<PAGE>
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 28, 1998
--------------
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
incorporation or organization) No.)
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 May 1, 1998 was 218,288,916.
Page 1 of 7 pages
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
- -----------------------------
<TABLE>
<CAPTION>
PUBLIX SUPER MARKETS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts are in thousands, except share amounts)
ASSETS
March 28, 1998 December 27, 1997
---------------- -----------------
(Unaudited)
<S> <C> <C>
Current Assets
- --------------
Cash and cash equivalents $ 722,197 $ 530,018
Short-term investments 30,536 46,847
Trade receivables 60,440 71,318
Merchandise inventories 590,312 638,044
Deferred tax assets 68,312 66,402
Prepaid expenses 9,636 2,153
---------- ----------
Total Current Assets 1,481,433 1,354,782
---------- ---------
Long-term investments 363,053 331,659
Other noncurrent assets 9,064 9,036
Property, plant and equipment 2,818,239 2,757,707
Accumulated depreciation (1,200,033) (1,158,204)
----------- ----------
Total Assets $3,471,756 $3,294,980
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
- -------------------
Accounts payable $ 531,628 $ 562,536
Accrued contribution to retirement plans 151,236 138,858
Accrued salaries and wages 55,198 47,367
Accrued self-insurance reserves 69,245 57,415
Accrued nonrecurring charge 68,313 69,249
Federal and state income taxes 67,980 15,583
Other 88,386 97,094
---------- ---------
Total Current Liabilities 1,031,986 988,102
---------- ---------
Deferred tax liabilities, net 116,245 114,807
Self-insurance reserves 83,932 90,068
Accrued postretirement benefit cost 44,209 42,612
Other noncurrent liabilities 37,187 40,092
Stockholders' Equity
- --------------------------
Common stock of $1 par value. Authorized
300,000,000 shares; issued 218,501,633
shares at March 28, 1998 and 217,419,178
shares at December 27, 1997 218,502 217,419
Additional paid-in capital 178,167 100,757
Reinvested earnings 1,772,032 1,696,659
---------- ---------
2,168,701 2,014,835
Less treasury shares of 547,360
at March 28, 1998, at cost (15,201) ---
Accumulated other comprehensive earnings 4,697 4,464
---------- --------
Total Stockholders' Equity 2,158,197 2,019,299
------------- --------------
Total Liabilities and Stockholders'
Equity $3,471,756 $3,294,980
========== ==========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
-2-
<PAGE>
<TABLE>
<CAPTION>
PUBLIX SUPER MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts are in thousands, except per share and share amounts)
Three Months Ended
March 28, 1998 March 29, 1997
---------------- ----------------
(Unaudited)
<C> <C>
Revenues
- --------
Sales $ 3,091,417 $ 2,914,062
Other income, net 32,377 29,884
------------ --------------
Total revenues 3,123,794 2,943,946
------------ --------------
Costs and expenses
- --------------------------
Cost of merchandise sold, including
store occupancy, warehousing and
delivery expenses 2,323,499 2,231,732
Operating and administrative expenses 611,910 548,605
---------- ----------
Total costs and expenses 2,935,409 2,780,337
---------- ----------
Earnings before income tax expense 188,385 163,609
Income tax expense 69,387 60,406
---------- ----------
Net earnings $ 118,998 $ 103,203
============ ===========
Weighted average number of common
shares outstanding 217,598,625 219,906,746
============ ===========
Net earnings per common share $ .55 $ .47
============ ===========
Cash dividends per common share None None
</TABLE>
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS
(Amounts are in thousands)
Three Months Ended
March 28, 1998 March 29, 1997
---------------- ----------------
(Unaudited)
<S> <C> <C>
Net earnings $ 118,998 $ 103,203
Other comprehensive earnings - unrealized
gain on investment securities available-
for-sale, net of taxes of $147 and $296
in 1998 and 1997, respectively 233 472
------------ --------------
Comprehensive earnings $ 119,231 $ 103,675
============ ==============
</TABLE>
See accompanying notes to condensed consolidated financial statements.
-3-
<PAGE>
<TABLE>
<CAPTION>
PUBLIX SUPER MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts are in thousands)
Three Months Ended
March 28, 1998 March 29, 1997
---------------- ----------------
(Unaudited)
<S> <C> <C>
Cash Flows From Operating Activities
- ------------------------------------
Cash received from customers $3,121,963 $2,938,629
Cash paid to employees and suppliers (2,793,738) (2,629,045)
Income taxes paid (17,609) (13,429)
Payment for self-insured claims (27,432) (25,530)
Other, net 12,037 8,367
----------- -----------
Net Cash Provided by Operating
Activities 295,221 278,992
---------- -----------
Cash Flows From Investing Activities
- ------------------------------------
Payment for property, plant and equipment (65,952) (51,702)
Payment for investment securities -
available-for-sale (73,388) (127,922)
Proceeds from sale of investment securities -
available-for-sale 58,508 119,610
Other, net 2,069 (3,444)
--------- -----------
Net Cash Used in Investing Activities (78,763) (63,458)
---------- -----------
Cash Flows From Financing Activities
- ------------------------------------
Payment of long-term debt (131) (32)
Proceeds from sale of common stock 19,839 16,671
Payment for acquisition of common stock (43,987) (30,188)
---------- ----------
Net Cash Used in Financing Activities (24,279) (13,549)
---------- ----------
Net increase in cash and cash equivalents 192,179 201,985
Cash and cash equivalents at beginning of
quarter 530,018 457,405
--------- ----------
Cash and cash equivalents at end of
quarter $ 722,197 $ 659,390
========== ==========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
-4-
<PAGE>
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. These condensed
consolidated financial statements should be read in
conjunction with the fiscal 1997 Form 10-K Annual Report of
the Company.
2. Due to the seasonal nature of the Company's business, the
results for the three months ended March 28, 1998 are not
necessarily indicative of the results for the entire 1998
fiscal year.
3. Certain 1997 amounts have been reclassified to conform
with the 1998 presentation.
4. In June 1997, the Financial Accounting Standards Board
issued Statement of Financial Accounting Standard No. 130,
"Reporting Comprehensive Income," (SFAS 130) effective for
fiscal years beginning after December 15, 1997. SFAS 130 sets
forth standards for the reporting of comprehensive income
(earnings) in the financial statements. Comprehensive
earnings includes net earnings and other comprehensive
earnings. Other comprehensive earnings includes revenues,
expenses, gains and losses that have been excluded from net
earnings and recorded directly in the stockholders' equity
section of the balance sheet.
Accumulated other comprehensive earnings consists of
unrealized gains on investment securities available-for-
sale. The following is a summary of the change in the
balance of accumulated other comprehensive earnings as of
March 28, 1998 (amounts are in thousands):
<TABLE>
<S> <C>
Balance as of beginning of year $4,464
Current period change 233
------
Balance as of March 28, 1998 $4,697
======
</TABLE>
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<PAGE>
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 $295.2 million in the quarter
ended March 28, 1998, as compared with $279.0 million in the
quarter ended March 29, 1997. Cash and cash equivalents
totaled $722.2 million as of March 28, 1998.
Capital expenditures totaled approximately $66.0 million in
the quarter ended March 28, 1998. These expenditures were
primarily incurred in connection with the opening of nine new
stores and the remodeling or enlarging of nine stores which
added .32 million square feet. In addition, the Company
closed two stores. Capital expenditures totaled approximately
$51.7 million in the quarter ended March 29, 1997. These
expenditures were primarily incurred in connection with the
opening of six new stores and the remodeling or enlarging of
five stores which added .25 million square feet. In addition,
the Company closed one store.
The Company has budgeted approximately $234.0 million for
the remainder of 1998 for new store construction and the
remodeling or enlarging of 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 28, 1998, the Company has a committed line of
credit for $50.0 million. This line is reviewed annually by
the bank. The interest rate for this line is at or below the
prime rate. No amounts were outstanding on the line of credit
as of March 28, 1998.
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 6.1% in the first quarter of 1998 to
$3,091.4 million, an increase of $177.4 million compared to
the same quarter in 1997. This represents an increase of
$64.1 million or 2.2% in sales from stores that were open for
all of both quarters (comparable stores) and sales of $113.3
million or 3.9% from the net impact of new and closed stores
since the beginning of the first quarter of 1997.
Cost of merchandise sold including store occupancy,
warehousing and delivery expenses, as a percentage of sales,
was approximately 75.2% for the quarter ended March 28, 1998
and 76.6% for the quarter ended March 29, 1997. 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 19.8% and 18.8% for the quarters
ended March 28, 1998 and March 29, 1997, respectively. The
significant components of operating and administrative
expenses are payroll costs, employee benefits and
depreciation.
-6-
<PAGE>
PUBLIX SUPER MARKETS, INC.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
- --------------------------
In the Company's Form 10-K for the fiscal year ended
December 27, 1997, the Company disclosed two purported class
action suits. No material developments have occurred since
the Form 10-K filing.
Item 6. Exhibit and Report on Form 8-K
- ---------------------------------------
(a) Exhibit
----------
27. Financial Data Schedule for the three
months ended March 28, 1998.
(b) Report on Form 8-K
---------------------
No reports on Form 8-K were filed during the three
months ended March 28, 1998.
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 8, 1998 /s/ S. Keith Billups
---------------------------
S. Keith Billups, Secretary
Date: May 8, 1998 /s/ David P. Phillips
-----------------------------------
David P. Phillips, Vice President
Finance and Treasurer (Principal
Financial and Accounting Officer)
-7-
<TABLE> <S> <C>
<S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements for the three months ended March 28, 1998, 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-26-1998
<PERIOD-START> DEC-28-1997
<PERIOD-END> JUN-28-1998
<EXCHANGE-RATE> 1
<CASH> 722,197
<SECURITIES> 30,536
<RECEIVABLES> 60,440
<ALLOWANCES> 0
<INVENTORY> 590,312
<CURRENT-ASSETS> 1,481,433
<PP&E> 2,818,239
<DEPRECIATION> (1,200,033)
<TOTAL-ASSETS> 3,471,756
<CURRENT-LIABILITIES> 1,031,986
<BONDS> 0
0
0
<COMMON> 218,502
<OTHER-SE> 1,939,695
<TOTAL-LIABILITY-AND-EQUITY> 3,471,756
<SALES> 3,091,417
<TOTAL-REVENUES> 3,123,794
<CGS> 2,323,499
<TOTAL-COSTS> 2,935,409
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 188,385
<INCOME-TAX> 69,387
<INCOME-CONTINUING> 118,998
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 118,998
<EPS-PRIMARY> .55
<EPS-DILUTED> .55
</TABLE>
