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 SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 25, 2004 | |
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
27,077,227 shares
(Outstanding
at end of period)
WEIS MARKETS,
INC.
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION |
WEIS MARKETS, INC. |
CONSOLIDATED BALANCE SHEETS |
(dollars in thousands) |
September 25, 2004 | December 27, 2003 | |||||
(unaudited) | ||||||
Assets | ||||||
Current: | ||||||
Cash | $ | 3,701 | $ | 3,452 | ||
Marketable securities | 87,299 | 87,095 | ||||
Accounts receivable, net | 31,548 | 34,111 | ||||
Inventories | 153,591 | 173,552 | ||||
Prepaid expenses | 4,883 | 3,987 | ||||
Income taxes recoverable | 1,779 | --- | ||||
Deferred income taxes | 3,960 | 4,793 | ||||
Total current assets | 286,761 | 306,990 | ||||
Property and equipment, net | 422,348 | 414,172 | ||||
Goodwill, intangible and other assets | 22,422 | 23,153 | ||||
$ | 731,531 | $ | 744,315 | |||
Liabilities | ||||||
Current: | ||||||
Accounts payable | $ | 88,568 | $ | 95,238 | ||
Accrued expenses | 21,268 | 20,156 | ||||
Accrued self-insurance | 19,716 | 17,710 | ||||
Payable to employee benefit plans | 10,133 | 9,626 | ||||
Income taxes payable | --- | 1,955 | ||||
Total current liabilities | 139,685 | 144,685 | ||||
Deferred income taxes | 26,250 | 24,182 | ||||
Shareholders' Equity | ||||||
Common stock, no par value, 100,800,000 shares authorized, | ||||||
32,993,657 and 32,989,507 shares issued, respectively | 8,089 | 7,971 | ||||
Retained earnings | 695,194 | 702,961 | ||||
Accumulated other comprehensive income | ||||||
(Net of deferred taxes of $3,173 in 2004 and $3,140 in 2003) | 4,475 | 4,428 | ||||
707,758 | 715,360 | |||||
Treasury stock at cost, 5,916,430 and 5,849,589 shares, respectively | (142,162 | ) | (139,912 | ) | ||
Total shareholders' equity | 565,596 | 575,448 | ||||
$ | 731,531 | $ | 744,315 | |||
See accompanying notes to consolidated financial statements. |
Page 1 of 9 (Form 10-Q)
WEIS MARKETS, INC. |
CONSOLIDATED STATEMENTS OF INCOME |
(unaudited) |
(dollars in thousands except share and per share amounts) |
Three Months Ended | Nine Months Ended | |||||||||
Sept. 25, 2004 | Sept. 27, 2003 | Sept. 25, 2004 | Sept. 27, 2003 | |||||||
Net sales | $ | 518,639 | $ | 504,690 | $ | 1,560,682 | $ | 1,521,742 | ||
Cost of sales, including warehousing and distribution expenses | 381,942 | 371,299 | 1,150,838 | 1,120,776 | ||||||
Gross profit on sales | 136,697 | 133,391 | 409,844 | 400,966 | ||||||
Operating, general and administrative expenses | 121,358 | 120,180 | 355,479 | 349,162 | ||||||
Income from operations | 15,339 | 13,211 | 54,365 | 51,804 | ||||||
Investment income | 435 | 303 | 1,201 | 919 | ||||||
Other income, net | 3,804 | 4,327 | 11,690 | 12,808 | ||||||
Income before provision for income taxes | 19,578 | 17,841 | 67,256 | 65,531 | ||||||
Provision for income taxes | 7,364 | 6,977 | 25,163 | 25,105 | ||||||
Net income | $ | 12,214 | $ | 10,864 | $ | 42,093 | $ | 40,426 | ||
Weighted-average shares outstanding | 27,080,396 | 27,193,094 | 27,113,301 | 27,193,392 | ||||||
Cash dividends per share | $ | 1.28 | $ | 0.28 | $ | 1.84 | $ | 0.82 | ||
Basic and diluted earnings per share | $ | 0.45 | $ | 0.40 | $ | 1.55 | $ | 1.49 | ||
See accompanying notes to consolidated financial statements. |
WEIS MARKETS, INC. |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(unaudited) |
(dollars in thousands) |
Nine Months Ended | |||||
Sept. 25, 2004 | Sept. 27, 2003 | ||||
Cash flows from operating activities: | |||||
Net income | $ | 42,093 | $ | 40,426 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation | 29,666 | 29,791 | |||
Amortization | 4,295 | 4,880 | |||
Gain on sale of fixed assets | (156 | ) | (92 | ) | |
Changes in operating assets and liabilities: | |||||
Inventories | 19,961 | 15,623 | |||
Accounts receivable and prepaid expenses | 1,667 | (3,057 | ) | ||
Income taxes recoverable | (1,779 | ) | --- | ||
Accounts payable and other liabilities | (3,045 | ) | 4,178 | ||
Income taxes payable | (1,955 | ) | 643 | ||
Deferred income taxes | 2,868 | 4,421 | |||
Net cash provided by operating activities | 93,615 | 96,813 | |||
Cash flows from investing activities: | |||||
Purchase of property and equipment | (50,336 | ) | (24,273 | ) | |
Proceeds from the sale of property and equipment | 9,086 | 4,173 | |||
Purchase of marketable securities | (47,626 | ) | (55,788 | ) | |
Proceeds from maturities of marketable securities | 47,502 | 997 | |||
Net cash used in investing activities | (41,374 | ) | (74,891 | ) | |
Cash flows from financing activities: | |||||
Proceeds from issuance of common stock | 118 | 17 | |||
Dividends paid | (49,860 | ) | (22,298 | ) | |
Purchase of treasury stock | (2,250 | ) | (45 | ) | |
Net cash used in financing activities | (51,992 | ) | (22,326 | ) | |
Net increase (decrease) in cash | 249 | (404 | ) | ||
Cash at beginning of period | 3,452 | 3,929 | |||
Cash at end of period | $ | 3,701 | $ | 3,525 | |
See accompanying notes to consolidated financial statements. |
Page 3 of 9 (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.
(2) Comprehensive Income
The components of comprehensive income, net of related tax,
for the period ended September 25, 2004 and September 27, 2003
are as follows:
Three Months Ended | Nine Months Ended | ||||||||
(dollars in thousands) | 2004 | 2003 | 2004 | 2003 | |||||
Net income | $ | 12,214 | $ | 10,864 | $ | 42,093 | $ | 40,426 | |
Unrealized gains (losses) on marketable securities | 172 | (414) | 47 | (246 | ) | ||||
Comprehensive income | $ | 12,386 | $ | 10,450 | $ | 42,140 | $ | 40,180 |
In accordance with SFAS No. 144, the company recorded a pre-tax charge for the impairment of long-lived assets of $1.4 million in the second quarter of 2004. The long-lived asset held for sale was a closed store sold on July 7, 2004. These charges are included as a component of other income and adjusted the carrying value of the closed store to its estimated fair market value less cost to sell.
Page 4 of 9 (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 third quarter ended September 25, 2004 increased
2.8% to $518.6 million compared to sales of $504.7 million in
the same quarter of 2003. Sales for the first three quarters of
this year increased 2.6% to $1.56 billion compared to $1.52
billion in 2003. Comparable store sales in the third quarter
increased 3.1% compared to a 2.4% increase in 2003. Through the
first three quarters of this year, the company experienced a
3.1% increase in comparable store sales compared to a 2.6%
increase for the same period a year ago. The third quarter
results represent the thirteenth consecutive quarterly increase
in comparable store sales.
Favorable
sales results for the quarter and year-to-date were heavily
impacted by a continuing strong performance from the store
perishable departments. Although the company experienced some
product cost inflation in the first three quarters of 2004,
management does not feel it can accurately measure the full
impact of product inflation and deflation on retail pricing due
to changes in the types of merchandise sold between periods,
shifts in customer buying patterns and the fluctuation of
competitive factors.
Company
revenues are generated from the sale of consumer products in
our grocery supermarkets and pet supply stores. When
calculating the percentage change in comparable store sales,
the company defines a new store to be 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.
Gross
profit of $136.7 million at 26.4% of sales, increased $3.3
million or 2.5% versus the same quarter last year and the gross
profit rate remained the same. The year-to-date gross profit at
26.3% of sales increased $8.9 million or 2.2% and the gross
profit rate remained the same. Cost of sales consists of direct
product costs (net of discounts and allowances), warehouse
costs, transportation costs and manufacturing facility costs.
Year-to-date vendor rebates, credits and promotional allowances
related to buying and merchandising activities decreased $1.9
million compared to the first three quarters of last year. In
contrast, through inventory shrink loss reduction initiatives,
the company reduced its inventory shrink losses by $1.3 million
compared to the first three quarters of last year. Management
is not aware of any events or trends that may materially impact
sales or product costs, causing a material change to the
overall financial operation of the company.
Operating, general and
administrative expenses during the third quarter of $121.4
million at 23.4% of sales, increased $1.2 million or 1.0%
compared to the same quarter in 2003. As a percentage of sales,
operating expenses decreased 0.4% compared with the third
quarter last year. Year-to-date operating, general and
administrative expenses increased $6.3 million compared to the
first three quarters of last year, but remained consistent as a
percentage of sales at 22.8% compared with 22.9% of sales in
2003.
The company's
net income in the first three quarters of this year was
negatively impacted by substantial increases in employee labor
and benefit expenses. In addition to the expected labor cost
increases associated with sales growth, the company added hours
for extensive store level employee-training programs. With a
better-trained workforce, management expects to recoup the
investment in productivity gains while also improving sales
through better customer service. Year-to-date employee health
care costs increased $3.0 million compared to the first three
quarters of 2003. The company self-insures a majority of its
employee health care benefits and has experienced an inordinate
amount of high dollar claims since the fourth quarter of 2003.
Medical claims returned to expected dollar levels in the current quarter as health
care costs in the third quarter rose 6.6% compared to increases
of 10.8% and 62.2% in the first and second quarters of this
year. Management is working with a health care consulting firm
on cost containment strategies to bring these costs back in
line with historical performance results. Employer paid
employment taxes increased $1.4 million due to additional hours
worked and significant increases in state unemployment tax
rates.
Costs associated
with property and casualty insurance coverage maintained with
outside carriers, but with high deductible and retention
levels, increased $660,000 in the first three quarters compared
to the same period last year. Management is currently working with
a third party firm on premium reducing strategies.
The
company implemented a store relamping and retrofitting program
to improve lighting and reduce utility costs. Management
believes the two-year retrofitting program will reduce electric
costs by approximately 5.0% when fully completed in
2005.
Page 5 of 9 (Form 10-Q)
WEIS MARKETS,
INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
(continued)
OPERATING RESULTS
(continued)
The
installation of new ergonomic warehouse product picking racks
designed to improve working conditions and productivity was
completed in the third quarter of 2004. Several other efforts
to improve productivity through technology enhancements are
underway in the distribution center and will be completed by
year-end. The company also continues to evaluate several new
technology solutions geared to improving inventory control and
labor efficiencies in its stores for implementation in
2005.
In
the third quarter, the company's investment income totaled
$435,000 at 0.1% of sales, an increase of $132,000 or 43.6%
compared to the same period a year ago. Year-to-date, the
company's investment income increased $282,000 or 30.7% to $1.2
million.
The
company's other income is primarily generated from rental
income, coupon-handling fees, store service commissions,
cardboard salvage, gain or loss on the sale of fixed assets and
interest expense. Other income of $3.8 million at 0.7% of sales
decreased $523,000 or 12.1% compared to the same quarter last
year. Year-to-date other income of $11.7 million at 0.7% of
sales decreased $1.1 million or 8.7% versus a year ago. In the
first quarter, the company realized a pre-tax net gain on the
sale of fixed assets of $1.5 million, predominantly related to
the sale of a closed store facility. The company incurred a
pre-tax impairment loss of $1.4 million during the second
quarter of 2004 on a closed store facility, which was sold on
July 7, 2004.
The
effective tax rate for the third quarter of 2004 was 37.6%
compared with 39.1% in 2003. Year-to-date, the effective tax
rate was 37.4% compared to 38.3% in the same period last
year.
For the
three month period ended September 25, 2004, net income of
$12.2 million increased 12.4% compared to the same period last
year. Basic and diluted earnings per share of $0.45 for the
quarter increased 12.5% compared to 2003. Year-to-date earnings
increased 4.1% from $40.4 million to $42.1 million. Basic and
diluted earnings per share in the first three quarters of 2004
increased 4.0% to $1.55 compared to $1.49 generated in the
first three quarters of last year.
As of
September 25, 2004, Weis Markets, Inc. operated 158 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 nine months of 2004, the company generated $93.6
million in cash flows from operating activities compared to
$96.8 million for the same period in 2003. Working capital
decreased $15.2 million or 9.4% since the beginning of the
year, primarily due to a special one-dollar per share dividend
paid to shareholders in September of 2004.
Net cash
used in investing activities in the first three quarters of
2004 totaled to $41.4 million compared to the $74.9 million
used in 2003. Capital expenditures for the first three quarters
totaled $50.3 million compared to $24.3 million in 2003. At the
beginning of the current year, the company estimated that its
current year capital expenditure plans would require an
investment of $93.2 million. Due to several delays in building
plans, the company reduced this estimate to $75.0 million in
the second quarter. The capital expenditure 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.
Page 6 of 9 (Form 10-Q)
WEIS MARKETS,
INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
(continued)
LIQUIDITY AND CAPITAL RESOURCES
(continued)
Net cash
used in financing activities during the first three quarters of
2004 was $52.0 million compared to $22.3 million in 2003.
Treasury stock purchases amounted to $2.3 million in the first
three quarters of the year compared to $45,000 in purchases
during the same period in the prior year. The April 14, 2004
Board resolution authorizing the purchase of 1,000,000 shares
of treasury stock has a remaining balance of 948,890
shares.
The
company paid its shareholders $49.9 million in cash dividends
in the first three quarters of 2004 compared with $22.3 million
paid in the first three quarters of last year. On September 3,
2004, the company paid a special one-dollar per share dividend
totaling $27.1 million to its shareholders. At a regular
meeting held in October, the Board of Directors unanimously
approved a quarterly dividend of $0.28 per share, payable on
November 19, 2004 to shareholders of record on November 5,
2004.
The company has
no other commitment of capital resources as of September 25,
2004, other than the lease commitments on its store facilities
under operating leases that expire at various dates up to 2024.
The company anticipates funding its working capital
requirements during the next twelve months, including its
capital expenditure requirements, through internally generated
cash flows from operations and without external financing. If
the need were to arise for additional funding, the company has
a $100 million three-year unsecured Revolving Credit Agreement
that was established in October of 2002 for general corporate
purposes. At September 25, 2004, the company had no cash
borrowings, but did have outstanding letters of credit of
approximately $17.6 million under the credit
agreement.
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 included in the 2003
10-K. There have been no changes to
the Critical Accounting Policies since the company filed
its Annual Report on Form 10-K for the year ended
December 27, 2003.
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.
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 nine months ended September 25, 2004. 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 27, 2003 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
27, 2003 and is incorporated herein by reference.
Page 7 of 9 (Form 10-Q)
WEIS MARKETS,
INC.
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 8 of 9 (Form 10-Q)
WEIS MARKETS, INC.
Item 6. Exhibits and
Reports on Form 8-K
(a) Exhibits.
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
(b) Reports on Form 8-K
One Form 8-K, Item 12, was filed on July 19, 2004, to announce the second quarter results of the company.
One Form 8-K, Item 4, was filed on September 29, 2004, to announce on September 23, 2004, Ernst & Young LLP ("E&Y") notified Weis Markets, Inc. (the "Registrant") that they did not wish to submit a proposal for the 2005 audit engagement and had also decided to resign as auditors for fiscal year 2004 effective immediately. The reports on the Registrant's financial statements from E&Y for the past two years, or any year prior to that period, have not contained an adverse opinion or a disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles. There have been no disagreements with E&Y on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure during the two most recent fiscal years, any subsequent interim period through the date of resignation or in any of the years prior to that period, which, if not resolved to the satisfaction of E&Y, would have caused it to make reference to the subject matter of the disagreement in connection with its report.
On September 24, 2004, the Audit Committee of the Registrant engaged Grant Thornton LLP as the Registrant's independent accountant. The Registrant did not, nor did anyone on its behalf, consult Grant Thornton LLP during the Registrant's two (2) most recent fiscal years and during the subsequent interim period prior to the Registrant's engagement of Grant Thornton LLP regarding the application of accounting principles to a specified transaction (completed or proposed) or the type of audit opinion that might be rendered on the Registrant's financial statements. The Audit Committee's decision was based upon a review of competitive bids submitted from various accounting firms per requests made by the Registrant earlier in the year.
Grant Thornton LLP informed the Registrant that it has completed client acceptance procedures and has accepted the audit engagement. The Registrant provided Grant Thornton LLP with a copy of this disclosure before it was filed with the Commission.
One Form 8-K, Item 12, was filed on October 25, 2004, to announce the third 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 11/04/2004 | /S/Norman S. Rich | ||
Norman S. Rich | |||
President / Chief Executive Officer | |||
Date 11/04/2004 | /S/William R. Mills | ||
William R. Mills | |||
Senior Vice President and Treasurer / | |||
Chief Financial Officer / Chief Accounting Officer | |||
Page 9 of 9 (Form 10-Q)
WEIS MARKETS,
INC.
CERTIFICATION- CHIEF EXECUTIVE OFFICER
Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
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
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 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 report;
4. The registrant's other
certifying officer and I are responsible for establishing and
maintaining disclosure
controls and procedures (as
defined in Exchange Act Rules 13a-15 and 15d-15) for the
registrant and have:
a) designed
such disclosure controls and procedures, or caused such
disclosure controls and procedures to
be
designed under our supervision, 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 and presented in this
report
our conclusions about the effectiveness of the disclosure
controls and procedures, as of the end
of
the period covered by this report based on such evaluation;
and
c) disclosed
in this report any change in the registrant's internal control
over financial reporting that occurred
during the registrant's most recent fiscal quarter that has
materially affected, or is reasonably likely to
materially
affect, the registrant's internal control over financial
reporting; and
5. The registrant's other
certifying officer and I have disclosed, based on our most
recent evaluation of internal
control over financial reporting, to the registrant's auditors
and the audit committee of registrant's board
of directors (or persons performing the equivalent
functions):
a) all
significant deficiencies and material weaknesses in the design
or operation of internal controls over
financial reporting which are reasonably likely to adversely
affect the registrant's ability to record,
process,
summarize and report financial information; and
b) any
fraud, whether or not material, that involves management or
other employees who have a significant
role in the registrant's internal control over financial
reporting.
Date: November 4, 2004
/S/ Norman S. Rich
Norman
S. Rich
President/CEO
WEIS MARKETS,
INC.
CERTIFICATION- CHIEF FINANCIAL OFFICER
Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
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
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 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 report;
4. The registrant's other
certifying officer and I are responsible for establishing and
maintaining disclosure
controls and procedures (as
defined in Exchange Act Rules 13a-15 and 15d-15) for the
registrant and have:
a) designed
such disclosure controls and procedures, or caused such
disclosure controls and procedures to
be
designed under our supervision, 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 and presented in this
report
our conclusions about the effectiveness of the disclosure
controls and procedures, as of the end
of
the period covered by this report based on such evaluation;
and
c) disclosed
in this report any change in the registrant's internal control
over financial reporting that occurred
during the registrant's most recent fiscal quarter that has
materially affected, or is reasonably likely to
materially
affect, the registrant's internal control over financial
reporting; and
5. The registrant's other
certifying officer and I have disclosed, based on our most
recent evaluation of internal
control over financial reporting, to the registrant's auditors
and the audit committee of registrant's board
of directors (or persons performing the equivalent
functions):
a) all
significant deficiencies and material weaknesses in the design
or operation of internal controls over
financial reporting which are reasonably likely to adversely
affect the registrant's ability to record,
process,
summarize and report financial information; and
b) any
fraud, whether or not material, that involves management or
other employees who have a significant
role
in the registrant's internal control over financial
reporting.
Date: November 4, 2004
/S/ William R. Mills
William
R. Mills
Senior
Vice President
and
Treasurer/CFO
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 September 25, 2004, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), We, Norman S. Rich, President / Chief Executive Officer, and 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/ Norman S. Rich
Norman S. Rich
President / CEO
11/04/2004
/S/ William R. Mills
William R. Mills
Senior Vice President and Treasurer / CFO
11/04/2004
The foregoing certification is being
furnished solely pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the
United States Code) and is not being filed as part of the
report or as a separate disclosure document.
A signed original of this written statement required by Section 906 has been provided to Weis Markets, Inc. and will be retained by Weis Markets, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.