Weis Markets Inc 10-Q for FY2022 Q3

Weis Markets Inc (WMK)

10-Q 2022-11-03 For: 2022-09-24

Added on April 08, 2026

About this 10-Q

Weis Markets Inc filed this 10-Q on November 3, 2022, covering the quarter ended September 24, 2022 (FY2022 Q3).

Headline figures

Quarter ended September 24, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.15B; up 8.2% from $1.06B a year earlier
Net income: $28.66M; up 0.5% from net income of $28.51M a year earlier
Diluted EPS: $1.07; up 0.9% from $1.06 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 [ ]		Accelerated filer [X]
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 24, 2022		December 25, 2021
Assets
Current:
Cash and cash equivalents	$	144,603	$	86,048
Marketable securities		171,136		205,744
SERP investment		21,483		27,059
Accounts receivable, net		53,406		52,108
Inventories		300,087		269,587
Prepaid expenses and other current assets		33,503		31,112
Total current assets		724,218		671,658
Property and equipment, net		963,498		977,787
Operating lease right-to-use		181,722		191,175
Goodwill		52,330		52,330
Intangible and other assets, net		18,960		17,525
Total assets	$	1,940,728	$	1,910,475

Liabilities
Current:
Accounts payable	$	206,472	$	218,774
Accrued expenses		52,540		48,654
Operating leases		42,204		39,940
Accrued self-insurance		18,739		18,568
Deferred revenue, net		8,114		11,901
Income taxes payable		16,608		7,360
Total current liabilities		344,677		345,197
Postretirement benefit obligations		23,842		29,964
Accrued self-insurance		23,371		23,400
Operating leases		149,019		161,669
Deferred income taxes		110,006		115,087
Other		8,724		15,416
Total liabilities		659,639		690,733
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		1,429,453		1,358,963
Accumulated other comprehensive income (Net of deferred taxes of $2,702 in 2022 and $669 in 2021)		(7,456)		1,687
		1,431,946		1,370,599
Treasury stock at cost, 6,149,364 shares		(150,857)		(150,857)
Total shareholders’ equity		1,281,089		1,219,742
Total liabilities and shareholders’ equity	$	1,940,728	$	1,910,475


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 24, 2022		September 25, 2021		September 24, 2022		September 25, 2021
Net sales	$	1,150,551	$	1,063,452	$	3,389,853	$	3,117,141
Cost of sales, including advertising, warehousing and distribution expenses		862,908		780,320		2,516,311		2,285,428
Gross profit on sales		287,643		283,132		873,542		831,713
Operating, general and administrative expenses		253,985		244,164		750,066		715,353
Income from operations		33,658		38,968		123,476		116,360
Investment income (loss) and interest expense		(1,483)		608		(3,394)		4,360
Other income (expense)		1,214		(401)		4,805		(3,007)
Income before provision for income taxes		33,389		39,175		124,887		117,713
Provision for income taxes		4,731		10,668		28,574		31,479
Net income	$	28,658	$	28,507	$	96,313	$	86,234

Weighted-average shares outstanding, basic and diluted		26,898,443		26,898,443		26,898,443		26,898,443
Cash dividends per share	$	0.32	$	0.31	$	0.96	$	0.93
Basic and diluted earnings per share	$	1.07	$	1.06	$	3.58	$	3.21


	13 Weeks Ended				39 Weeks Ended
(amounts in thousands)		September 24, 2022		September 25, 2021		September 24, 2022		September 25, 2021
Net income	$	28,658	$	28,507	$	96,313	$	86,234
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 $547 and $39, respectively for the thirteen weeks ended, and $3,370 and $268, respectively for the thirty-nine weeks ended)		(2,023)		(103)		(9,143)		(683)
Other comprehensive income gain (loss), net of tax		(2,023)		(103)		(9,143)		(683)
Comprehensive income, net of tax	$	26,635	$	28,404	$	87,170	$	85,551


						Accumulated
(amounts in thousands, except shares)						Other						Total
For the Thirteen Weeks Ended	Common Stock			Retained		Comprehensive		Treasury Stock				Shareholders’
September 24, 2022 and September 25, 2021	Shares	Amount		Earnings		Income (Loss)		Shares		Amount		Equity
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

Balance at June 26, 2021	33,047,807	$	9,949	$	1,324,787	$	2,706		6,149,364	$	(150,857)	$	1,186,585
Net income	—		—		28,507		—		—		—		28,507
Other comprehensive income (loss), net of tax	—		—		—		(103)		—		—		(103)
Dividends paid	—		—		(8,339)		—		—		—		(8,339)
Balance at September 25, 2021	33,047,807	$	9,949	$	1,344,956	$	2,603		6,149,364	$	(150,857)	$	1,206,651


			Gross		Gross
(amounts in thousands)	Amortized		Unrealized		Unrealized		Fair
September 24, 2022	Cost		Holding Gains		Holding Losses		Value
Available-for-sale:
Level 1
Equity securities							$	4,920
Level 2
Corporate and municipal bonds	$	149,483	$	1,210	$	(11,426)		139,267
Commercial Paper		26,892		57		—		26,949
	$	176,375	$	1,267	$	(11,426)	$	171,136


	Unrealized Gains (Losses)
	on Available-for-Sale
(amounts in thousands)	Marketable Securities
Accumulated other comprehensive income balance as of December 25, 2021	$	1,687

Other comprehensive income (loss)		(9,143)
Net current period other comprehensive income (loss)		(9,143)
Accumulated other comprehensive income balance as of September 24, 2022	$	(7,456)


	13 Weeks Ended
(amounts in thousands)	September 24, 2022				September 25, 2021
Grocery	$	973,707	84.6	%	$	912,984	85.9	%
Pharmacy		107,366	9.3			99,210	9.3
Fuel		66,350	5.8			49,262	4.6
Manufacturing		3,128	0.3			1,996	0.2
Total net sales	$	1,150,551	100.0	%	$	1,063,452	100.0	%



	39 Weeks Ended
(amounts in thousands)	September 24, 2022				September 25, 2021
Grocery	$	2,867,699	84.5	%	$	2,687,066	86.2	%
Pharmacy		317,564	9.4			296,278	9.5
Fuel		195,521	5.8			127,460	4.1
Manufacturing		9,069	0.3			6,337	0.2
Total net sales	$	3,389,853	100.0	%	$	3,117,141	100.0	%


	Percentage Change
	13 Weeks Ended
		2022 vs. 2021		2021 vs. 2020
Comparable store sales (individual year)		7.9	%	4.6	%
Comparable store sales (two-year stacked)		12.5
Comparable store sales, excluding fuel (individual year)		6.7		3.2	%
Comparable store sales, excluding fuel (two-year stacked)		9.9	%

	Percentage Change
	39 Weeks Ended
		2022 vs. 2021		2021 vs. 2020
Comparable store sales (individual year)		8.6	%	(0.1)	%
Comparable store sales (two-year stacked)		8.5
Comparable store sales, excluding fuel (individual year)		6.8		(1.4)	%
Comparable store sales, excluding fuel (two-year stacked)		5.4	%


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 24, 2022	(Decrease)		as a % of sales
Employee expenses	$	6,410	(0.5)	%
Fixed expense (amortization, depreciation, insurance expenses, and occupancy costs)		(2,060)	(0.5)
Utilities expense		3,178	0.2
Other expenses (financial service fees, technology, repairs and maintenance, supplies)		2,294	(0.1)


	39 Weeks Ended
(amounts in thousands)	Increase		Increase (Decrease)
September 24, 2022	(Decrease)		as a % of sales
Employee expenses	$	17,532	(0.6)	%
Fixed expense (amortization, depreciation, insurance expenses, and occupancy costs)		603	(0.3)
Utilities expense		9,354	0.2
Other expenses (financial service fees, technology, repairs and maintenance, supplies)		7,224	(0.1)


		WEIS MARKETS, INC.
		(Registrant)

Date:	11/3/2022	/S/Jonathan H. Weis
		Jonathan H. Weis
		Chairman,
		President and Chief Executive Officer
		(Principal Executive Officer)

Date:	11/3/2022	/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 24, 2022		September 25, 2021
Cash flows from operating activities:
Net income	$	96,313	$	86,234
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization		77,604		77,232
(Gain) loss on disposition of fixed assets		(2,481)		524
Unrealized (gain) loss in value of equity securities		1,590		463
Deferred income taxes		(1,711)		7,812
Unrealized (gain) loss in SERP		6,082		(2,130)
Changes in operating assets and liabilities:
Inventories		(30,499)		11,161
Accounts receivable and prepaid expenses		(3,689)		11,289
Accounts payable and other liabilities		(9,802)		(20,868)
Income taxes		9,248		10,164
Other		(344)		224
Net cash provided by operating activities		142,311		182,105
Cash flows from investing activities:
Purchase of property and equipment		(83,335)		(118,156)
Proceeds from the sale of property and equipment		6,710		5,856
Purchase of marketable securities		(267,106)		(19,455)
Proceeds from the sale and maturities of marketable securities		287,124		12,275
Purchase of intangible assets		(944)		(165)
Proceeds from sale of intangible assets		125		—
Change in SERP investment		(507)		(1,488)
Net cash used in investing activities		(57,933)		(121,133)
Cash flows from financing activities:
Dividends paid		(25,823)		(25,016)
Net cash used in financing activities		(25,823)		(25,016)
Net increase (decrease) in cash and cash equivalents		58,555		35,956
Cash and cash equivalents at beginning of year		86,048		136,612
Cash and cash equivalents at end of period	$	144,603	$	172,568


	Amortized		Fair
(amounts in thousands)	Cost		Value
Available-for-sale:
Due within one year	$	59,607	$	58,578
Due after one year through five years		72,343		68,242
Due after five years through ten years		32,235		28,611
Due after ten years		12,190		10,785
	$	176,375	$	166,216


	39 Weeks Ended
(amounts in thousands)		September 24, 2022		September 25, 2021		2022 vs. 2021
Net cash provided by (used in):
Operating activities	$	142,311	$	182,105	$	(39,794)
Investing activities		(57,933)		(121,133)		63,200
Financing activities		(25,823)		(25,016)		(807)


Date:	November 3, 2022	/S/Jonathan H. Weis
		Jonathan H. Weis
		Chairman,
		President and Chief Executive Officer