Whole Foods Market Inc. (WFMI, Financial) filed Quarterly Report for the period ended 2010-07-04.
Whole Foods Market Inc. has a market cap of $6.24 billion; its shares were traded at around $36.41 with a P/E ratio of 28.4 and P/S ratio of 0.8. Whole Foods Market Inc. had an annual average earning growth of 7.9% over the past 10 years.WFMI is in the portfolios of John Hussman of Hussman Economtrics Advisors, Inc., Ron Baron of Baron Funds, Jim Simons of Renaissance Technologies LLC, Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors, Chris Davis of Davis Selected Advisers.
General and administrative expenses as a percentage of sales for the twelve and forty weeks ended July 4, 2010 were approximately 3.2% and 3.0%, respectively, compared to approximately 2.8% and 3.1% for the same periods of the prior fiscal year, respectively. FTC-related legal costs incurred during the twelve and forty weeks ended July 4, 2010 totaled approximately $1.4 million and $3.0 million, respectively, compared to approximately $0.4 million and $14.2 million for the same periods of the prior fiscal year, respectively.
Relocation, store closure and lease termination costs as a percentage of sales for the twelve and forty weeks ended July 4, 2010 were approximately 0.0% and 0.2%, respectively, compared to approximately 1.0% and 0.5% for the same periods of the prior fiscal year, respectively. During the twelve weeks ended July 4, 2010, the Company recorded credit adjustments to reduce expected future lease termination costs totaling approximately $0.8 million due to lower estimated future lease-related costs on certain properties. During the forty weeks ended July 4, 2010, the Company recorded net adjustments to lease termination costs totaling approximately $7.6 million. Adjustments totaling approximately $9.7 million and $13.5 million were recorded for the twelve and forty weeks ended July 5, 2009, respectively, to increase reserves for closed properties due to the downturn in the real estate market and actual exit costs. During the forty weeks ended July 4, 2010 the Company recognized a gain of approximately $3.2 million from the sale of a non-operating property and a reduction in store closure reserve liabilities of approximately $2.5 million related to two stores to be sold under the FTC settlement and one early lease termination. During the twelve and forty weeks ended July 5, 2009, the Company recorded non-cash asset impairment charges included in store closure costs totaling approximately $6.7 million and $7.4 million, respectively, including approximately $5.2 million during the third quarter related to the potential sale of certain operating store assets under the FTC settlement agreement. The Company continues to evaluate store closure reserve adjustments primarily related to changes in certain subtenant income estimates driven by the outlook for the commercial real estate market.
Interest expense for the twelve and forty weeks ended July 4, 2010 totaled approximately $7.4 million and $25.8 million, respectively, compared to approximately $7.7 million and $29.0 million for the same periods of the prior fiscal year, respectively. The decrease in interest expense for the forty weeks ended July 4, 2010 compared to the same period of the prior year is due primarily to interest expense related to amounts outstanding on the Companys revolving line of credit during the first quarter of fiscal year 2009 as well as the repayment of the $210 million portion of the Companys $700 million term loan during the twelve weeks ended July 4, 2010. The Company had no amounts outstanding on its revolving line of credit during the forty weeks ended July 4, 2010.
Investment and other income, which includes investment gains and losses, interest income, rental income and other income, totaled approximately $1.5 million and $5.2 million for the twelve and forty weeks ended July 4, 2010, respectively, compared to approximately $1.3 million and $2.5 million for the same periods of the prior fiscal year, respectively. The increases were due primarily to investment income earned on investments in available-for-sale securities during fiscal year 2010.
Net cash used in investing activities totaled approximately $583.2 million for the forty weeks ended July 4, 2010 compared to approximately $323.4 million for the same period of the prior fiscal year. Approximately $352.1 million of the use in cash for the forty weeks ended July 4, 2010 resulted from our investment of a portion of our available cash balances in available-for-sale securities. At July 4, 2010 we had short-term investments in available-for-sale securities totaling approximately $294.9 million and long-term investments in available-for-sale securities totaling approximately $57.4 million. Our principal historical capital requirements have been the funding of the development or acquisition of new stores and acquisition of property and equipment for existing stores. The required cash investment for new stores varies depending on the size of the new store, geographic location, degree of work performed by the landlord and complexity of site development issues. Capital expenditures for the forty weeks ended July 4, 2010 totaled approximately $199.8 million, of which approximately $143.4 million was for new store development and approximately $56.4 million was for remodels and other additions. Capital expenditures for the forty weeks ended July 5, 2009 totaled approximately $252.1 million, of which approximately $196.9 million was for new store development and approximately $55.2 million was for remodels and other additions. During the third quarter of fiscal year 2010, the Company acquired two stores in Chattanooga, TN and Asheville, NC for a net purchase price totaling approximately $14.4 million.
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Whole Foods Market Inc. has a market cap of $6.24 billion; its shares were traded at around $36.41 with a P/E ratio of 28.4 and P/S ratio of 0.8. Whole Foods Market Inc. had an annual average earning growth of 7.9% over the past 10 years.WFMI is in the portfolios of John Hussman of Hussman Economtrics Advisors, Inc., Ron Baron of Baron Funds, Jim Simons of Renaissance Technologies LLC, Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors, Chris Davis of Davis Selected Advisers.
Highlight of Business Operations:
The Companys gross profit as a percentage of sales for the twelve and forty weeks ended July 4, 2010 was approximately 35.1% and 34.9%, respectively, compared to approximately 35.2% and 34.3% for the same periods of the prior fiscal year, respectively. For the twelve and forty weeks ended July 4, 2010, the Company recognized LIFO credits totaling approximately $3.7 million and $6.5 million, respectively, compared to credits totaling approximately $5.8 million and $2.2 million for the same periods of the prior fiscal year, respectively. Excluding the impact of LIFO, gross margin increased 13 basis points for the twelve weeks ended July 4, 2010 compared to the same period of the prior fiscal year due to anGeneral and administrative expenses as a percentage of sales for the twelve and forty weeks ended July 4, 2010 were approximately 3.2% and 3.0%, respectively, compared to approximately 2.8% and 3.1% for the same periods of the prior fiscal year, respectively. FTC-related legal costs incurred during the twelve and forty weeks ended July 4, 2010 totaled approximately $1.4 million and $3.0 million, respectively, compared to approximately $0.4 million and $14.2 million for the same periods of the prior fiscal year, respectively.
Relocation, store closure and lease termination costs as a percentage of sales for the twelve and forty weeks ended July 4, 2010 were approximately 0.0% and 0.2%, respectively, compared to approximately 1.0% and 0.5% for the same periods of the prior fiscal year, respectively. During the twelve weeks ended July 4, 2010, the Company recorded credit adjustments to reduce expected future lease termination costs totaling approximately $0.8 million due to lower estimated future lease-related costs on certain properties. During the forty weeks ended July 4, 2010, the Company recorded net adjustments to lease termination costs totaling approximately $7.6 million. Adjustments totaling approximately $9.7 million and $13.5 million were recorded for the twelve and forty weeks ended July 5, 2009, respectively, to increase reserves for closed properties due to the downturn in the real estate market and actual exit costs. During the forty weeks ended July 4, 2010 the Company recognized a gain of approximately $3.2 million from the sale of a non-operating property and a reduction in store closure reserve liabilities of approximately $2.5 million related to two stores to be sold under the FTC settlement and one early lease termination. During the twelve and forty weeks ended July 5, 2009, the Company recorded non-cash asset impairment charges included in store closure costs totaling approximately $6.7 million and $7.4 million, respectively, including approximately $5.2 million during the third quarter related to the potential sale of certain operating store assets under the FTC settlement agreement. The Company continues to evaluate store closure reserve adjustments primarily related to changes in certain subtenant income estimates driven by the outlook for the commercial real estate market.
Interest expense for the twelve and forty weeks ended July 4, 2010 totaled approximately $7.4 million and $25.8 million, respectively, compared to approximately $7.7 million and $29.0 million for the same periods of the prior fiscal year, respectively. The decrease in interest expense for the forty weeks ended July 4, 2010 compared to the same period of the prior year is due primarily to interest expense related to amounts outstanding on the Companys revolving line of credit during the first quarter of fiscal year 2009 as well as the repayment of the $210 million portion of the Companys $700 million term loan during the twelve weeks ended July 4, 2010. The Company had no amounts outstanding on its revolving line of credit during the forty weeks ended July 4, 2010.
Investment and other income, which includes investment gains and losses, interest income, rental income and other income, totaled approximately $1.5 million and $5.2 million for the twelve and forty weeks ended July 4, 2010, respectively, compared to approximately $1.3 million and $2.5 million for the same periods of the prior fiscal year, respectively. The increases were due primarily to investment income earned on investments in available-for-sale securities during fiscal year 2010.
Net cash used in investing activities totaled approximately $583.2 million for the forty weeks ended July 4, 2010 compared to approximately $323.4 million for the same period of the prior fiscal year. Approximately $352.1 million of the use in cash for the forty weeks ended July 4, 2010 resulted from our investment of a portion of our available cash balances in available-for-sale securities. At July 4, 2010 we had short-term investments in available-for-sale securities totaling approximately $294.9 million and long-term investments in available-for-sale securities totaling approximately $57.4 million. Our principal historical capital requirements have been the funding of the development or acquisition of new stores and acquisition of property and equipment for existing stores. The required cash investment for new stores varies depending on the size of the new store, geographic location, degree of work performed by the landlord and complexity of site development issues. Capital expenditures for the forty weeks ended July 4, 2010 totaled approximately $199.8 million, of which approximately $143.4 million was for new store development and approximately $56.4 million was for remodels and other additions. Capital expenditures for the forty weeks ended July 5, 2009 totaled approximately $252.1 million, of which approximately $196.9 million was for new store development and approximately $55.2 million was for remodels and other additions. During the third quarter of fiscal year 2010, the Company acquired two stores in Chattanooga, TN and Asheville, NC for a net purchase price totaling approximately $14.4 million.
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