<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 28, 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 33815
- ---------------------------------------- ---------------------------
(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 1, 1996 was
218,862,671.
Page 1 of 9 pages
<PAGE> 2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
PUBLIX SUPER MARKETS, INC.
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
ASSETS
September 28, 1996 December 30,1995
------------------ ----------------
(Unaudited)
<S> <C> <C>
Current Assets
- --------------
Cash and cash equivalents $ 422,304 $ 276,700
Short-term investments 65,543 74,292
Accounts receivable 48,353 44,492
Merchandise inventories 520,761 542,886
Deferred tax assets 37,915 36,475
Prepaid expenses 3,676 3,269
---------- ----------
Total Current Assets 1,098,552 978,114
---------- ----------
Long-term investments 166,818 119,412
Investment in joint ventures 4,880 4,888
Other noncurrent assets 1,991 4,203
Property, plant and equipment 2,671,136 2,540,205
Accumulated depreciation (1,183,844) (1,087,457)
---------- ----------
Total Assets $2,759,533 $2,559,365
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
- -------------------
Current installments of long-term debt $ 701 $ 1,265
Accounts payable 469,430 500,399
Accrued contributions to retirement plans 115,549 67,348
Accrued salaries and wages 68,059 41,276
Accrued self-insurance reserves 58,423 58,442
Federal and state income taxes 6,304 1,318
Other 98,124 75,496
---------- ----------
Total Current Liabilities 816,590 745,544
---------- ----------
Long-term debt, excluding current installments 1,312 1,765
Deferred tax liabilities, net 103,261 103,707
Self-insurance reserves 65,255 60,435
Accrued postretirement benefit cost 36,255 33,197
Other noncurrent liabilities 48,997 ---
Stockholders' Equity
- --------------------
Common stock of $1 par value. Authorized
300,000,000 shares; issued 225,746,454
shares at September 28, 1996 and
December 30, 1995 225,746 225,746
Additional paid-in capital 85,442 85,280
Reinvested earnings 1,498,383 1,303,287
---------- ----------
1,809,571 1,614,313
Less treasury shares of 6,808,046
at September 28, 1996, at cost (121,508) ---
Unrealized gain (loss) on investment
securities available-for-sale, net (200) 404
---------- ----------
Total Stockholders' Equity 1,687,863 1,614,717
---------- ----------
Total Liabilities and Stockholders'
Equity $2,759,533 $2,559,365
========== ==========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
-2-
<PAGE> 3
PUBLIX SUPER MARKETS, INC.
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in thousands except per share amounts)
Three Months Ended
September 28, 1996 September 30, 1995
------------------ ------------------
(Unaudited)
<S> <C> <C>
Revenues
- --------
Sales $ 2,515,915 $ 2,254,387
Other income, net 25,138 19,736
------------ ------------
Total revenues 2,541,053 2,274,123
------------ ------------
Costs and expenses
- ------------------
Cost of merchandise sold, including store
occupancy, warehousing and delivery
expenses 1,921,211 1,727,744
Operating and administrative expenses 509,843 462,469
Interest expense 52 34
------------ ------------
Total costs and expenses 2,431,106 2,190,247
------------ ------------
Earnings before income tax expense 109,947 83,876
Income tax expense 40,787 31,105
------------ ------------
Net earnings $ 69,160 $ 52,771
============ ============
Weighted average number of common
shares outstanding 219,377,612 223,538,918
============ ============
Net earnings per common share $ .32 $ .24
============ ============
Cash dividends per common share none none
</TABLE>
See accompanying notes to condensed consolidated financial statements.
-3-
<PAGE> 4
PUBLIX SUPER MARKETS, INC.
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in thousands except per share amounts)
Nine Months Ended
September 28, 1996 September 30, 1995
------------------ ------------------
(Unaudited)
<S> <C> <C>
Revenues
- --------
Sales $ 7,722,844 $ 6,899,325
Other income, net 72,114 60,890
------------ ------------
Total revenues 7,794,958 6,960,215
------------ ------------
Costs and expenses
- ------------------
Cost of merchandise sold, including store
occupancy, warehousing and delivery
expenses 5,953,754 5,288,477
Operating and administrative expenses 1,483,665 1,372,164
Interest expense 177 298
------------ ------------
Total costs and expenses 7,437,596 6,660,939
------------ ------------
Earnings before income tax expense 357,362 299,276
Income tax expense 133,082 111,638
------------ ------------
Net earnings $ 224,280 $ 187,638
============ ============
Weighted average number of common
shares outstanding 221,885,211 226,559,124
============ ============
Net earnings per common share $ 1.01 $ .83
============ ============
Cash dividends per common share $ .13 $ .11
============ ============
</TABLE>
See accompanying notes to condensed consolidated financial statements.
-4-
<PAGE> 5
PUBLIX SUPER MARKETS, INC.
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
Nine Months Ended
September 28, 1996 September 30,1995
------------------ -----------------
(Unaudited)
<S> <C> <C>
Cash Flows From Operating Activities
- ------------------------------------
Cash received from customers $7,768,719 $6,947,502
Cash paid to employees and suppliers (7,083,677) (6,412,922)
Income taxes paid (129,602) (113,435)
Payment for self-insured claims (76,913) (70,677)
Other, net 15,968 11,048
---------- ----------
Net Cash Provided by Operating Activities 494,495 361,516
---------- ----------
Cash Flows From Investing Activities
- ------------------------------------
Payment for property, plant and equipment (155,150) (184,757)
Payment for investment securities -
available-for-sale (328,573) (197,766)
Proceeds from sale of investment securities -
available-for-sale 287,727 201,768
Other, net 4,093 3,161
---------- ----------
Net Cash Used in Investing Activities (191,903) (177,594)
---------- ----------
Cash Flows From Financing Activities
- ------------------------------------
Payment of long-term debt (1,017) (1,231)
Proceeds from sale of common stock 26,677 21,990
Payment for acquisition of common stock (153,464) (139,840)
Dividends paid (29,184) (25,250)
---------- ----------
Net Cash Used in Financing Activities (156,988) (144,331)
---------- ----------
Net increase in cash and cash equivalents 145,604 39,591
Cash and cash equivalents at beginning of
period 276,700 188,885
---------- ----------
Cash and cash equivalents at end of period $ 422,304 $ 228,476
========== ==========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
-5-
<PAGE> 6
PUBLIX SUPER MARKETS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. In the opinion of management, the accompanying condensed
consolidated 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 28, 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.
4. The condensed consolidated financial statements include the
financial position, results of operations and cash flows of
the Company and its wholly owned subsidiary. All material
intercompany balances have been eliminated.
-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 $494.5 million in the nine months
ended September 28, 1996, as compared with $361.5 million in
the nine months ended September 30, 1995. Cash and cash
equivalents totaled $422.3 million as of September 28, 1996.
Capital expenditures totaled $155.1 million in the nine
months ended September 28, 1996. These expenditures were
primarily incurred in connection with the opening of 24 new
stores and the remodeling or enlarging of seven stores which
added .97 million square feet. In addition, the Company
closed eight stores. Capital expenditures in the nine months
ended September 30, 1995, were approximately $184.8 million.
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.
The Company has budgeted approximately $69.9 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 September 28, 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 September 28,
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 11.6% in the third quarter of 1996 to
$2,515.9 million, an increase of $261.5 million compared to
the same quarter in 1995. This represents an increase of
$137.5 million or 6.1% in additional sales from stores that
were open for all of both quarters (comparable stores) and
additional sales of $124.0 million or 5.5% from the net impact
of new and closed stores since July 1, 1995. Other income
increased $5.4 million or 27.4% in the third quarter of 1996
as compared to the same quarter in 1995.
Sales increased 11.9% in the nine months ended September 28,
1996, to $7,722.8 million, an increase of $823.5 million
over the nine months ended September 30, 1995. This reflects
an increase of $420.1 or 6.1% in sales from comparable stores
and sales of $403.4 or 5.8% from the net impact of new and
closed stores since July 1, 1995. Other revenue increased
$11.2 million or 18.4% in the first nine months of 1996 as
compared to the first nine months of 1995.
Cost of merchandise sold including store occupancy,
warehousing and delivery expenses, as a percentage of sales,
was approximately 76.4% and 76.6% in the quarters ended
September 28, 1996 and September 30, 1995, respectively.
These cost of sales percentages were 77.1% and 76.7% for the
nine months ended September 28, 1996 and September 30, 1995,
respectively.
-7-
<PAGE> 8
PUBLIX SUPER MARKETS, INC.
Operating and administrative expenses, as a percentage of
sales, were approximately 20.3% and 20.5% for the quarters
ended September 28, 1996, and September 30, 1995,
respectively. The operating and administrative expenses, as a
percentage of sales, were 19.2% and 19.9% for the nine months
ended September 28, 1996 and September 30, 1995, respectively.
The significant components of operating and administrative
expenses are payroll costs, employee benefits and
depreciation.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
- --------------------------
In Item 3 of the Company's Form 10-K for the fiscal year
ended December 30, 1995, the Company described class action
litigation against the Company (the "Shores" case) involving
alleged violations 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. This motion
remains pending, and the Company is in the process of taking
additional steps to secure review of the Court's order.
As reported in the Company's Form 10-Q for the quarter
ended March 30, 1996, a suit seeking class action status was
filed on March 28, 1996 against the Company by Kathy Watkins
(the "Watkins" case). In her Complaint, the plaintiff alleged
that the Company violated Federal and Florida Civil Rights
Acts with respect to women in its manufacturing and supply
facilities. As reported in the Company's Form 10-Q for the
quarter ended June 29, 1996, the Court on August 7, 1996,
dismissed the plaintiff's class action claims. The individual
claims of alleged discrimination made by Mrs. Watkins remain.
The Company continues to vigorously defend the claims in
the Shores and Watkins cases, as well as those in the EEOC
Charge that were also described in the Form 10-K for the
fiscal year ended December 30, 1995.
Item 6(a). Exhibits
- --------------------
27. Financial Data Schedule for the nine months ended
September 28, 1996.
Item 6(b). Reports on Form 8-K
- -------------------------------
No reports on Form 8-K were filed during the three months
ended September 28, 1996.
-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 in its behalf by the undersigned thereunto duly
authorized.
PUBLIX SUPER MARKETS, INC.
Date: November 8, 1996 /s/ S. Keith Billups
-------------------------------------------
S. Keith Billups, Secretary
Date: November 8, 1996 /s/ William H. Vass
-------------------------------------------
William H. Vass, Executive Vice President
(Principal Financial Officer)
-9-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements for the nine months ended September 28, 1996, 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-28-1996
<PERIOD-START> DEC-31-1995
<PERIOD-END> SEP-28-1996
<EXCHANGE-RATE> 1
<CASH> 422,304
<SECURITIES> 65,543
<RECEIVABLES> 48,353
<ALLOWANCES> 0
<INVENTORY> 520,761
<CURRENT-ASSETS> 1,098,552
<PP&E> 2,671,136
<DEPRECIATION> (1,183,844)
<TOTAL-ASSETS> 2,759,533
<CURRENT-LIABILITIES> 816,590
<BONDS> 1,312
0
0
<COMMON> 225,746
<OTHER-SE> 1,462,117
<TOTAL-LIABILITY-AND-EQUITY> 2,759,533
<SALES> 7,722,844
<TOTAL-REVENUES> 7,794,958
<CGS> 5,953,754
<TOTAL-COSTS> 7,437,419
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 177
<INCOME-PRETAX> 357,362
<INCOME-TAX> 133,082
<INCOME-CONTINUING> 224,280
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 224,280
<EPS-PRIMARY> 1.01
<EPS-DILUTED> 1.01
</TABLE>
