<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 July 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 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 (941) 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 August 4, 1995 was 223,656,699.
Page 1 of 9 pages
<PAGE> 2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
PUBLIX SUPER MARKETS, INC.
CONDENSED BALANCE SHEETS
(Amounts in thousands)
<TABLE>
<CAPTION>
ASSETS
July 1, 1995 December 31, 1994
------------ -----------------
(Unaudited)
<S> <C> <C>
Current Assets
Cash and cash equivalents $ 210,600 $ 188,885
Short-term investments 87,001 77,217
Accounts receivable 46,524 40,849
Merchandise inventories 486,165 480,876
Deferred tax assets 37,547 28,320
Prepaid income taxes 2,153 ---
Prepaid expenses 6,599 1,767
---------- ----------
Total Current Assets 876,589 817,914
---------- ----------
Long-term investments 121,160 124,494
Investment in joint ventures 4,928 5,036
Other noncurrent assets 4,422 5,149
Property, plant and equipment 2,418,978 2,321,960
Accumulated depreciation (1,020,665) (972,217)
---------- ----------
Total Assets $2,405,412 $2,302,336
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Current installments of long-term debt $ 1,600 $ 1,619
Accounts payable 450,788 434,647
Accrued profit-sharing and ESOT contribution 119,060 66,768
Accrued salaries and wages 51,974 44,028
Accrued self-insurance reserves 55,445 49,295
Federal and state income taxes --- 2,729
Other 71,275 58,857
---------- ----------
Total Current Liabilities 750,142 657,943
---------- ----------
Long-term debt, excluding current installments 2,213 3,031
Deferred tax liabilities, net 87,560 78,168
Self-insurance reserves 57,314 59,710
Accrued postretirement benefit cost 31,911 30,330
Stockholders' Equity
Common stock of $1 par value. Authorized
300,000,000 shares; issued 231,585,497
shares at July 1, 1995 and
December 31, 1994 231,585 231,585
Additional paid-in capital 78,421 78,421
Reinvested earnings 1,274,745 1,165,128
---------- ----------
1,584,751 1,475,134
Less: 7,676,951 shares of common stock
acquired from stockholders at
July 1, 1995, at cost (108,665) ---
Unrealized gain (loss) on investment
securities available-for-sale, net 186 (1,980)
---------- ----------
Total Stockholders' Equity 1,476,272 1,473,154
---------- ----------
Total Liabilities and Stockholders'
Equity $2,405,412 $2,302,336
========== ==========
</TABLE>
See accompanying notes to condensed financial statements.
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<PAGE> 3
PUBLIX SUPER MARKETS, INC.
CONDENSED STATEMENTS OF EARNINGS
(Amounts in thousands except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended
July 1, 1995 June 25, 1994
------------ -------------
(Unaudited)
<S> <C> <C>
Revenues
--------
Sales $2,250,309 $2,023,749
Other income, net 18,522 18,307
---------- ----------
Total revenues 2,268,831 2,042,056
---------- ----------
Costs and expenses
------------------
Cost of merchandise sold including store
occupancy, warehousing and delivery
expenses 1,724,026 1,575,027
Operating and administrative expenses 453,125 389,088
Interest expense 162 155
---------- ----------
Total costs and expenses 2,177,313 1,964,270
---------- ----------
Earnings before income tax expense 91,518 77,786
Income tax expense 33,870 28,207
---------- ----------
Net earnings $ 57,648 $ 49,579
========== ==========
Weighted average number of common
shares outstanding 225,862,841 230,169,674
=========== ===========
Net earnings per common share $ .26 $ .22
========== ==========
Cash dividends per common share $ .11 $ .09
========== ==========
</TABLE>
See accompanying notes to condensed financial statements.
-3-
<PAGE> 4
PUBLIX SUPER MARKETS, INC.
CONDENSED STATEMENTS OF EARNINGS
(Amounts in thousands except per share amounts)
<TABLE>
<CAPTION>
Six Months Ended
July 1, 1995 June 25, 1994
------------ -------------
(Unaudited)
<S> <C> <C>
Revenues
--------
Sales $4,644,938 $4,188,330
Other income, net 41,154 45,576
---------- ----------
Total revenues 4,686,092 4,233,906
---------- ----------
Costs and expenses
------------------
Cost of merchandise sold including store
occupancy, warehousing and delivery
expenses 3,560,733 3,245,798
Operating and administrative expenses 909,695 785,154
Interest expense 264 267
---------- ----------
Total costs and expenses 4,470,692 4,031,219
---------- ----------
Earnings before income tax expense 215,400 202,687
Income tax expense 80,533 75,063
---------- ----------
Net earnings $ 134,867 $ 127,624
========== ==========
Weighted average number of common
shares outstanding 228,069,227 232,119,138
=========== ===========
Net earnings per common share $ .59 $ .55
========== ==========
Cash dividends per common share $ .11 $ .09
========== ==========
</TABLE>
See accompanying notes to condensed financial statements.
-4-
<PAGE> 5
PUBLIX SUPER MARKETS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
<TABLE>
<CAPTION>
Six Months Ended
July 1, 1995 June 25, 1994
------------ -------------
(Unaudited)
<S> <C> <C>
Cash Flows From Operating Activities
------------------------------------
Cash received from customers $4,671,222 $4,228,617
Cash paid to employees and suppliers (4,261,810) (3,913,434)
Income taxes paid (86,610) (91,562)
Payment for self-insured claims (47,477) (33,960)
Other 7,581 17,136
---------- ----------
Net Cash Provided by Operating Activities 282,906 206,797
---------- ----------
Cash Flows From Investing Activities
------------------------------------
Payment for property, plant and equipment (125,445) (193,437)
Payment for investment securities -
held-to-maturity --- (5,937)
Payment for investment securities -
available-for-sale (143,361) (113,254)
Proceeds from sale of investment securities -
available-for-sale 139,685 122,454
Other, net 2,682 1,462
---------- ----------
Net Cash Used in Investing Activities (126,439) (188,712)
---------- ----------
Cash Flows From Financing Activities
------------------------------------
Payment of long-term debt (837) (1,344)
Proceeds from sale of common stock 14,919 8,597
Payment for acquisition of common stock (123,584) (84,356)
Dividends paid (25,250) (20,782)
---------- ----------
Net Cash Used in Financing Activities (134,752) (97,885)
---------- ----------
Net increase (decrease) in cash and cash
equivalents 21,715 (79,800)
Cash and cash equivalents at beginning of
period 188,885 198,997
---------- ----------
Cash and cash equivalents at end of period $ 210,600 $ 119,197
</TABLE>
See accompanying notes to condensed financial statements.
-5-
<PAGE> 6
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. Due to the seasonal nature of the Company's business, the
results for the three months and six months ended July 1,
1995 are not necessarily indicative of the results for the
entire 1995 fiscal year.
3. A purported class action was filed against the Company on
July 19, 1995 in the Federal District Court for the Middle
District of Florida, Tampa Division, Case No. 95-1162-Civ-
T by Melodee Shores and seven other present or former
employees of the Company, individually and on behalf of
all other persons similarly situated. In their complaint,
the plaintiffs allege that the Company has and is
currently engaged in a policy and pattern or practice of
gender-based discriminatory treatment of female employees
and applicants with respect to job assignments,
promotional opportunities, management positions, equal
pay, full-time status, bonuses, and other benefits and
conditions of employment, all in violation of Title VII of
the Federal Civil Rights Act, as well as the Florida Human
Rights Act of 1977 and the Florida Civil Rights Act of
1992. The plaintiffs seek, among other relief, a
certification of the suit as a proper class action, a
declaratory judgment that the Company's practices are
unlawful, back pay and other compensatory damages,
exemplary and punitive damages, and injunctive relief
against future improper conduct.
The Company denies the allegations of the complaint and
intends to vigorously defend the action. At this early
stage, the likelihood of an adverse finding of the
Company's liability and an estimate of the amount of any
exposure for any such liability cannot be determined.
-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 $282.9 million in the six months
ended July 1, 1995, as compared with $206.8 million in the six
months ended June 25, 1994. Cash and cash equivalents totaled
$210.6 million as of July 1, 1995.
Capital expenditures totaled $125.4 million in the six
months ended July 1, 1995. These expenditures were primarily
incurred in connection with the opening of 21 new stores and
the remodeling or enlarging of nine stores which added 1.1
million square feet. Significant expenditures were incurred
in the continued construction of a new distribution center in
Lawrenceville, Georgia. In addition, the Company closed three
stores. Capital expenditures in the six months ended June 25,
1994, were approximately $193.4 million. These expenditures
were primarily incurred in connection with the opening of 25
new stores and remodeling or enlarging of 11 stores which
added 1.3 million square feet. Construction was completed on
a new general merchandise warehouse in Lakeland, Florida and
significant expenditures were incurred in the continued
construction of a new distribution center in Lawrenceville,
Georgia. In addition, the Company closed three stores.
The Company has budgeted approximately $174.6 million for
the remainder of 1995 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 July 1, 1995, the Company has committed lines of
credit for $100.0 million and one uncommitted line of credit
for $25.0 million. 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 July 1, 1995.
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 11.2% in the second quarter of 1995 to
$2,250.3 million, an increase of $226.6 million compared to
the same quarter in 1994. This represents an increase of
$48.5 million or 2.4% additional sales from stores that were
open for all of both quarters (comparable stores) and
additional sales of $178.1 million or 8.8% from the net impact
of 46 stores opened and five stores closed since June 25,
1994, and 15 stores opened and two stores closed in the second
quarter of 1994. Other income increased $.2 million or 1.2%
in the second quarter of 1995 as compared to the same quarter
in 1994.
Sales increased 10.9% in the six months ended July 1,
1995, to $4,644.9 million, an increase of $456.6 million over
the six months ended June 25, 1994. This reflects an increase
of $108.9 million or 2.6% in sales from comparable stores and
sales of $347.7 million or 8.3% from the net impact of 46
stores opened and five stores closed since June 25, 1994, and
25 stores opened and three stores closed in the first six
months of 1994. Other revenue decreased $4.4 million or 9.7%
in the first six months of 1995 as compared to the first six
months of 1994. This decrease is the result of the
recognition of a gain in 1994 on the settlement of claims for
business interruption losses and property losses related to
the extensive damage caused by Hurricane Andrew.
-7-
<PAGE> 8
PUBLIX SUPER MARKETS, INC.
Cost of merchandise sold including store occupancy,
warehousing and delivery expenses, as a percentage of sales,
was approximately 76.6% and 77.8% in the quarters ended July
1, 1995 and June 25, 1994, respectively. These cost of sales
percentages were 76.7% and 77.5% for the six months ended July
1, 1995 and June 25, 1994, respectively. The decreases in
cost of merchandise sold, as a percentage of sales, are due to
buying and merchandising efficiencies.
Operating and administrative expenses, as a percentage of
sales, were approximately 20.1% and 19.2% for the quarters
ended July 1, 1995 and June 25, 1994, respectively. The
operating and administrative expenses, as a percentage of
sales, were 19.6% and 18.7% in the six months ended
July 1, 1995 and June 25, 1994, respectively. The significant
components of operating and administrative expenses are
payroll costs, employee benefits and depreciation.
PART II. OTHER INFORMATION
Item 1(a). Legal Proceedings-EEOC
In the Company's Form 10-K for the fiscal year ended
December 31, 1994, 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 1(b). Legal Proceedings-Purported Class Action
A purported class action was filed against the Company on
July 19, 1995 in the Federal District Court for the Middle
District of Florida, Tampa Division, Case No. 95-1162-Civ-T by
Melodee Shores and seven other present or former employees of
the Company, individually and on behalf of all other persons
similarly situated. In their complaint, the plaintiffs allege
that the Company has and is currently engaged in a policy and
pattern or practice of gender-based discriminatory treatment
of female employees and applicants with respect to job
assignments, promotional opportunities, management positions,
equal pay, full-time status, bonuses, and other benefits and
conditions of employment, all in violation of Title VII of the
Federal Civil Rights Act, as well as the Florida Human Rights
Act of 1977 and the Florida Civil Rights Act of 1992. The
plaintiffs seek, among other relief, a certification of the
suit as a proper class action, a declaratory judgment that the
Company's practices are unlawful, back pay and other
compensatory damages, exemplary and punitive damages, and
injunctive relief against future improper conduct.
The Company denies the allegations of the complaint and
intends to vigorously defend the action.
Item 4. Results of Votes of Security Holders
The Annual Meeting of Stockholders of the Company was
held on May 16, 1995, for the purpose of fixing the number of
and electing a board of directors. Proxies for the meeting
were solicited pursuant to Section 14(a) of the Securities
Exchange Act of 1934 and there were no solicitations in
opposition to management's solicitation. The number of directors
was fixed at ten and all of management's nominees for directors
as listed in the proxy statement were elected.
Item 6(a). Exhibits
27. Financial Data Schedule for the six months ended
July 1, 1995.
Item 6(b). Reports on Form 8-K
No reports on Form 8-K were filed during the three months
ended July 1, 1995. However, the Company filed a report on
Form 8-K dated July 21, 1995, reporting the legal proceeding
disclosed in Part II, Item 1(b) above.
-8-
<PAGE> 9
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.
PUBLIX SUPER MARKETS, INC.
Date: August 11, 1995 /s/ S. Keith Billups
-----------------------------------------
S. Keith Billups, Secretary
Date: August 11, 1995 /s/ William H. Vass
-----------------------------------------
William H. Vass, Executive Vice President
and Chief Financial Officer
(Principal Financial Officer)
-9-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 25, 1995, AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-30-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUL-01-1995
<EXCHANGE-RATE> 1
<CASH> 210,600
<SECURITIES> 87,001
<RECEIVABLES> 46,524
<ALLOWANCES> 0
<INVENTORY> 486,165
<CURRENT-ASSETS> 876,589
<PP&E> 2,418,978
<DEPRECIATION> (1,020,665)
<TOTAL-ASSETS> 2,405,412
<CURRENT-LIABILITIES> 750,142
<BONDS> 2,213
<COMMON> 231,585
0
0
<OTHER-SE> 1,244,687
<TOTAL-LIABILITY-AND-EQUITY> 2,405,412
<SALES> 4,644,938
<TOTAL-REVENUES> 4,686,092
<CGS> 3,560,733
<TOTAL-COSTS> 4,470,428
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 264
<INCOME-PRETAX> 215,400
<INCOME-TAX> 80,533
<INCOME-CONTINUING> 134,867
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 134,867
<EPS-PRIMARY> .59
<EPS-DILUTED> .59
</TABLE>
