Weis Markets Inc 10-Q for FY2023 Q2

Weis Markets Inc (WMK)

10-Q 2023-08-10 For: 2023-07-01

Added on April 08, 2026

About this 10-Q

Weis Markets Inc filed this 10-Q on August 10, 2023, covering the quarter ended July 1, 2023 (FY2023 Q2).

Headline figures

Quarter ended July 1, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.18B; up 3.8% from $1.14B a year earlier
Net income: $34.27M; down 5.5% from net income of $36.27M a year earlier
Diluted EPS: $1.27; down 5.9% from $1.35 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)	July 1, 2023		December 31, 2022
Assets
Current:
Cash and cash equivalents	$	139,338	$	157,997
Marketable securities		217,866		186,419
SERP investment		24,995		22,696
Accounts receivable, net		56,965		50,863
Inventories		295,026		293,274
Prepaid expenses and other current assets		31,036		29,921
Total current assets		765,225		741,170
Property and equipment, net		965,251		970,913
Operating lease right-to-use		172,871		175,952
Goodwill		52,330		52,330
Intangible and other assets, net		17,830		18,785
Total assets	$	1,973,507	$	1,959,150

Liabilities
Current:
Accounts payable	$	198,200	$	206,849
Accrued expenses		34,438		57,431
Operating leases		43,150		43,527
Accrued self-insurance		17,216		19,416
Deferred revenue, net		8,861		11,774
Income taxes payable		15,700		6,354
Total current liabilities		317,566		345,351
Postretirement benefit obligations		26,965		25,270
Accrued self-insurance		23,555		23,712
Operating leases		139,129		142,424
Deferred income taxes		114,230		111,225
Other		6,864		9,334
Total liabilities		628,309		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		1,490,979		1,449,191
Accumulated other comprehensive income (loss) (Net of deferred taxes of $1,758 in 2023 and $2,342 in 2022)		(4,874)		(6,449)
		1,496,055		1,452,691
Treasury stock at cost, 6,149,364 shares		(150,857)		(150,857)
Total shareholders’ equity		1,345,198		1,301,834
Total liabilities and shareholders’ equity	$	1,973,507	$	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			26 Weeks Ended
(amounts in thousands, except shares and per share amounts)		July 1, 2023		June 25, 2022		July 1, 2023		June 25, 2022
Net sales	$	1,178,695	$	1,135,234	$	2,323,669	$	2,239,302
Cost of sales, including advertising, warehousing and distribution expenses		879,650		843,020		1,738,834		1,653,403
Gross profit on sales		299,045		292,214		584,835		585,899
Operating, general and administrative expenses		253,422		243,809		506,594		496,081
Income from operations		45,623		48,405		78,241		89,818
Investment income (loss) and interest expense		2,508		(1,030)		6,306		(1,910)
Other income (expense)		(915)		2,085		(2,173)		3,590
Income before provision for income taxes		47,216		49,460		82,374		91,498
Provision for income taxes		12,951		13,194		22,295		23,843
Net income	$	34,265	$	36,266	$	60,079	$	67,655

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	$	0.68	$	0.64
Basic and diluted earnings per share	$	1.27	$	1.35	$	2.23	$	2.52
See accompanying notes to Consolidated Financial Statements.


	13 Weeks Ended				26 Weeks Ended
(amounts in thousands)		July 1, 2023		June 25, 2022		July 1, 2023		June 25, 2022
Net income	$	34,265	$	36,266	$	60,079	$	67,655
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 $48 and $822, respectively for the thirteen weeks ended, and $584 and $2,823, respectively for the twenty-six weeks ended)		(133)		(2,073)		1,575		(7,120)
Other comprehensive income gain (loss), net of tax		(133)		(2,073)		1,575		(7,120)
Comprehensive income, net of tax	$	34,132	$	34,193	$	61,654	$	60,535
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’
July 1, 2023 and June 25, 2022	Shares	Amount		Earnings		Income (Loss)		Shares		Amount		Equity
Balance at April 1, 2023	33,047,807	$	9,949	$	1,465,860	$	(4,741)		6,149,364	$	(150,857)	$	1,320,211
Net income	—		—		34,265		—		—		—		34,265
Other comprehensive income (loss), net of tax	—		—		—		(133)		—		—		(133)
Dividends paid	—		—		(9,146)		—		—		—		(9,146)
Balance at July 1, 2023	33,047,807	$	9,949	$	1,490,979	$	(4,874)		6,149,364	$	(150,857)	$	1,345,198

Balance at March 26, 2022	33,047,807	$	9,949	$	1,381,745	$	(3,360)		6,149,364	$	(150,857)	$	1,237,477
Net income	—		—		36,266		—		—		—		36,266
Other comprehensive income (loss), net of tax	—		—		—		(2,073)		—		—		(2,073)
Dividends paid	—		—		(8,608)		—		—		—		(8,608)
Balance at June 25, 2022	33,047,807	$	9,949	$	1,409,403	$	(5,433)		6,149,364	$	(150,857)	$	1,263,062


			Gross		Gross
(amounts in thousands)	Amortized		Unrealized		Unrealized		Fair
July 1, 2023	Cost		Holding Gains		Holding Losses		Value
Available-for-sale:
Level 1
Equity securities							$	4,807
Level 2
Corporate and municipal bonds	$	182,891	$	2,046	$	(9,029)		175,908
Commercial Paper		36,800		352		(1)		37,151
Total	$	219,691	$	2,398	$	(9,030)	$	217,866


	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)		1,575
Net current period other comprehensive income (loss)		1,575
Accumulated other comprehensive income (loss) balance as of July 1, 2023	$	(4,874)


	13 Weeks Ended
(amounts in thousands)	July 1, 2023				June 25, 2022
Grocery	$	985,559	83.6	%	$	952,397	83.9	%
Pharmacy		128,999	11.0			106,924	9.4
Fuel		61,553	5.2			73,014	6.4
Manufacturing		2,584	0.2			2,899	0.3
Total net sales	$	1,178,695	100.0	%	$	1,135,234	100.0	%



	26 Weeks Ended
(amounts in thousands)	July 1, 2023				June 25, 2022
Grocery	$	1,955,372	84.2	%	$	1,893,992	84.5	%
Pharmacy		247,628	10.6			210,198	9.4
Fuel		115,244	5.0			129,171	5.8
Manufacturing		5,425	0.2			5,941	0.3
Total net sales	$	2,323,669	100.0	%	$	2,239,302	100.0	%


	Percentage Change
	13 Weeks Ended
		2023 vs. 2022		2022 vs. 2021
Comparable store sales (individual year)		3.5	%	8.4	%
Comparable store sales (two-year stacked)		11.9
Comparable store sales, excluding fuel (individual year)		4.8		6.0	%
Comparable store sales, excluding fuel (two-year stacked)		10.8	%

	Percentage Change
	26 Weeks ended
		2023 vs. 2022		2022 vs. 2021
Comparable store sales (individual year)		3.3	%	8.9	%
Comparable store sales (two-year stacked)		12.2
Comparable store sales, excluding fuel (individual year)		4.2		6.8
Comparable store sales, excluding fuel (two-year stacked)		11.0


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)
July 1, 2023	(Decrease)		as a % of sales
Employee expenses	$	2,606	(0.3)	%
Fixed expense (amortization, depreciation, insurance expenses, and occupancy costs)		1,157	(0.1)
Other expenses (financial service fees, technology, repairs and maintenance, supplies)		5,850	0.4


	26 Weeks Ended
(amounts in thousands)	Increase		Increase (Decrease)
July 1, 2023	(Decrease)		as a % of sales
Employee expenses	$	1,511	(0.4)	%
Fixed expense (amortization, depreciation, insurance expenses, and occupancy costs)		1,608	(0.1)
Other expenses (financial service fees, technology, repairs and maintenance, supplies)		7,394	0.1


		WEIS MARKETS, INC.
		(Registrant)

Date:	8/10/2023	/S/Jonathan H. Weis
		Jonathan H. Weis
		Chairman,
		President and Chief Executive Officer
		(Principal Executive Officer)

Date:	8/10/2023	/S/Michael T. Lockard
		Michael T. Lockard
		Senior Vice President, Chief Financial Officer
		and Treasurer
		(Principal Financial Officer)


	26 Weeks Ended
(amounts in thousands)		July 1, 2023		June 25, 2022
Cash flows from operating activities:
Net income	$	60,079	$	67,655
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization		54,104		51,510
(Gain) loss on disposition of fixed assets		(4)		(2,465)
Unrealized (gain) loss in value of equity securities		378		145
Deferred income taxes		2,421		1,713
Unrealized (gain) loss in SERP		(2,061)		4,820
Changes in operating assets and liabilities:
Inventories		(1,752)		(33,830)
Accounts receivable and prepaid expenses		(7,218)		4,213
Accounts payable and other liabilities		(36,676)		(18,794)
Income taxes		9,346		9,140
Other		1,813		286
Net cash provided by operating activities		80,430		84,393
Cash flows from investing activities:
Purchase of property and equipment		(49,946)		(53,443)
Proceeds from the sale of property and equipment		57		5,413
Purchase of marketable securities		(57,700)		(170,511)
Proceeds from the sale and maturities of marketable securities		27,057		136,465
Purchase of intangible assets		(29)		(48)
Proceeds from sale of intangible assets		—		125
Change in SERP investment		(237)		(549)
Net cash used in investing activities		(80,798)		(82,548)
Cash flows from financing activities:
Dividends paid		(18,291)		(17,215)
Net cash used in financing activities		(18,291)		(17,215)
Net increase (decrease) in cash and cash equivalents		(18,659)		(15,370)
Cash and cash equivalents at beginning of year		157,997		86,048
Cash and cash equivalents at end of period	$	139,338	$	70,678
See accompanying notes to Consolidated Financial Statements. In the first twenty-six weeks of 2023, there was $10.5 million cash paid for income taxes compared to $13.7 million in 2022 for the same period. Cash paid for interest related to long-term debt was $17 thousand and $16 thousand in the first twenty-six weeks of 2023 and 2022, respectively.


	Amortized		Fair
(amounts in thousands)	Cost		Value
Available-for-sale:
Due within one year	$	78,057	$	77,332
Due after one year through five years		91,270		87,741
Due after five years through ten years		21,749		19,726
Due after ten years		28,615		28,260
Total	$	219,691	$	213,059


	26 Weeks Ended
(amounts in thousands)		July 1, 2023		June 25, 2022		2023 vs. 2022
Net cash provided by (used in):
Operating activities	$	80,430	$	84,393	$	(3,963)
Investing activities		(80,798)		(82,548)		1,750
Financing activities		(18,291)		(17,215)		(1,076)


Date:	August 10, 2023	/S/Jonathan H. Weis
		Jonathan H. Weis
		Chairman,
		President and Chief Executive Officer