-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PvEuZdHcw9+lJVwsliDAexfOCCq0WwPIkBcyexcuvF7V5rKt7ba4X4F3uzq6M+ui Kd1EplUMiQEFDO/JBQITSQ== 0000103595-96-000008.txt : 19961205 0000103595-96-000008.hdr.sgml : 19961205 ACCESSION NUMBER: 0000103595-96-000008 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961026 FILED AS OF DATE: 19961204 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: VILLAGE SUPER MARKET INC CENTRAL INDEX KEY: 0000103595 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-GROCERY STORES [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: 96675569 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. SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) [x] QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended: October 26, 1996 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 of other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 733 MOUNTAIN AVENUE, SPRINGFIELD, NEW JERSEY 07081__ (Address of principal executive offices) (Zip Code) (201) 467-2200 _ (Registrants 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 issuers classes of common stock as of the latest practicable date:
December 2, 1996 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 Statement of Income . . . . . . 4 Consolidated Condensed Statements of Cash Flows . . . . 5 Notes to Consolidated Condensed Financial Statements. . 6 Item 2. Managements 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 PART I - FINANCIAL INFORMATION Item 1. Financial Statements
VILLAGE SUPER MARKET, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (Dollars in Thousands) October 26, July 27, 1996 1996 ASSETS Current assets Cash and cash equivalents $ 3,447 $ 3,244 Merchandise inventories 24,796 25,118 Patronage dividend receivable 3,405 2,483 Miscellaneous receivables 3,758 2,947 Prepaid expenses 621 616 Total current assets 36,027 34,408 Property, equipment and fixtures, net 71,546 71,356 Investment in related party 10,233 10,174 Goodwill, net 10,547 10,605 Other intangibles, net 2,474 2,538 Other assets 2,004 1,981 TOTAL ASSETS $132,831 $131,062
LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities Current portion of long-term debt $ 5,038 $ 5,038 Accounts payable to related party 25,175 24,616 Accounts payable and accrued expenses 15,173 15,196 Deferred income taxes 443 443 Total current liabilities 45,829 45,293 Long-term debt, less current portion 27,763 26,814 Deferred income taxes 3,948 3,948 Shareholders equity Class A common stock - no par value, issued 1,762,800 shares 18,129 18,129 Class B common stock - no par value, issued & outstanding 1,594,076 shares 1,035 1,035 Retained earnings 42,312 42,028 Less cost of treasury shares - (447,000 shares) (6,185) (6,185) Total shareholders equity 55,291 55,007 TOTAL LIABILITIES & SHAREHOLDERS EQUITY $132,831 $131,062
See accompanying Notes to Consolidated Condensed Financial Statements.
VILLAGE SUPER MARKET, INC. CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Dollars in Thousands Except Per Share Amounts) 13 Weeks Ended 13 Weeks Ended October 26, 1996 October 28, 1995 Sales $ 169,200 $ 166,522 Cost of sales 127,341 125,487 Gross margin 41,859 41,035 Operating and administrative expense 38,669 37,746 Depreciation and amortization expense 1,823 2,073 Operating income 1,367 1,216 Interest expense (net) 894 985 Income before provision for income taxes 473 231 Provision for income taxes 189 92 Net Income $ 284 $ 139 Weighted average number of common shares outstanding 2,909,87 2,909,876 Net income per share $ .10 $ .05
See accompanying Notes to Consolidated Condensed Financial Statements.
VILLAGE SUPER MARKET, INC. CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (Dollars in Thousands) 13 Weeks Ended 13 Weeks Ended October 26, 1996 October 28, 1995 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 284 $ 139 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 1,823 2,073 Provision to value inventories at LIFO 150 150 Changes in assets and liabilities: (Increase) decrease in inventory 172 ( 841) (Increase) in patronage dividend receivable ( 922) (1,313) (Increase) in misc. receivables ( 811) ( 51) (Increase) in prepaid expenses ( 5) ( 38) (Increase) in other assets ( 23) ( 22) Increase (decrease) in accounts payable to related party 559 (1,010) (Decrease) in accounts payable and accrued expenses ( 23) (1,976) Net cash provided (used) by operating activities 1,204 (2,889) CASH FLOW FROM INVESTING ACTIVITIES: Capital expenditures (1,891) (1,331) Investment in related party ( 59) ( 58) Net cash used by investing activities (1,950) (1,389) CASH FLOW FROM FINANCING ACTIVITIES: Proceeds from issuance of long-term debt 4,100 ---- Principal payments of long-term debt (3,151) (3,341) Net cash provided (used) by financing activities 949 (3,341) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 203 (7,619) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 3,244 9,655 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 3,447 $ 2,036
See accompanying Notes to Consolidated Financial Statements. 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 26, 1996 and July 27, 1996 and the results of operations and cash flows for the periods ended October 26, 1996 and October 28, 1995. The significant accounting policies followed by the Company are set forth in Note 1 to the Companys financial statements in the July 27, 1996 Village Super Market, Inc. Annual Report. 2. The results of operations for the period ended October 26, 1996 are not necessarily indicative of the results to be expected for the full year. 3. At both October 26, 1996 and July 27, 1996 approximately 66% 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 $7,436,000 and $7,286,000 higher than reported at October 26, 1996 and July 27, 1996 respectively. ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ___________________AND RESULTS OF OPERATIONS_______________ RESULTS OF OPERATIONS Sales in the first quarter were $169,200,000. As 23 stores were open in both years, this results in a 1.6% same store sales increase. Sales improved in stores which were recently remodeled and in most stores not affected by competitive openings. These improvements were somewhat offset by sales declines in three stores affected by competitive openings. Gross margin as a percentage of sales increased to 24.7% in the current quarter compared with 24.6% in the prior year. This improvement in gross margin is primarily due to an improved mix of sales in higher margin departments. Operating and administrative expenses as a percentage of sales increased to 22.8% from 22.7% in the prior year. This increase was primarily due to higher advertising, coupon and credit card processing costs. These increases were partially offset by a decline in payroll costs. On October 26, 1996, the Company closed an underfacilitated store in Florham Park, New Jersey. A loss of $350,000 was incurred in the first quarter from the operations and closing costs associated with this store. Depreciation expense declined to $1,823,000 in the current quarter from $2,073,000 in the prior year due to substantial assets purchased 10 years ago becoming fully depreciated. Interest expense declined due to lower average debt levels. LIQUIDITY AND FINANCIAL RESOURCES Current liabilities exceeded current assets by $9,802,000 at October 26, 1996 compared to $10,885,000 at July 27, 1996. The current ratio increased to .79 at October 26, 1996 compared to .76 at July 27, 1996. During the quarter, cash provided by operating activities of $1,204,000, additional long-term borrowings of $2,000,000 and increased use of credit facilities of $2,100,000 were used to make principal payments on long-term debt in the amount of $3,151,000 and to fund $1,891,000 of capital expenditures. The majority of capital expenditures in the quarter related to the completion of the expansion and remodel of the Absecon store. At October 26, 1996, $6,100,000 was outstanding on the Companys $12,000,000 line of credit. The Company is currently in the process of replacing this credit facility, which expires on March 31, 1997, with a larger facility. The Company was in full compliance with all terms and restrictive covenants of all debt agreements at October 26, 1996. PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K 6(a) Exhibits Exhibit 28(a) - Press Release dated December 3, 1996. 6(b) Reports on Form 8-K. None SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1034, 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 3, 1996 /s/ Perry Sumas Perry Sumas (President) Date: December 3, 1996 /s/ Kevin R. Begley Kevin R. Begley (Chief Financial Officer) EXHIBIT 28(a) VILLAGE SUPER MARKET, INC. REPORTS RESULTS FOR THE FIRST QUARTER ENDED OCTOBER 26, 1996 Springfield, New Jersey - December 3, 1996 - Village Super Market, Inc. reported sales and net income for the first quarter ended October 26, 1996, Perry Sumas, President, announced today. Net income was $284,000 in the first quarter of fiscal 1997, an increase of 104% from the prior year. Sales for the first quarter were $169,200,000, an increase of 1.6% from the prior year. Net income improved due to the 1.6% same store sales increase, an improved gross margin and lower depreciation and interest costs. Same store sales increased due to the positive impact of remodeled stores exceeding reduced sales from stores that faced new competitors. Gross margins increased primarily as a result of improved product mix. These improvements in net income were somewhat offset by an operating loss and costs associated with closing an underfacilitated store in Florham Park, New Jersey on October 26, 1996. Village Super Market, Inc. currently operates 22 supermarkets under the ShopRite name in New Jersey and eastern Pennsylvania. The following table summarizes Villages results for the quarter ended October 26, 1996:
13 Weeks Ended 13 Weeks Ended October 26, 1996 October 28, 1995 Sales $169,200,000 $166,522,000 Net Income $ 284,000 $ 139,000 Net Income Per Share $ .10 $ .05
EX-27 2
5 1,000 3-MOS JUL-27-1996 OCT-26-1996 3447 0 3758 0 24796 36027 140736 69190 132831 45829 27763 0 0 19164 36127 132831 169200 169200 127341 127341 40492 0 894 473 189 284 0 0 0 284 .10 .10
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