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 April 1, 2006 | |
| 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 1-5039 |
WEIS MARKETS,
INC.
(Exact name of registrant as specified in its
charter)
| PENNSYLVANIA (State or other jurisdiction of incorporation or organization) |
24-0755415 (I.R.S. Employer Identification No.) |
|
| 1000 S. Second
Street P. O. Box 471 Sunbury, Pennsylvania (Address of principal executive offices) |
17801-0471 (Zip Code) |
Registrant's telephone number, including area code: (570) 286-4571 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. Yes
[X] No [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer [ ] Accelerated filer [X] Non-accelerated filer [ ]
Indicate by check mark whether the registrant
is a shell company (as defined in Rule 12b-2 of the Exchange
Act). Yes [ ]
No [X]
As of May 10, 2006, there were
issued and outstanding 27,020,987 shares of the
registrant's common stock.
WEIS MARKETS,
INC.
TABLE OF CONTENTS
| PART I - FINANCIAL INFORMATION |
| ITEM I - FINANCIAL STATEMENTS |
| WEIS MARKETS, INC. |
| CONSOLIDATED BALANCE SHEETS |
| (dollars in thousands) |
| April 1, 2006 | December 31, 2005 | |||||
| (unaudited) | ||||||
| Assets | ||||||
| Current: | ||||||
| Cash and cash equivalents | $ | 84,002 | $ | 69,300 | ||
| Marketable securities | 23,038 | 23,210 | ||||
| Accounts receivable, net | 36,760 | 38,376 | ||||
| Inventories | 178,175 | 179,382 | ||||
| Prepaid expenses | 4,001 | 6,076 | ||||
| Deferred income taxes | 3,497 | 4,359 | ||||
| Total current assets | 329,473 | 320,703 | ||||
| Property and equipment, net | 456,284 | 446,517 | ||||
| Goodwill | 15,731 | 15,731 | ||||
| Intangible and other assets, net | 5,369 | 5,536 | ||||
| $ | 806,857 | $ | 788,487 | |||
| Liabilities | ||||||
| Current: | ||||||
| Accounts payable | $ | 104,576 | $ | 100,895 | ||
| Accrued expenses | 21,243 | 20,079 | ||||
| Accrued self-insurance | 21,811 | 21,553 | ||||
| Payable to employee benefit plans | 12,892 | 12,487 | ||||
| Income taxes payable | 8,691 | 2,020 | ||||
| Total current liabilities | 169,213 | 157,034 | ||||
| Deferred income taxes | 26,374 | 27,596 | ||||
| Shareholders' Equity | ||||||
| Common stock, no par value, 100,800,000 shares authorized, | ||||||
| 33,007,496 and 33,002,357 shares issued, respectively | 8,546 | 8,371 | ||||
| Retained earnings | 742,966 | 735,865 | ||||
| Accumulated other comprehensive income | ||||||
| (Net of deferred taxes of $3,259 in 2006 and $3,047 in 2005) | 4,595 | 4,296 | ||||
| 756,107 | 748,532 | |||||
| Treasury stock at cost, 5,986,131 and 5,982,461 shares, respectively | (144,837 | ) | (144,675 | ) | ||
| Total shareholders' equity | 611,270 | 603,857 | ||||
| $ | 806,857 | $ | 788,487 | |||
| See accompanying notes to consolidated financial statements. |
Page 1 of 10 (Form 10-Q)
| WEIS MARKETS, INC. |
| CONSOLIDATED STATEMENTS OF INCOME |
| (unaudited) |
| (dollars in thousands, except shares and per share amounts) |
| Thirteen Weeks Ended | |||||
| April 1, 2006 | March 26, 2005 | ||||
| Net sales | $ | 547,786 | $ | 549,712 | |
| Cost of sales, including warehousing and distribution expenses | 400,187 | 404,605 | |||
| Gross profit on sales | 147,599 | 145,107 | |||
| Operating, general and administrative expenses | 129,688 | 121,905 | |||
| Income from operations | 17,911 | 23,202 | |||
| Investment income | 1,309 | 463 | |||
| Other income, net | 4,120 | 3,214 | |||
| Income before provision for income taxes | 23,340 | 26,879 | |||
| Provision for income taxes | 8,403 | 10,115 | |||
| Net income | $ | 14,937 | $ | 16,764 | |
| Weighted-average shares outstanding, basic | 27,020,471 | 27,032,926 | |||
| Weighted-average shares outstanding, diluted | 27,035,079 | 27,038,168 | |||
| Cash dividends per share | $ | 0.29 | $ | 0.28 | |
| Basic and diluted earnings per share | $ | 0.55 | $ | 0.62 | |
| See accompanying notes to consolidated financial statements. | |||||
| WEIS MARKETS, INC. |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (unaudited) |
| (dollars in thousands) |
| Thirteen Weeks Ended | |||||
| April 1, 2006 | March 26, 2005 | ||||
| Cash flows from operating activities: | |||||
| Net income | $ | 14,937 | $ | 16,764 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||
| Depreciation | 10,435 | 10,569 | |||
| Amortization | 1,463 | 1,780 | |||
| Loss on disposition of fixed assets | 107 | 290 | |||
| Gain on sale of marketable securities | (431 | ) | --- | ||
| Changes in operating assets and liabilities: | |||||
| Inventories | 1,207 | 1,349 | |||
| Accounts receivable and prepaid expenses | 3,691 | (2,476 | ) | ||
| Income taxes recoverable | --- | 1,729 | |||
| Accounts payable and other liabilities | 5,508 | 8,967 | |||
| Income taxes payable | 6,671 | 10,311 | |||
| Deferred income taxes | (572 | ) | (2,516 | ) | |
| Other | 104 | 4 | |||
| Net cash provided by operating activities | 43,120 | 46,771 | |||
| Cash flows from investing activities: | |||||
| Purchase of property and equipment | (21,634 | ) | (8,417 | ) | |
| Proceeds from the sale of property and equipment | 29 | 248 | |||
| Proceeds from sale of marketable securities | 1,010 | --- | |||
| Net cash used in investing activities | (20,595 | ) | (8,169 | ) | |
| Cash flows from financing activities: | |||||
| Proceeds from issuance of common stock | 175 | 7 | |||
| Dividends paid | (7,836 | ) | (7,569 | ) | |
| Purchase of treasury stock | (162 | ) | --- | ||
| Net cash used in financing activities | (7,823 | ) | (7,562 | ) | |
| Net increase in cash and cash equivalents | 14,702 | 31,040 | |||
| Cash and cash equivalents at beginning of period | 69,300 | 58,234 | |||
| Cash and cash equivalents at end of period | $ | 84,002 | $ | 89,274 | |
| See accompanying notes to consolidated financial statements. |
Page 3 of 10 (Form 10-Q)
WEIS MARKETS,
INC.
NOTES TO 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. For further information,
refer to the consolidated financial statements and footnotes
thereto included in the company's latest Annual Report on Form
10-K.
In October 2005, the FASB issued FASB Staff Position ("FSP") FAS 13-1, "Accounting for Rental Costs Incurred during a Construction Period" ("FSP FAS 13-1"). FSP FAS 13-1 requires rental costs associated with operating leases incurred during a construction period to be recognized as rental expense effective for the first reporting period after December 15, 2005. In addition, FSP FAS 13-1 requires lessees to cease capitalizing rental costs for operating lease agreements entered into prior to the effective date. Early adoption is permitted. Retrospective application of the FSP is permitted but not required. Management has changed its accounting policy to recognize rental expense during construction as of the beginning of this period. The company did not previously capitalize rental costs for operating lease agreements. The adoption of FSP FAS 13-1 did not have a material effect on the company's consolidated financial statements.
(2) Comprehensive Income
The components of comprehensive income, net of related tax, for
the periods ended April 1, 2006 and March 26, 2005 are as
follows:
| Thirteen Weeks Ended | ||||||
| (dollars in thousands) | 2006 | 2005 | ||||
| Net income | $ | 14,937 | $ | 16,764 | ||
| Other comprehensive income by component, net of tax: | ||||||
| Unrealized holding gains (losses) arising during period (Net of deferred taxes of $391 and $403 respectively) | 551 | (569 | ) | |||
| Reclassification adjustment for gains included in net income (Net of taxes of $179 and $0, respectively) | (252 | ) | --- | |||
| Comprehensive income, net of tax | $ | 15,236 | $ | 16,195 | ||
Page 4 of 10 (Form 10-Q)
WEIS MARKETS,
INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND
ANALYSIS
OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
OVERVIEW
Founded in 1912, Weis Markets, Inc. currently ranks among the top 50 food and drug retailers in the United States in terms of revenues generated. At the end of the first quarter of 2006, the company was operating 158 retail food stores in Pennsylvania and four surrounding states: Maryland, New Jersey, West Virginia and New York. Company revenues, income and cash flows are generated in the retail food stores from the sale of a wide variety of consumer products including groceries, dairy products, frozen foods, meats, seafood, fresh produce, floral, prescriptions, deli/bakery products, prepared foods, fuel, general merchandise, health and beauty care and household products. The company supports its retail operations through a centrally located distribution facility, transportation fleet, four manufacturing facilities and its administrative offices. The company also operates 31 SuperPetz pet supply stores.
The following analysis should be read in conjunction with the Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q, the 2005 Annual Report on Form 10-K, filed with the U. S. Securities and Exchange Commission, as well as the cautionary statement captioned "Forward-Looking Statements" immediately following this analysis.
OPERATING RESULTS
Total sales for the first quarter ended April 1, 2006 decreased .4% to $547.8 million compared to sales of $549.7 million in the same quarter of 2005. One year ago, the company's first quarter revenues included sales from the Easter holiday period, which falls in the second quarter this year. Management estimates the holiday sales impact was approximately $5 million, which if considered, sales would have increased .6% between the 2006 and 2005 periods.
The company's sales were also adversely affected by a very mild winter, particularly in Pennsylvania, where it operates 129 retail food stores. Comparable store sales in the first quarter decreased .9% compared to a 5.3% increase in 2005. Including the adjustment for Easter holiday sales, the comparable store sales would have been virtually unchanged.
Although the company experienced some product cost inflation, management does not feel it can accurately measure the full impact of product inflation and deflation on retail pricing due to changes in the types of merchandise sold between periods, shifts in customer buying patterns and the fluctuation of competitive factors.
Cost of sales consists of direct product costs (net of earned discounts and allowances), warehouse costs, transportation costs and manufacturing facility costs. In the past several years, many vendors have converted promotional incentives to reimbursements based upon sales movement data recorded at the point of sale rather than for cases purchased. Management expects this to be a continuing trend that will have no impact on the company's overall gross profit results.
Gross profit of $147.6 million at 26.9% of sales, increased $2.5 million or 1.7% versus the same quarter last year and the gross profit rate increased 0.5%. An improvement of $2.4 million in store inventory losses ("shrink") in the first quarter of 2006 compared to the same period in 2005 accounts for 0.4% of the 0.5% increase in gross profit rate for the quarter.
The company continues to implement operational initiatives to reduce shrink in its retail facilities and began installation of a new exception reporting and performance management application in the first quarter of 2006 to further improve its gross profit results.
The company continues to self distribute from its 1.1 million square foot distribution center located in Milton, Pennsylvania. As a result of a large capital investment into the distribution facility in 2004 and 2005, the company substantially improved safety conditions, order selection accuracy and associate productivity. In turn, these same improvements also contributed to higher gross profits at store level because of improved in-stock positions. The company continues to research new technology initiatives for its distribution center to further improve expense controls.
Diesel fuel costs increased 26.8% in the quarter compared to the same period in 2005. At this time, management is unaware of any other events or trends that may cause a material change to the overall financial operation due to shifts in product cost.
Page 5 of 10 (Form 10-Q)
WEIS MARKETS,
INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
(continued)
OPERATING RESULTS
(continued)
The first quarter operating, general and administrative expenses of $129.7 million at 23.7% of sales, increased $7.8 million or 6.4% compared to the same quarter in 2005. As a percentage of sales, operating expenses were 1.5% higher than the first quarter last year. The company experienced significant increases in labor costs, energy costs and credit/debit card interchange fees. Labor costs increased 4.4%, while the cost for utilities increased 9.3%.
Interchange fees for accepting credit/debit cards increased 18.1% in the quarter compared to the same period in 2005. The company is extremely concerned about the continuing rise in interchange fees for accepting credit/debit card transactions. This one line item expense increased 700.2% from 1995 to 2005 while customer utilization increased 560.6%. Since transaction volume is up and fraud is down, it is only logical that transaction costs should decrease. Consequently, the company is working with a wide variety of corporations and associations to reduce interchange rates, including legislation and regulation initiatives.
In the first quarter, the company's investment income totaled $1.3 million at 0.2% of sales, an increase of $846,000 or 182.7% compared to the same period a year ago. The company realized a long-term gain of $431,000 on the sale of equities from its investment portfolio during the first quarter of 2006. The remaining increase is the result of rising federal interest rates and the fact that the majority of the company's portfolio is in money market funds. The money market funds are classified on the Consolidated Balance Sheets as "Cash and Cash Equivalents."
The company's other income is primarily generated from net rental income, coupon-handling fees, store service commissions, cardboard salvage, gain or loss on the disposition of fixed assets and interest expense. Other income of $4.1 million at 0.8% of sales increased $906,000 or 28.2% compared to the same quarter last year.
The effective tax rate for the first quarter of 2006 and 2005 was 36.0% and 37.6%, respectively. The effective income tax rate differs from the federal statutory rate of 35% primarily due to the effect of state taxes.
For the three-month period ending April 1, 2006, net income of $14.9 million decreased 10.9% compared to the same period last year. Basic and diluted earnings per share of $.55 for the quarter decreased $.07 or 11.3% compared to 2005.
LIQUIDITY AND CAPITAL
RESOURCES
During the first quarter of 2006, the company generated $43.1 million in cash flows from operating activities compared to $46.8 million for the same period in 2005. Working capital decreased $3.4 million or 2.1% since the beginning of the year. Net cash provided by operating activities decreased $3.7 million compared to the same quarter last year. First quarter 2006 cash flows from operating activities benefited from a $2.3 million reimbursement for prepaid associate medical benefits because of contract changes.
Net cash used in investing activities in the first quarter of 2006 amounted to $20.6 million compared to the $8.2 million used in 2005. Capital expenditures for the quarter totaled $21.6 million compared to $8.4 million in 2005. The company estimated that its capital expenditure plans would require an investment of $90.6 million in 2006. This plan includes construction of new superstores, the expansion and remodeling of existing units, the acquisition of sites for future expansion, new technology purchases and the continued upgrade of company processing and distribution facilities.
Net cash used in financing activities during the first quarter of 2006 was $7.8 million compared to $7.6 million in 2005. In 2006, treasury stock purchases amounted to $162,000 in the quarter compared to no purchases in the first quarter last year. The Board of Directors' 2004 resolution authorizing the purchase of one million shares of treasury stock has a remaining balance of 888,374 shares.
Page 6 of 10 (Form 10-Q)
WEIS MARKETS,
INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
(continued)
LIQUIDITY AND CAPITAL RESOURCES
(continued)
Cash dividends of $7.8 million were paid to shareholders in the first quarter of 2006 versus $7.6 million a year ago. At its regular meeting held in April, the Board of Directors unanimously approved a quarterly dividend of $.29 per share, payable on May 12, 2006 to shareholders of record on April 28, 2006.
The company has no other commitment of capital resources as of April 1, 2006, other than the lease commitments on its store facilities under operating leases that expire at various dates through 2026. The company anticipates funding its working capital requirements and its $90.6 million capital expansion program through internally generated cash flows from operations.
Critical Accounting
Policies
The company has chosen accounting policies
that it believes are appropriate to accurately and fairly
report its operating results and financial position, and the
company applies those accounting policies in a consistent
manner. The Significant Accounting Policies are summarized in
Note 1 to the Consolidated Financial Statements
included in the 2005
Annual Report on Form 10-K.
There have been no changes to the Critical Accounting
Policies since the company filed its Annual Report on
Form 10-K for the year ended December 31, 2005.
FORWARD-LOOKING STATEMENTS
In addition to historical information, this
10-Q Report may contain forward-looking statements. 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: general economic
conditions, including their impact on capital expenditures;
business conditions in the retail industry; the regulatory
environment; rapidly changing technology and competitive
factors, including increased competition with regional and
national retailers; and price pressures. 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.
Page 7 of 10 (Form 10-Q)
WEIS MARKETS,
INC.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Quantitative Disclosure - There have been no material changes in the company's market risk during the three months ended April 1, 2006. Quantitative information is set forth in Item 7a on the company's annual report on Form 10-K under the caption "Quantitative Disclosures About Market Risk," which was filed for the fiscal year ended December 31, 2005 and is incorporated herein by reference.
Qualitative Disclosure - This information is
set forth in Item 7a of the company's annual report on Form
10-K under the caption "Liquidity and Capital Resources,"
within "Management's Discussion and Analysis of Financial
Condition and Results of Operations," which was filed for the
fiscal year ended December 31, 2005 and is incorporated herein
by reference.
ITEM 4. CONTROLS AND PROCEDURES
The Chief Executive Officer and the Chief
Financial Officer of the company (its principal executive
officer and principal financial officer, respectively) have
concluded, based on their evaluation as of a date within 90
days prior to the date of the filing of this Report, that the
company's disclosure controls and procedures are effective to
ensure that information required to be disclosed by the company
in the reports filed or submitted by it under the Securities
Exchange Act of 1934, as amended, is recorded, processed,
summarized and reported within the time periods specified in
the SEC's rules and forms, and include controls and procedures
designed to ensure that information required to be disclosed by
the company in such reports is accumulated and communicated to
the company's management, including the Chief Executive Officer
and Chief Financial Officer, as appropriate to allow timely
decisions regarding required disclosure.
There were no significant changes in the company's internal controls or in other factors that could significantly affect these controls subsequent to the date of such evaluation.
Page 8 of 10 (Form 10-Q)
WEIS MARKETS,
INC.
PART II - OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
(a) The Annual Meeting of the Shareholders of Weis Markets, Inc., was held on Tuesday, April 4, 2006, at 10:00 a.m., Eastern Daylight Time, at the principal office of the Company, 1000 South Second Street, Sunbury, PA 17801.
(b) Proxies for the meeting were solicited pursuant to Regulation 14 under the Act, there was no solicitation in opposition to the management's nominees as listed in the proxy statement, and all such nominees were elected.
(c) The meeting was held for the following purposes:
1. To elect seven directors to serve, subject to provisions of the by-laws, until the next Annual Meeting of Shareholders or until their respective successors have qualified.
2. To approve the appointment of the independent registered public accounting firm for the current fiscal year.
3. To act upon such other business as may properly come before such meeting, or any adjournments or postponements thereof.
The official ballot from the meeting, submitted to the Secretary by the Judge of Elections, disclosed the following tabulation of votes:
| Proposal #1 | For | Withhold | |
| Robert F. Weis | 23,684,379 | 2,420,844 | |
| Jonathan H. Weis | 23,150,196 | 2,955,028 | |
| Norman S. Rich | 24,204,813 | 1,900,410 | |
| William R. Mills | 23,563,719 | 2,541,504 | |
| Michael M. Apfelbaum | 25,432,582 | 672,642 | |
| Richard E. Shulman | 25,664,220 | 441,003 | |
| Steven C. Smith | 25,734,516 | 370,707 | |
| Proposal #2 | For | Against | Abstain |
| Proposal to approve the appointment of Grant Thornton LLP, as the independent registered public accounting firm of the Corporation. | 26,066,382 | 9,916 | 28,923 |
Page 9 of 10 (Form 10-Q)
WEIS MARKETS, INC.
Exhibits
Exhibit 31.1
Rule 13a-14(a) Certification - CEO
Exhibit 31.2
Rule 13a-14(a) Certification - CFO
Exhibit 32
Certification Pursuant to 18 U.S.C. Section 1350
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.
| WEIS MARKETS, INC. | |||
| (Registrant) | |||
| Date 5/11/2006 | /S/Norman S. Rich | ||
| Norman S. Rich | |||
| President / Chief Executive Officer | |||
| Date 5/11/2006 | /S/William R. Mills | ||
| William R. Mills | |||
| Senior Vice President and Treasurer / | |||
| Chief Financial Officer / Chief Accounting Officer | |||
Page 10 of 10 (Form 10-Q)
WEIS MARKETS,
INC.
CERTIFICATION- CHIEF EXECUTIVE OFFICER
Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
I, Norman S. Rich, President/CEO of Weis
Markets, Inc., certify that:
1. I have reviewed this quarterly
report on Form 10-Q of Weis Markets, Inc.;
2. Based on my knowledge, this
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 periods covered by this
quarterly report;
3. Based on my knowledge, the
financial statements, and other financial information included
in this 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 report;
|
4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | ||
| a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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 report is being prepared; | ||
| b) | designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the reparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
| c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
| d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | ||
| 5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): | ||
| a) | all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | ||
| b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. | ||
Date: May 11, 2006
/S/ Norman S. Rich
Norman
S. Rich
President/CEO
WEIS MARKETS,
INC.
CERTIFICATION- CHIEF FINANCIAL OFFICER
Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
I, William R. Mills, Senior Vice President
and Treasurer/CFO of Weis Markets, Inc., certify
that:
1. I have reviewed this quarterly
report on Form 10-Q of Weis Markets, Inc.;
2. Based on my knowledge, this
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 periods covered by this
quarterly report;
3. Based on my knowledge, the
financial statements, and other financial information included
in this 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 report;
|
4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | ||
| a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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 report is being prepared; | ||
| b) | designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the reparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
| c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
| d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | ||
| 5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): | ||
| a) | all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | ||
| b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. | ||
Date: May 11, 2006
/S/ William R. Mills
William
R. Mills
Senior
Vice President
and
Treasurer/CFO
WEIS MARKETS, INC.
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 Weis Markets, Inc. (the "company") on Form 10-Q for the quarter ending April 1, 2006, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), We, Norman S. Rich, President / Chief Executive Officer, and William R. Mills, Senior Vice President and Treasurer / Chief Financial Officer, of the company, certify, pursuant to and for purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1) to my knowledge 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/ Norman S. Rich
Norman S. Rich
President / CEO
5/11/2006
/S/ William R. Mills
William R. Mills
Senior Vice President and Treasurer / CFO
5/11/2006
The foregoing certification is being
furnished solely pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the
United States Code) and is not being filed as part of the
report or as a separate disclosure document.
A signed original of this written statement required by Section 906 has been provided to Weis Markets, Inc. and will be retained by Weis Markets, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.