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 1, 1995
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 33-57505
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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.)
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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 1, 1995
- ------------------------------ --------------------------------
Common Stock, $1.25 par value
Class A (Voting) 14,000 Shares
Class B (Non-voting) 1,140,376 Shares
ROUNDY'S, INC.
INDEX
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Page No.
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PART I. Financial Information:
Consolidated Balance Sheets -
April 1, 1995 and December 31, 1994 3
Statements of Consolidated Earnings -
Thirteen Weeks Ended April 1, 1995
and April 2, 1994 4
Statements of Consolidated Cash Flows -
Thirteen Weeks Ended April 1, 1995
and April 2, 1994 5
Notes to Consolidated Financial Statements 6
Management's Discussion and Analysis of
Financial Condition and Results of
Operations 7
PART II. Other Information 8
SIGNATURES 9
PART I. FINANCIAL INFORMATION
ROUNDY'S, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
April 1, 1995 and December 31, 1994
April 1, 1995 December 31, 1994
(Unaudited) (Audited)
ASSETS ------------- -----------------
CURRENT ASSETS:
Cash and cash equivalents.............$ 25,683,400 $ 40,268,800
Notes and accounts receivable, less
allowance for losses, $11,455,700
and $11,000,400, respectively...... 94,999,100 95,105,500
Merchandise inventories............... 168,410,900 157,195,700
Prepaid expenses...................... 4,303,200 5,774,200
Future income tax benefits............ 5,691,800 5,691,800
------------ ------------
Total Current Assets............... 299,088,400 304,036,000
------------ ------------
OTHER ASSETS:
Notes receivable...................... 15,707,400 14,631,300
Deferred expenses and other........... 7,076,900 7,066,200
Other real estate..................... 4,840,000 6,584,200
Deferred income tax benefit........... 3,060,000 3,060,000
------------ ------------
Total Other Assets................. 30,684,300 31,341,700
------------ ------------
PROPERTY AND EQUIPMENT - Net........... 68,733,000 69,274,500
------------ ------------
$398,505,700 $404,652,200
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt..$ 4,928,600 $ 5,678,600
Accounts payable...................... 151,836,700 166,024,700
Accrued expenses...................... 42,185,700 36,036,000
Income taxes.......................... 335,100 4,483,200
------------ ------------
Total Current Liabilities 199,286,100 212,222,500
LONG-TERM DEBT, LESS CURRENT MATURITIES 94,471,800 88,226,700
OTHER LIABILITIES...................... 13,770,100 13,784,300
------------ ------------
Total Liabilities.................. 307,528,000 314,233,500
------------ ------------
STOCKHOLDERS' EQUITY:
Common Stock:
Voting (Class A).................... 17,500 17,500
Non-Voting (Class B)................ 1,425,500 1,443,000
Total Common Stock................. 1,443,000 1,460,500
------------ ------------
Amount related to recording minimum
pension liability..................... (112,700) (112,700)
Additional paid-in capital............. 22,882,500 23,159,700
Reinvested earnings.................... 66,764,900 65,911,200
------------ ------------
Total Stockholders' Equity......... 90,977,700 90,418,700
------------ ------------
$398,505,700 $404,652,200
============ ============
See Notes to Financial Statements.
ROUNDY'S, INC. AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED EARNINGS
FOR THE THIRTEEN WEEKS ENDED APRIL 1, 1995 AND APRIL 2, 1994
(UNAUDITED)
Thirteen Weeks Ended
April 1, 1995 April 2, 1994
------------- -------------
REVENUES:
Net sales and service fees............. $590,402,700 $606,214,700
Other - net............................ 692,200 676,100
------------ ------------
591,094,900 606,890,800
------------ ------------
COSTS AND EXPENSES:
Cost of sales.......................... 535,441,200 550,157,900
Operating and administrative........... 50,934,300 52,104,700
Interest............................... 1,931,900 2,416,500
------------ ------------
588,307,400 604,679,100
------------ ------------
EARNINGS BEFORE INCOME TAXES............ 2,787,500 2,211,700
PROVISION FOR INCOME TAXES.............. 1,135,900 902,000
------------ ------------
NET EARNINGS............................ $ 1,651,600 $ 1,309,700
============ ============
See Notes to Financial Statements.
ROUNDY'S, INC. AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED CASH FLOWS
FOR THE THIRTEEN WEEKS ENDED APRIL 1, 1995 AND APRIL 2, 1994
(UNAUDITED)
Thirteen Weeks Ended
April 1, 1995 April 2, 1994
Cash Flows From Operating Activities: ------------- -------------
Net earnings.......................... $ 1,651,600 $ 1,309,700
Adjustments to reconcile net earnings
to net cash provided by operating
activities:...........................
Depreciation and amortization......... 3,293,600 3,152,200
Allowance for losses.................. 965,200 838,700
Gain on sale of assets................ (5,700) (32,000)
(Increase) Decrease in Operating Assets:
Accounts receivable................... (858,800) (6,415,000)
Merchandise inventories............... (11,215,200) (16,353,500)
Prepaid expenses...................... 1,471,000 2,111,700
Future income tax benefits............ (179,900)
Other real estate..................... 1,744,200 83,200
Deferred expenses and other assets.... (107,500) (13,700)
Increase (Decrease) in Operating
Liabilities:
Accounts payable...................... (14,188,000) 32,718,600
Accrued expenses...................... 6,149,700 4,589,500
Income taxes.......................... (4,148,100) (410,900)
Other liabilities..................... (14,200) 85,900
------------ ------------
Net cash flows (used in) provided by
operating activities.................. (15,262,200) 21,484,500
------------ ------------
Cash Flows from Investing Activities:
Capital Expenditures.................. (2,759,700) (6,370,900)
Proceeds from sale of property and
equipment........................... 110,100 55,300
Increase in notes receivable.......... (1,076,100) (387,200)
Net cash flows (used in) provided by ------------
investing activities.................. (3,725,700) (6,702,800)
------------ ------------
Cash Flows from Financing Activities:
Proceeds from long-term borrowings.... 7,000,000
Principal payments of long-term debt.. (754,900) (10,841,300)
Decrease in notes payable and current
maturities of long-term debt........ (750,000) (4,000)
Proceeds from sale of common stock.... 10,700
Common stock purchased................ (1,092,600) (7,100)
------------ ------------
Net cash flows provided by (used in)
financing activities.................. 4,402,500 (10,841,700)
------------ ------------
Net Increase (Decrease) in Cash and
Cash Equivalents...................... (14,585,400) 3,940,000
Cash and Cash Equivalents,
Beginning of Period................... 40,268,800 25,845,600
------------ ------------
Cash and Cash Equivalents,
End of Period......................... $ 25,683,400 $ 29,785,600
============ ============
Cash paid during the period: -Interest $ 1,454,200 $ 2,133,400
- Income Taxes 5,305,300 1,002,900
See Notes to Financial Statements.
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 1, 1995
and December 31, 1994, and the results of operations for the
thirteen weeks ended April 1, 1995 and April 2, 1994.
2) The results of operations for the thirteen weeks ended April
1, 1995 and April 2, 1994 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.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
Results of Operations
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 1, 1995
and April 2, 1994
----------------------------
Net sales and service fees $(15,812,000) (2.6)%
Cost of sales (14,716,700) (2.7)%
Operating and admin. expenses (1,170,400) (2.3)%
Interest expense (484,600) (20.1)%
Earnings before income taxes 575,800 26.0 %
Net sales and service fees decreased approximately $15.8
million during the first quarter of 1995 as compared to the
first quarter of 1994. The loss of wholesale customers
resulted in a decrease in sales of approximately $4.7
million. The sale of a wholesale facility resulted in a
decrease of approximately $4.2 million. The closing or sale
of four Company-owned stores resulted in a decrease of
approximately $7.3 million. Sales to new and existing
wholesale customers increased $0.4 million.
Cost of sales approximated 90.7% and 90.8% of net sales and
service fees for the thirteen weeks ended April 1, 1995 and
April 2, 1994, respectively.
Operating and administrative expenses approximated 8.6% of
net sales and service fees for the thirteen weeks ended
April 1, 1995 and April 2, 1994.
Interest expense decreased primarily as a result of lower
borrowing levels during the quarter ended April 1, 1995 as
compared to the quarter ended April 2, 1994.
No patronage dividends have been accrued as of April 1, 1995
and April 2, 1994. 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% in 1995 and
1994.
Liquidity and Capital Resources
The Company's current ratio increased from 1.43:1 at year-
end to 1.50:1 at April 1, 1995. The consolidated long-term
debt to equity ratio has increased from .98:1 at December
31, 1994 to 1.04:1 at April 1, 1995, primarily due to higher
seasonal inventory requirements.
Stockholders' equity increased approximately $0.6 million
due to reinvested earnings of $1.7 million and offset by
common stock purchases of $1.1 million.
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 1, 1995.
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.
ROUNDY'S, INC.
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(Registrant)
Date: May 12, 1995 ROBERT D. RANUS
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Robert D. Ranus
Vice President and
Chief Financial Officer
(Principal Financial Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ROUNDY'S,
INC. FORM 10-Q FOR THE QUARTER ENDING APRIL 1, 1995 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-30-1995
<PERIOD-END> APR-01-1995
<CASH> 25,683,400
<SECURITIES> 0
<RECEIVABLES> 94,999,100
<ALLOWANCES> 0
<INVENTORY> 168,410,900
<CURRENT-ASSETS> 299,088,400
<PP&E> 149,732,600
<DEPRECIATION> (80,999,600)
<TOTAL-ASSETS> 398,505,700
<CURRENT-LIABILITIES> 199,286,100
<BONDS> 94,471,800
<COMMON> 1,443,000
0
0
<OTHER-SE> 89,534,700
<TOTAL-LIABILITY-AND-EQUITY> 398,505,700
<SALES> 590,402,700
<TOTAL-REVENUES> 591,094,900
<CGS> 535,441,200
<TOTAL-COSTS> 535,441,200
<OTHER-EXPENSES> 49,969,100
<LOSS-PROVISION> 965,200
<INTEREST-EXPENSE> 1,931,900
<INCOME-PRETAX> 2,787,500
<INCOME-TAX> 1,135,900
<INCOME-CONTINUING> 1,651,600
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,651,600
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
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