-----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, Vxy9Q+OhbRkcQUFMTNwygrQRBJnZNGJNzui21oalbODE6SCqfkEuE+TpMnvexUVL lLsHt6b/2UX5AbxRVgET/Q== 0000081061-97-000027.txt : 19970813 0000081061-97-000027.hdr.sgml : 19970813 ACCESSION NUMBER: 0000081061-97-000027 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970628 FILED AS OF DATE: 19970812 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUBLIX SUPER MARKETS INC CENTRAL INDEX KEY: 0000081061 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-GROCERY STORES [5411] IRS NUMBER: 590324412 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-00981 FILM NUMBER: 97656718 BUSINESS ADDRESS: STREET 1: PO BOX 407 CITY: LAKELAND STATE: FL ZIP: 33802-0407 BUSINESS PHONE: 9416887407 MAIL ADDRESS: STREET 2: P O BOX 407 CITY: LAKELAND STATE: FL ZIP: 33802 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended June 28, 1997 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from ____________ to ______________ Commission File Number 0-981 ----- PUBLIX SUPER MARKETS, INC. ---------------------------------------------------- (Exact name of Registrant as specified in its charter) Florida 59-0324412 - ------------------------------- ------------------------------------ (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 1936 George Jenkins Blvd. Lakeland, Florida 33815 - ---------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (941) 688-1188 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 ---------------- ------- The number of shares outstanding of the Registrant's common stock, $1.00 par value, as of August 1, 1997 was 219,158,329. Page 1 of 9 pages PART I. FINANCIAL INFORMATION Item 1. Financial Statements
PUBLIX SUPER MARKETS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts are in thousands, except share amounts) ASSETS June 28, 1997 December 28, 1996 ------------- ----------------- (Unaudited) Current Assets - -------------- Cash and cash equivalents $ 533,139 $ 457,405 Short-term investments 81,354 65,586 Trade receivables 54,728 61,221 Merchandise inventories 545,128 570,254 Deferred tax assets 70,690 71,027 Prepaid income taxes 13,111 --- Prepaid expenses 7,235 1,339 ---------- ---------- Total Current Assets 1,305,385 1,226,832 ---------- ---------- Long-term investments 233,325 172,486 Other noncurrent assets 8,478 11,491 Property, plant and equipment 2,635,552 2,728,466 Accumulated depreciation (1,079,685) (1,218,191) ---------- ---------- Total Assets $3,103,055 $2,921,084 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities - ------------------- Current installments of long-term debt $ 135 $ 130 Accounts payable 501,425 523,497 Accrued contributions to retirement plans 146,334 73,555 Accrued salaries and wages 66,329 47,115 Accrued self-insurance reserves 68,140 64,250 Accrued nonrecurring charge 80,438 89,000 Federal and state income taxes --- 21,036 Other 95,664 90,984 ---------- ---------- Total Current Liabilities 958,465 909,567 ---------- ---------- Long-term debt, excluding current installments 39 108 Deferred tax liabilities, net 109,064 100,127 Self-insurance reserves 76,573 73,336 Accrued postretirement benefit cost 40,020 37,295 Other noncurrent liabilities 43,865 49,472 Stockholders' Equity - -------------------- Common stock of $1 par value. Authorized 300,000,000 shares; issued 220,293,812 shares at June 28, 1997 and 219,942,912 shares at December 28, 1996 220,294 219,943 Additional paid-in capital 99,145 91,991 Reinvested earnings 1,580,302 1,437,902 1,899,741 1,749,836 Less treasury shares of 1,280,284 at June 28, 1997, at cost (27,227) --- Unrealized gain on investment securities available-for-sale, net 2,515 1,343 ---------- ---------- Total Stockholders' Equity 1,875,029 1,751,179 ---------- ---------- Total Liabilities and Stockholders' Equity $3,103,055 $2,921,084 ========== ==========
See accompanying notes to condensed consolidated financial statements. -2-
PUBLIX SUPER MARKETS, INC. CONDENSED CONSOLIDATAED STATEMENTS OF EARNINGS (Amounts are in thousands, except per share and share amounts) Three Months Ended June 28, 1997 June 29, 1996 ------------- ------------- (Unaudited) Revenues - -------- Sales $ 2,674,469 $ 2,525,535 Other income, net 28,337 24,177 ------------ ------------ Total revenues 2,702,806 2,549,712 ------------ ------------ Costs and expenses - ------------------ Cost of merchandise sold, including store occupancy, warehousing and delivery expenses 2,049,577 1,948,239 Operating and administrative expenses 540,581 489,314 Interest expense 3 58 ------------ ------------ Total costs and expenses 2,590,161 2,437,611 ------------ ------------ Earnings before income tax expense 112,645 112,101 Income tax expense 40,313 41,494 ------------ ------------ Net earnings $ 72,332 $ 70,607 ============ ============ Weighted average number of common shares outstanding 219,396,670 221,128,885 ============ ============ Net earnings per common share $ .33 $ .32 ============ ============ Cash dividends per common share $ .15 $ .13 ============ ============
See accompanying notes to condensed consolidated financial statements. -3-
PUBLIX SUPER MARKETS, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Amounts are in thousands, except per share and share amounts) Six Months Ended June 28, 1997 June 29, 1996 ------------- ------------- (Unaudited) Revenues - -------- Sales $ 5,588,531 $ 5,206,929 Other income, net 58,219 46,976 ------------ ------------ Total revenues 5,646,750 5,253,905 ------------ ------------ Costs and expenses - ------------------ Cost of merchandise sold, including store occupancy, warehousing and delivery expenses 4,281,309 4,032,543 Operating and administrative expenses 1,089,180 973,822 Interest expense 8 125 ------------ ------------ Total costs and expenses 5,370,497 5,006,490 ------------ ------------ Earnings before income tax expense 276,253 247,415 Income tax expense 100,718 92,295 ------------ ------------ Net earnings $ 175,535 $ 155,120 ============ ============ Weighted average number of common shares outstanding 219,651,708 223,139,011 ============ ============ Net earnings per common share $ .80 $ .70 ============ ============ Cash dividends per common share $ .15 $ .13 ============ ============
See accompanying notes to condensed consolidated financial statements. -4-
PUBLIX SUPER MARKETS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts are in thousands) Six Months Ended June 28, 1997 June 29, 1996 ------------- ------------- (Unaudited) Cash Flows From Operating Activities - ------------------------------------ Cash received from customers $5,632,878 $5,240,800 Cash paid to employees and suppliers (5,133,644) (4,712,449) Income taxes paid (126,326) (92,648) Payment for self-insured claims (54,296) (50,856) Other, net 18,125 10,570 ---------- ---------- Net Cash Provided by Operating Activities 336,737 395,417 ---------- ---------- Cash Flows From Investing Activities - ------------------------------------ Payment for property, plant and equipment (121,626) (105,402) Payment for investment securities - available-for-sale (268,402) (217,118) Proceeds from sale of investment securities - available-for-sale 192,610 189,454 Other, net (3,244) 2,754 ---------- ---------- Net Cash Used in Investing Activities (200,662) (130,312) ---------- ---------- Cash Flows From Financing Activities - ------------------------------------ Payment of long-term debt (64) (732) Proceeds from sale of common stock 31,929 16,948 Payment for acquisition of common stock (59,203) (127,132) Dividends paid (33,003) (29,184) ---------- ---------- Net Cash Used in Financing Activities (60,341) (140,100) ---------- ---------- Net increase in cash and cash equivalents 75,734 125,005 Cash and cash equivalents at beginning of year 457,405 276,700 ---------- ---------- Cash and cash equivalents at end of period $ 533,139 $ 401,705 ========== ==========
See accompanying notes to condensed consolidated financial statements. -5- PUBLIX SUPER MARKETS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. In the opinion of management, the accompanying condensed consolidated financial statements include all adjustments deemed necessary to fairly reflect the financial position, results of operations and changes in cash flows of the Company for the interim periods presented. These condensed consolidated financial statements should be read in conjunction with the fiscal 1996 Form 10-K Annual Report of the Company. 2. Due to the seasonal nature of the Company's business, the results for the three months and six months ended June 28, 1997 are not necessarily indicative of the results for the entire 1997 fiscal year. -6- PUBLIX SUPER MARKETS, INC. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources - ------------------------------- Operating activities continue to be the Company's primary source of liquidity. Net cash provided by operating activities was approximately $336.7 million in the six months ended June 28, 1997, as compared with $395.4 million in the six months ended June 29, 1996. Cash and cash equivalents totaled $533.1 million as of June 28, 1997. Capital expenditures totaled $121.6 million in the six months ended June 28, 1997. These expenditures were primarily incurred in connection with the opening of 15 new stores and the remodeling or enlarging of nine stores which added .60 million square feet. In addition, the Company closed one store. Capital expenditures in the six months ended June 29, 1996, were approximately $105.4 million. These expenditures were primarily incurred in connection with the opening of 14 new stores and the remodeling or enlarging of four stores which added .74 million square feet. In addition, the Company closed six stores. The Company has budgeted approximately $178.4 million for the remainder of 1997 for new store construction and the remodeling or enlarging of several existing stores. The capital budget is subject to continuing change and review. The remaining capital expenditures are expected to be financed by internally generated funds and current liquid assets. As of June 28, 1997 the Company has committed lines of credit for $100.0 million and one uncommitted line of credit for $25.0 million. These lines are reviewed annually by the banks. The interest rate for these lines is at or below the prime rate. No amounts were outstanding as of June 28, 1997. Cash generated in excess of the amount needed for current operations and capital expenditures is invested in short-term and long-term investments. Management believes the Company's liquidity will continue to be strong. Operating Results - ----------------- Sales increased 5.9% in the second quarter of 1997 to $2,674.5 million, an increase of $148.9 million compared to the same quarter in 1996. This represents an increase of $42.9 million or 1.7% additional sales from stores that were open for all of both quarters (comparable stores) and additional sales of $106.0 million or 4.2% from the net impact of new and closed stores since March 30, 1996. Other income increased $4.2 million or 17.2% in the second quarter of 1997 as compared to the same quarter in 1996. Sales increased 7.3% in the six months ended June 28, 1997, to $5,588.5 million, an increase of $381.6 million over the six months ended June 29, 1996. This reflects an increase of $168.9 million or 3.2% in sales from comparable stores and sales of $212.7 million or 4.1% from the net impact of new and closed stores since the beginning of 1996. Other income increased 23.9% in the first six months of 1997 as compared to the first six months of 1996. Cost of merchandise sold including store occupancy, warehousing and delivery expenses, as a percentage of sales, was approximately 76.6% and 77.1% in the quarters ended June 28, 1997 and June 29, 1996, respectively. These cost of sales percentages were 76.6% and 77.4% for the six months ended June 28, 1997 and June 29, 1996, respectively. The decreases in cost of merchandise sold, as a percentage of sales, are due to buying and merchandising efficiencies. -7- PUBLIX SUPER MARKETS, INC. Operating and administrative expenses, as a percentage of sales, were approximately 20.2% and 19.4% for the quarters ended June 28, 1997, and June 29, 1996, respectively. The operating and administrative expenses, as a percentage of sales, were 19.5% and 18.7% for the six months ended June 28, 1997 and June 29, 1996, respectively. The significant components of operating and administrative expenses are payroll costs, employee benefits and depreciation. PART II. OTHER INFORMATION Item 1. Legal Proceedings - -------------------------- In the Company's Form 10-K for the fiscal year ended December 28, 1996, the Company disclosed that on January 24, 1997, the Company, the plaintiffs in the Shores case and the Equal Employment Opportunity Commission (the "EEOC") entered into a settlement agreement (the "Shores Agreement") with respect to all matters related to the case. The Court approved the Shores Agreement and entered a Consent Decree incorporating its terms on May 23, 1997. Also, as reported in the Company's Form 10-Q for the quarterly period ended March 29, 1997, a purported class action was filed against the Company on April 3, 1997 in the Federal District Court for the Middle District of Florida, Tampa Division, Case No. 97-760-Civ-T-25E, by Lemuel Middleton and 15 other present or former employees of the Company, individually and on behalf of all other persons similarly situated. In their Complaint, the plaintiffs allege that the Company has and is currently engaged in a pattern and practice of race-based discriminatory treatment of black employees and applicants with respect to hiring, promotion, job assignment, conditions of employment, pay, discharge, and other employment aspects, all in violation of federal and state law. The plaintiffs seek, among other relief, a certification of the suit as a class action, declaratory and injunctive relief, back pay, front pay, benefits and other compensatory damages, and punitive damages. The Company denies the allegations of the Complaint and intends to vigorously defend the action. No material developments have occurred since the action was originally reported. Item 4. Results of Votes of Security Holders - --------------------------------------------- The Annual Meeting of Stockholders of the Company was held on May 13, 1997, for the purpose of electing a board of directors. Proxies for the meeting were solicited pursuant to Section 14(a) of the Securities Exchange Act of 1934 and there were no solicitations in opposition to management's solicitation. All of management's nominees for directors as listed in the proxy statement were elected. Item 6(a). Exhibits - -------------------- 27. Financial Data Schedule for the six months ended June 28, 1997. Item 6(b). Reports on Form 8-K - ------------------------------- The Company filed a report on Form 8-K dated April 8, 1997, reporting the legal proceeding disclosed in Part II, Item 1 above. -8- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed in its behalf by the undersigned thereunto duly authorized. PUBLIX SUPER MARKETS, INC. Date: August 8, 1997 /s/ S. Keith Billups --------------------------- S. Keith Billups, Secretary Date: August 8, 1997 /s/ David P. Phillips ----------------------------------- David P. Phillips, Vice President Finance and Treasurer (Principal Financial Officer) -9- EX-27 2 FINANCIAL DATA SCHEDULE
5 This schedule contains summary financial information extracted from the financial statements for the six months ended June 28, 1997, and is qualified in its entirety by reference to such financial statements. 1,000 US DOLLARS 6-MOS DEC-27-1997 DEC-29-1996 JUN-28-1997 1 533,139 81,354 54,728 0 545,128 1,305,385 2,635,552 (1,079,685) 3,103,055 958,465 39 0 0 220,294 1,654,735 3,103,055 5,588,531 5,646,750 4,281,309 5,370,489 0 0 8 276,253 100,718 175,535 0 0 0 175,535 .80 .80
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