<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES
EXCHANGE ACT OF 1934 for the quarterly period ended March 26, 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 0-981
----------------------------
PUBLIX SUPER MARKETS, INC.
------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Florida 59-0324412
- - ------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
1936 George Jenkins Blvd.
Lakeland, Florida 33801
- - ---------------------------------------- ----------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (813) 688-1188
--------------
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
----- -----
The number of shares outstanding of the Registrant's common stock, $1.00 par
value, as of April 29, 1994 was 230,228,751.
<PAGE> 2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
PUBLIX SUPER MARKETS, INC.
CONDENSED BALANCE SHEETS
(Amounts in Thousands)
ASSETS
March 26, 1994 December 25, 1993
-------------- -----------------
(Unaudited)
Current Assets
- - --------------
Cash and cash equivalents $ 214,381 $ 198,997
Short-term investments 62,232 59,763
Accounts receivable 39,897 44,377
Merchandise inventories 415,817 404,602
Deferred tax assets 25,888 25,299
Prepaid expenses 7,466 1,731
---------- ----------
Total Current Assets 765,681 734,769
---------- ----------
Long-term investments 202,756 199,385
Investment in joint ventures 5,142 5,142
Other noncurrent assets 5,395 5,844
Property, plant and equipment 2,061,160 1,966,997
Accumulated depreciation (891,306) (857,822)
---------- ----------
Total Assets $2,148,828 $2,054,315
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
- - -------------------
Current installments of long-term debt $ 2,022 $ 2,010
Accounts payable 411,720 394,863
Accrued profit sharing
and ESOT contribution 78,331 50,149
Accrued salaries and wages 37,988 39,362
Accrued self-insurance reserves 45,874 48,918
Federal and state income taxes 43,501 8,253
Other 52,334 54,054
---------- ----------
Total Current Liabilities 671,770 597,609
---------- ----------
Long-term debt, excluding current installments 4,365 4,930
Deferred tax liabilities, net 66,085 63,409
Self-insurance reserves 53,989 50,534
Accrued postretirement benefit cost 26,819 26,465
Other noncurrent liabilities 2,519 3,359
Stockholders' Equity
- - --------------------
Common stock of $1 par value. Authorized
300,000,000 shares: Issued 236,031,122
shares at March 26, 1994 and 238,157,384
shares at December 25, 1993 236,031 238,157
Additional paid-in capital 73,240 73,240
Reinvested earnings 1,076,720 1,020,565
---------- ----------
1,385,991 1,331,962
Less: 5,222,927 and 2,120,612 shares of
common stock acquired from stockholders at
March 26, 1994 and December 25, 1993,
respectively, at cost 62,228 23,953
Unrealized loss on investment
securities available for sale, net 482 -
---------- ----------
Total Stockholders' Equity 1,323,281 1,308,009
---------- ----------
Total Liabilities and Stockholders'
Equity $2,148,828 $2,054,315
========== ==========
See accompanying notes to condensed financial statements.
-2-
<PAGE> 3
PUBLIX SUPER MARKETS, INC.
CONDENSED STATEMENTS OF EARNINGS
(Amounts in thousands except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended
March 26, 1994 March 27, 1993
-------------- --------------
(Unaudited)
<S> <C> <C>
Revenues
- - --------
Sales $ 2,164,581 $ 1,942,289
Other income, net 27,269 21,676
------------ ------------
Total revenues 2,191,850 1,963,965
------------ ------------
Costs and expenses
- - ------------------
Cost of merchandise sold including store
occupancy, warehousing and delivery
expenses 1,669,227 1,519,949
Operating and administrative expenses 397,609 350,643
Interest expense 113 222
------------ ------------
Total costs and expenses 2,066,949 1,870,814
------------ ------------
Earnings before income tax expense
and cumulative effect of changes
in accounting principles 124,901 93,151
Income tax expense 46,857 34,069
------------ ------------
Net earnings before cumulative effect
of changes in accounting principles 78,044 59,082
Cumulative effect on prior years of
changes in accounting principles - (3,494)
------------ ------------
Net earnings $ 78,044 $ 55,588
============ ============
Weighted average number of common
shares outstanding 236,078,036 237,728,815
============ ============
Net earnings per common share before
cumulative effect of changes in
accounting principles $ .33 $ .25
Cumulative effect on prior years of
changes in accounting principles - (.02)
------------ ------------
Net earnings per common share $ .33 $ .23
============ ============
Cash dividends per common share None None
</TABLE>
See accompanying notes to condensed financial statements.
-3-
<PAGE> 4
PUBLIX SUPER MARKETS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Amounts in Thousands)
Three Months Ended
March 26, 1994 March 27, 1993
-------------- --------------
(Unaudited)
Cash Flows From Operating Activities
- - ------------------------------------
Cash received from customers $2,180,350 $1,965,918
Cash paid to employees and suppliers (1,991,452) (1,802,789)
Income taxes paid (9,219) (4,459)
Payment for self-insured claims (16,871) (16,735)
Other 13,750 3,303
---------- ----------
Net Cash Provided by Operating Activities 176,558 145,238
---------- ----------
Cash Flows From Investing Activities
- - ------------------------------------
Payment for property, plant and equipment (94,961) (66,106)
Payment for investment securities - (3,439)
Payment for investment securities -
held-to-maturity (1,095) -
Payment for investment securities -
available-for-sale (37,658) -
Proceeds from sale of investment securities 34,735 457
Other, net 648 1,826
---------- ----------
Net Cash Used in Investing Activities (98,331) (67,262)
---------- ----------
Cash Flows From Financing Activities
- - ------------------------------------
Payment of long-term debt (553) (495)
Proceeds from sale of common stock 2,587 4,300
Payment for acquisition of common stock (64,877) (11,020)
---------- ----------
Net Cash Used in Financing Activities (62,843) (7,215)
---------- ----------
Net increase in cash and cash equivalents 15,384 70,761
Cash and cash equivalents at beginning of
quarter 198,997 293,473
---------- ----------
Cash and cash equivalents at end of quarter $ 214,381 $ 364,234
========== ==========
See accompanying notes to condensed financial statements.
-4-
<PAGE> 5
PUBLIX SUPER MARKETS, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
1. In the opinion of management, the accompanying financial statements
include all adjustments deemed necessary to fairly reflect the financial
position, results of operations and changes in cash flows of the Company
for the interim periods presented.
2. In May 1993, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standard No. 115, Accounting for Certain Investments
in Debt and Equity Securities. The Company adopted the provisions of the
new Standard for investments held as of, or acquired after, the beginning
of fiscal 1994. The cumulative effect of adopting the Standard as of the
beginning of fiscal 1994 is not material. In accordance with the
Standard, prior period financial statements have not been restated to
reflect the change in accounting principle.
Securities held-to-maturity and available-for-sale: Management determines
the appropriate classification of debt securities at the time of purchase
and reevaluates such designation as of each balance sheet date. Debt
securities are classified as held- to-maturity when the Company has the
positive intent and ability to hold the securities to maturity.
Held-to-maturity securities are stated at cost, adjusted for amortization
of premiums and accretion of discounts to maturity. Such amortization is
included in other income.
Debt securities not classified as held-to-maturity and marketable equity
securities are classified as available-for-sale. Available-for-sale
securities are carried at fair value, with the unrealized gains and
losses, net of tax, reported in a separate component of stockholders'
equity. The cost of debt securities in this category is adjusted for
amortization of premiums and accretion of discounts to maturity. Such
amortization is included in other income. Realized gains and losses and
declines in value judged to be other-than-temporary on available-for-sale
securities are included in other income. The cost of securities sold is
based on the specific identification method.
Following is a summary of available-for-sale securities and
held-to-maturity securities as of March 26, 1994:
Available-for-Sale Securities
-------------------------------------------
Gross Gross Estimated
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
-------- ---------- ---------- ---------
(Amounts In Thousands)
Tax-free bonds $178,304 $ 468 $1,865 $176,907
Equity securities 30,336 1,663 1,051 30,948
-------- ------ ------ --------
$208,640 $2,131 $2,916 $207,855
======== ====== ====== ========
Held-to-Maturity Securities
-------------------------------------------
Gross Gross Estimated
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
-------- ---------- ---------- ---------
(Amounts In Thousands)
Tax-free bonds $ 57,048 $ 75 $ 164 $ 56,959
======== ====== ====== ========
-5-
<PAGE> 6
The realized gains on sales of available-for-sale securities totaled
$215,000 and the realized losses totaled $71,000. The net adjustment to
unrealized losses on available-for-sale securities included as a separate
component of stockholders' equity totaled $785,000.
The amortized cost and estimated fair value of debt and marketable equity
securities as of March 26, 1994, by expected maturity, are as follows:
Estimated
Amortized Fair
Cost Value
-------- ---------
(Amounts In Thousands)
Available-for-Sale
------------------
Due in one year or less $ 37,225 $ 37,235
Due after one year through
three years 68,722 68,766
Due after three years 72,357 70,906
-------- --------
178,304 176,907
Equity securities 30,336 30,948
-------- --------
$208,640 $207,855
======== ========
Held-to-Maturity
----------------
Due in one year or less $ 24,912 $ 24,914
Due after one year through
three years 30,818 30,684
Due after three years 1,318 1,361
-------- --------
$ 57,048 $ 56,959
======== ========
At March 26, 1994, the Company classified its one investment in common
stock as a trading security. This investment had a cost of $198,000 and a
fair value of $85,000. The unrealized loss on this investment is included
in the statement of earnings.
-6-
<PAGE> 7
PUBLIX SUPER MARKETS, INC.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources
Operating activities continue to be the Company's primary source of
liquidity. Net cash provided by operating activities was approximately $176.6
million in the quarter ended March 26, 1994, as compared with $145.2 million in
the quarter ended March 27, 1993. Cash and cash equivalents totaled $214.4
million as of March 26, 1994.
Capital expenditures totaled $95.0 million in the quarter ended March 26,
1994. These expenditures were primarily incurred in connection with the
opening of ten new stores and the remodeling or enlarging of three stores which
added .49 million square feet. Significant expenditures were incurred in the
continued construction of a new general merchandise warehouse in Lakeland,
Florida and a new distribution center in Lawrenceville, Georgia. In addition,
the Company closed one store. Capital expenditures in the quarter ended March
27, 1993, were approximately $66.1 million. These expenditures were primarily
incurred in connection with the opening of eight new stores and remodeling or
enlarging of three stores which added .45 million square feet. Also,
significant expenditures were incurred in expanding the warehouse facilities in
Deerfield Beach, Florida. In addition, the Company closed two stores.
The Company has budgeted approximately $305.0 million for the remainder of
1994 for new store construction, the remodeling or expanding of several
existing stores and the expansion and construction of distribution facilities.
The capital budget is subject to continuing change and review. The remaining
capital expenditures are expected to be financed by internally generated funds
and current liquid assets.
As of March 26, 1994, the Company has committed lines of credit for $75.0
million. In April 1994, the Company added an additional $50.0 million line of
credit. These lines are reviewed annually by the banks. The interest rate for
these lines is at or below the prime rate. No amounts were outstanding as of
March 26, 1994.
Cash generated in excess of the amount needed for current operations and
capital expenditures is invested in short-term and long-term investments.
Management believes the Company's liquidity will continue to be strong.
Operating Results
Sales increased 11.4% in the first quarter of 1994 to $2,164.6 million, an
increase of $222.3 million compared to the same quarter in 1993. This
represents an increase of $99.1 million or 5.1% in additional sales from stores
that were open for all of both quarters (comparable stores) and additional
sales of $123.2 million or 6.3% from the net impact of 31 stores opened and
three stores closed since March 27, 1993, and eight stores opened and two
stores closed in the first quarter of 1993. Other income increased $5.6
million or 25.8% in the first quarter of 1994 as compared to the same quarter
in 1993. This increase is the result of the recognition of a $5.6 million gain
on the settlement of claims for business interruption losses and property
losses related to the extensive damage caused by Hurricane Andrew.
Cost of merchandise sold including store occupancy, warehousing and
delivery expenses, as a percentage of sales, was approximately 77.1% in the
quarter ended March 26, 1994, and 78.3% in the quarter ended March 27, 1993.
The decrease in cost of merchandise sold is due to buying and merchandising
efficiencies.
Operating and administrative expenses, as a percentage of sales, were
approximately 18.4% and 18.1% for the quarters ended March 26, 1994 and March
27, 1993, respectively. The significant components of operating and
administrative expenses are payroll costs, employee benefits and depreciation.
-7-
<PAGE> 8
New Accounting Standard
The Company adopted Financial Accounting Standard No. 115, Accounting for
Certain Investments in Debt and Equity Securities, in the first quarter of
1994. This Standard requires the reporting of certain securities at fair value
except for those securities which the Company has the positive intent and
ability to hold to maturity.
The Company adopted the provisions of the new Standard for investments
held as of, or acquired after, the beginning of fiscal 1994. The cumulative
effect of adopting the Standard as of the beginning of fiscal 1994 is not
material. In accordance with the Standard, prior period financial statements
have not been restated to reflect the change in accounting principle.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
In the Company's Form 10-K for the fiscal year ended December 25, 1993,
the Company disclosed a legal proceeding with the Equal Employment Opportunity
Commission (EEOC). No material developments have occurred since the Form 10-K
filing.
Item 6(a). Exhibits
27. Financial Data Schedule for the three months ended March 26, 1994.
Item 6(b). Reports on Form 8-K
No reports on Form 8-K were filed during the three months ended March 26,
1994.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed in its behalf by the
undersigned thereunto duly authorized.
PUBLIX SUPER MARKETS, INC.
Date: May 6, 1994 /s/ S. Keith Billups
--------------------------------------------
S. Keith Billups, Secretary
Date: May 6, 1994 /s/ William H. Vass
--------------------------------------------
William H. Vass, Executive Vice President
and Chief Financial Officer
(Principal Financial Officer)
-8-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 26, 1994, AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> MAR-26-1994
<CASH> 214,381
<SECURITIES> 62,232
<RECEIVABLES> 39,897
<ALLOWANCES> 0
<INVENTORY> 415,817
<CURRENT-ASSETS> 765,681
<PP&E> 2,061,160
<DEPRECIATION> 891,306
<TOTAL-ASSETS> 2,148,828
<CURRENT-LIABILITIES> 671,770
<BONDS> 4,365
<COMMON> 236,031
0
0
<OTHER-SE> 1,087,250
<TOTAL-LIABILITY-AND-EQUITY> 2,148,828
<SALES> 2,164,581
<TOTAL-REVENUES> 2,191,850
<CGS> 1,669,227
<TOTAL-COSTS> 2,066,836
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 113
<INCOME-PRETAX> 124,901
<INCOME-TAX> 46,857
<INCOME-CONTINUING> 78,044
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 78,044
<EPS-PRIMARY> .33
<EPS-DILUTED> .33
</TABLE>
