimate resolution of this matter will not have any additional
          material adverse impact on the Company's financial condition or
          results of operations.
 
     (4)  Inventory:  The following supplemental information is provided to
          facilitate comparisons with companies using the FIFO method.
 
                                  Third Quarter             Year-to-Date
                              (Dollars in thousands except per share data)
 
                           12 Weeks      12 Weeks     40 Weeks      40 Weeks
                               2001          2000         2001          2000
          FIFO Basis
 
     Inventories         $1,473,588     1,562,261    1,473,588     1,562,261
     Net earnings
      from operations        12,557        12,106       38,416        19,659
     Diluted earnings
      per share                0.09          0.08         0.27          0.13
 
     (5)  Earnings Per Share: The following weighted average number of shares
          of common stock were used in the calculations for earnings per share:
 
 
                                         Basic       Diluted
                                            (in thousands)
              2001
              Quarter                  140,233        140,964
              Year-to-Date             139,697        140,167
 
              2000
              Quarter                  144,376        144,621
              Year-to-Date             146,397        146,570
 
     (6)  Restructuring: On April 19, 2000, the Board of Directors adopted
          management's "Plan of Restructuring".  As a result of the
          restructuring, the Company recorded expenses of approximately
          $396 million ($256 million after tax or $1.76 per diluted share) in
          the fourth quarter of fiscal 2000.  An additional $144 million
          ($88.6 million after tax or $0.63 per diluted share) is expected to
          be incurred during fiscal 2001 for the store retrofits.  Charges
          totaling $44.5 million ($27.4 million after tax or $0.19 per diluted
          share) were recorded in the current quarter and $90.7 million
          ($55.8 million after tax or $0.40 per diluted share) for the year.
          The Company expects a reduction in expenses of approximately
          $400 million per year ($246 million after tax or $1.76 per diluted
          share) approximately one year following completion of the
          restructuring.
 
     (7)  Results of operations: The following table shows the effect of the
          restructuring charges and interest on company owned life insurance
          for the current year.
 
 
         12 weeks ended           As Reported    Non-recurring   Excluding
         April 4, 2001                              Charges    Non-recurring
 
     Net sales                    $3,016,312             ---     3,016,312
     Cost of sales                 2,202,483             ---     2,202,483
     Gross profit on sales           813,829             ---       813,829
     Operating and
      administrative expenses        737,392             ---       737,392
     Restructuring and
      other non-recurring charges     44,542          44,542           ---
     Operating income                 31,895        (44,542)        76,437
     Interest expense                 14,457           1,387        13,070
     Earnings before income taxes     17,438        (45,929)        63,367
     Income taxes                      6,714        (17,683)        24,397
     Net earnings                    $10,724        (28,246)        38,970
     Basic earnings per share          $0.08          (0.20)          0.28
     Diluted earnings per share        $0.08          (0.20)          0.28
 
 
         40 weeks ended           As Reported    Non-recurring   Excluding
         April 4, 2001                              Charges    Non-recurring
 
     Net sales                    $9,913,512             ---     9,913,512
     Cost of sales                 7,291,670             ---     7,291,670
     Gross profit on sales         2,621,842             ---     2,621,842
     Operating and
      administrative expenses      2,440,521             ---     2,440,521
     Restructuring and
      other non-recurring charges     90,748          90,748           ---
     Operating income                 90,573        (90,748)       181,321
     Interest expense                 38,043           4,625        33,418
     Earnings before income tax       52,530        (95,373)       147,903
     Income taxes                     20,224        (36,719)        56,943
     Net earnings                    $32,306        (58,654)        90,960
     Basic earnings per share          $0.23          (0.42)          0.65
     Diluted earnings per share        $0.23          (0.42)          0.65
 
     (8)  Reclassification: Cash discounts and other income have been
          reclassified as a reduction of cost of sales and operating and
          administrative expense, respectively.  This reclassification is
          consistent with industry practice.  Certain prior year amounts have
          been reclassified to conform to the current year's presentation.
 
 
     Cautionary Statement Regarding Forward-Looking Information and Statements
     The projections following this Cautionary Statement are forward-looking
 statements within the meaning of the Private Securities Litigation Reform Act
 of 1995 with respect to the results of operations of the Company.  These
 forward-looking statements involve certain risks and uncertainties.  Factors
 that may cause actual results to differ materially from those projected
 include, among others, the following possibilities: (i) our ability to
 complete successfully the restructuring of operations adopted by the Board of
 Directors on April 19, 2000, (ii) our ability to integrate successfully the
 acquisition on January 11, 2001, of 68 stores and 32 gas stations from Jitney
 Jungle, (iii) heightened competition, including specifically the
 intensification of price competition, the entry of new competitors, or the
 expansion of existing competitors in one or more of our operating regions,
 (iv) changes in federal, state or local legislation or regulations affecting
 food manufacturing, food distribution, or food retailing, including
 environmental compliance; (v) the availability and terms of financing,
 including in particular the possible impact of changes in the ratings assigned
 to us by nationally recognized rating agencies; and (vi) general business and
 economic conditions in our operating regions, including the rate of
 inflation/deflation and changes in population, consumer demands and spending,
 types of employment and numbers of jobs.  The Company undertakes no obligation
 to publicly update or revise any forward-looking statements, whether as a
 result of new information, future events or otherwise.  Readers are cautioned
 not to place undue reliance on these forward-looking statements.  This news
 release, including the projections, should be read in conjunction with the
 reports of the Company on file with the Securities and Exchange Commission.
 
     Securities and Exchange Commission Fair Disclosure Forward-Looking
 Earnings Forecast
     To give guidance to all investors in the spirit of the Securities and
 Exchange Commission fair disclosure rules, the Company's earnings model
 projects the following:
 
                                      52 Weeks Ending        52 Weeks Ending
                                       June 27, 2001          June 26, 2002
                                     (dollars in thousands except per share)
 
                                      Low          High        Low      High
     Earnings excluding
      restructuring and other
      non-recurring charges      $133,000       147,000   $224,000   245,000
 
     Diluted earnings per share     $0.95          1.05       1.60      1.75
 
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 SOURCE  Winn-Dixie Stores, Inc.