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 April 2, 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 2-66296
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Roundy's, Inc.
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(Exact name of registrant as specified in its charter)
Wisconsin 39-0854535
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
23000 Roundy Drive, Pewaukee, Wisconsin 53072
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(Address of principal executive offices) (Zip Code)
(414) 547-7999
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(Registrant's telephone number, including area code)
NOT APPLICABLE
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(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
--- ---
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Class Outstanding at April 2, 1994
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Common Stock, $1.25 par value
Class A (Voting) 15,600 Shares
Class B (Non-voting) 1,185,792 Shares
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ROUNDY'S, INC.
INDEX
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Page No.
PART I. Financial Information: --------
Consolidated Balance Sheets -
April 2, 1994 and January 1, 1994 3
Statements of Consolidated Earnings -
Thirteen Weeks Ended April 2, 1994 4
and April 3, 1993
Statements of Consolidated Cash Flows -
Thirteen Weeks Ended April 2, 1994
and April 3, 1993 5
Notes to Consolidated Financial Statements 6
Management's Discussion and Analysis of
Financial Condition and Results of
Operations 7
PART II. Other Information 8
SIGNATURES 9
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PART I. FINANCIAL INFORMATION
------------------------------
ROUNDY'S, INC. AND SUBSIDIARIES
===============================
CONSOLIDATED BALANCE SHEETS
April 2, 1994 and January 1, 1994
April 2, 1994 January 1, 1994
(Unaudited) (Audited)
ASSETS -------------- ---------------
CURRENT ASSETS:
Cash and short-term investments....... $ 29,785,600 $ 25,845,600
Notes and accounts receivable, less
allowance for losses, $8,658,100
and $8,766,500, respectively........ 105,402,800 99,826,500
Merchandise inventories............... 169,523,000 153,169,500
Prepaid expenses...................... 4,845,100 6,956,800
Future income tax benefits............ 4,461,700 4,281,800
------------ ------------
Total Current Assets............... 314,018,200 290,080,200
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OTHER ASSETS:
Notes receivable...................... 15,281,900 14,894,700
Deferred expenses and other........... 15,070,000 15,228,100
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Total Other Assets................. 30,351,900 30,122,800
------------ ------------
PROPERTY AND EQUIPMENT - Net........... 63,173,100 59,889,100
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$407,543,200 $380,092,100
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable......................... $ 160,500 $ 139,600
Current maturities of long-term debt.. 8,895,800 8,920,700
Accounts payable...................... 162,906,200 130,187,600
Accrued expenses...................... 41,368,000 36,778,500
Income taxes.......................... 410,900
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Total Current Liabilities 213,330,500 176,437,300
LONG-TERM DEBT, LESS CURRENT MATURITIES 102,203,400 113,044,700
DEFERRED INCOME TAXES.................. 600,000 600,000
OTHER LIABILITIES...................... 4,029,900 3,944,000
------------ ------------
Total Liabilities.................. 320,163,800 294,026,000
<PAGE> ------------ ------------
STOCKHOLDERS' EQUITY:
Common Stock:
Voting (Class A).................... 19,500 19,400
Non-Voting (Class B)................ 1,482,300 1,425,400
------------ ------------
Total Common Stock................. 1,501,800 1,444,800
Amount Related To Recording Minimum
Pension Liability..................... (308,700) (308,700)
Patronage dividends payable in
common stock.......................... 3,263,000
Additional paid-in capital............. 23,598,500 20,388,900
Reinvested earnings.................... 62,587,800 61,278,100
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Total Stockholders' Equity......... 87,379,400 86,066,100
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$407,543,200 $380,092,100
[FN] ============ ============
See Notes to Financial Statements.
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ROUNDY'S, INC. AND SUBSIDIARIES
===============================
STATEMENTS OF CONSOLIDATED EARNINGS
FOR THE THIRTEEN WEEKS ENDED APRIL 2, 1994 AND APRIL 3, 1993
(UNAUDITED)
Thirteen Weeks Ended
April 2, 1994 April 3, 1993
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REVENUES:
Net sales and service fees............ $606,214,700 $591,229,200
Other - net........................... 676,100 774,700
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606,890,800 592,003,900
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COSTS AND EXPENSES:
Cost of sales......................... 550,157,900 534,422,100
Operating and administrative.......... 52,104,700 52,201,700
Interest.............................. 2,416,500 2,969,400
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604,679,100 589,593,200
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EARNINGS BEFORE INCOME TAXES........... 2,211,700 2,410,700
PROVISION FOR INCOME TAXES............. 902,000 946,000
------------ ------------
NET EARNINGS........................... $ 1,309,700 $ 1,464,700
============ ============
[FN]
See Notes to Financial Statements.
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ROUNDY'S, INC. AND SUBSIDIARIES
===============================
STATEMENTS OF CONSOLIDATED CASH FLOWS
FOR THE THIRTEEN WEEKS ENDED APRIL 2, 1994 AND APRIL 3, 1993
(UNAUDITED)
Thirteen Weeks Ended
April 2, 1994 April 3, 1993
Cash Flows From Operating Activities: ------------- -------------
Net earnings.......................... $ 1,309,700 $ 1,464,700
Adjustments to reconcile net earnings
to net cash provided by operating
activities:..........................
Depreciation and amortization......... 3,152,200 3,305,500
Allowance for losses.................. 838,700 900,900
Gain on sale of assets................ (32,000) (57,100)
(Increase) Decrease in Operating Assets:
Accounts receivable................... (6,415,000) (9,064,100)
Merchandise inventories............... (16,353,500) (11,061,200)
Prepaid expenses...................... 2,111,700 (327,000)
Future income tax benefits............ (179,900) (62,500)
Other real estate..................... 83,200 (25,200)
Deferred expenses and other assets.... (13,700) 114,300
Increase (Decrease) in Operating
Liabilities:
Accounts payable...................... 32,718,600 16,478,700
Accrued expenses...................... 4,589,500 (3,128,700)
Income taxes.......................... (410,900) (1,135,300)
Other liabilities..................... 85,900 78,100
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Net cash flows provided by (used in)
operating activities.................. 21,484,500 (2,518,900)
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Cash Flows from Investing Activities:
Capital Expenditures.................. (6,370,900) (1,309,300)
Proceeds from sale of property and
equipment........................... 55,300 132,900
Increase in notes receivable.......... (387,200) (1,711,200)
------------ ------------
Net cash flows provided by (used in)
investing activities.................. (6,702,800) (2,887,600)
------------ ------------
Cash Flows from Financing Activities:
Proceeds from long-term borrowings.... 12,000,000
Principal payments of long-term debt.. (10,841,300) (7,944,400)
Increase (decrease) in notes payable
and current maturities of
long-term debt...................... (4,000) 7,277,700
Proceeds from sale of common stock.... 10,700 155,900
Common stock purchased................ (7,100) (1,239,500)
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Net cash flows provided by (used in)
financing activities.................. (10,841,700) 10,249,700
------------ ------------
Net Increase (Decrease) in Cash and
Short-term Investments................ 3,940,000 4,843,200
Cash and Short-term Investments,
Beginning of Period................... 25,845,600 19,912,000
<PAGE> ------------ ------------
Cash and Short-term Investments,
End of Period......................... $ 29,785,600 $ 24,755,200
============ ============
Cash paid during the period: - Interest $ 2,133,400 $ 3,752,700
- Income Taxes 1,002,900 2,197,000
See Notes to Financial Statements.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
1) In the opinion of the Company, the accompanying
consolidated financial statements contain all adjustments
(consisting only of normal recurring accruals) necessary to
present fairly the financial position as of April 2, 1994
and January 1, 1994, and the results of operations for the
thirteen weeks ended April 2, 1994 and April 3, 1993.
2) The results of operations for the thirteen weeks ended April
2, 1994 and April 3, 1993 are not necessarily indicative of
the results to be expected for the full fiscal year.
3) Earnings per share are not presented because they are not
deemed to be meaningful.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
---------------------------------------
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
---------------------------------------------
Results of Operations
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The following is management's discussion and analysis of certain
significant factors which have affected the Company's results of
operations during the periods included in the accompanying statements of
consolidated earnings.
A summary of the period to period changes in the principal items
included in the statements of consolidated earnings is shown below:
Comparison of
13 Weeks Ended April 2, 1994
and April 3, 1993
----------------------------
Net sales and service fees $14,985,500 2.5%
Cost of sales 15,735,800 2.9%
Operating and admin. expenses (97,000) (0.2)%
Interest expense (552,900) (18.6)%
Earnings before income taxes (199,000) (8.3)%
Net sales and service fees increased approximately $15.0 million during
the first quarter of 1994 as compared to the first quarter of 1993. The
loss of wholesale customers resulted in a decrease in sales of
approximately $15.9 million. Sales to new and existing wholesale
customers increased $30.9 million.
Cost of sales approximated 90.8% and 90.4% of net sales and service fees
for the thirteen weeks ended April 2, 1994 and April 3, 1993,
respectively.
Operating and administrative expenses approximated 8.6% and 8.8% of net
sales and service fees for the thirteen weeks ended April 2, 1994 and
April 3, 1993.
Interest expense decreased primarily as a result of lower borrowing
levels during the quarter ended April 2, 1994 as compared to the quarter
ended April 3, 1993.
No patronage dividends have been accrued as of April 2, 1994 and April
3, 1993. The Company's By-Laws require that, to the extent permitted by
the Internal Revenue Code, patronage dividends be paid out of earnings
from business done with stockholder-customers in an amount which will
reduce net earnings of the Company to such amount as will result in a 10
percent increase in the book value of its common stock.
The income tax rate used for calculating the provision for income taxes
for the interim periods was 40.8% and 39.0% in 1994 and 1993,
respectively.
<PAGE>
Liquidity and Capital Resources
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The Company's current ratio decreased from 1.64:1 at year-end to 1.47:1
at April 2, 1994. The consolidated long-term debt to equity ratio has
decreased from 1.31:1 at January 1, 1994 to 1.17:1 at April 2, 1994,
primarily due to lower borrowing levels.
Stockholders' equity increased approximately $1.3 million due to
reinvested earnings of $1.3 million.
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II. OTHER INFORMATION
---------------------
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits - none
(b) Reports on Form 8-K -- There were no reports on Form 8-K
filed for the thirteen weeks ended April 2, 1994.
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SIGNATURES
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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.
ROUNDY'S, INC.
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(Registrant)
Date: May 5, 1994 ROBERT D. RANUS
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Robert D. Ranus
Vice President and
Chief Financial Officer
(Principal Financial Officer)
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