Category Archives: Weis Markets

Weis Markets – Latest Company News

Weis Markets Q1 Net Income Down
28 Apr 2008

Sales for the first quarter of 2008 increased 4.2% to $595.7 million while comparable store sales were up 3.9% compared to the same period a year ago.

Basic and diluted earnings per share totaled $0.34 per share, compared to $0.50 per share in 2007. The company said that its earnings were also impacted by increases of 35.4% in diesel fuel costs and 18.1% in higher health insurance costs.

Norman Rich, CEO of Weis Markets, said: “The first quarter was the perfect retail storm with a combination of factors significantly impacting our gross margins. We continue to see considerable wholesale food inflation. Food commodity prices are increasing at a faster pace than retail prices paid by our customers.

“At the same time, due to an uncertain economy and the high cost of gasoline, our customers are more cautious in their spending. In addition, we continue to maintain our aggressive pricing and promotional program throughout our markets.”

Weis Markets Appoints New President and COO
21 Feb 2008

As Weis Markets’s president and COO, Mr Hepfinger will oversee the company’s day-to-day store operations, perishable and center store marketing, merchandising and procurement, pharmacy, distribution, human resources and store support services.

Prior to joining Weis Markets, Mr Hepfinger oversaw Price Chopper’s warehouse, distribution, procurement and store operations. During his 32 year career with Price Chopper, he worked as vice president of merchandising, vice president of retailing operations and regional vice president. Price Chopper is a 116 store supermarket company.

Weis Markets Q4 Sales Up
13 Feb 2008

The company’s basic and diluted earnings per share decreased $0.20 to $0.32 per share compared to the same period of 2006. Net income totaled $8.6 million, compared to $14 million in 2006.

The company said that its fourth quarter earnings were impacted by a 1.3% gross profit rate decline, down from 26% in 2006 to 24.7% in 2007.

For the 52-week period ended December 29, 2007, the company’s sales increased 3.3% to $2.3 billion while its comparable store sales increased 3.5%.Year to date net income decreased 9% to $51 million and basic and diluted earnings per share decreased $0.18 to $1.89 per share.

Weis Markets recalls two fruit sweets due to undeclared allergen
02 Jan 2008

The company said that people who have an allergy or severe sensitivity to walnuts run the risk of serious or life-threatening allergic reaction if they consume these products.

These products, which were sold in Weis Markets’s bakeries, have been removed from store shelves and destroyed. This problem came to the company’s attention after a customer complaint.

Weis Markets Q3 Sales Up
25 Oct 2007

Over the quarter ending September 29, 2007, the company reported a 1.8% increase in comparable store sales, while net income declined by 6.5% to $10.8 million. Earnings per share declined by $0.03 to $0.40 per share compared with the same period one year ago.

In the year to date, the company’s sales have increased by 2.9% to $1.7 billion, while its comparable store sales increased by 3.0%. For the thirty-nine week period ending September 29, 2007, net income increased 0.9% to $42.4 million and earnings per share increased $0.02 to $1.57 per share.

Weis Markets Reports 3% Sales Increase in Q2
23 Jul 2007

The company’s second quarter basic and diluted EPS increased $0.10 to $0.67 per share while net income increased 17.2% to $18.2 million.

Second quarter earnings were favorably impacted by the sale of two properties generating a $5.3 million pre-tax gain. Expenses as a percentage of sales remained consistent, due to recently implemented cost control initiatives, as compared to the same period last year.

The company said its sales continue to benefit from perishable department sales growth, successful sales building strategies and aggressive promotional activity.

For the 26-week period ending June 30, 2007, the company’s year-to-date sales increased 3.7% to $1.2 billion, while comparable store sales were up 3.6%.Year-to-date basic and diluted EPS increased $0.04 to $1.17 and net income increased 3.7% to $31.6 million.

Weis Markets – Company View

A statement by Robert F Weis, Chairman and Norman S. Rich, President and Chief Executive Officer of Weis Markets, follows. This statement has been taken from the company’s 2006 Annual Report.

In 2006, we continued to make progress while investing for a future of sustained growth and strong returns for our shareholders.

Financial Results:

For the 52-week period ending December 30, 2006, our sales increased 1.0% to $2.2 billion compared to the 53-week period ending December 31, 2005. Adjusting for the extra week in 2005, our sales increased 2.8% and our comparable store sales were up 2.0%.

In 2006, our net income totaled $56.0 million for the 52-week period compared to $63.4 million for the 53-week period in 2005. For the same period, our basic and diluted earnings per share totaled $2.07 compared to $2.35 per share in 2005.

We are encouraged by our sales performance.We came off a strong year in 2005, which had one additional week compared to 2006. Despite this challenge, we generated a record sales year in 2006. As we noted in our 2005 Annual Report, we launched our Where Freshness Matters campaign, highlighting the quality and value of our perishables. Our commitment to freshness and service has already paid dividends. Early in 2006, we successfully introduced our new Weis Steakhouse Angus program, which resulted in strong customer acceptance and a 23% increase in beef category sales.Our produce sales also increased significantly in 2006.

We continue to perform well in key center store categories where our grocery, frozen and dairy sales are up. In addition, our private label market sales continue to grow.

However, our year over year earnings comparison was impacted by:

The additional week in 2005, a 53-week year, compared to the 52-week year in 2006.

3.5% increase in labor expenses due in large part to additional staffing requirements for new stores, expansions and remodels.

16.0% increase in fuel costs and an estimated 15% increase in petroleum-based store supplies.

7.3% increase in utility costs.

11.4% increase in credit and debit interchange fees.

6.3% increase in advertising and media expenses.

$1.7 million pre-tax write-off for two closed store properties.

$1.1 million increase in depreciation due to our accelerated capital expenditure program.

We are taking action to rein in expenses and note our success in addressing similar challenges in past years.

Investing in Growth:

As a company with a commitment to growth and the financial resources to achieve our goals, we made a record investment in our store base and infrastructure. In 2006, our capital expenditures totaled $100.0 million, nearly double our 2005 investment.During the year, we opened new superstores in Ranson,West Virginia and Thurmont, Maryland.We also opened a replacement unit in Mifflintown, Pennsylvania, while completing five expansions and nine remodels.

In addition, we continue to upgrade our distribution system.We reacquired existing warehouse space in Sunbury which was previously leased to a food service tenant. Instead of building an expensive addition to our distribution center, we are upgrading this existing facility at a significantly lower cost.We plan to convert a 56,000-square-foot section for frozen food, ice cream and novelty storage. Afterward, we will upgrade an additional 27,000-squarefoot section to accommodate increased variety in dairy, deli, packaged meats and produce.

Our ultimate goal is long-term, profitable growth. To achieve this goal, we will continue to invest in our existing store base, particularly proven store assets. In 2007, we plan to invest $72.5 million in our capital expenditures program. Two-thirds of this budget is targeted to store construction. Over the next twelve months, we plan to build two new superstores, including one replacement unit, eight additions and nine remodels.

While we intend to complete these projects in 2007, our schedule is subject to site acquisition considerations, the local approval process, weather and construction challenges.

Our Associates:

Our Annual Report is designed to give a detailed review of the past year and an update on our plans for the future. It is also designed to give our readers a feel for who we are as a company. Our associates are at the heart of everything we do.We strongly believe our success is rooted in their commitment and dedication. To give them the tools to succeed and better serve our customers, we make it a priority to invest in their training programs.

Our company and associates are increasingly active in the communities we serve. Four years ago, we started our annual charitable golf tournament which raises money for communitybased health care organizations throughout our marketing area. It is a tournament run and managed by our associates, and it has helped us significantly expand our charitable efforts.

Since the inception of our golf tournament, we have donated more than $1 million to local hospitals, health groups and clinics.We have been particularly supportive of neo-natal, women’s health and pediatric programs.

We are proud of our associates and all they do on behalf of our company and customers.With their able assistance, we look to the future with confidence and optimism.

Weis Markets – Top Competitors

The following companies are the major competitors of Weis Markets, Inc.

  • Wal-Mart PETsMART Inc.
  • Wal-Mart Stores, Inc.
  • Giant Food Inc

Weis Markets – Major Products and Services

Weis Markets is a regional grocery chain that operates supermarkets and pet food stores. The company’s products and services inlcude:

Supermarkets Products:

  • Groceries
  • Dairy products
  • Frozen foods
  • Meats
  • Seafood
  • Fresh produce
  • Floral
  • Prescriptions
  • Deli/bakery products
  • Prepared foods
  • Fuel
  • Household products

Third Party Services:

  • In store banks
  • Laundry services
  • Take out restaurants

Brands:

  • Mr. Z’s food mart
  • King’s supermarkets
  • Cressler’s marketplace
  • Scot’s-Lo-Cost
  • Save-A-Lot

Weis Markets – Key Employees


Name

Job Title

Board

Compensation

Norman S Rich

President, Chief Executive Officer and Director

Executive Board

669472 USD

Jonathan H Weis

Vice Chairman and Secretary

Executive Board

376131 USD

William R Mills

Senior Vice President, Chief Financial Officer, Treasurer and Director

Executive Board

366176 USD

Robert F Weis

Chairman

Non Executive Board

Richard E Shulman

Director

Non Executive Board

Michael M Apfelbaum

Director

Non Executive Board

Steven C Smith

Director

Non Executive Board

Edward W Rakoskie

Vice President, Operations

Senior Management

249604 USD

Wayne S Bailey

Vice President, Merchandising

Senior Management

Alan L Barrick

Vice President, Engineering and Manufacturing

Senior Management

Walter B Bruce

Vice President, Private Label

Senior Management

Harold P Giglio

Vice President, Meat, Deli and Seafood

Senior Management

Dale E Horst

Vice President, Store Operations

Senior Management

Joseph G Kleman

Vice President, Distribution

Senior Management

Jeff Maltese

Vice President, Pharmacy

Senior Management