UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 for the quarterly period ended March 31, 2001
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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
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PUBLIX SUPER MARKETS, INC.
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(Exact name of Registrant as specified in its charter)
Florida 59-0324412
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
1936 George Jenkins Blvd.
Lakeland, Florida 33815
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (863) 688-1188
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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 _______
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The number of shares outstanding of the Registrant's common stock, $1.00 par
value, as of April 30, 2001 was 206,078,147.
Page 1 of 10 pages
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
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PUBLIX SUPER MARKETS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts are in thousands, except share amounts)
ASSETS
March 31, 2001 December 30, 2000
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(Unaudited)
Current Assets
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Cash and cash equivalents $ 487,829 396,906
Short-term investments 14,356 21,028
Trade receivables 89,227 102,126
Merchandise inventories 774,698 814,985
Deferred tax assets 61,705 55,598
Prepaid expenses 7,605 2,274
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Total Current Assets 1,435,420 1,392,917
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Long-term investments 471,517 434,226
Other noncurrent assets 34,514 28,354
Property, plant and equipment 3,802,188 3,657,252
Accumulated depreciation (1,346,055) (1,290,929)
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Total Assets $4,397,584 4,221,820
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
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Accounts payable $ 651,764 676,924
Accrued contribution to retirement plans 110,356 250,832
Accrued salaries and wages 70,533 57,090
Accrued self-insurance reserves 90,098 84,095
Federal and state income taxes 95,776 29,668
Other 175,081 117,532
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Total Current Liabilities 1,193,608 1,216,141
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Deferred tax liabilities, net 154,107 152,830
Self-insurance reserves 114,130 109,423
Accrued postretirement benefit cost 64,425 62,986
Other noncurrent liabilities 16,439 18,005
Stockholders' Equity
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Common stock of $1 par value. Authorized
300,000,000 shares; issued 207,716,755
shares at March 31, 2001 and 204,972,803
shares at December 30, 2000 207,717 204,973
Additional paid-in capital 344,337 212,947
Reinvested earnings 2,337,270 2,252,661
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2,889,324 2,670,581
Less 600,705 treasury shares
at March 31, 2001, at cost (28,984) ---
Accumulated other comprehensive earnings (5,465) (8,146)
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Total Stockholders' Equity 2,854,875 2,662,435
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Total Liabilities and Stockholders'
Equity $4,397,584 4,221,820
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See accompanying notes to condensed consolidated financial statements.
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PUBLIX SUPER MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts are in thousands, except per share and share amounts)
Three Months Ended
March 31, 2001 March 25, 2000
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(Unaudited)
Revenues
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Sales $ 3,917,490 3,614,322
Other income, net 39,761 34,930
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Total revenues 3,957,251 3,649,252
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Costs and expenses
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Cost of merchandise sold, including store
occupancy, warehousing and delivery
expenses 2,896,455 2,691,830
Operating and administrative expenses 825,085 735,196
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Total costs and expenses 3,721,540 3,427,026
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Earnings before income tax expense 235,711 222,226
Income tax expense 84,825 79,863
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Net earnings $ 150,886 142,363
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Weighted average number of common
shares outstanding 205,241,255 213,832,605
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Basic and diluted earnings per common
share based on weighted average shares
outstanding $ .74 .67
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Cash dividends paid per common share None None
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS
(Amounts are in thousands)
Three Months Ended
March 31, 2001 March 25, 2000
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(Unaudited)
Net earnings $ 150,886 142,363
Other comprehensive earnings
Unrealized gain (loss) on investment
securities available-for-sale,
net of tax effect of $1,949 and
($3,119) in 2001 and 2000, respectively 3,103 (4,966)
Reclassification adjustment for net
realized (gain) loss on investment
securities available-for-sale, net
of tax effect of ($265) and $870 in
2001 and 2000, respectively (422) 1,385
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Comprehensive earnings $ 153,567 138,782
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See accompanying notes to condensed consolidated financial statements.
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PUBLIX SUPER MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts are in thousands)
Three Months Ended
March 31, 2001 March 25, 2000
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(Unaudited)
Cash flows from operating activities
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Cash received from customers $ 3,956,095 3,660,352
Cash paid to employees and suppliers (3,515,285) (3,230,612)
Dividends and interest received 13,220 14,873
Income taxes paid (25,230) (15,801)
Payment for self-insured claims (41,134) (34,381)
Other operating cash receipts 218 200
Other operating cash payments (1,464) (1,167)
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Net cash provided by operating
activities 386,420 393,464
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Cash flows from investing activities
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Payment for property, plant and
equipment (155,665) (121,588)
Proceeds from sale of property, plant
and equipment 502 926
Payment for investment securities -
available-for-sale (AFS) (49,163) (20,011)
Proceeds from sale and maturity of
investment securities - AFS 22,303 13,734
Other, net (6,031) 549
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Net cash used in investing activities (188,054) (126,390)
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Cash flows from financing activities
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Proceeds from sale of common stock 25,817 21,212
Payment for acquisition of common stock (133,260) (252,476)
Other, net --- (131)
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Net cash used in financing activities (107,443) (231,395)
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Net increase in cash and cash equivalents 90,923 35,679
Cash and cash equivalents at beginning
of period 396,906 626,636
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Cash and cash equivalents at end of period $ 487,829 662,315
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See accompanying notes to condensed consolidated financial statements.
(Continued)
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PUBLIX SUPER MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Amounts are in thousands)
Three Months Ended
March 31, 2001 March 25, 2000
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(Unaudited)
Reconciliation of net earnings to net cash
provided by operating activities
Net earnings $ 150,886 142,363
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and amortization 60,867 54,008
Retirement contributions paid or payable
in common stock 61,840 57,413
Deferred income taxes (6,513) (865)
Loss on sale of property, plant and
equipment 4,497 3,971
(Gain) loss on sale of investments (687) 2,255
Self-insurance reserves in excess of
current payments 10,710 6,441
Postretirement accruals in excess of
current payments 1,439 1,858
Decrease in advance purchase
allowances (1,566) (1,565)
Other, net 1,152 903
Change in cash from:
Trade receivables 12,899 23,860
Merchandise inventories 40,287 61,747
Prepaid expenses (5,331) (5,093)
Accounts payable and accrued expenses (10,168) (18,759)
Federal and state income taxes 66,108 64,927
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Total adjustments 235,534 251,101
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Net cash provided by operating activities $ 386,420 393,464
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See accompanying notes to condensed consolidated financial statements.
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PUBLIX SUPER MARKETS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. The accompanying condensed consolidated financial statements included
herein are unaudited; however, in the opinion of management, such
information reflects all adjustments (consisting solely of normal recurring
adjustments) which are necessary for the fair statement of results for the
interim period. These condensed consolidated financial statements should be
read in conjunction with the fiscal 2000 Form 10-K Annual Report of the
Company.
2. Due to the seasonal nature of the Company's business, the results for the
three months ended March 31, 2001 are not necessarily indicative of the
results for the entire 2001 fiscal year.
3. The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities as of 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.
4. Certain 2000 amounts have been reclassified to conform with the 2001
presentation.
5. In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standard No. 133, "Accounting for Derivative
Instruments and Hedging Activities," (SFAS 133) effective for fiscal years
beginning after June 15, 1999. In June 1999, the Financial Accounting
Standards Board issued Statement of Financial Accounting Standard No. 137,
"Accounting for Derivative Instruments and Hedging Activities - Deferral of
the Effective Date of FASB Statement No. 133" (SFAS 137) which deferred the
effective date of adoption of SFAS 133 for one year. SFAS 133 requires that
derivatives be carried at fair value and provides for hedge accounting when
certain conditions are met. The Company does not have derivatives or enter
into hedging activities as defined by SFAS 133, therefore, the adoption of
SFAS 133 did not have any material effect on the Company's financial
condition, results of operations or cash flows.
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PUBLIX SUPER MARKETS, INC.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
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of Operations
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Liquidity and Capital Resources
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Operating activities continue to be the Company's primary source of
liquidity. Net cash provided by operating activities was approximately $386.4
million in the quarter ended March 31, 2001, as compared with $393.5 million in
the quarter ended March 25, 2000. Cash and cash equivalents totaled $487.8
million as of March 31, 2001, as compared with $662.3 million as of March 25,
2000.
Capital expenditures totaled approximately $155.7 million in the quarter
ended March 31, 2001. These expenditures were primarily incurred in connection
with the opening of 11 new stores and remodeling or expanding 19 stores. In
addition, the Company closed nine stores. The net impact of new and closed
stores (net new stores) added an additional .17 million square feet in the first
quarter of 2001, a .59% increase. Significant expenditures were also incurred in
the expansion of warehouses in Lakeland, Florida and the development of an
online grocery shopping service, PublixDirect. Capital expenditures totaled
approximately $121.6 million in the quarter ended March 25, 2000. These
expenditures were primarily incurred in connection with the opening of 14 new
stores and remodeling or expanding 18 stores. In addition, the Company closed
two stores. Net new stores added an additional .55 million square feet in the
first quarter of 2000, a 1.98% increase. Significant expenditures were also
incurred in the expansion of warehouses in Lakeland, Florida.
Capital expenditures for the remainder of 2001, primarily made up of new
store, warehouse and office construction, remodeling or expanding of many
existing stores, new or enhanced information technology applications and the
continued development of PublixDirect, are expected to be approximately $544.3
million. This capital program is subject to continuing change and review. The
remaining 2001 capital expenditures are expected to be financed by internally
generated funds and current liquid assets. In the normal course of operations,
the Company replaces stores and closes unprofitable stores. The impact of future
store closings is not expected to be material.
The Company currently repurchases common stock at the stockholders' request
in accordance with the terms of the Company's Employee Stock Purchase Plan. Net
common stock repurchases under this plan totaled approximately $107.4 million in
the quarter ended March 31, 2001, as compared with $231.3 million in the quarter
ended March 25, 2000. The Company expects to continue to repurchase its common
stock, as offered by its stockholders from time to time, at its then currently
appraised value. However, such purchases are not required and the Company
retains the right to discontinue them at any time.
On March 1, 2001, the Company declared a cash dividend of $.32 per share
payable on June 1, 2001, to stockholders of record as of the close of business
March 30, 2001.
Cash generated in excess of the amount needed for current operations,
capital expenditures and common stock repurchases is invested in short-term and
long-term investments. Management believes the Company's liquidity will continue
to be strong.
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Operating Results
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Sales for the first quarter of 2001 were $3.9 billion as compared with $3.6
billion in the same quarter in 2000, an 8.4% increase. This reflects an increase
of $148.2 million or 4.1% in sales from stores that were open for all of both
quarters (comparable stores) and sales of $155.0 million or 4.3% from net new
stores since the beginning of the first quarter of 2000.
Cost of merchandise sold including store occupancy, warehousing and
delivery expenses, as a percentage of sales, was approximately 73.9% for the
quarter ended March 31, 2001 and 74.5% for the quarter ended March 25, 2000. The
decrease in cost of merchandise sold, as a percentage of sales, was primarily
due to continuing improvements in buying practices, promotional efficiencies and
a shifting of the sales mix toward higher margin products.
Operating and administrative expenses, as a percentage of sales, were
approximately 21.1% and 20.3% for the quarters ended March 31, 2001 and March
25, 2000, respectively. The increase in operating and administrative expenses,
as a percentage of sales, was primarily due to higher employee benefit costs and
higher utility costs.
Cautionary Note Regarding Forward-Looking Statements
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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," "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 regulation, 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 and stability of product
costs. 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.
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PUBLIX SUPER MARKETS, INC.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
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There have been no material developments in the legal proceedings described
in the Company's Form 10-K for the year ended December 30, 2000. In addition,
there have been no new material legal proceedings initiated against the Company
since the filing of the Company's Form 10-K.
The Company is also a party in various legal claims and actions considered
in the normal course of business. In the opinion of management, the ultimate
resolution of these legal proceedings will not have a material adverse effect on
the Company's financial condition, results of operations or cash flows.
Item 2. Changes in Securities
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Not Applicable.
Item 3. Defaults Upon Senior Securities
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Not Applicable.
Item 4. Submission of Matters to a Vote of Security Holders
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Not Applicable.
Item 5. Other Information
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Not Applicable.
Item 6(a) Exhibits
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10. Indemnification Agreement, in the form attached hereto as Exhibit 10,
between the Company and all of its current directors and officers. Such
directors and officers are listed as follows:
John A. Attaway, Jr. Howard M. Jenkins
Carol Jenkins Barnett Tina P. Johnson
Hoyt R. Barnett Linda S. Kane
Jesse L. Benton James J. Lobinsky
David E. Bornmann E. Vane McClurg
David E. Bridges Thomas M. McLaughlin
Joseph W. Carvin Sharon A. Miller
R. Scott Charlton Robert H. Moore
W. Edwin Crenshaw Thomas M. O'Connor
David S. Duncan David P. Phillips
William V. Fauerbach Henry J. Pileggi, Jr.
John R. Frazier James H. Rhodes II
Mark C. Hollis Daniel M. Risener
M. Clayton Hollis, Jr. Richard J. Schuler II
Mark R. Irby Edward T. Shivers
Charles H. Jenkins, Jr. William H. Vass
21. Subsidiaries of the Company.
Item 6(b) Reports on Form 8-K
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No reports on Form 8-K were filed during the quarter ended March 31, 2001.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed in its behalf by the
undersigned thereunto duly authorized.
PUBLIX SUPER MARKETS, INC.
Date: May 11, 2001 /s/ John A. Attaway, Jr.
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John A. Attaway, Jr., Secretary
Date: May 11, 2001 /s/ David P. Phillips
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David P. Phillips, Chief Financial Officer
and Treasurer (Principal Financial and
Accounting Officer)
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