<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 September 30, 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 November 3, 1995 was 222,707,474.
Page 1 of 10 pages
<PAGE> 2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
PUBLIX SUPER MARKETS, INC.
CONDENSED BALANCE SHEETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
ASSETS
September 30, 1995 December 31, 1994
(Unaudited)
<S> <C> <C>
Current Assets
Cash and cash equivalents $ 228,476 $ 188,885
Short-term investments 88,293 77,217
Accounts receivable 39,721 40,849
Merchandise inventories 503,700 480,876
Deferred tax assets 37,785 28,320
Prepaid income taxes 1,874 ---
Prepaid expenses 4,418 1,767
---------- ----------
Total Current Assets 904,267 817,914
---------- ----------
Long-term investments 112,325 124,494
Investment in joint ventures 4,857 5,036
Other noncurrent assets 4,216 5,149
Property, plant and equipment 2,474,540 2,321,960
Accumulated depreciation (1,054,592) (972,217)
---------- ----------
Total Assets $2,445,613 $2,302,336
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Current installments of
long-term debt $ 1,453 $ 1,619
Accounts payable 438,726 434,647
Accrued profit sharing
and ESOT contribution 98,364 66,768
Accrued salaries and wages 61,696 44,028
Accrued self-insurance reserves 55,859 49,295
Federal and state income taxes --- 2,729
Other 84,067 58,857
---------- ----------
Total Current Liabilities 740,165 657,943
---------- ----------
Long-term debt,
excluding current installments 1,966 3,031
Deferred tax liabilities, net 91,807 78,168
Self-insurance reserves 59,327 59,710
Accrued postretirement benefit cost 32,477 30,330
Stockholders' Equity
Common stock of $1 par value.
Authorized 300,000,000 shares;
Issued 231,585,497 shares at
September 30, 1995 and
December 31, 1994 231,585 231,585
Additional paid-in capital 78,421 78,421
Reinvested earnings 1,327,516 1,165,128
---------- ----------
1,637,522 1,475,134
Less: 8,284,017 shares of common stock
acquired from stockholders at
September 30, 1995 at cost (117,850) ---
Unrealized gain (loss) on investment
securities available-for-sale, net 199 (1,980)
---------- ----------
Total Stockholders' Equity 1,519,871 1,473,154
---------- ----------
Total Liabilities and
Stockholders' Equity $2,445,613 $2,302,336
========== ==========
</TABLE>
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
September 30, 1995 September 24, 1994
(Unaudited)
<S> <C> <C>
Revenues
- --------
Sales $2,254,387 $2,048,107
Other income, net 19,736 12,548
---------- ----------
Total revenues 2,274,123 2,060,655
---------- ----------
Costs and expenses
- ------------------
Cost of merchandise sold, including
store occupancy, warehousing and
delivery expenses 1,727,744 1,588,222
Operating and administrative
expenses 462,469 405,664
Interest expense 34 153
---------- ----------
Total costs and expenses 2,190,247 1,994,039
---------- ----------
Earnings before income tax
expense 83,876 66,616
Income tax expense 31,105 24,790
---------- ----------
Net earnings $ 52,771 $ 41,826
========== ==========
Weighted average number of common
shares outstanding 223,538,918 229,883,034
=========== ===========
Net earnings per common share $ .24 $ .18
========== ==========
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 EARNINGS
(Amounts in thousands except per share amounts)
<TABLE>
<CAPTION>
Nine Months Ended
September 30, 1995 September 24, 1994
(Unaudited)
<S> <C> <C>
Revenues
- --------
Sales $6,899,325 $6,236,438
Other income, net 60,890 58,124
---------- ----------
Total revenues 6,960,215 6,294,562
========== ==========
Costs and expenses
- ------------------
Cost of merchandise sold, including
store occupancy, warehousing and
delivery expenses 5,288,477 4,834,021
Operating and administrative
expenses 1,372,164 1,190,818
Interest expense 298 421
---------- ----------
Total costs and expenses 6,660,939 6,025,260
---------- ----------
Earnings before income tax
expense 299,276 269,302
Income tax expense 111,638 99,853
---------- ----------
Net earnings $ 187,638 $ 169,449
========== ==========
Weighted average number of
common shares outstanding 226,559,124 231,373,770
=========== ===========
Net earnings per common share $ .83 $ .73
========== ==========
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>
Nine Months Ended
September 30, 1995 September 24, 1994
(Unaudited)
<S> <C> <C>
Cash Flows From Operating Activities
- ------------------------------------
Cash received from customers $6,947,502 $6,279,966
Cash paid to employees
and suppliers (6,401,817) (5,842,503)
Income taxes paid (113,435) (113,321)
Payment for self-insured claims (70,677) (53,374)
Other 11,048 19,439
---------- ----------
Net Cash Provided by
Operating Activities 372,621 290,207
---------- ----------
Cash Flows From Investing Activities
- ------------------------------------
Payment for property,
plant and equipment (184,757) (274,470)
Payment for investment securities -
held-to-maturity --- (14,735)
Payment for investment securities -
available-for-sale (197,766) (152,167)
Investment in joint venture, net 179 113
Proceeds from sale
of investment securities -
held-to-maturity --- 16,527
Proceeds from sale
of investment securities -
available-for-sale 190,663 208,567
Other, net 2,982 2,118
---------- ----------
Net Cash Used in
Investing Activities (188,699) (214,047)
---------- ----------
Cash Flows From Financing Activities
- ------------------------------------
Payment of long-term debt (1,231) (1,837)
Proceeds from sale of common stock 21,990 13,187
Payment for acquisition of
common stock (139,840) (99,283)
Dividends paid (25,250) (20,782)
---------- ----------
Net Cash Used in
Financing Activities (144,331) (108,715)
---------- ---------
Net increase (decrease) in
cash and cash equivalents 39,591 (32,555)
Cash and cash equivalents
at beginning of period 188,885 198,997
---------- ----------
Cash and cash equivalents
at end of period $ 228,476 $ 166,442
========== ==========
</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 nine months ended
September 30, 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. A motion to amend the complaint
to add additional named plaintiffs is pending before the court.
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 $372.6 million in the nine months ended
September 30, 1995, as compared with $290.2 million in the
nine months ended September 24, 1994. Cash and cash
equivalents totaled $228.5 million as of September 30, 1995.
Capital expenditures totaled $184.8 million in the nine
months ended September 30, 1995. These expenditures were
primarily incurred in connection with the opening of 32 new
stores and the remodeling or enlarging of 19 stores which
added 1.5 million square feet. Construction was completed on a
new distribution center and dairy processing plant in
Lawrenceville, Georgia. In addition, the Company closed three
stores. Capital expenditures totaled $274.5 million in the
nine months ended September 24, 1994. These expenditures were
primarily incurred in connection with the opening of 36 new
stores and the remodeling or enlarging of 13 stores which
added 1.8 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 $65.2 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 September 30, 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
September 30, 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 10.1% in the third quarter of 1995 to
$2,254.4 million, an increase of $206.3 million compared
to the same period in 1994. This represents an increase of
$45.0 million or 2.2% in additional sales from stores that
were open for all of both quarters (comparable stores) and
additional sales of $161.3 million or 7.9% from the net impact
of 46 stores opened and five stores closed since September 24,
1994, and 11 stores opened in the third quarter of 1994.
Other income increased $7.2 million or 57.3% in the third
quarter of 1995 as compared to the same quarter in 1994.
During the third quarter of 1994, the Company recognized
losses on the sale of investments and fixed assets, and recorded
a reserve for environmental clean-up costs.
-7-
<PAGE> 8
PUBLIX SUPER MARKETS, INC.
Sales increased 10.6% in the first nine months of 1995
to $6,899.3 million, an increase of $662.9 million compared to
the same period in 1994. This reflects an increase of
$155.9 million or 2.5% in sales from comparable stores and
sales of $507.0 million or 8.1% from the net impact of 46
stores opened and five stores closed since September 24, 1994,
and 36 stores opened and three stores closed in the first nine
months of 1994.
Other income increased $2.8 million or 4.8% in the first nine
months of 1995 as compared to the same period in 1994.
Cost of merchandise sold, including store occupancy,
warehousing and delivery expenses, as a percentage of sales,
was approximately 76.6% and 77.5% in the quarters ended
September 30, 1995 and September 24, 1994, respectively.
These cost of sales percentages were 76.7% and 77.5% for the
nine months ended September 30, 1995 and September 24, 1994,
respectively. During the nine months ended September 30, 1995,
the decrease in cost of merchandise sold, as a percentage of
sales, is due to buying and merchandising efficiencies.
Operating and administrative expenses, as a percentage of
sales, were approximately 20.5% and 19.8% for the quarters
ended September 30, 1995 and September 24, 1994, respectively.
The operating and administrative expenses, as a percentage of
sales, were 19.9% and 19.1% in the nine months ended
September 30, 1995 and September 24, 1994, respectively. The
significant components of operating and administrative
expenses are payroll costs, employee benefits and
depreciation.
-8-
<PAGE> 9
PUBLIX SUPER MARKETS, INC.
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. A motion to amend the complaint to add additional
named plaintiffs is pending before the court. 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 6(a). Exhibits
27. Financial Data Schedule for the nine months ended
September 30, 1995.
Item 6(b). Reports on Form 8-K
The Company filed a report on Form 8-K dated July 21, 1995,
reporting the legal proceedings disclosed in Part II, Item
1(b) above.
-9-
<PAGE> 10
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: November 10, 1995 /s/ S. Keith Billups
-----------------------------------------
S. Keith Billups, Secretary
Date: November 10, 1995 /s/ William H. Vass
-----------------------------------------
William H. Vass, Executive Vice President
(Principal Financial Officer)
-10-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995,
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-30-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<EXCHANGE-RATE> 1
<CASH> 228,476
<SECURITIES> 88,293
<RECEIVABLES> 39,721
<ALLOWANCES> 0
<INVENTORY> 503,700
<CURRENT-ASSETS> 904,267
<PP&E> 2,474,540
<DEPRECIATION> (1,054,595)
<TOTAL-ASSETS> 2,445,613
<CURRENT-LIABILITIES> 740,165
<BONDS> 1,966
<COMMON> 231,585
0
0
<OTHER-SE> 1,288,286
<TOTAL-LIABILITY-AND-EQUITY> 2,445,613
<SALES> 6,899,325
<TOTAL-REVENUES> 6,960,215
<CGS> 5,288,477
<TOTAL-COSTS> 6,660,641
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 298
<INCOME-PRETAX> 299,276
<INCOME-TAX> 111,638
<INCOME-CONTINUING> 187,638
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 187,638
<EPS-PRIMARY> .83
<EPS-DILUTED> .83
</TABLE>
