COVER PAGE
COVER PAGE - shares | 3 Months Ended | |
Oct. 30, 2021 | Dec. 08, 2021 | |
Document Type | 10-Q | |
Document Period End Date | Oct. 30, 2021 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 0-2633 | |
Entity Registrant Name | VILLAGE SUPER MARKET, INC. | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 22-1576170 | |
Entity Address, Address Line One | 733 Mountain Avenue | |
Entity Address, City or Town | Springfield | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07081 | |
City Area Code | 973 | |
Local Phone Number | 467-2200 | |
Title of 12(b) Security | Class A common stock, no par value | |
Trading Symbol | VLGEA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000103595 | |
Current Fiscal Year End Date | --07-30 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | Q1 | |
Amendment Flag | false | |
Common Class A | ||
Entity Common Stock, Shares Outstanding | 10,256,904 | |
Common Class B | ||
Entity Common Stock, Shares Outstanding | 4,293,748 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 30, 2021 | Jul. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 105,087 | $ 116,314 |
Merchandise inventories | 46,021 | 42,633 |
Patronage dividend receivable | 16,501 | 11,860 |
Notes receivable from Wakefern | 27,635 | 0 |
Income taxes receivable | 5,286 | 5,111 |
Other current assets | 21,885 | 20,398 |
Total current assets | 222,415 | 196,316 |
Property, equipment and fixtures, net | 261,309 | 256,154 |
Operating lease assets | 282,483 | 289,461 |
Notes receivable from Wakefern | 28,252 | 55,295 |
Investment in Wakefern | 33,004 | 33,004 |
Goodwill | 24,190 | 24,190 |
Other assets | 36,373 | 34,584 |
Total assets | 888,026 | 889,004 |
Current liabilities | ||
Operating lease obligations | 21,667 | 21,627 |
Capital and financing lease obligations | 547 | 531 |
Notes payable to Wakefern | 629 | 632 |
Current portion of debt | 6,976 | 6,976 |
Accounts payable to Wakefern | 76,959 | 70,792 |
Accounts payable and accrued expenses | 23,441 | 25,098 |
Accrued wages and benefits | 23,272 | 25,036 |
Income taxes payable | 566 | 1,601 |
Total current liabilities | 154,057 | 152,293 |
Long-term debt | ||
Operating lease obligations | 271,500 | 278,135 |
Finance lease obligations | 22,127 | 22,325 |
Notes payable to Wakefern | 2,721 | 2,791 |
Long-term debt | 65,041 | 66,827 |
Total long-term debt | 361,389 | 370,078 |
Pension liabilities | 10,240 | 10,182 |
Other liabilities | 15,369 | 14,978 |
Commitments and contingencies | ||
Shareholders' equity | ||
Preferred stock, no par value: Authorized 10,000 shares, none issued | 0 | 0 |
Retained earnings | 297,249 | 293,185 |
Accumulated other comprehensive loss | (8,185) | (9,064) |
Total shareholders’ equity | 346,971 | 341,473 |
Total liabilities and shareholders’ equity | 888,026 | 889,004 |
Common Class A | ||
Shareholders' equity | ||
Common Stock | 71,238 | 70,594 |
Less treasury stock, Class A, at cost: 496 shares at July 28, 2018 and 477 shares at July 29, 2017 | (14,028) | (13,939) |
Common Class B | ||
Shareholders' equity | ||
Common Stock | $ 697 | $ 697 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Oct. 30, 2021 | Jul. 31, 2021 |
Preferred stock shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock shares issued (in shares) | 0 | 0 |
Common Class A | ||
Common stock shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock shares issued (in shares) | 10,987,000 | 10,978,000 |
Treasury shares | 730,000 | 726,000 |
Common Class B | ||
Common stock shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock shares issued (in shares) | 4,294,000 | 4,294,000 |
Common stock shares outstanding (in shares) | 4,294,000 | 4,294,000 |
CONSOLIDATED STATMENTS OF OPERA
CONSOLIDATED STATMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 30, 2021 | Oct. 24, 2020 | |
Sales | $ 494,211 | $ 490,136 |
Cost of sales | 354,031 | 352,173 |
Gross profit | 140,180 | 137,963 |
Operating and administrative expense | 121,283 | 124,363 |
Depreciation and amortization | 8,335 | 8,714 |
Operating income | 10,562 | 4,886 |
Interest expense | (970) | (987) |
Interest income | 976 | 891 |
Income before income taxes | 10,568 | 4,790 |
Income taxes | 3,240 | 1,430 |
Net income | $ 7,328 | $ 3,360 |
Common Class A | ||
Net income per share: | ||
Basic (in dollars per share) | $ 0.56 | $ 0.26 |
Diluted (in dollars per share) | 0.50 | 0.23 |
Common Class B | ||
Net income per share: | ||
Basic (in dollars per share) | 0.37 | 0.17 |
Diluted (in dollars per share) | $ 0.37 | $ 0.17 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 30, 2021 | Oct. 24, 2020 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net income | $ 7,328 | $ 3,360 |
Other comprehensive income: | ||
Unrealized gains on interest rate swaps, net of tax | 791 | 594 |
Amortization of pension actuarial loss, net of tax | 88 | 101 |
Comprehensive income | $ 8,207 | $ 4,055 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 30, 2021 | Oct. 24, 2020 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Tax expense (benefit) on unrealized losses on interest rate swaps | $ 339 | $ 261 |
Tax of amortization of pension actuarial loss | $ 38 | $ 46 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member]Common Class A | Common Stock [Member]Common Class B | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] |
Balance (in shares) at Jul. 25, 2020 | 10,985 | 4,294 | 726 | |||
Balance at Jul. 25, 2020 | $ 332,320 | $ 68,072 | $ 697 | $ 286,241 | $ (8,751) | $ (13,939) |
Net income | 3,360 | 3,360 | ||||
Other comprehensive income, net of tax | 695 | 695 | ||||
Dividends | (3,257) | (3,257) | ||||
Restricted shares forfeited (in shares) | (5) | |||||
Restricted shares forfeited | (12) | $ (12) | ||||
Share-based compensation expense (in shares) | 8 | |||||
Share-based compensation expense | 635 | $ 635 | ||||
Balance (in shares) at Oct. 24, 2020 | 10,988 | 4,294 | 726 | |||
Balance at Oct. 24, 2020 | 333,741 | $ 68,695 | $ 697 | 286,344 | (8,056) | $ (13,939) |
Balance (in shares) at Jul. 31, 2021 | 10,978 | 4,294 | 726 | |||
Balance at Jul. 31, 2021 | 341,473 | $ 70,594 | $ 697 | 293,185 | (9,064) | $ (13,939) |
Net income | 7,328 | 7,328 | ||||
Other comprehensive income, net of tax | 879 | 879 | ||||
Dividends | (3,264) | (3,264) | ||||
Treasury stock purchases (in shares) | 4 | |||||
Restricted shares forfeited | (89) | $ (89) | ||||
Share-based compensation expense (in shares) | 9 | |||||
Share-based compensation expense | 644 | $ 644 | ||||
Balance (in shares) at Oct. 30, 2021 | 10,987 | 4,294 | 730 | |||
Balance at Oct. 30, 2021 | $ 346,971 | $ 71,238 | $ 697 | $ 297,249 | $ (8,185) | $ (14,028) |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 30, 2021 | Oct. 24, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Tax expense (benefit) associated with other comprehensive loss and income | $ 377 | $ 307 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 30, 2021 | Oct. 24, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 7,328 | $ 3,360 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 8,712 | 9,072 |
Non-cash share-based compensation | 644 | 623 |
Deferred taxes | (600) | (836) |
Provision to value inventories at LIFO | 250 | 0 |
Gain on sale of property, equipment and fixtures | (166) | (42) |
Changes in assets and liabilities: | ||
Merchandise inventories | (3,638) | (4,761) |
Patronage dividend receivable | (4,641) | (4,609) |
Accounts payable to Wakefern | 5,634 | (6,127) |
Accounts payable and accrued expenses | (1,655) | (1,608) |
Accrued wages and benefits | (1,764) | (309) |
Income taxes receivable / payable | (1,210) | 2,260 |
Other assets and liabilities | (1,007) | (376) |
Net cash provided by operating activities | 7,887 | (3,353) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (13,343) | (3,301) |
Proceeds from the sale of assets | 173 | 65 |
Investment in notes receivable from Wakefern | (592) | (567) |
Net cash used in investing activities | (13,762) | (3,803) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of long-term debt | 0 | 50,000 |
Principal payments of long-term debt | (1,999) | (1,444) |
Payments on revolving line of credit | 0 | (50,000) |
Debt issuance costs | 0 | (222) |
Dividends | (3,264) | (3,257) |
Treasury stock purchases, including shares surrendered for withholding taxes | (89) | 0 |
Net cash used in financing activities | (5,352) | (4,923) |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (11,227) | (12,079) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 116,314 | 111,681 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 105,087 | 99,602 |
SUPPLEMENTAL DISCLOSURES OF CASH PAYMENTS MADE FOR: | ||
Interest | 970 | 987 |
Income taxes | 5,050 | 0 |
NONCASH SUPPLEMENTAL DISCLOSURES: | ||
Investment in Wakefern and increase in notes payable to Wakefern | 0 | 670 |
Capital expenditures included in accounts payable and accrued expenses | $ 3,693 | $ 4,951 |
BASIS OF PRESENTATION and ACCOU
BASIS OF PRESENTATION and ACCOUNTING POLICIES | 3 Months Ended |
Oct. 30, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION and ACCOUNTING POLICIES | BASIS OF PRESENTATION and ACCOUNTING POLICIES In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal and recurring accruals) necessary to present fairly the consolidated financial position as of October 30, 2021 and the consolidated statements of operations, comprehensive income and cash flows for the 13 weeks ended October 30, 2021 and October 24, 2020 of Village Super Market, Inc. (“Village” or the “Company”). The significant accounting policies followed by the Company are set forth in Note 1 to the Company's consolidated financial statements in the July 31, 2021 Village Super Market, Inc. Annual Report on Form 10-K, which should be read in conjunction with these financial statements. The results of operations for the periods ended October 30, 2021 are not necessarily indicative of the results to be expected for the full year. Disaggregated Revenues The following table presents the Company's sales by product categories during each of the periods indicated: 13 Weeks Ended October 30, 2021 October 24, 2020 Amount % Amount % Center Store (1) $ 295,974 59.9 % $ 295,940 60.4 % Fresh (2) 179,823 36.4 175,644 35.8 Pharmacy 16,848 3.4 16,432 3.4 Other (3) 1,566 0.3 2,120 0.4 Total Sales $ 494,211 100.0 % $ 490,136 100.0 % (1) Consists primarily of grocery, dairy, frozen, health and beauty care, general merchandise and liquor. (2) Consists primarily of produce, meat, deli, seafood, bakery, prepared foods and floral. |
MERCHANDISE INVENTORIES
MERCHANDISE INVENTORIES | 3 Months Ended |
Oct. 30, 2021 | |
Inventory Disclosure [Abstract] | |
MERCHANDISE INVENTORIES | MERCHANDISE INVENTORIES At both October 30, 2021 and July 31, 2021, approximately 62% of merchandise inventories are valued by the LIFO method while the balance is valued by FIFO. If the FIFO method had been used for the entire inventory, inventories would have been $15,571 and $15,321 higher than reported at October 30, 2021 and July 31, 2021, respectively. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 3 Months Ended |
Oct. 30, 2021 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NET INCOME PER SHARE The Company has two classes of common stock. Class A common stock is entitled to cash dividends as declared 54% greater than those paid on Class B common stock. Shares of Class B common stock are convertible on a share-for-share basis for Class A common stock at any time. The Company utilizes the two-class method of computing and presenting net income per share. The two-class method is an earnings allocation formula that calculates basic and diluted net income per share for each class of common stock separately based on dividends declared and participation rights in undistributed earnings. Under the two-class method, Class A common stock is assumed to receive a 54% greater participation in undistributed earnings than Class B common stock, in accordance with the classes' respective dividend rights. Unvested share-based payment awards that contain nonforfeitable rights to dividends are treated as participating securities and therefore included in computing net income per share using the two-class method. Diluted net income per share for Class A common stock is calculated utilizing the if-converted method, which assumes the conversion of all shares of Class B common stock to Class A common stock on a share-for-share basis, as this method is more dilutive than the two-class method. Diluted net income per share for Class B common stock does not assume conversion of Class B common stock to shares of Class A common stock. The tables below reconcile the numerators and denominators of basic and diluted net income per share for all periods presented. 13 Weeks Ended October 30, 2021 Class A Class B Numerator: Net income allocated, basic $ 5,538 $ 1,566 Conversion of Class B to Class A shares 1,566 — Net income allocated, diluted $ 7,104 $ 1,566 Denominator: Weighted average shares outstanding, basic 9,864 4,294 Conversion of Class B to Class A shares 4,294 — Weighted average shares outstanding, diluted 14,158 4,294 13 Weeks Ended October 24, 2020 Class A Class B Numerator: Net income allocated, basic $ 2,526 $ 716 Conversion of Class B to Class A shares 716 — Net income allocated, diluted $ 3,242 $ 716 Denominator: Weighted average shares outstanding, basic 9,850 4,294 Conversion of Class B to Class A shares 4,294 — Weighted average shares outstanding, diluted 14,144 4,294 Outstanding stock options to purchase Class A shares of 102 and 154 were excluded from the calculation of diluted net income per share at October 30, 2021 and October 24, 2020, respectively, as a result of their anti-dilutive effect. In addition, 388 and 416 non-vested restricted Class A shares, which are considered participating securities, and their allocated net income were excluded from the diluted net income per share calculation at October 30, 2021 and October 24, 2020, respectively, due to their anti-dilutive effect. |
PENSION PLANS
PENSION PLANS | 3 Months Ended |
Oct. 30, 2021 | |
Compensation Related Costs [Abstract] | |
PENSION PLANS | PENSION PLANS Net periodic pension cost for the three defined benefit pension plans sponsored in fiscal 2022 and 2021 includes the following components: 13 Weeks Ended October 30, October 24, Service cost $ 47 $ 54 Interest cost on projected benefit obligations 420 422 Expected return on plan assets (409) (483) Amortization of net losses 126 147 Net periodic pension cost $ 184 $ 140 |
RELATED PARTY INFORMATION
RELATED PARTY INFORMATION | 3 Months Ended |
Oct. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY INFORMATION | RELATED PARTY INFORMATION A description of the Company’s transactions with Wakefern, its principal supplier, and with other related parties is included in the Company’s Annual Report on Form 10-K for the year ended July 31, 2021. Included in cash and cash equivalents at October 30, 2021 and July 31, 2021 are $75,850 and $86,670, respectively, of demand deposits invested at Wakefern at overnight money market rates. |
COMMITMENTS and CONTINGENCIES
COMMITMENTS and CONTINGENCIES | 3 Months Ended |
Oct. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS and CONTINGENCIES | COMMITMENTS and CONTINGENCIES The Company is involved in other litigation incidental to the normal course of business. Company management is of the opinion that the ultimate resolution of these legal proceedings should not have a material adverse effect on the consolidated financial position, results of operations or liquidity of the Company. |
DEBT
DEBT | 3 Months Ended |
Oct. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Long-term debt consists of: October 30, July 31, Secured term loan $ 46,199 $ 47,025 Unsecured term loan 20,206 21,104 New Market Tax Credit Financing 5,612 5,674 Total debt, excluding obligations under leases 72,017 73,803 Less current portion 6,976 6,976 Total long-term debt, excluding obligations under leases $ 65,041 $ 66,827 Credit Facility On May 6, 2020, Village entered into a credit agreement (the “Credit Facility”) with Wells Fargo National Bank, National Association (“Wells Fargo”) that supersedes in its entirety the prior credit agreement with Wells Fargo dated November 9, 2017. The principal purpose of the Credit Facility is to finance general corporate and working capital requirements and Village’s acquisition of certain Fairway Markets assets, including five stores and a production distribution center. Among other things, the Credit Facility provides for a maximum loan amount of $150,500 as further set forth below: • An unsecured revolving line of credit providing a maximum amount available for borrowing of $125,000. Indebtedness under this agreement bears interest at the applicable LIBOR rate plus 1.10% and expires on May 6, 2025. • An unsecured term loan with a maximum loan amount of $25,500. On May 12, 2020, Village executed a $25,500 term note, repayable in equal monthly installments based on a seven-year amortization schedule through May 4, 2027 and bearing interest at the applicable LIBOR rate plus 1.35%. Additionally, Village executed an interest rate swap for a notional amount equal to the term loan amount that fixes the base LIBOR rate at .41% per annum through May 4, 2027, resulting in a fixed effective interest rate of 1.76% on the term note. • On September 1, 2020, Village converted $50,000 of its revolving line of credit to a secured converted term loan. The conversion reduced the maximum amount available for borrowing under the revolving line of credit from $125,000 to $75,000. The term loan bears interest at the applicable LIBOR rate plus 1.50% and is repayable in equal monthly installments based on a fifteen-year amortization schedule beginning on the conversion date. Additionally, Village previously executed a forward interest rate swap, effective on the conversion date, for a notional amount equal to the term loan amount that fixes the base LIBOR rate at .69% per annum for 15 years, resulting in a fixed effective interest rate of 2.19% on the converted term loan. The term loan is secured by real properties of Village Super Market, Inc. and its subsidiaries, including the sites of three Village stores. The Credit Facility also provides for up to $25,000 of letters of credit ($7,336 outstanding at October 30, 2021), which secure obligations for store leases and construction performance guarantees to municipalities. The Credit Facility contains covenants that, among other conditions, require a minimum tangible net worth, a minimum fixed charge coverage ratio and a maximum adjusted debt to EBITDAR ratio. The Company was in compliance with all covenants of the credit agreement at October 30, 2021. New Markets Tax Credit Financing On December 29, 2017, the Company entered into a financing transaction with Wells Fargo Community Investment Holdings, LLC (“Wells Fargo”) under a qualified New Markets Tax Credit (“NMTC”) program related to the construction of a new store in the Bronx, New York. The NMTC program was provided for in the Community Renewal Tax Relief Act of 2000 (the “Act”) and is intended to induce capital investment in qualified lower income communities. The Act permits taxpayers to claim credits against their Federal income taxes for up to 39% of qualified investments in the equity of community development entities (“CDEs”). CDEs are privately managed investment institutions that are certified to make qualified low-income community investments. In connection with the financing, the Company loaned $4,835 to VSM Investment Fund, LLC (the "Investment Fund") at an interest rate of 1.403% per year and with a maturity date of December 31, 2044. Repayments on the loan commence in March 2025. Wells Fargo contributed $2,375 to the Investment Fund and, by virtue of such contribution, is entitled to substantially all of the tax benefits derived from the NMTC. The Investment Fund is a wholly owned subsidiary of Wells Fargo. The loan to the Investment Fund is recorded in other assets in the consolidated balance sheets. The Investment Fund then contributed the proceeds to a CDE, which, in turn, loaned combined funds of $6,563, net of debt issuance costs, to Village Super Market of NY, LLC, a wholly-owned subsidiary of the Company, at an interest rate of 1.000% per year with a maturity date of December 31, 2051. These loans are secured by the leasehold improvements and equipment related to the construction of the Bronx store. Repayment of the loans commences in March 2025. The proceeds of the loans from the CDE were used to partially fund the construction of the Bronx store. The Notes payable related to New Markets Tax Credit, net of debt issuance costs, are recorded in long-term debt in the consolidated balance sheets. |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES | 3 Months Ended |
Oct. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITIES | DERIVATIVES AND HEDGING ACTIVITIES The Company is exposed to interest rate risk arising from fluctuations in LIBOR related to the Company’s Credit Facility. The Company manages exposure to this risk and the variability of related cash flows primarily by the use of derivative financial instruments, specifically, interest rate swaps. The Company’s objectives in using interest rate swaps are to add stability to interest expense and to manage its exposure to interest rate movements. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. In 2020, the Company executed two interest rate swaps with an aggregate notional value of $75,500 to hedge the variable cash flows associated with variable-rate loans under the Company's Credit Facility. The interest rate swaps were executed for risk management and are not held for trading purposes. The objective of the interest rate swaps is to hedge the variability of cash flows resulting from fluctuations in LIBOR. The swaps replaced the applicable LIBOR with fixed interest rates and payments are settled monthly when payments are made on the variable-rate loans. The Company's derivatives qualify and have been designated as cash flow hedges of interest rate risk. The gain or loss on the derivative is recorded in Accumulated other comprehensive loss and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. Amounts reported in Accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are made on the variable-rate loans. The Company reclassified $88 and $66 during the 13 weeks ended October 30, 2021 and October 24, 2020, respectively, from Accumulated other comprehensive loss to Interest expense. |
BASIS OF PRESENTATION and ACC_2
BASIS OF PRESENTATION and ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Oct. 30, 2021 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | The following table presents the Company's sales by product categories during each of the periods indicated: 13 Weeks Ended October 30, 2021 October 24, 2020 Amount % Amount % Center Store (1) $ 295,974 59.9 % $ 295,940 60.4 % Fresh (2) 179,823 36.4 175,644 35.8 Pharmacy 16,848 3.4 16,432 3.4 Other (3) 1,566 0.3 2,120 0.4 Total Sales $ 494,211 100.0 % $ 490,136 100.0 % (1) Consists primarily of grocery, dairy, frozen, health and beauty care, general merchandise and liquor. (2) Consists primarily of produce, meat, deli, seafood, bakery, prepared foods and floral. |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 3 Months Ended |
Oct. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | 13 Weeks Ended October 30, 2021 Class A Class B Numerator: Net income allocated, basic $ 5,538 $ 1,566 Conversion of Class B to Class A shares 1,566 — Net income allocated, diluted $ 7,104 $ 1,566 Denominator: Weighted average shares outstanding, basic 9,864 4,294 Conversion of Class B to Class A shares 4,294 — Weighted average shares outstanding, diluted 14,158 4,294 13 Weeks Ended October 24, 2020 Class A Class B Numerator: Net income allocated, basic $ 2,526 $ 716 Conversion of Class B to Class A shares 716 — Net income allocated, diluted $ 3,242 $ 716 Denominator: Weighted average shares outstanding, basic 9,850 4,294 Conversion of Class B to Class A shares 4,294 — Weighted average shares outstanding, diluted 14,144 4,294 |
PENSION PLANS (Tables)
PENSION PLANS (Tables) | 3 Months Ended |
Oct. 30, 2021 | |
Compensation Related Costs [Abstract] | |
Schedule of Net Benefit Costs | Net periodic pension cost for the three defined benefit pension plans sponsored in fiscal 2022 and 2021 includes the following components: 13 Weeks Ended October 30, October 24, Service cost $ 47 $ 54 Interest cost on projected benefit obligations 420 422 Expected return on plan assets (409) (483) Amortization of net losses 126 147 Net periodic pension cost $ 184 $ 140 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Oct. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of: October 30, July 31, Secured term loan $ 46,199 $ 47,025 Unsecured term loan 20,206 21,104 New Market Tax Credit Financing 5,612 5,674 Total debt, excluding obligations under leases 72,017 73,803 Less current portion 6,976 6,976 Total long-term debt, excluding obligations under leases $ 65,041 $ 66,827 |
BASIS OF PRESENTATION and ACC_3
BASIS OF PRESENTATION and ACCOUNTING POLICIES - Disaggregated Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 30, 2021 | Oct. 24, 2020 | |
Revenue from External Customer [Line Items] | ||
Sales | $ 494,211 | $ 490,136 |
Percentage of total sales | 100.00% | 100.00% |
Center Store | ||
Revenue from External Customer [Line Items] | ||
Sales | $ 295,974 | $ 295,940 |
Percentage of total sales | 59.90% | 60.40% |
Fresh | ||
Revenue from External Customer [Line Items] | ||
Sales | $ 179,823 | $ 175,644 |
Percentage of total sales | 36.40% | 35.80% |
Pharmacy | ||
Revenue from External Customer [Line Items] | ||
Sales | $ 16,848 | $ 16,432 |
Percentage of total sales | 3.40% | 3.40% |
Other | ||
Revenue from External Customer [Line Items] | ||
Sales | $ 1,566 | $ 2,120 |
Percentage of total sales | 0.30% | 0.40% |
MERCHANDISE INVENTORIES (Detail
MERCHANDISE INVENTORIES (Details) - USD ($) $ in Thousands | Oct. 30, 2021 | Jul. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Percentage of LIFO inventory | 62.00% | 62.00% |
Inventory, LIFO reserve | $ 15,571 | $ 15,321 |
NET INCOME PER SHARE - Addition
NET INCOME PER SHARE - Additional Information (Details) shares in Thousands | 3 Months Ended | |
Oct. 30, 2021class_common_stockshares | Oct. 24, 2020shares | |
Earnings Per Share [Abstract] | ||
Number of common stock classes | class_common_stock | 2 | |
Common stock cash dividends, percent Class A is entitled greater than Class B | 54.00% | |
Restricted Stock Units (RSUs) | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Class A shares excluded from computation of earnings per share | 388 | 416 |
Common Class A | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Class A shares excluded from computation of earnings per share | 102 | 154 |
NET INCOME PER SHARE - Schedule
NET INCOME PER SHARE - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Oct. 30, 2021 | Oct. 24, 2020 | |
Common Class A | ||
Numerator: | ||
Net income allocated, basic | $ 5,538 | $ 2,526 |
Conversion of Class B to Class A shares | 1,566 | 716 |
Net income allocated, diluted | $ 7,104 | $ 3,242 |
Denominator: | ||
Weighted average shares outstanding, basic (in shares) | 9,864 | 9,850 |
Conversion of Class B to Class A shares (in shares) | 4,294 | 4,294 |
Weighted average shares outstanding, diluted (in shares) | 14,158 | 14,144 |
Common Class B | ||
Numerator: | ||
Net income allocated, basic | $ 1,566 | $ 716 |
Conversion of Class B to Class A shares | 0 | 0 |
Net income allocated, diluted | $ 1,566 | $ 716 |
Denominator: | ||
Weighted average shares outstanding, basic (in shares) | 4,294 | 4,294 |
Conversion of Class B to Class A shares (in shares) | 0 | 0 |
Weighted average shares outstanding, diluted (in shares) | 4,294 | 4,294 |
PENSION PLANS - Schedule of Net
PENSION PLANS - Schedule of Net Benefit Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 30, 2021 | Oct. 24, 2020 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | $ 47 | $ 54 |
Interest cost on projected benefit obligations | 420 | 422 |
Expected return on plan assets | (409) | (483) |
Amortization of net losses | 126 | 147 |
Net periodic pension cost | $ 184 | $ 140 |
PENSION PLANS - Additional Info
PENSION PLANS - Additional Information (Details) | 3 Months Ended | |
Oct. 30, 2021USD ($)defined_benefit_pension_plan | Jul. 31, 2021USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||
Number of defined benefit pension plans | defined_benefit_pension_plan | 3 | |
Employer contributions in current fiscal year | $ 0 | |
Village Super Market, Inc. Employees’ Retirement Plan | Supplemental Employee Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Funded status, net liability | $ 3,844,000 |
RELATED PARTY INFORMATION (Deta
RELATED PARTY INFORMATION (Details) - USD ($) $ in Thousands | Oct. 30, 2021 | Jul. 31, 2021 |
Investee | ||
Related Party Transaction [Line Items] | ||
Demand deposits at Wakefern | $ 75,850 | $ 86,670 |
DEBT - Schedule of Long-term De
DEBT - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Oct. 30, 2021 | Jul. 31, 2021 |
Debt Instrument [Line Items] | ||
Total debt, excluding obligations under leases | $ 72,017 | $ 73,803 |
Less current portion | 6,976 | 6,976 |
Total long-term debt, excluding obligations under leases | 65,041 | 66,827 |
Line of Credit | Secured Debt | ||
Debt Instrument [Line Items] | ||
Total debt, excluding obligations under leases | 46,199 | 47,025 |
Line of Credit | Medium-term Notes | ||
Debt Instrument [Line Items] | ||
Total debt, excluding obligations under leases | 20,206 | 21,104 |
Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Total debt, excluding obligations under leases | $ 5,612 | $ 5,674 |
DEBT - Additional Information (
DEBT - Additional Information (Details) - USD ($) | Sep. 01, 2020 | May 12, 2020 | May 06, 2020 | Dec. 29, 2017 | Dec. 29, 2024 | Oct. 30, 2021 | Jul. 31, 2021 |
Debt Instrument [Line Items] | |||||||
Loans receivable | $ 4,835,000 | ||||||
Interest on unrelated party note receivable percentage | 1.403% | ||||||
Third party contribution to investment fund | $ 2,375,000 | ||||||
Notes payable related to New Markets Tax Credit | $ 6,563,000 | $ 65,041,000 | $ 66,827,000 | ||||
Interest rate, stated percentage | 1.00% | ||||||
Scenario, Forecast | |||||||
Debt Instrument [Line Items] | |||||||
Benefit over recapture period | $ 1,728,000 | ||||||
Credit Agreement with Wells Fargo National Bank, National Association | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 150,500,000 | ||||||
Credit Agreement with Wells Fargo National Bank, National Association | Line of Credit | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 75,000,000 | 125,000,000 | |||||
Revolving credit conversion to secured term loan | $ 50,000,000 | ||||||
Credit Agreement with Wells Fargo National Bank, National Association | Line of Credit | Medium-term Notes | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 25,500,000 | ||||||
Debt term | 7 years | ||||||
Effective interest rate | 1.76% | ||||||
Credit Agreement with Wells Fargo National Bank, National Association | Line of Credit | Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 25,000,000 | ||||||
Debt outstanding | $ 7,336,000 | ||||||
Credit Agreement with Wells Fargo National Bank, National Association | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt term | 15 years | ||||||
Effective interest rate | 2.19% | ||||||
London Interbank Offered Rate (LIBOR) | Credit Agreement with Wells Fargo National Bank, National Association | Line of Credit | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt, basis spread on variable rate | 1.10% | ||||||
London Interbank Offered Rate (LIBOR) | Credit Agreement with Wells Fargo National Bank, National Association | Line of Credit | Medium-term Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt, basis spread on variable rate | 1.35% | ||||||
Derivative, fixed rate | 0.41% | ||||||
London Interbank Offered Rate (LIBOR) | Credit Agreement with Wells Fargo National Bank, National Association | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt, basis spread on variable rate | 1.50% | ||||||
Interest Rate Swap | Credit Agreement with Wells Fargo National Bank, National Association | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Derivative term | 15 years | ||||||
Interest Rate Swap | London Interbank Offered Rate (LIBOR) | Credit Agreement with Wells Fargo National Bank, National Association | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Derivative, fixed rate | 0.69% |
DERIVATIVES AND HEDGING ACTIV_2
DERIVATIVES AND HEDGING ACTIVITIES - Additional Information (Details) $ in Thousands | 3 Months Ended | ||
Oct. 30, 2021USD ($) | Oct. 24, 2020USD ($) | Jul. 25, 2020USD ($)derivative_instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair of interest rate swaps recorded in other liabilities | $ 2,241 | ||
Interest Rate Swap | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Number of derivative instruments held | derivative_instrument | 2 | ||
Derivative notional amount | 66,728 | $ 75,500 | |
Interest Rate Swap | Interest Expense [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Reclassification of accumulated other comprehensive loss to interest expense | $ 88 | $ 66 |