UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
Quarterly Report Under Section
13 or 15(d)
of the Securities Exchange Act of 1934
(Mark One)
[X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 28, 2003 | |
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 |
WEIS MARKETS,
INC.
(Exact name of registrant as specified in its
charter)
PENNSYLVANIA (State or other jurisdiction of incorporation or organization) |
24-0755415 (I.R.S. Employer Identification No.) |
|
1000 S. Second
Street P. O. Box 471 Sunbury, Pennsylvania (Address of principal executive offices) |
17801-0471 (Zip Code) |
Registrant's telephone number, including area code: (570) 286-4571 Registrant's web address: www.weismarkets.com
Not
Applicable
(Former name, former address and former fiscal year, if changed
since last report.)
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 the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
Common Stock, No Par
Value
27,193,737 shares
(Outstanding
at end of period)
WEIS MARKETS,
INC.
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION |
WEIS MARKETS, INC. |
CONSOLIDATED BALANCE SHEETS |
(unaudited) |
(dollars in thousands) |
June 28, 2003 | December 28, 2002 | |||||
Assets | ||||||
Current: | ||||||
Cash | $ | 4,019 | $ | 3,929 | ||
Marketable securities | 76,014 | 43,510 | ||||
Accounts receivable, net | 30,053 | 30,188 | ||||
Inventories | 167,274 | 182,832 | ||||
Prepaid expenses | 4,827 | 3,980 | ||||
Deferred income taxes | 690 | --- | ||||
Total current assets | 282,877 | 264,439 | ||||
Property and equipment, net | 419,745 | 428,153 | ||||
Intangible and other assets | 23,628 | 24,107 | ||||
$ | 726,250 | $ | 716,699 | |||
Liabilities | ||||||
Current: | ||||||
Accounts payable | $ | 85,268 | $ | 101,917 | ||
Accrued expenses | 21,939 | 15,704 | ||||
Accrued self-insurance | 17,246 | 16,117 | ||||
Payable to employee benefit plans | 8,867 | 8,950 | ||||
Income taxes payable | 10,546 | 6,112 | ||||
Deferred income taxes | --- | 702 | ||||
Total current liabilities | 143,866 | 149,502 | ||||
Deferred income taxes | 14,902 | 14,765 | ||||
Shareholders' Equity | ||||||
Common stock, no par value, 100,800,000 shares authorized, | ||||||
32,986,537 and 32,986,337 shares issued, respectively | 7,887 | 7,882 | ||||
Retained earnings | 693,171 | 678,294 | ||||
Accumulated other comprehensive income | ||||||
(Net of deferred taxes of $3,059 in 2003 and $2,939 in 2002) | 4,313 | 4,145 | ||||
705,371 | 690,321 | |||||
Treasury stock at cost, 5,792,800 shares | (137,889 | ) | (137,889 | ) | ||
Total shareholders' equity | 567,482 | 552,432 | ||||
$ | 726,250 | $ | 716,699 | |||
See accompanying notes to consolidated financial statements. |
Page 1 of 13 (Form 10-Q)
WEIS MARKETS, INC. |
CONSOLIDATED STATEMENTS OF INCOME |
(unaudited) |
(dollars in thousands except per share amounts) |
Three Months Ended | Six Months Ended | |||||||||
June 28, 2003 | June 29, 2002 | June 28, 2003 | June 29, 2002 | |||||||
Net sales | $ | 507,981 | $ | 491,865 | $ | 1,017,052 | $ | 996,288 | ||
Cost of sales, including warehousing and distribution expenses | 373,535 | 360,147 | 749,477 | 732,887 | ||||||
Gross profit on sales | 134,446 | 131,718 | 267,575 | 263,401 | ||||||
Operating, general and administrative expenses | 117,302 | 113,357 | 228,982 | 224,508 | ||||||
Income from operations | 17,144 | 18,361 | 38,593 | 38,893 | ||||||
Investment income | 387 | 276 | 616 | 449 | ||||||
Other income | 4,816 | 2,842 | 8,670 | 6,047 | ||||||
Interest expense | (94 | ) | (87 | ) | (189 | ) | (264 | ) | ||
Income before provision for income taxes | 22,253 | 21,392 | 47,690 | 45,125 | ||||||
Provision for income taxes | 8,474 | 7,839 | 18,128 | 16,796 | ||||||
Net income | $ | 13,779 | $ | 13,553 | $ | 29,562 | $ | 28,329 | ||
Weighted-average shares outstanding | 27,193,546 | 27,204,227 | 27,193,541 | 27,203,893 | ||||||
Cash dividends per share | $ | 0.27 | $ | 0.27 | $ | 0.54 | $ | 0.54 | ||
Basic and diluted earnings per share | $ | 0.51 | $ | 0.50 | $ | 1.09 | $ | 1.04 | ||
See accompanying notes to consolidated financial statements. |
WEIS MARKETS, INC. |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(unaudited) |
(dollars in thousands) |
Six Months Ended | |||||
June 28, 2003 | June 29, 2002 | ||||
Cash flows from operating activities: | |||||
Net income | $ | 29,562 | $ | 28,329 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation | 19,679 | 20,439 | |||
Amortization | 3,374 | 2,667 | |||
(Gain) loss on sale of fixed assets | (991 | ) | 249 | ||
Changes in operating assets and liabilities: | |||||
Inventories | 15,558 | 8,324 | |||
Accounts receivable and prepaid expenses | (712 | ) | 3,699 | ||
Income taxes recoverable | --- | (1,180 | ) | ||
Accounts payable and other liabilities | (9,368 | ) | (8,872 | ) | |
Income taxes payable | 4,434 | --- | |||
Deferred income taxes | (1,375 | ) | (167 | ) | |
Net cash provided by operating activities | 60,161 | 53,488 | |||
Cash flows from investing activities: | |||||
Purchase of property and equipment | (15,924 | ) | (16,304 | ) | |
Proceeds from the sale of property and equipment | 2,621 | 3,079 | |||
Purchase of marketable securities | (33,213 | ) | (9,999 | ) | |
Proceeds from maturities of marketable securities | 997 | 15 | |||
(Increase) decrease in intangible and other assets | 128 | (300 | ) | ||
Net cash used in investing activities | (45,391 | ) | (23,509 | ) | |
Cash flows from financing activities: | |||||
Payments of long-term debt, net | --- | (15,000 | ) | ||
Proceeds from issuance of common stock | 5 | 26 | |||
Dividends paid | (14,685 | ) | (14,690 | ) | |
Purchase of treasury stock | --- | (1 | ) | ||
Net cash used in financing activities | (14,680 | ) | (29,665 | ) | |
Net increase in cash | 90 | 314 | |||
Cash at beginning of period | 3,929 | 3,255 | |||
Cash at end of period | $ | 4,019 | $ | 3,569 |
See accompanying notes to consolidated financial statements. |
Page 3 of 13 (Form 10-Q)
WEIS MARKETS,
INC.
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
(unaudited)
(1) Significant Accounting
Policies
Basis of Presentation: The accompanying unaudited consolidated
financial statements have been prepared in accordance with
accounting principles generally accepted in the United States
for interim financial information and with the instructions for
Form 10-Q and Article 10 of Regulation S-X. In the opinion of
management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have
been included. The operating results for the periods presented
are not necessarily indicative of the results to be expected
for the full year. For further information, refer to the
consolidated financial statements and footnotes thereto
included in the company's latest annual report on Form
10-K.
Impact of Recently Issued Accounting Standards: As of December 28, 2002, the company adopted Emerging Issues Task Force Issue No. 02-16, "Accounting by a Customer (Including a Reseller) for Certain Consideration Received from a Vendor" (EITF Issue). This EITF Issue establishes new rules for accounting for certain cash considerations received by a reseller from a vendor; however, the adoption of this EITF Issue does not have an impact on the company's financial statement classifications, net income or shareholders' equity.
On December 31, 2002, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 148, "Accounting for Stock-Based Compensation - Transition and Disclosure" (Statement No. 148). Statement 148 amends Statement of Financial Accounting Standards Statement No. 123, "Accounting for Stock-Based Compensation" (Statement No. 123), to provide alternative methods of transition to Statement No. 123's fair value method of accounting for stock-based employee compensation. Statement No. 148 also amends the disclosure provisions of Statement No. 123 and Accounting Principles Board's Opinion No. 28, "Interim Financial Reporting" (APB 28), to require disclosure in the summary of significant accounting policies of the effects of an entity's accounting policy with respect to stock-based employee compensation on reported net income and earnings per share in annual and interim financial statements. While Statement No. 148 does not amend Statement No. 123 to require companies to account for employee stock options using the fair value method, the disclosure provisions of Statement No. 148 are applicable to all companies with stock-based employee compensation, regardless of whether they account for that compensation using the fair value method of Statement No. 123 or the intrinsic value method of the Accounting Principles Board's Opinion No. 25, "Accounting for Stock Issued to Employees" (APB 25).
As of June 28, 2003, the company has a stock option plan, which is set forth in Note 7(a) of the company's 10-K under the caption "Incentive Plans," within the "Notes to Consolidated Financial Statements," which was filed for the fiscal year ended December 28, 2002 and is incorporated herein by reference. The company accounts for the plan under the recognition and measurement principles of APB 25 and related Interpretations. No stock-based employee compensation cost is reflected in net income, as all options granted under this plan have an exercise price equal to the market value of the underlying common stock on the date of grant. The effects on net income and earnings per share if the company had applied the fair value recognition provisions of Statement No. 123 are immaterial.
Page 4 of 13 (Form 10-Q)
WEIS MARKETS,
INC.
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
(unaudited)
(2) Comprehensive Income
The components of comprehensive income, net of related tax, for
the period ended June 28, 2003 and June 29, 2002 are as
follows:
Three Months Ended | Six Months Ended | ||||||||
(dollars in thousands) | 2003 | 2002 | 2003 | 2002 | |||||
Net income | $ | 13,779 | $ | 13,553 | $ | 29,562 | $ | 28,329 | |
Unrealized gains (losses) on marketable securities | 981 | (1,281 | ) | 168 | (1,606 | ) | |||
Comprehensive income | $ | 14,760 | $ | 12,272 | $ | 29,730 | $ | 26,723 |
(3) Property and Equipment
Property and equipment, as of June 28, 2003 and December 28,
2002, consisted of :
(dollars in thousands) | Useful
Life (in years) |
2003 | 2002 | |||
Land | $ | 63,736 | $ | 64,209 | ||
Buildings and improvements | 10-60 | 336,339 | 335,224 | |||
Equipment | 3-12 | 484,055 | 478,570 | |||
Leasehold improvements | 5-20 | 99,256 | 99,690 | |||
Total, at cost | 983,386 | 977,693 | ||||
Less accumulated depreciation and amortization | 563,641 | 549,540 | ||||
$ | 419,745 | $ | 428,153 |
Page 5 of 13 (Form 10-Q)
WEIS MARKETS,
INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND
ANALYSIS
OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
OPERATING RESULTS
Total sales for the second quarter ended June 28, 2003 increased 3.3% to $508.0 million compared to sales of $491.9 million in the same quarter of 2002. Sales for the first half of this year increased 2.1% to $1.02 billion compared to $996.3 million in 2002. Comparable store sales in the second quarter increased 4.1% compared to a 0.6% increase in 2002. Through the first half of the year, the company experienced a 2.7% increase in comparable store sales compared to a 2.0% increase for the same period a year ago.
When calculating the percentage change in comparable store sales, the company defines a new store as comparable the week following one full year of operation. Relocated stores and stores with expanded square footage are included in comparable sales since these units are located in existing markets. When a store is closed, sales generated from that unit in the prior year are subtracted from total company sales starting the same week of closure in the prior year and continuing from that point forward.
The sales increase in the current quarter was the result of aggressive promotional activity in key markets coupled with the timing of the Easter holiday. Sales related to Easter occurred in the second quarter this year and accounts for approximately 1.0% of the total sales increase. By contrast, the Easter sales period occurred during the first quarter in 2002. These favorable sales results were achieved in an intensely competitive market and at a time of minimal economic growth.
Gross profit of $134.4 million at 26.5% of sales, increased $2.7 million or 2.1% versus the same quarter last year. The gross profit rate decreased 0.3% compared to the same quarter a year ago. The year-to-date gross profit at 26.3% of sales increased $4.2 million or 1.6%, while the gross profit rate decreased 0.1%. In the first half of this year, the company experienced product inflation, primarily in perishable categories. At this time, management is unaware of any events or trends that may cause a material change to the overall financial operation due to this upward shift in product cost.
The second quarter operating, general and administrative expenses of $117.3 million at 23.1% of sales, increased $3.9 million or 3.5% compared to the same quarter in 2002. As a percentage of sales, operating expenses in the quarter were 0.1% higher than the 23.0% rate realized in the same period of 2002. Although the year-to-date operating, general and administrative expenses increased $4.5 million in the first half of the year, as compared to the first half of last year, these expenses as a percentage of sales remained constant at 22.5%.
The increase in operating, general and administrative expenses during the quarter and year-to-date generally coincides with the increase in sales on most expense lines. Productivity initiatives and a more stable work force helped control labor expense during the first half of this year. Snow removal, electronic fund transfer fees, and custodial and security services increased 30.0% compared to the same quarter last year and have increased 35.4% year-to-date. Advertising expenditures during the quarter rose $1.5 million primarily due to a decrease in vendor paid cooperative advertising. The company will increase its focus on improving efficiencies and controlling expenses at store and distribution levels in the second half of the year, while continuing to drive profitable, top line sales growth.
In the second quarter, the company's investment income totaled $387,000 at 0.1% of sales, an increase of $111,000 or 40.2% compared to the same period a year ago. Year-to-date, the company's investment income increased $167,000 or 37.2% to $616,000.
Other income of $4.8 million at 0.9% of sales increased $2.0 million or 69.5% compared to the same quarter last year. The company's other income is primarily generated from net rental income, coupon-handling fees, store service commissions, cardboard salvage and gain or loss on the sale of fixed assets. The company sold a closed store facility during the second quarter realizing a gain of $1.2 million. Year-to-date other income of $8.7 million at 0.9% of sales has increased $2.6 million or 43.4% versus a year ago.
Page 6 of 13 (Form 10-Q)
WEIS MARKETS,
INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
(continued)
OPERATING RESULTS
(continued)
Interest expense for 2003 is comprised of the loan commitment fee on the three-year unsecured Revolving Credit Agreement established in October of 2002 for $100 million and the amortization of expenses associated with establishing that credit facility.
The effective tax rate for the second quarter of 2003 was 38.1% compared with 36.6% in 2002. Year-to-date, the effective tax rate is 38.0% compared to 37.2% in the same period last year. The company's federal income tax returns for 1997 through 1999 are under a routine audit by the Internal Revenue Service. The Internal Revenue Service has provided the company with a number of preliminary notices of proposed adjustment. The Internal Revenue Service has not completed its audit; however, if it were to propose a deficiency, the amount may be material to the overall financial position of the company. The company believes that it has meritorious defenses and would vigorously contest these matters.
For the three-month period ending June 28, 2003, net income of $13.8 million increased 1.7% compared to the same period last year. Basic and diluted earnings per share of $.51 for the quarter increased 2.0% compared to 2002. Year-to-date earnings increased 4.4% from $28.3 million to $29.6 million. Basic and diluted earnings per share in the first half of 2003 increased 4.8% to $1.09 compared to $1.04 generated in the first half of last year.
As of June 28, 2003, Weis Markets, Inc. operated 159 retail food stores and 33 SuperPetz pet supply stores. The company currently operates supermarkets in Pennsylvania, Maryland, New Jersey, New York, Virginia and West Virginia. SuperPetz operates stores in Alabama, Georgia, Indiana, Kentucky, Maryland, Michigan, North Carolina, Ohio, Pennsylvania, South Carolina and Tennessee.
LIQUIDITY AND CAPITAL RESOURCES
During the first six months of 2003, the company generated $60.2 million in cash flows from operating activities compared to $53.5 million for the same period in 2002. Working capital increased $24.1 million or 20.9% since the beginning of the year.
Net cash used in investing activities in the first half of 2003 amounted to $45.4 million as compared to the $23.5 million used in 2002. Capital expenditures for the first half of the year totaled $15.9 million as compared to $16.3 million in 2002. Earlier this year, the company estimated that its 2003 capital expenditure plans would require an investment of $72.4 million. This plan includes construction of new superstores, the expansion and remodeling of existing units, the acquisition of sites for future expansion, new technology purchases and the continued upgrade of company processing and distribution facilities. The company anticipates funding its 2003 working capital requirements, including its capital expenditure requirements, through internally generated cash flows from operations and without external financing.
Net cash used in financing activities during the first half of 2003 was $14.7 million compared to $29.7 million in 2002. The Board of Directors' 1996 resolution authorizing the purchase of 1,000,000 shares of treasury stock has a remaining balance of 546,707 shares. Year-to-date cash dividends paid to shareholders of $14.7 million were unchanged compared to the first half of 2002. At a regular meeting of the Board of Directors held in early July, the Directors unanimously approved a 3.7% increase in the quarterly dividend from $.27 to $.28 per share. The dividend is payable on August 22, 2003 to shareholders of record on August 8, 2003.
Page 7 of 13 (Form 10-Q)
WEIS MARKETS,
INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Critical Accounting Policies
The company has chosen accounting policies that it believes are appropriate to accurately and fairly report its operating results and financial position, and the company applies those accounting policies in a consistent manner. The significant accounting policies are summarized in Note 1 to the consolidated financial statements.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires that the company makes estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. These estimates and assumptions are based on historical and other factors believed to be reasonable under the circumstances. The company evaluates these estimates and assumptions on an ongoing basis and may retain outside consultants, lawyers and actuaries to assist in its evaluation. The company believes the following accounting policies are the most critical because they involve the most significant judgments and estimates used in preparation of its consolidated financial statements.
Vendor Allowances
Vendor rebates, credits and promotional allowances that relate to the company's buying and merchandising activities, including lump-sum payments associated with long-term contracts, are recorded as a component of cost of sales as they are earned, in accordance with its underlying agreement. Off invoice and bill back allowances are used to reduce direct product costs upon the receipt of goods. Volume incentive discounts are realized as a reduction of cost of sales at the time it is deemed probable and reasonably estimable that the incentive target will be reached. Promotional allowance funds for specific vendor sponsored programs are recognized as a reduction of cost of sales as the program occurs and the funds are earned per the agreement. Cash discounts for prompt payment of invoices are realized in cost of sales as invoices are paid. Warehouse and back haul allowances provided by suppliers for distributing their product through our distribution system are recorded in cost of sales as the required performance is completed. Warehouse rack and slotting allowances are recorded in cost of sales when new items are initially setup in the company's distribution system, which is when the related expenses are incurred and performance under the agreement is complete. Swell allowances for damaged goods are realized in cost of sales as provided by the supplier, helping to offset product shrink losses also recorded in cost of sales.
Vendor allowances recorded as credits in cost of sales for the second quarter totaled $10.6 million in 2003 and $11.4 million in 2002. Year-to-date vendor allowances for 2003 and 2002 were $24.1 million and $23.8 million, respectively. Vendor paid cooperative advertising credits for the second quarter totaled $3.3 million in 2003 and $4.6 million in 2002. These credits were netted against advertising expenses for the second quarter of $6.5 million in 2003 and $6.3 million in 2002, within operating, general and administrative expenses. Year-to-date cooperative advertising credits for 2003 and 2002 were $8.9 million and $8.4 million, respectively, while year-to-date advertising expenses were $11.9 million for 2003 and $11.6 million for 2002. At the end of second quarter 2003, the company had accounts receivable due from vendors of $3.4 million for earned advertising credits and $5.6 million for earned promotional discounts. The company had $2.4 million in unearned revenue included in accrued liabilities for unearned vendor programs under long-term contracts for display and shelf space allocation. The company does not use estimates to account for receivables due under these vendor arrangements.
Page 8 of 13 (Form 10-Q)
WEIS MARKETS,
INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
(continued)
Critical Accounting Policies
(continued)
Accrued Store Closing Costs
The company provides for closed store liabilities relating to the estimated post-closing lease liabilities and related other exit costs associated with the store closing commitments. The closed store liabilities are usually paid over the lease terms associated with the closed stores having remaining terms ranging from one to eight years. At June 28, 2003, closed store lease liabilities totaled $2.7 million. The company estimates the lease liabilities, net of sublease income, using the undiscounted rent payments of closed stores. Other exit costs include estimated real estate taxes, common area maintenance, insurance and utility costs to be incurred after the store closes over the remaining lease term. Store closings are generally completed within one year after the decision to close. Adjustments to closed store liabilities and other exit costs primarily relate to changes in subtenants and actual exit costs differing from original estimates. Adjustments are made for changes in estimates in the period in which the change becomes known. Any excess store closing liability remaining upon settlement of the obligation is reversed to income in the period that such settlement is determined. Inventory write-downs, if any, in connection with store closings, are classified in cost of sales. Costs to transfer inventory and equipment from closed stores are expensed as incurred. Store closing liabilities are reviewed quarterly to ensure that any accrued amount that is no longer needed for its originally intended purpose is reversed to income in the proper period.
Self-Insurance
The company is self-insured for a majority of its workers' compensation, general liability, vehicle accident and associate medical benefit claims. The self-insurance liability for most of the workers' compensation is determined based on historical data and an estimate of claims incurred but not reported. The other self-insurance liabilities are determined actuarially, based on claims filed and an estimate of claims incurred but not yet reported. The company is liable for associate health claims up to a lifetime aggregate of $1,000,000 per member and for workers' compensation claims up to $1,000,000 per claim. Property and casualty insurance coverage is maintained with outside carriers at deductible or retention levels ranging from $100,000 to $500,000. Significant assumptions used in the development of the actuarial estimates include reliance on our historical claims data including average monthly claims and average lag time between incurrence and payment.
FORWARD-LOOKING STATEMENTS
In
addition to historical information, this 10-Q Report may
contain forward-looking statements. Any forward-looking
statements contained herein are subject to certain risks and
uncertainties that could cause actual results to differ
materially from those projected. For example, risks and
uncertainties can arise with changes in: general economic
conditions, including their impact on capital expenditures;
business conditions in the retail industry; the regulatory
environment; rapidly changing technology and competitive
factors, including increased competition with regional and
national retailers; and price pressures. Readers are cautioned
not to place undue reliance on forward-looking statements,
which reflect management's analysis only as of the date hereof.
The company undertakes no obligation to publicly revise or
update these forward-looking statements to reflect events or
circumstances that arise after the date hereof. Readers should
carefully review the risk factors described in other documents
the company files periodically with the Securities and Exchange
Commission.
Page 9 of 13 (Form 10-Q)
WEIS MARKETS,
INC.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Quantitative Disclosure - There have been no material changes in the company's market risk during the six months ended June 28, 2003. Quantitative information is set forth in Item 7a on the company's Form 10-K under the caption "Quantitative Disclosures About Market Risk," which was filed for the fiscal year ended December 28, 2002 and is incorporated herein by reference.
Qualitative Disclosure - This information is set forth in Item 7a of the company's 10-K under the caption "Liquidity and Capital Resources," within "Management's Discussion and Analysis of Financial Condition and Results of Operations," which was filed for the fiscal year ended December 28, 2002 and is incorporated herein by reference.
ITEM 4. CONTROLS AND PROCEDURES
The Chief Executive Officer and the Chief Financial Officer of the company (its principal executive officer and principal financial officer, respectively) have concluded, based on their evaluation as of a date within 90 days prior to the date of the filing of this Report, that the company's disclosure controls and procedures are effective to ensure that information required to be disclosed by the company in the reports filed or submitted by it under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and include controls and procedures designed to ensure that information required to be disclosed by the company in such reports is accumulated and communicated to the company's management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
There were no significant changes in the company's internal controls or in other factors that could significantly affect these controls subsequent to the date of such evaluation.
Page 10 of 13 (Form 10-Q)
WEIS MARKETS, INC.
Item 6. Exhibits and Reports
on Form 8-K
(b) Reports on Form 8-K - One Form 8-K, Item 9, was filed on April 22, 2003, to announce the first quarter results of the company.
Pursuant to the requirements 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.
WEIS MARKETS, INC. | |||
(Registrant) | |||
Date 08/07/2003 | /S/Norman S. Rich | ||
Norman S. Rich | |||
President / Chief Executive Officer | |||
Date 08/07/2003 | /S/William R. Mills | ||
William R. Mills | |||
Senior Vice President and Treasurer / | |||
Chief Financial Officer / Chief Accounting Officer | |||
Page 11 of 13 (Form 10-Q)
WEIS MARKETS,
INC.
I, Norman S. Rich, President/CEO of Weis
Markets Inc., certify that:
1. I have reviewed this quarterly
report on Form 10-Q of Weis Markets Inc.;
2. Based on my knowledge, this
quarterly report does not contain any untrue statement of a
material fact or omit
to state a material fact
necessary to make the statements made, in light of the
circumstances under which such
statements were made, not
misleading with respect to the periods covered by this
quarterly report;
3. Based on my knowledge, the
financial statements, and other financial information included
in this quarterly
report, fairly present in all
material respects the financial condition, results of
operations and cash flows of
the registrant as of, and for,
the periods presented in this quarterly report;
4. The registrant's other
certifying officers and I are responsible for establishing and
maintaining disclosure
controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the
registrant and we have:
a) designed
such disclosure controls and procedures to ensure that material
information relating to the
registrant,
including its consolidated subsidiaries, is made known to us by
others within those entities,
particularly
during the period in which this quarterly report is being
prepared;
b) evaluated
the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90
days
prior to the filing date of this quarterly report (the
"Evaluation Date"); and
c) presented in this quarterly report our
conclusions about the effectiveness of the disclosure controls
and
procedures
based on our evaluation as of the Evaluation
Date;
5. The registrant's other
certifying officers and I have disclosed, based on our most
recent evaluation, to the
registrant's auditors and
the audit committee of registrant's board of directors (or
persons performing the
equivalent
function):
a) all
significant deficiencies in the design or operation of internal
controls which could adversely affect
the
registrant's ability to record, process, summarize and report
financial data and have identified for the
registrant's
auditors any material weaknesses in internal controls;
and
b) any
fraud, whether or not material, that involves management or
other employees who have a significant
role
in the registrant's internal controls; and
6. The registrant's other
certifying officers and I have indicated in this quarterly
report whether or not there were
significant changes in internal
controls or in other factors that could significantly affect
internal controls
subsequent to the date of our
most recent evaluation, including any corrective actions with
regard to significant
deficiencies and material
weaknesses.
Date: August 7,
2003
/S/ Norman S. Rich
Norman
S. Rich
President/CEO
Page 12 of 13 (Form 10-Q)
WEIS MARKETS,
INC.
I, William R. Mills, Senior Vice President
and Treasurer/CFO of Weis Markets Inc., certify
that:
1. I have reviewed this quarterly
report on Form 10-Q of Weis Markets Inc.;
2. Based on my knowledge, this
quarterly report does not contain any untrue statement of a
material fact or omit
to state a material fact
necessary to make the statements made, in light of the
circumstances under which such
statements were made, not
misleading with respect to the periods covered by this
quarterly report;
3. Based on my knowledge, the
financial statements, and other financial information included
in this quarterly
report, fairly present in all
material respects the financial condition, results of
operations and cash flows of
the registrant as of, and for,
the periods presented in this quarterly report;
4. The registrant's other
certifying officers and I are responsible for establishing and
maintaining disclosure
controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the
registrant and we have:
a) designed
such disclosure controls and procedures to ensure that material
information relating to the
registrant,
including its consolidated subsidiaries, is made known to us by
others within those entities,
particularly
during the period in which this quarterly report is being
prepared;
b) evaluated
the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90
days
prior to the filing date of this quarterly report (the
"Evaluation Date"); and
c) presented in this quarterly report our
conclusions about the effectiveness of the disclosure controls
and
procedures
based on our evaluation as of the Evaluation
Date;
5. The registrant's other
certifying officers and I have disclosed, based on our most
recent evaluation, to the
registrant's auditors and
the audit committee of registrant's board of directors (or
persons performing the
equivalent
function):
a) all
significant deficiencies in the design or operation of internal
controls which could adversely affect
the
registrant's ability to record, process, summarize and report
financial data and have identified for the
registrant's
auditors any material weaknesses in internal controls;
and
b) any
fraud, whether or not material, that involves management or
other employees who have a significant
role
in the registrant's internal controls; and
6. The registrant's other
certifying officers and I have indicated in this quarterly
report whether or not there were
significant changes in internal
controls or in other factors that could significantly affect
internal controls
subsequent to the date of our
most recent evaluation, including any corrective actions with
regard to significant
deficiencies and material
weaknesses.
Date: August 7,
2003
/S/ William R. Mills
William
R. Mills
Senior
Vice President
and
Treasurer/CFO
Page 13 of 13 (Form 10-Q)
WEIS MARKETS, INC.
CERTIFICATION PURSUANT
TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the 10-Q Report of Weis Markets, Inc. (the "company") on Form 10-Q for the quarter ending June 28, 2003, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Norman S. Rich, President / Chief Executive Officer of the company, certify, pursuant to and for purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the company.
/S/ Norman S. Rich
Norman S. Rich
President / CEO
08/07/2003
WEIS MARKETS, INC.
CERTIFICATION PURSUANT
TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the 10-Q Report of Weis Markets, Inc. (the "company") on Form 10-Q for the quarter ending June 28, 2003, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, William R. Mills, Senior Vice President and Treasurer / Chief Financial Officer of the company, certify, pursuant to and for purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the company.
/S/ William R. Mills
William R. Mills
Senior Vice President and Treasurer / CFO
08/07/2003