<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 30, 1996
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 April 26, 1996 was 222,783,746.
Page 1 of 8 pages
<PAGE> 2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
PUBLIX SUPER MARKETS, INC.
CONDENSED BALANCE SHEETS
(Amounts in thousands)
<TABLE>
<CAPTION>
ASSETS
March 30, 1996 December 30, 1995
-------------- -----------------
(Unaudited)
<S> <C> <C>
Current Assets
Cash and cash equivalents $ 419,247 $ 276,700
Short-term investments 72,473 74,292
Accounts receivable 43,928 44,492
Merchandise inventories 520,421 542,886
Deferred tax assets 36,896 36,475
Prepaid expenses 8,956 3,269
---------- ----------
Total Current Assets 1,101,921 978,114
Long-term investments 124,978 119,412
Investment in joint ventures 4,878 4,888
Other noncurrent assets 4,024 4,203
Property, plant and equipment 2,590,503 2,540,205
Accumulated depreciation (1,123,794) (1,087,457)
---------- ----------
Total Assets $2,702,510 $2,559,365
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Current installments of long-term debt $ 1,019 $ 1,265
Accounts payable 503,312 500,399
Accrued contributions to retirement plans 99,592 67,348
Accrued salaries and wages 48,272 41,276
Accrued self-insurance reserves 57,774 58,442
Federal and state income taxes 42,661 1,318
Other 64,437 75,496
---------- ----------
Total Current Liabilities 817,067 745,544
---------- ----------
Long-term debt, excluding current installments 1,618 1,765
Deferred tax liabilities, net 109,578 103,707
Self-insurance reserves 61,506 60,435
Accrued postretirement benefit cost 34,354 33,197
Stockholders' Equity
Common stock of $1 par value. Authorized
300,000,000 shares; issued 225,746,454
shares at March 30, 1996 and
December 30, 1995 225,746 225,746
Additional paid-in capital 85,442 85,280
Reinvested earnings 1,387,800 1,303,287
---------- ----------
1,698,988 1,614,313
Less treasury shares of 1,257,464
at March 30, 1996, at cost (20,822) ---
Unrealized gain on investment
securities available-for-sale, net 221 404
---------- ----------
Total Stockholders' Equity 1,678,387 1,614,717
---------- ----------
Total Liabilities and Stockholders'
Equity $2,702,510 $2,559,365
========== ==========
</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
March 30,1996 April 1, 1995
------------- -------------
(Unaudited)
<S> <C> <C>
Revenues
Sales $ 2,681,394 $ 2,394,629
Other income, net 22,800 22,632
------------ ------------
Total revenues 2,704,194 2,417,261
------------ ------------
Costs and expenses
Cost of merchandise sold, including store
occupancy, warehousing and delivery
expenses 2,084,305 1,836,707
Operating and administrative expenses 484,508 456,570
Interest expense 67 102
------------ ------------
Total costs and expenses 2,568,880 2,293,379
------------ ------------
Earnings before income tax expense 135,314 123,882
Income tax expense 50,801 46,663
------------ ------------
Net earnings $ 84,513 $ 77,219
============ ============
Weighted average number of common
shares outstanding 225,149,138 230,275,612
============ ============
Net earnings per common share $ .38 $ .34
============ ============
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)
<TABLE>
<CAPTION>
Three Months Ended
March 30, 1996 April 1, 1995
-------------- -------------
(Unaudited)
<S> <C> <C>
Cash Flows From Operating Activities
Cash received from customers $2,698,352 $2,405,487
Cash paid to employees and suppliers (2,446,576) (2,185,111)
Income taxes paid (3,892) (7,007)
Payment for self-insured claims (26,082) (24,842)
Other, net 5,063 3,832
---------- ----------
Net Cash Provided by Operating Activities 226,865 192,359
---------- ----------
Cash Flows From Investing Activities
Payment for property, plant and equipment (53,969) (63,258)
Payment for investment securities -
available-for-sale (101,558) (80,028)
Proceeds from sale of investment securities -
available-for-sale 97,230 81,087
Other, net 473 1,255
---------- ----------
Net Cash Used in Investing Activities (57,824) (60,944)
---------- ----------
Cash Flows From Financing Activities
Payment of long-term debt (393) (446)
Proceeds from sale of common stock 6,572 8,032
Payment for acquisition of common stock (32,673) (36,438)
---------- ----------
Net Cash Used in Financing Activities (26,494) (28,852)
---------- ----------
Net increase in cash and cash equivalents 142,547 102,563
Cash and cash equivalents at beginning of
quarter 276,700 188,885
---------- -----------
Cash and cash equivalents at end of quarter $ 419,247 $ 291,448
========== ===========
</TABLE>
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. Due to the seasonal nature of the Company's business, the
results for the three months ended March 30, 1996 are not
necessarily indicative of the results for the entire 1996
fiscal year.
3. Certain 1995 amounts have been reclassified to conform with
the 1996 presentation.
-5-
<PAGE> 6
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 $226.9 million in the quarter
ended March 30, 1996, as compared with $192.4 million in the
quarter ended April 1, 1995. Cash and cash equivalents
totaled $419.2 million as of March 30, 1996.
Capital expenditures totaled approximately $54.0 million in
the quarter ended March 30, 1996. These expenditures were
primarily incurred in connection with the opening of eight new
stores and the remodeling or enlarging of two stores which
added .42 million square feet. Capital expenditures totaled
$63.3 million in the quarter ended April 1, 1995. These
expenditures were primarily incurred in connection with the
opening of 11 new stores and the remodeling or enlarging of
three stores which added .52 million square feet. During the
quarter ended April 1, 1995, significant expenditures were
also incurred in the continued construction of a new
distribution center in Lawrenceville, Georgia.
The Company has budgeted approximately $171.0 million for
the remainder of 1996 for new store construction and the
remodeling or enlarging of several existing stores. 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 30, 1996, 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 March 30, 1996.
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 12.0% in the first quarter of 1996 to
$2,681.4 million, an increase of $286.8 million compared to
the same quarter in 1995. This represents an increase of
$126.9 million or 5.3% in sales from stores that were open for
all of both quarters (comparable stores) and sales of $159.9
million or 6.7% from the net impact of new and closed stores
since the beginning of the first quarter of 1995.
Cost of merchandise sold including store occupancy,
warehousing and delivery expenses, as a percentage of sales,
was approximately 77.7% in the quarter ended March 30, 1996,
and 76.7% in the quarter ended April 1, 1995. The increase in
cost of merchandise sold, as a percentage of sales, is due to
competitive pressures.
Operating and administrative expenses, as a percentage of
sales, were approximately 18.1% and 19.1% for the quarters
ended March 30, 1996 and April 1, 1995, respectively. The
significant components of operating and administrative
expenses are payroll costs, employee benefits and
depreciation.
-6-
<PAGE> 7
PUBLIX SUPER MARKETS, INC.
PART II. OTHER INFORMATION
Item 1(a). Legal Proceedings
In Item 3 of the Company's Form 10-K for the fiscal year
ended December 30, 1995, reference was made to class action
litigation against the Company involving alleged violations of
Title VII of the Federal Civil Rights Act and Florida law with
respect to certain of the Company's retail employees. On
April 23, 1996, the Company sought reconsideration of the
Court's class certification order, or in the alternative, a
right to an immediate appeal of that order.
On March 28, 1996, another suit seeking class action status
was filed against the Company in the Federal District Court
for the Middle District of Florida, Tampa Division, Case No.
96-608-Civ-T, by Kathy Watkins, individually and on behalf of
other persons similarly situated (the "Watkins case"). In her
Complaint, the plaintiff alleges that the Company has
developed, engaged in, promoted and allowed throughout its
manufacturing and supply facilities a system-wide pattern and
practice of employment discrimination that results in lower
positions, salaries and wages for women, as well as the denial
or delay of their advancement opportunities and promotions,
all in violation of Federal and Florida Civil Rights Acts.
The plaintiff seeks, among other relief, a certification of
the suit as a proper class action with respect to all past and
present female employees of the Company at its manufacturing
and support facilities who have been adversely affected by
gender discrimination, a declaratory judgment that the
Company's practices are unlawful, back pay and other
compensatory damages, punitive damages, and injunctive relief
against future improper conduct.
As has been the case with respect to the previously
reported Shores litigation, the Company denies the allegations
contained in the Watkins complaint and intends to vigorously
defend the suit.
Item 6(a). Exhibits
27. Financial Data Schedule for the three months ended
March 30, 1996.
Item 6(b). Reports on Form 8-K
The Company filed a report on Form 8-K dated March 28,
1996, reporting the legal proceedings disclosed in Part II,
Item 1(a) above.
-7-
<PAGE> 8
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 10, 1996 /s/ S. Keith Billups
---------------------------
S. Keith Billups, Secretary
Date: May 10, 1996 /s/ William H. Vass
---------------------------------------------
William H. Vass, Executive Vice President
(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 30, 1996, and is qualified
in its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-28-1996
<PERIOD-START> DEC-31-1995
<PERIOD-END> MAR-30-1996
<EXCHANGE-RATE> 1
<CASH> 419,247
<SECURITIES> 72,473
<RECEIVABLES> 43,928
<ALLOWANCES> 0
<INVENTORY> 520,421
<CURRENT-ASSETS> 1,101,921
<PP&E> 2,590,503
<DEPRECIATION> (1,123,794)
<TOTAL-ASSETS> 2,702,510
<CURRENT-LIABILITIES> 817,067
<BONDS> 1,618
0
0
<COMMON> 225,746
<OTHER-SE> 1,452,641
<TOTAL-LIABILITY-AND-EQUITY> 2,702,510
<SALES> 2,681,394
<TOTAL-REVENUES> 2,704,194
<CGS> 2,084,305
<TOTAL-COSTS> 2,568,813
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 67
<INCOME-PRETAX> 135,314
<INCOME-TAX> 50,801
<INCOME-CONTINUING> 84,513
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 84,513
<EPS-PRIMARY> .38
<EPS-DILUTED> .38
