Question-and-Answer Session
Operator
Thank you. (Operator instructions) We will take our first question from Vincent Andrews with Morgan Stanley.
Vincent Andrews – Morgan Stanley
Hi. Good morning, everyone, or good afternoon. I keep saying that. Sorry. Good afternoon.
Jeffrey Zalla
Hi, Vincent.
Vincent Andrews – Morgan Stanley
I guess, Jeff, if I could just ask you, if I take out the $0.22 from the gain, you then lost $0.35 in the quarter versus a loss of $0.56 last year. And if I walk all the way back to June when you issued that guidance in mid-quarter update and ultimately came to the conclusion that you were going to have a loss in line with last year. I mean this is much better than last year. And I'm just not clear from your prepared remarks exactly what took place relative to your earlier expectations that allowed you to do so much better.
Jeffrey Zalla
Well, on an operating income basis, Vincent, results we're a little better than last year, $2 million better. On a net income basis, we were benefited, as you noted, by the $10 million gain on the senior note repurchase. We were also benefited by $3 million lower interest expense and a $6 million swing to our benefit in income tax. That led to the improvement in net income performance year-on-year.
Vincent Andrews – Morgan Stanley
Okay. So those were things that you did not – obviously, the $10 million I understand you didn't expect the time because you hadn't closed Atlanta yet. But the balance of that was stuff you were not anticipating?
Jeffrey Zalla
Correct. The focus at the time was on operating income performance.
Vincent Andrews – Morgan Stanley
Okay. Maybe that wasn't clear to me at the time. Okay. I guess my next question then is for Fernando. In the value added salad space, you talked about the category growing 3%. But if we break that 3% down into different segments, are they all growing at 3% or are the certain segments of the category growing faster than others? And how do you feel that you are positioned relative to the different segment growth rate?
Fernando Aguirre
Vincent, year-to-date, we, Fresh Express, we're essentially stable versus year ago on year-to-date and the category is up about 3.5%. In general terms, we feel very good about this because as we've talked before, this is a category that some people were a little concerned that it may see an impact. But as I noted in my remarks, even heads of lettuce are down in unit terms. And we are up as a category as well. So we are very, very comfortable with the way we are seeing consumers interact.
- To read the full transcript on Seeking Alpha, click here »
