Current Quarterly Reports

August 2, 2004
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Spartan Stores Inc. (Nasdaq: SPTN) reported its fifth consecutive quarter of year-over-year consolidated net sales growth for fiscal 2005’s first quarter ended June 19.

Net sales were $474.3 million, compared with $462.6 million for the corresponding quarter last year.

Operating earnings rose to $4.9 million, compared with an operating loss of $900,000 in 2004’s first quarter, an improvement the company attributes to lower operating expenses and higher year-over-year sales volumes in its retail and distribution businesses.

Net earnings for the just-passed quarter increased to $1.6 million, or 8 cents per diluted share, compared with a net loss of $6.1 million, or 31 cents per share, for the same quarter last year.

Chairman, President and CEO Craig C. Sturken said solid sales and profit growth in both Spartan’s retail and distribution divisions during the quarter and the company’s continued emphasis on sales growth and cost containment contributed to the increase.

Retail net sales increased by $1.2 million over 2004’s first quarter. According to Spartan, retail sales during the quarter were partially offset by lower prescription sales at the company’s Pharm stores due to an increase in direct mail order prescription fulfillment.

The company further noted that Pharm store sales also were affected by the transfer of business that followed the closure of Food Town stores last year.

Distribution net sales were $260.8 million, up from $250.3 million for the year-ago quarter. Operating earnings for the distribution business rose $4.7 million, up from $2.1 million in the prior year’s first quarter.

“Fiscal 2005 is off to an excellent start and we are on track to achieve further financial improvements during the year,” Sturken stated.

X-Rite Inc. (Nasdaq: XRIT) reported its eighth consecutive quarter of year-over-year sales growth and the highest level of second quarter sales revenue in its history, posting net sales of $31.8 million for the second quarter ended July 3. Net sales increased 13 percent over net sales for 2003’s second quarter.

Operating income was $4.8 million for the quarter, up 87 percent over operating income of $2.6 million reported 2003’s second quarter. According to X-Rite, operating income was 15.1 percent of sales in the second quarter as opposed to 9.1 percent of sales in the second quarter of last year.

“During the second quarter we continued to invest in engineering, sales and marketing to support the launch of seven new products under the Streamlined Color Management banner,” said CEO Michael C. Ferrara.

He added that X-Rite’s acquisition of Milan-based Moniga Gremmo S.r.l in the just-passed quarter positions the company to enhance its global product offering and grow its revenue base in the European market.

“We remain confident in our ability to deliver double-digit revenue growth and higher operating income throughout 2004 vs. 2003,” Ferrara said.

OAK Financial Corp. (Pink Sheets: OKFC), the bank holding company for Byron Center State Bank, reported second quarter 2004 net income of $952,000, down 15 percent from the $1.11 million posted for last year’s second quarter.

Basic and diluted earnings per share also declined 15 percent, from 55 cents per share in the second quarter of 2003 to 47 cents per share during the just-passed quarter. Year-to-date, net income and earnings per share declined 1 percent compared with the same period last year.

According to OAK Financial, the decline in net income in both the second quarter and year-to-date periods is due to the decline in net interest income as a result of historically low interest rates and intense competition.

“Over the past 18 months, we’ve successfully resolved our regulatory challenges and rebuilt the basic structure of our company,” said President and CEO Patrick K. Gill.

Gill said the company also has assembled a “first-class team” of financial professionals and has made necessary upgrades to many of its systems.

“That investment in talent and capacity is designed to, over time, ensure strong financial performance,” he continued. “In the short term, however, the cost of those improvements, coupled with continued low interest rates have constrained earnings growth.”

OAK financial officials said that despite lower income from mortgage banking activities in 2004, total non-interest income was stable as a result of increases in deposit service charges and brokerage fees.

Total assets increased $8 million and total loans increased $20 million from Dec. 31, 2003, to June 30, 2004, marking the third consecutive quarter of asset and loan growth.

Total deposits also grew over the past six months, up $4 million from Dec. 31, 2003.

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