Ingles Markets, Incorporated Announces Third Quarter Sales Increases and Earnings Results.ASHEVILLE Asheville (ăsh`vəl, –vĭl), city (1990 pop. 61,607), seat of Buncombe co., W N.C., on the French Broad and Swannanoa rivers and on a plateau in the Blue Ridge Mts.; inc. 1797. , N.C. -- Ingles This article is about an American supermarket chain. For a town in Gran Canaria, see Playa del Inglés. Ingles (NYSE: IMKTA) is a regional supermarket chain based in Asheville, North Carolina, where Robert "Bob" Ingle opened the first store in Asheville, NC in Markets, Incorporated (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :IMKTA) today reported sales increases for its third quarter and nine months ended June June: see month. 25, 2005, over the comparable 2004 periods. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the June 2005 quarter increased 5.4% over the June 2004 quarter to $566.7 million, while comparable store sales grew 5.5% for the same period. For the nine months ended June 25, 2005, net sales increased 5.7% over the 2004 period to $1.68 billion, while comparable store sales grew 5.6%. Sales grew in each of the Company's departments, with the largest percentage increases in perishables perishables npl → productos mpl perecederos perishables npl → denrées fpl périssables perishables perish npl , pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. and gasoline gasoline or petrol, light, volatile mixture of hydrocarbons for use in the internal-combustion engine and as an organic solvent, obtained primarily by fractional distillation and "cracking" of petroleum, but also obtained from natural gas, by . Easter Easter [A.S. Eastre, name of a spring goddess], chief Christian feast, commemorating the resurrection of Jesus after his crucifixion. In the West, Easter is celebrated on the Sunday following the full moon next after the vernal equinox (see calendar); thus, it sales occurred in the March quarter of fiscal 2005 but in the June quarter of fiscal 2004. The Company estimates that, excluding the effect of the Easter holiday, third quarter 2005 comparable store sales increased 6.2%, compared to the third quarter of 2004. Gross profit dollars for the three- and nine-month periods ended June 2005 increased $2.1 million and $15.5 million, respectively, compared to the same periods of fiscal 2004. Gross profit, as a percentage of sales, was 25.3% for the June 2005 quarter, compared to 26.2% for the same quarter last year. The effect of lower overall margins in the pharmacy and gasoline departments contributed to the change in gross profit as a percentage of sales. For the nine-month period, gross profit as a percentage of sales was 25.4% in 2005 compared to 25.8% in 2004. Excluding the effect of gasoline and pharmacy sales, retail grocery segment margins were higher for the nine-month 2005 period, compared to the same period of 2004. Operating and administrative expenses for the June 2005 quarter decreased as a percentage of sales to 21.6% compared to 21.9% in the June 2004 quarter. This marks the third consecutive quarter where operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. as a percentage of sales have declined compared to both the previous quarter and the equivalent quarter of the last fiscal year. Operating and administrative expenses for the June 2005 nine-month period decreased as a percentage of sales to 21.8% compared to 22.2% in the June 2004 nine-month period. Operating and administrative expenses declined as a percentage of sales due primarily to the increased sales volume. Net rental income Noun 1. rental income - income received from rental properties income - the financial gain (earned or unearned) accruing over a given period of time decreased $0.4 million for the June 2005 quarter and $1.0 million for the 2005 nine-month period from the comparable prior year periods due primarily to the sale of a shopping center shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into in September 2004 in which Ingles was not a tenant and the relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of other tenants from shopping centers to stand alone sites. Interest expense decreased $0.4 million and $2.1 million for the three- and nine-month periods ended June 2005, respectively, compared to the same periods ended June 2004 due to a reduction in total debt from $610.7 million at June 26, 2004, to $579.7 million at June 25, 2005. Net income for the June 2005 quarter totaled $6.6 million, or $0.27 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $8.3 million, or $0.35 per diluted share, for the June 2004 quarter. Net income for the nine months ended June 25, 2005, totaled $17.2 million, or $0.71 per diluted share, compared to $17.9 million, or $0.77 per diluted share, for the June 2004 nine-month period. Included in the June 2004 nine-month results were pre-tax gains of $5.7 million ($3.5 million net of income tax) on sales of real property. Robert P. Ingle in·gle n. 1. An open fire in a fireplace. 2. A fireplace. [Perhaps Scottish Gaelic aingeal, fire, light. , chief executive officer, stated, "We are pleased with our sales growth and our customer loyalty. With the planned addition of three stores in the fourth quarter we remain focused on our customer. We will continue to offer popular, high-quality products in convenient, modern stores." The comments in this press release contain certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Ingles undertakes no obligation to publicly release any revisions to any forward-looking statements contained herein to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or occurring after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" or to reflect the occurrence of unanticipated events. 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 2004 Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and 2005 Forms 10-Q. Ingles Markets, Incorporated is a leading supermarket chain with operations in six southeastern states. Headquartered in Asheville, North Carolina Not to be confused with Ashville. Asheville is a city in Buncombe County, North Carolina, and is its county seat. As of the 2000 census, the city had a total population of 68,889. It is the largest city in western North Carolina, and continues to grow. , the Company operates 195 supermarkets. In conjunction with its supermarket operations, the Company also operates 74 neighborhood shopping centers, all but 17 of which contain an Ingles supermarket. The Company's Class A Common Stock is traded on The NASDAQ Stock Market's National 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)
Unaudited Financial Highlights
Three Months Ended Nine Months Ended
---------------------- ----------------------
June 25, June 26, June 25, June 26,
2005 2004 2005 2004
---------- ---------- ---------- ----------
Net sales $566,656 $537,447 $1,683,198 $1,592,546
Gross profit 143,123 141,041 427,103 411,558
Operating and
administrative expenses 122,364 117,664 366,654 354,232
Rental income, net 1,838 2,182 4,389 5,419
Income from operations 22,597 25,559 64,838 62,745
Other income, net 638 1,004 1,323 6,525
Interest expense 12,592 13,037 38,550 40,619
Income taxes 4,017 5,237 10,448 10,713
Net income $6,626 $8,289 $17,163 $17,938
Basic earnings per
common share $0.27 $0.35 $0.71 $0.77
Diluted earnings per
common share $0.27 $0.35 $0.71 $0.77
Additional selected information:
Depreciation and
amortization expense $13,798 $14,013 $42,288 $42,336
Rent expense $6,403 $7,239 $20,581 $23,039
Condensed Consolidated Balance Sheets (Unaudited)
June 25, Sept. 25,
2005 2004
---------- ----------
ASSETS
Cash and cash equivalents $50,301 $80,594
Receivables-net 36,357 34,450
Inventories 200,506 189,432
Other current assets 9,983 9,063
Property and equipment-net 738,627 738,219
Other assets 14,942 11,929
---------- ----------
TOTAL ASSETS $1,050,716 $1,063,687
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current maturities of long-term debt $22,512 $33,827
Accounts payable-trade 108,501 88,725
Accrued expenses and current portion
of other long-term liabilities 56,031 66,189
Deferred income taxes 33,875 40,886
Long-term debt 557,199 568,608
Other long-term liabilities 2,962 4,235
---------- ----------
Total Liabilities 781,080 802,470
Stockholders' equity 269,636 261,217
---------- ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $1,050,716 $1,063,687
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