UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
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
(Exact name of registrant as specified in its charter)
| ||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
(Zip Code) | ||
(Address of principal executive offices) |
Registrant’s telephone number, including area code: ( | 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.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No
Securities registered pursuant to section 12(b) of the act:
As of November 3, 2022, there were issued and outstanding
WEIS MARKETS, INC.
TABLE OF CONTENTS
FORM 10-Q |
| Page |
1 | ||
2 | ||
3 | ||
4 | ||
5 | ||
6 | ||
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 10 | |
Item 3. Quantitative and Qualitative Disclosures about Market Risk | 18 | |
18 | ||
19 | ||
20 | ||
WEIS MARKETS, INC.
PART I – FINANCIAL INFORMATION
ITEM I – FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS
(unaudited)
(amounts in thousands, except shares) |
| September 24, 2022 |
| December 25, 2021 | ||
Assets | ||||||
Current: | ||||||
Cash and cash equivalents | $ | | $ | | ||
Marketable securities | | | ||||
SERP investment | | | ||||
Accounts receivable, net | | | ||||
Inventories | | | ||||
Prepaid expenses and other current assets | | | ||||
Total current assets | | | ||||
Property and equipment, net | | | ||||
Operating lease right-to-use | | | ||||
Goodwill | | | ||||
Intangible and other assets, net | | | ||||
Total assets | $ | | $ | | ||
Liabilities | ||||||
Current: | ||||||
Accounts payable | $ | | $ | | ||
Accrued expenses | | | ||||
Operating leases | | | ||||
Accrued self-insurance | | | ||||
Deferred revenue, net | | | ||||
Income taxes payable | | | ||||
Total current liabilities | | | ||||
Postretirement benefit obligations | | | ||||
Accrued self-insurance | | | ||||
Operating leases | | | ||||
Deferred income taxes | | | ||||
Other | | | ||||
Total liabilities | | | ||||
Shareholders’ Equity | ||||||
Common stock, no par value, | | | ||||
Retained earnings | | | ||||
Accumulated other comprehensive income | ( | | ||||
| | |||||
Treasury stock at cost, | ( | ( | ||||
Total shareholders’ equity | | | ||||
Total liabilities and shareholders’ equity | $ | | $ | |
See accompanying notes to Consolidated Financial Statements.
1
WEIS MARKETS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
13 Weeks Ended | 39 Weeks Ended | ||||||||||||
(amounts in thousands, except shares and per share amounts) |
| September 24, 2022 |
| September 25, 2021 | September 24, 2022 | September 25, 2021 | |||||||
Net sales | $ | | $ | | $ | | $ | | |||||
Cost of sales, including advertising, warehousing and distribution expenses | | | | | |||||||||
Gross profit on sales | | | | | |||||||||
Operating, general and administrative expenses | | | | | |||||||||
Income from operations | | | | | |||||||||
Investment income (loss) and interest expense | ( | | ( | | |||||||||
Other income (expense) | | ( | | ( | |||||||||
Income before provision for income taxes | | | | | |||||||||
Provision for income taxes | | | | | |||||||||
Net income | $ | | $ | | $ | | $ | | |||||
Weighted-average shares outstanding, basic and diluted | | | | | |||||||||
Cash dividends per share | $ | | $ | | $ | | $ | | |||||
Basic and diluted earnings per share | | | | |
See accompanying notes to Consolidated Financial Statements.
2
WEIS MARKETS, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)
13 Weeks Ended | 39 Weeks Ended | |||||||||||
(amounts in thousands) |
|
| September 24, 2022 |
|
| September 25, 2021 | September 24, 2022 | September 25, 2021 | ||||
Net income | $ | | $ | | $ | | $ | | ||||
Other comprehensive income (loss) by component, net of tax: | ||||||||||||
Available-for-sale marketable securities | ||||||||||||
Unrealized holding gains (losses) arising during period | ( | ( | ( | ( | ||||||||
Other comprehensive income gain (loss), net of tax | ( | ( | ( | ( | ||||||||
Comprehensive income, net of tax | $ | | $ | | $ | | $ | |
See accompanying notes to Consolidated Financial Statements.
3
WEIS MARKETS, INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(unaudited)
Accumulated | |||||||||||||||||||
(amounts in thousands, except shares) | Other | Total | |||||||||||||||||
For the Thirteen Weeks Ended | Common Stock | Retained | Comprehensive | Treasury Stock | Shareholders’ | ||||||||||||||
September 24, 2022 and September 25, 2021 | Shares | Amount | Earnings | Income (Loss) | Shares | Amount | Equity | ||||||||||||
Balance at June 25, 2022 |
| | $ | | $ | | $ | ( | | $ | ( | $ | | ||||||
Net Income | — | — | | — | — | — | | ||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | ( | — | — | ( | ||||||||||||
Dividends paid | — | — | ( | — | — | — | ( | ||||||||||||
Balance at September 24, 2022 | | $ | | $ | | $ | ( | | $ | ( | $ | | |||||||
Balance at June 26, 2021 | | $ | | $ | $ | | $ | ( | $ | | |||||||||
Net income | — | — | | — | — | — | | ||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | ( | — | — | ( | ||||||||||||
Dividends paid | — | — | ( | — | — | — | ( | ||||||||||||
Balance at September 25, 2021 | | $ | | $ | | $ | | | $ | ( | $ | |
Accumulated | |||||||||||||||||||
(amounts in thousands, except shares) | Other | Total | |||||||||||||||||
For the Thirty-Nine Weeks Ended | Common Stock | Retained | Comprehensive | Treasury Stock | Shareholders’ | ||||||||||||||
September 24, 2022 and September 25, 2021 |
| Shares |
| Amount |
| Earnings |
| Income (Loss) |
| Shares |
| Amount |
| Equity | |||||
Balance at December 25, 2021 |
| | $ | | $ | | $ | | | $ | ( | $ | | ||||||
Net Income | — | — | | — | — | — | | ||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | ( | — | — | ( | ||||||||||||
Dividends paid | — | — | ( | — | — | — | ( | ||||||||||||
Balance at September 24, 2022 | | $ | | $ | | $ | ( | | $ | ( | $ | | |||||||
Balance at December 26, 2020 | | $ | | $ | | $ | | | $ | ( | $ | | |||||||
Net income | — | — | | — | — | — | | ||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | ( | — | — | ( | ||||||||||||
Dividends paid | — | — | ( | — | — | — | ( | ||||||||||||
Balance at September 25, 2021 | | $ | | $ | | $ | | | $ | ( | $ | |
See accompanying notes to Consolidated Financial Statements.
4
WEIS MARKETS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
39 Weeks Ended | |||||||
(amounts in thousands) |
|
| September 24, 2022 |
|
| September 25, 2021 | |
Cash flows from operating activities: | |||||||
Net income | $ | | $ | | |||
Adjustments to reconcile net income to | |||||||
net cash provided by operating activities: | |||||||
Depreciation and amortization | | | |||||
(Gain) loss on disposition of fixed assets | ( | | |||||
Unrealized (gain) loss in value of equity securities | | | |||||
Deferred income taxes | ( | | |||||
Unrealized (gain) loss in SERP | | ( | |||||
Changes in operating assets and liabilities: | |||||||
Inventories | ( | | |||||
Accounts receivable and prepaid expenses | ( | | |||||
Accounts payable and other liabilities | ( | ( | |||||
Income taxes | | | |||||
Other | ( | | |||||
Net cash provided by operating activities | | | |||||
Cash flows from investing activities: | |||||||
Purchase of property and equipment | ( | ( | |||||
Proceeds from the sale of property and equipment | | | |||||
Purchase of marketable securities | ( | ( | |||||
Proceeds from the sale and maturities of marketable securities | | | |||||
Purchase of intangible assets | ( | ( | |||||
Proceeds from sale of intangible assets | | — | |||||
Change in SERP investment | ( | ( | |||||
Net cash used in investing activities | ( | ( | |||||
Cash flows from financing activities: | |||||||
Dividends paid | ( | ( | |||||
Net cash used in financing activities | ( | ( | |||||
Net increase (decrease) in cash and cash equivalents | | | |||||
Cash and cash equivalents at beginning of year | | | |||||
Cash and cash equivalents at end of period | $ | | $ | |
See accompanying notes to Consolidated Financial Statements. In the first thirty-nine weeks of 2022, there was $
5
WEIS MARKETS, INC.
NOTES TO THE 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 deferrals and 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. The Company has evaluated subsequent events for disclosure through the date of issuance of the accompanying unaudited consolidated interim financial statements and there were no material subsequent events which require additional disclosure. 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) Current Relevant Accounting Standards
The Company regularly monitors recently issued accounting standards and assesses their applicability and impact. The Company believes that there are no accounting standard updates that have or will have a material or significant impact on the Company’s accounting policies.
(3) Marketable Securities
The Company’s marketable securities are all classified as available-for-sale within “Current Assets” in the Company’s Consolidated Balance Sheets. FASB has established three levels of inputs that may be used to measure fair value:
Level 1Observable inputs such as quoted prices in active markets for identical assets or liabilities;
Level 2Observable inputs, other than Level 1 inputs in active markets, that are observable either directly or indirectly; and
Level 3Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions.
The Company’s marketable securities valued using Level 1 inputs include highly liquid equity securities, for which quoted market prices are available. The Company’s bond and commercial paper portfolio is valued using a combination of pricing for similar securities, recently executed transactions, cash flow models with yield curves and other pricing models utilizing observable inputs, which are considered Level 2 inputs.
For Level 2 investment valuation, the Company utilizes standard pricing procedures of its investment advisory firm which includes various third-party pricing services. These procedures also require specific price monitoring practices as well as pricing review reports, valuation oversight and pricing challenge procedures to maintain the most accurate representation of investment fair market value.
The Company accrues interest on its bond and commercial paper portfolio throughout the life of each bond and commercial paper held. Dividends from the equity securities are recognized as received. Interest, dividends and unrealized gains and losses on equity securities are recognized in “Investment income (loss) and interest expense” on the Company’s Consolidated Statements of Income. The Company recognized investment loss of $
6
Marketable securities, as of September 24, 2022 and December 25, 2021, consisted of:
Gross | Gross | |||||||||||
(amounts in thousands) | Amortized | Unrealized | Unrealized | Fair | ||||||||
September 24, 2022 |
| Cost |
| Holding Gains |
| Holding Losses |
| Value | ||||
Available-for-sale: | ||||||||||||
Level 1 | ||||||||||||
$ | | |||||||||||
Level 2 | ||||||||||||
$ | | $ | | $ | ( | | ||||||
| | — | | |||||||||
$ | | $ | | $ | ( | $ | |
Gross | Gross | |||||||||||
(amounts in thousands) | Amortized | Unrealized | Unrealized | Fair | ||||||||
December 25, 2021 |
| Cost |
| Holding Gains |
| Holding Losses |
| Value | ||||
Available-for-sale: | ||||||||||||
Level 1 | ||||||||||||
$ | | |||||||||||
Level 2 | ||||||||||||
$ | | $ | | $ | ( | | ||||||
| | ( | | |||||||||
$ | | $ | | $ | ( | $ | |
Maturities of marketable securities classified as available-for-sale at September 24, 2022, were as follows:
Amortized | Fair | |||||
(amounts in thousands) |
| Cost |
| Value | ||
Available-for-sale: | ||||||
Due within one year | $ | | $ | | ||
Due after one year through five years | | | ||||
Due after five years through ten years | | | ||||
Due after ten years | | | ||||
$ | | $ | |
SERP Investments
The Company also maintains a non-qualified supplemental executive retirement plan for certain of its associates which allows them to defer income to future periods. Participants in the plans earn a return on their deferrals based on mutual fund investments. The Company chooses to invest in the underlying mutual fund investments to offset the liability associated with the non-qualified deferred compensation plans. Such investments are reported on the Company’s Consolidated Balance Sheets as “SERP investment,” are classified as trading securities and are measured at fair value using Level 1 inputs with gains and losses included in “Investment income (loss) and interest expense” on the Company’s Consolidated Statements of Income. The Company recognized investment loss of $
7
(4) Accumulated Other Comprehensive Income
All balances in accumulated other comprehensive income are related to available-for-sale marketable securities. The following table sets forth the balance of the Company’s accumulated other comprehensive income, net of tax.
Unrealized Gains (Losses) | |||
on Available-for-Sale | |||
(amounts in thousands) |
| Marketable Securities | |
Accumulated other comprehensive income balance as of December 25, 2021 | $ | | |
Other comprehensive income (loss) | ( | ||
Net current period other comprehensive income (loss) | ( | ||
Accumulated other comprehensive income balance as of September 24, 2022 | $ | ( |
(5) Long-Term Debt
On
Interest expense related to long-term debt was $
(6) Revenue Recognition
The Chief Operating Officer, the Company’s chief operating decision maker, analyzes store operational revenues by geographical area but each area offers customers similar products, has similar distribution methods, and is supported by centralized management processes. The Company’s operations are reported as a single reportable segment.
The following table represents net sales by type of product for the thirteen and thirty-nine weeks ended September 24, 2022, and September 25, 2021:
13 Weeks Ended | |||||||||||
(amounts in thousands) |
| September 24, 2022 |
| September 25, 2021 | |||||||
Grocery |
| $ | |
| | % | $ | |
| | % |
Pharmacy | | | | | |||||||
Fuel | | | | | |||||||
Manufacturing | | | | | |||||||
Total net sales | $ | | | % | $ | | | % | |||
39 Weeks Ended | |||||||||||
(amounts in thousands) |
| September 24, 2022 |
| September 25, 2021 | |||||||
Grocery | $ | |
| % | $ | |
| % | |||
Pharmacy | | | |||||||||
Fuel | | | |||||||||
Manufacturing | | | |||||||||
Total net sales | $ | | % | $ | | % |
8
(7) Leases
As of September 24, 2022, the Company leased approximately
The Company leases or subleases space to tenants in owned, vacated and open store facilities. Rental income is recorded when earned as a component of “Operating, general and administrative expenses.”
The following is a schedule of the lease costs included in “Operating, general and administrative expenses” for the thirteen and thirty-nine weeks ended September 24, 2022, and September 25, 2021.
13 Weeks Ended | 39 Weeks Ended | |||||||||||
(amounts in thousands) |
|
| September 24, 2022 | September 25, 2021 |
|
| September 24, 2022 |
|
| September 25, 2021 | ||
Operating lease cost | $ | | $ | | $ | | $ | | ||||
Variable lease cost | | | | | ||||||||
Lease or sublease income | ( | ( | ( | ( | ||||||||
Net lease cost | $ | | $ | | $ | | $ | |
(8) Taxes
The Company reduced its provision for income taxes by $
The Company’s effective income tax rate was
9
WEIS MARKETS, INC.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of Weis Markets, Inc.’s (the “Company”) financial condition and results of operations should be read in conjunction with the unaudited Consolidated Financial Statements and related notes included in Item 1 of this Quarterly Report on Form 10-Q, the Company’s audited Consolidated Financial Statements and the related notes included in the Company’s Annual Report on Form 10-K for the year ended December 25, 2021, filed with the U.S. Securities and Exchange Commission, as well as the cautionary statement captioned "Forward-Looking Statements" immediately following this analysis.
Company Summary
Weis Markets is a conventional supermarket chain that operates 197 retail stores with over 23 thousand associates located in Pennsylvania and six surrounding states: Delaware, Maryland, New Jersey, New York, Virginia and West Virginia. Its products include groceries, dairy products, frozen foods, meats, seafood, fresh produce, floral, pharmacy services, deli products, prepared foods, bakery products, beer and wine, fuel and general merchandise items, such as health and beauty care and household products. The store product selection includes national, local and private brands.
The Company advertises its products and promotes its brand through digital and printed circulars; radio ads; e-mail blasts; and on-line via its web site, social media and mobile applications. The Company promotes by using Everyday Lower Price; Low Price Guarantee; Low, Low Price; 3 Day Sale; senior and military discounts; and Loyalty programs. The Loyalty program includes reward points that may be redeemed for discounts on items in store, at the Company’s fuel stations or one of its third-party fuel station partners.
Utilizing its own strategically located distribution center and transportation fleet, Weis Markets self distributes approximately 63% of product with the remaining being supplied by direct store delivery vendors. In addition, the Company has three manufacturing facilities which process milk, ice cream and fresh meat products. The corporate offices are located in Sunbury, PA where the Company was founded in 1912.
On March 11, 2020, the World Health Organization declared that the novel coronavirus (COVID-19) had become a pandemic, and on March 13, the U.S. President declared a National Emergency concerning the disease. This resulted in government mandated shutdowns, as well as multiple legislative acts to provide emergency economic assistance for individuals, families and businesses affected by the novel coronavirus pandemic. These events were accretive to our sales and gross profits compared to the time periods preceding the impact of the novel coronavirus pandemic. The Company is not able to speculate how the ensuing economy or unknown future related expenses will affect it after the governmental novel coronavirus pandemic measures have ended.
The Company continues to innovate and remain relevant to industry trends and offering customer convenience by presenting programs like “Weis 2 Go Online” ordering with curbside pickup and home delivery. As of September 24, 2022, the Company offered Weis 2 Go Online curbside pickup in 188 of its locations as well as home delivery with Shipt in 176 locations. In September 2021, the Company announced a partnership with DoorDash to offer on-demand grocery delivery, which is currently available in 189 locations. Total Ecommerce sales were $51.3 million in the first thirty-nine weeks of 2022 compared to $57.2 million in the same period in 2021, a decrease of 10.3 percent. When compared to the first thirty-nine weeks of 2020 total Ecommerce sales have increased 3.3 percent.
10
WEIS MARKETS, INC.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(continued)
Two-Year Stacked Comparable Store Sales Analysis
Management is providing Comparable Store Sales Two-Year Stacked analysis, a non-GAAP measure, because management believes this metric is useful to investors and analysts. A Comparable Store Sales Two-Year Stacked analysis presents a comparison of results and trends over a longer period of time to demonstrate the effect of the novel coronavirus pandemic on the operating results of the Company. Information presented in the tables below is not intended for use as an alternative to any other measure of performance. It is not recommended that this table be considered a substitute for the Company’s operating results as reported in accordance with GAAP.
Year-over-year and sequential comparisons are the primary calculations used to analyze operating results, however, due to significant fluctuations caused by the novel coronavirus pandemic management believes it is necessary to provide a Two-Year Stacked Comparable Store Sales analysis. The following tables provide the two-year stacked comparable store sales, including and excluding fuel, for the periods ended September 24, 2022, and September 25, 2021, as well as periods ended September 25, 2021, and September 26, 2020, respectively. Comparable store sales increased 7.9 percent on an individual year-over-year basis and increased 12.5 percent on a two-year stacked basis for the thirteen weeks ended September 24, 2022 following the increase of 14.8 percent for the same period in 2020. Comparable store sales increased 8.6 percent on an individual year-over-year basis and increased 8.5 percent on a two-year stacked basis in the thirty-nine weeks ended September 24, 2022 following the increase of 17.3 percent for the same period in 2020.
Percentage Change | |||||||
13 Weeks Ended | |||||||
| 2022 vs. 2021 | 2021 vs. 2020 | |||||
Comparable store sales (individual year) | 7.9 | % | 4.6 | % | |||
Comparable store sales (two-year stacked) | 12.5 | ||||||
Comparable store sales, excluding fuel (individual year) | 6.7 | 3.2 | % | ||||
Comparable store sales, excluding fuel (two-year stacked) | 9.9 | % | |||||
Percentage Change | |||||||
39 Weeks Ended | |||||||
| 2022 vs. 2021 | 2021 vs. 2020 | |||||
Comparable store sales (individual year) | 8.6 | % | (0.1) | % | |||
Comparable store sales (two-year stacked) | 8.5 | ||||||
Comparable store sales, excluding fuel (individual year) | 6.8 | (1.4) | % | ||||
Comparable store sales, excluding fuel (two-year stacked) | 5.4 | % |
When calculating the percentage change in comparable store sales, the Company defines a new store to be comparable after it has been in operation for five full fiscal quarters. Relocated stores and stores with expanded square footage are included in comparable store sales since these units are located in existing markets and are open during construction. Planned store dispositions are excluded from the calculation. The Company only includes retail food stores in the calculation.
11
WEIS MARKETS, INC.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(continued)
Results of Operations
Analysis of Consolidated Statements of Income
Percentage Change | |||||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | 13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||
(amounts in thousands, except per share amounts) |
|
| September 24, 2022 |
|
| September 25, 2021 |
|
| September 24, 2022 | September 25, 2021 | 2022 vs. 2021 | 2022 vs. 2021 | |||||||
Net sales | $ | 1,150,551 | $ | 1,063,452 | $ | 3,389,853 | $ | 3,117,141 | 8.2 | % | 8.7 | % | |||||||
Cost of sales, including advertising, warehousing and distribution expenses | 862,908 | 780,320 | 2,516,311 | 2,285,428 | 10.6 | 10.1 | |||||||||||||
Gross profit on sales | 287,643 | 283,132 | 873,542 | 831,713 | 1.6 | 5.0 | |||||||||||||
Gross profit margin | 25.0 | % | 26.6 | % | 25.8 | % | 26.7 | % | |||||||||||
Operating, general and administrative expenses | 253,985 | 244,164 | 750,066 | 715,353 | 4.0 | 4.9 | |||||||||||||
O, G & A, percent of net sales | 22.1 | % | 23.0 | % | 22.1 | % | 22.9 | % | |||||||||||
Income from operations | 33,658 | 38,968 | 123,476 | 116,360 | (13.6) | 6.1 | |||||||||||||
Operating margin | 2.9 | % | 3.7 | % | 3.6 | % | 3.7 | % | |||||||||||
Investment income (loss) and interest expense | (1,483) | 608 | (3,394) | 4,360 | (343.9) | (177.8) | |||||||||||||
Investment income (loss) and interest expense, percent of net sales | (0.1) | % | 0.1 | % | (0.1) | % | 0.1 | % | |||||||||||
Other income (expense) | 1,214 | (401) | 4,805 | (3,007) | 402.7 | 259.8 | |||||||||||||
Other income (expense), percent of net sales | 0.1 | % | (0.0) | % | 0.1 | % | (0.1) | % | |||||||||||
Income before provision for income taxes | 33,389 | 39,175 | 124,887 | 117,713 | (14.8) | 6.1 | |||||||||||||
Income before provision for income taxes, percent of net sales | 2.9 | % | 3.7 | % | 3.7 | % | 3.8 | % | |||||||||||
Provision for income taxes | 4,731 | 10,668 | 28,574 | 31,479 | (55.7) | (9.2) | |||||||||||||
Effective income tax rate | 14.2 | % | 27.2 | % | 22.9 | % | 26.7 | % | |||||||||||
Net income | $ | 28,658 | $ | 28,507 | $ | 96,313 | $ | 86,234 | 0.5 | % | 11.7 | % | |||||||
Net income, percent of net sales | 2.5 | % | 2.7 | % | 2.8 | % |