Net rental income, gains/losses on asset disposals and other income totaled $5.6 million for fiscal 2012, compared with $8.7 million for fiscal 2011. The decrease is attributable to a $2.8 million gain on property sold in an eminent domain proceeding during fiscal 2011.
Interest expense totaled $60.0 million for the year ended September 29, 2012, compared with $62.0 million for the year ended September 24, 2011. Interest expense decreased due to the net reduction of total debt and the refinancing of existing debt at lower rates. Interest on the $99.7 million of bonds issued in December 2010 was capitalized as part of the construction cost of the Company’s new distribution and warehouse facility, until the facility opened during the third quarter of fiscal 2012.
The Company’s effective tax rate decreased to 35.5% for fiscal 2012, compared with 35.7% for fiscal 2011 due to additional federal tax credits available in the first part of fiscal 2012.
Net income for fiscal 2012 rose 11.2% to $43.4 million, compared with net income of $39.1 million for fiscal 2011. Basic and diluted earnings per share for the Company’s publicly traded Class A common stock increased to $1.87 and $1.79 per share, respectively, for the year ended September 29, 2012, compared with $1.67 and $1.60 per share, respectively, for the year ended September 24, 2011.Capital expenditures totaled $180.6 million and $97.5 million for fiscal 2012 and 2011, respectively. The largest capital expenditure in fiscal 2012 was for the completion of the new distribution facility, including expenditures for related vehicles and equipment. The Company has a line of credit facility totaling $175.0 million of which there was $40.1 million outstanding at September 29, 2012. The Company is in compliance with all of its debt agreements and has significant unencumbered assets at September 29, 2012. 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 2012 Form 10-K and 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 203 supermarkets. In conjunction with its supermarket operations, the Company also operates 69 neighborhood shopping centers, all but 12 of which contain an Ingles supermarket. 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 about the Company, visit Ingles’ website at www.ingles-markets.com.
INGLES MARKETS, INCORPORATED
|(Amounts in thousands except per share data)|
|Quarter Ended||Year Ended|
|Sept. 29,||Sept. 24,||Sept. 29,||Sept. 24,|
|Operating and administrative expenses||185,232||172,303||698,408||677,889|
|Rental income, net||133||411||1,444||1,854|
|(Loss)/gain from sale or disposal of assets||(10||)||(1||)||670||2,676|
|Income from operations||34,915||30,527||123,847||118,517|
|Other income, net||831||1,014||3,527||4,160|
|Basic earnings per common share – Class A||$||0.58||$||0.47||$||1.87||$||1.67|
|Basic earnings per common share – Class B||$||0.52||$||0.43||$||1.70||$||1.52|
|Diluted earnings per common share – Class A||$||0.55||$||0.45||$||1.79||$||1.60|
|Diluted earnings per common share – Class B||$||0.52||$||0.43||$||1.70||$||1.52|
|Additional selected information:|
|Depreciation and amortization expense||$||23,656||$||21,596||$||90,531||$||85,408|
|Condensed Consolidated Balance Sheets|
|Sept. 29,||Sept. 24,|
|Cash and cash equivalents||$||4,683||$||12,421|
|Other current assets||30,386||16,936|
|Property and equipment-net||1,197,138||1,133,204|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Current maturities of long-term debt||$||49,928||$||34,376|
Accounts payable, accrued expenses and current portion of other long-term liabilities
|Deferred income taxes||84,120||67,939|
|Other long-term liabilities||9,183||7,225|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY