Winn-Dixie Stores, Inc. F2Q09 (Qtr End 01/07/09) Earnings Call Transcript

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2009-02-13 02:23:09.0

Tags: EBITDA, Jacksonville, Winn-Dixie Stores Inc., Call Transcript, Earnings, Market, Bit, Branding, Marketing, Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions) And your first question will come from the line of Karen Short from FBR Capital Markets. Please proceed.

Karen ShortFBR Capital Markets

Hi everyone, congratulations.

Peter Lynch

Thanks Karen.

Karen ShortFBR Capital Markets

I have a couple of questions on, I guess housekeeping a little bit. First of all, I was wondering if you could just give us some color on the timing of the remodels in the second or the third and fourth quarter and then I don’t know if you could maybe give a little bit of an update on what you think that remodels may contribute to EBITDA in the back half because I know, you have kind of given a number previously and obviously things have changed a little bit.

Peter Lynch

Okay Karen, regarding the remodels we will have about – 17 will be completed in the third quarter and 41 will be completed in the fourth quarter, giving us a total of 75 to the year in 170 for the total company, which is very good number for us.

Karen ShortFBR Capital Markets

Okay, and what about – what are you thinking in terms of the EBITDA lift?

Peter Lynch

Well, obviously there is more coming towards the second half of the year because we have not done a whole lot in the first-half of the year. I don't have that number in the top of my head. I'll have Eric get back to you with exactly what that list is going to be.

Karen ShortFBR Capital Markets

Okay. And then looking just at markets in general, I guess are you – you must be fairly close to having completed all the remodels in the Jacksonville market. Is that right?

Peter Lynch

No. There are still quite a few to be done in the Jacksonville market, but what we have said in the call was one, we want to get out there and test all, most of the markets that we are in that we put remodels towards all of those markets, all those DMAs and then we want to make sure we had representatives of the different types of stores we wanted to do it be kosher or Hispanic et cetera, et cetera. We have done that. We have tested them. We tested the consumers, and that was the point we fine tune them. They were going to go back in on a market-by-market predominantly, okay. Complete a market. Really go after the brand in that market and then move on to the next, and I'm not announcing today what the next market is. I don't want to give my competitors a little bit of advantage but as we get one down we will obviously bring you guys up to speed and take you through the numbers, but at this point in time a lot of our focus here at Winn-Dixie is really now focusing on building the brand and putting all of our energies behind telling the great story that is going on here at Winn-Dixie. You know, we have 170 stores at the end of the year. I think that now gives us a base as we go market-by-market. I think we've got a great opportunity to talk about the new Winn-Dixie and where we're taking the company, and I think this is going to give us a real nice push as we move into next year.

 

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