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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
---------------------
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended January 6, 1999
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 1-3657
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WINN-DIXIE STORES, INC.
(Exact name of registrant as specified in its charter)
Florida 59-0514290
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
5050 Edgewood Court, Jacksonville, Florida 32254-3699
(Address of principal executive offices) (Zip Code)
(904) 783-5000
(Registrant's telephone number, including area code)
Unchanged
(Former name, former address and former fiscal year,
if changed since last report)
---------------------
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 T No
As of January 20, 1999, there were 148,630,121 shares outstanding of the
registrant's common stock, $1 par value.
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<PAGE>
WINN-DIXIE STORES, INC.
AND SUBSIDIARIES
FORM 10-Q
TABLE OF CONTENTS
Part I: Financial Information
Page
Condensed Consolidated Statements of Earnings
(Unaudited), For the 16 and 28 Weeks Ended
January 6, 1999 and January 7, 1998 1
Condensed Consolidated Balance Sheets (Unaudited),
January 6, 1999 and June 24, 1998 2
Condensed Consolidated Statements of Cash Flows
(Unaudited), For the 28 Weeks Ended
January 6, 1999 and January 7, 1998 3
Notes to Condensed Consolidated Financial Statements
(Unaudited) 4-6
Management's Discussion and Analysis of Financial
Condition and Results of Operations 7-11
Part II: Other Information
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 12
Signatures 12
<PAGE>
WINN-DIXIE STORES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
Amounts in thousands except per share data
For the 16 Weeks Ended
--------------------------------------
MOST RECENT QUARTER Jan. 6, 1999 Jan. 7, 1998
----------------- -----------------
Net sales $ 4,264,207 4,150,243
Cost of sales 3,108,207 3,054,686
----------------- -----------------
Gross profit 1,156,000 1,095,557
Operating & administrative expenses 1,093,302 1,029,947
----------------- -----------------
Operating income 62,698 65,610
Cash discounts & other income 33,609 34,130
Interest expense (11,170) (9,935)
----------------- -----------------
Earnings before income taxes 85,137 89,805
Provision for income taxes 32,778 33,677
================= =================
Net earnings $ 52,359 56,128
================= =================
Basic earnings per share $ 0.35 0.38
================= =================
Diluted earnings per share $ 0.35 0.38
================= =================
Dividends per share $ 0.34 0.34
================= =================
FISCAL YEAR-TO-DATE For the 28 Weeks Ended
--------------------------------------
Jan. 6, 1999 Jan. 7, 1998
----------------- -----------------
Net sales $ 7,454,962 7,206,446
Cost of sales 5,457,687 5,288,066
----------------- -----------------
Gross profit 1,997,275 1,918,380
Operating & administrative expenses 1,929,249 1,795,923
----------------- -----------------
Operating income 68,026 122,457
Cash discounts & other income 60,061 60,379
Interest expense (19,292) (17,015)
----------------- -----------------
Earnings before income taxes 108,795 165,821
Provision for income taxes 41,886 62,183
================= =================
Net earnings $ 66,909 103,638
================= =================
Basic earnings per share $ 0.45 0.70
================= =================
Diluted earnings per share $ 0.45 0.70
================= =================
Dividends per share $ 0.51 0.51
================= =================
See accompanying notes to Condensed Consolidated Financial Statements.
Page 1
<PAGE>
WINN-DIXIE STORES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
Amounts in thousands
ASSETS Jan. 6, 1999 June 24, 1998
---------------- -----------------
Cash and cash equivalents $ 24,380 23,566
Trade and other receivables 196,526 146,166
Merchandise inventories less LIFO reserve of
$220,869 ($212,869 at June 24, 1998) 1,462,872 1,404,917
Prepaid expenses 136,093 161,141
---------------- ----------------
Total current assets 1,819,871 1,735,790
---------------- ----------------
Investments and other assets 134,590 140,450
Deferred income taxes 22,772 22,626
Net property, plant and equipment 1,199,396 1,169,848
---------------- ----------------
Total assets $ 3,176,629 3,068,714
================ ================
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $ 584,470 660,539
Short-term borrowings 482,351 420,000
Reserve for insurance claims and self-insurance 71,036 71,779
Accrued wages and salaries 114,016 107,590
Accrued rent 101,293 96,987
Accrued expenses 210,689 135,287
Current obligations under capital leases 3,017 2,908
Income taxes 42,679 12,119
---------------- ---------------
Total current liabilities 1,609,551 1,507,209
---------------- ---------------
Obligations under capital leases 47,193 48,580
Defined benefit plan 39,269 37,102
Reserve for insurance claims and self-insurance 92,814 93,514
Other liabilities 14,747 13,426
---------------- ---------------
Shareholders' equity:
Common stock 148,629 148,531
Retained earnings 1,221,112 1,217,592
Accumulated other comprehensive income 3,314 2,760
---------------- ---------------
Total shareholders' equity 1,373,055 1,368,883
---------------- ---------------
Total liabilities and shareholders'equity $ 3,176,629 3,068,714
================ ===============
See accompanying notes to Condensed Consolidated Financial Statements.
Page 2
<PAGE>
WINN-DIXIE STORES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Amounts in thousands
For the 28 Weeks Ended
----------------------------------------
FISCAL YEAR-TO-DATE Jan. 6, 1999 Jan. 7, 1998
----------------- ------------------
Cash flows from operating activities:
Net earnings $ 66,909 103,638
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization 164,842 174,911
Deferred income taxes 8,756 9,391
Defined benefit plan 2,167 2,040
Reserve for insurance claims
and self-insurance (1,443) 2,355
Stock compensation plans 3,136 3,809
Change in cash from:
Receivables (50,360) 49,781
Merchandise inventories (57,955) (106,486)
Prepaid expenses 24,484 22,825
Accounts payable (75,370) (16,411)
Income taxes 21,804 (26,106)
Other current accrued expenses 86,417 45,447
----------------- ------------------
Net cash provided by
operating activities 193,387 265,194
----------------- ------------------
Cash flows from investing activities:
Purchases of property, plant and
equipment, net (192,796) (183,681)
Decrease (increase) in investments
and other assets 5,594 (10,110)
----------------- ------------------
Net cash used in investing activities (187,202) (193,791)
----------------- ------------------
Cash flows from financing activities:
Increase in short-term borrowings 62,351 21,500
Payments on capital lease obligations (1,620) (1,526)
Purchase of common stock (128) (11,036)
Proceeds of sales under associates'
stock purchase plan 2,464 5,586
Dividends paid (75,588) (75,314)
Other 7,150 (1,296)
----------------- ------------------
Net cash used in financing activities (5,371) (62,086)
----------------- ------------------
Increase in cash and cash equivalents 814 9,317
Cash and cash equivalents at
beginning of year 23,566 14,116
----------------- ------------------
Cash and cash equivalents at
end of period $ 24,380 23,433
================= ==================
Supplemental cash flow information:
Interest paid $ 12,391 9,910
Interest and dividends received $ 440 496
Income taxes paid $ 11,742 78,924
================= ==================
See accompanying notes to Condensed Consolidated Financial Statements.
Page 3
<PAGE>
WINN-DIXIE STORES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(A) Basis of Presentation: Financial information reflects all adjustments,
which, in the opinion of management, are necessary to reflect the results
of operations and financial position for the quarters shown. These
condensed financial statements should be read in conjunction with the
fiscal 1998 Form 10-K Annual Report of the Company. The consolidated
financial statements include the accounts of Winn-Dixie Stores, Inc. and
its subsidiaries, which operate as a major food retailer in fourteen states
and the Bahama Islands.
(B) Change in Estimated Lives: During the second quarter of fiscal 1999, the
Company increased the estimated useful lives used to compute depreciation
for certain assets, principally store equipment (5 to 8 years) and
leaseholds (8 to 15 years). Store equipment and leaseholds associated with
larger, full-service store formats are expected to have a longer life
because of the types of equipment and the expected timing of store
remodels. In addition, the change results in useful lives more consistent
with the predominant industry practices for these types of assets. The
change has been accounted for as a change in estimate and resulted in an
increase in earnings before income tax of $18.0 million ($11.0 million
after tax, or $0.07 per diluted share) for the 16 weeks ended January 6,
1999.
(C) Impact of Franks and Sliced Luncheon Meat Recall: During the second quarter
of fiscal 1999, the Company voluntarily recalled certain franks and sliced
luncheon meats manufactured by its wholly-owned subsidiary, Dixie Packers,
Inc. As a result of this recall, sales and profits were negatively
impacted. The impact on earnings was approximately $10.5 million pre-tax
($6.4 million after tax, or $0.04 per diluted share.)
(D) Inventories: Merchandise inventories are stated at the lower of cost or
market, approximately 88% of which are valued under the LIFO method.
(E) LIFO: Results for the quarter, reflect a pre-tax LIFO inventory charge of
$4.0 million in fiscal 1999 and $5.0 million in fiscal 1998. The cumulative
current year LIFO charge is $8.0 million, as compared with $10.0 million in
fiscal 1998. If the FIFO method had been used, current quarter net earnings
would have been $54.8 million, or $0.37 per diluted share, as compared with
net earnings of $59.2 million, or $0.40 per diluted share in the previous
year. The cumulative current year net earnings would have been $71.8
million, or $0.48 per diluted share, as compared with $109.7 million, or
$0.74 per diluted share in the previous year.
Page 4
<PAGE>
WINN-DIXIE STORES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED) cont'd.
(F) Credit Arrangements: The Company has an authorized $500.0 million
commercial paper program and short-term lines of credit totaling $585.0
million. On January 6, 1999, there were $329.4 million in commercial paper
and $153.0 million from bank lines of credit outstanding, as compared to
$420.0 million in commercial paper and no amounts from bank lines of credit
outstanding on June 24, 1998.
(G) Income Taxes: The provision for income taxes reflects management's best
estimate of the effective tax rate expected for the fiscal year. The
effective tax rate for fiscal year 1999 is 38.5% as compared to 37.5% in
1998. The effective tax rate during fiscal 1999 and 1998 reflect a change
made by the Health Insurance Portability and Accountability Act of 1996
whereby certain deductions for interest relating to indebtedness with
respect to certain Corporate Owned Life Insurance (COLI) policies are being
phased out over a three-year period.
(H) Earnings Per Share: The following weighted average number of shares of
common stock was used in the calculation for earnings per share. The
diluted weighted average number of shares includes the net shares that
would be issued upon the exercise of stock options using the treasury stock
method.
1999 1998
-------- --------
Basic:
Quarter 148,285,782 148,575,291
Year-to-Date 148,307,729 148,643,103
Diluted:
Quarter 148,693,682 148,942,337
Year-to-Date 148,686,581 149,001,688
(I) Comprehensive Income: The Company adopted the provisions of Statement of
Financial Accounting Standards No. 130, "Reporting Comprehensive Income"
("SFAS 130"), effective June 25, 1998. SFAS 130 relates to the change in
the equity of a business during a reporting period from transactions of the
business. Comprehensive income for the quarters ended January 6, 1999 and
January 7, 1998 was approximately $54.9 million and $56.0 million,
respectively. Year-to-date, comprehensive income at January 6, 1999 and
January 7, 1998 was approximately $67.5 million and $102.8 million,
respectively. These amounts differ from net income due to changes in the
net unrealized holding gains (losses) generated from available-for-sale
securities.
Page 5
<PAGE>
WINN-DIXIE STORES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED) cont'd.
(J) New Accounting Pronouncements: In June 1997 and June 1998, the Financial
Accounting Standards Board ("FASB") issued Statement of Financial
Accounting Standards No. 131, "Disclosure about Segments of an Enterprise
and Related Information" ("SFAS 131") and Statement of Financial Accounting
Standards No. 133, "Accounting for Derivative Instruments and Hedging
Activities" ("SFAS 133"), respectively. SFAS 131 supersedes Statement of
Financial Accounting Standards No. 14 "Financial Reporting for Segments of
a Business Enterprise." SFAS 131 provides for the disclosure of financial
information desegregated by the way management organizes the segments of
the enterprise for making operating decisions. SFAS 133 establishes
accounting and reporting standards for derivative instruments, including
certain derivative instruments embedded in other contracts, and hedging
activities. The Company intends to adopt SFAS 131 in the fourth quarter of
this fiscal year and SFAS 133 in the first quarter of fiscal year 2000. The
Company is still determining how SFAS 131 and SFAS 133 will impact the
financial statements.
(K) Reclassification: Certain prior year amounts have been reclassified to
conform to the current year's presentation.
(L) Litigation: There are pending against the Company various claims and
lawsuits arising in the normal course of business, including suits charging
violations of certain civil rights laws and various proceedings arising
under federal, state or local regulations protecting the environment.
Among the suits charging violations of certain civil rights laws, there are
actions that purport to be class actions, and which allege sexual
harassment, retaliation and/or a pattern and practice of race-based and
gender-based discriminatory treatment of employees and applicants. The
plaintiffs seek, among other relief, certification of the suits as proper
class actions, declaratory judgment that the Company's practices are
unlawful, back pay, front pay, benefits and other compensatory damages,
punitive damages, injunctive relief and reimbursement of attorneys' fees
and costs. The Company is committed to full compliance with all applicable
civil rights laws. Consistent with this commitment, the Company has firm
and long-standing policies in place prohibiting discrimination and
harassment. The Company denies the allegations of the various complaints
and is vigorously defending the actions.
While the ultimate outcome of litigation cannot be predicted with
certainty, in the opinion of management the ultimate resolution of these
actions will not have a material adverse effect on the Company's financial
condition or results of operations.
Page 6
<PAGE>
WINN-DIXIE STORES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This analysis should be read in conjunction with the Condensed Consolidated
Financial Statements.
Results of Operations
Sales for the current quarter were $4.3 billion, a $114.0 million increase, or
2.7% over the comparable quarter ended January 7, 1998. Year-to-date, sales were
$7.5 billion, a $248.5 million, or 3.4% increase over the comparable period last
year. Average store sales increased 3.5% for the quarter and 4.3% year-to-date.
Identical store sales were flat for the quarter and increased 0.7% year-to-date.
For the 28 weeks ended January 6, 1999, the Company opened 43 new stores,
averaging 50,800 square feet, enlarged or remodeled 36 stores, and closed 32
older stores, averaging 33,500 square feet. As of January 6, 1999, retail space
totaled 50.9 million square feet. The Company has 1,179 stores in operation
compared with 1,185 stores for the same period last year. Of the 1,179 stores,
986, or 83.6%, are larger than 35,500 square feet. Currently, 51 new stores are
under construction. By the end of this fiscal year, the Company plans to open
approximately 84 new stores and enlarge or remodel 74 existing stores.
Gross profit increased $60.4 million for the quarter and $78.9 million,
year-to-date. As a percent to sales, gross profit for the current quarter was
27.1%, compared to 26.4% in the previous year. Year-to-date, gross profit as a
percent to sales was 26.8% in the current year, compared to 26.6% in the
previous year. Gross profit margins improved with the increase in the number of
larger stores, added service departments and improved pricing. In addition,
gross profit increased $1.3 million in the second quarter of fiscal 1999 due to
the change in depreciable lives as noted below. During the second quarter of
fiscal 1999, the Company voluntarily recalled certain franks and sliced luncheon
meats manufactured by its wholly-owned subsidiary, Dixie Packers, Inc. As a
result of this recall, operating margins were negatively impacted by
approximately $10.5 million. Operating and administrative expenses increased
$63.4 million for the current quarter and $133.3 million year-to-date. As a
percent to sales, operating and administrative expenses for the current quarter
were 25.6%, compared to 24.8% last year. Year-to-date, operating and
administrative expenses, as a percent to sales were 25.9% for the current year
and 24.9% for the previous year. Our expenses were impacted by increased
training costs associated with our emphasis toward increased customer service,
occupancy costs and our "While You're at the Marketplace" marketing campaign.
During the second quarter of fiscal 1999, the Company increased the estimated
useful lives used to compute depreciation for certain assets, principally store
equipment (5 to 8 years) and leaseholds (8 to 15 years). Store equipment and
leaseholds associated with
Page 7
<PAGE>
Results of Operations, continued
larger, full-service store formats are expected to have a longer life because of
the types of equipment and the expected timing of store remodels. In addition,
the change results in useful lives more consistent with the predominant industry
practices for these types of assets. The change has been accounted for as a
change in estimate and resulted in a reduction in operating and administrative
expenses of $16.7 million for the 16 weeks ended January 6, 1999.
Cash discounts and other income totaled $33.6 million in the second quarter,
compared to $34.1 million for the same quarter last year. Year-to-date, cash
discounts and other income totaled $60.1 million compared to $60.4 million last
year.
Interest expense totaled $11.2 million for the current quarter compared to $9.9
million for the comparable period last year. Year-to-date, interest expense
totaled $19.3 million for the current year compared to $17.0 million in the
previous year. The increase in interest expense for the year is related to the
increase in short-term borrowings.
Earnings before income taxes were $85.1 million for the current quarter compared
to $89.8 million in the previous year. Year-to-date, earnings before income
taxes were $108.8 million in the current year and $165.8 million in the previous
year. The decrease in pre-tax earnings is primarily a result of the increase in
operating expenses as previously mentioned. Income taxes have been accrued at an
effective rate of 38.5% for the current year and 37.5% for the previous year.
This rate is expected to approximate the effective rate for the full 1999 fiscal
year. The effective tax rate during fiscal 1999 and 1998 reflect a change made
by the Health Insurance Portability and Accountability Act of 1996 whereby
certain deductions for interest relating to indebtedness with respect to certain
Corporate Owned Life Insurance (COLI) policies are being phased out over a
three-year period.
Net earnings amounted to $52.4 million, or $0.35 per diluted share, for the
current quarter compared to $56.1 million, or $0.38 per diluted share for the
comparable period last year. Year-to-date, net earnings amounted to $66.9
million, or $0.45 per diluted share, compared to $103.6 million, or $0.70 per
diluted share, for the previous year. The LIFO charge reduced net earnings by
$2.4 million, or $0.02 per diluted share, for the current quarter compared to
$3.1 million, or $0.02 per diluted share, in the previous year. Year-to-date,
the LIFO charge reduced net earnings by $4.9 million, or $0.03 per diluted
share, compared to $6.1 million, or $0.04 per diluted share, in the previous
year.
Page 8
<PAGE>
Liquidity and Capital Resources
The Company's financial condition remains sound and strong. Cash and cash
equivalents amounted to $24.4 million at January 6, 1999, compared to $23.4
million at January 7, 1998. Net cash provided by operating activities amounted
to $193.4 million for the 28 weeks ended January 6, 1999, compared to $265.2
million for the comparable period last year. Capital expenditures totaled $192.8
million compared to $183.7 million for the comparable period last year. These
expenditures were for new store locations, remodeling and enlargement of store
locations and expansion of support facilities. Total capital investment in
Company retail and support facilities, including operating leases, is estimated
to be $800.0 million in fiscal 1999. The Company has no material construction or
purchase commitments outstanding as of January 6, 1999.
Working capital amounted to $210.3 million at January 6, 1999 compared to $228.6
million at June 24, 1998.
The Company has an authorized $500.0 million commercial paper program. In
addition, the Company has $585.0 million of short-term lines of credit. These
lines of credit are available when needed during the year and are renewable on
an annual basis. The Company is not required to maintain compensating bank
balances in connection with these lines of credit. As of January 6, 1999, $329.4
million of commercial paper was outstanding as compared to $420.0 million on
June 24, 1998. The average interest rate on the commercial paper outstanding on
January 6, 1999 was 5.4%, as compared to 5.6% on June 24, 1998. Short-term
borrowings against our bank lines of credit were $153.0 million as of January 6,
1999 as compared to none on June 24, 1998. The interest rate on the bank lines
of credit on January 6, 1999, was 5.2%. Excluding capital leases, the Company
had no outstanding long-term debt as of either January 6, 1999 or June 24,1998.
The carrying amount of short-term borrowings approximates fair value because of
their short-term maturity. As such, the Company is not exposed to a significant
amount of interest rate risk.
Excluding capital leases, the Company had no outstanding long-term debt as of
either January 6, 1999 or June 24, 1998.
The Company's cash flow from operations and available credit facilities have
been considered adequate to fund the short-term and long-term capital needs of
the Company. The Company continually evaluates its strategy to provide for its
short-term and long-term borrowing needs.
The Company is a party to various proceedings arising under federal, state or
local regulations protecting the environment. Management is of the opinion that
any liability, which might result from any such proceedings, will not have a
material adverse effect on the Company's consolidated earnings or financial
position.
Page 9
<PAGE>
Impact of Inflation
The Company's primary costs, which are inventory and labor, increase with
inflation. Recovery of these increases has to come from improved operating
efficiencies and, to the extent permitted by our competition, through improved
gross profit margins.
Year 2000 Compliance
In 1996, the Company created a Year 2000 Project Office to address potential
problems within the Company's operations, which could result from the century
change in the Year 2000. The Project Office was authorized by the Company's
Executive Committee, is staffed primarily with representatives of the Company's
Corporate Information Systems Department, and has access to key associates in
all areas of the Company's operations. The Project Office also uses outside
consultants on an as-needed basis.
To address the Year 2000 issues, the Project Office is identifying all
computer-based systems and applications (including embedded systems) that might
not be Year 2000 compliant; determining what revisions or replacements would be
necessary to achieve compliance and prioritizing and implementing the revisions
or replacements; conducting tests necessary to verify that the revised systems
are operational; and transitioning the compliant systems into the everyday
operations of the Company. Management believes that these actions are
approximately seventy percent (70%) complete. Winn-Dixie estimates that all
critical systems will be compliant with the century change by September 30,
1999.
The Company has budgeted approximately $20.0 million to address the Year 2000
issues, which includes the estimated costs of all modifications, the salaries of
associates and the fees of consultants addressing the issues. Approximately
$14.9 million of this amount had been expended through January 6, 1999.
As a part of the Year 2000 review, the Company is examining its relationships
with certain key outside vendors and others with whom it has significant
business relationships to determine to the extent practical the degree of such
parties' Year 2000 compliance and to develop strategies for working with them
through the century change. The Company does not have a relationship with any
third-party vendor which is material to the operations of the Company and,
therefore, believes that the failure of any such party to be Year 2000 compliant
would not have a material adverse effect on the Company.
Should the Company or a third party with whom the Company deals have a systems
failure due to the century change, the Company believes that the most
significant impact would likely be the inability to timely deliver inventory to
a group of stores or to electronically process sales to the customer at store
level. While the Company does not expect any such impact to be material, it is
developing contingency plans for alternative methods of product delivery and
transaction processing and estimates that such plans will be finalized by
September 30, 1999.
Page 10
<PAGE>
Cautionary Statement Regarding Forward-Looking Information & Statements
This Form 10-Q contains certain information that constitutes "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act,
which involves risks and uncertainties. Actual results may differ materially
from the results described in the forward-looking statements. When used in this
document, the words, "estimate," "project," "intend," "believe" and other
similar expressions, as they relate to the Company, are intended to identify
such forward-looking statements. Such statements reflect the current views of
the Company and are subject to certain risks and uncertainties that include, but
are not limited to, growth, competition, inflation, pricing and margin
pressures, law and taxes. Please refer to discussions of these and other factors
in this Form 10-Q and other Company filings with the Securities and Exchange
Commission. The Company disclaims any intent or obligation to update publicly
these forward-looking statements, whether as a result of new information, future
events or otherwise.
Page 11
<PAGE>
WINN-DIXIE STORES, INC. AND SUBSIDIARIES
Part II - Other Information
Item 5. Other Information
Mr. Roy J. Brocato, Vice President of the Company and President of Winn-Dixie
Atlanta, Inc., was promoted to a newly created position, Director of Corporate
Merchandising, elected Senior Vice President and is a member of the Executive
Committee. Mr. Joe T. White, Retail Operations Superintendent of Winn-Dixie
Atlanta, Inc., was promoted to President of Winn-Dixie Atlanta, Inc.
Mr. Jim H. Childers, Vice President of the Company and Director of Grocery
Merchandising, retired after 42 years of service. Mr. Philip H. Payment, Grocery
Merchandiser of Winn-Dixie Atlanta, Inc., was promoted to Director of Grocery
Merchandising of the Company.
Item 6. Exhibits and Reports on Form 8-K
Reports on Form 8-K
There were no reports on Form 8-K filed for the quarter ended January 6, 1999.
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.
WINN-DIXIE STORES, INC.
Date: January 26, 1999
RICHARD P. MCCOOK
------------------------------
Richard P. McCook
Financial Vice President and
Principal Financial Officer
Date: January 26, 1999
DAVID H. BRAGIN
------------------------------
David H. Bragin
Corporate Treasurer and
Principal Accounting Officer
Page 12
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> All amounts in thousands except per share data.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> Jan-06-1999
<CASH> 24,380
<SECURITIES> 0
<RECEIVABLES> 196,526
<ALLOWANCES> 0
<INVENTORY> 1,462,872
<CURRENT-ASSETS> 1,819,871
<PP&E> 1,199,396
<DEPRECIATION> 0
<TOTAL-ASSETS> 3,176,629
<CURRENT-LIABILITIES> 1,609,551
<BONDS> 0
0
0
<COMMON> 148,629
<OTHER-SE> 1,221,112
<TOTAL-LIABILITY-AND-EQUITY> 1,373,055
<SALES> 7,454,962
<TOTAL-REVENUES> 7,454,962
<CGS> 5,457,687
<TOTAL-COSTS> 1,929,249
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 19,292
<INCOME-PRETAX> 108,795
<INCOME-TAX> 41,886
<INCOME-CONTINUING> 66,909
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 66,909
<EPS-PRIMARY> 0.45
<EPS-DILUTED> 0.45
</TABLE>
