Attached files
file | filename |
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EX-32.2 - HARRIS TEETER SUPERMARKETS, INC. | d26411_ex32-2.htm |
EX-31.1 - HARRIS TEETER SUPERMARKETS, INC. | d26411_ex31-1.htm |
EX-31.2 - HARRIS TEETER SUPERMARKETS, INC. | d26411_ex31-2.htm |
EX-10.1 - HARRIS TEETER SUPERMARKETS, INC. | d26411_ex10-1.htm |
EX-32.1 - HARRIS TEETER SUPERMARKETS, INC. | d26411_ex32-1.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark one)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: March 28, 2010
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: 1-6905
RUDDICK CORPORATION
(Exact name of registrant as specified in its charter)
North Carolina | 56-0905940 | ||||
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification Number) |
301 S. Tryon St., Suite 1800, Charlotte, North Carolina | 28202 | ||||
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: (704) 372-5404
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 o
Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every
Interactive Data File required to be submitted and posted pursuant to
Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the
preceding 12 months (or for such shorter period that the registrant
was required to submit and post such files).
Yes o No o
Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, or a non-accelerated filer, or a smaller
reporting company. See definition of "large accelerated filer,"
"accelerated filer" and "smaller reporting company" in Rule 12b-2 of
the Exchange Act. (check one):
Large accelerated filer x | Accelerated filer o | ||||
Non-accelerated filer o (Do not check if a smaller reporting company) |
Smaller reporting company o |
Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act).
Yes o No x
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
Class |
Outstanding Shares as of April 26, 2010 |
||||
Common Stock | 48,784,436 shares |
RUDDICK CORPORATION
AND CONSOLIDATED SUBSIDIARIES
TABLE OF CONTENTS
PART I | FINANCIAL INFORMATION | |||||||
Page | ||||||||
Item 1. | Financial Statements | |||||||
Consolidated Condensed Balance Sheets (unaudited) - March 28, 2010 and September 27, 2009 | 1 | |||||||
Consolidated Condensed Statements of Operations (unaudited) - 13 and 26 Weeks Ended March 28, 2010 and March 29, 2009 | 2 | |||||||
Consolidated Condensed Statements of Equity and Comprehensive Income (unaudited) 26 Weeks Ended March 28, 2010 and March 29, 2009 | 3 | |||||||
Consolidated Condensed Statements of Cash Flows (unaudited) - 26 Weeks Ended March 28, 2010 and March 29, 2009 | 4 | |||||||
Notes to Consolidated Condensed Financial Statements (unaudited) | 5 | |||||||
Item 2. | Management's Discussion and Analysis of Financial Condition And Results of Operations | 11 | ||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 22 | ||||||
Item 4. | Controls and Procedures | 22 | ||||||
PART II | OTHER INFORMATION | |||||||
Item 1. | Legal Proceedings | 22 | ||||||
Item 1A. | Risk Factors | 22 | ||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 22 | ||||||
Item 3. | Defaults Upon Senior Securities | 23 | ||||||
Item 4. | Other Information | 23 | ||||||
Item 5. | Exhibits | 24 | ||||||
Signatures | 25 | |||||||
PART I
Item 1. Financial Statements
CONSOLIDATED CONDENSED BALANCE SHEETS | ||||||||
RUDDICK CORPORATION AND SUBSIDIARIES | ||||||||
(dollars in thousands) | ||||||||
(unaudited) | ||||||||
March 28, 2010 |
September 27, 2009 |
|||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and Cash Equivalents | $ | 36,785 | $ | 37,310 | ||||
Accounts Receivable, Net of Allowance for Doubtful Accounts of $4,039 and $3,690 | 93,529 | 80,146 | ||||||
Refundable Income Taxes | 2,876 | 9,707 | ||||||
Inventories | 319,366 | 310,271 | ||||||
Deferred Income Taxes | 6,962 | 6,502 | ||||||
Prepaid Expenses and Other Current Assets | 24,700 | 30,350 | ||||||
Total Current Assets | 484,218 | 474,286 | ||||||
Property, Net | 1,062,451 | 1,080,326 | ||||||
Investments | 165,339 | 156,434 | ||||||
Deferred Income Taxes | 28,847 | 30,285 | ||||||
Goodwill | 515 | 515 | ||||||
Intangible Assets | 22,548 | 23,754 | ||||||
Other Long-Term Assets | 81,551 | 78,721 | ||||||
Total Assets | $ | 1,845,469 | $ | 1,844,321 | ||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities | ||||||||
Notes Payable | $ | 6,631 | $ | 7,056 | ||||
Current Portion of Long-Term Debt and Capital Lease Obligations | 10,283 | 9,526 | ||||||
Accounts Payable | 212,154 | 227,901 | ||||||
Dividends Payable | 5,853 | 5,825 | ||||||
Deferred Income Taxes | 27 | 68 | ||||||
Accrued Compensation | 56,331 | 65,295 | ||||||
Other Current Liabilities | 91,602 | 87,194 | ||||||
Total Current Liabilities | 382,881 | 402,865 | ||||||
Long-Term Debt and Capital Lease Obligations | 325,913 | 355,561 | ||||||
Deferred Income Taxes | 574 | 580 | ||||||
Pension Liabilities | 175,394 | 168,060 | ||||||
Other Long-Term Liabilities | 102,559 | 98,892 | ||||||
Commitments and Contingencies | - | - | ||||||
Equity | ||||||||
Common Stock, no par value Shares Outstanding: 48,784,406 at March 28, 2010 and 48,545,080 at September 27, 2009 |
92,363 |
89,878 |
||||||
Retained Earnings | 869,742 | 830,236 | ||||||
Accumulated Other Comprehensive Loss | (109,710 | ) | (108,524 | ) | ||||
Total Equity of Ruddick Corporation | 852,395 | 811,590 | ||||||
Noncontrolling Interest | 5,753 | 6,773 | ||||||
Total Equity | 858,148 | 818,363 | ||||||
Total Liabilities and Equity | $ | 1,845,469 | $ | 1,844,321 | ||||
See Notes to Consolidated Condensed Financial Statements (unaudited) |
1
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | ||||||||||||||
RUDDICK CORPORATION AND SUBSIDIARIES | ||||||||||||||
(in thousands, except per share data) | ||||||||||||||
(unaudited) | ||||||||||||||
13 Weeks Ended | 26 Weeks Ended | |||||||||||||
March 28, 2010 |
March 29, 2009 |
March 28, 2010 |
March 29, 2009 |
|||||||||||
Net Sales | $ | 1,071,438 | $ | 1,010,004 | $ | 2,111,950 | $ | 2,004,989 | ||||||
Cost of Sales | 751,195 | 705,126 | 1,485,163 | 1,399,268 | ||||||||||
Selling, General and Administrative Expenses | 271,411 | 265,856 | 534,528 | 524,899 | ||||||||||
Operating Profit | 48,832 | 39,022 | 92,259 | 80,822 | ||||||||||
Interest Expense | 4,981 | 4,135 | 10,014 | 9,024 | ||||||||||
Interest Income | (122 | ) | (43 | ) | (139 | ) | (120 | ) | ||||||
Net Investment Gain | - | (35 | ) | (1 | ) | (35 | ) | |||||||
Income Before Income Taxes | 43,973 | 34,965 | 82,385 | 71,953 | ||||||||||
Income Tax Expense | 16,336 | 11,955 | 30,731 | 25,953 | ||||||||||
Net Income | 27,637 | 23,010 | 51,654 | 46,000 | ||||||||||
Less: Net Income Attributable to the Noncontrolling Interest | 158 | 68 | 444 | 176 | ||||||||||
Net Income Attributable to Ruddick Corporation | $ | 27,479 | $ | 22,942 | $ | 51,210 | $ | 45,824 | ||||||
Net Income Attributable to Ruddick Corporation Per Share: | ||||||||||||||
Basic | $ | 0.57 | $ | 0.48 | $ | 1.06 | $ | 0.96 | ||||||
Diluted | $ | 0.57 | $ | 0.48 | $ | 1.06 | $ | 0.95 | ||||||
Weighted Average Number of Shares of Common Stock Outstanding: | ||||||||||||||
Basic | 48,193 | 47,972 | 48,144 | 47,932 | ||||||||||
Diluted | 48,538 | 48,287 | 48,516 | 48,288 | ||||||||||
See Notes to Consolidated Condensed Financial Statements (unaudited) |
2
CONSOLIDATED CONDENSED STATEMENTS OF EQUITY AND COMPREHENSIVE INCOME | |||||||||||||||||||||||
RUDDICK CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||
(dollars in thousands, except share and per share amounts) | |||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
Common |
Common |
Retained |
Accumulated Other Comprehensive Income (Loss) |
Total Equity of Ruddick Corporation |
Non- |
Total |
|||||||||||||||||
Balance at September 28, 2008 | 48,278,136 | $ | 83,252 | $ | 767,562 | $ | (27,655 | ) | $ | 823,159 | $ | 6,624 | $ | 829,783 | |||||||||
Comprehensive Income: | |||||||||||||||||||||||
Net earnings | - | - | 45,824 | - | 45,824 | 176 | 46,000 | ||||||||||||||||
Unrealized loss on cash flow hedge, net of tax benefits |
- |
- |
- |
(276 |
) |
(276 |
) |
- |
(276 |
) |
|||||||||||||
Postemployment benefits liability adjustment, net of tax benefits |
- |
- |
- |
(76 |
) |
(76 |
) |
- |
(76 |
) |
|||||||||||||
Foreign currency translation adjustment, net of tax benefits |
- |
- |
- |
(3,330 |
) |
(3,330 |
) |
(41 |
) |
(3,371 |
) |
||||||||||||
Total Comprehensive Income | 42,142 | 135 | 42,277 | ||||||||||||||||||||
Dividends ($0.24 a share) | - | - | (11,642 | ) | - | (11,642 | ) | - | (11,642 | ) | |||||||||||||
Exercise of stock options, including tax benefits of $287 |
68,111 |
1,381 |
- |
- |
1,381 |
- |
1,381 |
||||||||||||||||
Share-based compensation | 211,528 | 2,877 | - | - | 2,877 | - | 2,877 | ||||||||||||||||
Shares effectively purchased and retired for withholding taxes |
(43,017 |
) |
(1,164 |
) |
- |
- |
(1,164 |
) |
- |
(1,164 |
) |
||||||||||||
Balance at March 29, 2009 | 48,514,758 | $ | 86,346 | $ | 801,744 | $ | (31,337 | ) | $ | 856,753 | $ | 6,759 | $ | 863,512 | |||||||||
Balance at September 27, 2009 | 48,545,080 | $ | 89,878 | $ | 830,236 | $ | (108,524 | ) | $ | 811,590 | $ | 6,773 | $ | 818,363 | |||||||||
Comprehensive Income: | |||||||||||||||||||||||
Net earnings | - | - | 51,210 | - | 51,210 | 444 | 51,654 | ||||||||||||||||
Unrealized loss on cash flow hedge, net of tax benefits |
- |
- |
- |
(331 |
) |
(331 |
) |
- |
(331 |
) |
|||||||||||||
Foreign currency translation adjustment, net of tax benefits |
- |
- |
- |
(855 |
) |
(855 |
) |
(54 |
) |
(909 |
) |
||||||||||||
Total Comprehensive Income | 50,024 | 390 | 50,414 | ||||||||||||||||||||
Dividends ($0.24 a share) | - | - | (11,704 | ) | - | (11,704 | ) | - | (11,704 | ) | |||||||||||||
Exercise of stock options, including tax benefits of $559 |
138,134 |
2,651 |
- |
- |
2,651 |
- |
2,651 |
||||||||||||||||
Share-based compensation | 206,684 | 2,856 | - | - | 2,856 | - | 2,856 | ||||||||||||||||
Shares effectively purchased and retired for withholding taxes |
(50,192 |
) |
(1,366 |
) |
- | - |
(1,366 |
) |
- |
(1,366 |
) |
||||||||||||
Shares purchased and retired | (55,300 | ) | (1,491 | ) | - | - | (1,491 | ) | - | (1,491 | ) | ||||||||||||
Acquisition from noncontrolling interest |
- |
(165 |
) |
- |
- |
(165 |
) |
(1,264 |
) |
(1,429 |
) |
||||||||||||
Distributions to noncontrolling interest |
- |
- |
- |
- |
- |
(146 |
) |
(146 |
) |
||||||||||||||
Balance at March 28, 2010 | 48,784,406 | $ | 92,363 | $ | 869,742 | $ | (109,710 | ) | $ | 852,395 | $ | 5,753 | $ | 858,148 | |||||||||
See Notes to Consolidated Condensed Financial Statements (unaudited) |
3
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||||||
RUDDICK CORPORATION AND SUBSIDIARIES | ||||||||||||||
(dollars in thousands) (unaudited) | ||||||||||||||
26 Weeks Ended | ||||||||||||||
March 28, 2010 | March 29, 2009 | |||||||||||||
CASH FLOW FROM OPERATING ACTIVITIES: | ||||||||||||||
Net Income | $ | 51,210 | $ | 45,824 | ||||||||||
Non-Cash Items Included in Net Income: | ||||||||||||||
Depreciation and Amortization | 66,387 | 61,341 | ||||||||||||
Deferred Income Taxes | 1,305 | 3,865 | ||||||||||||
Net Gain on Sale of Property | (900 | ) | (369 | ) | ||||||||||
Share-Based Compensation | 2,856 | 2,877 | ||||||||||||
Other, Net | (3,490 | ) | 323 | |||||||||||
Changes in Operating Accounts Providing (Utilizing) Cash: | ||||||||||||||
Accounts Receivable | (12,963 | ) | 6,826 | |||||||||||
Inventories | (9,452 | ) | 7,778 | |||||||||||
Prepaid Expenses and Other Current Assets | 3,817 | 4,749 | ||||||||||||
Accounts Payable | (16,229 | ) | (23,831 | ) | ||||||||||
Other Current Liabilities | 3,626 | 2,317 | ||||||||||||
Other Long-Term Operating Accounts | 6,855 | 900 | ||||||||||||
Dividends Received | 100 | - | ||||||||||||
Net Cash Provided by Operating Activities | 93,122 | 112,600 | ||||||||||||
INVESTING ACTIVITIES: | ||||||||||||||
Capital Expenditures | (49,000 | ) | (109,964 | ) | ||||||||||
Purchase of Other Investments | (9,483 | ) | (12,750 | ) | ||||||||||
Proceeds from Sale of Property | 4,646 | 3,080 | ||||||||||||
Return of Partnership Investments | 3,364 | 596 | ||||||||||||
Investments in COLI, Net of Proceeds from Death Benefits | (85 | ) | (656 | ) | ||||||||||
Other, Net | (1,592 | ) | (174 | ) | ||||||||||
Net Cash Used in Investing Activities | (52,150 | ) | (119,868 | ) | ||||||||||
FINANCING ACTIVITIES: | ||||||||||||||
Net Payments on Short-Term Debt Borrowings | (18 | ) | (2,687 | ) | ||||||||||
Net (Payments on) Proceeds from Revolver Borrowings | (20,700 | ) | 24,200 | |||||||||||
Proceeds from Long-Term Debt Borrowings | - | 1,470 | ||||||||||||
Payments on Long-Term Debt and Capital Lease Obligations | (8,735 | ) | (8,950 | ) | ||||||||||
Dividends Paid | (11,676 | ) | (5,820 | ) | ||||||||||
Proceeds from Stock Issued | 2,092 | 1,094 | ||||||||||||
Share-Based Compensation Tax Benefits | 559 | 287 | ||||||||||||
Purchase and Retirement of Common Stock | (1,491 | ) | - | |||||||||||
Other, Net | (1,500 | ) | (1,165 | ) | ||||||||||
Net Cash (Used in) Provided by Financing Activities | (41,469 | ) | 8,429 | |||||||||||
(Decrease) Increase in Cash and Cash Equivalents | (497 | ) | 1,161 | |||||||||||
Effect of Foreign Currency Fluctuations on Cash | (28 | ) | (778 | ) | ||||||||||
Cash and Cash Equivalents at Beginning of Period | 37,310 | 29,759 | ||||||||||||
Cash and Cash Equivalents at End of Period | $ | 36,785 | $ | 30,142 | ||||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||||||||
CASH PAID DURING THE YEAR FOR: | ||||||||||||||
Interest, Net of Amounts Capitalized | $ | 9,351 | $ | 9,139 | ||||||||||
Income Taxes | 25,035 | 20,340 | ||||||||||||
NON-CASH ACTIVITY: | ||||||||||||||
Assets Acquired under Capital Leases | - | 8,560 | ||||||||||||
See Notes to Consolidated Condensed Financial Statements (unaudited) |
4
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
RUDDICK CORPORATION AND SUBSIDIARIES
(unaudited)
1. Summary of Significant Accounting Policies
Description of Business
Ruddick Corporation (the "Company") is a holding company which, through its wholly-owned subsidiaries, is engaged in two primary businesses: Harris Teeter, Inc. ("Harris Teeter") currently operates a regional chain of supermarkets in eight states primarily in the southeastern and mid-Atlantic United States, including the District of Columbia; and American & Efird, Inc. ("A&E") manufactures and distributes industrial sewing thread, embroidery thread and technical textiles on a global basis.
Basis of Presentation
The accompanying unaudited consolidated condensed financial statements include the accounts of Ruddick Corporation and subsidiaries, including its wholly-owned operating companies, Harris Teeter and A&E, collectively referred to herein as the Company. All material intercompany amounts have been eliminated.
In December 2007, the Financial Accounting Standards Board ("FASB") issued new guidance on accounting for the noncontrolling interest in the consolidated financial statements. The Company implemented the new guidance effective September 28, 2009, the beginning of the first quarter of fiscal 2010. The new guidance changes the accounting and reporting standards for the noncontrolling interest in a subsidiary (previously referred to as minority interest). A&E owns subsidiaries with noncontrolling interest. Net income attributable to the noncontrolling interest of $68,000 and $176,000 for the 13 weeks and 26 weeks ended March 29, 2009, respectively, have been reclassified within the Company's Consolidated Condensed Statements of Operations. The amount of consolidated net income attributable to both the Company and the noncontrolling interest are shown in the Company's Consolidated Condensed Statements of Operations. Noncontrolling interest related to subsidiaries owned by A&E totaled $5.8 million and $6.8 million at March 28, 2010 and September 27, 2009, respectively. These amounts have been reclassified as noncontrolling interest in the equity section of the Company's Consolidated Condensed Balance Sheets.
In the opinion of management, the information furnished reflects all adjustments (consisting only of normal recurring accruals) necessary to present fairly the results for the interim periods presented. The statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. It is suggested that these consolidated condensed financial statements be read in conjunction with the consolidated financial statements and accompanying notes included in the Company's 2009 Annual Report on Form 10-K filed with the SEC on November 20, 2009 ("Company's 2009 Annual Report").
The Company's Consolidated Condensed Balance Sheet as of September 27, 2009 has been derived from the audited Consolidated Balance Sheet as of that date. The results of operations for the 26 weeks ended March 28, 2010 are not necessarily indicative of results for a full year.
Reporting Periods
The Company's quarterly reporting periods are generally 13 weeks and periodically consist of 14 weeks because the Company's fiscal year ends on the Sunday nearest to September 30. However, Harris Teeter's fiscal periods end on the Tuesday following the Company's fiscal period end.
The Company has evaluated subsequent events up to the filing date of this Form 10-Q, and has determined that there were no subsequent events to recognize or disclose in these financial statements.
5