===============================================================================
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 March 31, 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
---------------------
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 _X_ No___
As of April 9, 1999, there were 148,621,107 shares outstanding of the
registrant's common stock, $1 par value.
================================================================================
<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 12 and 40 Weeks Ended
March 31, 1999 and April 1, 1998 1
Condensed Consolidated Balance Sheets (Unaudited),
March 31, 1999 and June 24, 1998 2
Condensed Consolidated Statements of Cash Flows
(Unaudited), For the 40 Weeks Ended
March 31, 1999 and April 1, 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 12 Weeks Ended
-------------------------------------
MOST RECENT QUARTER March 31, 1999 April 1, 1998
---------------- ---------------
Net sales $ 3,203,524 3,160,878
Cost of sales 2,330,865 2,302,664
------------ ------------
Gross profit 872,659 858,214
Operating & administrative expenses 795,839 780,538
------------ ------------
Operating income 76,820 77,676
Cash discounts & other income 26,324 26,572
Interest expense (7,505) (6,693)
------------ ------------
Earnings before income taxes 95,639 97,555
Provision for income taxes 36,821 36,583
------------ ------------
Net earnings $ 58,818 60,972
============ ============
Basic earnings per share $ 0.40 0.41
============ ============
Diluted earnings per share $ 0.40 0.41
============ ============
Dividends per share $ 0.255 0.255
============ ============
FISCAL YEAR-TO-DATE For the 40 Weeks Ended
-------------------------------------
March 31, 1999 April 1, 1998
---------------- ---------------
Net sales $ 10,658,486 10,367,324
Cost of sales 7,788,552 7,590,730
------------- ------------
Gross profit 2,869,934 2,776,594
Operating & administrative expenses 2,725,088 2,576,461
------------- ------------
Operating income 144,846 200,133
Cash discounts & other income 86,385 86,951
Interest expense (26,797) (23,708)
------------- ------------
Earnings before income taxes 204,434 263,376
Provision for income taxes 78,707 98,766
------------- ------------
Net earnings $ 125,727 164,610
============= ============
Basic earnings per share $ 0.85 1.11
============= ============
Diluted earnings per share $ 0.85 1.11
============= ============
Dividends per share $ 0.765 0.765
============= ============
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 March 31, 1999 June 24, 1998
---------------- ----------------
Cash and cash equivalents $ 24,129 23,566
Trade and other receivables 178,038 146,166
Merchandise inventories less LIFO reserve of
$223,869 ($212,869 at June 24, 1998) 1,449,865 1,404,917
Prepaid expenses 130,798 161,141
------------ ------------
Total current assets 1,782,830 1,735,790
------------ ------------
Investments and other assets 130,299 140,450
Deferred income taxes 23,651 22,626
Net property, plant and equipment 1,204,877 1,169,848
------------ ------------
Total assets $ 3,141,657 3,068,714
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $ 625,961 660,539
Short-term borrowings 394,000 420,000
Reserve for insurance claims and self-insurance 68,254 71,779
Accrued wages and salaries 117,837 107,590
Accrued rent 94,773 96,987
Accrued expenses 191,585 135,287
Current obligations under capital leases 3,063 2,908
Income taxes 57,280 12,119
------------ -----------
Total current liabilities 1,552,753 1,507,209
------------ -----------
Obligations under capital leases 46,599 48,580
Defined benefit plan 40,196 37,102
Reserve for insurance claims and self-insurance 92,514 93,514
Other liabilities 15,161 13,426
------------ -----------
Shareholders' equity:
Common stock 148,621 148,531
Retained earnings 1,243,517 1,217,592
Accumulated other comprehensive income 2,296 2,760
------------ -----------
Total shareholders' equity 1,394,434 1,368,883
------------ -----------
Total liabilities and shareholders' equity $ 3,141,657 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 40 Weeks Ended
---------------------------------
FISCAL YEAR-TO-DATE March 31, 1999 April 1, 1998
---------------- --------------
Cash flows from operating activities:
Net earnings $ 125,727 164,610
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization 229,695 251,548
Deferred income taxes 12,509 13,415
Defined benefit plan 3,094 3,017
Reserve for insurance claims and self-insurance (4,525) 1,851
Stock compensation plans 4,570 4,835
Change in cash from:
Receivables (31,872) 56,597
Merchandise inventories (44,948) (144,501)
Prepaid expenses 29,536 27,476
Accounts payable (33,579) (1,233)
Income taxes 32,652 (20,476)
Other current accrued expenses 64,393 44,949
---------- ----------
Net cash provided by operating activities 387,252 402,088
---------- ----------
Cash flows from investing activities:
Purchases of property, plant and equipment, net (262,083) (252,401)
Decrease in investments and other assets 7,520 47,521
---------- ----------
Net cash used in investing activities (254,563) (204,880)
---------- ----------
Cash flows from financing activities:
Decrease in short-term borrowings (26,000) (55,000)
Payments on capital lease obligations (2,315) (3,838)
Purchase of common stock (224) (21,065)
Proceeds of sales under associates'
stock purchase plan 2,579 7,443
Dividends paid (113,411) (113,122)
Other 7,245 (2,974)
---------- ----------
Net cash used in financing activities (132,126) (188,556)
---------- ----------
Increase in cash and cash equivalents 563 8,652
Cash and cash equivalents at beginning of year 23,566 14,116
---------- ----------
Cash and cash equivalents at end of period $ 24,129 22,768
========== ==========
Supplemental cash flow information:
Interest paid $ 17,254 14,106
Interest and dividends received $ 476 646
Income taxes paid $ 33,472 101,129
========== ==========
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 $14.4 million ($8.8 million after tax, or $0.06 per diluted share)
for the 12 weeks ended March 31, 1999 and $32.4 million ($19.8 million
after tax, or $0.13 per diluted share) for the 40 weeks ended March
31, 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 $3.0 million in fiscal 1999 and $2.0 million in fiscal 1998. The
cumulative current year LIFO charge is $11.0 million, as compared with
$12.0 million in fiscal 1998. If the FIFO method had been used,
current quarter net earnings would have been $60.7 million, or $0.41
per diluted share, as compared with net earnings of $62.2 million, or
$0.42 per diluted share in the previous year. The cumulative current
year net earnings would have been $132.4 million, or $0.89 per diluted
share, as compared with $171.9 million, or $1.15 per diluted share in
the previous year. An actual valuation of inventory under the LIFO
method can be made only at the end of each year based on the inventory
levels and costs at that time. Accordingly, interim LIFO calculations
must necessarily be based on management's estimates of expected
year-end inventory levels and costs. Because these are subjected to
many forces beyond management's control, interim results are subject
to the final year-end LIFO inventory valuations.
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
$510.0 million. On March 31, 1999, there were $260.0 million in
commercial paper and $134.0 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 1998 reflects 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 148,322,564 148,342,079
Year-to-Date 148,312,179 148,552,796
Diluted:
Quarter 148,697,412 148,710,969
Year-to-Date 148,689,831 148,937,714
(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 March 31, 1999 and April 1, 1998 was approximately $57.8 million
and $62.9 million, respectively. Year-to-date, comprehensive income at
March 31, 1999 and April 1, 1998 was approximately $125.2 million and
$165.7 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 $3.2 billion, a $42.6 million increase, or
1.3% over the comparable quarter ended April 1, 1998. Year-to-date, sales were
$10.7 billion, a $291.2 million, or 2.8% increase over the comparable period
last year. Average store sales increased 1.5% for the quarter and 3.4%
year-to-date. Identical store sales decreased 1.7% for the quarter and 0.1%
year-to-date.
For the 40 weeks ended March 31, 1999, the Company opened 58 new stores,
averaging 51,100 square feet, enlarged or remodeled 50 stores and closed 44
older stores, averaging 32,900 square feet. As of March 31, 1999, retail space
totaled 51.4 million square feet. The Company has 1,182 stores in operation
compared with 1,179 stores for the same period last year. Of the 1,182 stores,
999, or 85%, are larger than 35,000 square feet. Currently, 43 new stores are
under construction. By the end of this fiscal year, the Company plans to open
approximately 81 new stores and enlarge or remodel 70 existing stores.
Gross profit increased $14.4 million for the quarter and $93.3 million,
year-to-date. As a percent to sales, gross profit for the current quarter and
the previous year was 27.2%. Year-to-date, gross profit as a percent to sales
was 26.9% in the current year, compared to 26.8% in the previous year. Gross
profit increased $1.0 million in the third quarter and $2.3 million for the year
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, year-to-date operating margins were negatively
impacted by approximately $10.5 million.
Operating and administrative expenses increased $15.3 million for the current
quarter and $148.6 million year-to-date. As a percent to sales, operating and
administrative expenses for the current quarter were 24.8%, compared to 24.7%
last year. Year-to-date, operating and administrative expenses, as a percent to
sales were 25.6% 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 $13.4 million for the 12 weeks ended March 31, 1999 and $30.1
million for the 40 weeks ended March 31, 1999.
Cash discounts and other income totaled $26.3 million in the third quarter,
compared to $26.6 million for the same quarter last year. Year-to-date, cash
discounts and other income totaled $86.4 million compared to $87.0 million last
year.
Interest expense totaled $7.5 million for the current quarter compared to $6.7
million for the comparable period last year. Year-to-date, interest expense
totaled $26.8 million for the current year compared to $23.7 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 $95.6 million for the current quarter compared
to $97.6 million in the previous year. Year-to-date, earnings before income
taxes were $204.4 million in the current year and $263.4 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 1998 reflects 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 $58.8 million, or $0.40 per diluted share, for the
current quarter compared to $61.0 million, or $0.41 per diluted share for the
comparable period last year. Year-to-date, net earnings amounted to $125.7
million, or $0.85 per diluted share, compared to $164.6 million, or $1.11 per
diluted share, for the previous year. The LIFO charge reduced net earnings by
$1.8 million, or $0.01 per diluted share, for the current quarter compared to
$1.2 million, or $0.01 per diluted share, in the previous year. Year-to-date,
the LIFO charge reduced net earnings by $6.7 million, or $0.04 per diluted
share, compared to $7.3 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 $24.1 million at March 31, 1999, compared to $22.8
million at April 1, 1998. Net cash provided by operating activities amounted to
$387.3 million for the 40 weeks ended March 31, 1999, compared to $402.1 million
for the comparable period last year. Capital expenditures totaled $262.1 million
compared to $252.4 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 March 31, 1999.
Working capital amounted to $230.1 million at March 31, 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 $510.0 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 March 31, 1999, $260.0
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
March 31, 1999 was 5.1%, as compared to 5.6% on June 24, 1998. Short-term
borrowings against our bank lines of credit were $134.0 million as of March 31,
1999 as compared to none on June 24, 1998. The interest rate on the bank lines
of credit on March 31, 1999, was 5.3%. 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 March 31, 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-five percent (75%) complete. Winn-Dixie estimates that all
critical systems will be compliant with the century change by September 30,
1999.
The Company has budgeted approximately $22.5 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
$18.0 million of this amount had been expended through March 31, 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
Joseph T. White, 51, Division President of the Atlanta Division with 31 years of
service, has been elected a Vice President of the Company. Charles W. Doolittle,
Jr., 47, Director of Security with 16 years of service, has also been elected a
Vice President 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 March 31, 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: April 19, 1999
RICHARD P. MCCOOK
--------------------------------------------
Richard P. McCook
Financial Vice President and
Principal Financial Officer
Date: April 19, 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> Mar-31-1999
<CASH> 24,129
<SECURITIES> 0
<RECEIVABLES> 178,038
<ALLOWANCES> 0
<INVENTORY> 1,449,865
<CURRENT-ASSETS> 1,782,830
<PP&E> 1,204,877
<DEPRECIATION> 0
<TOTAL-ASSETS> 3,141,657
<CURRENT-LIABILITIES> 1,552,753
<BONDS> 0
0
0
<COMMON> 148,621
<OTHER-SE> 1,243,517
<TOTAL-LIABILITY-AND-EQUITY> 1,394,434
<SALES> 10,658,486
<TOTAL-REVENUES> 10,658,486
<CGS> 7,788,552
<TOTAL-COSTS> 2,725,088
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 26,797
<INCOME-PRETAX> 204,434
<INCOME-TAX> 78,707
<INCOME-CONTINUING> 125,727
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 125,727
<EPS-PRIMARY> 0.85
<EPS-DILUTED> 0.85
</TABLE>
