This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Ingles Markets, Incorporated Reports Increased Sales And Net Income For First Quarter Fiscal 2013

Stocks in this article: IMKTA

Income tax expense as a percentage of pre-tax income was 37.4% in the December 2012 quarter compared to 35.2% in the December 2011 quarter. The lower tax rate for the December 2011 quarter benefited from certain tax incentives related to hiring and investing during the recent economic downturn, but had expired for this year’s first fiscal quarter.

Net income for the December 2012 quarter increased 9.2% to $11.6 million compared with net income of $10.6 million for the December 2011 quarter. Basic and diluted earnings per share for the Company’s publicly traded Class A common stock were $0.50 and $0.48 per share, respectively, for the December 2012 quarter compared with $0.45 and $0.43 per share, respectively, for the December 2011 quarter.

Capital expenditures totaled $28.1 million for the three-month period ended December 29, 2012. Most of these capital expenditures were related to remodeling projects in a number of the Company’s stores and to new store construction. Capital expenditures totaled $63.7 million for the three-month period ended December 24, 2011. This unusually high amount included costs for construction of the new distribution facility.

Ingles’ capital expenditure plans for fiscal year 2013 include investments of approximately $100 million to $130 million. The majority of the Company’s fiscal 2013 capital expenditures will be dedicated to continued improvement of its store base.

During the December 2012 fiscal quarter the Company declared a special dividend of $0.66 per Class A and $0.60 per Class B share of common stock and accelerated the quarterly dividend of $0.165 per Class A and $0.15 per Class B share of common stock that normally would have been declared and paid during January 2013. These dividends were paid December 31, 2012. These actions were in response to tax increases on dividends that were enacted effective January 1, 2013.

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 Form 10-Q for the quarter ended December 29, 2012.

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, 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)
  Quarter Ended
December 29,   December 24,
  2012   2011
Net sales $ 932,791 $ 918,238
Gross profit 207,870 201,728
Operating and administrative expenses 174,846 171,809
Rental income, net 316 428
Gain from sale or disposal of assets 122 15
Income from operations 33,462 30,363
Other income, net 583 1,004
Interest expense 15,560 15,009
Income taxes 6,918 5,760
Net income $ 11,568 $ 10,597
 
Basic earnings per common share – Class A $ 0.50 $ 0.45
Diluted earnings per common share – Class A $ 0.48 $ 0.43
Basic earnings per common share – Class B $ 0.45 $ 0.41
Diluted earnings per common share – Class B $ 0.45 $ 0.41
 
Additional selected information:
Depreciation and amortization expense $ 23,623 $ 22,122
Rent expense $ 3,546 $ 3,384
 
Condensed Consolidated Balance Sheets (Unaudited)
 
December 29, September 29,
  2012   2012
ASSETS
Cash and cash equivalents $ 9,449 $ 4,683
Receivables-net 61,450 61,519
Inventories 345,421 329,615
Other current assets 29,143 30,387
Property and equipment-net 1,200,711 1,197,138
Other assets   15,303   18,767
TOTAL ASSETS $ 1,661,477 $ 1,642,109
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Current maturities of long-term debt $ 50,412 $ 49,928
Accounts payable, accrued expenses and current portion of other long-term liabilities 245,999 256,224
Deferred income taxes 82,789 84,120
Long-term debt 826,587 785,240
Other long-term liabilities   9,709   9,183
Total Liabilities 1,215,496 1,184,695
Stockholders' equity   445,981   457,414
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,661,477 $ 1,642,109




2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs