Net income for the September 2012 quarter rose to $13.3 million, compared with net income of $11.0 million for the September 2011 quarter. Basic and diluted earnings per share for the Company’s publicly traded Class A common stock increased to $0.58 and $0.55 per share, respectively, for the September 2012 quarter, compared with $0.47 and $0.45 per share, respectively, for the September 2011 quarter.
Net sales totaled a record $3.71 billion for the fiscal year ended September 2012, an increase of $149.5 million, or 4.2%, from $3.56 billion for the fiscal year ended September 2011. Fiscal year 2012 was Ingles’ 48
consecutive year of record sales. Comparing the 53 weeks of fiscal 2012 with the corresponding 53 calendar weeks of the previous year, grocery segment comparable store sales increased 1.9%, excluding gasoline sales where the retail per gallon price was approximately 5% higher. The number of customer transactions increased 1.5% and the average transaction size increased by $0.07, excluding gasoline sales.
Gross profit for the fiscal year ended September 29, 2012, increased $28.3 million, or 3.6%, to $820.1 million, or 22.1% of sales, compared with $791.9 million, or 22.2% of sales, for the fiscal year ended September 24, 2011.
The increase in grocery segment gross profit dollars was primarily due to the higher sales volume. Grocery segment gross profit as a percentage of total sales (excluding gasoline) was 25.9% and 25.8% for fiscal 2012 and 2011, respectively. The beneficial impact of a favorable change in sales mix and modest inflation was generally offset by competitive effects. The Company has responded to the current competitive environment by keeping prices as low as possible in order to grow sales and market share.
Operating expenses increased $20.5 million in fiscal 2012, compared with fiscal 2011, and were 18.8% of sales for fiscal 2012, compared with 19.0% of sales for fiscal 2011. Excluding gasoline sales and associated gasoline operating expenses (primarily payroll), operating expenses were 21.9% of sales for fiscal 2012, compared with 22.1% for fiscal 2011. As noted in the fourth quarter comments, payroll represented the largest cost increase, accounting for $15.2 million of the $20.5 million increase.