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 June 27,September 26, 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 registrantRegistrant 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
registrantRegistrant 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'sRegistrant's common stock, $1.00
par value, as of July 31,October 30, 1998 was 217,462,520.216,763,389.
Page 1 of 810 pages
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
- -----------------------------
PUBLIX SUPER MARKETS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts are in thousands, except share amounts)
ASSETS
June 27,September 26, 1998 December 27, 1997
------------------------------- -----------------
(Unaudited)
Current Assets
- --------------
Cash and cash equivalents $ 696,075694,060 $ 530,018
Short-term investments 24,38113,824 46,847
Trade receivables 49,13060,032 71,318
Merchandise inventories 580,823597,756 638,044
Deferred tax assets 54,88753,876 66,402
Prepaid expenses 7,2034,118 2,153
---------- ----------
Total Current Assets 1,412,4991,423,666 1,354,782
---------- ----------
Long-term investments 400,567409,429 331,659
Other noncurrent assets 8,8169,137 9,036
Property, plant and equipment 2,814,1642,897,842 2,757,707
Accumulated depreciation (1,148,932)(1,189,243) (1,158,204)
---------- ----------
Total Assets $3,487,114$3,550,831 $3,294,980
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
- -------------------
Accounts payable $ 537,896581,820 $ 562,536
Accrued contributioncontributions to retirement plans 184,808149,733 138,858
Accrued salaries and wages 66,10677,543 47,367
Accrued self-insurance reserves 75,73678,236 57,415
Accrued nonrecurring charge 63,7992,417 69,249
Federal and state income taxes 4,7649,097 15,583
Other 100,045129,220 97,094
---------- ----------
Total Current Liabilities 1,033,1541,028,066 988,102
---------- ----------
Deferred tax liabilities, net 118,402118,146 114,807
Self-insurance reserves 87,56991,034 90,068
Accrued postretirement benefit cost 45,58947,256 42,612
Other noncurrent liabilities 34,25832,176 40,092
Stockholders' Equity
- --------------------
Common stock of $1 par value. Authorized
300,000,000 shares; issued 220,458,183
shares at June 27,September 26, 1998 and 217,419,178
shares at December 27, 1997 220,458 217,419
Additional paid-in capital 236,374 100,757
Reinvested earnings 1,816,7001,904,231 1,696,659
---------- ----------
2,273,5322,361,063 2,014,835
Less treasury shares of 3,448,0523,943,280
at June 27,September 26, 1998, at cost (109,609)(130,136) ---
Accumulated other comprehensive earnings 4,2193,226 4,464
---------- ----------
Total Stockholders' Equity 2,168,1422,234,153 2,019,299
---------- ----------
Total Liabilities and Stockholders'
Equity $3,487,114$3,550,831 $3,294,980
========== ==========
See accompanying notes to condensed consolidated financial statements.
-2-
PUBLIX SUPER MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts are in thousands, except per share and share amounts)
Three Months Ended
JuneSeptember 26, 1998 September 27, 1998 June 28, 1997
------------- ------------------------------- ------------------
(Unaudited)
Revenues Sales $ 2,902,7402,932,792 $ 2,674,4692,710,522
Other income, net 33,499 28,33728,549 26,809
------------ ------------
Total revenues 2,936,239 2,702,8062,961,341 2,737,331
------------ ------------
Costs and expenses
Cost of merchandise sold, including store
occupancy, warehousing and delivery
expenses 2,195,044 2,049,5772,199,616 2,067,928
Operating and administrative expenses 604,422 540,584626,834 561,217
------------ ------------
Total costs and expenses 2,799,466 2,590,1612,826,450 2,629,145
------------ ------------
Earnings before income tax expense 136,773 112,645134,891 108,186
Income tax expense 48,355 40,313
------------ ------------47,360 38,836
Net earnings $ 88,41887,531 $ 72,33269,350
============ ============
Weighted average number of common
shares outstanding 218,032,077 219,396,670217,133,830 218,740,721
============ ============
Net earnings per common share $ .41.40 $ .33.32
============ ============
Cash dividends per common share $ .20 $ .15
============ ============none none
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS
(Amounts are in thousands)
Three Months Ended
JuneSeptember 26, 1998 September 27, 1998 June 28, 1997
------------- ------------------------------- ------------------
(Unaudited)
Net earnings $ 88,41887,531 $ 72,33269,350
Other comprehensive earnings - net
unrealized gain (loss) on investment
securities available-for-sale, net
of tax benefit of $301$623 in 1998 and
tax expense of $439$684 in 1997 (478) 700(993) 1,088
------------ ------------
Comprehensive earnings $ 87,94086,538 $ 73,03270,438
============ ============
See accompanying notes to condensed consolidated financial statements.
-3-
PUBLIX SUPER MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts are in thousands, except per share and share amounts)
SixNine Months Ended
JuneSeptember 26, 1998 September 27, 1998 June 28, 1997
------------- ------------------------------- ------------------
(Unaudited)
Revenues
- --------
Sales $ 5,994,1578,926,952 $ 5,588,5318,299,068
Other income, net 65,875 58,21994,424 85,028
------------ ------------
Total revenues 6,060,032 5,646,7509,021,376 8,384,096
------------ ------------
Costs and expenses
- ------------------
Cost of merchandise sold, including store
occupancy, warehousing and delivery
expenses 4,518,543 4,281,3096,718,159 6,349,237
Operating and administrative expenses 1,216,331 1,089,1881,843,166 1,650,406
------------ ------------
Total costs and expenses 5,734,874 5,370,4978,561,325 7,999,643
------------ ------------
Earnings before income tax expense 325,158 276,253460,051 384,453
Income tax expense 117,742 100,718165,102 139,554
------------ ------------
Net earnings $ 207,416294,949 $ 175,535244,899
============ ============
Weighted average number of common
shares outstanding 217,815,181 219,651,708217,586,570 219,348,046
============ ============
Net earnings per common share $ .951.36 $ .801.12
============ ============
Cash dividends per common share $ .20 $ .15
============ ============
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS
(Amounts are in thousands)
SixNine Months Ended
JuneSeptember 26, 1998 September 27, 1998 June 28, 1997
------------- ------------------------------- ------------------
(Unaudited)
Net earnings $ 207,416294,949 $ 175,535244,899
Other comprehensive earnings - net
unrealized gain (loss) on investment
securities available-for-sale, net of
tax benefit of $154$777 in 1998 and tax
expense of $735$1,419 in 1997 (245) 1,172(1,238) 2,260
------------ ------------
Comprehensive earnings $ 207,171293,711 $ 176,707247,159
============ ============
See accompanying notes to condensed consolidated financial statements.
-4-
PUBLIX SUPER MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts are in thousands)
SixNine Months Ended
JuneSeptember 26, 1998 September 27, 1998 June 28, 1997
------------- ------------------------------- ------------------
(Unaudited)
Cash Flows From Operating Activities
- ------------------------------------
Cash received from customers $6,055,699 $5,632,878$8,996,901 $8,360,837
Cash paid to employees and suppliers (5,437,254) (5,133,644)(8,204,380) (7,690,641)
Income taxes paid (113,297) (126,326)(154,946) (152,046)
Payment for self-insured claims (57,859) (54,296)(89,068) (80,575)
Other, net 25,077 18,12536,706 27,663
---------- ----------
Net Cash Provided by Operating Activities 472,366 336,737585,213 465,238
---------- ----------
Cash Flows From Investing Activities
- ------------------------------------
Payment for property, plant and equipment (160,301) (121,626)(249,644) (183,808)
Payment for investment securities -
available-for-sale (136,244) (268,402)(163,324) (429,378)
Proceeds from sale of investment securities -
available-for-sale 88,389 192,610110,515 296,075
Other, net 4,121 (3,244)4,085 2,159
---------- ----------
Net Cash Used in Investing Activities (204,035) (200,662)(298,368) (314,952)
---------- ----------
Cash Flows From Financing Activities
Payment of long-term debt (131) (64)- ------------------------------------
Proceeds from sale of common stock 57,520 31,92987,742 48,364
Payment for acquisition of common stock (115,911) (59,203)(166,662) (98,417)
Dividends paid (43,752) (33,003)
Other, net (131) (238)
---------- ----------
Net Cash Used in Financing Activities (102,274) (60,341)(122,803) (83,294)
---------- ----------
Net increase in cash and cash equivalents 166,057 75,734164,042 66,992
Cash and cash equivalents at beginning of
period 530,018 457,405
---------- ----------
Cash and cash equivalents at end of period $ 696,075694,060 $ 533,139524,397
========== ==========
==========See accompanying notes to condensed consolidated financial statements.
-5-
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 and nine months ended September 26, 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 net 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 September 26, 1998 (amounts are in thousands):
Balance as of beginning of year $4,464
Current period change (1,238)
------
Balance as of September 26, 1998 $3,226
======
5. In the Company's Form 10-K for the fiscal year ended December 27, 1997,
the Company disclosed two purported class action suits, the Dyer
and Middleton cases. No material developments have occurred in he Dyer or
Middleton cases since the Form 10-K filing, except as reported in the
Company's Form 10-Q for the quarterly period ended June 27, 1998.
-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 $585.2 million in the nine months
ended September 26, 1998, as compared with $465.2 million in
the nine months ended September 27, 1997. Cash and cash
equivalents totaled $694.1 million as of September 26, 1998.
Capital expenditures totaled $249.6 million in the nine
months ended September 26, 1998. These expenditures were
primarily incurred in connection with the opening of 24 new
stores and the remodeling or enlarging of 26 stores which
added 1.05 million square feet. In addition, the Company
closed six stores. Capital expenditures in the nine months
ended September 27, 1997, totaled $183.8 million. These
expenditures were primarily incurred in connection with
the opening of 25 new stores and the remodeling or enlarging
of 15 stores which added .95 million square feet. In addition,
the Company closed four stores.
The Company has budgeted approximately $90.4 million for
the remainder of 1998 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.
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 8.2% in the third quarter of 1998 to
$2,932.8 million, an increase of $222.3 million compared to
the same quarter in 1997. This represents an increase of
$119.4 million or 4.4% additional sales from stores that were
open for all of both quarters (comparable stores) and
additional sales of $102.9 million or 3.8% from the net impact
of new and closed stores since June 28, 1997.
Sales increased 7.6% in the nine months ended September 26,
1998, to $8,927.0 million, an increase of $627.9 million over
the nine months ended September 27, 1997. This reflects an
increase of $299.0 million or 3.6% in sales from comparable
stores and sales of $328.9 million or 4.0% from the net impact
of new and closed stores since the beginning of 1997.
Cost of merchandise sold including store occupancy,
warehousing and delivery expenses, as a percentage of sales,
was approximately 75.0% and 76.3% in the quarters ended
September 26, 1998 and September 27, 1997, respectively. These
cost of sales percentages were 75.3% and 76.5% for the nine
months ended September 26, 1998 and September 27, 1997,
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 21.4% and 20.7% for the quarters
ended September 26, 1998, and September 27, 1997,
respectively. The operating and administrative expenses, as a
percentage of sales, were 20.6% and 19.9% for the nine months
ended September 26, 1998 and September 27, 1997, respectively.
The significant components of operating and administrative
expenses are payroll costs, employee benefits and
depreciation.
-7-
PUBLIX SUPER MARKETS, INC.
Year 2000
- ---------
The Company has developed a plan to address
potential problems within the Company's operations that could
result from the century change in the Year 2000. The plan
addresses three main areas: information technology (IT)
systems, non-IT systems (including embedded systems), and
supply chain readiness (including inventory and non-inventory
suppliers). To oversee the plan, the Company has established
a Year 2000 Project Office. The Project Office is staffed
with representatives from the Company's Information Systems
Department and outside consultants. Additional consultants
are used on an as needed basis.
The Project Office has identified potential deficiencies
related to Year 2000 in the Company's IT systems, both
hardware and software, and is in the process of addressing
them through upgrades, replacements, and other remediation.
The Company believes that it is approximately 55%
complete with this process. With respect to non-IT systems
and other equipment with date sensitive operating controls
such as manufacturing equipment, security, and other
similar systems, the Company is in the process of identifying
and addressing those items which may require upgrades,
replacements, and other remediation. The Company believes
that it is approximately 35% complete with this process.
The Company estimates that all critical IT and non-IT
systems will be Year 2000 compliant by
approximately March 31, 1999.
As for third parties, the Company is in the process of
identifying and contacting key outside suppliers, both
inventory and non-inventory, to determine to the extent
practical the degree of such third-parties' Year 2000
compliance and to develop strategies for working with them.
The Company expects to have a better understanding of the Year
2000 readiness of these third parties over the next several
months.
The Company anticipates spending approximately $41.9
million to address Year 2000 issues. This includes the
estimated costs of all equipment upgrades, software
modifications, the salaries of employees, and the
fees of consultants addressing the issues. As of
September 26, 1998, approximately $11.4 million of this
amount has been spent. The funds to pay for addressing Year
2000 issues will be from liquid investment funds currently on
hand. The Company believes that the cost of addressing the
Year 2000 issues will not have a material effect on the
Company's consolidated financial position or results of
operations.
Should the Company or any third party with whom the Company
has a significant business relationship have a systems failure
due to the century change, the Company believes that the most
significant impact would likely be the inability, with respect
to a store or group of stores, to conduct operations due to a
power failure, to timely deliver inventory, to receive certain
products from vendors, or to electronically process sales to
the customer at the store level. The Company does not expect
any such event to be material. However, the Company is in the
process of developing contingency plans for such events and
estimates such plans will be finalized by approximately March
31, 1999.
-8-
PUBLIX SUPER MARKETS, INC.
Cautionary Note Regarding Forward-Looking Statements
- ----------------------------------------------------
From time to time, information provided by the Company,
including written or oral statements made by its
representatives, may contain forward-looking information about
the future performance of the Company which is based on
management's assumptions and beliefs in light of the
information currently available to them. When used in this
document, the words "plan," "estimate," "project," "intend"
and "believe" and other similar expressions, as they relate to
the Company, are intended to identify such forward-looking
statements. These forward-looking statements are subject to
uncertainties and other factors that could cause actual
results to differ materially from those statements including,
but not limited to: competitive practices and pricing in the
food and drug industries generally and particularly in the
Company's principal markets; changes in the general economy;
changes in consumer spending; and other factors affecting the
Company's business in or beyond the Company's control. These
factors include changes in the rate of inflation, changes in
state and Federal legislation or regulations, adverse
determinations with respect to litigation or other claims,
ability to recruit and train employees, ability to construct
new stores or complete remodels as rapidly as planned,
stability of product costs, and issues arising from addressing
Year 2000 IT and non-IT problems. Other factors and
assumptions not identified above could also cause the actual
results to differ materially from those set forth in the
forward-looking statements. The Company assumes no obligation
to update publicly these forward-looking statements.
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, the Dyer and Middleton cases. No material
developments have occurred in the Dyer or Middleton cases
since the Form 10-K filing, except as reported in the
Company's Form 10-Q for the quarterly period ended June 27,
1998.
Item 6(a). Exhibits
- --------------------
27. Financial Data Schedule for the nine months ended
September 26, 1998.
Item 6(b). Reports on Form 8-K
- -------------------------------
No reports on Form 8-K were filed during the three months
ended September 26, 1998.
-9-
PUBLIX SUPER MARKETS, INC.
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 6, 1998 /s/ S. Keith Billups
--------------------------------------
S. Keith Billups, Secretary
Date: November 6, 1998 /s/ David P. Phillips
--------------------------------------
David P. Phillips, Vice President Finance
and Treasurer (Principal Financial and
Accounting Officer)
-10-
See accompanying notes to condensed consolidated financial statements.
-5-
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 and six months ended June 27,
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 net
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
June 27, 1998 (amounts are in thousands):
Balance as of beginning of year $4,464
Current period change (245)
------
Balance as of June 27, 1998 $4,219
======
5. In the Company's Form 10-K for the fiscal year ended
December 27, 1997, the Company disclosed two purported class
action suits, the Dyer and Middleton cases. No material
developments have occurred in the Dyer case since the Form
10-K filing.
With respect to the Middleton case, on June 15, 1998, a
federal magistrate judge recommended certification of claims
relating only to Publix's retail stores in Florida and
Georgia as a class action. Publix and the plaintiffs have
both objected to the recommendation, with Publix asking that
no class be certified and plaintiffs asking that the class
be expanded. In connection with the objections, on July 20,
1998, the plaintiffs filed documents with the court
announcing that they will drop all claims for compensatory
and punitive damages asserted in the lawsuit.
-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 $472.4 million in the six months
ended June 27, 1998, as compared with $336.7 million in the
six months ended June 28, 1997. Cash and cash equivalents
totaled $696.1 million as of June 27, 1998.
Capital expenditures totaled approximately $160.3 million
in the six months ended June 27, 1998. These expenditures
were primarily incurred in connection with the opening of 19
new stores and the remodeling or enlarging of 14 stores which
added .85 million square feet. In addition, the Company
closed five stores. Capital expenditures totaled
approximately $121.6 million in the six months ended June 28,
1997. These expenditures were primarily incurred in
connection with the opening of 15 new stores and the
remodeling or enlarging of nine stores which added .60 million
square feet. In addition, the Company closed one store.
The Company has budgeted approximately $139.7 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 June 27, 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 June 27, 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 8.5% in the second quarter of 1998 to
$2,902.7 million, an increase of $228.3 million compared to
the same quarter in 1997. This represents an increase of
$115.5 million or 4.3% in sales from stores that were open for
all of both quarters (comparable stores) and sales of $112.8
million or 4.2% from the net impact of new and closed stores
since March 29, 1997. Easter occurred during the second
quarter of 1998 and the first quarter of 1997.
Sales increased 7.3% in the six months ended June 27, 1998,
to $5,994.2 million, an increase of $405.6 million over the
six months ended June 28, 1997. This reflects an increase of
$179.6 million or 3.2% in sales from comparable stores and
sales of $226.0 million or 4.1% from the net impact of new and
closed stores since the beginning of 1997.
Cost of merchandise sold including store occupancy,
warehousing and delivery expenses, as a percentage of sales,
was approximately 75.6% and 76.6% in the quarters ended June
27, 1998 and June 28, 1997, respectively. These cost of sales
percentages were 75.4% and 76.6% for the six months ended June
27, 1998 and June 28, 1997, 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 20.8% and 20.2% for the quarters
ended June 27, 1998 and June 28, 1997, respectively. The
operating and administrative expenses, as a percentage of
sales, were 20.3% and 19.5% for the six months ended June 27,
1998 and June 28, 1997, respectively. The significant
components of operating and administrative expenses are
payroll costs, employee benefits and depreciation.
-7-
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, the Dyer and Middleton cases. No material
developments have occurred in the Dyer case since the Form 10-
K filing.
With respect to the Middleton case, on June 15, 1998, a
federal magistrate judge recommended certification of claims
relating only to Publix's retail stores in Florida and Georgia
as a class action. Publix and the plaintiffs have both
objected to the recommendation, with Publix asking that no
class be certified and plaintiffs asking that the class be
expanded. In connection with the objections, on July 20,
1998, the plaintiffs filed documents with the court announcing
that they will drop all claims for compensatory and punitive
damages asserted in the lawsuit.
Item 4. Results of Votes of Security Holders
- ---------------------------------------------
The Annual Meeting of Stockholders of the Company was held
on May 12, 1998, for the purpose of 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. All of management's nominees for directors as
listed in the proxy statement were elected.
Item 6. Exhibit and Report on Form 8-K
- ---------------------------------------
(a) Exhibit
-----------
27. Financial Data Schedule for the six months
ended June 27, 1998.
(b) Report on Form 8-K
----------------------
No reports on Form 8-K were filed during the three
months ended June 27, 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: August 7, 1998 /s/ S. Keith Billups
---------------------------
S. Keith Billups, Secretary
Date: August 7, 1998 /s/ David P. Phillips
---------------------------------
David P. Phillips, Vice President
Finance and Treasurer (Principal
Financial and Accounting Officer)
-8-