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.
INGLES MARKETS, INCORPORATED (Amounts in
thousands except per share data)
Unaudited
Financial Highlights Condensed Consolidated Statements of
Income (Unaudited)
Three Months Ended Nine Months Ended June 27,
June 28, June 27, June 28,
2015 2014
2015 2014 Net sales
$ 945,974 $ 978,262 $ 2,825,806 $ 2,871,147 Gross profit 222,164
215,151 665,248 624,781 Operating and administrative expenses
190,730 182,719 563,287 538,551 (Loss) gain from sale or disposal
of assets (319 ) 928 320 1,135 Income from operations 31,115 33,360
102,281 87,365 Other income, net 523 671 1,649 2,249 Interest
expense 10,583 11,568 34,184 35,049 Income tax expense 7,278 8,629
26,629 20,743 Net income $ 13,777 $ 13,834 $ 43,117 $ 33,822
Basic earnings per common share – Class A $ 0.70 $ 0.63 $ 2.19 $
1.54 Diluted earnings per common share – Class A $ 0.68 $ 0.61 $
2.13 $ 1.49 Basic earnings per common share – Class B $ 0.63 $ 0.57
$ 1.99 $ 1.40 Diluted earnings per common share – Class B $ 0.63 $
0.57 $ 1.99 $ 1.40 Additional selected information:
Depreciation and amortization expense $ 25,847 $ 24,731 $ 76,746 $
72,845 Rent expense $ 3,371 $ 3,495 $ 10,314 $ 10,722
Condensed Consolidated Balance Sheets (Unaudited)
June 27, September
27, 2015 2014 ASSETS
Cash and cash equivalents $ 8,643 $ 8,614 Receivables-net 68,363
60,991 Inventories 334,921 329,524 Other current assets 17,907
14,789 Property and equipment-net 1,207,631 1,218,607 Other assets
28,214 24,427 TOTAL ASSETS
$
1,665,679 $
1,656,952
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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version on businesswire.com: http://www.businesswire.com/news/home/20150803005272/en/
Ingles Markets, IncorporatedRon Freeman, 828-669-2941 (Ext.
223)Chief Financial Officer
Ingles Markets (NASDAQ:IMKTA)
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