SUNBURY, Pa., Oct. 23 /PRNewswire-FirstCall/ -- Weis Markets, Inc. (NYSE: WMK) today said its third quarter sales increased 4.1% to $557.2 million and that its comparable store sales increased 3.2% compared to the same period a year ago. During the thirteen-week period ending September 30, 2006, the Company's basic and diluted earnings per share declined $.08 to $.43 per share and its net income declined 15.4% to $11.6 million. The Company's sales, particularly in its perishable departments, continue to benefit from its new advertising campaign and promotional programs. It also continues to see growth in some of its key center store categories. The Company attributed the decline in its net income to: -- A 5.9% increase in labor expenses, which were significantly affected by additional staffing requirements for nine expansion projects including eight remodels and one new store. -- A 27.1% increase in diesel fuel costs and an estimated 15% increase in the cost of petroleum based store supplies. -- A 13.6% increase in credit and debit interchange fees. -- A $1.2 million pre-tax write-off for a closed store. -- A $417,000 expense for an environmental remediation on a non-store property. Year-to-Date The Company's year-to-date sales for the 39-week period ending September 30, 2006 increased 2.9% to $1.7 billion while its comparable store sales increased 2.0%. Net income declined 6.8% to $42.0 million and year-to-date basic and diluted earnings per share declined $.12 to $1.55 per share. About Weis Markets Founded in 1912 by Harry and Sigmund Weis, Weis Markets, Inc. is a Mid-Atlantic supermarket company that operates 156 stores in five states: Pennsylvania, Maryland, New Jersey, New York and West Virginia. It also owns and operates SuperPetz, a pet supply superstore chain with 31 locations in ten states. In addition to historical information, this news release may contain forward-looking statements. Any forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. For example, risks and uncertainties can arise with changes in: general economic conditions, including their impact on capital expenditures; business conditions in the retail industry; the regulatory environment; rapidly changing technology and competitive factors, including increased competition with regional and national retailers; and price pressures. The Company undertakes no obligation to publicly revise or update these forward-looking statements to reflect events or circumstances that arise after the date hereof other than through its periodic filings with the Securities and Exchange Commission that are available to the public. WEIS MARKETS, INC. and Subsidiaries COMPARATIVE SUMMARY OF UNAUDITED SALES & EARNINGS Third Quarter - 2006 13 Week 13 Week Period Ended Period Ended Increase Sept. 30, 2006 Sept. 24, 2005 (Decrease) Net Sales $557,177,000 $535,251,000 4.1% Income Before Taxes 17,242,000 21,545,000 (20.0%) Provision for Income Taxes 5,677,000 7,878,000 (27.9%) Net Income $11,565,000 $13,667,000 (15.4%) Weighted-Average Shares Outstanding 27,029,000 27,030,000 (1,000) Basic and Diluted Earnings Per Share $0.43 $0.51 ($0.08) 39 Week 39 Week Period Ended Period Ended Increase Sept. 30, 2006 Sept. 24, 2005 (Decrease) Net Sales $1,666,907,000 $1,620,697,000 2.9% Income Before Taxes 64,642,000 71,567,000 (9.7%) Provision for Income Taxes 22,650,000 26,510,000 (14.6%) Net Income $41,992,000 $45,057,000 (6.8%) Weighted-Average Shares Outstanding 27,032,000 27,035,000 (3,000) Basic and Diluted Earnings Per Share $1.55 $1.67 ($0.12) DATASOURCE: Weis Markets, Inc. CONTACT: Dennis V. Curtin of Weis Markets, Inc., +1-570-286-3636, or

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