Weis Markets Inc 10-Q for FY2023 Q1

Weis Markets Inc (WMK)

10-Q 2023-05-11 For: 2023-04-01

Added on April 08, 2026

About this 10-Q

Weis Markets Inc filed this 10-Q on May 11, 2023, covering the quarter ended April 1, 2023 (FY2023 Q1).

Headline figures

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

Revenue: $1.14B; up 3.7% from $1.1B a year earlier
Net income: $25.81M; down 17.8% from net income of $31.39M a year earlier
Diluted EPS: $0.96; down 17.9% from $1.17 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		17
Item 4. Controls and Procedures		17
Part II. Other Information
Item 6. Exhibits		18
Signatures		19
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)	April 1, 2023		December 31, 2022
Assets
Current:
Cash and cash equivalents	$	113,575	$	157,997
Marketable securities		214,229		186,419
SERP investment		23,806		22,696
Accounts receivable, net		49,947		50,863
Inventories		307,800		293,274
Prepaid expenses and other current assets		29,427		29,921
Total current assets		738,784		741,170
Property and equipment, net		961,728		970,913
Operating lease right-to-use		173,812		175,952
Goodwill		52,330		52,330
Intangible and other assets, net		18,051		18,785
Total assets	$	1,944,705	$	1,959,150

Liabilities
Current:
Accounts payable	$	198,907	$	206,849
Accrued expenses		32,560		57,431
Operating leases		43,233		43,527
Accrued self-insurance		18,299		19,416
Deferred revenue, net		9,445		11,774
Income taxes payable		12,970		6,354
Total current liabilities		315,414		345,351
Postretirement benefit obligations		25,582		25,270
Accrued self-insurance		23,562		23,712
Operating leases		140,293		142,424
Deferred income taxes		114,406		111,225
Other		5,237		9,334
Total liabilities		624,494		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		1,465,860		1,449,191
Accumulated other comprehensive income (loss) (Net of deferred taxes of $1,710 in 2023 and $2,342 in 2022)		(4,741)		(6,449)
		1,471,068		1,452,691
Treasury stock at cost, 6,149,364 shares		(150,857)		(150,857)
Total shareholders’ equity		1,320,211		1,301,834
Total liabilities and shareholders’ equity	$	1,944,705	$	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
(amounts in thousands, except shares and per share amounts)		April 1, 2023		March 26, 2022
Net sales	$	1,144,974	$	1,104,069
Cost of sales, including advertising, warehousing and distribution expenses		859,185		810,384
Gross profit on sales		285,789		293,685
Operating, general and administrative expenses		253,171		252,271
Income from operations		32,618		41,414
Investment income (loss) and interest expense		3,798		(881)
Other income (expense)		(1,258)		1,505
Income before provision for income taxes		35,158		42,038
Provision for income taxes		9,344		10,649
Net income	$	25,814	$	31,389

Weighted-average shares outstanding, basic and diluted		26,898,443		26,898,443
Cash dividends per share	$	0.34	$	0.32
Basic and diluted earnings per share	$	0.96	$	1.17
See accompanying notes to Consolidated Financial Statements.


	13 Weeks Ended
(amounts in thousands)		April 1, 2023		March 26, 2022
Net income	$	25,814	$	31,389
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 $632 and $2,001, respectively for the thirteen weeks ended)		1,707		(5,047)
Other comprehensive income gain (loss), net of tax		1,707		(5,047)
Comprehensive income, net of tax	$	27,521	$	26,342
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’
April 1, 2023 and March 26, 2022	Shares	Amount		Earnings		Income (Loss)		Shares		Amount		Equity
Balance at December 31, 2022	33,047,807	$	9,949	$	1,449,191	$	(6,449)		6,149,364	$	(150,857)	$	1,301,834
Net income	—		—		25,814		—		—		—		25,814
Other comprehensive income (loss), net of tax	—		—		—		1,707		—		—		1,707
Dividends paid	—		—		(9,145)		—		—		—		(9,145)
Balance at April 1, 2023	33,047,807	$	9,949	$	1,465,860	$	(4,741)		6,149,364	$	(150,857)	$	1,320,211

Balance at December 25, 2021	33,047,807	$	9,949	$	1,358,963	$	1,687		6,149,364	$	(150,857)	$	1,219,742
Net income	—		—		31,389		—		—		—		31,389
Other comprehensive income (loss), net of tax	—		—		—		(5,047)		—		—		(5,047)
Dividends paid	—		—		(8,608)		—		—		—		(8,608)
Balance at March 26, 2022	33,047,807	$	9,949	$	1,381,745	$	(3,360)		6,149,364	$	(150,857)	$	1,237,477
See accompanying notes to Consolidated Financial Statements.


			Gross		Gross
(amounts in thousands)	Amortized		Unrealized		Unrealized		Fair
April 1, 2023	Cost		Holding Gains		Holding Losses		Value
Available-for-sale:
Level 1
Equity securities							$	5,510
Level 2
Corporate and municipal bonds	$	195,913	$	2,402	$	(8,863)		189,452
Commercial Paper		19,258		9		—		19,267
Total	$	215,171	$	2,411	$	(8,863)	$	214,229


	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)		1,707
Net current period other comprehensive income (loss)		1,707
Accumulated other comprehensive income (loss) balance as of April 1, 2023	$	(4,741)


	13 Weeks Ended
(amounts in thousands)	April 1, 2023				March 26, 2022
Grocery	$	969,813	84.7	%	$	941,596	85.3	%
Pharmacy		118,629	10.4			103,274	9.4
Fuel		53,691	4.7			56,157	5.1
Manufacturing		2,841	0.2			3,042	0.2
Total net sales	$	1,144,974	100.0	%	$	1,104,069	100.0	%


	Percentage Change
	13 Weeks Ended
		2023 vs. 2022		2022 vs. 2021
Comparable store sales (individual year)		3.1	%	9.4	%
Comparable store sales (two-year stacked)		12.5
Comparable store sales, excluding fuel (individual year)		3.6		7.6	%
Comparable store sales, excluding fuel (two-year stacked)		11.2	%


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)
April 1, 2023	(Decrease)		as a % of sales
Employee expenses	$	(1,094)	(0.6)	%
Fixed expense (amortization, depreciation, insurance expenses, and occupancy costs)		450	(0.1)
Utilities expense		(424)	(0.1)
Other expenses (financial service fees, technology, repairs and maintenance, supplies)		1,968	0.1


		WEIS MARKETS, INC.
		(Registrant)

Date:	5/11/2023	/S/Jonathan H. Weis
		Jonathan H. Weis
		Chairman,
		President and Chief Executive Officer
		(Principal Executive Officer)

Date:	5/11/2023	/S/Michael T. Lockard
		Michael T. Lockard
		Senior Vice President, Chief Financial Officer
		and Treasurer
		(Principal Financial Officer)


	13 Weeks Ended
(amounts in thousands)		April 1, 2023		March 26, 2022
Cash flows from operating activities:
Net income	$	25,814	$	31,389
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization		26,688		25,629
(Gain) loss on disposition of fixed assets		1		(3)
Unrealized (gain) loss in value of equity securities		(325)		214
Deferred income taxes		2,549		3,557
Unrealized (gain) loss in SERP		(1,196)		2,184
Changes in operating assets and liabilities:
Inventories		(14,526)		(15,768)
Accounts receivable and prepaid expenses		1,410		6,297
Accounts payable and other liabilities		(40,190)		(26,316)
Income taxes		6,615		7,559
Other		1,104		(262)
Net cash provided by operating activities		7,944		34,480
Cash flows from investing activities:
Purchase of property and equipment		(17,731)		(18,793)
Proceeds from the sale of property and equipment		16		13
Purchase of marketable securities		(35,958)		(25,965)
Proceeds from the sale and maturities of marketable securities		10,372		25,481
Purchase of intangible assets		(6)		(48)
Proceeds from sale of intangible assets		—		125
Change in SERP investment		86		359
Net cash used in investing activities		(43,221)		(18,828)
Cash flows from financing activities:
Dividends paid		(9,145)		(8,608)
Net cash used in financing activities		(9,145)		(8,608)
Net increase (decrease) in cash and cash equivalents		(44,422)		7,044
Cash and cash equivalents at beginning of year		157,997		86,048
Cash and cash equivalents at end of period	$	113,575	$	93,092
See accompanying notes to Consolidated Financial Statements. In the first thirteen weeks of 2023, there was $179 thousand cash paid for income taxes compared to $233 thousand in 2022 for the same period. Cash paid for interest related to long-term debt was $8 thousand and $8 thousand in the first thirteen weeks of 2023 and 2022, respectively.


	Amortized		Fair
(amounts in thousands)	Cost		Value
Available-for-sale:
Due within one year	$	71,075	$	69,457
Due after one year through five years		93,453		90,959
Due after five years through ten years		26,089		23,927
Due after ten years		24,554		24,376
Total	$	215,171	$	208,719


Date:	May 11, 2023	/S/Jonathan H. Weis
		Jonathan H. Weis
		Chairman,
		President and Chief Executive Officer