This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Whole Foods Market Reports First Quarter Results

The Company will host a conference call today to discuss this earnings announcement at 4:00 p.m. CT.  The dial-in number is 1-800-894-5910, and the conference ID is "Whole Foods."  A simultaneous audio webcast will be available at www.wholefoodsmarket.com

Whole Foods Market, Inc.
Consolidated Statements of Operations (unaudited)
(In thousands, except per share amounts)
     
  Sixteen weeks ended
  January 16, 2011 January 17, 2010
Sales  $ 3,003,655  $ 2,639,158
Cost of goods sold and occupancy costs  1,965,416  1,732,942
Gross profit 1,038,239  906,216
Direct store expenses  790,383  702,806
Store contribution  247,856  203,410
General and administrative expenses  88,511  75,936
Operating income before pre-opening and store closure  159,345  127,474
Pre-opening expenses  8,640  12,809
Relocation, store closure and lease termination costs  3,146  12,412
Operating income  147,559  102,253
Interest expense  (2,333)  (10,553)
Investment and other income  2,652  1,783
Income before income taxes  147,878  93,483
Provision for income taxes  59,148  38,328
Net income  88,730  55,155
Preferred stock dividends  --  5,478
Income available to common shareholders  $ 88,730  $ 49,677
     
Basic earnings per share  $ 0.51  $ 0.32
Weighted average shares outstanding  172,795  154,413
     
Diluted earnings per share  $ 0.51  $ 0.32
Weighted average shares outstanding, diluted basis  174,482  154,858
     
Dividends declared per common share  $ 0.10  $ -- 
     
A reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations follows:  
     
  Sixteen weeks ended
  January 16, 2011 January 17, 2010
Income available to common shareholders    
(numerator for basic and diluted earnings per share)  $ 88,730  $ 49,677
Weighted average common shares outstanding    
(denominator for basic earnings per share)  172,795  154,413
Potential common shares outstanding:    
Incremental shares from assumed exercise of stock options  1,687  445
Weighted average common shares outstanding and     
potential additional common shares outstanding    
(denominator for diluted earnings per share)  174,482  154,858
     
Basic earnings per share  $ 0.51  $ 0.32
Diluted earnings per share  $ 0.51  $ 0.32
 
Whole Foods Market, Inc.
Consolidated Balance Sheets (unaudited)
January 16, 2011 and September 26, 2010
(In thousands)
     
Assets 2011 2010
Current assets:    
Cash and cash equivalents  $ 162,280  $ 131,996
Short-term investments - available-for-sale securities  421,577  329,738
Restricted cash  86,792  86,802
Accounts receivable  142,337  133,346
Merchandise inventories  341,939  323,487
Prepaid expenses and other current assets  44,353  54,686
Deferred income taxes  101,302  101,464
Total current assets  1,300,580  1,161,519
Property and equipment, net of accumulated depreciation and amortization  1,902,517  1,886,130
Long-term investments - available-for-sale securities  91,380  96,146
Goodwill  664,628  665,224
Intangible assets, net of accumulated amortization  68,562  69,064
Deferred income taxes  84,306  99,156
Other assets  9,051  9,301
Total assets  $ 4,121,024  $ 3,986,540
     
Liabilities And Shareholders' Equity
Current liabilities:    
Current installments of long-term debt and capital lease obligations  $ 426  $ 410
Accounts payable  211,718  213,212
Accrued payroll, bonus and other benefits due team members  257,209  244,427
Dividends payable  17,348  --
Other current liabilities  335,452  289,823
Total current liabilities  822,153  747,872
Long-term debt and capital lease obligations, less current installments  407,877  508,288
Deferred lease liabilities  305,665  294,291
Other long-term liabilities  70,744  62,831
Total liabilities  1,606,439  1,613,282
     
Shareholders' equity:    
Common stock, no par value, 300,000 shares authorized,    
173,565 and 172,033 shares issued and outstanding    
 in 2011 and 2010, respectively  1,841,603  1,773,897
Accumulated other comprehensive income  3,030  791
Retained earnings  669,952  598,570
Total shareholders' equity  2,514,585  2,373,258
Commitments and contingencies
Total liabilities and shareholders' equity  $ 4,121,024  $ 3,986,540
 
Whole Foods Market, Inc.
Consolidated Statements of Cash Flows (unaudited)
January 16, 2011 and January 17, 2010
(In thousands)
     
  Sixteen weeks ended
  January 16, 2011 January 17, 2010
Cash flows from operating activities    
Net income  $ 88,730  $ 55,155
Adjustments to reconcile net income to net cash provided    
by operating activities:    
Depreciation and amortization 86,691 83,701
Loss on disposition of fixed assets 548 529
Impairment of long-lived assets 559 1,730
Share-based payment expense 7,359 5,241
LIFO expense 2,000 195
Deferred income tax expense (benefit) 14,969 (1,584)
Excess tax benefit related to exercise of team member stock options (2,728) (81)
Deferred lease liabilities 9,470 10,717
Other (60) (3,100)
Net change in current assets and liabilities:    
Accounts receivable (5,956) (8,812)
Merchandise inventories (20,195) (12,547)
Prepaid expenses and other current assets 10,225 10,041
Accounts payable (1,902) (2,619)
Accrued payroll, bonus and other benefits due team members 12,637 20,351
Other current liabilities 42,401 (5,030)
Net change in other long-term liabilities 8,289 7,590
Net cash provided by operating activities 253,037 161,477
Cash flows from investing activities    
Development costs of new locations (45,613) (59,273)
Other property and equipment expenditures (45,436) (23,257)
Purchase of available-for-sale securities (497,560) (264,782)
Sale of available-for-sale securities 409,081 17,205
Decrease (increase) in restricted cash 10 (16,191)
Other investing activities (958) (475)
Net cash used in investing activities (180,476) (346,773)
Cash flows from financing activities    
Preferred stock dividends paid --  (8,500)
Issuance of common stock 53,764 3,962
Excess tax benefit related to exercise of team member stock options 2,728 81
Payments on long-term debt and capital lease obligations (100,000) -- 
Other financing activities 4 3
Net cash used in financing activities (43,504) (4,454)
Effect of exchange rate changes on cash and cash equivalents 1,227 1,032
Net change in cash and cash equivalents 30,284 (188,718)
Cash and cash equivalents at beginning of period 131,996 430,130
Cash and cash equivalents at end of period  $ 162,280  $ 241,412
 
Supplemental disclosure of cash flow information:    
Interest paid  $ 11,342  $ 19,375
Federal and state income taxes paid  $ 21,083  $ 41,483
Non-cash transaction:    
Conversion of redeemable preferred stock into common stock  $ --   $ 418,247
 
Whole Foods Market, Inc.
Non-GAAP Financial Measures (unaudited)
(In thousands)
     
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, the Company provides information regarding Earnings before interest, taxes, depreciation and amortization ("EBITDA"), Adjusted EBITDA and Free cash flow in the press release as additional information about its operating results. These measures are not in accordance with, or an alternative to, GAAP. The Company's management believes that these presentations provide useful information to management, analysts and investors regarding certain additional financial and business trends relating to its results of operations and financial condition. In addition, management uses these measures for reviewing the financial results of the Company as well as a component of incentive compensation. The Company defines Adjusted EBITDA as EBITDA plus non-cash asset impairment charges. The Company defines Free cash flow as net cash provided by operating activities less capital expenditures. 
     
The following is a tabular presentation of the non-GAAP financial measures, EBITDA and Adjusted EBITDA including a reconciliation to GAAP net income, which the Company believes to be the most directly comparable GAAP financial measure. 
     
  Sixteen weeks ended
EBITDA and Adjusted EBITDA January 16, 2011 January 17, 2010
Net income  $ 88,730  $ 55,155
Provision for income taxes  59,148  38,328
Interest expense, net  (319)  8,770
Operating income  147,559  102,253
Depreciation and amortization  86,691  83,701
Earnings before interest, taxes, depreciation & amortization (EBITDA)  234,250  185,954
Impairment of assets  559  1,730
Adjusted EBITDA  $ 234,809  $ 187,684
     
The following is a tabular reconciliation of the Free cash flow non-GAAP financial measure. 
     
  Sixteen weeks ended
Free cash flow January 16, 2011 January 17, 2010
Net cash provided by operating activities  $ 253,037  $ 161,477
Development costs of new locations  (45,613)  (59,273)
Other property and equipment expenditures  (45,436)  (23,257)
Free cash flow  $ 161,988  $ 78,947
CONTACT: Cindy McCann 
         VP of Investor Relations
         512.542.0204

company logo

5 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,851.43 -60.68 -0.36%
S&P 500 1,964.62 -5.33 -0.27%
NASDAQ 4,448.2830 +5.5850 0.13%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs