-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, Pevg7T8Ydmt2V7X+sRQqI+LaPgoZQ+wtM7wxhUGDBOlAkjxB735ssSMc3DJx8Qgr DXTtB1y0mOHLVnT1WSyiBg== 0000103595-94-000014.txt : 19941220 0000103595-94-000014.hdr.sgml : 19941220 ACCESSION NUMBER: 0000103595-94-000014 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19941029 FILED AS OF DATE: 19941212 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: VILLAGE SUPER MARKET INC CENTRAL INDEX KEY: 0000103595 STANDARD INDUSTRIAL CLASSIFICATION: 5411 IRS NUMBER: 221576170 STATE OF INCORPORATION: NJ FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-02633 FILM NUMBER: 94564248 BUSINESS ADDRESS: STREET 1: 733 MOUNTAIN AVE CITY: SPRINGFIELD STATE: NJ ZIP: 07081 BUSINESS PHONE: 2014672200 MAIL ADDRESS: STREET 1: 733 MOUNTAIN AVE CITY: SPRINGFIELD STATE: NJ ZIP: 07081 10-Q 1 VILLAGE SUPER MARKET, INC. 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) [x] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 29, 1994 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 0-2633 VILLAGE SUPER MARKET, INC. - - -------------------------------------------------------------------- (Exact name of registrant as specified in its charter) NEW JERSEY 22-1576170 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 733 Mountain Avenue, Springfield, New Jersey 07081 (Address of principal executive offices) (Zip code) (201) 467-2200 Registrant's telephone number, including area code Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No__. Indicate the number of shares outstanding of the issuer's classes of common stock as of the latest practicable date.
December 6, 1994 Class A, Common Stock, No Par Value 1,315,800 Shares Class B, Common Stock, No Par Value 1,594,076 Shares
VILLAGE SUPER MARKET, INC. INDEX
Part I Page No. Financial Information Item 1. Financial Statements Consolidated Condensed Balance Sheets . . . . . . . . . . . . 3 Consolidated Condensed Statements of Income. . . . . . . . . . 4 Consolidated Condensed Statements of Cash Flows . . . . . . . 5 Notes to Consolidated Condensed Financial Statements . . . . . 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations . . . . . . . . . . . . . 7-8 Part II Other Information Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . 9 Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Exhibit 28 (a) . . . . . . . . . . . . . . . . . . . . . . . . 11
3 Part 1. FINANCIAL INFORMATION Item 1. FINANCIAL STATEMENTS VILLAGE SUPER MARKET, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (Dollars in Thousands)
October 29, July 30, 1994 1994 ASSETS Current assets Cash and cash equivalents $ 5,809 $ 7,246 Merchandise inventories 25,047 25,273 Patronage dividend receivable 4,160 2,783 Miscellaneous receivables 3,541 2,259 Prepaid expenses 632 580 Total current assets 39,189 38,141 Property, equipment and fixtures, net 71,315 71,414 Investment in related party 9,454 9,416 Goodwill, net 11,079 11,138 Other intangibles, net 2,982 3,045 Other assets 1,661 1,639 Total assets $135,680 $134,793
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current portion of long-term debt $ 5,096 $ 5,149 Accounts payable to related party 24,572 23,947 Accounts payable and accrued expenses 11,606 12,330 Deferred income taxes 815 815 Total current liabilities 42,089 42,241 Long-term debt, less current portion 37,889 36,933 Deferred income taxes 3,196 3,196 Shareholders' equity Class A common stock - no par value, issued 1,762,800 shares in 1994 and 1,758,800 shares in 1993 18,129 18,129 Class B common stock - no par value, issued & outstanding 1,594,076 shares in 1994 and 1,598,076 shares in 1993 1,035 1,035 Retained earnings 39,527 39,444 Less cost of treasury shares (447,000 shares) (6,185) (6,185) Total shareholders' equity 52,506 52,423 Total liabilities and shareholders' equity $135,680 $134,793
See accompanying notes to consolidated condensed financial statements. 4 VILLAGE SUPER MARKET, INC. CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Dollars in Thousands Except Per Share Amounts)
13 Weeks Ended 12 Weeks Ended October 29, 1994 October 23, 1993 Sales $ 167,366 $ 158,745 Cost of sales 126,740 119,805 Gross Margin 40,626 38,940 Operating and administrative expense 37,363 35,714 Depreciation and amortization expense 2,109 2,188 Operating income 1,154 1,038 Interest expense (net) 1,021 930 Loss on disposal of assets -- (81) Income before provision for income taxes and cumulative effect of accounting change 133 27 Provision for income taxes 50 11 Income before cumulative effect of accounting change 83 16 Cumulative effect of change in accounting for income taxes -- 400 Net income $ 83 $ 416 Net income per share: Weighted average number of common shares outstanding 2,909,876 2,909,876 Income before cumulative effect of accounting change $ .03 $ -- Cumulative effect accounting change $ -- $ .14 Net income $ .03 $ .14
See accompanying notes to consolidated condensed financial statements. 5 VILLAGE SUPER MARKET, INC. CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (Dollars in Thousands)
13 Weeks Ended 12 Weeks Ended October 29,1994 October 23,1993 CASH FLOWS FROM OPERATING ACTIVITIES Net Income $ 83 $ 416 Adjustments to reconcile net income to net cash provided (used) by operating activities: Cumulative effect of accounting change -- (400) Depreciation and amortization 2,109 2,188 Provision to value inventories at LIFO 175 100 Loss on disposal of assets -- 81 Changes in assets and liabilities: (Increase) decrease in inventory 51 (2,040) (Increase) in patronage dividend receivable (1,377) (713) (Increase) decrease in misc. receivables (1,282) 885 (Increase) in prepaid expenses ( 52) ( 1) (Increase) decrease in other assets ( 22) 697 Increase (decrease) in accounts payable to related party 625 ( 11) (Decrease) in accounts payable and accrued expenses (724) (3,184) (Decrease) in income taxes payable -- (265) Net cash used by operating activities ( 414) (2,247) CASH FLOW FROM INVESTING ACTIVITIES Capital expenditures (1,888) (1,391) Proceeds from sale of assets -- 358 Investment in related party ( 38) ( 69) Net cash used by investing activities (1,926) (1,102) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of long-term debt 4,100 4,100 Principal payments of long-term debt (3,197) (5,418) Net cash provided (used) by financing activities 903 (1,318) NET (DECREASE) IN CASH AND CASH EQUIVALENTS (1,437) (4,667) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 7,246 6,619 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 5,809 $ 1,952
See accompanying notes to consolidated condensed financial statements. 6 VILLAGE SUPER MARKET, INC. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS 1. In the opinion of the Company, the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of normal and recurring accruals) necessary to present fairly the financial position as of October 29,1994 and July 30, 1994 and the results of operations and cash flows for the periods ended October 29, 1994 and October 23, 1993. The significant accounting policies followed by the Company are set forth in Note 1 to the Company's financial statements in the July 30, 1994 Village Super Market, Inc. Annual Report. Effective August 1, 1993, the Company adopted FASB Statement NO. 109, "Accounting for Income Taxes." Under Statement 109, the liability method is used in accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates in effect. As permitted by Statement 109, the Company elected not to restate the financial statements of any prior years. There was no effect of the change in accounting on pretax income for the periods presented. The cumulative effect of the change increased net income by $400,000 ($.14 per share) in the quarter ended October 23, 1993. 2. The results of operations for the period ended October 29, 1994 are not necessarily indicative of the results to be expected for the full year. 3. At both October 29, 1994 and July 30, 1994 approximately 68% of merchandise inventories are valued by the LIFO method while the balance is valued by FIFO. If the FIFO method had been used for the entire inventory, inventories would have been $6,643,000 and $6,468,000 higher than reported at October 29, 1994 and July 30, 1994, respectively. 7 Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CON RESULTS OF OPERATIONS - - ----------------------------------------------------------------------------- RESULTS OF OPERATIONS Sales increased 5.4% to $167,366,000 in the first quarter of fiscal 1995. Sales increased due to the current years first quarter containing thirteen weeks compared to twelve weeks in the prior year. This increase was partially offset by stores closed since one year ago, including the closing of the Easton, Pennsylvania store in August 1994. Same store sales were flat in the quarter due to the continued sluggishness in the economy and the effects of new competitive entries. Gross margins as a percentage of sales decreased to 24.3% in the current quarter compared with 24.5% in the corresponding quarter one year ago. Gross margins declined due to high levels of sale item penetration and price competition in the marketplace. Operating and administrative expenses as a percentage of sales decreased to 22.3% from 22.5% in the prior year. This was due to decreased labor and promotional costs as part of the Company's effort to make its operations more efficient. Interest expense increased in fiscal 1995 due to higher rates and higher debt levels outstanding. LIQUIDITY AND FINANCIAL RESOURCES Current liabilities exceed current assets by $2,900,000 at October 29, 1994 compared to $4,100,000 at July 30, 1994. The current ratio increased to .93 at October 29, 1994 from .90 at July 30, 1994. During the quarter, debt payments of $3,197,000, capital expenditures of $1,888,000 and increases in non-cash working capital items were paid for by increased use of the revolving line of credit. As a result, the Company 8 increased the balance outstanding on its line of credit to $8,100,000 at October 29, 1994 from $4,000,000 at July 30, 1994. The majority of capital expenditures in the current quarter related to the remodel and expansion of the Stirling, Hillsborough and Chester stores. The Company has budgeted approximately $8,000,000 for capital expenditures this fiscal year. The Company expects to finance these expenditures through internally generated funds and borrowing under its credit facility. On October 29, 1994, the Company was in compliance with all provisions of its revolving/term loan agreement as amended on October 21, 1994. At October 29, 1994, the Company did not meet a cash flow to fixed charge coverage ratio contained in two other debt agreements with a different lender. This does not constitute an event of default. However, until this ratio is met or unless a waiver is obtained, the agreements prevent the Company from borrowing additional funds (other than the Company's revolving loan), declaring dividends and executing new leases. 9 PART II OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K 6(a) Exhibits: Exhibit 28(a) - Press Release dated December 8, 1994 6(b) Reports on form 8-K. None. 10 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Village Super Market, Inc. Registrant Date: December 8, 1994 /s/ Perry Sumas Perry Sumas (President) Date: December 8, 1994 /s/ Kevin R. Begley Kevin R. Begley (Chief Financial Officer) EX-28.A 2 PRESS RELEASE DATED 12/8/94 1 EXHIBIT 28 (a) VILLAGE SUPER MARKET, INC. REPORTS RESULTS FOR THE FIRST QUARTER ENDED OCTOBER 29, 1994 Springfield, N.J. - December 8, 1994 - Village Super Market, Inc. reported sales and net income for the quarter ended October 29, 1994, Perry Sumas, President, announced today. Net income was $83,000 in the first quarter of fiscal 1995 compared to income before the cumulative effect of an accounting change of $16,000 in the prior year. The prior year first quarter also included the cumulative effect of a change in the method of accounting for income taxes which increased net income by $400,000. First quarter sales increased 5.4% to $167,366,000. Sales increased due to the current quarter containing thirteen weeks compared to the prior year's twelve weeks. Partially offsetting this sales increase was the impact of stores closed since one year ago, including the closing of the Easton, Pennsylvania store in August 1994. Same store sales were flat in the current quarter due to the continued sluggish economy and the effects of competitive openings. Mr. Sumas commented that net income increased slightly as the Company was able to reduce operating expenses to offset a decline in gross margins. Gross margin percentages declined due to high levels of sale item penetration and increased price competition. Operating expenses declined due to more efficient use of labor and promotional costs. Village Super Market, Inc. owns and operates a chain of 23 supermarkets under the ShopRite name in New Jersey and Eastern Pennsylvania. The following table summarizes Village's results for the quarter ended October 29, 1994.
13 Weeks Ended 12 Weeks Ended October 29, 1994 October 23, 1993 Sales $167,366,000 $158,745,000 Income before cumulative effect of accounting change $ 83,000 $ 16,000 Cumulative effect of accounting change $ --- $ 400,000 Net Income $ 83,000 $ 416,000 Net Income Per Share: Income before cumulative effect of accounting change $ .03 $ -- Cumulative effect of accounting change $ -- $ .14 Net Income $ .03 $ .14
EX-27 3 ARTICLE 5 FIN. DATA SCHEDULE FOR 1ST QTR 10-Q
5 1,000 JUL-29-1995 OCT-29-1994 3-MOS 5809 0 3541 0 25047 39189 129614 58299 135680 42089 37889 0 0 19164 33342 135680 167366 167366 126740 126740 39472 0 1021 133 50 83 0 0 0 83 .03 .03
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