SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark One)
[x] QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the quarterly period ended: October 26, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934.
Commission File No. 0-2633
VILLAGE SUPER MARKET, INC.
(Exact name of registrant as specified in its charter)
NEW JERSEY 22-1576170
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
733 MOUNTAIN AVENUE, SPRINGFIELD, NEW JERSEY 07081__
(Address of principal executive offices) (Zip Code)
(201) 467-2200 _
(Registrants telephone number, including area code)
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 ___
Indicate the number of shares outstanding of the issuers classes of
common stock as of the latest practicable date:
<TABLE>
<CAPTION>
December 2, 1996
<S> <C>
Class A Common Stock, No Par Value 1,315,800 Shares
Class B Common Stock, No Par Value 1,594,076 Shares
</TABLE>
VILLAGE SUPER MARKET, INC.
INDEX
PART I PAGE NO.
FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Condensed Balance Sheets . . . . . . . . . 3
Consolidated Condensed Statement of Income . . . . . . 4
Consolidated Condensed Statements of Cash Flows . . . . 5
Notes to Consolidated Condensed Financial Statements. . 6
Item 2. Managements Discussion and Analysis of Financial
Condition and Results of Operations . . . . . . . . 7-8
PART II
OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . 9
Signatures . . . . . . . . . . . . . . . . . . . . . . . 10
Exhibit 28(a) . . . . . . . . . . . . . . . . . . . . . 11
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<CAPTION>
VILLAGE SUPER MARKET, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in Thousands)
October 26, July 27,
1996 1996
ASSETS
<S> <C> <C>
Current assets
Cash and cash equivalents $ 3,447 $ 3,244
Merchandise inventories 24,796 25,118
Patronage dividend receivable 3,405 2,483
Miscellaneous receivables 3,758 2,947
Prepaid expenses 621 616
Total current assets 36,027 34,408
Property, equipment and fixtures, net 71,546 71,356
Investment in related party 10,233 10,174
Goodwill, net 10,547 10,605
Other intangibles, net 2,474 2,538
Other assets 2,004 1,981
TOTAL ASSETS $132,831 $131,062
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND SHAREHOLDERS EQUITY
<S> <C> <C>
Current liabilities
Current portion of long-term debt $ 5,038 $ 5,038
Accounts payable to related party 25,175 24,616
Accounts payable and accrued expenses 15,173 15,196
Deferred income taxes 443 443
Total current liabilities 45,829 45,293
Long-term debt, less current portion 27,763 26,814
Deferred income taxes 3,948 3,948
Shareholders equity
Class A common stock - no par value,
issued 1,762,800 shares 18,129 18,129
Class B common stock - no par value,
issued & outstanding 1,594,076 shares 1,035 1,035
Retained earnings 42,312 42,028
Less cost of treasury shares - (447,000 shares) (6,185) (6,185)
Total shareholders equity 55,291 55,007
TOTAL LIABILITIES & SHAREHOLDERS EQUITY $132,831 $131,062
</TABLE>
See accompanying Notes to Consolidated Condensed Financial Statements.
<TABLE>
<CAPTION>
VILLAGE SUPER MARKET, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars in Thousands Except Per Share Amounts)
13 Weeks Ended 13 Weeks Ended
October 26, 1996 October 28, 1995
<S> <C> <C>
Sales $ 169,200 $ 166,522
Cost of sales 127,341 125,487
Gross margin 41,859 41,035
Operating and administrative
expense 38,669 37,746
Depreciation and amortization
expense 1,823 2,073
Operating income 1,367 1,216
Interest expense (net) 894 985
Income before provision for
income taxes 473 231
Provision for income taxes 189 92
Net Income $ 284 $ 139
Weighted average number of
common shares outstanding 2,909,87 2,909,876
Net income per share $ .10 $ .05
</TABLE>
See accompanying Notes to Consolidated Condensed Financial Statements.
<TABLE>
<CAPTION>
VILLAGE SUPER MARKET, INC.
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(Dollars in Thousands)
13 Weeks Ended 13 Weeks Ended
October 26, 1996 October 28, 1995
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 284 $ 139
Adjustments to reconcile net income
to net cash provided (used) by
operating activities:
Depreciation and amortization 1,823 2,073
Provision to value inventories at LIFO 150 150
Changes in assets and liabilities:
(Increase) decrease in inventory 172 ( 841)
(Increase) in patronage dividend
receivable ( 922) (1,313)
(Increase) in misc. receivables ( 811) ( 51)
(Increase) in prepaid expenses ( 5) ( 38)
(Increase) in other assets ( 23) ( 22)
Increase (decrease) in accounts
payable to related party 559 (1,010)
(Decrease) in accounts payable and
accrued expenses ( 23) (1,976)
Net cash provided (used) by operating
activities 1,204 (2,889)
CASH FLOW FROM INVESTING ACTIVITIES:
Capital expenditures (1,891) (1,331)
Investment in related party ( 59) ( 58)
Net cash used by investing activities (1,950) (1,389)
CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt 4,100 ----
Principal payments of long-term debt (3,151) (3,341)
Net cash provided (used) by financing
activities 949 (3,341)
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 203 (7,619)
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 3,244 9,655
CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 3,447 $ 2,036
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
VILLAGE SUPER MARKET, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
1. In the opinion of the Company, the accompanying
unaudited consolidated condensed financial statements contain all
adjustments (consisting of normal and recurring accruals)
necessary to present fairly the financial position as of
October 26, 1996 and July 27, 1996 and the results of operations
and cash flows for the periods ended October 26, 1996 and
October 28, 1995.
The significant accounting policies followed by the
Company are set forth in Note 1 to the Companys financial
statements in the July 27, 1996 Village Super Market, Inc. Annual
Report.
2. The results of operations for the period ended
October 26, 1996 are not necessarily indicative of the results to
be expected for the full year.
3. At both October 26, 1996 and July 27, 1996
approximately 66% of merchandise inventories are valued by the
LIFO method while the balance is valued by FIFO. If the FIFO
method had been used for the entire inventory, inventories would
have been $7,436,000 and $7,286,000 higher than reported at
October 26, 1996 and July 27, 1996 respectively.
ITEM 2.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
___________________AND RESULTS OF OPERATIONS_______________
RESULTS OF OPERATIONS
Sales in the first quarter were $169,200,000. As 23 stores
were open in both years, this results in a 1.6% same store sales
increase. Sales improved in stores which were recently remodeled
and in most stores not affected by competitive openings. These
improvements were somewhat offset by sales declines in three
stores affected by competitive openings.
Gross margin as a percentage of sales increased to 24.7% in
the current quarter compared with 24.6% in the prior year. This
improvement in gross margin is primarily due to an improved mix
of sales in higher margin departments.
Operating and administrative expenses as a percentage of
sales increased to 22.8% from 22.7% in the prior year. This
increase was primarily due to higher advertising, coupon and
credit card processing costs. These increases were partially
offset by a decline in payroll costs.
On October 26, 1996, the Company closed an underfacilitated
store in Florham Park, New Jersey. A loss of $350,000 was
incurred in the first quarter from the operations and closing
costs associated with this store.
Depreciation expense declined to $1,823,000 in the current
quarter from $2,073,000 in the prior year due to substantial
assets purchased 10 years ago becoming fully depreciated.
Interest expense declined due to lower average debt levels.
LIQUIDITY AND FINANCIAL RESOURCES
Current liabilities exceeded current assets by $9,802,000 at
October 26, 1996 compared to $10,885,000 at July 27, 1996. The
current ratio increased to .79 at October 26, 1996 compared to
.76 at July 27, 1996.
During the quarter, cash provided by operating activities of
$1,204,000, additional long-term borrowings of $2,000,000 and
increased use of credit facilities of $2,100,000 were used to
make principal payments on long-term debt in the amount of
$3,151,000 and to fund $1,891,000 of capital expenditures. The
majority of capital expenditures in the quarter related to the
completion of the expansion and remodel of the Absecon store.
At October 26, 1996, $6,100,000 was outstanding on the
Companys $12,000,000 line of credit. The Company is currently
in the process of replacing this credit facility, which expires
on March 31, 1997, with a larger facility. The Company was in
full compliance with all terms and restrictive covenants of all
debt agreements at October 26, 1996.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
6(a) Exhibits
Exhibit 28(a) - Press Release dated December 3, 1996.
6(b) Reports on Form 8-K.
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1034, the Registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
Village Super Market, Inc.
Registrant
Date: December 3, 1996 /s/ Perry Sumas
Perry Sumas
(President)
Date: December 3, 1996 /s/ Kevin R. Begley
Kevin R. Begley
(Chief Financial Officer)
EXHIBIT 28(a)
VILLAGE SUPER MARKET, INC.
REPORTS RESULTS FOR THE FIRST QUARTER ENDED OCTOBER 26, 1996
Springfield, New Jersey - December 3, 1996 - Village Super
Market, Inc. reported sales and net income for the first quarter
ended October 26, 1996, Perry Sumas, President, announced today.
Net income was $284,000 in the first quarter of fiscal 1997,
an increase of 104% from the prior year. Sales for the first
quarter were $169,200,000, an increase of 1.6% from the prior
year.
Net income improved due to the 1.6% same store sales
increase, an improved gross margin and lower depreciation and
interest costs. Same store sales increased due to the positive
impact of remodeled stores exceeding reduced sales from stores
that faced new competitors. Gross margins increased primarily as
a result of improved product mix.
These improvements in net income were somewhat offset by an
operating loss and costs associated with closing an
underfacilitated store in Florham Park, New Jersey on October 26,
1996. Village Super Market, Inc. currently operates 22
supermarkets under the ShopRite name in New Jersey and eastern
Pennsylvania.
The following table summarizes Villages results for the
quarter ended October 26, 1996:
<TABLE>
<CAPTION>
13 Weeks Ended 13 Weeks Ended
October 26, 1996 October 28, 1995
<S> <C> <C>
Sales $169,200,000 $166,522,000
Net Income $ 284,000 $ 139,000
Net Income Per Share $ .10 $ .05
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUL-27-1996
<PERIOD-END> OCT-26-1996
<CASH> 3447
<SECURITIES> 0
<RECEIVABLES> 3758
<ALLOWANCES> 0
<INVENTORY> 24796
<CURRENT-ASSETS> 36027
<PP&E> 140736
<DEPRECIATION> 69190
<TOTAL-ASSETS> 132831
<CURRENT-LIABILITIES> 45829
<BONDS> 27763
0
0
<COMMON> 19164
<OTHER-SE> 36127
<TOTAL-LIABILITY-AND-EQUITY> 132831
<SALES> 169200
<TOTAL-REVENUES> 169200
<CGS> 127341
<TOTAL-COSTS> 127341
<OTHER-EXPENSES> 40492
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 894
<INCOME-PRETAX> 473
<INCOME-TAX> 189
<INCOME-CONTINUING> 284
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 284
<EPS-PRIMARY> .10
<EPS-DILUTED> .10
</TABLE>
