Weis Markets Inc 10-Q for FY2023 Q3

Weis Markets Inc (WMK)

10-Q 2023-11-09 For: 2023-09-30

Added on April 08, 2026

About this 10-Q

Weis Markets Inc filed this 10-Q on November 9, 2023, covering the quarter ended September 30, 2023 (FY2023 Q3).

Headline figures

Quarter ended September 30, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.16B; up 0.8% from $1.15B a year earlier
Net income: $23.23M; down 19.0% from net income of $28.66M a year earlier
Diluted EPS: $0.86; down 19.6% from $1.07 a year earlier

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Pennsylvania		24-0755415
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1000 S. Second Street
P. O. Box 471		17801-0471
Sunbury, Pennsylvania		(Zip Code)
(Address of principal executive offices)


Large accelerated filer [X]		Accelerated filer [ ]
Non-accelerated filer [ ]		Smaller reporting company [ ]
		Emerging growth company [ ]


Title of each class	Trading symbol	Name of exchange on which registered
Common stock, no par value	WMK	New York Stock Exchange


FORM 10-Q		Page
Part I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets		1
Consolidated Statements of Income		2
Consolidated Statements of Comprehensive Income		3
Consolidated Statements of Shareholders’ Equity		4
Consolidated Statements of Cash Flows		5
Notes to Consolidated Financial Statements		6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		10
Item 3. Quantitative and Qualitative Disclosures about Market Risk		18
Item 4. Controls and Procedures		18
Part II. Other Information
Item 6. Exhibits		19
Signatures		20
Exhibit 31.1 Rule 13a-14(a) Certification – CEO
Exhibit 31.2 Rule 13a-14(a) Certification – CFO
Exhibit 32 Certification Pursuant to 18 U.S.C. Section 1350


(amounts in thousands, except shares)	September 30, 2023		December 31, 2022
Assets
Current:
Cash and cash equivalents	$	64,291	$	157,997
Marketable securities		219,718		186,419
SERP investment		24,131		22,696
Accounts receivable, net		64,509		50,863
Inventories		303,724		293,274
Prepaid expenses and other current assets		42,617		29,921
Total current assets		718,989		741,170
Property and equipment, net		963,295		970,913
Operating lease right-to-use		181,355		175,952
Goodwill		52,330		52,330
Intangible and other assets, net		18,850		18,785
Total assets	$	1,934,819	$	1,959,150

Liabilities
Current:
Accounts payable	$	144,725	$	206,849
Accrued expenses		37,987		57,431
Operating leases		38,563		43,527
Accrued self-insurance		17,159		19,416
Deferred revenue, net		8,915		11,774
Income taxes payable		6,436		6,354
Total current liabilities		253,786		345,351
Postretirement benefit obligations		26,317		25,270
Accrued self-insurance		23,547		23,712
Operating leases		148,344		142,424
Deferred income taxes		115,938		111,225
Other		8,570		9,334
Total liabilities		576,503		657,316
Shareholders’ Equity
Common stock, no par value, 100,800,000 shares authorized, 33,047,807 shares issued, 26,898,443 shares outstanding		9,949		9,949
Retained earnings		1,505,060		1,449,191
Accumulated other comprehensive income (loss) (Net of deferred taxes of $2,105 in 2023 and $2,342 in 2022)		(5,836)		(6,449)
		1,509,173		1,452,691
Treasury stock at cost, 6,149,364 shares		(150,857)		(150,857)
Total shareholders’ equity		1,358,316		1,301,834
Total liabilities and shareholders’ equity	$	1,934,819	$	1,959,150
See accompanying notes to Consolidated Financial Statements.


Registrant’s telephone number, including area code: (570) 286-4571	Registrant’s web address: www.weismarkets.com


		13 Weeks Ended			39 Weeks Ended
(amounts in thousands, except shares and per share amounts)		September 30, 2023		September 24, 2022		September 30, 2023		September 24, 2022
Net sales	$	1,160,306	$	1,150,551	$	3,483,975	$	3,389,853
Cost of sales, including advertising, warehousing and distribution expenses		874,583		862,908		2,613,417		2,516,311
Gross profit on sales		285,723		287,643		870,558		873,542
Operating, general and administrative expenses		256,050		253,985		762,644		750,066
Income from operations		29,673		33,658		107,914		123,476
Investment income (loss) and interest expense		1,409		(1,483)		7,715		(3,394)
Other income (expense)		774		1,214		(1,399)		4,805
Income before provision for income taxes		31,856		33,389		114,230		124,887
Provision for income taxes		8,630		4,731		30,925		28,574
Net income	$	23,226	$	28,658	$	83,305	$	96,313

Weighted-average shares outstanding, basic and diluted		26,898,443		26,898,443		26,898,443		26,898,443
Cash dividends per share	$	0.34	$	0.32	$	1.02	$	0.96
Basic and diluted earnings per share	$	0.86	$	1.07	$	3.10	$	3.58
See accompanying notes to Consolidated Financial Statements.


	13 Weeks Ended				39 Weeks Ended
(amounts in thousands)		September 30, 2023		September 24, 2022		September 30, 2023		September 24, 2022
Net income	$	23,226	$	28,658	$	83,305	$	96,313
Other comprehensive income (loss) by component, net of tax:
Available-for-sale marketable securities
Unrealized holding gains (losses) arising during period (Net of deferred taxes of $347 and $547, respectively for the thirteen weeks ended, and $237 and $3,370, respectively for the thirty-nine weeks ended)		(962)		(2,023)		613		(9,143)
Other comprehensive income gain (loss), net of tax		(962)		(2,023)		613		(9,143)
Comprehensive income, net of tax	$	22,264	$	26,635	$	83,918	$	87,170
See accompanying notes to Consolidated Financial Statements.


						Accumulated
(amounts in thousands, except shares)						Other						Total
For the Thirteen Weeks Ended	Common Stock			Retained		Comprehensive		Treasury Stock				Shareholders’
September 30, 2023 and September 24, 2022	Shares	Amount		Earnings		Income (Loss)		Shares		Amount		Equity
Balance at July 1, 2023	33,047,807	$	9,949	$	1,490,979	$	(4,874)		6,149,364	$	(150,857)	$	1,345,198
Net income	—		—		23,226		—		—		—		23,226
Other comprehensive income (loss), net of tax	—		—		—		(962)		—		—		(962)
Dividends paid	—		—		(9,145)		—		—		—		(9,145)
Balance at September 30, 2023	33,047,807	$	9,949	$	1,505,060	$	(5,836)		6,149,364	$	(150,857)	$	1,358,316

Balance at June 25, 2022	33,047,807	$	9,949	$	1,409,403	$	(5,433)		6,149,364	$	(150,857)	$	1,263,062
Net income	—		—		28,658		—		—		—		28,658
Other comprehensive income (loss), net of tax	—		—		—		(2,023)		—		—		(2,023)
Dividends paid	—		—		(8,608)		—		—		—		(8,608)
Balance at September 24, 2022	33,047,807	$	9,949	$	1,429,453	$	(7,456)		6,149,364	$	(150,857)	$	1,281,089


			Gross		Gross
(amounts in thousands)	Amortized		Unrealized		Unrealized		Fair
September 30, 2023	Cost		Holding Gains		Holding Losses		Value
Available-for-sale:
Level 1
Equity securities							$	4,370
Level 2
Corporate and municipal bonds	$	172,623	$	1,609	$	(10,168)		164,063
Commercial Paper		50,666		618		—		51,285
Total	$	223,289	$	2,227	$	(10,168)	$	219,718


	Unrealized Gains (Losses)
	on Available-for-Sale
(amounts in thousands)	Marketable Securities
Accumulated other comprehensive income (loss) balance as of December 31, 2022	$	(6,449)
Other comprehensive income (loss)		613
Net current period other comprehensive income (loss)		613
Accumulated other comprehensive income (loss) balance as of September 30, 2023	$	(5,836)


	13 Weeks Ended
(amounts in thousands)	September 30, 2023				September 24, 2022
Grocery	$	960,072	82.7	%	$	973,707	84.6	%
Pharmacy		133,289	11.5			107,366	9.3
Fuel		64,524	5.6			66,350	5.8
Manufacturing		2,421	0.2			3,128	0.3
Total net sales	$	1,160,306	100.0	%	$	1,150,551	100.0	%



	39 Weeks Ended
(amounts in thousands)	September 30, 2023				September 24, 2022
Grocery	$	2,915,444	83.7	%	$	2,867,699	84.5	%
Pharmacy		380,917	10.9			317,564	9.4
Fuel		179,768	5.2			195,521	5.8
Manufacturing		7,846	0.2			9,069	0.3
Total net sales	$	3,483,975	100.0	%	$	3,389,853	100.0	%


	Percentage Change
	13 Weeks Ended
		2023 vs. 2022		2022 vs. 2021
Comparable store sales (individual year)		0.8	%	7.9	%
Comparable store sales (two-year stacked)		8.7
Comparable store sales, excluding fuel (individual year)		1.1		6.7	%
Comparable store sales, excluding fuel (two-year stacked)		7.8	%

	Percentage Change
	39 Weeks ended
		2023 vs. 2022		2022 vs. 2021
Comparable store sales (individual year)		2.5	%	8.6	%
Comparable store sales (two-year stacked)		11.1
Comparable store sales, excluding fuel (individual year)		3.1		6.8
Comparable store sales, excluding fuel (two-year stacked)		9.9


A breakdown of the material increases (decreases) as a percent of sales in "Operating, general and administrative expenses" is as follows:

	13 Weeks Ended
(amounts in thousands)	Increase		Increase (Decrease)
September 30, 2023	(Decrease)		as a % of sales
Employee expenses and utilities	$	(5,001)	(0.5)	%
Fixed expense (amortization, depreciation, insurance expenses, and occupancy costs)		3,792	0.3
Other expenses (financial service fees, technology, repairs and maintenance, other income)		3,274	0.2


	39 Weeks Ended
(amounts in thousands)	Increase		Increase (Decrease)
September 30, 2023	(Decrease)		as a % of sales
Employee expenses and utilities	$	(4,538)	(0.5)	%
Fixed expense (amortization, depreciation, insurance expenses, and occupancy costs)		5,400	0.1
Other expenses (financial service fees, technology, repairs and maintenance, other income)		11,716	0.2


		WEIS MARKETS, INC.
		(Registrant)

Date:	11/9/2023	/S/Jonathan H. Weis
		Jonathan H. Weis
		Chairman,
		President and Chief Executive Officer
		(Principal Executive Officer)

Date:	11/9/2023	/S/Michael T. Lockard
		Michael T. Lockard
		Senior Vice President, Chief Financial Officer
		and Treasurer
		(Principal Financial Officer)


	39 Weeks Ended
(amounts in thousands)		September 30, 2023		September 24, 2022
Cash flows from operating activities:
Net income	$	83,305	$	96,313
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization		81,533		77,604
(Gain) loss on disposition of fixed assets		5		(2,481)
Unrealized (gain) loss in value of equity securities		815		1,590
Deferred income taxes		4,476		(1,711)
Unrealized (gain) loss in SERP		(1,222)		6,082
Changes in operating assets and liabilities:
Inventories		(10,450)		(30,499)
Accounts receivable and prepaid expenses		(26,342)		(3,689)
Accounts payable and other liabilities		(89,437)		(9,802)
Income taxes		81		9,248
Other		359		(344)
Net cash provided by operating activities		43,125		142,311
Cash flows from investing activities:
Purchase of property and equipment		(75,645)		(83,335)
Proceeds from the sale of property and equipment		336		6,710
Purchase of marketable securities		(92,569)		(267,106)
Proceeds from the sale and maturities of marketable securities		58,725		287,124
Purchase of intangible assets		(29)		(944)
Proceeds from sale of intangible assets		—		125
Change in SERP investment		(213)		(507)
Net cash used in investing activities		(109,394)		(57,933)
Cash flows from financing activities:
Dividends paid		(27,436)		(25,823)
Net cash used in financing activities		(27,436)		(25,823)
Net increase (decrease) in cash and cash equivalents		(93,706)		58,555
Cash and cash equivalents at beginning of year		157,997		86,048
Cash and cash equivalents at end of period	$	64,291	$	144,603
See accompanying notes to Consolidated Financial Statements. In the first thirty-nine weeks of 2023, there was $26.4 million cash paid for income taxes compared to $21.7 million in 2022 for the same period. Cash paid for interest related to long-term debt was $25 thousand and $24 thousand in the first thirty-nine weeks of 2023 and 2022, respectively.


	Amortized		Fair
(amounts in thousands)	Cost		Value
Available-for-sale:
Due within one year	$	88,980	$	89,498
Due after one year through five years		83,664		79,256
Due after five years through ten years		17,957		15,904
Due after ten years		32,688		30,690
Total	$	223,289	$	215,348


	39 Weeks Ended
(amounts in thousands)		September 30, 2023		September 24, 2022		2023 vs. 2022
Net cash provided by (used in):
Operating activities	$	43,125	$	142,311	$	(99,186)
Investing activities		(109,394)		(57,933)		(51,461)
Financing activities		(27,436)		(25,823)		(1,613)


Date:	November 9, 2023	/S/Jonathan H. Weis
		Jonathan H. Weis
		Chairman,
		President and Chief Executive Officer