Interest expense totaled $47.3 million for the nine-month period ended June 29, 2013, an increase of $2.4 million from $44.9 million for the nine-month period ended June 23, 2012. Beginning with the opening of the new distribution facility in June 2012, interest on the bonds that financed the construction was no longer capitalized as a cost of constructing the facility.
Income tax expense as a percentage of pre-tax income was 10.0% for the June 2013 nine- month period compared with 35.5% for the comparable June 2012 period. The previously mentioned debt extinguishment costs resulted in 2013 tax credits offsetting a greater portion of fiscal 2013 income, resulting in a lower fiscal 2013 effective tax rate.
Net income totaled $5.2 million for the nine-month period ended June 29, 2013, compared with $30.2 million, or 1.1% of sales, for the nine-month period ended June 23, 2012. Excluding fiscal 2013’s $43.1 million of debt extinguishment costs, income before income taxes rose to $48.9 million compared with $46.8 million in the first nine months of fiscal 2012.
Basic and diluted earnings per share for publicly traded Class A Common Stock were $0.23 and $0.21 for the June 2013 nine-month period compared with $1.29 and $1.24, respectively, for the June 2012 nine-month period. Basic and diluted earnings per share for Class B Common Stock were each $0.21 for the fiscal June 2013 period compared with $1.18 of basic and diluted earnings per share for the same period of last fiscal year.Capital expenditures totaled $76.8 million for the nine-month period ended June 29, 2013. Most of these capital expenditures were related to smaller-scale remodeling projects in a number of the Company’s stores and the construction of a new store that opened in April 2013. Capital expenditures are expected to be approximately $100 million to $130 million for the full fiscal year. In conjunction with the senior notes issued in June 2013, the Company extended the maturity of its $175 million of committed line of credit facilities, and extended the maturity of the $99.7 million of bonds used to construct the distribution facility that opened in 2012. Following the close of these financing transactions, the $175 million line of credit matures in June 2018, the $99.7 million of warehouse bond financing is committed to June 2021, and the senior notes mature in June 2023. Interest rates and certain other terms on all of these instruments are more favorable than the instruments they replaced. The Company believes, based on its current results of operations and financial condition, that its financial resources, including existing bank lines of credit, short- and long-term financing expected to be available to it and internally generated funds, will be sufficient to meet planned capital expenditures and working capital requirements for the foreseeable future, including any debt service requirements of additional borrowings.