-----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, Fuk1U8Yg/vrOVbSgbwnfqNq/coshMVu8akBMqAVO9Y9QyHJ74fa9DD/by/ADj5my kuYCOMZU2YUJbsfAWtxF5g== 0000081061-97-000034.txt : 19971111 0000081061-97-000034.hdr.sgml : 19971111 ACCESSION NUMBER: 0000081061-97-000034 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970927 FILED AS OF DATE: 19971110 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: SEC FILE NUMBER: 000-00981 FILM NUMBER: 97711900 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 September 27, 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 October 31, 1997 was 217,009,373. 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 September 27, 1997 December 28, 1996 ------------------ ----------------- (Unaudited) Current Assets - -------------- Cash and cash equivalents $ 524,397 $ 457,405 Short-term investments 105,150 65,586 Trade receivables 55,500 61,221 Merchandise inventories 563,662 570,254 Deferred tax assets 67,131 71,027 Prepaid income taxes 2,935 --- Prepaid expenses 4,817 1,339 ---------- ---------- Total Current Assets 1,323,592 1,226,832 ---------- ---------- Long-term investments 268,053 172,486 Other noncurrent assets 9,056 11,491 Property, plant and equipment 2,684,403 2,728,466 Accumulated depreciation (1,117,625) (1,218,191) ---------- ---------- Total Assets $3,167,479 $2,921,084 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities - ------------------- Current installments of long-term debt $ --- $ 130 Accounts payable 520,164 523,497 Accrued contributions to retirement plans 127,688 73,555 Accrued salaries and wages 76,945 47,115 Accrued self-insurance reserves 66,336 64,250 Accrued nonrecurring charge 72,660 89,000 Federal and state income taxes --- 21,036 Other 109,310 90,984 ---------- ---------- Total Current Liabilities 973,103 909,567 ---------- ---------- Long-term debt, excluding current installments --- 108 Deferred tax liabilities, net 109,129 100,127 Self-insurance reserves 79,567 73,336 Accrued postretirement benefit cost 41,173 37,295 Other noncurrent liabilities 41,804 49,472 Stockholders' Equity - -------------------- Common stock of $1 par value. Authorized 300,000,000 shares; issued 220,293,812 shares at September 27, 1997 and 219,942,912 shares at December 28, 1996 220,294 219,943 Additional paid-in capital 99,145 91,991 Reinvested earnings 1,649,667 1,437,902 ---------- ---------- 1,969,106 1,749,836 Less treasury shares of 2,262,012 at September 27, 1997, at cost (50,006) --- Unrealized gain on investment securities available-for-sale, net 3,603 1,343 ---------- ---------- Total Stockholders' Equity 1,922,703 1,751,179 ---------- ---------- Total Liabilities and Stockholders' Equity $3,167,479 $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 September 27, 1997 September 28, 1996 ------------------ ------------------ (Unaudited) Revenues - -------- Sales $ 2,710,522 $ 2,515,915 Other income, net 26,809 25,138 ------------ ------------ Total revenues 2,737,331 2,541,053 ------------ ------------ Costs and expenses - ------------------ Cost of merchandise sold, including store occupancy, warehousing and delivery expenses 2,067,928 1,921,211 Operating and administrative expenses 561,212 509,843 Interest expense 5 52 ------------ ------------ Total costs and expenses 2,629,145 2,431,106 ------------ ------------ Earnings before income tax expense 108,186 109,947 Income tax expense 38,836 40,787 Net earnings $ 69,350 $ 69,160 ============ ============ Weighted average number of common shares outstanding 218,740,721 219,377,612 ============ ============ Net earnings per common share $ .32 $ .32 ============ ============ Cash dividends per common share none none
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)
Nine Months Ended September 27, 1997 September 28, 1996 ------------------ ------------------ (Unaudited) Revenues - -------- Sales $ 8,299,068 $ 7,722,844 Other income, net 85,028 72,114 ------------ ------------ Total revenues 8,384,096 7,794,958 ------------ ------------ Costs and expenses - ------------------ Cost of merchandise sold, including store occupancy, warehousing and delivery expenses 6,349,237 5,953,754 Operating and administrative expenses 1,650,393 1,483,665 Interest expense 13 177 ------------ ------------ Total costs and expenses 7,999,643 7,437,596 ------------ ------------ Earnings before income tax expense 384,453 357,362 Income tax expense 139,554 133,082 ------------ ------------ Net earnings $ 244,899 $ 224,280 ============ ============ Weighted average number of common shares outstanding 219,348,046 221,885,211 ============ ============ Net earnings per common share $ 1.12 $ 1.01 ============ ============ 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)
Nine Months Ended September 27, 1997 September 28, 1996 ------------------ ------------------ (Unaudited) Cash Flows From Operating Activities - ------------------------------------ Cash received from customers $8,360,837 $7,768,719 Cash paid to employees and suppliers (7,690,641) (7,083,677) Income taxes paid (152,046) (129,602) Payment for self-insured claims (80,575) (76,913) Other, net 27,663 15,968 ---------- ---------- Net Cash Provided by Operating Activities 465,238 494,495 ---------- ---------- Cash Flows From Investing Activities - ------------------------------------ Payment for property, plant and equipment (183,808) (155,150) Payment for investment securities - available-for-sale (429,378) (328,573) Proceeds from sale of investment securities - available-for-sale 296,075 287,727 Other, net 2,159 4,093 ---------- ---------- Net Cash Used in Investing Activities (314,952) (191,903) ---------- ---------- Cash Flows From Financing Activities - ------------------------------------ Payment of long-term debt (238) (1,017) Proceeds from sale of common stock 48,364 26,677 Payment for acquisition of common stock (98,417) (153,464) Dividends paid (33,003) (29,184) ---------- ---------- Net Cash Used in Financing Activities (83,294) (156,988) ---------- ---------- Net increase in cash and cash equivalents 66,992 145,604 Cash and cash equivalents at beginning of period 457,405 276,700 ---------- ---------- Cash and cash equivalents at end of period $ 524,397 $ 422,304 ========== ===========
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 nine months ended September 27, 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 $465.2 million in the nine months ended September 27, 1997, as compared with $494.5 million in the nine months ended September 28, 1996. Cash and cash equivalents totaled $524.4 million as of September 27, 1997. Capital expenditures totaled $183.8 million in the nine months ended September 27, 1997. These expenditures were primarily incurred in connection with the opening of 25 new stores and the remodeling or enlarging of 15 stores which added .95 million square feet. In addition, the Company closed four stores. Capital expenditures in the nine months ended September 28, 1996, were approximately $155.1 million. These expenditures were primarily incurred in connection with the opening of 24 new stores and the remodeling or enlarging of seven stores which added .97 million square feet. In addition, the Company closed eight stores. The Company has budgeted approximately $116.2 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 September 27, 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 September 27, 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 7.7% in the third quarter of 1997 to $2,710.5 million, an increase of $194.6 million compared to the same quarter in 1996. This represents an increase of $78.4 million or 3.1% additional sales from stores that were open for all of both quarters (comparable stores) and additional sales of $116.2 million or 4.6% from the net impact of new and closed stores since June 28, 1996. Other income increased $1.7 million or 6.6% in the third quarter of 1997 as compared to the same quarter in 1996. Sales increased 7.5% in the nine months ended September 27, 1997, to $8,299.1 million, an increase of $576.2 million over the nine months ended September 28, 1996. This reflects an increase of $247.3 million or 3.2% in sales from comparable stores and sales of $328.9 million or 4.3% from the net impact of new and closed stores since the beginning of 1996. Other income increased $12.9 million or 17.9% in the first nine months of 1997 as compared to the first nine months of 1996. Cost of merchandise sold including store occupancy, warehousing and delivery expenses, as a percentage of sales, was approximately 76.3% and 76.4% in the quarters ended September 27, 1997 and September 28, 1996, respectively. These cost of sales percentages were 76.5% and 77.1% for the nine months ended September 27, 1997 and September 28, 1996, respectively. -7- PUBLIX SUPER MARKETS, INC. Operating and administrative expenses, as a percentage of sales, were approximately 20.7% and 20.3% for the quarters ended September 27, 1997, and September 28, 1996, respectively. The operating and administrative expenses, as a percentage of sales, were 19.9% and 19.2% for the nine months ended September 27, 1997 and September 28, 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. The plaintiffs filed their motion seeking certification of the class on October 30, 1997. No material developments have occurred since the action was originally reported. A purported class action was filed against the Company on November 6, 1997 in the Federal District Court for the Middle District of Florida, Tampa Division, Case No 97-2706-Civ-T-25E, by Shirley Dyer and five 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 policy and pattern or practice of gender-based discriminatory treatment of female employees and applicants in the Company's non-retail operations with respect to job assignments, promotional opportunities, management positions, equal pay, full-time status, and other benefits and conditions of employment, all in violation of federal and state law. The plaintiffs seek, among other relief, a certification of the suit as a proper class action, a declaratory judgment that the Company's practices are unlawful, back pay, front pay, benefits and other compensatory damages, exemplary and punitive damages, and injunctive relief. The Company denies the allegations of the Complaint and intends to vigorously defend the action. Item 6(a). Exhibits - -------------------- 27. Financial Data Schedule for the nine months ended September 27, 1997. Item 6(b). Reports on Form 8-K - ------------------------------- No reports on Form 8-K were filed during the three months ended September 27, 1997. -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: November 7, 1997 /s/ S. Keith Billups ----------------------------------------------- S. Keith Billups, Secretary Date: November 7, 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 nine months ended September 27,1997, and is qualified in its entirety by reference to such financial statements. 1,000 US DOLLARS 9-MOS DEC-27-1997 DEC-26-1996 SEP-27-1997 1 524,397 105,150 55,500 0 563,662 1,323,592 2,684,403 (1,117,625) 3,167,479 973,103 0 0 0 220,294 1,702,409 3,167,479 8,299,068 8,384,096 6,349,237 7,999,630 0 0 13 384,453 139,554 244,899 0 0 0 244,899 1.12 1.12
-----END PRIVACY-ENHANCED MESSAGE-----