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Ingles Markets, Incorporated Reports 48th Year Of Record Sales, Plus Growth In Sales And Net Income For Fourth Quarter And Fiscal Year 2012

Stocks in this article: IMKTA

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)
 
Financial Highlights
(Unaudited)
 
Quarter Ended Year Ended
Sept. 29, Sept. 24, Sept. 29, Sept. 24,
2012 2011 2012 2011
 
Net sales $ 991,773 $ 905,819 $ 3,709,434 $ 3,559,921
Gross profit 220,024 202,420 820,140 791,876
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
Interest expense 15,176 15,053 60,027 61,966
Income taxes 7,294 5,526 23,903 21,651
Net income $ 13,276 $ 10,962 $ 43,444 $ 39,060
 
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
Rent expense $ 3,586 $ 3,598 $ 14,237 $ 15,016
 
   
Condensed Consolidated Balance Sheets
 
 
Sept. 29, Sept. 24,
2012 2011
ASSETS
Cash and cash equivalents $ 4,683 $ 12,421
Receivables-net 61,519 56,841
Inventories 329,615 303,166
Other current assets 30,386 16,936
Property and equipment-net 1,197,138 1,133,204
Restricted investments 75,731
Other assets   18,767   20,051
TOTAL ASSETS $ 1,642,109 $ 1,618,350
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

256,224 256,120
Deferred income taxes 84,120 67,939
Long-term debt 785,240 820,744
Other long-term liabilities   9,183   7,225
Total Liabilities 1,184,695 1,186,404
Stockholders' equity   457,414   431,946

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 1,642,109 $ 1,618,350
 




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