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SECURITIES & EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-K
(Mark One)
[x] Annual Report Pursuant to Section 13 or 15(d) of the
Securities and Exchange Act of 1934 (Fee Required)
For the fiscal year ended: July 29, 2000.
[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities and Exchange Act of 1934 (Fee Required) for
the transition period from to .
COMMISSION FILE NUMBER: 0-2633
VILLAGE SUPER MARKET, INC.
(Exact name of registrant as specified in its charter)
NEW JERSEY 22-1576170
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
733 MOUNTAIN AVENUE, SPRINGFIELD, NEW JERSEY 07081
(Address of principal executive offices) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (973)467-2200
Securities registered pursuant to Section 12(b) of the Act:
TITLE OF EACH CLASS NAME OF EACH EXCHANGE ON WHICH REGISTERED
None None
Securities registered pursuant to Section 12(g) of the Act:
CLASS A COMMON STOCK, NO PAR VALUE
(Title of Class)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K is not contained herein,
and will not be contained, to the best of registrant's knowledge,
in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [x]
The aggregate market value of the Class A common stock of Village
Super Market, Inc. held by non-affiliates was approximately
$12,296,000 and the aggregate market value of the Class B common
stock held by non-affiliates was approximately $3,654,000 (based
upon the closing price of the Class A shares on the Over the
Counter Market on October 2, 2000). There are no other classes
of voting stock outstanding.
Indicate the number of shares outstanding of each of the
registrant's classes of common stock, as of latest practicable
date.
Outstanding at
Class October 20, 2000
Class A common stock, no par value 1,419,400 Shares
Class B common stock, no par value 1,594,076 Shares
DOCUMENTS INCORPORATED BY REFERENCE
Information contained in the 2000 Annual Report to Shareholders
and the 2000 definitive Proxy Statement to be filed with the
Commission and delivered to security holders in connection with
the Annual Meeting scheduled to be held on December 8, 2000 are
incorporated by reference into this Form 10-K at Part II,
Items 5, 6, 7 and 8 and Part III.
PART I
ITEM I. BUSINESS
FORWARD-LOOKING STATEMENTS
All statements, other than statements of historical fact,
included in this Form 10-K are or may be considered forward-
looking statements within the meaning of federal securities
law. The Company cautions the reader that there is no
assurance that actual results or business conditions will not
differ materially from future results, whether expressed,
suggested or implied by such forward-looking statements. Such
potential risks and uncertainties include, without limitation,
local business conditions, competitive pressures from the
Company's operating environment, the ability of the Company to
maintain and improve its sales and margins, the ability to
attract and retain associates, the availability of new store
locations, the liquidity of the Company on a cash flow basis,
the success of operating initiatives, results of ongoing
litigation and other risk factors detailed herein and in other
filings of the Company.
GENERAL
The Company operates a chain of 22 ShopRite supermarkets,
15 of which are located in northern New Jersey, one of which
is in northeastern Pennsylvania and six of which are in the
southern shore area of New Jersey. In addition, the Company
operates one former ShopRite store under a "Village Market"
format as described below, which is expected to close in
fiscal 2001. The Company is a member of Wakefern Food
Corporation ("Wakefern"), the nation's largest retailer
owned food cooperative and owner of the ShopRite name.
This relationship provides the Company many of the economies
of scale in purchasing, distribution, advanced retail
technology and advertising associated with chains
of greater size and geographic reach.
The Company believes that the regional nature of its business
and the continuity of its management under the leadership of
its founding family have permitted the Company to operate with
greater flexibility and responsiveness to the demographic
characteristics of the communities served by its stores.
The Company seeks to generate high sales volume by offering a
wide variety of high quality products at consistently low
prices. The Company attempts to efficiently utilize its selling
space, gives continuing attention to the decor and format of
its stores and tailors each store's product mix to the
preferences of the local community. The Company concentrates
on the development of superstores which average 58,000 total
square feet, compared with an average of 30,000 total square
feet for conventional supermarkets. Several of the Company's
recent remodels have expanded superstores to 65,000 square feet
These larger store sizes enable the Company to feature expanded
higher margin specialty service departments such as home meal
replacement, an on-site bakery, an expanded delicatessen
including prepared foods, and a fresh seafood section.
Superstores also offer an expanded selection of non-food items
such as cut flowers, health and beauty aids, greeting cards,
videocassette rentals, small appliances and in most cases,
a pharmacy. Two superstores also include a warehouse section
featuring products in giant sizes. Recently remodeled
superstores emphasize a Power Alley, which features high margin
convenience offerings such as salad bars, bakery and home meal
replacement in an area within the store that provides quick
customer entry and exit for those customers shopping for today's
lunch or dinner. The following table shows the percentage of
the Company's sales allocable to various product categories
during each of the periods indicated as well as the number of
the Company's superstores and percentage of selling square feet
allocable to these stores during each of these periods:
Product Categories Fiscal Year Ended In July
1998 1999 2000
Groceries 41.6% 41.2% 41.1%
Dairy and Frozen 15.9 16.1 16.0
Meats 9.9 9.6 9.7
Non-Foods 10.4 10.8 10.4
Produce 10.2 10.0 10.0
Deli and prepared 4.6 4.6 4.5
Seafood 2.1 2.0 2.0
Pharmacy 3.6 4.0 4.5
Bakery 1.6 1.6 1.6
Other .1 .1 .2
100.0% 100.0% 100.0%
Number of superstores 19 20 20
Selling square feet
represented by
superstores 90% 92% 92%
A variety of factors affect the profitability of each of the
Company's stores including local competitors, size, access
and parking, lease terms, management supervision, and the
strength of the ShopRite trademark in the local community.
The Company continually evaluates individual stores to decide
whether they should be closed. Accordingly, the Orange,
Maplewood, Kingston, Morristown, Easton and Florham Park
stores have been closed since December 1991.
The Company operates a separate liquor store adjacent to one
Company supermarket.
DEVELOPMENT AND EXPANSION
The Company is engaged in a continuing program to upgrade and
expand its supermarket chain. This program has included major
store remodelings as well as the opening or acquisition of
additional stores. When remodeling, the Company has sought,
whenever possible, to increase the amount of selling space in
its stores and, where feasible within existing site limitations,
to convert conventional supermarkets to superstores. In fiscal
2000, the Company purchased land in Garwood, N.J., the site of
a future superstore, and substantially remodeled the interior of
the Vineland store. In fiscal 1999, the Company completed the
22,000 square foot expansion and remodel of the Livingston
store. In addition, the Company acquired a leased 67,000
square foot store in Vineland, New Jersey in May 1999 from
Wakefern. The Company has budgeted $16,000,000 for capital
expenditures in fiscal 2001. The major planned expenditures
are the replacement of the West Orange store, (completed in
August 2000) and the construction of the Garwood store.
In the last five years, the Company has completed five
remodels and one store acquisition. The Company's goal has
been to open an average of one new superstore and conduct a
major remodel of one store each year. However, because of
delays associated with increased governmental regulations and
the general difficulty in developing retail properties in the
Company's primary trading area the Company has been unable to
open the desired number of new stores. Additional store
remodelings and sites for new stores are in various stages
of development. The Company will also consider additional
acquisitions should appropriate opportunities arise.
WAKEFERN
The Company is the second largest member of Wakefern (owning
14.7% of Wakefern's outstanding stock) and one of the Company's
principal shareholders was a founder of Wakefern. Wakefern,
which was organized in 1946, is the nation's largest
retailer-owned food cooperative. There are presently 42
individual member companies and 205 supermarkets which comprise
the Wakefern cooperative. Only Wakefern and member companies
are entitled to use the ShopRite name and trademark, and
participate in ShopRite advertising and promotional programs.
The principal benefits to the Company from its relationship with
Wakefern are the use of the ShopRite name and trademark, volume
purchasing, ShopRite private label products, distribution and
warehousing economies of scale, ShopRite advertising and
promotional programs including the ShopRite Price Plus card and
the development of shared, advanced retail technology. The
Company believes that the ShopRite name is widely recognized by
its customers and is a factor in those customers' decisions about
where to shop. In addition, Wakefern can purchase large
quantities and varieties of products at favorable prices which it
can then pass onto its members. These benefits are important to
the Company's success.
Wakefern distributes as a "patronage dividend" to each of its
stockholders a share of earnings of Wakefern in proportion to the
dollar volume of business done by the stockholder with Wakefern
during each fiscal year.
While Wakefern has a substantial professional staff, it operates
as a member owned cooperative. Executives of most members make
contributions of time to the business of Wakefern. Senior
executives of the Company spend a significant amount of their
time working on various Wakefern committees which oversee and
direct Wakefern purchases and other programs.
Most of the Company's advertising is developed and placed by
Wakefern's professional advertising staff. Wakefern is
responsible for all television, radio and major newspaper
advertisements. Wakefern bills its members by various formulas
which distribute advertising costs in accordance with the
estimated proportional benefits to each member from such
advertising. The Company also places Wakefern developed
materials with local newspapers.
Wakefern operates warehouses and distribution facilities in
Elizabeth, New Jersey; Wallkill, New York; and South Brunswick,
New Jersey. Each member is obligated to purchase from Wakefern
a minimum of 85% of its requirements for products offered by
Wakefern until ten years from the date that stockholders
representing 75% of Wakefern sales notify Wakefern that those
stockholders request the Wakefern Stockholder Agreement be
terminated. If this purchase obligation is not met, the member
is required to pay Wakefern's profit contribution shortfall
attributable to this failure. This agreement also requires that
in the event of unapproved changes in control of the Company or
a sale of the Company or of individual Company stores,
except to a qualified successor, the Company in such cases
must pay Wakefern an amount equal to the present value of ten
years of the profit contribution shortfall attributable to the
sale of store or change in control. Such payments were waived by
Wakefern in connection with the sale of the Orange, Maplewood,
Kingston and Morristown stores. A "qualified successor" must be
or agree to become a member of Wakefern and may not own or operate
any supermarkets other than ShopRite supermarkets, in the states
of New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia,
Connecticut, Massachusetts, Rhode Island, Vermont, New Hampshire,
Maine or the District of Columbia or own or operate more than 25
non-ShopRite supermarkets in any other locations in the
United States.
Wakefern, under circumstances specified in its bylaws, may refuse
to sell merchandise to, and may repurchase the Wakefern stock
of any member. Such circumstances include certain unapproved
transfers by a member of its supermarket business or its capital
stock in Wakefern, unapproved acquisition by a member of certain
supermarket or grocery wholesale supply businesses, the
material breach by a member of any provision of the bylaws of
Wakefern or any agreement with Wakefern or a determination by
Wakefern that the continued supplying of merchandise or services
to such member would adversely affect Wakefern.
Any material change in Wakefern's method of operation or a
termination or material modification of the Company's
relationship with Wakefern following expiration of the above
agreements or otherwise (none of which are contemplated or
considered likely) might have an adverse impact on the conduct
of the Company's business and could involve additional expense
for the Company. The failure of any Wakefern member to fulfill
its obligations under these agreements or a member's insolvency
or withdrawal from Wakefern could result in increased costs
to remaining members.
Wakefern owns and operates 17 supermarkets. The Company believes
that Wakefern may consider purchasing additional stores in the
future from non-members and from existing members who may desire
to sell their stores for financial, estate planning or other
reasons. The Company also understands that Wakefern may consider
opening and operating new ShopRite supermarkets as well.
Wakefern does not prescribe geographical franchise areas to its
members. The specific locations at which the Company, other
members of Wakefern or Wakefern itself may open new units under
the ShopRite names are, however, subject to the approval of
Wakefern's Site Development Committee. This committee is composed
of persons who are not employees or members of Wakefern and from
whose decision to deny a site application may be appealed to the
Wakefern Board of Directors. Wakefern assists its members in their
site selection by providing appropriate demographic data, volume
projections and projections of the impact of the proposed market
on existing member supermarkets in the area.
Each member's Wakefern stock (including the Company's) is pledged
to Wakefern to secure all of that member's obligations to
Wakefern. Moreover, every owner of 5% or more of the voting stock
of a member (including five members of the Sumas family) must
personally guarantee prompt payment of all amounts due Wakefern from
that member. Wakefern does not own any securities of the Company or
its subsidiaries.
Each of Wakefern's members is required to make capital contributions
to Wakefern based on the number of stores operated by that member
(and to a limited extent the sales volume generated by those stores).
As additional stores are opened or acquired by a member, additional
capital must be contributed by it to Wakefern. On occasion, as its
business needs have required, Wakefern has increased the maximum
per-store capital contributions (currently $550,000) required of
its members. Wakefern has in the past permitted these increases
in required capital to be paid in installments over a period of
time. As a result, the Company is required to invest $2,235,000
over the next seven years.
TECHNOLOGY
The Company considers automation and computerization important
to its operations and competitive position. All stores have IBM
4690 software for the scanning check-out systems. These systems
improve pricing accuracy, enhance productivity and reduce
checkout time for customers. The hardware for these point of
sale systems was replaced in fiscal 2000. The Company utilizes
IBM RS/6000 computers and satellite communications in each store
to, among other things offer customers debit and credit card
payment options.In addition, the Company utilizes a computer
generated ordering system, which is designed to reduce inventory
levels and out of stock conditions, enhance shelf space
utilization, and reduce labor costs.
The Company's commitment to advanced scanning systems has enabled
it to participate in Price Plus, ShopRite's preferred customer
program. Customers receive electronic discounts by presenting a
scannable Price Plus card. This technology has also enabled the
Company to focus on target marketing initiatives.
The Company utilizes a direct store delivery system, consisting
of personal computers and hand held scanners, for most items not
purchased through Wakefern in order to provide equivalent cost and
retail price control over these products. In addition, certain
in-store department records are computerized, including the records
of all pharmacy departments. In all stores, meat, seafood and
delicatessen prices are maintained on computer for automatic
weighing and pricing. Furthermore, all stores have computerized
time and attendance systems and most also have computerized energy
management systems. The Company seeks to design its stores to
use energy efficiently, including recycling waste heat generated
by refrigeration equipment for heating and other purposes. The
Company has installed computer based training systems in all
stores.
Wakefern and the Company have responded to our customers
increased use of the internet by creating shoprite.com to
provide weekly advertising and other shopping information. In
addition, an on-line shopping and pick-up service is being
tested by Wakefern at this time.
COMPETITION
The supermarket business is highly competitive. Industry profit
margins are narrow, consequently earnings are dependent on high
sales volume and operating efficiency. The Company is in direct
competition with national, regional and local chains as well as
independent supermarkets, warehouse clubs, supercenters, drug
stores, discount department stores, fast food chains and
convenience stores. The Company competes by using low pricing,
courteous, quick, service to the customer, and a broad range of
consistently available quality products including the ShopRite
private label. The ShopRite Price Plus card and the co-branded
ShopRite credit card also create significant customer loyalty.
The Company believes its regional focus and the continuity of
its management by the Sumas family permit it to operate with
greater flexibility in tailoring the products offered in each
store to the demographics of the communities they serve as
compared to national and larger regional chains. The Company's
principal competitors are Pathmark, A&P, Edwards, Foodtown,
Acme, King's and Grand Union. Many of the Company's
competitors have financial resources substantially greater
than those of the Company.
Recently, one of our principal competitors completed a
restructuring which substantially reduced its previously high
debt levels. In addition, another competitor is in the process
of changing the name and format of all of its stores. The
impact of these recent developments on our already highly
competitive marketplace is unknown at this time.
LABOR
As of October 1, 2000, the Company employed approximately 3,650
persons of whom approximately 2,350 worked part-time.
Approximately 89% of the Company's employees are covered by
collective bargaining agreements. The Company was affected by a
labor dispute with its largest union in fiscal 1993. Contracts
with the Company's six unions expire between April 2001 and
April 2003. Most of the Company's competitors in New Jersey are
similarly unionized.
REGULATORY ENVIRONMENT
While the Company must secure a variety of health and food
distribution permits for the conduct of its business, it does
not believe that such regulation is material to its operations.
The Company's pharmacy departments are subject to state regulation
and licensed pharmacists must be on duty at all times. The
Company's liquor operation is also subject to regulation by state
and municipal administrative authorities. The Company does not
presently anticipate expanding its liquor operations. Compliance
with statutes regulating the discharge of materials into the
environment is not expected to have a material effect on capital
expenditures, earnings and competitive position in fiscal 2001
and 2002.
ITEM 2. PROPERTIES
The Company owns the sites of five of its supermarkets
(containing 330,000 square feet of total space), all of which
are freestanding stores, except the Egg Harbor store, which
is part of a shopping center. The remaining 18 supermarkets
(containing 852,000 square feet of total space) are leased,
with initial lease terms generally ranging from 20 to 30 years,
usually with renewal options. Ten of these leased stores are
located in strip shopping centers and the remaining eight are
freestanding stores. Except with respect to one lease between
the Company and certain related parties, none of the Company's
leases expire before 2002. One lease does expire in June 2002
and does not contain a renewal option. The annual rent,
including capitalized leases, for all of the Company's leased
facilities for the year ended July 29, 2000 was approximately
$7,352,000. The Company is a limited partner in two
partnerships, one of which owns a shopping center in which
one of the Company's leased supermarkets is located.
The Company also is a general partner in a general partnership
that is a lessor of one of the Company's freestanding supermarkets.
ITEM 3. LEGAL PROCEEDINGS
No material legal proceedings.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters submitted to shareholders in the fourth quarter.
ITEM X. EXECUTIVE OFFICERS OF THE REGISTRANT
In addition to the information regarding directors incorporated
by reference to the Company's definitive Proxy Statement in
Part III, Item 10, the following is provided with respect to
executive officers who are not directors:
NAME AGE POSITION WITH THE COMPANY
Carol Lawton 57 Vice President and Assistant
Secretary since 1983;
responsible for administration
of headquarters staff.
Kevin Begley 42 Chief Financial Officer since 1987.
Mr. Begley is a Certified
Public Accountant.
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED
SECURITY HOLDER MATTERS
The information required by this Item is incorporated by
reference from Information appearing on Page 20 in the
Company's Annual Report to Shareholders for the fiscal year
ended July 29, 2000.
ITEM 6. SELECTED FINANCIAL DATA
The information required by this Item is incorporated by
reference from Information appearing on Page 3 in the Company's
Annual Report to Shareholders for the fiscal year ended
July 29, 2000.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The information required by this Item is incorporated by
reference from Information appearing on Page 4 through 6
in the Company's Annual Report to Shareholders for the
fiscal year ended July 29, 2000.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK
Not applicable.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The information required by this Item is incorporated by
reference from Information appearing on Page 3 and Page 7
to 20 in the Company's Annual Report to Shareholders for
the fiscal year ended July 29, 2000.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
The information required by this Item 10 is incorporated by
reference from the Company's definitive Proxy Statement to be
filed on or before November 8, 2000, in connection with its
Annual Meeting scheduled to be held on December 8, 2000.
ITEM 11. EXECUTIVE COMPENSATION
The information required by this Item 11 is incorporated by
reference from the Company's definitive Proxy Statement to be
filed on or before November 8, 2000, in connection with its
Annual Meeting scheduled to be held on December 8, 2000.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
AND MANAGEMENT
The information required by this Item 12 is incorporated by
reference from the Company's definitive Proxy Statement to be
filed on or before November 8, 2000, in connection with its
annual meeting scheduled to be held on December 8, 2000.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
The information required by this Item 13 is incorporated by
reference from the Company's definitive Proxy Statement to be
filed on or before November 8, 2000, in connection with its
annual meeting scheduled to be held on December 8, 2000.
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENTS SCHEDULES AND REPORTS
ON FORM 8-K
(a) 1 Financial Statements:
Consolidated Balance Sheets - July 29, 2000
and July 31, 1999;
Consolidated Statements of Operations -
years ended July 29, 2000, July 31, 1999
and July 25, 1998;
Consolidated Statements of Shareholders' Equity -
years ended July 29, 2000; July 31, 1999
and July 25, 1998;
Consolidated Statements of Cash Flows -
years ended July 29, 2000; July 31, 1999
and July 25, 1998.
Notes to consolidated financial statements.
The financial statements above and Independent
Auditors' Report have been incorporated by reference from the
Company's Annual Report to Shareholders for the fiscal year
ended July 29, 2000.
2. Financial Statement Schedules:
All schedules are omitted because they are not
applicable, or not required, or because the required
information is included in the consolidated financial
statements or notes thereto.
3. Exhibits
EXHIBIT INDEX
Exhibit No. 3 - Certificate of Incorporation and By-Laws*
Exhibit No. 4 - Instruments defining the rights of
security holders;
4.4 Loan Agreement dated May 30, 1997*
4.5 Note Purchase Agreement dated
September 16, 1999*
4.6 Loan Agreement dated September 16, 1999*
Exhibit No. 10 - Material Contracts:
10.1 - Wakefern By-Laws*
10.2 - Stockholders Agreement dated
February 20, 1992 between
between the Company and
Wakefern Food Corp.*
10.3 - Voting Agreement dated March 4, 1987*
10.4 - 1987 Incentive and Non-Statutory Stock
Option Plan*
10.5 - 1997 Incentive and Non-Statutory Stock
Option Plan*
Exhibit No. 13 - Annual Report to Security Holders
Exhibit No. 21 - Subsidiaries of Registrant
Exhibit No. 23 - Consent of KPMG LLP
Exhibit No. 99 - Press Release dated October 3, 2000
* The following exhibits are incorporated by reference from
the following previous filings:
Form 10-K for 1999: 4.5, 4.6
Form 10-K for 1997: 4.4, 10.5
Form 10-K for 1993: 3, 10.1, 10.2, 10.3
and 10.4
(b) No reports on Form 8-K were filed during the fourth quarter
of fiscal 2000.
Exhibit 23
Independent Auditors' Consent
The Board of Directors
Village Super Market, Inc.:
We consent to incorporation by reference in the Registration
Statement (No. 2-86320) on Form S-8 of Village Super Market, Inc.
of our report dated October 3, 2000, relating to the consolidated
balance sheets of Village Super Market, Inc. and subsidiaries as
of July 29, 2000 and July 31, 1999 and the related consolidated
statements of operations, shareholders' equity, and cash flows
for each of the years in the three-year period ended July 29, 2000,
which report is incorporated by reference in the July 29, 2000
annual report on Form 10-K of Village Super Market, Inc.
KPMG LLP
Short Hills, New Jersey
October 25, 2000
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned thereunto
duly authorized.
Village Super Market, Inc.
By: /s/ Kevin Begley By: /s/ Perry Sumas
Kevin Begley Perry Sumas
Chief Financial & Chief Executive Officer
Principal Accounting Officer
Date: October 26, 2000
Pursuant to the requirements of the Securities Exchange Act
of 1934, this report has been signed below by the following
persons on behalf of the Registrant and in the capacities and on dates
indicated:
Village Super Market, Inc.
/s/ Perry Sumas /s/ James Sumas
Perry Sumas, Director James Sumas, Director
October 26, 2000 October 26, 2000
/s/ Robert Sumas /s/ William Sumas
Robert Sumas, Director William Sumas, Director
October 26, 2000 October 26, 2000
/s/ John P. Sumas /s/ John J. McDermott
John P. Sumas, Director John J. McDermott, Director
October 26, 2000 October 26, 2000
/s/ George Andresakes /s/ Norman Crystal
George Andresakes, Director Norman Crystal, Director
October 26, 2000 October 26, 2000
Exhibit 21
SUBSIDIARIES OF REGISTRANT
The Company has two wholly-owned subsidiaries at July 29,
2000. Village Super Market of PA, Inc., which is organized
under the laws of Pennsylvania and Village Super Market of NJ,
L.P., which is organized under the laws of New Jersey. In
addition, the Company had a wholly-owned subsidiary, Village Liquor,
Inc. until fiscal 1998 when it was merged into Village Super Market,
Inc. This corporation was organized under the laws of the State of
New Jersey.
The financial statements of all subsidiaries are included in the
Company's consolidated financial statements.
Exhibit 99
VILLAGE SUPER MARKET, INC.
REPORTS RESULTS FOR THE FOURTH QUARTER & YEAR ENDED
JULY 29, 2000
Contact: Kevin Begley, C.F.O.
(973) 467-2200, Ext. 220
Springfield, New Jersey - October 3, 2000 - Village Super Market,
Inc. reported sales and net income for the fourth quarter and
year ended July 29, 2000, Perry Sumas, President announced today.
Net income for the fiscal year was $8,426,000 ($2.76 per diluted
share), an increase of 78% from the prior year. Excluding a special
charge in the prior year, net income increased 35%. Sales for the
year were $803,360,000, an increase of 4.6%. Same store sales
increased 2.9% in the fiscal year. In addition, sales increased due
to a full year's operation of the Vineland store acquired in May 1999.
Partially offsetting this sales increase was one less sales week in
fiscal 2000. The substantial increase in net income for the year
was primarily attributable to the same store sales increase and
improved gross margin percentages.
Net income was $2,788,000 ($.91 per diluted share) in the fourth
quarter of fiscal 2000, an increase of 95% from the prior year.
Excluding a pre-tax charge of $2,600,000 ($.52 per share) in the
prior year, net income declined 7%. Sales in the fourth quarter were
$203,611,000, a decrease of 5.5% from the prior year. Sales decreased
due to fiscal 2000's fourth quarter containing 13 weeks compared with
14 weeks in fiscal 1999. Same store sales increased .6% in the
fourth quarter of fiscal 2000.
The slight decrease in net income in the fourth quarter compared to
the prior year, excluding the special charge, was due to the current
year containing one less sales week. This negative impact was
partially offset by improved gross margin percentages and lower
promotional costs compared to the prior year.
Village Super Market operates a chain of 23 supermarkets under the
ShopRite name in New Jersey and eastern Pennsylvania. The following
table summarizes the results for the quarter and year ended
July 29, 2000:
July 29, 2000 July 31, 1999
Quarter Ended
Sales $203,611,000 $215,352,000
Net Income $ 2,788,000 $ 1,432,000
Net Income Per Share - Basic $ .93 $ .48
Net Income Per Share - Diluted $ .91 $ .47
Year Ended
Sales $803,360,000 $768,139,000
Net Income $ 8,426,000 $ 4,722,000
Net Income Per Share - Basic $ 2.81 $ 1.59
Net Income Per Share - Diluted $ 2.76 $ 1.55
FORWARD-LOOKING STATEMENTS:
This Press Release contains "forward-looking statements" within
the meaning of federal securities law. The Company cautions the
reader that there is no assurance that actual results or business
conditions will not differ materially from future results, whether
expressed, suggested or implied by such forward-looking statements.
Such potential risks and uncertainties include, without limitation,
local economic conditions, competitive pressures from the Company's
operating environment, the ability of the Company to maintain and
improve its sales and margins, the ability to attract and retain
qualified associates, the availability of new store locations, the
liquidity of the Company on a cash flow basis, the success of
operating initiatives, and other risk factors detailed in the
Company's filings with the SEC.