Ingles Markets, Incorporated (NASDAQ: IMKTA) today reported sales and
net income for the three and nine months ended June 27, 2015. Net income
totaled $13.8 million for the quarter ended June 27, 2015 and for the
same quarter of last year. For the nine months ended June 27, 2015 net
income rose 27.5% and totaled $43.1 million. Third quarter fiscal 2015
sales (excluding gasoline sales) increased 1.0% and comparable store
sales (excluding gasoline) increased 1.6%. Per gallon gasoline prices
were significantly lower in fiscal 2015 compared with the same periods
of last year, resulting in lower total sales. Comparing the three and
nine month periods of fiscal 2015 with the same periods of fiscal 2014,
gasoline gallons sold increased while the average price per gallon
decreased 31% and 27%, respectively.
Robert P. Ingle II, Chief Executive Officer, stated, “Our store sales
continue to grow, helped by continuous improvement to our in-store
experience.”
Third Quarter Results
Third quarter fiscal 2015 sales (excluding gas) increased 1.0% to $817.4
million, an increase of $8.0 million from last year’s non-gas third
quarter sales. Comparable store sales (excluding gasoline) increased
1.6%. Gasoline gallons sold, customer transactions and average
transaction size (excluding gasoline), all increased.
Gross profit for the June 2015 quarter increased 3.3% to $222.2 million,
compared with $215.2 million for the third quarter of last fiscal year.
Gross profit, as a percentage of sales, rose to 23.5% for the June 2015
quarter compared with 22.0% for the June 2014 quarter. Gasoline gross
profit was lower for the current fiscal quarter compared with the same
quarter of last year.
Operating and administrative expenses for the June 2015 quarter totaled
$190.7 million, an increase of $8.0 million, or 4.4%, over the June 2014
quarter. The dollar growth in operating expenses was primarily in
payroll and self-insurance claims.
Interest expense decreased $1.0 million to $10.6 million for the
three-month period ended June 27, 2015. Total debt at the end of June
2015 was $918.2 million compared with $909.3 million at the end of June
2014.
Net income totaled $13.8 million for each of the three-month periods
ended June 27, 2015 and June 28, 2014. Net income, as a percentage of
sales, increased to 1.5% for the quarter ended June 27, 2015, compared
with 1.4% for the quarter ended June 28, 2014. Basic and diluted
earnings per share for Class A Common Stock were $0.70 and $0.68,
respectively, for the quarter ended June 27, 2015, compared with $0.63
and $0.61, respectively, for the quarter ended June 28, 2014. Basic and
diluted earnings per share for Class B Common Stock were each $0.63 for
the quarter ended June 27, 2015, compared with $0.57 of basic and
diluted earnings per share for the quarter ended June 28, 2014. The
growth in earnings per share benefited from a decrease in average shares
outstanding due to shares repurchased over the past year as part of the
Company’s now-concluded stock repurchase program.
Nine Month Results
Nine month fiscal 2015 sales (excluding gas) increased 1.7% to $2.46
billion, an increase of $40.3 million over last year’s nine month
non-gas sales. Comparable store sales (excluding gasoline) increased
1.7%. Gasoline gallons sold and the average non-gasoline transaction
size increased, while the number of customer visits decreased slightly.
Gross profit for the nine months ended June 27, 2015, totaled $665.2
million compared with $624.8 million for the first nine months of last
fiscal year. Gross profit, as a percentage of sales, rose to 23.5% for
the June 2015 nine-month period compared with 21.8% for the June 2014
nine-month period.
Operating and administrative expenses increased $24.7 million, or 4.6%,
to $563.3 million for the nine months ended June 27, 2015, from $538.6
million for the nine months ended June 28, 2014. As with the third
quarter’s results, expense increases occurred in payroll, higher
insurance costs, and other store base expenses.
Interest expense totaled $34.2 million for the nine-month period ended
June 27, 2015, compared with $35.0 million for the nine-month period
ended June 28, 2014. Total debt was reduced $19.1 million during the
first nine months of fiscal year 2015.
Net income totaled $43.1 million for the nine-month period ended June
27, 2015, compared with $33.8 million for the nine-month period ended
June 28, 2014. Net income, as a percentage of sales, was 1.5% for the
nine months ended June 27, 2015, compared with 1.2% for the nine months
ended June 28, 2014. Basic and diluted earnings per share for Class A
Common Stock were $2.19 and $2.13, respectively, for the nine months
ended June 27, 2015, compared with $1.54 and $1.49, respectively, for
the nine months ended June 28, 2014. Basic and diluted earnings per
share for Class B Common Stock were each $1.99 for the nine months ended
June 27, 2015, compared with $1.40 of basic and diluted earnings per
share for the nine months ended June 28, 2014.
Capital expenditures for the June 2015 nine-month period totaled $73.5
million, compared with $73.1 million for the June 2014 nine-month
period. Capital expenditures for the entire fiscal year are expected to
be approximately $100 million to $120 million, including a new store
expected to open just before the end of the fiscal year.
The Company currently has a line of credit totaling $175.0 million, of
which $142.7 million is currently available. The Company believes its
financial resources, including these lines of credit and other internal
and anticipated external sources of funds, will be sufficient to meet
planned capital expenditures, debt service and working capital
requirements for the foreseeable future.
The comments in this press release contain certain forward-looking
statements. Ingles undertakes no obligation to publicly release any
revisions to any forward-looking statements contained herein to reflect
events or circumstances occurring after the date hereof or to reflect
the occurrence of unanticipated events, except as required by law. Ingles’
actual results may differ materially from those projected in
forward-looking statements made by, or on behalf of, Ingles. Factors
that may affect results include changes in business and economic
conditions generally in Ingles’ operating area, pricing pressures,
increased competitive efforts by others in Ingles’ marketing areas and
the availability of financing for capital improvements. A more detailed
discussion of these factors may be found in reports filed by the Company
with the Securities and Exchange Commission including its 2014 Form 10-K
and 2015 Forms 10-Q.
Ingles Markets, Incorporated is a leading supermarket chain with
operations in six southeastern states. Headquartered in Asheville, North
Carolina, the Company operates 201 supermarkets. In conjunction with
its supermarket operations, the Company operates neighborhood shopping
centers, most of which contain an Ingles supermarket. The Company also
owns a fluid dairy facility that supplies Company supermarkets
and unaffiliated customers. The Company’s Class A Common Stock is traded
on The NASDAQ Stock Market’s Global Select Market under the symbol
IMKTA. For more information, visit Ingles’ website at www.ingles-markets.com.
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INGLES MARKETS, INCORPORATED
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(Amounts in thousands except per share data)
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Unaudited Financial Highlights
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Condensed Consolidated Statements of Income (Unaudited)
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|
|
|
|
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|
|
|
|
|
|
|
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Three Months Ended
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Nine Months Ended
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June 27,
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June 28,
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|
|
June 27,
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June 28,
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|
|
|
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2015
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|
|
2014
|
|
|
|
2015
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|
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2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net sales
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$
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945,974
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|
|
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$
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978,262
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|
|
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$
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2,825,806
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|
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$
|
2,871,147
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Gross profit
|
|
|
|
|
222,164
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|
|
|
|
215,151
|
|
|
|
|
665,248
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|
|
|
624,781
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Operating and administrative expenses
|
|
|
|
|
190,730
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|
|
|
|
182,719
|
|
|
|
|
563,287
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|
|
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538,551
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(Loss) gain from sale or disposal of assets
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(319
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)
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|
|
928
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|
|
|
|
320
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|
|
|
1,135
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Income from operations
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31,115
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|
|
|
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33,360
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|
|
|
|
102,281
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|
|
|
87,365
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Other income, net
|
|
|
|
|
523
|
|
|
|
|
671
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|
|
|
|
1,649
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|
|
|
2,249
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Interest expense
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|
|
|
|
10,583
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|
|
|
|
11,568
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|
|
|
|
34,184
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|
|
|
35,049
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Income tax expense
|
|
|
|
|
7,278
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|
|
|
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8,629
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|
|
|
|
26,629
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|
|
|
20,743
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Net income
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|
|
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$
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13,777
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|
|
|
$
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13,834
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|
|
|
$
|
43,117
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|
|
$
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33,822
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|
|
|
|
|
|
|
|
|
|
|
|
|
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Basic earnings per common share – Class A
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|
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$
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0.70
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|
|
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$
|
0.63
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|
|
|
$
|
2.19
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|
|
$
|
1.54
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Diluted earnings per common share – Class A
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|
|
|
$
|
0.68
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|
|
|
$
|
0.61
|
|
|
|
$
|
2.13
|
|
|
$
|
1.49
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Basic earnings per common share – Class B
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|
|
|
$
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0.63
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|
|
|
$
|
0.57
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|
|
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$
|
1.99
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|
|
$
|
1.40
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Diluted earnings per common share – Class B
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|
|
|
$
|
0.63
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|
|
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$
|
0.57
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|
|
|
$
|
1.99
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|
|
$
|
1.40
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|
|
|
|
|
|
|
|
|
|
|
|
|
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Additional selected information:
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|
|
|
|
|
|
|
|
|
|
|
|
|
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Depreciation and amortization expense
|
|
|
|
$
|
25,847
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|
|
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$
|
24,731
|
|
|
|
$
|
76,746
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|
|
$
|
72,845
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Rent expense
|
|
|
|
$
|
3,371
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|
|
|
$
|
3,495
|
|
|
|
$
|
10,314
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|
|
$
|
10,722
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Condensed Consolidated Balance Sheets (Unaudited)
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|
|
|
|
|
|
|
|
|
|
|
|
June 27,
|
|
|
September 27,
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|
|
|
|
2015
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|
|
2014
|
ASSETS
|
|
|
|
|
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Cash and cash equivalents
|
|
|
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$
|
8,643
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|
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$
|
8,614
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Receivables-net
|
|
|
|
|
68,363
|
|
|
|
60,991
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Inventories
|
|
|
|
|
334,921
|
|
|
|
329,524
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Other current assets
|
|
|
|
|
17,907
|
|
|
|
14,789
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Property and equipment-net
|
|
|
|
|
1,207,631
|
|
|
|
1,218,607
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Other assets
|
|
|
|
|
28,214
|
|
|
|
24,427
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TOTAL ASSETS
|
|
|
|
$
|
1,665,679
|
|
|
$
|
1,656,952
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|
|
|
|
|
|
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LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current maturities of long-term debt
|
|
|
|
$
|
13,983
|
|
|
$
|
12,488
|
Accounts payable, accrued expenses and current portion of other
long-term liabilities
|
|
|
|
|
223,406
|
|
|
|
238,260
|
Deferred income taxes
|
|
|
|
|
73,218
|
|
|
|
70,040
|
Long-term debt
|
|
|
|
|
904,186
|
|
|
|
924,772
|
Other long-term liabilities
|
|
|
|
|
34,898
|
|
|
|
28,790
|
Total Liabilities
|
|
|
|
|
1,249,691
|
|
|
|
1,274,350
|
Stockholders' equity
|
|
|
|
|
415,988
|
|
|
|
382,602
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
$
|
1,665,679
|
|
|
$
|
1,656,952
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View source version on businesswire.com: http://www.businesswire.com/news/home/20150803005272/en/
Copyright Business Wire 2015