Prospectus Supplement and Quarterly Report for Unified Western Grocers, Inc.

The Prospectus Supplement and Quarterly Report for Unified Western Grocers, Inc. serves as a critical document for stakeholders. It supplements the original prospectus dated February 11, 2008, providing updated information regarding the company's financial status and securities. The document is filed under Rule 424(b)(3) and includes essential disclosures required by the Securities and Exchange Commission (SEC). The significance of this supplement lies in its role in ensuring transparency and compliance with regulatory standards. It highlights the importance of accurate reporting in maintaining investor trust and market integrity. The date of this supplement is February 15, 2008, indicating its relevance to the financial period ending December 29, 2007. This document is vital for investors seeking to understand the financial health and operational performance of Unified Western Grocers, Inc.

The financial statements included in the Quarterly Report provide a comprehensive overview of Unified Western Grocers, Inc.'s financial performance. The Consolidated Condensed Balance Sheets reveal total assets of $855,563,000, reflecting a significant increase from the previous period. Current assets, including cash and cash equivalents, accounts receivable, and inventories, are crucial indicators of liquidity. The liabilities section shows current liabilities of $342,621,000, which must be managed effectively to ensure financial stability. The shareholders' equity section indicates a healthy equity position, with total shareholders' equity amounting to $190,378,000. This financial overview underscores the company's ability to generate revenue and manage expenses effectively, which is essential for sustaining growth and profitability.

The Consolidated Condensed Statements of Earnings provide insights into the company's profitability. For the thirteen weeks ended December 29, 2007, net sales reached $1,052,557,000, a substantial increase compared to the previous year. The cost of sales was reported at $954,923,000, indicating effective cost management strategies. Operating income of $22,469,000 reflects the company's operational efficiency. The report also highlights net earnings of $6,170,000, showcasing the company's ability to generate profit after accounting for expenses and taxes. The increase in comprehensive earnings, which includes unrealized holding gains on investments, further emphasizes the company's financial strength. This analysis is crucial for investors assessing the company's performance and future growth potential.

The Consolidated Condensed Statements of Cash Flows provide a detailed view of cash movements within Unified Western Grocers, Inc. The cash flows from operating activities indicate a net cash utilized of $19,296,000, which raises concerns about cash management. Adjustments for depreciation, accounts receivable, and inventories highlight the challenges faced in maintaining liquidity. The cash flows from investing activities show significant purchases of properties and securities, which are essential for long-term growth. Understanding these cash flow dynamics is vital for stakeholders, as it reflects the company's ability to fund operations, invest in growth opportunities, and return value to shareholders. Effective cash flow management is critical for sustaining operations and achieving strategic objectives.

The Prospectus Supplement and Quarterly Report for Unified Western Grocers, Inc. is a vital document that provides stakeholders with essential information regarding the company's financial health and operational performance. The detailed financial statements, earnings analysis, and cash flow insights offer a comprehensive view of the company's status. This document not only fulfills regulatory requirements but also serves as a tool for informed decision-making by investors. The emphasis on transparency and accuracy in reporting enhances the credibility of Unified Western Grocers, Inc. in the eyes of its stakeholders. Overall, this report is instrumental in guiding future investments and strategic planning.