WEIS MARKETS INC. Files 2023 Annual Report on Form 10-K

TL;DR

<b>WEIS MARKETS INC. filed its 2023 10-K report detailing its fiscal year performance and financial standing.</b>

AI Summary

WEIS MARKETS INC (WMK) filed a Annual Report (10-K) with the SEC on February 28, 2024. Filing covers the fiscal year ending December 30, 2023. Company is WEIS MARKETS INC., ticker WMK, SIC code 5411 (Grocery Stores). Incorporated in Pennsylvania with principal business address in Sunbury, PA. The filing includes data related to various financial statement line items and disclosures. References to fair value inputs (Level 1 and Level 2) are included.

Why It Matters

For investors and stakeholders tracking WEIS MARKETS INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of WEIS MARKETS INC.'s financial health, operational segments, and risk factors for the fiscal year 2023, crucial for investors to assess performance and future outlook. The detailed financial data and segment information within the report are essential for understanding the company's revenue streams, profitability, and asset base, enabling informed investment decisions.

Risk Assessment

Risk Level: medium — WEIS MARKETS INC shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains detailed financial information, it does not highlight any immediate or severe financial distress or significant new risks beyond typical operational and market factors for a grocery retailer.

Analyst Insight

Investors should review the detailed segment performance and financial metrics in the 10-K to understand WEIS MARKETS INC.'s competitive position and growth prospects within the grocery retail sector.

Revenue Breakdown

Key Numbers

• 2023-12-30 — Fiscal Year End (Conformed period of report)
• 2024-02-28 — Filing Date (Filed as of date)
• 570-286-4571 — Business Phone (Company contact information)

Key Players & Entities

• WEIS MARKETS INC (company) — Filer name
• WMK (company) — Ticker symbol
• 5411 (dollar_amount) — Standard Industrial Classification code for Grocery Stores
• PA (company) — State of incorporation
• 2023-12-30 (date) — Conformed period of report
• 2024-02-28 (date) — Filed as of date

FAQ

Key Dates

• 2023-12-30: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-28: Filing Date — Date the 10-K was officially filed with the SEC.

Filing Documents

• wmk-20231230x10k.htm (10-K) — 1751KB
• wmk-20231230xex21.htm (EX-21) — 11KB
• wmk-20231230xex31d1.htm (EX-31.1) — 13KB
• wmk-20231230xex31d2.htm (EX-31.2) — 13KB
• wmk-20231230xex32.htm (EX-32) — 7KB
• wmk-20231230xex10dc.htm (EX-10.C) — 376KB
• wmk-20231230xex10dd.htm (EX-10.D) — 6KB
• wmk-20231230xex97.htm (EX-97) — 35KB
• wmk-20231230x10k002.jpg (GRAPHIC) — 33KB
• 0000105418-24-000015.txt (&nbsp;) — 8100KB
• wmk-20231230.xsd (EX-101.SCH) — 54KB
• wmk-20231230_cal.xml (EX-101.CAL) — 74KB
• wmk-20231230_def.xml (EX-101.DEF) — 104KB
• wmk-20231230_lab.xml (EX-101.LAB) — 429KB
• wmk-20231230_pre.xml (EX-101.PRE) — 339KB
• wmk-20231230x10k_htm.xml (XML) — 1314KB

Business

Item 1. Business 1

Risk Factors

Item 1a. Risk Factors 4

Unresolved Staff Comments

Item 1b. Unresolved Staff Comments 7

Cybersecurity

Item 1c. Cybersecurity 7

Properties

Item 2. Properties 8

Legal Proceedings

Item 3. Legal Proceedings 8

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 8 Information about our Executive Officers 9 Part II 11

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 11

[Reserved]

Item 6. [Reserved] 11

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 12

Quantitative and Qualitative Disclosures about Market Risk

Item 7a. Quantitative and Qualitative Disclosures about Market Risk 22

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 23

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 43

Controls and Procedures

Item 9a. Controls and Procedures 43

Other Information

Item 9b. Other Information 43

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9c. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 43 Part III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 44

Executive Compensation

Item 11. Executive Compensation 44

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 44

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 44

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 44 Part IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 44

(c)(3). Schedule II - Valuation and Qualifying Accounts

Item 15(c)(3). Schedule II - Valuation and Qualifying Accounts 46

Form 10-K Summary

Item 16. Form 10-K Summary 46

Signatures

Signatures 47 Exhibit 21 Subsidiaries of the Registrant 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 Table of Contents WEIS MARKETS, INC. PART I

Business

Item 1. Business: Weis Markets, Inc. (Weis Markets or the Company) is a Pennsylvania business founded by Harry and Sigmund Weis in 1912 and incorporated in 1924. The Company is engaged principally in the retail sale of food in Pennsylvania and surrounding states. There was no material change in the nature of the Company's business during fiscal 2023. The Company's stock has been traded on the New York Stock Exchange since 1965 under the symbol "WMK." The Weis family currently owns approximately 65% of the outstanding shares. Jonathan H. Weis serves as Chairman of the Board of Directors, President and Chief Executive Officer. The Company's retail food stores sell groceries, dairy products, frozen foods, meats, seafood, fresh produce, floral, pharmacy services, deli products, prepared foods, bakery products, beer and wine, fuel and general merchandise items, such as health and beauty care and household products. The store product selection includes national, local and private brands including natural, gluten-free and organic varieties. The Company advertises its products and promotes its brand through digital and printed circulars; television ads; radio ads; e-mail blasts; and on-line via its web site, social media and mobile applications. The Company promotes competitive pricing by using Everyday Lower Price; Low Price Guarantee; Low, Low Price; 3 Day Sale; senior and military discounts; and Loyalty programs. The Loyalty program includes reward points that may be redeemed for discounts on items in store, at the Company's fuel stations or at one of its third-party fuel station partners. The Company currently owns and operates 197 retail food stores many of which have on-line order customer service. The Company's operations are reported as a single reportable segment. The majority of the Company's revenues are generally not seasonal in nature. However, revenues tend to be higher during the major holidays throughout the year. Additionally, significant inclement weath

Business: (continued)

Item 1. Business: (continued) All retail food store locations operate as conventional supermarkets. The retail food stores range in size from 8,000 to 71,000 square feet, with an average size of approximately 49,000 square feet. The Company's store fleet includes a variety of sizes with a few locations in operation since the 1950s; all stores are branded Weis Markets and provide the same basic offerings scaled to the size of each store. The following summarizes the number of stores by size categories as of year-end: 2023 2023 2022 2022 Square feet Number of stores % of Total Number of stores % of Total Over 55,000 64 32% 64 32% 45,000 to 54,999 70 36% 70 36% 35,000 to 44,999 46 23% 46 23% 25,000 to 34,999 12 6% 12 6% Under 25,000 5 3% 5 3% Total 197 100% 197 100% The Company believes that opening new stores and remodeling current stores are vital for future Company growth. The location and appearance of its stores are important components of attracting new and retaining current customers. On an average basis, the Company has two to three new/relocated stores in the process of being developed and dedicates one third of its capital expenditure budget to new stores annually, excluding acquisitions. Significant labor and supply chain disruptions in 2022 and 2023 resulted in multiple store development and construction projects (new, relocated, addition, major remodel) to be carried over for completion in 2024 and 2025 as supply chain conditions stabilize. Generally, another fifteen to twenty percent of the capital expenditure budget is dedicated to store remodels while the remainder is attributable to supply chain, technology, smaller in-store sales-driven projects, store maintenance and store support function expenditures. The following schedule shows the changes in the number of retail food stores, total square footage and store additions/remodels as of year-end: 2023 2022 2021 2020 2019 Beginn

Business: (continued)

Item 1. Business: (continued) The Company strives to be good stewards of the environment and makes this an important part of its overall mission. Its sustainability strategy operates under four key pillars: green design, natural resource conservation, food and agricultural impact and community impact. The goal of the sustainability strategy is to reduce the Company's overall carbon footprint by reducing greenhouse gas emissions and reducing the impact on the environment. The Company continues to be a member of the EPA GreenChill program for advancing environmentally beneficial refrigerant management systems. The Company currently has thirteen stores certified under this program and plans to expand this program to more stores. Since 2017, the Company has replaced 96% of its stores fluorescent lighting with more energy efficient and environmentally friendly LED lighting. The Company continues to emphasize recycling in all areas, most recently noting a decrease in store waste where the Company has diverted approximately 43 thousand tons of waste from landfills. These statistics and more can be found in the Company's most recently published sustainability report, linked below in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. The Company operates in a highly competitive marketplace. The number and the variety of competitors vary by market. The Company's principal competition consists of international, national, regional and local food chains, as well as independent food stores. The Company also faces substantial competition from convenience stores, membership warehouse clubs, specialty retailers, supercenters and large-scale drug and pharmaceutical chains. This competition is augmented by the food retail industry's expansion into the online market in recent years. The Company continues to effectively compete by offering a strong combination of value, quality and service. The Company has provided additional product offeri

Business: (continued)

Item 1. Business: (continued) material or furnishes it to the U.S. Securities and Exchange Commission (SEC) by clicking on the "SEC Information" link. The Company's Corporate Governance materials can be found on the "Governance" page of its web site. These materials include the Corporate Governance Guidelines; the Charters of the Audit, Compensation and Disclosure Committees; and both the Code of Business Conduct and Ethics and the Code of Ethics for the CEO and CFO. A copy of the foregoing corporate governance materials is available upon written request to the Company's principal executive offices.

Risk Factors

Item 1a. Risk Factors: Competitive and Reputational Risks The Company's industry is highly competitive. If the Company is unable to compete effectively, the Company's financial condition and results of operations could be materially affected. The retail food industry is intensely price competitive, and the competition the Company encounters may have a negative impact on product retail prices. The operating environment continues to be characterized by aggressive expansion, entry of non-traditional competitors, market consolidation and increasing fragmentation of retail and online formats. The introduction of on-line food retail in recent years has augmented competition in industry. The financial results may be adversely impacted by a competitive environment that could cause the Company to reduce retail prices without a reduction in its product cost to maintain market share; thus, reducing sales and gross profit margins. Food safety issues could result in the loss of consumer confidence in the Company. Customers count on the Company to provide them with safe and wholesome food products. Concerns regarding the safety of food products sold in its stores could cause shoppers to avoid purchasing certain products from the Company, or to seek alternative sources of supply for all of their food needs, even if the basis for the concern is outside of the Company's control. A loss in confidence on the part of its customers would be difficult and costly to reestablish. As such, any issue regarding the safety of any food items sold by the Company, regardless of the cause, could have a substantial and adverse effect on operations. The Company may be unable to retain key management personnel. The Company's success depends to a significant degree upon the continued contributions of senior management. The loss of any key member of management may prevent the Company from implementing its business plans in a timely manner. In addition, employment conditions specifically may aff

Risk Factors: (continued)

Item 1a. Risk Factors: (continued) synergies and the integration process, unforeseen expenses and delays diverting Management's time and attention and competitive factors in the marketplace. The Company's investment portfolio may suffer losses from changes in market interest rates and changes in market conditions which could adversely affect results of operations and liquidity. The Company's marketable securities consist of corporate and municipal bonds, commercial paper and equity securities. These investments are subject to general credit, liquidity, market and interest rate risks. As a result, the Company may experience a reduction in value or loss of liquidity from investments, which may have a negative impact on the Company's financial condition and results of operations. Unexpected factors affecting self-insurance claims and reserve estimates could adversely affect the Company. The Company uses a combination of insurance and self-insurance to provide for potential liabilities for workers' compensation, general liability, vehicle accident, property and associate medical benefit claims. Management estimates the liabilities associated with the risks retained by the Company, in part, by considering historical claims experience, demographic and severity factors and other actuarial assumptions which, by their nature, are subject to a high degree of variability. Any projection of losses concerning workers' compensation and general liability is subject to a high degree of variability. Among the causes of this variability are unpredictable external factors affecting future inflation rates, litigation trends, legal interpretations, benefit level changes and claim settlement patterns. Information Security, Cybersecurity and Data Privacy Risks Disruptions or cybersecurity breaches in the Company's information technology systems could adversely affect results of operations. The Company's business is highly dependent on complex information technology systems that a

Risk Factors: (continued)

Item 1a. Risk Factors: (continued) Changes in vendor promotions or allowances, including the way vendors target their promotional spending, and the Company's ability to effectively manage these programs could significantly impact margins and profitability. The Company cooperatively engages in a variety of promotional programs with its vendors. As the parties assess the results of specific promotions and plan for future promotions, the nature of these programs and the allocation of dollars among them changes over time. The Company manages these programs to maintain or improve margins while at the same time increasing sales. A reduction in overall promotional spending or a shift by vendors in promotional spending away from certain types of promotions that the Company and its customers have historically utilized could have a significant impact on profitability. Legal, Regulatory and Other External Risks The trade area of the Company is located within a region and is subject to the economic, social and climate variables of that region. The majority of the Company's stores are concentrated in central and northeast Pennsylvania, central Maryland, suburban Washington, DC and Baltimore regions and New York's Southern Tier. Changes in economic and social conditions in the Company's operating regions, including fluctuations in the inflation rate along with changes in population and employment and job growth rates and changes in government benefits such as SNAP/EBT or child care credits, affect customer shopping habits. Business disruptions due to weather and catastrophic events may also affect our business. The Company's geographic regions could receive an extreme variance in the amount of annual snowfall that may materially affect sales and expense results. Various aspects of the Company's business are subject to federal, state and local laws and regulations. The Company is subject to various federal, state and local laws, regulations and administrative practices th

Risk Factors: (continued)

Item 1a. Risk Factors: (continued) The Company's business and operations, and the operations of the Company's suppliers, have been, and may in the future be adversely affected by epidemics or pandemics such as the novel Coronavirus (COVID-19) pandemic outbreak. The Company may face risks related to health epidemics and pandemics or other outbreaks of communicable diseases. The global spread of COVID-19 created significant volatility, uncertainty and economic disruption. The Company's business was deemed essential during the novel coronavirus pandemic and the Company is committed to maintaining a safe work and shopping environment. Management cannot assess the ultimate economic impact to the Company, which will be determined by, among other things, the length of time that such circumstances occur, nor can the Company predict the effects of governmental and public responses to changing conditions. The risks and uncertainties surrounding the coronavirus pandemic, as well as any future pandemics, are broad.

Unresolved Staff Comments

Item 1b. Unresolved Staff Comments: There are no unresolved staff comments.

Cybersecurity

Item 1c. Cybersecurity: Risk Management and Strategy The Company utilizes information systems to support a variety of business processes and activities in its operations. These systems may be subject to cyber-based attacks or breaches. Some examples of the cybersecurity threats that could negatively impact the Company are credit card skimmers, denial of service attacks

View Full Filing

View this 10-K filing on SEC EDGAR