0000081061-95-000006.txt : 19950816 0000081061-95-000006.hdr.sgml : 19950816 ACCESSION NUMBER: 0000081061-95-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950701 FILED AS OF DATE: 19950815 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: 95564200 BUSINESS ADDRESS: STREET 1: 1936 GEORGE JENKINS BLVD CITY: LAKELAND STATE: FL ZIP: 33801 BUSINESS PHONE: 8136881188 MAIL ADDRESS: STREET 2: P O BOX 407 CITY: LAKELAND STATE: FL ZIP: 33802 10-Q 1 PUBLIX SUPER MARKETS, INC. 2Q95 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 July 1, 1995 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 33801 --------------------------------------- ----------------------- (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 4, 1995 was 223,656,699. Page 1 of 9 pages 2 PART I. FINANCIAL INFORMATION Item 1. Financial Statements PUBLIX SUPER MARKETS, INC. CONDENSED BALANCE SHEETS (Amounts in thousands)
ASSETS July 1, 1995 December 31, 1994 ------------ ----------------- (Unaudited) Current Assets Cash and cash equivalents $ 210,600 $ 188,885 Short-term investments 87,001 77,217 Accounts receivable 46,524 40,849 Merchandise inventories 486,165 480,876 Deferred tax assets 37,547 28,320 Prepaid income taxes 2,153 --- Prepaid expenses 6,599 1,767 ---------- ---------- Total Current Assets 876,589 817,914 ---------- ---------- Long-term investments 121,160 124,494 Investment in joint ventures 4,928 5,036 Other noncurrent assets 4,422 5,149 Property, plant and equipment 2,418,978 2,321,960 Accumulated depreciation (1,020,665) (972,217) ---------- ---------- Total Assets $2,405,412 $2,302,336 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Current installments of long-term debt $ 1,600 $ 1,619 Accounts payable 450,788 434,647 Accrued profit-sharing and ESOT contribution 119,060 66,768 Accrued salaries and wages 51,974 44,028 Accrued self-insurance reserves 55,445 49,295 Federal and state income taxes --- 2,729 Other 71,275 58,857 ---------- ---------- Total Current Liabilities 750,142 657,943 ---------- ---------- Long-term debt, excluding current installments 2,213 3,031 Deferred tax liabilities, net 87,560 78,168 Self-insurance reserves 57,314 59,710 Accrued postretirement benefit cost 31,911 30,330 Stockholders' Equity Common stock of $1 par value. Authorized 300,000,000 shares; issued 231,585,497 shares at July 1, 1995 and December 31, 1994 231,585 231,585 Additional paid-in capital 78,421 78,421 Reinvested earnings 1,274,745 1,165,128 ---------- ---------- 1,584,751 1,475,134 Less: 7,676,951 shares of common stock acquired from stockholders at July 1, 1995, at cost (108,665) --- Unrealized gain (loss) on investment securities available-for-sale, net 186 (1,980) ---------- ---------- Total Stockholders' Equity 1,476,272 1,473,154 ---------- ---------- Total Liabilities and Stockholders' Equity $2,405,412 $2,302,336 ========== ==========
See accompanying notes to condensed financial statements. -2- 3 PUBLIX SUPER MARKETS, INC. CONDENSED STATEMENTS OF EARNINGS (Amounts in thousands except per share amounts)
Three Months Ended July 1, 1995 June 25, 1994 ------------ ------------- (Unaudited) Revenues -------- Sales $2,250,309 $2,023,749 Other income, net 18,522 18,307 ---------- ---------- Total revenues 2,268,831 2,042,056 ---------- ---------- Costs and expenses ------------------ Cost of merchandise sold including store occupancy, warehousing and delivery expenses 1,724,026 1,575,027 Operating and administrative expenses 453,125 389,088 Interest expense 162 155 ---------- ---------- Total costs and expenses 2,177,313 1,964,270 ---------- ---------- Earnings before income tax expense 91,518 77,786 Income tax expense 33,870 28,207 ---------- ---------- Net earnings $ 57,648 $ 49,579 ========== ========== Weighted average number of common shares outstanding 225,862,841 230,169,674 =========== =========== Net earnings per common share $ .26 $ .22 ========== ========== Cash dividends per common share $ .11 $ .09 ========== ==========
See accompanying notes to condensed financial statements. -3- 4 PUBLIX SUPER MARKETS, INC. CONDENSED STATEMENTS OF EARNINGS (Amounts in thousands except per share amounts)
Six Months Ended July 1, 1995 June 25, 1994 ------------ ------------- (Unaudited) Revenues -------- Sales $4,644,938 $4,188,330 Other income, net 41,154 45,576 ---------- ---------- Total revenues 4,686,092 4,233,906 ---------- ---------- Costs and expenses ------------------ Cost of merchandise sold including store occupancy, warehousing and delivery expenses 3,560,733 3,245,798 Operating and administrative expenses 909,695 785,154 Interest expense 264 267 ---------- ---------- Total costs and expenses 4,470,692 4,031,219 ---------- ---------- Earnings before income tax expense 215,400 202,687 Income tax expense 80,533 75,063 ---------- ---------- Net earnings $ 134,867 $ 127,624 ========== ========== Weighted average number of common shares outstanding 228,069,227 232,119,138 =========== =========== Net earnings per common share $ .59 $ .55 ========== ========== Cash dividends per common share $ .11 $ .09 ========== ==========
See accompanying notes to condensed financial statements. -4- 5 PUBLIX SUPER MARKETS, INC. CONDENSED STATEMENTS OF CASH FLOWS (Amounts in thousands)
Six Months Ended July 1, 1995 June 25, 1994 ------------ ------------- (Unaudited) Cash Flows From Operating Activities ------------------------------------ Cash received from customers $4,671,222 $4,228,617 Cash paid to employees and suppliers (4,261,810) (3,913,434) Income taxes paid (86,610) (91,562) Payment for self-insured claims (47,477) (33,960) Other 7,581 17,136 ---------- ---------- Net Cash Provided by Operating Activities 282,906 206,797 ---------- ---------- Cash Flows From Investing Activities ------------------------------------ Payment for property, plant and equipment (125,445) (193,437) Payment for investment securities - held-to-maturity --- (5,937) Payment for investment securities - available-for-sale (143,361) (113,254) Proceeds from sale of investment securities - available-for-sale 139,685 122,454 Other, net 2,682 1,462 ---------- ---------- Net Cash Used in Investing Activities (126,439) (188,712) ---------- ---------- Cash Flows From Financing Activities ------------------------------------ Payment of long-term debt (837) (1,344) Proceeds from sale of common stock 14,919 8,597 Payment for acquisition of common stock (123,584) (84,356) Dividends paid (25,250) (20,782) ---------- ---------- Net Cash Used in Financing Activities (134,752) (97,885) ---------- ---------- Net increase (decrease) in cash and cash equivalents 21,715 (79,800) Cash and cash equivalents at beginning of period 188,885 198,997 ---------- ---------- Cash and cash equivalents at end of period $ 210,600 $ 119,197
See accompanying notes to condensed financial statements. -5- 6 PUBLIX SUPER MARKETS, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS 1. In the opinion of management, the accompanying 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. 2. Due to the seasonal nature of the Company's business, the results for the three months and six months ended July 1, 1995 are not necessarily indicative of the results for the entire 1995 fiscal year. 3. A purported class action was filed against the Company on July 19, 1995 in the Federal District Court for the Middle District of Florida, Tampa Division, Case No. 95-1162-Civ- T by Melodee Shores and seven 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 with respect to job assignments, promotional opportunities, management positions, equal pay, full-time status, bonuses, and other benefits and conditions of employment, all in violation of Title VII of the Federal Civil Rights Act, as well as the Florida Human Rights Act of 1977 and the Florida Civil Rights Act of 1992. 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 and other compensatory damages, exemplary and punitive damages, and injunctive relief against future improper conduct. The Company denies the allegations of the complaint and intends to vigorously defend the action. At this early stage, the likelihood of an adverse finding of the Company's liability and an estimate of the amount of any exposure for any such liability cannot be determined. -6- 7 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 $282.9 million in the six months ended July 1, 1995, as compared with $206.8 million in the six months ended June 25, 1994. Cash and cash equivalents totaled $210.6 million as of July 1, 1995. Capital expenditures totaled $125.4 million in the six months ended July 1, 1995. These expenditures were primarily incurred in connection with the opening of 21 new stores and the remodeling or enlarging of nine stores which added 1.1 million square feet. Significant expenditures were incurred in the continued construction of a new distribution center in Lawrenceville, Georgia. In addition, the Company closed three stores. Capital expenditures in the six months ended June 25, 1994, were approximately $193.4 million. These expenditures were primarily incurred in connection with the opening of 25 new stores and remodeling or enlarging of 11 stores which added 1.3 million square feet. Construction was completed on a new general merchandise warehouse in Lakeland, Florida and significant expenditures were incurred in the continued construction of a new distribution center in Lawrenceville, Georgia. In addition, the Company closed three stores. The Company has budgeted approximately $174.6 million for the remainder of 1995 for new store construction, the remodeling or expanding of several existing stores and the expansion and construction of distribution facilities. 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 July 1, 1995, 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 July 1, 1995. 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 11.2% in the second quarter of 1995 to $2,250.3 million, an increase of $226.6 million compared to the same quarter in 1994. This represents an increase of $48.5 million or 2.4% additional sales from stores that were open for all of both quarters (comparable stores) and additional sales of $178.1 million or 8.8% from the net impact of 46 stores opened and five stores closed since June 25, 1994, and 15 stores opened and two stores closed in the second quarter of 1994. Other income increased $.2 million or 1.2% in the second quarter of 1995 as compared to the same quarter in 1994. Sales increased 10.9% in the six months ended July 1, 1995, to $4,644.9 million, an increase of $456.6 million over the six months ended June 25, 1994. This reflects an increase of $108.9 million or 2.6% in sales from comparable stores and sales of $347.7 million or 8.3% from the net impact of 46 stores opened and five stores closed since June 25, 1994, and 25 stores opened and three stores closed in the first six months of 1994. Other revenue decreased $4.4 million or 9.7% in the first six months of 1995 as compared to the first six months of 1994. This decrease is the result of the recognition of a gain in 1994 on the settlement of claims for business interruption losses and property losses related to the extensive damage caused by Hurricane Andrew. -7- 8 PUBLIX SUPER MARKETS, INC. Cost of merchandise sold including store occupancy, warehousing and delivery expenses, as a percentage of sales, was approximately 76.6% and 77.8% in the quarters ended July 1, 1995 and June 25, 1994, respectively. These cost of sales percentages were 76.7% and 77.5% for the six months ended July 1, 1995 and June 25, 1994, respectively. The decreases in cost of merchandise sold, as a percentage of sales, are due to buying and merchandising efficiencies. Operating and administrative expenses, as a percentage of sales, were approximately 20.1% and 19.2% for the quarters ended July 1, 1995 and June 25, 1994, respectively. The operating and administrative expenses, as a percentage of sales, were 19.6% and 18.7% in the six months ended July 1, 1995 and June 25, 1994, respectively. The significant components of operating and administrative expenses are payroll costs, employee benefits and depreciation. PART II. OTHER INFORMATION Item 1(a). Legal Proceedings-EEOC In the Company's Form 10-K for the fiscal year ended December 31, 1994, the Company disclosed a legal proceeding with the Equal Employment Opportunity Commission (EEOC). No material developments have occurred since the Form 10-K filing. Item 1(b). Legal Proceedings-Purported Class Action A purported class action was filed against the Company on July 19, 1995 in the Federal District Court for the Middle District of Florida, Tampa Division, Case No. 95-1162-Civ-T by Melodee Shores and seven 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 with respect to job assignments, promotional opportunities, management positions, equal pay, full-time status, bonuses, and other benefits and conditions of employment, all in violation of Title VII of the Federal Civil Rights Act, as well as the Florida Human Rights Act of 1977 and the Florida Civil Rights Act of 1992. 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 and other compensatory damages, exemplary and punitive damages, and injunctive relief against future improper conduct. The Company denies the allegations of the complaint and intends to vigorously defend the action. Item 4. Results of Votes of Security Holders The Annual Meeting of Stockholders of the Company was held on May 16, 1995, for the purpose of fixing the number of and 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. The number of directors was fixed at ten and 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 July 1, 1995. Item 6(b). Reports on Form 8-K No reports on Form 8-K were filed during the three months ended July 1, 1995. However, the Company filed a report on Form 8-K dated July 21, 1995, reporting the legal proceeding disclosed in Part II, Item 1(b) above. -8- 9 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. PUBLIX SUPER MARKETS, INC. Date: August 11, 1995 /s/ S. Keith Billups ----------------------------------------- S. Keith Billups, Secretary Date: August 11, 1995 /s/ William H. Vass ----------------------------------------- William H. Vass, Executive Vice President and Chief Financial Officer (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 25, 1995, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 US DOLLARS 6-MOS DEC-30-1995 JAN-01-1995 JUL-01-1995 1 210,600 87,001 46,524 0 486,165 876,589 2,418,978 (1,020,665) 2,405,412 750,142 2,213 231,585 0 0 1,244,687 2,405,412 4,644,938 4,686,092 3,560,733 4,470,428 0 0 264 215,400 80,533 134,867 0 0 0 134,867 .59 .59