Weis Markets Reports Third Quarter Results

Rhea-AI Summary

Weis Markets (NYSE: WMK) reported net sales of $1.1 billion for Q3 2021, reflecting a 6.1% increase year-over-year. However, net income declined to $28.5 million, down 9.0% from $31.3 million in 2020, resulting in earnings per share of $1.06. Year-to-date net sales totaled $3.1 billion, up 1.0%, but net income fell 13.3% to $86.2 million. Despite challenges like labor shortages and supply chain issues, the company plans to boost capital expenditures by 11.1% to $150 million and announced a 3.2% dividend increase.

Positive

• Net sales for Q3 2021 increased by 6.1% year-over-year.
• The company plans to increase capital expenditures to $150 million, an 11.1% increase.
• The Board of Directors announced a 3.2% increase in quarterly cash dividend.

Negative

• Q3 net income decreased by 9.0% to $28.5 million.
• Year-to-date net income fell 13.3% to $86.2 million.
• Year-to-date comparable store sales decreased by 0.1% year-over-year.

SUNBURY, Pa., Nov. 1, 2021 /PRNewswire/ -- Weis Markets, Inc. (NYSE: WMK) today reported its financial results for the thirteen-week period and 39-week period ended September 25, 2021.

Net sales totaled $1.1 billion for the thirteen-week period ended September 25, 2021, compared to $1.0 billion for the same period in 2020, up 6.1 percent. Third quarter comparable store sales increased 4.6 percent on an individual year-over-year basis and increased 19.4 percent on a two-year stacked basis.

The Company's third quarter net income totaled $28.5 million compared to $31.3 million in 2020, down 9.0 percent. Third quarter earnings per share totaled $1.06 compared to $1.16 per share for the same period in 2020.

"We continued to generate strong results in the third quarter," said Weis Markets Chairman, President and CEO Jonathan H. Weis. "Our hardworking and dedicated associates are the key to our success. They continue to help us meet the challenges of a pandemic-impacted marketplace, including a tight labor market, supply chain disruptions impacting product availability, and product cost inflation resulting in some consumer resistance and a changing sales mix. Their success is our success."

In addition to its fourth quarter holiday bonus, Mr. Weis said most rank and file associates will receive an appreciation bonus in January as an incremental thank you in recognition of their ongoing efforts to serve customers as it has done periodically over the past 18 months.

Supported by its elevated financial performance and cash position on a two-year stacked basis, the Company increased its 2021 capital expenditures outlook to $150 million, up 11.1 percent from the $135 million budget announced at the Company's annual shareholder meeting in April. Along with continued investments in associates and customers, the accelerated reinvestments in hundreds of retail store improvement projects and supply chain network capabilities will further enable the Company's long-term positive momentum.

The Weis Markets' Board of Directors declared on October 28, 2021 a 3.2 percent increase in the quarterly cash dividend from $0.31 per share to $0.32 per share to shareholders of record as of November 8, 2021 payable on November 22, 2021. The last quarterly cash dividend increase was in the fourth quarter of 2018.

Year to Date

Net sales totaled $3.1 billion, increasing 1.0 percent for the 39-week period ending September 25, 2021, compared to the same period in 2020. Year to date comparable store sales decreased a relatively flat 0.1 percent on an individual year-over-year basis, and increased 17.2 percent on a two-year stacked basis.

The Company's year to date net income totaled $86.2 million compared to $99.5 million in 2020, down 13.3 percent. Year to date earnings per share totaled $3.21 compared to $3.70 for the same period in 2020.

About Weis Markets
Founded in 1912, Weis Markets, Inc. is a Mid Atlantic food retailer operating 197 stores in Pennsylvania, Maryland, Delaware, New Jersey, New York, West Virginia and Virginia. For more information, please visit: WeisMarkets.com or Facebook.com/WeisMarkets.

In addition to historical information, this news release may contain forward-looking statements, which are included pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995.  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: competitive and reputational risks; financial, investment and infrastructure risks; information security, cybersecurity and data privacy risks; supply chain and third-party risks; risks created by pandemics (including the ongoing COVID-19 outbreak and the related responses of governments, consumers, customers, suppliers and employees); and legal, regulatory and other external risks.  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. Management is also providing a two-year stacked comparable store sales analysis, a non-GAAP measure, because management believes this metric is useful to investors and analysts.  It is not recommended that the two-year-stacked analysis be considered a substitute for the Company's operating results as reported in accordance with GAAP.

 

WEIS MARKETS, INC. COMPARATIVE SUMMARY OF SALES & EARNINGS
Third Quarter — 2021
(Unaudited)
	13 Weeks Ended										Increase
	September 25, 2021					September 26, 2020					(Decrease)
Net sales	$		1,063,452,000			$		1,002,387,000			6.1	%
Income from operations			38,968,000					42,806,000			(9.0)	%
Income before provision for income taxes	$		39,175,000			$		43,478,000			(9.9)	%
Provision for income taxes			10,668,000					12,142,000			(12.1)	%
Net income	$		28,507,000			$		31,336,000			(9.0)	%
Weighted-average shares outstanding			26,898,443					26,898,443			—
Basic and diluted earnings per share	$		1.06			$		1.16		$	(0.10)
	39 Weeks Ended										Increase
	September 25, 2021					September 26, 2020					(Decrease)
Net sales	$		3,117,141,000			$		3,086,910,000			1.0	%
Income from operations			116,360,000					136,236,000			(14.6)	%
Income before provision for income taxes	$		117,713,000			$		136,013,000			(13.5)	%
Provision for income taxes			31,479,000					36,516,000			(13.8)	%
Net income	$		86,234,000			$		99,497,000			(13.3)	%
Weighted-average shares outstanding			26,898,443					26,898,443			—
Basic and diluted earnings per share	$		3.21			$		3.70		$	(0.49)

 

TWO-YEAR STACKED COMPARABLE STORE SALES
Third Quarter — 2021 (Unaudited)
		Percentage Changes
		13 Weeks Ended
			2021 vs. 2020			2020 vs. 2019
Comparable store sales (individual year)			4.6	%		14.8	%
Comparable store sales (two-year stacked)			19.4
Comparable store sales, excluding fuel (individual year)			3.2			15.7	%
Comparable store sales, excluding fuel (two-year stacked)			18.9	%
		Percentage Changes
		39 Weeks Ended
			2021 vs. 2020			2020 vs. 2019
Comparable store sales (individual year)			(0.1)	%		17.3	%
Comparable store sales (two-year stacked)			17.2
Comparable store sales, excluding fuel (individual year)			(1.4)			18.4	%
Comparable store sales, excluding fuel (two-year stacked)			17.0	%

 

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SOURCE Weis Markets

FAQ

What were Weis Markets' Q3 2021 sales figures?

Weis Markets reported Q3 2021 net sales of $1.1 billion, a 6.1% increase compared to Q3 2020.

How did Weis Markets' net income change in Q3 2021?

Net income for Q3 2021 was $28.5 million, down 9.0% from $31.3 million in Q3 2020.

What is the current dividend for WMK shareholders?

Weis Markets declared a quarterly cash dividend of $0.32 per share, a 3.2% increase from the previous $0.31.

What is the capital expenditure outlook for Weis Markets in 2021?

The capital expenditure outlook for 2021 has been increased to $150 million, up 11.1% from the previous $135 million.

What were the year-to-date sales figures for Weis Markets by September 25, 2021?

Year-to-date net sales totaled $3.1 billion, reflecting a 1.0% increase compared to the same period in 2020.