Weis Markets Inc 10-Q for FY2021 Q1

Weis Markets Inc (WMK)

10-Q 2021-05-06 For: 2021-03-27

Added on April 08, 2026

About this 10-Q

Weis Markets Inc filed this 10-Q on May 6, 2021, covering the quarter ended March 27, 2021 (FY2021 Q1).

Headline figures

Quarter ended March 27, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.01B; up 2.1% from $985.82M a year earlier
Net income: $24.26M; down 9.1% from net income of $26.69M a year earlier

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[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended March 27, 2021
	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 1-5039


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	11
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	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


(dollars in thousands)	March 27, 2021		December 26, 2020
Assets
Current:
Cash and cash equivalents	$	101,217	$	136,612
Marketable securities		114,727		111,855
SERP investment		24,135		22,764
Accounts receivable, net		44,598		56,760
Inventories		276,733		269,024
Prepaid expenses and other current assets		25,586		29,187
Total current assets		586,996		626,202
Property and equipment, net		932,552		924,429
Operating lease right-to-use		195,637		199,901
Goodwill		52,330		52,330
Intangible and other assets, net		17,408		17,559
Total assets	$	1,784,923	$	1,820,421

Liabilities
Current:
Accounts payable	$	184,536	$	221,566
Accrued expenses		35,394		50,591
Operating leases		39,352		39,165
Accrued self-insurance		20,606		19,306
Deferred revenue, net		7,947		10,583
Income taxes payable		10,204		5,058
Total current liabilities		298,039		346,269
Postretirement benefit obligations		26,299		25,757
Accrued self-insurance		20,284		20,297
Operating leases		164,547		169,064
Deferred income taxes		105,231		103,404
Other		9,266		9,515
Total liabilities		623,666		674,306
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		1,299,653		1,283,737
Accumulated other comprehensive income
(Net of deferred taxes of $993 in 2021 and $1,299 in 2020)		2,512		3,286
		1,312,114		1,296,972
Treasury stock at cost, 6,149,364 shares		(150,857)		(150,857)
Total shareholders’ equity		1,161,257		1,146,115
Total liabilities and shareholders’ equity	$	1,784,923	$	1,820,421


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



	13 Weeks Ended
(dollars in thousands, except shares and per share amounts)	March 27, 2021		March 28, 2020
Net sales	$	1,006,340	$	985,820
Cost of sales, including advertising, warehousing and distribution expenses		738,950		721,673
Gross profit on sales		267,390		264,147
Operating, general and administrative expenses		235,556		226,719
Income from operations		31,834		37,428
Investment income (loss) and interest expense		1,611		(4,019)
Other income (expense)		(775)		2,676
Income before provision for income taxes		32,670		36,085
Provision for income taxes		8,415		9,396
Net income	$	24,255	$	26,689

Weighted-average shares outstanding, basic and diluted		26,898,443		26,898,443
Cash dividends per share	$	0.31	$	0.31
Basic and diluted earnings per share	$	0.90	$	0.99



						Accumulated
(dollars in thousands, except shares)						Other						Total
For Thirteen Weeks Ended	Common Stock			Retained		Comprehensive		Treasury Stock				Shareholders’
March 27, 2021 and March 28, 2020	Shares	Amount		Earnings		Income (Loss)		Shares		Amount		Equity
Balance at December 26, 2020	33,047,807	$	9,949	$	1,283,737	$	3,286		6,149,364	$	(150,857)	$	1,146,115
Net Income	—		—		24,255		—		—		—		24,255
Other comprehensive income, net of
reclassification adjustments and tax	—		—		—		(774)		—		—		(774)
Dividends paid	—		—		(8,339)		—		—		—		(8,339)
Balance at March 27, 2021	33,047,807	$	9,949	$	1,299,653	$	2,512		6,149,364	$	(150,857)	$	1,161,257

Balance at December 28, 2019	33,047,807	$	9,949	$	1,198,173		1,480		6,149,364	$	(150,857)	$	1,058,745
Net income	—		—		26,689		—		—		—		26,689
Other comprehensive income, net of
reclassification adjustments and tax	—		—		—		89		—		—		89
Dividends paid	—		—		(8,339)		—		—		—		(8,339)
Balance at March 28, 2020	33,047,807	$	9,949	$	1,216,524	$	1,569		6,149,364	$	(150,857)	$	1,077,185



			Gross		Gross
(dollars in thousands)	Amortized		Unrealized		Unrealized		Fair
March 27, 2021	Cost		Holding Gains		Holding Losses		Value
Available-for-sale:
Level 1
Equity securities							$	7,648
Level 2
Corporate and municipal bonds	$	103,575	$	4,878	$	(1,374)		107,079
	$	103,575	$	4,878	$	(1,374)	$	114,727



		Unrealized Gains
		on Available-for-Sale
(dollars in thousands)		Marketable Securities
Accumulated other comprehensive income balance as of December 26, 2020	$	3,286

Other comprehensive loss before reclassifications		(774)
Net current period change in other comprehensive income		(774)
Accumulated other comprehensive income balance as of March 27, 2021	$	2,512



		Amounts Reclassified from
		Accumulated Other Comprehensive Income to the
		Consolidated Statements of Income
		13 Weeks Ended
(dollars in thousands)	Location	March 27, 2021		March 28, 2020
Unrealized gains (losses) on available-for-sale marketable securities
	Investment income (loss) and interest expense	$	-	$	(8)
	Provision for income taxes		-		2
Total amount reclassified, net of tax		$	-	$	(6)


	13 Weeks Ended
(dollars in thousands)	2021		2020
Operating lease cost	$	11,317	$	11,504
Variable lease cost		2,698		2,667
Lease or sublease income		(2,309)		(2,037)
Net lease cost	$	11,706	$	12,134



Analysis of Consolidated Statements of Income
							Percentage Changes
	13 Weeks Ended						2021 vs. 2020
(dollars in thousands except per share amounts)	March 27, 2021			March 28, 2020			13 Weeks Ended
Net sales	$	1,006,340		$	985,820			2.1	%
Cost of sales, including advertising, warehousing and distribution expenses		738,950			721,673			2.4
Gross profit on sales		267,390			264,147			1.2
Gross profit margin		26.6	%		26.8	%
Operating, general and administrative expenses		235,556			226,719			3.9
O, G & A, percent of net sales		23.4	%		23.0	%
Income from operations		31,834			37,428			(14.9)
Operating margin		3.2	%		3.8	%
Investment income (loss) and interest expense		1,611			(4,019)			140.1
Investment income (loss) and interest expense, percent of net sales		0.2	%		(0.4)	%
Other income (expense)		(775)			2,676			(129.0)
Other income (expense), percent of net sales		(0.1)	%		0.3	%
Income before provision for income taxes		32,670			36,085			(9.5)
Income before provision for income taxes, percent of net sales		3.2	%		3.7	%
Provision for income taxes		8,415			9,396			(10.4)
Effective income tax rate		25.8	%		26.0	%
Net income	$	24,255		$	26,689			(9.1)	%
Net income, percent of net sales		2.4	%		2.7	%
Basic and diluted earnings per share	$	0.90		$	0.99			(9.1)	%


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

	13 Weeks Ended
(dollars in thousands)	Increase		Increase (Decrease)
March 27, 2021	(Decrease)		as a % of sales
Direct store labor	$	4,455	0.3	%
Fixed expenses		2,205	0.1


	Exhibit 31.1 Rule a-14(a) Certification - CEO
	Exhibit 31.2 Rule 13a-14(a) Certification - CFO
	Exhibit 32 Certification Pursuant to 18 U.S.C. Section 1350


		Amortized		Fair
(dollars in thousands)		Cost		Value
Available-for-sale:
Due within one year	$	6,631	$	6,675
Due after one year through five years		44,550		46,223
Due after five years through ten years		52,394		54,181
	$	103,575	$	107,079


	13 Weeks Ended
(dollars in thousands)	March 27, 2021				March 28, 2020
Grocery	$	874,073	86.9	%	$	863,747	87.6	%
Pharmacy		95,597	9.5			89,333	9.1
Fuel		34,372	3.4			29,967	3.0
Manufacturing		2,298	0.2			2,773	0.3

Total net sales	$	1,006,340	100.0	%	$	985,820	100.0	%


		WEIS MARKETS, INC.
		(Registrant)

Date:	5/6/2021	/S/Jonathan H. Weis
		Jonathan H. Weis
		Chairman,
		President and Chief Executive Officer
		(Principal Executive Officer)

Date:	5/6/2021	/S/Michael T. Lockard
		Michael T. Lockard
		Senior Vice President, Chief Financial Officer
		and Treasurer
		(Principal Financial Officer)