UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark One)
[X] | QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
For the quarterly period ended: October 29, 2005
OR
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
Commission File No. 0-2633
VILLAGE SUPER MARKET, INC.
(Exact name of registrant as specified in its charter)
NEW JERSEY | 22-1576170 |
(State or other jurisdiction of incorporation or organization) | (I. R. S. Employer Identification No.) |
733 MOUNTAIN AVENUE, SPRINGFIELD, NEW JERSEY | 07081 |
(Address of principal executive offices) | (Zip Code) |
(973) 467-2200
(Registrant's telephone number, including area code)
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 |
Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes | No | X |
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:
December 2, 2005 | |
Class A Common Stock, No Par Value | 1,641,813 Shares |
Class B Common Stock, No Par Value | 1,594,076 Shares |
VILLAGE SUPER MARKET, INC.
INDEX
PART I | PAGE NO. |
FINANCIAL INFORMATION | |
Item 1. Financial Statements (Unaudited) | |
Consolidated Condensed Balance Sheets | 3 |
Consolidated Condensed Statements of Operations | 4 |
Consolidated Condensed Statements of Cash Flows | 5 |
Notes to Consolidated Condensed Financial Statements | 6-7 |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | 7-10 |
Item 3. Quantitative & Qualitative Disclosures about Market Risk | 11 |
Item 4. Controls and Procedures | 11-12 |
PART II | |
OTHER INFORMATION | |
Item 6. Exhibits | 12 |
Signatures | 12 |
2
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
VILLAGE SUPER MARKET, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in Thousands)
(Unaudited)
October 29, 2005 | July 30, 2005 | ||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 56,792 | $ | 62,842 | |||
Merchandise inventories | 30,603 | 30,176 | |||||
Patronage dividend receivable | 7,652 | 5,470 | |||||
Other current assets | 7,925 | 7,105 | |||||
Total current assets | 102,972 | 105,593 | |||||
Property, equipment and fixtures, net | 120,163 | 119,903 | |||||
Investment in related party, at cost | 15,670 | 15,670 | |||||
Goodwill | 10,605 | 10,605 | |||||
Other assets | 2,840 | 2,722 | |||||
TOTAL ASSETS | $ | 252,250 | $ | 254,493 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current liabilities | |||||||
Current portion of long-term debt | $ | 5,982 | $ | 6,211 | |||
Current portion of notes payable to related party | 600 | 607 | |||||
Accounts payable to related party | 39,634 | 40,910 | |||||
Accounts payable and accrued expenses | 21,888 | 21,551 | |||||
Total current liabilities | 68,104 | 69,279 | |||||
Long-term debt | 28,097 | 32,751 | |||||
Notes payable to related party | 654 | 799 | |||||
Other liabilities | 18,918 | 18,420 | |||||
Commitments and contingencies | |||||||
Shareholders' equity | |||||||
Class A common stock - no par value, issued 1,818 shares | 20,099 | 19,834 | |||||
Class B common stock - no par value, 1,594 shares issued and outstanding | 1,035 | 1,035 | |||||
Retained earnings | 122,475 | 119,507 | |||||
Accumulated other comprehensive loss | (4,662 | ) | (4,662 | ) | |||
Less cost of 176 Class A treasury shares | (2,470 | ) | (2,470 | ) | |||
Total shareholders’ equity | 136,477 | 133,244 | |||||
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY | $ | 252,250 | $ | 254,493 | |||
See accompanying Notes to Consolidated Condensed Financial Statements.
3
VILLAGE SUPER MARKET, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in Thousands Except Per Share Amounts)
(Unaudited)
13 Weeks Ended | 13 Weeks Ended | ||||||
October 29, 2005 | October 30, 2004 | ||||||
Sales | $ | 243,445 | $ | 237,352 | |||
Cost of sales | 180,036 | 177,478 | |||||
Gross profit | 63,409 | 59,874 | |||||
Operating and administrative expense | 55,090 | 52,557 | |||||
Depreciation and amortization | 2,802 | 2,381 | |||||
Operating income | 5,517 | 4,936 | |||||
Interest expense, net | 427 | 381 | |||||
Income before income taxes | 5,090 | 4,555 | |||||
Income taxes | 2,122 | 1,868 | |||||
Net income | $ | 2,968 | $ | 2,687 | |||
Net income per share: | |||||||
Basic | $ | .93 | $ | .85 | |||
Diluted | $ | .92 | $ | .85 |
See accompanying Notes to Consolidated Condensed Financial Statements.
4
VILLAGE SUPER MARKET, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in Thousands)
(Unaudited)
13 Wks. Ended | 13 Wks.Ended | ||||||
Oct. 29, 2005 | Oct. 30, 2004 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 2,968 | $ | 2,687 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Gain on sale of assets | (410 | ) | - | ||||
Depreciation and amortization | 2,802 | 2,381 | |||||
Deferred taxes | 300 | - | |||||
Provision to value inventories at LIFO | 250 | 250 | |||||
Non-cash share-based compensation | 265 | 17 | |||||
Tax benefit from exercise of stock options | - | 36 | |||||
Changes in assets and liabilities: | |||||||
(Increase) in merchandise inventories | (677 | ) | ( 305 | ) | |||
(Increase) in patronage dividend receivable | (2,182 | ) | (2,134 | ) | |||
(Increase) in other current assets | ( 820 | ) | (1,952 | ) | |||
(Increase) in other assets | ( 128 | ) | ( 123 | ) | |||
Increase (decrease) in accounts | |||||||
payable to related party | (1,276 | ) | 882 | ||||
Increase (decrease) in accounts payable and | |||||||
accrued expenses | 1,178 | (1,184 | ) | ||||
Increase in other liabilities | 198 | 292 | |||||
Net cash provided by operating activities | 2,468 | 847 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Capital expenditures | (3,072 | ) | (6,026 | ) | |||
Proceeds from sale of assets | 430 | - | |||||
Net cash used in investing activities | (2,642 | ) | (6,026 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from exercise of stock options | -- | 45 | |||||
Principal payments of long-term debt | (5,035 | ) | (4,996 | ) | |||
Dividends | ( 841 | ) | ( 438 | ) | |||
Net cash used in financial activities | (5,876 | ) | (5,389 | ) | |||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (6,050 | ) | (10,568 | ) | |||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 62,842 | 36,972 | |||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 56,792 | $ | 26,404 | |||
SUPPLEMENTAL DISCLOSURES OF CASH PAYMENTS MADE FOR | |||||||
Interest | $ | 1,289 | $ | 1,112 | |||
Income taxes | $ | 300 | $ | 30 | |||
NONCASH SUPPLEMENTAL DISCLOSURES: | |||||||
Capital lease obligation incurred | $ | - | $ | 11,258 |
See accompanying Notes to Consolidated Condensed Financial Statements.
5
VILLAGE SUPER MARKET, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(in Thousands)
(Unaudited)
1. | In the opinion of management, the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of normal and recurring accruals) necessary to present fairly the consolidated financial position as of October 29, 2005 and the consolidated results of operations and cash flows for the 13 week periods ended October 29, 2005 and October 30, 2004. |
The significant accounting policies followed by Village Super Market, Inc. (the “Company”) are set forth in Note 1 to the Company's consolidated financial statements in the July 30, 2005 Village Super Market, Inc. Annual Report on Form 10-K, which should be read in conjunction with these financial statements.
2. | The results of operations for the period ended October 29, 2005 are not necessarily indicative of the results to be expected for the full year. |
3. | Certain amounts have been reclassified in the October 29, 2004 consolidated condensed financial statements to conform to the October 29, 2005 presentation. These reclassifications include offsetting increases in net cash provided by operating activities and net cash used in financing activities of $438. |
4. | At both October 29, 2005 and July 30, 2005, approximately 70% 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 $11,789 and $11,539 higher than reported at October 29, 2005 and July 30, 2005, respectively. |
5. | The number of common shares outstanding for calculation of net income per share is as follows: |
October 29, | October 30, | ||||||
2005 | 2004 | ||||||
Weighted average shares outstanding - basic | 3,184 | 3,153 | |||||
Dilutive effect of stock-based compensation | 51 | 23 | |||||
Weighted average shares outstanding - diluted | 3,235 | 3,176 |
No securities were excluded from the calculation of diluted net income per share.
6
6. | Comprehensive income was $2,968 and $2,687 for the quarters ended October 29, 2005 and October 30, 2004, respectively, the same as net income in each quarter. |
7. | The Company sponsors four defined benefit pension plans. Net periodic pension costs for the four plans includes the following components: |
13 Weeks Ended | 13 Weeks Ended | ||||||
October 29, 2005 | October 30, 2004 | ||||||
Service cost | $ | 524 | $ | 396 | |||
Interest cost on projected benefit obligations | 363 | 280 | |||||
Expected return on plan assets | (263 | ) | (186 | ) | |||
Net amortization and deferral | 269 | 110 | |||||
Net periodic pension cost | $ | 893 | $ | 600 |
As of October 29, 2005, the Company has contributed $63 to its pension plans in fiscal 2006. The Company expects to contribute an additional $1,937 during the remainder of fiscal 2006 to fund its pension plans.
ITEM 2.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
(Dollars in Thousands)
OVERVIEW
The Company operates a chain of 23 ShopRite supermarkets in New Jersey and eastern Pennsylvania. The Company is the second largest member of Wakefern Food Corporation (“Wakefern”), the nation’s largest retailer-owned food cooperative. As further described in the Company’s Form 10-K, this ownership interest in Wakefern provides the Company many of the economies of scale in purchasing, distribution, advanced retail technology and advertising associated with larger chains.
The Company’s stores, five of which are owned, average 55,000 total square feet. Larger store sizes enable the Company to offer the specialty departments that customers desire for one-stop shopping, including pharmacies, natural and organic departments, ethnic and international foods, and home meal replacement. On October 27, 2004, the Company opened an 80,000 square foot store in Somers Point, New Jersey to replace a smaller store.
7
We consider a variety of indicators to evaluate our performance, such as same store sales; sales per store; percentage of total sales by department (mix); shrink; departmental gross profit percentage; sales per labor hour; and hourly labor rates. In recent years, the Company, as well as many of our competitors, has experienced increases in employee health and pension costs under union contracts and for non-union associates. In addition, rates charged by utilities for electricity and gas increased in fiscal 2005 and 2004, and that trend continues in fiscal 2006.
RESULTS OF OPERATIONS
Sales. Sales were $243,445 in the first quarter of fiscal 2006, an increase of 2.6% from the first quarter of the prior year. Sales increased due to the opening of the Somers Point replacement store (October 27, 2004) and a 2.0% increase in same store sales. Same store sales increased due to improved sales in the recently remodeled Bernardsville and Springfield stores and higher sales in one store due to the closing of a competitor’s store. These same store sales improvements were partially offset by reduced sales in certain stores due to competitive store openings. New stores and replacement stores are included in same store sales in the quarter after the store has been in operation for four full quarters. Store renovations are included in same store sales immediately.
Gross Profit. Gross profit as a percentage of sales increased to 26.0% in the first quarter of fiscal 2006 compared to 25.2% in the first quarter of the prior year. As a percentage of sales, gross profit increased primarily due to improved product mix, higher gross margins in most departments and reduced warehousing and related charges from Wakefern (.10%).
Operating and Administrative Expense. Operating and administrative expense as a percentage of sales increased to 22.6% in the first quarter of fiscal 2006 compared to 22.1% in the first quarter of the prior year. As a percentage of sales, operating and administrative expense increased primarily due to higher fringe benefit costs (.31%), utility costs (.10%), supply costs (.07%) and amounts accrued related to a non-income tax state audit (.23%). These increases were partially offset by a gain on the sale of assets (.17%). Fringe benefit costs increased primarily due to increased expense for employee health and pension plans and compensation costs recognized under share-based compensation plans. Utility and supply costs increased primarily due to higher energy prices.
Depreciation and Amortization. Depreciation and amortization expense increased in the first quarter of fiscal 2006 compared to the first quarter of the prior year primarily due to depreciation on the fixed asset additions related to the expansion and remodels of the Bernardsville and Springfield stores and the Somers Point replacement store.
8
Interest Expense, net. Interest expense, net of interest income, increased to $427 in the first quarter of fiscal 2006 compared to $381 in the first quarter of the prior year due to interest expense of $303 for the Somers Point replacement store capital lease. This increase was partially offset by lower interest expense due to debt payments and increased interest income from higher rates received on excess cash invested at Wakefern.
Income Taxes. The effective income tax rate was 41.7% in the first quarter of fiscal 2006 compared to 41.0% in the first quarter of the prior year.
CRITICAL ACCOUNTING POLICIES
Critical accounting policies are those accounting policies that management believes are important to the portrayal of the Company’s financial condition and results of operations. These policies require management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. The Company’s critical accounting policies relating to the impairment of long-lived assets and goodwill, accounting for patronage dividends earned as a stockholder of Wakefern, and accounting for pension plans are described in the Company’s Annual Report on Form 10-K for the year ended July 30, 2005. As of October 29, 2005, there have been no changes to any of the critical accounting policies contained therein.
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities was $2,468 in the first quarter of fiscal 2006 compared with $847 in the first quarter of the prior fiscal year. This increase is primarily attributable to a smaller increase in other current assets in the current fiscal year, increased depreciation and amortization, increased deferred taxes and increased non-cash share-based compensation expense.
9
During the first quarter of fiscal 2006, the Company used cash on hand and operating cash flow of $2,468 to fund capital expenditures of $3,072, debt payments of $5,035 and dividends of $841. Major capital expenditures were the ongoing expansion and remodel of the Springfield store and smaller remodels of the Elizabeth and Chester stores. Debt payments made include the third installment of $4,286 on the Company’s unsecured Senior Notes.
Working capital was $34,868 at October 29, 2005 compared to $36,314 at July 30, 2005. The working capital ratio was 1.51 to 1 at October 29, 2005 compared to 1.52 to 1 at July 30, 2005. Working capital declined slightly primarily due to reduced levels of cash resulting from capital expenditures and debt payments during the first quarter of fiscal 2006. The Company’s working capital needs are reduced, since inventory is generally sold by the time payments to Wakefern and other suppliers are due.
The Company has budgeted approximately $12,000 for capital expenditures in fiscal 2006. Planned expenditures include the completion of the expansion and remodel of the Springfield store and the beginning of remodels of the Morris Plains and Rio Grande stores. The Company’s primary sources of liquidity in fiscal 2006 are expected to be cash and cash equivalents on hand and operating cash flow generated in fiscal 2006.
There have been no substantial changes as of October 29, 2005 to the contractual obligations and commitments discussed on page 7 of the Company’s Annual Report on Form 10-K for the year ended July 30, 2005.
RELATED PARTY TRANSACTIONS
A description of the Company’s transactions with Wakefern, its principal supplier, and with other related parties is included on pages 7, 8, 16, 19 and 20 of the Company’s Annual Report on Form 10-K for the year ended July 30, 2005. There have been no significant changes in the Company’s relationship or nature of transactions with related parties during the first quarter of fiscal 2006.
FORWARD-LOOKING STATEMENTS
All statements, other than statements of historical fact, included in this Form 10-Q are or may be considered forward-looking statements within the meaning of federal securities law. The Company cautions the reader that there is no assurance that actual results or business conditions will not differ materially from future results, whether expressed, suggested or implied by such forward-looking statements. The Company undertakes no obligation to update forward-looking statements to reflect developments or information obtained after the date hereof. The following are among the principal factors that could cause actual results to differ from the forward-looking statements: local economic conditions; competitive pressures from the Company’s operating environment; the ability of the Company to maintain and improve its sales and margins; the ability to attract and retain qualified associates; the availability of new store locations; the availability of capital; the liquidity of the Company; the success of operating initiatives; consumer spending patterns; the impact of higher energy prices; increased cost of goods sold, including increased costs from the Company’s principal supplier, Wakefern; the results of union contract negotiations; competitive store openings; the rate of return on pension assets; and other factors detailed herein and in other filings of the Company.
10
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company is exposed to market risks arising from adverse changes in interest rates. As of October 29, 2005, the Company’s only variable rate borrowings relate to an interest rate swap agreement. On October 18, 2001, the Company entered into an interest rate swap agreement with a major financial institution pursuant to which the Company pays a variable rate of six-month LIBOR plus 3.36% (7.81% at October 29, 2005) on an initial notional amount of $10,000 expiring in September 2009 in exchange for a fixed rate of 8.12%. The swap agreement notional amount decreases in amounts and on dates corresponding to the fixed rate obligation it hedges. At October 29, 2005 the remaining notional amount of the swap agreement was $5,714. A 1% increase in interest rates, applied to the Company’s borrowings at October 29, 2005, would result in an annual increase in interest expense and a corresponding reduction in cash flow of approximately $57. The fair value of the Company’s fixed rate debt is also affected by changes in interest rates.
At October 29, 2005, the Company had demand deposits of $41,287 at Wakefern earning interest at prime less 2.5%, or overnight money market rates, which are exposed to the impact of interest rate changes.
ITEM 4. CONTROLS AND PROCEDURES
As required by Rule 13a-15 under the Exchange Act, the Company carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures at the end of the period. This evaluation was carried out under the supervision, and with the participation, of the Company’s management, including the Company’s Chief Executive Officer along with the Company’s Chief Financial Officer. Based upon that evaluation, the Company’s Chief Executive Officer, along with the Company’s Chief Financial Officer, concluded that the Company’s disclosure controls and procedures are effective. There have been no significant changes in internal controls over financial reporting during the first quarter of fiscal 2006.
11
Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in Company reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in Company reports filed under the Exchange Act is accumulated and communicated to management, including the Company’s Chief Executive Officer and Chief Financial Officer as appropriate, to allow timely decisions regarding required disclosure.
PART II - OTHER INFORMATION
Item 6. Exhibits
Exhibit 28(a) | Press Release dated December 6, 2005 | |
Exhibit 31.1 | Certification | |
Exhibit 31.2 | Certification | |
Exhibit 32.1 | Certification (furnished, not filed) | |
Exhibit 32.2 | Certification (furnished, not filed) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Village Super Market, Inc. | ||
Registrant | ||
Date: December 6, 2005 | /s/ James Sumas | |
James Sumas | ||
(Chief Executive Officer) | ||
Date: December 6, 2005 | /s/ Kevin R. Begley | |
Kevin R. Begley | ||
(Chief Financial Officer) |
12
Exhibit 28(a)
VILLAGE SUPER MARKET, INC.
REPORTS RESULTS FOR THE FIRST QUARTER ENDED
OCTOBER 29, 2005
Contact: | Kevin Begley, CFO |
(973) 467-2200, Ext. 220 | |
kevin.begley@wakefern.com |
Springfield, New Jersey - December 6, 2005 - Village Super Market, Inc. (NSD-VLGEA) today reported its results of operations for the first quarter ended October 29, 2005.
Net income was $2,968,000 ($.92 per diluted share) in the first quarter of fiscal 2006, an increase of 10% from the first quarter of the prior year. Net income increased primarily due to improved sales and gross profit percentages, partially offset by increased operating expenses.
Sales were $243,445,000 in the first quarter of fiscal 2006, an increase of 2.6% from the first quarter of the prior year. Sales increased due to the opening of an 80,000 sq. ft. replacement store in Somers Point, New Jersey on October 27, 2004 and a same store sales increase of 2.0%. Same store sales increased due to improved sales in the recently remodeled Bernardsville and Springfield stores and improved sales in one store due to the closing of a competitor’s store. These same store sales improvements were partially offset by reduced sales in certain stores due to competitive store openings.
Village Super Market operates a chain of 23 supermarkets under the ShopRite name in New Jersey and eastern Pennsylvania.
All statements, other than statements of historical fact, included in this Press Release are or may be considered forward-looking statements within the meaning of federal securities law. The Company cautions the reader that there is no assurance that actual results or business conditions will not differ materially from future results, whether expressed, suggested or implied by such forward-looking statements. The Company undertakes no obligation to update forward-looking statements to reflect developments or information obtained after the date hereof. The following are among the principal factors that could cause actual results to differ from the forward-looking statements: local economic conditions; competitive pressures from the Company’s operating environment; the ability of the Company to maintain and improve its sales and margins; the ability to attract and retain qualified associates; the availability of new store locations; the availability of capital; the liquidity of the Company; the success of operating initiatives; consumer spending patterns; the impact of higher energy prices; increased cost of goods sold, including increased costs from the Company’s principal supplier, Wakefern; the results of union contract negotiations; competitive store openings; the rate of return on pension assets; and other factors detailed herein and in the Company’s filings with the SEC.
13
VILLAGE SUPER MARKET, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Dollars in Thousands Except Per Share Amounts)
(Unaudited)
13 Wks. Ended | 13 Wks. Ended | ||||||
October 29, 2005 | October 30, 2004 | ||||||
Sales | $ | 243,445 | $ | 237,352 | |||
Cost of sales | 180,036 | 177,478 | |||||
Gross profit | 63,409 | 59,874 | |||||
Operating and administrative expense | 55,090 | 52,557 | |||||
Depreciation and amortization | 2,802 | 2,381 | |||||
Operating income | 5,517 | 4,936 | |||||
Interest expense, net | 427 | 381 | |||||
Income before income taxes | 5,090 | 4,555 | |||||
Income taxes | 2,122 | 1,868 | |||||
Net income | $ | 2,968 | $ | 2,687 | |||
Net income per share: | |||||||
Basic | $ | .93 | $ | .85 | |||
Diluted | $ | .92 | $ | .85 | |||
Gross profit as a % of sales | 26.0 | % | 25.2 | % | |||
Operating and administrative expense as a % of sales | 22.6 | % | 22.1 | % |
14
Exhibit 31.1
I, James Sumas, certify that:
1. | I have reviewed this quarterly report on Form 10-Q of Village Super Market, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report. |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
c) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s first quarter that has materially effected, or is reasonably likely to materially effect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information and have identified for the registrant’s auditors any material weaknesses in internal controls; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: December 6, 2005 | /s/ James Sumas |
James Sumas | |
Chief Executive Officer |
15
Exhibit 31.2
I, Kevin Begley, certify that:
1. | I have reviewed this quarterly report on Form 10-Q of Village Super Market, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report. |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
c) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s first quarter that has materially effected, or is reasonably likely to materially effect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information and have identified for the registrant’s auditors any material weaknesses in internal controls; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: December 6, 2005 | /s/ Kevin Begley |
Kevin Begley | |
Chief Financial Officer & | |
Principal Accounting Officer |
16
Exhibit 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Village Super Market, Inc. (the “Company”) on Form 10-Q for the period ending October 29, 2005 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, James Sumas, Chief Executive Officer of the Company certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:
1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
/s/ James Sumas | |
James Sumas | |
Chief Executive Officer | |
December 6, 2005 |
17
Exhibit 32.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Village Super Market, Inc. (the “Company”) on Form 10-Q for the period ending October 29, 2005 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Kevin Begley Chief Financial Officer of the Company certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:
1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
/s/ Kevin Begley | |
Kevin Begley | |
Chief Financial Officer & | |
Principal Accounting Officer | |
December 6, 2005 |
18