Ingles Markets, Incorporated (NASDAQ: IMKTA) today reported higher
grocery sales for the three months ended December 26, 2015 compared with
the three months ended December 27, 2014. Grocery sales (excluding
gasoline sales) rose 2.6% over the comparative quarters. Net income
totaled $13.0 million for the quarter ended December 26, 2015 compared
with $15.0 million for the quarter ended December 27, 2014.
Gasoline gross profit was substantially higher during last year’s first
fiscal quarter compared with this year’s first fiscal quarter.
Personnel-related costs were also higher.
Robert P. Ingle II, Chief Executive Officer, stated, “We are very
pleased with the continued growth in our grocery sales and will continue
to provide value to our customers both inside the store and at our fuel
locations.”
First Quarter Results
Net sales totaled $951.1 million for the quarter ended December 26,
2015, compared with $964.5 million for the quarter ending December 27,
2014, a decrease of $13.4 million. Gasoline gallons sold increased, but
gasoline dollar sales were $29.4 million lower comparing the December
2015 quarter with the December 2014 quarter, as the average per gallon
sales price decreased by approximately 29%. Comparable store sales,
excluding gasoline, increased 2.3%. The number of customer transactions
(excluding gasoline) increased slightly, while the comparable average
transaction size (excluding gasoline) increased 1.7% compared with the
same quarter last year.
Gross profit for the December 2015 quarter rose to $225.6 million, or
23.7% of sales. Grocery gross margin (excluding gasoline) decreased
three basis points comparing the December 2015 quarter with the December
2014 quarter. Gross profit for the December 2014 quarter was $224.4
million, or 23.3% of sales.
Operating and administrative expenses for the December 2015 quarter
totaled $194.1 million, compared with $187.0 million for the December
2014 quarter. Increased personnel and insurance costs accounted for much
of the increase, as well as higher maintenance and promotional costs.
Interest expense totaled $12.0 million for each three-month period ended
December 26, 2015 and December 27, 2014. Total debt at the end of
December 2015 was $924.8 million compared with $960.1 million at the end
of December 2014.
Basic and diluted earnings per share for Class A Common Stock were $0.66
and $0.64, respectively, for the quarter ended December 26, 2015,
compared with $0.77 and $0.74 per share, respectively, for the quarter
ended December 27, 2014. Basic and diluted earnings per share for Class
B Common Stock were each $0.60 for the quarter ended December 26, 2015,
compared with $0.70 per basic and diluted Class B share for the quarter
ended December 27, 2014.
Capital expenditures totaled $40.6 million for the December 2015
quarter, compared with $27.6 million for the December 2014 quarter. The
increase is primarily attributable to sites purchased for future store
development. During the twelve months ended December 2015, the Company
opened one new store, and closed two stores that are currently being
rebuilt. Total fiscal 2016 capital expenditures are expected to be
between $100 million and $140 million.
The Company currently has lines of credit totaling $175.0 million, of
which $124.0 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 2015 Form 10-K.
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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Quarter Ended
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December 26,
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December 27,
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2015
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2014
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Net sales
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$
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951,114
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$
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964,497
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Gross profit
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|
|
|
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225,639
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|
|
|
|
|
224,393
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Operating and administrative expenses
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|
|
|
|
194,072
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|
|
|
|
|
186,979
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Gain from sale or disposal of assets
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|
|
|
|
64
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|
|
|
|
|
118
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Income from operations
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|
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31,631
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|
|
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|
37,532
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Other income, net
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|
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|
|
605
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|
|
|
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|
563
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Interest expense
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11,977
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|
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|
|
12,023
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Income taxes
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7,280
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|
|
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|
|
11,033
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Net income
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$
|
12,979
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|
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$
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15,039
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Basic earnings per common share – Class A
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$
|
0.66
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$
|
0.77
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Diluted earnings per common share – Class A
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|
|
|
$
|
0.64
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|
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|
|
$
|
0.74
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Basic earnings per common share – Class B
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$
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0.60
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|
|
|
|
$
|
0.70
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Diluted earnings per common share – Class B
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|
$
|
0.60
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$
|
0.70
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Additional selected information:
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Depreciation and amortization expense
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|
$
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25,977
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|
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$
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25,299
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Rent expense
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|
|
$
|
3,353
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|
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|
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$
|
3,327
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|
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|
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Condensed Consolidated Balance Sheets (Unaudited)
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December 26,
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September 26,
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2015
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2015
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ASSETS
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Cash and cash equivalents
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$
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8,549
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$
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7,505
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Receivables-net
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80,613
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|
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66,283
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Inventories
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|
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341,276
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|
|
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338,644
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Other current assets
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|
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11,121
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|
|
|
|
|
11,313
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Property and equipment-net
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|
|
|
|
1,226,719
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|
|
|
|
|
1,211,458
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Other assets
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|
|
|
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19,731
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|
|
|
|
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19,624
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TOTAL ASSETS
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|
$
|
1,688,009
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|
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|
$
|
1,654,828
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|
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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|
|
|
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|
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Current portion of long-term debt
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|
|
|
$
|
11,238
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|
|
|
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$
|
11,368
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Accounts payable, accrued expenses and current portion of other
long-term liabilities
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|
|
|
|
220,619
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|
|
|
|
|
240,592
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Deferred income taxes
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|
|
|
|
68,869
|
|
|
|
|
|
64,643
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Long-term debt
|
|
|
|
|
913,513
|
|
|
|
|
|
874,686
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Other long-term liabilities
|
|
|
|
|
35,060
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|
|
|
|
|
34,561
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Total Liabilities
|
|
|
|
|
1,249,299
|
|
|
|
|
|
1,225,850
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Stockholders’ equity
|
|
|
|
|
438,710
|
|
|
|
|
|
428,978
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
$
|
1,688,009
|
|
|
|
|
$
|
1,654,828
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|
|
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View source version on businesswire.com: http://www.businesswire.com/news/home/20160208005094/en/
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