Dart Group Corp.'s takeover battle for Supermarkets General Corp. helped push corporate profits up significantly for the quarter that ended July 31, the company reported yesterday.
Profits for the latest three months totaled $17.4 million ($9.30 a share), compared with $99,000 (5 cents) earned during the same time period a year ago.
The bulk of the latest gains stemmed from the $32 million pretax profit Dart earned from selling its shares in Supermarkets General following its unsuccessful bid for the company earlier this year, a Dart spokesman said yesterday.
However, when the costs of the takeover are considered, the actual pretax gains were between $25 million and $29 million, according to Dart's president Robert Haft.
Haft said that financial improvements in Dart's three subsidiaries -- Crown Book Corp., Trak Auto Corp. and Dart Financial Corp. -- also helped push the company's earnings upwards.
Revenue for the latest three months was up 12 percent to $98.7 million from $88.2 million.
For the six months that ended July 31, Dart's profits climbed to $46 million ($24.51 a share) from $576,000 (31 cents) a year ago. The six-month gain included profits from Dart's unsuccessful attempt to buy Safeway Stores Inc. a year ago.
Although Safeway thwarted Dart's bid by arranging a leveraged buyout by management, Dart gained $140 million in profits -- by selling Safeway stock it purchased during the takeover attempt at a higher price and also by selling an option to buy some Safeway stores after the takeover for $60 million.
The last of those profits was realized during Dart's first quarter.
Revenue for the six months climbed to $184.5 million from $168.9 million a year ago.
Vie de France Corp. reported that profits fell to $340,338 (3 cents) in the fiscal year ending June 27, compared with profits of $3.2 million (30 cents) for previous year.
The profit decline was a result of a previously announced restructuring of the company's wholesale division and occurred despite a slight increase in sales. Sales were $68.4 million compared with $62.1 million the year before.
For the fourth quarter, the company reported a loss of $342,433 (3 cents) on sales of $16.8 million compared with profits of $422,453 (4 cents) on sales of $14.5 million during the same period last year