-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, eGXf/rfuPOwIMyF7+KakPZ/2D6qq4ggWEye43d2f9mJW/fYtuY7Zj55Nps3Ddq8m cya2j76ENqpcC4EbqjwhVg== 0000950144-94-001930.txt : 19941116 0000950144-94-001930.hdr.sgml : 19941116 ACCESSION NUMBER: 0000950144-94-001930 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940924 FILED AS OF DATE: 19941108 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUBLIX SUPER MARKETS INC CENTRAL INDEX KEY: 0000081061 STANDARD INDUSTRIAL CLASSIFICATION: 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: 94557983 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 SUPERMARKET FORM 10-Q SEPTEMBER 24, 1994 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 24, 1994 ------------------ 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 (813) 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 28, 1994 was 232,136,924. Page 1 of 11 pages 2 PART I. FINANCIAL INFORMATION Item 1. Financial Statements PUBLIX SUPER MARKETS, INC. CONDENSED BALANCE SHEETS (Amounts in Thousands) ASSETS
September 24, 1994 December 25, 1993 ------------------ ----------------- (Unaudited) Current Assets - - -------------- Cash and cash equivalents $ 166,442 $ 198,997 Short-term investments 75,408 59,763 Accounts receivable 39,533 44,377 Merchandise inventories 444,083 404,602 Deferred tax assets 28,083 25,299 Prepaid income taxes 7,366 - Prepaid expenses 3,561 1,731 ---------- ---------- Total Current Assets 764,476 734,769 ---------- ---------- Long-term investments 136,364 199,385 Investment in joint ventures 5,029 5,142 Other noncurrent assets 5,003 5,844 Property, plant and equipment 2,225,654 1,966,997 Accumulated depreciation (942,928) (857,822) ---------- ---------- Total Assets $2,193,598 $2,054,315 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities - - ------------------- Current installments of long-term debt $ 2,011 $ 2,010 Accounts payable 403,799 394,863 Accrued profit sharing and ESOT contribution 67,068 50,149 Accrued salaries and wages 51,977 39,362 Accrued self-insurance reserves 53,608 48,918 Federal and state income taxes - 8,253 Other 71,176 54,054 ---------- ---------- Total Current Liabilities 649,639 597,609 ---------- ---------- Long-term debt, excluding current installments 3,092 4,930 Deferred tax liabilities, net 67,840 63,409 Self-insurance reserves 57,695 50,534 Accrued postretirement benefit cost 27,730 26,465 Other noncurrent liabilities 840 3,359 Stockholders' Equity - - -------------------- Common stock of $1 par value. Authorized 300,000,000 shares: Issued 236,031,122 shares at September 24, 1994 and 238,157,384 shares at December 25, 1993 236,031 238,157 Additional paid-in capital 75,853 73,240 Reinvested earnings 1,147,343 1,020,565 ---------- ---------- 1,459,227 1,331,962 Less: 5,781,098 and 2,120,612 shares of common stock acquired from stockholders at September 24, 1994 and December 25, 1993, respectively, at cost 71,663 23,953 Unrealized loss on investment securities available for sale, net 802 - ---------- ---------- Total Stockholders' Equity 1,386,762 1,308,009 ---------- ---------- Total Liabilities and Stockholders' Equity $2,193,598 $2,054,315 ========== ==========
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 September 24, 1994 September 25, 1993 ------------------ ------------------ (Unaudited) Revenues - - -------- Sales $ 2,048,107 $ 1,768,996 Other income, net 12,548 17,740 ------------ ------------ Total revenues 2,060,655 1,786,736 ------------ ------------ Costs and expenses - - ------------------ Cost of merchandise sold, including store occupancy, warehousing and delivery expenses 1,588,222 1,381,310 Operating and administrative expenses 405,664 352,701 Interest expense 153 280 ------------ ------------ Total costs and expenses 1,994,039 1,734,291 ------------ ------------ Earnings before income tax expense 66,616 52,445 Income tax expense 24,790 21,362 ------------ ------------ Net earnings $ 41,826 $ 31,083 ============ ============ Weighted average number of common shares outstanding 229,883,034 235,078,214 ============ ============ Net earnings per common share $ .18 $ .13 ============ ============ Cash dividends per common share None None
See accompanying notes to condensed financial statements. -3- 4 PUBLIX SUPER MARKETS, INC. CONDENSED STATEMENTS OF EARNINGS (Amounts in thousands except per share amounts)
Nine Months Ended September 24, 1994 September 25, 1993 ------------------ ------------------ (Unaudited) Revenues - - -------- Sales $ 6,236,438 $ 5,506,201 Other income, net 58,124 57,390 ------------ ------------ Total revenues 6,294,562 5,563,591 ------------ ------------ Costs and expenses - - ------------------ Cost of merchandise sold, including store occupancy, warehousing and delivery expenses 4,834,021 4,297,533 Operating and administrative expenses 1,190,818 1,049,190 Interest expense 421 788 ------------ ------------ Total costs and expenses 6,025,260 5,347,511 ------------ ------------ Earnings before income tax expense and cumulative effect of changes in accounting principles 269,302 216,080 Income tax expense 99,853 80,077 ------------ ------------ Net earnings before cumulative effect of changes in accounting principles 169,449 136,003 Cumulative effect on prior years of changes in accounting principles - (3,494) ------------ ------------ Net earnings $ 169,449 $ 132,509 ============ ============ Weighted average number of common shares outstanding 231,373,770 236,148,789 ============ ============ Net earnings per common share before cumulative effect of changes in accounting principles $ .73 $ .57 Cumulative effect on prior years of changes in accounting principles - (.01) ------------ ------------ Net earnings per common share $ .73 $ .56 ============ ============ Cash dividends per common share $ .09 $ .08 ============ ============
See accompanying notes to condensed financial statements. -4- 5 PUBLIX SUPER MARKETS, INC. CONDENSED STATEMENTS OF CASH FLOWS (Amounts in Thousands)
Nine Months Ended September 24, 1994 September 25, 1993 ------------------ ------------------ (Unaudited) Cash Flows From Operating Activities - - ------------------------------------ Cash received from customers $6,279,966 $5,548,615 Cash paid to employees and suppliers (5,842,503) (5,165,189) Income taxes paid (113,321) (80,396) Payment for self-insured claims (53,374) (53,120) Other 19,439 8,564 ---------- ---------- Net Cash Provided by Operating Activities 290,207 258,474 ---------- ---------- Cash Flows From Investing Activities - - ------------------------------------ Payment for property, plant and equipment (274,470) (205,219) Payment for investment securities - (56,466) Payment for investment securities - held-to-maturity (14,735) - Payment for investment securities - available-for-sale (152,167) - Investment in joint venture, net 113 (584) Proceeds from sale of investment securities 1,518 Proceeds from sale of investment securities - held-to-maturity 16,527 - Proceeds from sale of investment securities - available-for-sale 208,567 - Other, net 2,118 878 ---------- ---------- Net Cash Used in Investing Activities (214,047) (259,873) ---------- ---------- Cash Flows From Financing Activities - - ------------------------------------ Payment of long-term debt (1,837) (1,458) Proceeds from sale of common stock 13,187 27,352 Payment for acquisition of common stock (99,283) (58,513) Dividends paid (20,782) (18,978) ---------- ---------- Net Cash Used in Financing Activities (108,715) (51,597) ---------- ---------- Net decrease in cash and cash equivalents (32,555) (52,996) Cash and cash equivalents at beginning of period 198,997 293,473 ---------- ---------- Cash and cash equivalents at end of period $ 166,442 $ 240,477 ========== ==========
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 nine months ended September 24, 1994 are not necessarily indicative of the results for the entire 1994 fiscal year. 3. In May 1993, the Financial Accounting Standards Board issued Statement of Financial Accounting Standard No. 115, Accounting for Certain Investments in Debt and Equity Securities. The Company adopted the provisions of the new Standard for investments held as of, or acquired after, the beginning of fiscal 1994. The cumulative effect of adopting the Standard as of the beginning of fiscal 1994 is not material. In accordance with the Standard, prior period financial statements have not been restated to reflect the change in accounting principle. Securities held-to-maturity and available-for-sale: Management determines the appropriate classification of debt securities at the time of purchase and reevaluates such designation as of each balance sheet date. Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are stated at cost, adjusted for amortization of premiums and accretion of discounts to maturity. This amortization and accretion is included in other income. Debt securities not classified as held-to-maturity and marketable equity securities are classified as available-for-sale. Available-for- sale securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in a separate component of stockholders' equity. The cost of debt securities in this category is adjusted for amortization of premiums and accretion of discounts to maturity. This amortization and accretion is included in other income. Realized gains and losses and declines in value judged to be other-than-temporary on available-for-sale securities are included in other income. The cost of securities sold is based on the specific identification method. Following is a summary of available-for-sale securities and held-to-maturity securities as of September 24, 1994:
Available-for-Sale Securities -------------------------------------------- Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value --------- ---------- ---------- --------- (Amounts in Thousands) Tax-free bonds $136,314 $ 37 $ 773 $135,578 Equity securities 26,189 572 1,142 25,619 -------- -------- --------- -------- $162,503 $ 609 $ 1,915 $161,197 ======== ======== ========= ========
Held-to-Maturity Securities -------------------------------------------- Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value --------- ---------- ---------- --------- (Amounts in Thousands) Tax-free bonds $ 50,505 $ 74 $ 379 $ 50,200 ======== ======== ========= ========
-6- 7 PUBLIX SUPER MARKETS, INC. For the nine month period ended September 24, 1994, the realized gains on sales of available-for-sale securities totaled $879,000 and the realized losses totaled $3,381,000. The net adjustment for unrealized losses on available-for-sale securities included as a separate component of stockholders' equity totaled $802,000. The amortized cost and estimated fair value of debt and marketable equity securities as of September 24, 1994, by expected maturity, are as follows:
Estimated Amortized Fair Cost Value --------- --------- (Amounts in Thousands) Available-for-Sale ------------------ Due in one year or less $ 54,536 $ 54,536 Due after one year through three years 49,493 49,240 Due after three years 32,285 31,802 -------- -------- 136,314 135,578 Equity securities 26,189 25,619 -------- -------- $162,503 $161,197 ======== ======== Held-to-Maturity ---------------- Due in one year or less $ 20,802 $ 20,776 Due after one year through three years 28,856 28,735 Due after three years 847 689 -------- -------- $ 50,505 $ 50,200 ======== ========
At September 24, 1994, the Company classified its one investment in common stock as a trading security. This investment had a cost of $198,000 and a fair value of $70,000. The unrealized loss on this investment is included in the statement of earnings as a reduction of other income. -7- 8 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 $290.2 million in the nine months ended September 24, 1994, as compared with $258.5 million in the nine months ended September 25, 1993. Cash and cash equivalents totaled $166.4 million as of September 24, 1994. Capital expenditures totaled $274.5 million in the nine months ended September 24, 1994. These expenditures were primarily incurred in connection with the opening of 36 new stores and the remodeling or enlarging of 13 stores which added 1.8 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. Capital expenditures in the nine months ended September 25, 1993, were approximately $205.2 million. These expenditures were primarily incurred in connection with the opening of 16 new stores and remodeling or enlarging of various existing stores. Also, significant expenditures were incurred in expanding the warehouse facilities in Deerfield Beach, Florida and purchasing land for the Atlanta Distribution Center. In addition, the Company closed four stores. The Company has budgeted approximately $125.5 million for the remainder of 1994 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 September 24, 1994, 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 24, 1994. 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 15.8% in the third quarter of 1994 to $2,048.1 million, an increase of $279.1 million compared to the same quarter in 1993. This represents an increase of $99.0 million or 5.6% in additional sales from stores that were open for all of both quarters (comparable stores) and additional sales of $180.1 million or 10.2% from the net impact of 49 stores opened and three stores closed since September 25, 1993, and four stores opened in the third quarter of 1993. Other income decreased $5.2 million or 29.3% in the third quarter of 1994 as compared to the same quarter in 1993. This decrease is primarily the result of losses on the sale of investments and fixed assets, and recording a reserve for environmental clean-up costs. -8- 9 PUBLIX SUPER MARKETS, INC. Sales increased 13.3% in the nine months ended September 24, 1994, to $6,236.4 million, an increase of $730.2 million over the nine months ended September 25, 1993. This reflects an increase of $284.6 million or 5.2% in sales from comparable stores and sales of $445.6 million or 8.1% from the net impact of 49 stores opened and three stores closed since September 25, 1993, and 16 stores opened and four stores closed in the first nine months of 1993. Other revenue increased $.7 million or 1.3% in the first nine months of 1994 as compared to the first nine months of 1993. This increase is the net result of the recognition of a gain on the settlement of claims for business interruption losses and property losses related to the extensive damage caused by Hurricane Andrew, increased rents received from shopping center tenants, and increased interest and dividend income. These gains were offset by losses on the sale of investments and fixed assets, and recording a reserve for environmental clean-up costs. Cost of merchandise sold, including store occupancy, warehousing and delivery expenses, as a percentage of sales, was approximately 77.5%, and 78.1% in the quarters ended September 24, 1994 and September 25, 1993, respectively. These cost of sales percentages were 77.5% and 78.0% for the nine months ended September 24, 1994 and September 25, 1993, respectively. During the nine months ended September 24, 1994, 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 19.9% for the quarters ended September 24, 1994 and September 25, 1993, respectively. The operating and administrative expenses, as a percentage of sales, were 19.1% in the nine months ended September 24, 1994 and September 25, 1993, respectively. The significant components of operating and administrative expenses are payroll costs, employee benefits and depreciation. New Accounting Standard The Company adopted Financial Accounting Standard No. 115, Accounting for Certain Investments in Debt and Equity Securities, in the first quarter of 1994. This Standard requires the reporting of certain securities at fair value except for those securities which the Company has the positive intent and ability to hold to maturity. The Company adopted the provisions of the new Standard for investments held as of, or acquired after, the beginning of fiscal 1994. The cumulative effect of adopting the Standard as of the beginning of fiscal 1994 is not material. In accordance with the Standard, prior period financial statements have not been restated to reflect the change in accounting principle. -9- 10 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 25, 1993, 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 6(a). Exhibits 27. Financial Data Schedule for the nine months ended September 24, 1994. Item 6(b). Reports on Form 8-K No reports on Form 8-K were filed during the three months ended September 24, 1994. -10- 11 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 4, 1994 /s/ S. Keith Billups ----------------------------------------- S. Keith Billups, Secretary Date: November 4, 1994 /s/ William H. Vass ----------------------------------------- William H. Vass, Executive Vice President and Chief Financial Officer (Principal Financial Officer) -11- 12 INDEX TO EXHIBITS Sequentially Exhibit Number Number Description Page - - ------ ----------- ------------ EX-27 Financial Data Schedule (For SEC use only) EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FORM THE FINANCIAL STATEMENT OF PUBLIX SUPER MARKETS, INC. FOR THE PERIOD END SEPTEMBER 24, 1994 AND IS QUALIGIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1000 U.S. Dollars 9-MOS DEC-31-1994 DEC-26-1993 SEP-24-1994 1 166,442 75,408 39,533 0 444,083 764,476 2,225,654 942,928 2,193,598 649,639 0 236,031 0 0 1,150,731 2,193,598 6,236,438 6,294,562 4,834,021 6,024,839 0 0 421 269,302 99,853 169,449 0 0 0 169,449 .73 .73
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