-----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, Lj6j+i3s9GbOQ7NU6G0I/3g2o7QL/Xlji4mIADvp4pWoXpuvgvPDV9UKbGRbpZm8 JiuNRxtBk0eLR+6ZqczuTg== 0000103595-97-000002.txt : 19970304 0000103595-97-000002.hdr.sgml : 19970304 ACCESSION NUMBER: 0000103595-97-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970125 FILED AS OF DATE: 19970303 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: 97549455 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: January 25, 1997 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 (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:
February 25,1997 Class A Common Stock, No Par Value 1,315,800 Shares Class B Common Stock, No Par Value 1,594,076 Shares
The Registrant was not involved in bankruptcy proceedings during the preceding five years or any time prior thereto. 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. 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 Exhibit 28(b) . . . . . . . . . . . . . . . . . . . . 12 PART I - FINANCIAL INFORMATION Item 1. Financial Statements
VILLAGE SUPER MARKET, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (Dollars in Thousands) January 25, July 27, 1997 1996 ASSETS Current assets Cash and cash equivalents $ 5,027 $ 3,244 Merchandise inventories 23,974 25,118 Patronage dividend receivable 514 2,483 Miscellaneous receivables 3,861 2,947 Prepaid expenses 606 616 Total current assets 33,982 34,408 Property, equipment and fixtures, net 71,214 71,356 Investment in related party 10,289 10,174 Goodwill, net 10,488 10,605 Other intangibles, net 2,411 2,538 Other assets 1,988 1,981 TOTAL ASSETS $130,372 $131,062
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current portion of long-term debt $ 4,296 $ 5,038 Accounts payable to related party 28,101 24,616 Accounts payable and accrued expenses 15,937 15,196 Deferred income taxes 443 443 Total current liabilities 48,777 45,293 Long-term debt, less current portion 21,696 26,814 Deferred income taxes 3,948 3,948 Shareholders' equity Class A common stock - no par value, issued 1,762,800 shares (including 447,000 in treasury) 18,129 18,129 Class B common stock - no par value, 1,594,076 shares issued & outstanding 1,035 1,035 Retained earnings 42,972 42,028 Less cost of treasury shares (6,185) (6,185) Total shareholders' equity 55,951 55,007 TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $130,372 $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 26 Weeks Ended 26 Weeks Ended Jan. 25, 1997 Jan. 27, 1996 Jan. 25, 1997 Jan. 27, 1996 Sales $ 177,598 $ 178,002 $ 346,797 $ 344,524 Cost of sales 133,678 134,311 261,018 259,798 Gross margin 43,920 43,691 85,779 84,726 Operating and admin. expenses 40,131 39,649 78,799 77,395 Depreciation and amortization expense 1,865 2,073 3,688 4,146 Operating income 1,924 1,969 3,292 3,185 Interest expense, net 824 966 1,719 1,951 Gain on disposal of assets --- 952 --- 952 Income before provision for income taxes 1,100 1,955 1,573 2,186 Provision for income tax expense 440 761 629 853 Net Income $ 660 $ 1,194 $ 944 $ 1,333 Weighted average number of common shares out- standing 2,909,876 2,909,876 2,909,876 2,909,876 Net income per share $ .23 $ .41 $ .32 $ .46
See accompanying Notes to Consolidated Condensed Financial Statements.
VILLAGE SUPER MARKET, INC. CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (Dollars in Thousands) 26 Weeks Ended 26 Weeks Ended January 25, 1997 January 27, 1996 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 944 $ 1,333 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 3,688 4,146 Deferred taxes --- 360 Provision to value inventories at LIFO 300 300 (Gain) on disposal of assets --- ( 952) Changes in assets and liabilities: (Increase) decrease in inventory 844 (1,052) Decrease in patronage dividend receivable 1,969 1,600 (Increase) in misc. receivables ( 914) ( 72) Decrease in prepaid expenses 10 53 (Increase) in other assets ( 7) ( 45) Increase in accounts payable to related party 3,485 4,288 Increase in accounts payable and accrued expenses 714 1,314 Net cash provided by operating activities 11,060 11,273 CASH FLOW FROM INVESTING ACTIVITIES: Capital expenditures (3,797) (2,921) Investment in related party ( 115) ( 237) Proceeds from sale of assets, net --- 1,238 Net cash used by investing activities (3,912) (1,920) CASH FLOW FROM FINANCING ACTIVITIES: Proceeds from issuance of long-term debt 2,500 ---- Principal payments of long-term debt (7,865) (10,785) Net cash used by financing activities (5,365) (10,785) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,783 (1,432) CASH AND CASH EQUIVALENTS, BEGINNING PERIOD 3,244 9,655 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 5,027 $ 8,223
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 January 25, 1997 and July 27, 1996 and the results of operations and cash flows for the periods ended January 25, 1997 and January 27, 1996. The significant accounting policies followed by the Company are set forth in Note 1 to the Company's financial statements in the July 27, 1996 Village Super Market, Inc. Annual Report. 2. The results of operations for the period ended January 25, 1997 are not necessarily indicative of the results to be expected for the full year. 3. At both January 25, 1997 and July 27, 1996 approximately 66% of the 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 $7,586,000 and $7,286,000 higher than reported at January 25, 1997 and July 27, 1996, respectively. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Sales in the second quarter of fiscal 1997 were $177,598,000 compared with sales of $178,002,000 in the second quarter of the prior year. Same store sales increased 1% in the second quarter, reflecting improved sales in remodeled stores partially offset by sales declines in those stores effected by competitive openings. Sales for the six month period were $346,797,000 compared with $344,524,000 in the prior year. Same stores sales increased 1.3% in the six month period. A store in Florham Park, New Jersey was closed on October 26, 1996. Gross margin as a percentage of sales for the quarter and six months ended January 25, 1997 increased to 24.7% in both periods compared with 24.5% and 24.6%, respectively, in the corresponding prior year periods. These improvements in gross margin are primarily due to an improved mix of sales in higher margin departments. Operating and administrative expenses as a percentage of sales for the quarter and six months increased to 22.6% and 22.7%, respectively, compared with 22.3% and 22.5%, respectively, in the corresponding prior year periods. These increases were primarily due to higher advertising, coupon and credit card processing 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. The prior year second quarter included a $952,000 gain from selling a property in Maplewood, New Jersey. Depreciation expense declined in the quarter and six month period due to substantial assets purchased ten years ago becoming fully depreciated. Interest expense declined in the quarter and six month periods due to lower average debt levels outstanding in the current fiscal year. LIQUIDITY AND FINANCIAL RESOURCES Current liabilities exceeded current assets by $14,795,000 at January 25, 1997 as compared to $10,885,000 at July 27, 1996. The current ratio decreased to .70 at January 25, 1997 compared to .76 at July 27, 1996. During the six month period, cash provided by operating activities of $11,060,000 and additional long-term borrowings of $2,500,000 were used to make principal payments on long-term debt in the amount of $7,865,000 and to fund $3,797,000 of capital expenditures. The majority of capital expenditures in the six month period related to the completion of the expansion and remodel of the Absecon store and the start of the expansion and remodels of the Chester and Stroudsburg stores. At January 25, 1997 there was no borrowing outstanding on the Company's $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 January 25, 1997. PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K 6(a) Exhibits Exhibit 28(a) - Press Release dated February 28, 1997. Exhibit 28(b) - First Quarter Report to Shareholders dated December 11, 1996. 6(b) Reports on Form 8-K. None 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: February 28, 1997 /s/ Perry Sumas____________ Perry Sumas (President) Date: February 28, 1997 /s/ Kevin R. Begley_________ Kevin R. Begley (Chief Financial Officer) Exhibit 28(a) VILLAGE SUPER MARKET, INC. REPORTS RESULTS FOR THE QUARTER AND SIX MONTHS ENDED JANUARY 25,1997 Springfield, New Jersey - February 28, 1997. Village Super Market, Inc. reported sales and net income for the second quarter and six months ended January 25, 1997, Perry Sumas, President announced today. Net income was $660,000 in the second quarter of fiscal 1997. Excluding a gain on the sale of an asset in the prior year, this represents an increase in net income of 6%. Sales in the second quarter were $177,598,000 compared with $178,002,000 in the second quarter of the prior year. Same store sales increased 1%. Net income improved in the quarter due to the same store sales increase, improved gross margins 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. Partially offsetting these improvements are higher operating costs, primarily due to increased advertising and coupon expense. For the six month period, sales were $346,797,000 compared with $344,524,000 in the prior year. Same store sales increased 1.3% in the six month period. Net income for the six month period was $944,000, an increase of 24% from the prior year, excluding the gain on the sale of an asset in the prior year. The following table summarizes Village's results for the quarter and six months ended January 25, 1997:
January 25, 1997 January 27, 1996 13 Weeks Ended Sales $177,598,000 $178,002,000 Net Income $ 660,000 $ 1,194,000 Net Income Per Share $ .23 $ .41 26 Weeks Ended Sales $346,797,000 $344,524,000 Net Income $ 944,000 $ 1,333,000 Net Income Per Share $ .32 $ .46
Exhibit 28(b) * * F * To Our Shareholders: * I * The Company had net income of $284,000 in the first quarter * ended October 26, 1996, an increase of 104% over the prior year. R * * Sales in the first quarter were $169,200,000. This represents S * a 1.6% same store sales increase. Sales improved in stores * which were recently remodeled and in most stores not affected T * 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 Q * current quarter compared with 24.6% in the prior year. This * improvement in gross margin is primarily due to an improved mix U * of sales in higher margin departments. * A * Operating and administrative expenses as a percentage of sales * increased to 22.8% from 22.7% in the prior year. This increase R * was primarily due to higher advertising, coupon and credit card * processing costs. These increases were partially offset by a T * decline in payroll costs. * E * Net income improved due to the 1.6% same store sales increase, * the improved gross margin and lower depreciation and interest R * costs. These improvements were somewhat offset by costs associated * with closing an underfacilitated store in Florham Park, New Jersey * on October 26, 1996. * R * The Company recently completed the expansion and remodel of the * Absecon store. Three additional stores will be expanded and E * remodeled during fiscal 1997. * P * The table on the next page summarizes Village's results for the * quarter ended October 26, 1996. O * * Respectfully, R * * T * Perry Sumas James Sumas * President Chairman of the Board * * December 11, 1996
INCOME STATEMENT DATA 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
BALANCE SHEET COMPARISONS October 26, 1996 July 26, 1996 Current Assets $ 36,027,000 $ 34,408,000 Current Liabilities $ 45,829,000 $ 45,293,000 Net Working Capital (Deficit) $ (9,802,000) $(10,855,000) Long-Term Debt $ 27,763,000 $ 26,814,000 Stockholders' Equity $ 55,291,000 $ 55,007,000
EX-27 2
5 1000 6-MOS JUL-27-1996 JAN-25-1997 5027 0 3861 0 23974 33982 141386 71214 130372 48777 21696 0 0 19164 40735 130372 346797 346797 261018 261018 82487 0 1719 1573 629 944 0 0 0 944 .32 .32
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