-----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, aginiHSPQ9fuA5H+LiYA+IxzTVSi8oK3bAgpFyXhdODzNo5Yr3k8aLvuQ+UvuQPR uRQcr1M14qatIGHU3WDYmQ== 0000950144-94-000993.txt : 19940512 0000950144-94-000993.hdr.sgml : 19940512 ACCESSION NUMBER: 0000950144-94-000993 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940326 FILED AS OF DATE: 19940509 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: 94526746 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 FORM 10-Q PERIOD ENDED 3-26-94 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 26, 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 April 29, 1994 was 230,228,751. 2 PART I. FINANCIAL INFORMATION Item 1. Financial Statements PUBLIX SUPER MARKETS, INC. CONDENSED BALANCE SHEETS (Amounts in Thousands) ASSETS March 26, 1994 December 25, 1993 -------------- ----------------- (Unaudited) Current Assets - - -------------- Cash and cash equivalents $ 214,381 $ 198,997 Short-term investments 62,232 59,763 Accounts receivable 39,897 44,377 Merchandise inventories 415,817 404,602 Deferred tax assets 25,888 25,299 Prepaid expenses 7,466 1,731 ---------- ---------- Total Current Assets 765,681 734,769 ---------- ---------- Long-term investments 202,756 199,385 Investment in joint ventures 5,142 5,142 Other noncurrent assets 5,395 5,844 Property, plant and equipment 2,061,160 1,966,997 Accumulated depreciation (891,306) (857,822) ---------- ---------- Total Assets $2,148,828 $2,054,315 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities - - ------------------- Current installments of long-term debt $ 2,022 $ 2,010 Accounts payable 411,720 394,863 Accrued profit sharing and ESOT contribution 78,331 50,149 Accrued salaries and wages 37,988 39,362 Accrued self-insurance reserves 45,874 48,918 Federal and state income taxes 43,501 8,253 Other 52,334 54,054 ---------- ---------- Total Current Liabilities 671,770 597,609 ---------- ---------- Long-term debt, excluding current installments 4,365 4,930 Deferred tax liabilities, net 66,085 63,409 Self-insurance reserves 53,989 50,534 Accrued postretirement benefit cost 26,819 26,465 Other noncurrent liabilities 2,519 3,359 Stockholders' Equity - - -------------------- Common stock of $1 par value. Authorized 300,000,000 shares: Issued 236,031,122 shares at March 26, 1994 and 238,157,384 shares at December 25, 1993 236,031 238,157 Additional paid-in capital 73,240 73,240 Reinvested earnings 1,076,720 1,020,565 ---------- ---------- 1,385,991 1,331,962 Less: 5,222,927 and 2,120,612 shares of common stock acquired from stockholders at March 26, 1994 and December 25, 1993, respectively, at cost 62,228 23,953 Unrealized loss on investment securities available for sale, net 482 - ---------- ---------- Total Stockholders' Equity 1,323,281 1,308,009 ---------- ---------- Total Liabilities and Stockholders' Equity $2,148,828 $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 March 26, 1994 March 27, 1993 -------------- -------------- (Unaudited) Revenues - - -------- Sales $ 2,164,581 $ 1,942,289 Other income, net 27,269 21,676 ------------ ------------ Total revenues 2,191,850 1,963,965 ------------ ------------ Costs and expenses - - ------------------ Cost of merchandise sold including store occupancy, warehousing and delivery expenses 1,669,227 1,519,949 Operating and administrative expenses 397,609 350,643 Interest expense 113 222 ------------ ------------ Total costs and expenses 2,066,949 1,870,814 ------------ ------------ Earnings before income tax expense and cumulative effect of changes in accounting principles 124,901 93,151 Income tax expense 46,857 34,069 ------------ ------------ Net earnings before cumulative effect of changes in accounting principles 78,044 59,082 Cumulative effect on prior years of changes in accounting principles - (3,494) ------------ ------------ Net earnings $ 78,044 $ 55,588 ============ ============ Weighted average number of common shares outstanding 236,078,036 237,728,815 ============ ============ Net earnings per common share before cumulative effect of changes in accounting principles $ .33 $ .25 Cumulative effect on prior years of changes in accounting principles - (.02) ------------ ------------ Net earnings per common share $ .33 $ .23 ============ ============ Cash dividends per common share None None
See accompanying notes to condensed financial statements. -3- 4 PUBLIX SUPER MARKETS, INC. CONDENSED STATEMENTS OF CASH FLOWS (Amounts in Thousands) Three Months Ended March 26, 1994 March 27, 1993 -------------- -------------- (Unaudited) Cash Flows From Operating Activities - - ------------------------------------ Cash received from customers $2,180,350 $1,965,918 Cash paid to employees and suppliers (1,991,452) (1,802,789) Income taxes paid (9,219) (4,459) Payment for self-insured claims (16,871) (16,735) Other 13,750 3,303 ---------- ---------- Net Cash Provided by Operating Activities 176,558 145,238 ---------- ---------- Cash Flows From Investing Activities - - ------------------------------------ Payment for property, plant and equipment (94,961) (66,106) Payment for investment securities - (3,439) Payment for investment securities - held-to-maturity (1,095) - Payment for investment securities - available-for-sale (37,658) - Proceeds from sale of investment securities 34,735 457 Other, net 648 1,826 ---------- ---------- Net Cash Used in Investing Activities (98,331) (67,262) ---------- ---------- Cash Flows From Financing Activities - - ------------------------------------ Payment of long-term debt (553) (495) Proceeds from sale of common stock 2,587 4,300 Payment for acquisition of common stock (64,877) (11,020) ---------- ---------- Net Cash Used in Financing Activities (62,843) (7,215) ---------- ---------- Net increase in cash and cash equivalents 15,384 70,761 Cash and cash equivalents at beginning of quarter 198,997 293,473 ---------- ---------- Cash and cash equivalents at end of quarter $ 214,381 $ 364,234 ========== ========== See accompanying notes to condensed financial statements. -4- 5 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. 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. Such amortization 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. Such amortization 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 March 26, 1994: Available-for-Sale Securities ------------------------------------------- Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value -------- ---------- ---------- --------- (Amounts In Thousands) Tax-free bonds $178,304 $ 468 $1,865 $176,907 Equity securities 30,336 1,663 1,051 30,948 -------- ------ ------ -------- $208,640 $2,131 $2,916 $207,855 ======== ====== ====== ======== Held-to-Maturity Securities ------------------------------------------- Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value -------- ---------- ---------- --------- (Amounts In Thousands) Tax-free bonds $ 57,048 $ 75 $ 164 $ 56,959 ======== ====== ====== ======== -5- 6 The realized gains on sales of available-for-sale securities totaled $215,000 and the realized losses totaled $71,000. The net adjustment to unrealized losses on available-for-sale securities included as a separate component of stockholders' equity totaled $785,000. The amortized cost and estimated fair value of debt and marketable equity securities as of March 26, 1994, by expected maturity, are as follows: Estimated Amortized Fair Cost Value -------- --------- (Amounts In Thousands) Available-for-Sale ------------------ Due in one year or less $ 37,225 $ 37,235 Due after one year through three years 68,722 68,766 Due after three years 72,357 70,906 -------- -------- 178,304 176,907 Equity securities 30,336 30,948 -------- -------- $208,640 $207,855 ======== ======== Held-to-Maturity ---------------- Due in one year or less $ 24,912 $ 24,914 Due after one year through three years 30,818 30,684 Due after three years 1,318 1,361 -------- -------- $ 57,048 $ 56,959 ======== ======== At March 26, 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 $85,000. The unrealized loss on this investment is included in the statement of earnings. -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 $176.6 million in the quarter ended March 26, 1994, as compared with $145.2 million in the quarter ended March 27, 1993. Cash and cash equivalents totaled $214.4 million as of March 26, 1994. Capital expenditures totaled $95.0 million in the quarter ended March 26, 1994. These expenditures were primarily incurred in connection with the opening of ten new stores and the remodeling or enlarging of three stores which added .49 million square feet. Significant expenditures were incurred in the continued construction of a new general merchandise warehouse in Lakeland, Florida and a new distribution center in Lawrenceville, Georgia. In addition, the Company closed one store. Capital expenditures in the quarter ended March 27, 1993, were approximately $66.1 million. These expenditures were primarily incurred in connection with the opening of eight new stores and remodeling or enlarging of three stores which added .45 million square feet. Also, significant expenditures were incurred in expanding the warehouse facilities in Deerfield Beach, Florida. In addition, the Company closed two stores. The Company has budgeted approximately $305.0 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 March 26, 1994, the Company has committed lines of credit for $75.0 million. In April 1994, the Company added an additional $50.0 million line of credit. 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 March 26, 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 11.4% in the first quarter of 1994 to $2,164.6 million, an increase of $222.3 million compared to the same quarter in 1993. This represents an increase of $99.1 million or 5.1% in additional sales from stores that were open for all of both quarters (comparable stores) and additional sales of $123.2 million or 6.3% from the net impact of 31 stores opened and three stores closed since March 27, 1993, and eight stores opened and two stores closed in the first quarter of 1993. Other income increased $5.6 million or 25.8% in the first quarter of 1994 as compared to the same quarter in 1993. This increase is the result of the recognition of a $5.6 million gain on the settlement of claims for business interruption losses and property losses related to the extensive damage caused by Hurricane Andrew. Cost of merchandise sold including store occupancy, warehousing and delivery expenses, as a percentage of sales, was approximately 77.1% in the quarter ended March 26, 1994, and 78.3% in the quarter ended March 27, 1993. The decrease in cost of merchandise sold is due to buying and merchandising efficiencies. Operating and administrative expenses, as a percentage of sales, were approximately 18.4% and 18.1% for the quarters ended March 26, 1994 and March 27, 1993, respectively. The significant components of operating and administrative expenses are payroll costs, employee benefits and depreciation. -7- 8 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. 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 three months ended March 26, 1994. Item 6(b). Reports on Form 8-K No reports on Form 8-K were filed during the three months ended March 26, 1994. 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 6, 1994 /s/ S. Keith Billups -------------------------------------------- S. Keith Billups, Secretary Date: May 6, 1994 /s/ William H. Vass -------------------------------------------- William H. Vass, Executive Vice President and Chief Financial Officer (Principal Financial Officer) -8- EX-27 2 FINANCIAL DATA SCHEDULE PERIOD ENDED 3-26-94
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 26, 1994, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 3-MOS DEC-31-1994 MAR-26-1994 214,381 62,232 39,897 0 415,817 765,681 2,061,160 891,306 2,148,828 671,770 4,365 236,031 0 0 1,087,250 2,148,828 2,164,581 2,191,850 1,669,227 2,066,836 0 0 113 124,901 46,857 78,044 0 0 0 78,044 .33 .33
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