Nash Finch Reports Fiscal 2004 Results; Refinancing Strengthens Balanc

    Business Editors

    MINNEAPOLIS--(BUSINESS WIRE)--March 2, 2005--Nash Finch Company (NASDAQ:NAFC), a leading national food distributor, today announced that net earnings for the 52 week fiscal 2004 year were $14.9 million, or $1.18 per diluted share, as compared to $35.1 million, or $2.88 per diluted share, for the 53 week 2003 year. Earnings from continuing operations were $14.9 million, or $1.18 per diluted share, for fiscal 2004 as compared to $34.7 million, or $2.85 per diluted share, for fiscal 2003. Fiscal 2004 earnings from continuing operations included several events, listed on the schedule attached to this release, which had a net unfavorable impact of $24.0 million, or $1.89 per diluted share, the largest of which was a special charge of $21.0 million, or $1.66 per diluted share, involving primarily non-cash costs associated with the disposition of 21 retail stores. Fiscal 2003 earnings from continuing operations included several events, also listed on the attached schedule, which had a net favorable impact of $4.5 million, or $0.37 per diluted share. Total sales for fiscal 2004 were $3.9 billion versus $4.0 billion in fiscal 2003. Excluding $68.4 million of extra sales from the 53rd week, fiscal 2003 sales would have been $3.9 billion.
    For the fourth quarter of 2004, total sales were $920 million compared to $1.011 billion in the prior-year period. Excluding $68.4 million of extra sales from the additional week in the 2003 fourth quarter, fourth quarter 2003 sales would have been $942.6 million. Net earnings were $11.2 million, or $0.87 per diluted share, for the 12 week period of 2004, compared to $13.0 million, or $1.05 per diluted share, in the year-ago period. Fourth quarter 2004 earnings from continuing operations were $11.2 million, or $0.87 per diluted share, compared to $12.5 million, or $1.02 per diluted share, for the fourth quarter 2003. Earnings from continuing operations for the last 12 weeks of 2004 were affected by several events, listed on the attached schedule, that had a net unfavorable impact of $0.5 million, or $0.04 per diluted share, the most significant of which was the payment of a call premium for early redemption of our 8.5% Senior Subordinated Notes and non cash charges related to the refinancing of our Senior Credit Facility. Fourth quarter 2003 earnings from continuing operations were favorably affected by $3.8 million, or $0.31 per diluted share, resulting from a reduction in health insurance expense primarily reflecting a decision to eliminate post-retirement medical benefits for non union employees.

    Food Distribution Acquisition

    The Company announced on February 24, 2005 that it had signed an agreement with Roundy's, Inc. to acquire the net assets, including customer contracts, of its wholesale food distribution divisions in Westville, Indiana and Lima, Ohio, and two retail stores in Ironton and Van Wert, Ohio, for approximately $225 million.
    The Westville and Lima Divisions to be acquired represent approximately $1.0 billion in annual food distribution sales, servicing over five hundred customers, principally in Indiana, Illinois, Ohio and Michigan. The distribution centers to be acquired fit well with the Company's existing network and no facility closures are anticipated. The strategically located distribution centers will allow the Company to expand merchandising programs in a variety of areas including the distribution of produce and meat, general merchandise, and health and beauty care. The Company expects that the acquisition will result in productivity improvements and buying efficiencies, which will be realized over several years. Examples of productivity improvements include the better balancing of transportation across the Company's distribution network to reduce miles and equipment, enhanced warehouse capacity utilization, and the reduction of outside storage space. The Company expects that the acquisition will be immediately accretive to earnings. Specifically, depending on the timing and nature of its integration process, the Company believes that as a result of the acquisition operating earnings, defined as sales less cost of sales and selling, general and administrative expenses, will improve by approximately $31 to $33 million, net of implementation costs of approximately $3 million, during the twelve months following closing of the transaction. This estimate includes a portion of the more than $8 million in annual synergies expected to be realized over several years. The impact on earnings per share will depend upon the nature and cost of the related financing, as well as the purchase accounting allocations and related amortization.
    The closing of the transaction is subject to customary conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and financing. The Company intends to finance the acquisition with borrowings under its existing bank facility and a debt or convertible debt financing.

    Continued Debt Reduction

    The Company announced during the fourth quarter that it had established a $300 million Senior Secured Credit Facility and completed the redemption of its 8.5% Senior Subordinated Notes Due 2008. These strategic transactions reduced the Company's effective interest rate. In addition, the Credit Facility provides additional operational flexibility and the ability to prepay debt without cost. The Company's significant cash flow improvement resulted in a 30 percent reduction in total debt since 1999 and a significantly lower leverage ratio. At the end of fiscal 1999, the Company's leverage ratio was 4.0 times Consolidated EBITDA(1), and it has improved to 1.9 times at the end of the fiscal year 2004. Although the announced acquisition will increase the Company's leverage ratio, the Company anticipates the acquisition will result in additional cash flows that will allow deleveraging over time.

    Food Distribution Results

    Food distribution segment sales for fiscal 2004 were $1.96 billion versus $1.92 billion in fiscal 2003, an increase of 2.1 percent. Excluding $33.3 million of extra sales from the 53rd week, fiscal 2003 sales would have been $1.88 billion, resulting in a 4.3 percent increase in sales from fiscal 2003 to fiscal 2004. Food Distribution segment profits were $73.6 million for fiscal 2004 versus $63.9 million last year.
    In the fourth quarter of 2004, sales in the food distribution segment were $470.0 million versus $501.4 million in the year ago quarter. Excluding $33.3 million in sales from the 53rd week, fourth quarter sales for fiscal 2003 would have been $468.1 million. Segment profits for the current quarter were $18.7 million versus $16.6 million in the prior year period.

    Military Distribution Results

    Military distribution segment sales for fiscal 2004 increased to $1.12 billion compared to $1.09 billion for fiscal 2003, an increase of 2.8%. Excluding $17.3 million in sales from the 53rd week, fiscal 2003 sales would have been $1.07 billion, resulting in a 4.7 percent increase in sales from fiscal 2003 to fiscal 2004. Military segment profits were $36.3 million in 2004 versus $31.3 million in fiscal 2003. Military sales for the fourth quarter of 2004 were $274.7 million compared to $276.4 million for the year-ago period. Excluding $17.3 million in sales for the 53rd week, fourth quarter sales for fiscal 2003 would have been $259.1 million. Fourth quarter segment profits were $8.6 million in both fiscal 2004 and 2003.

    Retail Results

    Corporate retail sales were $813.8 million in fiscal 2004 versus $966.3 million in the prior-year period. Excluding $17.8 million in sales from the 53rd week, fiscal 2003 sales would have been $948.5 million. For the fourth quarter 2004, corporate retail sales were $175.3 million as compared to $233.6 million in the fourth quarter of 2003. Excluding $17.8 million in sales for the 53rd week, fourth quarter sales for fiscal 2003 would have been $215.8 million. Same-store sales decreased 7 percent for fiscal 2004, as compared to fiscal 2003, and 6 percent for the fourth quarter of 2004, as compared to the same period in 2003. These declines continue to reflect competitive openings that have occurred during the past year in the Company's retail territories. Retail segment profits were $27.1 million in 2004 and $30.2 million in 2003. Retail segment profits were $9.9 million in the fourth quarter of 2004 versus $5.8 million in the prior-year period as a result of greater control over promotional spending and expense control initiatives which offset the loss in sales. The store count at the end of the fourth quarter of 2004 was 85 compared to 110 at the end of the fourth quarter of 2003.

    Outlook

    The Company estimates that its diluted earnings per share for fiscal 2005 will range between $3.40 and $3.55 before the accretive effect of the acquisition discussed above. This compares to fiscal 2004 earnings from continuing operations of $1.18 per diluted share which included several events that had a net unfavorable impact of $24.0 million, or $1.89 per diluted share. This outlook for fiscal 2005 assumes low single digit sales growth in our food and military food distribution segments and flat to slightly negative same store sales in our retail segment. In addition, the Company anticipates some margin improvement across all segments as we continue to focus on productivity efficiencies. Depreciation and amortization will be impacted by capital expenditures during fiscal 2005 of approximately $35 million. We also estimate our average interest rate to be approximately 7.0% in fiscal 2005. Finally, the Company expects its working capital to remain relatively consistent with 2004.
    A conference call to review fourth quarter results and discuss the acquisition is scheduled for 10 a.m. (CT) on March 3, 2005. Interested participants can listen to the conference call over the Internet by logging onto the "Investor Relations" portion of Nash Finch's website at http://www.nashfinch.com. A replay of the webcast will be available and the transcript of the call will be archived on the "Investor Relations" portion of Nash Finch's website under the heading "Audio Archives." A copy of this press release and the other financial and statistical information about the periods to be discussed in the conference call will be available at the time of the call on the "Investor Relations" portion of the Nash Finch website under the caption "Press Releases."
    Nash Finch Company is a Fortune 500 company and one of the leading food distribution companies in the United States with nearly $4 billion in annual revenues. Nash Finch's food distribution business serves independent retailers and military commissaries in 26 states, the District of Columbia, Europe, Cuba, Puerto Rico, Iceland, the Azores and Honduras. The Company also owns and operates retail stores primarily in the Upper Midwest. Further information is available on the Company's website at www.nashfinch.com.
    The statements in this release that refer to anticipated financial results, improvements, plans and developments are forward-looking statements based on current expectations and assumptions, and entail risks and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements. Important factors that could cause material differences include the Company's ability to conclude the acquisition of the two distribution centers within the expected timeframe and on favorable financing terms; the Company's ability to successfully integrate into its business the distribution centers to be acquired; the effect of competition on the Company's distribution and retail businesses; the Company's ability to identify and execute plans to maximize the value of its remaining retail operations and to expand wholesale operations; general economic conditions; credit risk from financial accommodations extended to customers; the success or failure of new business ventures and initiatives; changes in consumer spending and buying patterns; risks entailed by expansion, affiliations and acquisitions; limitations on financial and operating flexibility due to debt levels and debt instrument covenants; possible changes to the military commissary system; adverse determinations or developments with respect to litigation, other legal proceedings or the SEC investigation; and other cautionary factors discussed in the Company's periodic reports filed with the SEC. The Company does not undertake to update forward-looking statements to reflect future events or circumstances, but investors are advised to consult future disclosures involving these topics in our periodic reports filed with the SEC.

    (1) Consolidated EBITDA and leverage ratio are non-GAAP financial measures that are defined and reconciled to the most directly comparable GAAP financial measures in the schedules attached to this release.

NASH FINCH COMPANY AND SUBSIDIARIES Consolidated Statements of Income (In thousands, except per share amounts)

Twelve Thirteen Fifty-Two Fifty-Three Weeks Ended Weeks Ended Weeks Ended Weeks Ended --------------------------------------------------- January 1, January 3, January 1, January 3, 2005 2004 2005 2004 ------------ ------------ ------------ ------------ (Unaudited) (Unaudited) Sales $920,040 1,011,445 3,897,074 3,971,502

Cost and expenses: Cost of sales 821,883 897,426 3,474,329 3,516,460 Selling, general and administrative 64,530 76,183 295,524 326,828 Special charges (1,715) - 34,779 - Extinguishment of debt 7,204 - 7,204 - Depreciation and amortization 8,670 10,232 40,241 42,412 Interest expense 5,007 7,032 25,798 33,869 ------------ ------------ ------------ ------------ Total cost and expenses 905,579 990,873 3,877,875 3,919,569

Earnings from continuing operations before income taxes 14,461 20,572 19,199 51,933

Income tax expense 3,274 8,023 4,322 17,254 ------------ ------------ ------------ ------------

Earnings from continuing operations 11,187 12,549 14,877 34,679

Discontinued operations: Gain on disposition 91 678 91 678 Tax expense 36 265 36 265 ------------ ------------ ------------ ------------ Net earnings from discontinued operations 55 413 55 413

------------ ------------ ------------ ------------ Net earnings $11,242 12,962 14,932 35,092 ============ ============ ============ ============

Basic earnings per share: Continuing operations $0.89 1.03 1.20 2.87 Discontinued operations - 0.03 - 0.03 ------------ ------------ ------------ ------------ Net earnings per share $0.89 1.06 1.20 2.90 ============ ============ ============ ============

Diluted earnings per share: Continuing operations $0.87 1.02 1.18 2.85 Discontinued operations - 0.03 - 0.03 ------------ ------------ ------------ ------------ Net earnings per share $0.87 1.05 1.18 2.88 ============ ============ ============ ============

Cash dividends per common share $0.135 0.09 0.54 0.36

Weighted average number of common shares outstanding and common equivalent shares outstanding: Basic 12,621 12,192 12,450 12,082 Diluted 12,896 12,357 12,657 12,195

NASH FINCH COMPANY AND SUBSIDIARIES Consolidated Balance Sheets (In thousands, except per share amounts)

January 1, January 3, Assets ------ 2005 2004 ------------ ------------ Current assets: Cash $5,029 12,757 Accounts and notes receivable, net 157,397 145,902 Inventories 213,343 236,289 Prepaid expenses 15,524 15,136 Deferred tax assets 9,294 5,726 ------------ ------------ Total current assets 400,587 415,810

Investments in marketable securities 1,661 20 Notes receivable, net 26,554 31,178

Property, plant and equipment: Land 21,289 24,121 Buildings and improvements 155,906 163,693 Furniture, fixtures and equipment 300,432 328,318 Leasehold improvements 71,907 86,746 Construction in progress 1,784 1,673 Assets under capitalized leases 40,171 41,661 ------------ ------------ 591,489 646,212 Less accumulated depreciation and amortization (377,820) (383,861) ------------ ------------ Net property, plant and equipment 213,669 262,351

Goodwill 147,435 149,792 Investment in direct financing leases 10,876 13,426 Deferred tax asset, net 2,560 - Other assets 12,286 13,775 ------------ ------------ Total assets $815,628 886,352 ============ ============

Liabilities and Stockholders' Equity --------------------------------------------- Current liabilities: Outstanding checks $11,344 23,350 Current maturities of long-term debt and capitalized lease obligations 5,440 5,278 Accounts payable 180,359 166,742 Accrued expenses 72,200 78,768 Income taxes 10,819 10,614 ------------ ------------ Total current liabilities 280,162 284,752

Long-term debt 199,243 281,944 Capitalized lease obligations 40,360 44,639 Deferred tax liability, net - 6,358 Other liabilities 21,935 12,202 Commitments and contingencies - - Stockholders' equity: Preferred stock - no par value Authorized 500 shares; none issued - - Common stock of $1.66 2/3 par value Authorized 50,000 shares, issued 12,657 and 12,152 shares, respectively 21,096 20,255 Additional paid-in capital 34,848 27,995 Restricted stock (224) (475) Common stock held in trust (1,652) - Deferred compensation obligations 1,652 - Accumulated other comprehensive income (5,262) (5,970) Retained earnings 223,676 215,417 ------------ ------------ 274,134 257,222 Less cost of 11 and 35 shares of common stock in treasury, respectively (206) (765) ------------ ------------ Total stockholders' equity 273,928 256,457 ------------ ------------

Total liabilities and stockholders' equity $815,628 886,352 ============ ============

See accompanying notes to consolidated financial statements.

NASH FINCH COMPANY AND SUBSIDIARIES Consolidated Statements of Cash Flows (In thousands)

2004 2003 ------------ ------------ Operating activities: Net earnings $14,932 35,092 Adjustments to reconcile net income to net cash provided by operating activities: Special charges - non cash portion 34,779 - Discountinued operations (91) (678) Extinguishment of debt 2,530 - Curtailment of post retirement plan - (4,004) Depreciation and amortization 40,241 42,412 Amortization of deferred financing costs 1,115 1,129 Amortization of rebatable loans 2,392 1,521 Provision for bad debts 4,220 8,707 Deferred income tax expense (9,246) 15,480 Gain on sale of property, plant and equipment (6,001) (1,003) LIFO charge (credit) 3,525 (1,120) Asset impairments 853 2,706 Other 5,228 (832) Changes in operating assets and liabilities, net of effects of acquisitions Accounts and notes receivable (11,270) 18,484 Inventories 19,421 13,145 Prepaid expenses (388) (2,564) Accounts payable 13,617 (3,817) Accrued expenses (17,747) (9,411) Income taxes payable (3,035) 541 Other assets and liabilities 6,819 (1,286) ------------ ------------ Net cash provided by operating activities 101,894 114,502 ------------ ------------

Investing activities: Disposal of property, plant and equipment 17,136 9,002 Additions to property, plant and equipment (22,327) (40,728) Business acquired, net of cash - (2,054) Loans to customers (4,364) (10,626) Payments from customers on loans 2,916 7,058 Purchase of marketable securities (2,610) - Sale of marketable securities 1,113 - Other (144) - ------------ ------------ Net cash used in investing activities (8,280) (37,348) ------------ ------------

Financing activities: Proceeds (payments) of revolving debt 14,674 (79,400) Dividends paid (6,673) (4,320) Proceeds from exercise of stock options 5,380 1,087 Proceeds from employee stock purchase plan 654 638 Proceeds from long-term debt 175,000 - Payments of long-term debt (268,047) (7,195) Payments of capitalized lease obligations (2,515) (2,900) Decrease in outstanding checks (12,006) (3,726) Premium paid for early extinguishment of debt (4,674) - Other (3,135) - ------------ ------------

Net cash used in financing activities (101,342) (95,816) ------------ ------------ Net decrease in cash (7,728) (18,662) Cash at beginning of year 12,757 31,419 ------------ ------------ Cash at end of year $5,029 12,757 ============ ============

NASH FINCH COMPANY AND SUBSIDIARIES Supplemental Data (Unaudited)

Impact on Actual Results due to Items Discussed in Press Release (In thousands, except per share amounts) ----------------------------------------------------------------------

Twelve Weeks Ended Thirteen Weeks Ended January 1, 2005 January 3, 2004 $ EPS $ EPS ----------- ----------- ----------- ----------- Net earnings from continuing operations as reported 11,187 0.87 12,549 1.02

Items discussed in the press release -------------------- Call premium for early redemption of Senior Subordinated Notes (Q4 2004) 2,819 0.22 - - Write-off of unamortized finance costs and original issuance discount on credit facility and senior subordinated notes (Q4 2004) 1,525 0.12 - - Change in estimate of special charges from store dispositions (Q4 2004) (1,312) (0.10) - - Reduction of health insurance expense (Q4 2003) - - (3,790) (0.31) Reduction of income tax expense (Q4 2004) (2,500) (0.20) - -

Fifty-Two Weeks Ended Fifty-Three Weeks Ended January 1, 2005 January 3, 2004 $ EPS $ EPS ----------- ----------- ----------- ----------- Net earnings from continuing operations as reported 14,877 1.18 34,679 2.85

Items discussed in the press release -------------------- Call premium for early redemption of Senior Subordinated Notes (Q4 2004) 2,819 0.22 - - Write-off of unamortized finance costs and original issuance discount on credit facility and senior subordinated notes (Q4 2004) 1,525 0.12 - - Change in estimate of special charge from store dispositions (Q4 2004) (1,312) (0.10) - - Special charges from store dispositions (Q2 2004) 22,262 1.76 - - Store closure cost reflected in operations (Q2 2004) 2,009 0.16 - - Fees paid to lenders as consideration for bond indenture and credit facility waivers (Q1 2003) - - 2,339 0.19 Reduction of health insurance expense (Q4 2003) - - (3,790) (0.31) Reduction in income tax expense (Q4 2004, Q3 2004 and Q3 2003) (3,300) (0.27) (3,000) (0.25)

Twelve Thirteen Fifty-Two Fifty-Three Weeks Ended Weeks Ended Weeks Ended Weeks Ended January 1, January 3, January 1, January 3, Other Data (In thousands) 2005 2004 2005 2004 ---------------------- ----------- ----------- ----------- -----------

Cash from operations $6,579 14,994 101,894 114,502 Debt to total capitalization 47% 56% 47% 56% Total debt $245,043 331,861 245,043 331,861 Capital spending $7,579 15,169 22,327 40,728 Capitalization $518,971 588,318 518,971 588,318 Stockholders' equity $273,928 256,457 273,928 256,457 Working Capital Ratio (a) 2.07 3.51 2.07 3.51

Non-GAAP Data -------------------- Consolidated EBITDA (b) $36,132 31,713 127,368 123,964 Senior Secured Leverage Ratio (c) 1.45 - 1.45 - Leverage Ratio - trailing 4 qtrs. (debt to Consolidated EBITDA) (d) 1.92 2.68 1.92 2.68 Interest Coverage Ratio - trailing 4 qtrs. (Consolidated EBITDA to interest expense) (e) 4.95 3.66 4.95 3.66

Comparable GAAP Data -------------------- Senior secured debt to earnings before income taxes (c) 9.64 - 9.64 - Debt to earnings before income taxes (d) 12.76 6.39 12.76 6.39 Earnings before income taxes to interest expense (e) 0.74 1.53 0.74 1.53

Debt Covenants Required Actual Ratio Ratio -------------------- ----------- ----------- Working Capital 1.50 Ratio (minimum) 2.07 Senior Secured 2.75 Leverage Ratio (maximum) 1.45 Leverage Ratio 3.50 (maximum) 1.92 Interest Coverage 3.50 Ratio (minimum) 4.95

(a)Working Capital Ratio is defined as net trade accounts receivable plus inventory divided by the sum of loans and letters of credit outstanding under the new credit agreement plus certain additional secured debt.

(b)Consolidated EBITDA, as defined in our credit agreement, is earnings before interest, income tax, depreciation and amortization, adjusted to exclude extraordinary gains or losses, gains or losses from sales of assets other than inventory in the ordinary course of business, and non-cash charges (such as LIFO, asset impairments and closed store lease costs), less cash payments made during the current period on non-cash charges recorded in prior periods. Consolidated EBITDA should not be considered an alternative measure of our net income, operating performance, cash flow or liquidity. The amount of Consolidated EBITDA is provided as additional information relative to compliance with our debt covenants.

(c)Senior Secured Leverage Ratio is defined as total senior secured debt at January 1, 2005 divided by Consolidated EBITDA for the trailing four quarters. The most comparable GAAP ratio is senior secured debt at the same date to earnings before income taxes for the respective trailing four quarters.

(d)Leverage Ratio is defined as the Company's end of period debt at January 1, 2005 and January 3, 2004, divided by Consolidated EBITDA for the respective four trailing quarters. The most comparable GAAP ratio is debt at the same dates divided by earnings before income taxes for the respective four trailing quarters.

(e)Interest Coverage Ratio is defined as the Company's Consolidated EBITDA divided by interest expense for the four trailing quarters ending January 1, 2005 and January 3, 2004, respectively. The most comparable GAAP ratio is earnings before income taxes divided by interest expense for the same periods.

Reconciliation of Consolidated EBITDA (in thousands) ---------------------------------------------------------------------- Consolidated EBITDA is derived from the Company's earnings before income taxes as follows:

2004 2004 2004 2004 Rolling Qtr 1 Qtr 2 Qtr 3 Qtr 4 4 Qtr -------- -------- -------- -------- --------

Earnings before income taxes $7,757 (25,639) 22,620 14,461 19,199 Add/(deduct) Interest expense 6,505 6,487 7,799 5,007 25,798 Depreciation and amortization 10,156 9,800 11,615 8,670 40,241 LIFO 392 783 1,043 1,307 3,525 Closed store lease costs (129) 1,146 643 3,211 4,871 Asset Impairments - - - 853 853 Gains on sale of real estate (82) (14) (3,317) (2,173) (5,586) Subsequent cash payments on non- cash charges (565) (625) (1,633) (693) (3,516) Extinguishment of debt - - - 7,204 7,204 Special charges - 36,494 - (1,715) 34,779 -------- -------- -------- -------- -------- Total Consolidated EBITDA $24,034 28,432 38,770 36,132 127,368 ======== ======== ======== ======== ======== Rolling Consolidated EBITDA Qtr 1 Qtr 2 Qtr 3 Qtr 4 4 Qtr by Segment -------- -------- -------- -------- -------- Food Distribution $16,441 19,650 25,151 20,643 81,885 Military 8,579 8,988 11,340 9,029 37,936 Retail 6,743 7,414 14,515 12,678 41,350 Unallocated Corporate Overhead (7,729) (7,620) (12,236) (6,218) (33,803) -------- -------- -------- -------- -------- $24,034 28,432 38,770 36,132 127,368 ======== ======== ======== ======== ========

2003 2003 2003 2003 Rolling Qtr 1 Qtr 2 Qtr 3 Qtr 4 4 Qtr -------- -------- -------- -------- --------

Earnings before income taxes $5,346 11,910 14,105 20,572 51,933 Add/(deduct) Interest expense 10,791 7,035 9,011 7,032 33,869 Depreciation and amortization 9,440 9,642 13,098 10,232 42,412 LIFO 400 400 41 (1,961) (1,120) Closed store lease costs 354 32 583 187 1,156 Asset Impairments 390 - 1,725 591 2,706 Gains on sale of real estate (66) (126) (218) (338) (748) Subsequent cash payments on non- cash charges (532) (508) (602) (598) (2,240) Curtailment of post retirement health care plan - - - (4,004) (4,004) -------- -------- -------- -------- -------- Total Consolidated EBITDA $26,123 28,385 37,743 31,713 123,964 ======== ======== ======== ======== ======== Rolling Consolidated EBITDA Qtr 1 Qtr 2 Qtr 3 Qtr 4 4 Qtr by Segment -------- -------- -------- -------- -------- Food Distribution $13,254 16,288 24,440 18,615 72,597 Military 7,043 7,046 9,736 8,992 32,817 Retail 10,886 13,110 13,099 9,851 46,946 Unallocated Corporate Overhead (5,060) (8,059) (9,532) (5,745) (28,396) -------- -------- -------- -------- -------- $26,123 28,385 37,743 31,713 123,964 ======== ======== ======== ======== ========

--30--SF/ms*

CONTACT: Nash Finch Company, Minneapolis LeAnne Stewart, 952-844-1060

KEYWORD: MINNESOTA INDUSTRY KEYWORD: SUPERMARKETS FOODS/BEVERAGES RETAIL EARNINGS CONFERENCE CALLS SOURCE: Nash Finch Company

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