-----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, OzJ4OqgLbeVoEShTuw4rxFz7PPd0zMdOOPECvX8twYGabyQygHctDwKDQg2Fg4dO 8FuejS0z29ru+ngSmyqFUg== 0000081061-98-000015.txt : 19980513 0000081061-98-000015.hdr.sgml : 19980513 ACCESSION NUMBER: 0000081061-98-000015 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980328 FILED AS OF DATE: 19980512 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: 98616559 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 March 28, 1998 -------------- 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 incorporation or organization) No.) 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 May 1, 1998 was 218,288,916. Page 1 of 7 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 March 28, 1998 December 27, 1997 ---------------- ----------------- (Unaudited) Current Assets - -------------- Cash and cash equivalents $ 722,197 $ 530,018 Short-term investments 30,536 46,847 Trade receivables 60,440 71,318 Merchandise inventories 590,312 638,044 Deferred tax assets 68,312 66,402 Prepaid expenses 9,636 2,153 ---------- ---------- Total Current Assets 1,481,433 1,354,782 ---------- --------- Long-term investments 363,053 331,659 Other noncurrent assets 9,064 9,036 Property, plant and equipment 2,818,239 2,757,707 Accumulated depreciation (1,200,033) (1,158,204) ----------- ---------- Total Assets $3,471,756 $3,294,980 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities - ------------------- Accounts payable $ 531,628 $ 562,536 Accrued contribution to retirement plans 151,236 138,858 Accrued salaries and wages 55,198 47,367 Accrued self-insurance reserves 69,245 57,415 Accrued nonrecurring charge 68,313 69,249 Federal and state income taxes 67,980 15,583 Other 88,386 97,094 ---------- --------- Total Current Liabilities 1,031,986 988,102 ---------- --------- Deferred tax liabilities, net 116,245 114,807 Self-insurance reserves 83,932 90,068 Accrued postretirement benefit cost 44,209 42,612 Other noncurrent liabilities 37,187 40,092 Stockholders' Equity - -------------------------- Common stock of $1 par value. Authorized 300,000,000 shares; issued 218,501,633 shares at March 28, 1998 and 217,419,178 shares at December 27, 1997 218,502 217,419 Additional paid-in capital 178,167 100,757 Reinvested earnings 1,772,032 1,696,659 ---------- --------- 2,168,701 2,014,835 Less treasury shares of 547,360 at March 28, 1998, at cost (15,201) --- Accumulated other comprehensive earnings 4,697 4,464 ---------- -------- Total Stockholders' Equity 2,158,197 2,019,299 ------------- -------------- Total Liabilities and Stockholders' Equity $3,471,756 $3,294,980 ========== ==========
See accompanying notes to condensed consolidated financial statements. -2-
PUBLIX SUPER MARKETS, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Amounts are in thousands, except per share and share amounts) Three Months Ended March 28, 1998 March 29, 1997 ---------------- ---------------- (Unaudited) Revenues - -------- Sales $ 3,091,417 $ 2,914,062 Other income, net 32,377 29,884 ------------ -------------- Total revenues 3,123,794 2,943,946 ------------ -------------- Costs and expenses - -------------------------- Cost of merchandise sold, including store occupancy, warehousing and delivery expenses 2,323,499 2,231,732 Operating and administrative expenses 611,910 548,605 ---------- ---------- Total costs and expenses 2,935,409 2,780,337 ---------- ---------- Earnings before income tax expense 188,385 163,609 Income tax expense 69,387 60,406 ---------- ---------- Net earnings $ 118,998 $ 103,203 ============ =========== Weighted average number of common shares outstanding 217,598,625 219,906,746 ============ =========== Net earnings per common share $ .55 $ .47 ============ =========== Cash dividends per common share None None
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Amounts are in thousands) Three Months Ended March 28, 1998 March 29, 1997 ---------------- ---------------- (Unaudited) Net earnings $ 118,998 $ 103,203 Other comprehensive earnings - unrealized gain on investment securities available- for-sale, net of taxes of $147 and $296 in 1998 and 1997, respectively 233 472 ------------ -------------- Comprehensive earnings $ 119,231 $ 103,675 ============ ==============
See accompanying notes to condensed consolidated financial statements. -3-
PUBLIX SUPER MARKETS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts are in thousands) Three Months Ended March 28, 1998 March 29, 1997 ---------------- ---------------- (Unaudited) Cash Flows From Operating Activities - ------------------------------------ Cash received from customers $3,121,963 $2,938,629 Cash paid to employees and suppliers (2,793,738) (2,629,045) Income taxes paid (17,609) (13,429) Payment for self-insured claims (27,432) (25,530) Other, net 12,037 8,367 ----------- ----------- Net Cash Provided by Operating Activities 295,221 278,992 ---------- ----------- Cash Flows From Investing Activities - ------------------------------------ Payment for property, plant and equipment (65,952) (51,702) Payment for investment securities - available-for-sale (73,388) (127,922) Proceeds from sale of investment securities - available-for-sale 58,508 119,610 Other, net 2,069 (3,444) --------- ----------- Net Cash Used in Investing Activities (78,763) (63,458) ---------- ----------- Cash Flows From Financing Activities - ------------------------------------ Payment of long-term debt (131) (32) Proceeds from sale of common stock 19,839 16,671 Payment for acquisition of common stock (43,987) (30,188) ---------- ---------- Net Cash Used in Financing Activities (24,279) (13,549) ---------- ---------- Net increase in cash and cash equivalents 192,179 201,985 Cash and cash equivalents at beginning of quarter 530,018 457,405 --------- ---------- Cash and cash equivalents at end of quarter $ 722,197 $ 659,390 ========== ==========
See accompanying notes to condensed consolidated financial statements. -4- 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 1997 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 ended March 28, 1998 are not necessarily indicative of the results for the entire 1998 fiscal year. 3. Certain 1997 amounts have been reclassified to conform with the 1998 presentation. 4. In June 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standard No. 130, "Reporting Comprehensive Income," (SFAS 130) effective for fiscal years beginning after December 15, 1997. SFAS 130 sets forth standards for the reporting of comprehensive income (earnings) in the financial statements. Comprehensive earnings includes net earnings and other comprehensive earnings. Other comprehensive earnings includes revenues, expenses, gains and losses that have been excluded from net earnings and recorded directly in the stockholders' equity section of the balance sheet. Accumulated other comprehensive earnings consists of unrealized gains on investment securities available-for- sale. The following is a summary of the change in the balance of accumulated other comprehensive earnings as of March 28, 1998 (amounts are in thousands): Balance as of beginning of year $4,464 Current period change 233 ------ Balance as of March 28, 1998 $4,697 ======
-5- 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 $295.2 million in the quarter ended March 28, 1998, as compared with $279.0 million in the quarter ended March 29, 1997. Cash and cash equivalents totaled $722.2 million as of March 28, 1998. Capital expenditures totaled approximately $66.0 million in the quarter ended March 28, 1998. These expenditures were primarily incurred in connection with the opening of nine new stores and the remodeling or enlarging of nine stores which added .32 million square feet. In addition, the Company closed two stores. Capital expenditures totaled approximately $51.7 million in the quarter ended March 29, 1997. These expenditures were primarily incurred in connection with the opening of six new stores and the remodeling or enlarging of five stores which added .25 million square feet. In addition, the Company closed one store. The Company has budgeted approximately $234.0 million for the remainder of 1998 for new store construction and the remodeling or enlarging of 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 March 28, 1998, the Company has a committed line of credit for $50.0 million. This line is reviewed annually by the bank. The interest rate for this line is at or below the prime rate. No amounts were outstanding on the line of credit as of March 28, 1998. 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 6.1% in the first quarter of 1998 to $3,091.4 million, an increase of $177.4 million compared to the same quarter in 1997. This represents an increase of $64.1 million or 2.2% in sales from stores that were open for all of both quarters (comparable stores) and sales of $113.3 million or 3.9% from the net impact of new and closed stores since the beginning of the first quarter of 1997. Cost of merchandise sold including store occupancy, warehousing and delivery expenses, as a percentage of sales, was approximately 75.2% for the quarter ended March 28, 1998 and 76.6% for the quarter ended March 29, 1997. The decrease in cost of merchandise sold, as a percentage of sales, is due to buying and merchandising efficiencies. Operating and administrative expenses, as a percentage of sales, were approximately 19.8% and 18.8% for the quarters ended March 28, 1998 and March 29, 1997, respectively. The significant components of operating and administrative expenses are payroll costs, employee benefits and depreciation. -6- PUBLIX SUPER MARKETS, INC. PART II. OTHER INFORMATION Item 1. Legal Proceedings - -------------------------- In the Company's Form 10-K for the fiscal year ended December 27, 1997, the Company disclosed two purported class action suits. No material developments have occurred since the Form 10-K filing. Item 6. Exhibit and Report on Form 8-K - --------------------------------------- (a) Exhibit ---------- 27. Financial Data Schedule for the three months ended March 28, 1998. (b) Report on Form 8-K --------------------- No reports on Form 8-K were filed during the three months ended March 28, 1998. 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: May 8, 1998 /s/ S. Keith Billups --------------------------- S. Keith Billups, Secretary Date: May 8, 1998 /s/ David P. Phillips ----------------------------------- David P. Phillips, Vice President Finance and Treasurer (Principal Financial and Accounting Officer) -7- EX-27 2 FINANCIAL DATA SCHEDULE
5 This schedule contains summary financial information extracted from the financial statements for the three months ended March 28, 1998, and is qualified in its entirety by reference to such financial statements. 1,000 US DOLLARS 3-MOS DEC-26-1998 DEC-28-1997 JUN-28-1998 1 722,197 30,536 60,440 0 590,312 1,481,433 2,818,239 (1,200,033) 3,471,756 1,031,986 0 0 0 218,502 1,939,695 3,471,756 3,091,417 3,123,794 2,323,499 2,935,409 0 0 0 188,385 69,387 118,998 0 0 0 118,998 .55 .55
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