SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark One)
[x] QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the quarterly period ended: October 26, 2002
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934.
Commission File No. 0-2633
VILLAGE SUPER MARKET, INC.
(Exact name of registrant as specified in its charter)
NEW JERSEY 22-1576170
(State of other jurisdiction of incorporation (I. R. S. Employer
or organization) Identification No.)
733 MOUNTAIN AVENUE, SPRINGFIELD, NEW JERSEY 07081
(Address of principal executive offices) (Zip Code)
(973) 467-2200
(Registrant's telephone number, including area code)
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 the issuer's classes of common
stock as of the latest practicable date:
December 4, 2002
Class A Common Stock, No Par Value 1,485,700 Shares
Class B Common Stock, No Par Value 1,594,076 Shares
The Registrant was not involved in bankruptcy proceedings during the preceding
five years or any time prior thereto.
VILLAGE SUPER MARKET, INC.
INDEX
PART I PAGE NO.
FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Condensed Balance Sheets . . . . . . . . . . . 3
Consolidated Condensed Statements of Income . . . . . . . . 4
Consolidated Condensed Statements of Cash Flows . . . . . . 5
Notes to Consolidated Condensed Financial Statements . . . 6-7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations . . . . . . . . . . . . 8-11
Item 3. Quantitative & Qualitative Disclosures about Market Risk. . 11
Item 4. Controls and Procedures . . . . . . . . . . . . . . . . . . 11-12
PART II
OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . 12
Signatures . . . . . . . . . . . . . . . . . . . . . . . . 13
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
VILLAGE SUPER MARKET, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in Thousands)
October 26, July 27,
2002 2002
ASSETS (Unaudited)
Current Assets
Cash and cash equivalents $ 29,729 $ 33,770
Merchandise inventories 34,175 33,780
Patronage dividend receivable 3,843 2,196
Other current assets 6,391 6,862
-------- --------
Total current assets 74,138 76,608
Property, equipment and fixtures, net 99,692 98,674
Investment in related party, at cost 13,663 13,663
Goodwill 10,605 10,605
Other assets 4,554 4,503
-------- ---------
TOTAL ASSETS $ 202,652 $ 204,053
========= =========
LIABILITIES AND SHAREHOLDERS EQUITY
Current Liabilities
Current portion of long-term debt $ 7,347 $ 3,061
Accounts payable to related party 29,187 30,631
Accounts payable and accrued expenses 20,523 22,705
--------- ---------
Total current liabilities 57,057 56,397
Long-term debt 38,604 43,634
Other liabilities 7,047 6,579
Shareholders' equity
Class A common stock - no par value,
issued 1,762,800 shares 18,411 18,411
Class B common stock - no par value,
issued and outstanding 1,594,076 shares 1,035 1,035
Retained earnings 84,948 82,517
Accumulated other comprehensive loss ( 616) ( 616)
Less cost of Class A treasury shares -
(277,100 shares at October 26,2002 and
282,200 shares at July 27,2002) ( 3,834) ( 3,904)
-------- --------
Total shareholders' equity 99,944 97,443
-------- --------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 202,652 $ 204,053
======== ========
See accompanying Notes to Consolidated Condensed Financial Statements.
VILLAGE SUPER MARKET, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars in Thousands Except Per Share Amounts)
(Unaudited)
13 Weeks Ended 13 Weeks Ended
October 26, 2002 October 27, 2001
Sales $ 216,538 $ 210,831
Cost of Sales 162,505 158,315
--------- ---------
Gross Profit 54,033 52,516
Operating and administrative expense 46,941 45,186
Depreciation and amortization 2,203 1,837
Non-cash impairment charge - 640
--------- ---------
Operating income 4,889 4,853
Interest expense, net 779 645
--------- ---------
Income before income taxes 4,110 4,208
Income taxes 1,660 1,587
--------- ---------
Net Income $ 2,450 $ 2,621
========= =========
Net income per share:
Basic $ .80 $ .86
Diluted $ .78 $ .84
========= =========
See accompanying Notes to Consolidated Condensed Financial Statements.
VILLAGE SUPER MARKET, INC.
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
13 Weeks Ended 13 Weeks Ended
October 26, 2002 October 27, 2001
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 2,450 $ 2,621
Adjustments to reconcile net income
to net cash (used in) provided by
operating activities:
Depreciation and amortization 2,203 1,837
Non-cash impairment charge - 640
Deferred taxes 350 75
Provision to value inventories at LIFO 100 200
Changes in assets and liabilities:
(Increase) in merchandise inventories (495) (1,844)
(Increase) in patronage dividend receivable (1,647) (863)
(Increase) decrease in other current assets 471 (1,180)
(Increase) decrease in other assets (61) 258
Increase (decrease) in accounts payable
to related party (1,444) 3,167
Increase (decrease) in accounts payable
and accrued expenses (2,182) 1,784
Increase in other liabilities 118 98
-------- --------
Net cash (used in ) provided by
operating activities (137) 6,793
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ( 3,211) ( 5,394)
-------- --------
Net cash used in investing activities ( 3,211) ( 5,394)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options 51 163
Principal payments of long-term debt ( 744) ( 694)
-------- --------
Net cash used in financing activities ( 693) ( 531)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ( 4,041) 868
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 33,770 31,156
-------- --------
CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 29,729 $ 32,024
======== ========
NON-CASH SUPPLEMENTAL DISCLOSURES:
Investment in related party $ - $ 550
SUPPLEMENTAL DISCLOSURES OF CASH
PAYMENTS MADE FOR:
Interest (net of amounts capitalized) $ 1,481 $ 1,655
Income taxes - 30
See accompanying Notes to Consolidated Condensed Financial Statements.
VILLAGE SUPER MARKET, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
1. In the opinion of management, the accompanying unaudited consolidated
condensed financial statements contain all adjustments (consisting of normal
and recurring accruals) necessary to present fairly the consolidated financial
position as of October 26, 2002 and the consolidated results of operations and
cash flows for the periods ended October 26, 2002 and October 27, 2001.
The significant accounting policies followed by the Company are set forth
in Note 1 to the Company's consolidated financial statements in the July 27,
2002 Village Super Market, Inc. Annual Report on Form 10-K, which should be
read in conjunction with this Form 10-Q.
2. The results of operations for the period ended October 26, 2002 are not
necessarily indicative of the results to be expected for the full year.
3. At both October 26, 2002 and July 27, 2002, approximately 66% of
merchandise inventories are valued by the LIFO method while the balance is
valued by FIFO. If the FIFO method had been used for the entire inventory,
inventories would have been $9,462,000 and $9,362,000 higher than reported at
October 26, 2002 and July 27, 2002, respectively.
4. The number of common shares outstanding for calculation of net income
per share is as follows:
October 26, October 27,
2002 2001
Weighted average shares
outstanding - basic 3,076,108 3,037,479
Dilutive effect of employee
stock options 69,984 71,451
--------- ---------
Weighted average shares
outstanding - diluted 3,146,092 3,108,930
========= =========
5. Adoption of New Accounting Standards
Effective July 28, 2002, the Company adopted the provisions of Financial
Accounting Standards Board ("FASB") Statement 143, "Accounting for Asset
Retirement Obligations." This statement addresses financial accounting and
reporting for obligations associated with the retirement of tangible long-lived
assets and the associated asset retirement cost. The implementation of this
statement had an immaterial effect on the consolidated financial statements of
the Company.
Effective July 28, 2002, the Company adopted the provisions of FASB
Statement 144, "Accounting for the Impairment or Disposal of Long-lived
Assets." This statement requires that one accounting model be used for
long-lived assets to be disposed of by sale, whether previously held and used
or newly acquired. This statement also broadens the presentation of
discontinued operations to include more disposal transactions. The
implementation of this statement did not have any impact on the
consolidated financial statements of the Company.
Effective July 28, 2002, the Company adopted the provisions of FASB
Statement 146, "Accounting for Costs Associated with Exit or Disposal
Activities." This statement requires companies to recognize costs associated
with exit or disposal activities when they are incurred rather than at the
date of a commitment to an exit or disposal plan. The implementation of
this statement did not have any impact on the consolidated financial statements
of the Company.
In November 2002, the FASB Emerging Issues Task Force(EITF) reached a
consensus with respect to EITF Issue No. 02-16, "Accounting for Consideration
Given by a Vendor to a Customer." This consensus includes a presumption that
cash consideration received by a customer from a vendor be treated as a
reduction of cost of sales in the customer's income statement. As the Company
already accounts for such consideration as a reduction of cost of sales, this
EITF has no impact on the Company's financial statements.
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Sales were $216,538,000 in the first quarter of fiscal 2003, an
increase of 2.7% from the prior year. On September 26, 2001, the Company
opened a 59,000 sq. ft. store in Garwood, NJ. On March 6, 2002, the Company
opened a 64,000 sq. ft. store in Hammonton, NJ. On February 5, 2002, the
Company closed a 55,000 sq. ft. store in Ventnor, NJ. Excluding the above
stores, same store sales increased .3% in the first quarter. Same stores
sales increased less than recent fiscal years due to a substantial number of
store openings by competitors near the Company's stores in the last six months,
a softening of the economy and recently increased levels of promotional
activity by supermarket chains in the Company's operating areas. Based on these
factors, we expect same store sales in the second quarter of fiscal 2003 of
approximately a .5% decline to a 1.0% increase.
Gross profit as a percentage of sales increased to 25.0% in the first
quarter of fiscal 2003 compared to 24.9% in the first quarter last year. Gross
profit as a percentage of sales increased due to improved product mix and lower
LIFO charges. This increase was partially offset by increased promotional
spending and incentives received one year ago in connection with the store
opening.
Operating and administrative expenses as a percentage of sales increased
to 21.7% in the first quarter compared to 21.4% in the first quarter last year.
The increase is due to increased payroll and fringe benefit costs.
Depreciation and amortization expense increased in the first quarter of
fiscal 2003 compared to the first quarter last year due to depreciation on
the substantial fixed asset additions placed in service in fiscal 2002,
partially offset by the discontinuance of depreciation on the closed Ventnor
store.
The Company recorded a non-cash impairment charge of $640,000 in the
first quarter of fiscal 2002 to write off the book value of the equipment of
the Ventnor store.
Interest expense (net) increased in the first quarter of fiscal 2003
compared to the prior year due to the prior year including $171,000 of interest
cost capitalized related to the construction of the new store.
The effective income tax rate increased to 40.4% in the first quarter of
fiscal 2003 compared to 37.7% in the first quarter of the prior year. This
increase is due to enacted changes in state tax law.
Net income was $2,450,000 in the first quarter fiscal 2003, a
decrease of 7% from the first quarter last year. Excluding a non-cash
impairment charge taken in the prior year, net income decreased 19%. This
decrease is attributable to minimal same store sales growth, increased
operating expense percentages and a higher effective tax rate.
CRITICAL ACCOUNTING POLICIES
Critical accounting policies are those accounting policies that
management believes are important to the portrayal of the Company's financial
condition and results of operations and require management's most difficult,
subjective or complex judgments, often as a result of the need to make
estimates about the effect of matters that are inheritently uncertain.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosures of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from
those estimates. The Company's critical accounting policies relating to the
impairment of long-lived assets and accounting for patronage dividends earned
as a stockholder of Wakefern Food Corp. are described in the Company's Annual
Report on Form 10-K for the year ended July 27, 2002. As of October 26, 2002,
there have been no material changes to any of the critical accounting policies
contained therein.
LIQUIDITY AND CAPITAL RESOURCES
Net cash used in operating activities was $137,000 for first quarter of
fiscal 2003 compared with net cash provided by operating activities of
$6,793,000 for the first quarter of the prior fiscal year. This change is
attributable to a reduction in accounts payable to related party and accounts
payable and accrued expenses in the current fiscal year compared to increases
in those categories in the prior fiscal year.
During the first quarter of fiscal 2003, the Company used cash on hand
to fund capital expenditures of $3,211,000 and to make debt payments of
$744,000. The largest capital expenditure in the first quarter related to the
remodel of the English Creek store.
Working capital was $17,081,000 at October 26, 2002 compared to
$20,211,000 at July 27, 2002. The working capital ratio was 1.30 to 1 at
October 26, 2002 compared to 1.36 to 1 at July 27, 2002. The reduction in
working capital at October 26, 2002 compared to July 27, 2002 is a result of
the inclusion in current liabilities of the $4,286,000 initial principal
payment due September 16, 2003 on the Company's $30 million term loan. The
Company's working capital needs are reduced since inventory is generally sold
by the time payment to Wakefern and other suppliers are due.
The Company's has budgeted approximately $15,000,000 for capital
expenditures in fiscal 2003. In addition to the completion of the English
Creek remodel, the Company expects to start two major store expansions this
fiscal year. The Company's primary sources of liquidity in fiscal 2003 are
expected to be cash on hand at October 26, 2002, operating cash flow and
equipment financing. The Company has available a $15,000,000 (none outstanding
at October 26, 2002) unsecured revolving credit line, which expires
September 16, 2004.
There have been no substantial changes as of October 26, 2002 to the
contractual obligations described on page 5 of the Company's Anuual Report on
Form 10-K for the year ended July 27, 2002.
RELATED PARTY TRANSACTIONS
A description of the Company's transactions with Wakefern Food Corp., its
principal supplier, and with other related parties is included on page 6 of the
Company's Annual Report on Form 10-K for the year ended July 27, 2002. There
have been no significant changes in the Company's relationship or transactions
with these related parties during the first quarter of fiscal 2003.
FORWARD-LOOKING STATEMENTS:
This Form 10-Q 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 availability of capital, the liquidity
of the Company on a cash flow basis, the success of operating initiatives and
other risk factors detailed herein and in other filings of the Company.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
In the normal course of operations, the Company is exposed to market
risks arising from adverse changes in interest rates. Market risk is defined
for these purposes as the potential change in the fair value resulting from an
adverse movement in interest rates. As of October 26, 2002, the Company's only
variable rate borrowings relate to a swap agreement. On October 18, 2001, the
Company entered into an interest rate swap agreement with a major financial
institution pursuant to which the Company pays a variable rate of six-month
LIBOR plus 3.36%(5.19% at October 26, 2002) on a notional amount of $10,000,000
expiring in September 2009 in exchange for a fixed rate of 8.12%. A 100 basis
point increase in interest rates, applied to the Company's borrowings at
October 26, 2002, would result in an annual increase in interest expense and a
corresponding reduction in cash flow of approximately $100,000.
At October 26, 2002, the Company had demand deposits of $16,459,000
earning interest at prime less 2.5% which are exposed to the impact of interest
rate changes.
ITEM 4. CONTROLS AND PROCEDURES
As required by Rule 13a-15 under the Exchange Act, within the 90 days
prior to the filing date of this report, the Company carried out an evaluation
of the effectiveness of the design and operation of the Company's disclosure
controls and procedures. This evaluation was carried out under the supervision
and with the participation of the Company's management, including the Company's
Principal Executive Officer along with the Company's Chief Financial Officer.
Based upon the evaluation, the Company's Principal Executive Officer along with
the Company's Chief Financial Officer concluded that the Company's disclosure
controls and procedures are effective. There have been no significant changes
in the Company's internal controls or in other factors, which could
significantly affect internal controls subsequent to the date the Company
carried out its evaluation.
Disclosure controls and procedures are controls and other procedures
that are designed to ensure that information required to be disclosed in
Company reports filed or submitted under the Exchange Act is recorded,
processed, summarized and reported, within the time periods specified in the
Securities and Exchange Commission's rules and forms. Disclosure controls and
procedures include, without limitation, controls and procedures designed to
ensure that information required to be disclosed in Company reports filed under
the Exchange Act is accumulated and communicated to management, including the
Company's Principal Executive Officer and Chief Financial Officer as
appropriate, to allow timely decisions regarding required disclosure.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
6(a) Exhibits
Exhibit 28(a) - Press Release dated December 2, 2002
Exhibit 99.1 Certification
Exhibit 99.2 Certification
6(b) Reports on Form 8-K.
None
SIGNATURES
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.
Village Super Market, Inc.
Registrant
Date: December 4, 2002 /s/ James Sumas
James Sumas
(Principal Executive Officer)
Date: December 4, 2002 /s/ Kevin R. Begley
Kevin R. Begley
(Chief Financial Officer)
Certification
I, Kevin Begley, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Village Super
Market, 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 period 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 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: December 4, 2002
/s/ Kevin Begley
Kevin Begley
Chief Financial Officer
Certification
I, James Sumas, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Village Super
Market, 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 period 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 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: December 4, 2002
/s/ James Sumas
James Sumas
Principal Executive Officer
VILLAGE SUPER MARKET, INC.
REPORTS RESULTS FOR THE FIRST QUARTER ENDED
OCTOBER 26, 2002
Contact: Kevin Begley, C.F.O.
(973) 467-2200, Ext. 220
Springfield, New Jersey - December 2, 2002 - Village Super Market,
Inc. (NSD-VLGEA) reported sales and net income for the first quarter
ended October 26, 2002, Perry Sumas, President, announced today.
Net income was $2,450,000 ($.78 per diluted share) in the first
quarter of fiscal 2003, a decline of 7% from the first quarter of the prior
year. Excluding a non-cash impairment charge in the prior year, net income
declined 19%. The decline in net income in the quarter was primarily
attributable to a minimal same store sales increase, increased operating
expense percentages and a higher effective tax rate.
Sales in the first quarter were $216,538,000, an increase of 2.7%
from the prior year. Same store sales increased .3%. Same store sales
increased less than recent fiscal years due to a substantial number of
store openings by competitors near the Company's stores in the last six
months, a softening of the economy, and recently increased levels of
promotional activity by supermarket chains in the Company's operating
areas. Based on these factors, we expect same store sales of approximately
a .5% decline to a 1.0% increase in the second quarter of fiscal 2003. As
a result of this more challenging environment, we believe it will be
difficult to match the earnings level achieved in the second quarter of the
prior fiscal 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 ended October 26, 2002.
13 Weeks Ended 13 Weeks Ended
October 26, 2002 October 27, 2001
Sales $ 216,538,000 $ 210,831,000
Net Income $ 2,450,000 $ 2,621,000
Net Income per share-Basic $ .80 $ .86
Net Income per share-Diluted $ .78 $ .84
FORWARD- LOOKING STATEMENTS:
This Press Release to shareholders 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 availability of capital, the
liquidity of the Company on a cash flow basis, the success of operating
initiatives and other risk factors detailed herein and in the Company's
filings with the SEC.
Exhibit 99.1
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 Quarterly Report of Village Super Market, Inc.
(the "Company") on Form 10Q for the period ending October 26, 2002 as
filed with the Securities and Exchange Commission on the date hereof (the
"Report"), I, James Sumas, Principal Executive Officer of the Company
certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to 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/ James Sumas
James Sumas
Principal Executive Officer
December 4, 2002
Exhibit 99.2
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 Quarterly Report of Village Super Market, Inc.
(the "Company") on Form 10Q for the period ending October 26, 2002 as
filed with the Securities and Exchange Commission on the date hereof (the
"Report"), I, Kevin Begley, Chief Financial Officer, of the Company certify,
pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-
Oxley Act of 2002, that:
3. The Report fully complies with the requirements of Section 13 (a)
or 15 (d) of the Securities Exchange Act of 1934; and
4. The information contained in the Report fairly presents, in all
material respects, the financial condition and results of
operations of the Company.
/s/ Kevin Begley
Kevin Begley
Chief Financial Officer
December 4, 2002