Weis Markets Inc. Files 10-Q for Period Ending March 30, 2024

TL;DR

<b>Weis Markets Inc. (WMK) has filed its Q1 2024 10-Q report, detailing financial positions and credit facilities.</b>

AI Summary

WEIS MARKETS INC (WMK) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. Weis Markets Inc. filed a 10-Q report for the period ending March 30, 2024. The company is classified as a Large Accelerated Filer. The filing includes data related to various financial statement line items such as Retained Earnings, Accumulated Other Comprehensive Income, and Treasury Stock. Specific segments like Pharmacy, Manufacturing, Grocery, and Fuel Product are referenced with associated dates. Information regarding the Revolving Credit Facility with Wells Fargo Bank National Association is detailed as of March 30, 2024.

Why It Matters

For investors and stakeholders tracking WEIS MARKETS INC, this filing contains several important signals. This filing provides investors with the latest quarterly financial performance and position of Weis Markets Inc., crucial for assessing the company's health and investment potential. The detailed breakdown of financial elements and credit agreements offers transparency into the company's operational and financial structure.

Risk Assessment

Risk Level: low — WEIS MARKETS INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) with no immediate red flags or significant negative disclosures, indicating a routine update on the company's financial status.

Analyst Insight

Monitor future filings for revenue growth, net income trends, and any changes in debt levels or credit facility terms.

Key Numbers

• 2024-03-30 — Period End Date (Quarterly report period)
• 2024-05-09 — Filing Date (Date the report was filed)
• 12-28 — Fiscal Year End (Company's fiscal year end date)

Key Players & Entities

• WEIS MARKETS INC (company) — Filer name
• WMK (company) — Ticker symbol
• 2024-03-30 (date) — Period of report
• 2024-05-09 (date) — Filing date
• Wells Fargo Bank National Association (company) — Lender for revolving credit facility

FAQ

Industry Context

Weis Markets Inc. operates in the grocery store retail sector, a highly competitive industry characterized by thin margins and sensitivity to consumer spending and economic conditions.

Regulatory Implications

As a publicly traded company, Weis Markets Inc. is subject to SEC regulations, including the requirement to file quarterly reports (10-Q) to ensure transparency and provide investors with timely financial information.

What Investors Should Do

1. Review the full 10-Q filing for detailed financial statements and management discussion.
2. Analyze segment performance data if available in the full report.
3. Track any future disclosures regarding the company's credit facilities or debt obligations.

Key Dates

• 2024-03-30: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-05-09: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the first quarterly report for fiscal year 2024, providing an update from the previous fiscal year-end filings.

Filing Documents

• wmk-20240330x10q.htm (10-Q) — 820KB
• wmk-20240330xex31d1.htm (EX-31.1) — 14KB
• wmk-20240330xex31d2.htm (EX-31.2) — 13KB
• wmk-20240330xex32.htm (EX-32) — 7KB
• 0000105418-24-000038.txt (&nbsp;) — 3590KB
• wmk-20240330.xsd (EX-101.SCH) — 24KB
• wmk-20240330_cal.xml (EX-101.CAL) — 44KB
• wmk-20240330_def.xml (EX-101.DEF) — 67KB
• wmk-20240330_lab.xml (EX-101.LAB) — 245KB
• wmk-20240330_pre.xml (EX-101.PRE) — 173KB
• wmk-20240330x10q_htm.xml (XML) — 454KB

Financial Information

Part I. Financial Information

Financial Statements

Item 1. Financial Statements Condensed Consolidated Balance Sheets 1 Condensed Consolidated Statements of Income 2 Condensed Consolidated Statements of Comprehensive Income 3 Condensed Consolidated Statements of Shareholders' Equity 4 Condensed Consolidated Statements of Cash Flows 5 Notes to Condensed Consolidated Financial Statements 6

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 10

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 17

Controls and Procedures

Item 4. Controls and Procedures 17

Other Information

Part II. Other Information

Exhibits

Item 6. Exhibits 18

Signatures

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 Table of Contents WEIS MARKETS, INC.

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION ITEM I – FINANCIAL STATEMENTS CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (amounts in thousands, except shares) March 30, 2024 December 30, 2023 Assets Current: Cash and cash equivalents $ 136,184 $ 184,217 Marketable securities 261,341 225,991 SERP investment 29,156 26,651 Accounts receivable, net 66,080 65,092 Inventories 295,761 296,157 Prepaid expenses and other current assets 34,976 34,107 Total current assets 823,499 832,214 Property and equipment, net 970,127 961,353 Operating lease right-to-use 166,089 174,208 Goodwill 52,330 52,330 Intangible and other assets, net 20,799 19,527 Total assets $ 2,032,843 $ 2,039,632 Liabilities Current: Accounts payable $ 224,849 $ 226,164 Accrued expenses 24,957 42,676 Operating leases 40,413 40,658 Accrued self-insurance 19,124 18,353 Deferred revenue, net 9,737 12,416 Income taxes payable 7,971 516 Total current liabilities 327,051 340,782 Postretirement benefit obligations 30,736 29,032 Accrued self-insurance 25,165 25,174 Operating leases 134,184 142,345 Deferred income taxes 117,527 118,091 Other 10,277 9,871 Total liabilities 644,941 665,296 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 1,530,458 1,516,438 Accumulated other comprehensive income (loss) (Net of deferred taxes of $ 455 in 2024 and $ 430 in 2023) ( 1,648 ) ( 1,193 ) 1,538,759 1,525,194 Treasury stock at cost, 6,149,364 shares ( 150,857 ) ( 150,857 ) Total shareholders' equity 1,387,902 1,374,337 Total liabilities and shareholders' equity $ 2,032,843 $ 2,039,632 See accompanying notes to Condensed Consolidated Financial Statements. 1 Table of Contents WEIS MARKETS, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOM

MANAGEMENT'S DISCUSSION AND ANALYSIS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis of Weis Markets, Inc.'s (the "Company") financial condition and results of operations should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and related notes included in Item 1 of this Quarterly Report on Form 10-Q, the Company's audited Consolidated Financial Statements and the related notes included in the Company's Annual Report on Form 10-K for the year ended December 30, 2023, filed with the U.S. Securities and Exchange Commission, as well as the cautionary statement captioned "Forward-Looking Statements" immediately following this analysis. Company Summary Weis Markets is a conventional supermarket chain that operates 196 retail stores with over 23 thousand associates located in Pennsylvania and six surrounding states: Delaware, Maryland, New Jersey, New York, Virginia and West Virginia. Approximately 95% of Weis Markets associates are paid an hourly wage. Its products sold include groceries, dairy products, frozen foods, meats, seafood, fresh produce, floral, pharmacy services at certain locations, 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 and 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 one of the Company's fuel stations or one of its third-party fuel station partners. Utilizing its own strategically located distribution center and transportation fleet, Weis Markets self distributes approximately 53% of products with the remaining being supplied by direct store delivery vendors

MANAGEMENT'S DISCUSSION AND ANALYSIS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) Two-Year Stacked Comparable Store Sales Analysis Management is providing Comparable Store Sales Two-Year Stacked analysis, a non-GAAP measure, because management believes this metric is useful to investors and analysts. A Comparable Store Sales Two-Year Stacked analysis presents a comparison of results and trends over a longer period of time to demonstrate the effect of fluctuating economic activity on the operating results of the Company. Information presented in the tables below is not intended for use as an alternative to any other measure of performance. It is not recommended that this table be considered a substitute for the Company's operating results as reported in accordance with GAAP. Year-over-year and sequential comparisons are the primary calculations used to analyze operating results, however, due to fluctuations caused by declining government benefits, pharmacy sales growth, the Easter holiday shift to the first quarter of fiscal 2024 from the second quarter of fiscal 2023 and inflationary trends in the food retail industry, management believes it is necessary to provide a Two-Year Stacked Comparable Store Sales analysis. The following tables provide the two-year stacked comparable store sales, including and excluding fuel, for the periods ended March 30, 2024, and April 1, 2023, as well as periods ended April 1, 2023, and March 26, 2022, respectively. Comparable store sales increased 3.1 percent on an individual year-over-year basis and increased 6.2 percent on a two-year stacked basis for the thirteen weeks ended March 30, 2024. Percentage Change 13 Weeks Ended 2024 vs. 2023 2023 vs. 2022 Comparable store sales, excluding fuel (individual year) 3.3 % 3.6 % Comparable store sales, excluding fuel (two-year stacked) 6.9 Comparable store sales (individual year) 3.1 3.1 % Comparable store sales (two-year stacked) 6.2

MANAGEMENT'S DISCUSSION AND ANALYSIS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) Results of Operations Analysis of Consolidated Statements of Income Percentage Change 13 Weeks Ended 13 Weeks Ended (amounts in thousands, except per share amounts) March 30, 2024 April 1, 2023 2024 vs. 2023 Net sales $ 1,178,168 $ 1,144,974 2.9 % Cost of sales, including advertising, warehousing and distribution expenses 887,194 859,185 3.3 Gross profit on sales 290,974 285,789 1.8 Gross profit margin 24.7 % 25.0 % Operating, general and administrative expenses 263,610 253,171 4.1 O, G & A, percent of net sales 22.4 % 22.1 % Income from operations 27,364 32,618 (16.1) Operating margin 2.3 % 2.8 % Investment income (loss) and interest expense 5,552 3,798 46.2 Investment income (loss) and interest expense, percent of net sales 0.5 % 0.3 % Other income (expense) (1,401) (1,258) 11.4 Other income (expense), percent of net sales (0.1) % (0.1) % Income before provision for income taxes 31,514 35,158 (10.4) Income before provision for income taxes, percent of net sales 2.7 % 3.1 % Provision for income taxes 8,349 9,344 (10.6) Effective income tax rate 26.5 % 26.6 % Net income $ 23,165 $ 25,814 (10.3) % Net income, percent of net sales 2.0 % 2.3 % Basic and diluted earnings per share $ 0.86 $ 0.96 (10.4) % Net Sales Individual Year-Over-Year Analysis of Sales Percentage Change 2024 vs. 2023 March 30, 2024 13 Weeks Ended Net sales, excluding fuel 3.3 % Net sales 2.9 Net sales, adjusted for Easter shift 2.0 Comparable store sales, excluding fuel (individual year) 3.3 Comparable store sales (individual year) 3.1 Comparable store sales, adjusted for Easter shift (individual year) 1.9 % When calculating the percentage change in comparable store sales, the Company defines

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