NASH FINCH COMPANY AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(In thousands)

12 Weeks Ended

March 24,

March 26,

2012

2011

Operating activities:

Net earnings

$

5,454

7,481

Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:

Depreciation and amortization

8,204

8,583

Amortization of deferred financing costs

290

423

Non-cash convertible debt interest

1,390

1,292

Amortization of rebateable loans

1,155

1,204

Provision for (recovery of) bad debts

(279)

444

Provision for lease reserves

-

448

Deferred income tax expense

277

1,976

Loss (gain) on sale of property, plant and equipment

(476)

1,775

LIFO charge

182

501

Asset impairments

62

-

Share-based compensation

1,094

1,159

Deferred compensation

353

332

Other

(45)

(111)

Changes in operating assets and liabilities, net of effects of acquisitions:

Accounts and notes receivable

(2,556)

(5,687)

Inventories

(13,946)

5,098

Prepaid expenses

(1,721)

(688)

Accounts payable

(9,768)

(10,232)

Accrued expenses

(11,167)

(9,485)

Income taxes payable

2,699

732

Other assets and liabilities

(169)

369

Net cash provided by (used in) operating activities

(18,967)

5,614

Investing activities:

Disposal of property, plant and equipment

635

323

Additions to property, plant and equipment

(4,063)

(28,966)

Loans to customers

(1,560)

(519)

Payments from customers on loans

251

336

Corporate-owned life insurance, net

(178)

(153)

Other

(151)

-

Net cash used in investing activities

(5,066)

(28,979)

Financing activities:

Proceeds from revolving debt

18,600

22,600

Dividends paid

(2,198)

(2,180)

Payments of long-term debt

(765)

(16)

Payments of capitalized lease obligations

(571)

(574)

Increase in outstanding checks

9,396

3,457

Payments of deferred financing costs

(41)

-

Tax benefit from share-based compensation

66

-

Other

(527)

-

Net cash provided by financing activities

23,960

23,287

Net decrease in cash

(73)

(78)

Cash at beginning of period

773

830

Cash at end of period

$

700

752