Pink Sheet is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By



Executive Summary

NORTHWESTERN's SALES TO PAY'N SAVE STORES ACCOUNTED FOR NEARLY ONE-THIRD of the drug whsle. subsidiary's nearly $200 mil. sales in FY 1985, Pay'N Save noted in its proxy to shareholders covering the just-enacted leveraged buy-out by the Trump Group. According to the proxy, Northwestern sales were $196.9 mil. in fiscal 1985 (ended Feb. 2), including intersegment sales of $60 mil. The retail chain's internal business with its whslr. subsidiary translates into 30.5% of Northwestern's total sales for the year. The proxy notes that Northwestern customers "include certain of [Pay'N Save's] retail business segments, with intersegment sales made at cost plus a markup." However, not counting its intersegment business with Pay'N Save stores, Northwestern showed a 23% sales improvement in FY 1985. Not including intersegment sales, the whslr. posted volume of $136.9 mil. in FY 1985, up from the $111.6 mil. in sales Northwestern registered prior to its acquisition by Pay'N Save last February. However, in spite of the increased business, Northwestern's operating losses grew from $604,000 in FY 1984 to just over $1 mil. in FY 1985. The proxy indicates that all of Pay'N Save's business segments were under pressure in fiscal 1985. Although sales from its drug store operations were up 4.6% for the year, operating earnings from drug stores slipped 36.7% to $22.7 mil. Hardest hit was the chain's home center operations with sales declining 8% to $296 mil. accompanied by a net loss of nearly $1.3 mil. Apparel and auto specialty segment earnings were also off from fiscal 1984, the proxy shows. Overall, Pay'N Save corporate net earnings fell 50.8% to $14.8 mil. in fiscal 1985 on a 14.2% sales increase to $1.39 bil. The proxy statement may be the last public book at Pay'N Save provided by the company. On May 1, Pay'N Save shareholders voted in support of a leveraged buy-out plan by a New York investor group led by Julius and Eddie Trump for $23.50 a share.

You may also be interested in...

Part D Discount Liability Coming Into Focus: CMS Releases Drug Cost Data

Newly released Medicare Part D data sheds light on the sales hit that branded pharmaceutical manufacturers will face when the coverage gap discount program gets under way in 2011

FDA Skin Infections Guidance Spurs Debate On Endpoint Relevance

FDA appears headed for a showdown with clinicians and the pharmaceutical industry over the proposed new clinical trial endpoints for acute bacterial skin and skin structure infections, the guidance's approach for justifying a non-inferiority margin and proposed changes in the types of patients that should be enrolled in trials

Shire Hopes To Sow Future Deals With $50M Venture Fund

Specialty drug maker Shire has quietly begun scouting deals with a brand-new $50 million venture fund, the latest of several in-house investment arms to launch with their parent company's pipelines, not profits, as the measure of their worth



Ask The Analyst

Please Note: You can also Click below Link for Ask the Analyst
Ask The Analyst

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts