Ingles Markets, Incorporated Announces Third Quarter Sales and Earnings Increases.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 that net income increased 108.9% (from $6.6 million to $13.8 million) for the three months and 80.9% (from $17.2 million to $31.1 million) for the nine months ended June June: see month. 24, 2006, compared to the previous year. The earnings increases were largely driven by broad-based broad-based Of or relating to an index or average that provides a good representation of the overall market. The S&P 500 and NYSE Composite are generally regarded as broad-based stock indexes, while the popular Dow Jones Industrial Average is biased sales increases and cost efficiencies. 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 2006 quarter increased 16.3% over the June 2005 quarter to $659.2 million, while comparable grocery store sales grew 15.2% for the same period. For the nine months ended June 24, 2006, net sales increased 12.2% over the 2005 period to $1.89 billion, while comparable grocery store sales grew 11.0%. Excluding high-dollar, lower-margin 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 sales, comparable grocery store sales grew 10.2% for the quarter and 7.7% for the nine-month period. 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 June quarter of fiscal 2006 and the March quarter of fiscal 2005. Adjusted for the effect of Easter sales, the Company estimates that third quarter 2006 comparable grocery store sales increased 13.8%, compared to the third quarter of 2005. Gross profit dollars for the three- and nine-month periods ended June 2006 increased $20.0 million and $44.1 million, respectively, compared to the same periods of fiscal 2005. Gross profit, as a percentage of sales, decreased to 24.8% for the June 2006 quarter, compared to 25.3% for the same quarter last year. For the nine-month period, gross profit as a percentage of sales decreased to 24.9% in 2006 compared to 25.4% in 2005. The effect of lower overall margins in the gasoline department was the primary contributor to the decrease in gross profit as a percentage of sales. Excluding the effect of gasoline sales, retail grocery segment gross margins for the fiscal 2006 three- and nine-month periods were within 50 basis points of such margins for the same periods of 2005. Operating and administrative expenses for the June 2006 quarter decreased as a percentage of sales to 19.9% compared to 21.6% in the June 2005 quarter. Operating and administrative expenses for the June 2006 nine-month period decreased as a percentage of sales to 20.6% compared to 21.8% in the June 2005 nine-month period. Operating and administrative expenses declined as a percentage of sales (both with and without gasoline sales and expenses) due primarily to the increased sales volume. Ingles operated 197 stores at the end of June 2006, compared to 195 stores at the end of June 2005. Combined 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 and other income, net totaled $1.8 million for the June 2006 quarter compared to $2.4 million for the June 2005 quarter, and $5.3 million for the nine-month 2006 period compared to $5.7 million for the nine-month 2005 period. Lower rental income and higher 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 expenses accounted for most of the decreases. Interest expense decreased $0.4 million and $1.8 million for the three- and nine-month periods ended June 2006, respectively, compared to the same periods ended June 2005 due to a reduction in total debt from $579.7 million at June 25, 2005, to $555.4 million at June 24, 2006. Net income for the June 2006 quarter totaled $13.8 million, 108.9% higher than net income of $6.6 million for the June 2005 quarter. Basic and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the Company's publicly traded Class A common stock were $0.59 and $0.57 per share, respectively, for the June 2006 quarter compared to $0.29 and $0.27 per share, respectively, for the June 2005 quarter. Net income for the nine months ended June 24, 2006 totaled $31.1 million, 80.9% higher than net income of $17.2 million for the nine months ended June 25, 2005. Basic and diluted earnings per share for the Company's publicly traded Class A common stock were $1.33 and $1.27 per share, respectively, for the June 2006 nine-month period compared to $0.75 and $0.71 per share, respectively, for the June 2005 nine-month period. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. 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, "Our good results are sales driven. We've we've Contraction of we have. we've have had successful promotions, improved our store base and offered both convenience and value to our customers. Our customer visits are up and they're they're Contraction of they are. they're be purchasing more each visit than they did last year. This growth also allows us to spread fixed expenses over more sales dollars to the benefit of our customers and shareholders." During the June 2006 nine-month period, Ingles completed one new store and three replacement stores, closed one store and purchased seven future store sites. Including additions at new or replacement stores, the Company added eight fuel stations and three pharmacies This article is a list of major pharmacies (also known as chemists and drugstores) by country. Australia Pharmacies in Australia are mostly independently-owned by pharmacists, often operated as franchises of retail brands offered by the three major . Capital expenditures for the June 2006 nine-month period totaled $66.8 million. For the balance of the fiscal year, Ingles expects to open one remodeled store, purchase three sites for future expansion, and add four new fuel stations and a 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. to existing store properties. Capital expenditures for the entire fiscal year are expected to be approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $90 million, including expenditures for stores to open in fiscal 2007. 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, 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 2005 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 2006 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 197 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 Global 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 24, June 25, June 24, June 25,
2006 2005 2006 2005
---- ---- ---- ----
Net sales $ 659,212 $ 566,656 $1,889,255 $1,683,198
Gross profit 163,151 143,123 471,237 427,103
Operating and
administrative
expenses 131,122 122,364 389,629 366,654
Rental income, net 1,431 1,838 4,016 4,389
Income from operations 33,460 22,597 85,624 64,838
Other income, net 446 638 1,266 1,323
Interest expense 12,184 12,592 36,737 38,550
Income taxes 7,880 4,017 19,100 10,448
Net income $ 13,842 $ 6,626 $ 31,053 $ 17,163
Basic earnings
per common
share - Class A $ 0.59 $ 0.29 $ 1.33 $ 0.75
Basic earnings
per common
share - Class B $ 0.54 $ 0.26 $ 1.21 $ 0.68
Diluted earnings
per common
share - Class A $ 0.57 $ 0.27 $ 1.27 $ 0.71
Diluted earnings
per common
share - Class B $ 0.54 $ 0.26 $ 1.21 $ 0.68
Additional selected
information:
Depreciation and
amortization expense $ 14,765 $ 13,798 $ 44,297 $ 42,288
Rent expense $ 5,359 $ 6,403 $ 16,598 $ 20,581
Condensed Consolidated Balance Sheets (Unaudited)
June 24, Sept. 24,
2006 2005
---- ----
ASSETS
Cash and cash equivalents $ 22,281 $ 50,626
Receivables-net 40,758 39,079
Inventories 216,754 204,113
Other current assets 11,287 10,639
Property and equipment-net 762,748 744,163
Other assets 17,150 17,385
------------ -------------
TOTAL ASSETS $ 1,070,978 $ 1,066,005
============ =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current maturities of
long-term debt $ 12,174 $ 16,413
Accounts payable, accrued
expenses and current portion
of other long-term liabilities 189,792 184,462
Deferred income taxes 24,576 31,246
Long-term debt 543,271 553,015
Other long-term liabilities 4,163 4,020
------------- -------------
Total Liabilities 773,976 789,156
Stockholders' equity 297,002 276,849
------------ -------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 1,070,978 $ 1,066,005
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