Ingles Markets, Incorporated Reports Sales and Net Income for Second Quarter and First Six Months of Fiscal 2022 By: Ingles Markets, Incorporated via Business Wire May 05, 2022 at 07:30 AM EDT Ingles Markets, Incorporated (NASDAQ: IMKTA) today reported increased sales and net income for the three and six months ended March 26, 2022. The coronavirus (COVID-19) pandemic was declared a national emergency on March 13, 2020. The pandemic has had a significant impact on the Company’s operations since then. At this time the Company cannot predict the impact of the pandemic on future periods. Robert P. Ingle II, Chairman of the Board, stated, “We are pleased with our strong results due to the dedication and hard work from our associates. We continue to work hard to provide affordable products and selection to our customers during these challenging times.” Second Quarter Results Net sales totaled $1.38 billion for the quarter ended March 26, 2022, an increase of 16.3% compared with $1.18 billion for the quarter ended March 27, 2021. Gross profit for the second quarter of fiscal 2022 totaled $348.6 million, or 25.3% of sales. Gross profit for the second quarter of fiscal 2021 was $310.5 million, or 26.2% of sales. Operating and administrative expenses for the March 2022 quarter totaled $254.7 million compared with $236.9 million for the March 2021 quarter. Most of the increase was due to higher personnel costs which reflect a tight labor market. Interest expense totaled $5.4 million for the three-month period ended March 26, 2022, compared with $6.2 million for the three-month period ended March 27, 2021. Net income totaled $68.6 million for the three-month period ended March 26, 2022, compared with $52.2 million for the three-month period ended March 27, 2021. Basic and diluted earnings per share for Class A Common Stock were $3.70 and $3.61, respectively, for the quarter ended March 26, 2022, compared with $2.65 and $2.58, respectively, for the quarter ended March 27, 2021. First Half Results First half fiscal 2022 net sales totaled $2.77 billion, an increase of 16.6% compared with $2.37 billion in the first half of 2021. Gross profit for the six months ended March 26, 2022, totaled $699.1 million, compared with $624.7 million for the first six months of last fiscal year. Gross profit, as a percentage of sales, was 25.3% for the March 2022 six-month period, compared with 26.3% for the March 2021 six-month period. Operating and administrative expenses totaled $514.8 million for the six months ended March 26, 2022, and $475.0 million for the six months ended March 27, 2021. Labor costs accounted for most of the increase. Interest expense decreased to $10.8 million for the six-month period ended March 26, 2022, compared with $12.6 million for the six-month period ended March 27, 2021. Total debt at the end of March 2022 was $578.5 million compared with $647.8 million at the end of March 2021. Net income totaled $134.8 million for the six-month period ended March 26, 2022, compared with $106.0 million for the six-month period ended March 27, 2021. Basic and diluted earnings per share for Class A Common Stock were $7.26 and $7.10, respectively, for the six months ended March 26, 2022, compared to $5.38 and $5.24, respectively, for the six months ended March 27, 2021. Capital expenditures for the March 2022 six-month period totaled $34.1 million compared with $69.4 million for the March 2021 six-month period. The Company currently has no outstanding borrowings under its $150.0 million line of credit. Ingles continues to provide additional pandemic support to its communities, including increased donations to local food banks and purchases from local vendors. 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 2021 Form 10-K and 2022 Forms 10-Q. Ingles Markets, Incorporated is a leading grocer with operations in six southeastern states. Headquartered in Asheville, North Carolina, the Company operates 198 supermarkets. In conjunction with its supermarket operations, the Company operates neighborhood shopping centers, most of which contain an Ingles supermarket. The Company also owns a fluid dairy facility that supplies Ingles supermarkets and unaffiliated customers. To learn more about Ingles Markets visit ingles-markets.com. INGLES MARKETS, INCORPORATED (Amounts in thousands except per share data) Unaudited Financial Highlights Condensed Consolidated Statements of Income (Unaudited) Three Months Ended Six Months Ended March 26, March 27, March 26, March 27, 2022 2021 2022 2021 Net sales $ 1,377,119 $ 1,184,555 $ 2,768,648 $ 2,374,998 Gross profit 348,563 310,500 699,107 624,689 Operating and administrative expenses 254,739 236,850 514,825 475,049 Gain from sale or disposal of assets 1,265 663 1,209 1,115 Income from operations 95,089 74,313 185,491 150,755 Other income, net 1,344 646 2,936 1,337 Interest expense 5,426 6,195 10,839 12,596 Income tax expense 22,366 16,575 42,758 33,483 Net income $ 68,641 $ 52,189 $ 134,830 $ 106,013 Basic earnings per common share – Class A $ 3.70 $ 2.65 $ 7.26 $ 5.38 Diluted earnings per common share – Class A $ 3.61 $ 2.58 $ 7.10 $ 5.24 Basic earnings per common share – Class B $ 3.36 $ 2.41 $ 6.60 $ 4.89 Diluted earnings per common share – Class B $ 3.36 $ 2.41 $ 6.60 $ 4.89 Additional selected information: Depreciation and amortization expense $ 29,968 $ 30,327 $ 59,265 $ 60,206 Rent expense $ 2,956 $ 2,981 $ 5,588 $ 5,678 Condensed Consolidated Balance Sheets (Unaudited) March 26, Sept. 25, 2022 2021 ASSETS Cash and cash equivalents $ 65,624 $ 70,313 Short term investments 115,007 5,000 Receivables-net 98,011 95,082 Inventories 397,891 389,953 Other current assets 24,906 15,092 Property and equipment-net 1,343,411 1,370,769 Other assets 79,327 72,135 TOTAL ASSETS $ 2,124,177 $ 2,018,344 LIABILITIES AND STOCKHOLDERS' EQUITY Current maturities of long-term debt $ 17,619 $ 17,601 Accounts payable, accrued expenses and current portion of other long-term liabilities 270,370 288,497 Deferred income taxes 73,964 72,768 Long-term debt 560,833 571,913 Other long-term liabilities 80,540 84,306 Total Liabilities 1,003,326 1,035,085 Stockholders' equity 1,120,851 983,259 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,124,177 $ 2,018,344 View source version on businesswire.com: https://www.businesswire.com/news/home/20220505005027/en/Contacts Pat Jackson, Chief Financial Officer (828) 669-2941 (Ext. 223)
Ingles Markets, Incorporated (NASDAQ: IMKTA) today reported increased sales and net income for the three and six months ended March 26, 2022. The coronavirus (COVID-19) pandemic was declared a national emergency on March 13, 2020. The pandemic has had a significant impact on the Company’s operations since then. At this time the Company cannot predict the impact of the pandemic on future periods. Robert P. Ingle II, Chairman of the Board, stated, “We are pleased with our strong results due to the dedication and hard work from our associates. We continue to work hard to provide affordable products and selection to our customers during these challenging times.” Second Quarter Results Net sales totaled $1.38 billion for the quarter ended March 26, 2022, an increase of 16.3% compared with $1.18 billion for the quarter ended March 27, 2021. Gross profit for the second quarter of fiscal 2022 totaled $348.6 million, or 25.3% of sales. Gross profit for the second quarter of fiscal 2021 was $310.5 million, or 26.2% of sales. Operating and administrative expenses for the March 2022 quarter totaled $254.7 million compared with $236.9 million for the March 2021 quarter. Most of the increase was due to higher personnel costs which reflect a tight labor market. Interest expense totaled $5.4 million for the three-month period ended March 26, 2022, compared with $6.2 million for the three-month period ended March 27, 2021. Net income totaled $68.6 million for the three-month period ended March 26, 2022, compared with $52.2 million for the three-month period ended March 27, 2021. Basic and diluted earnings per share for Class A Common Stock were $3.70 and $3.61, respectively, for the quarter ended March 26, 2022, compared with $2.65 and $2.58, respectively, for the quarter ended March 27, 2021. First Half Results First half fiscal 2022 net sales totaled $2.77 billion, an increase of 16.6% compared with $2.37 billion in the first half of 2021. Gross profit for the six months ended March 26, 2022, totaled $699.1 million, compared with $624.7 million for the first six months of last fiscal year. Gross profit, as a percentage of sales, was 25.3% for the March 2022 six-month period, compared with 26.3% for the March 2021 six-month period. Operating and administrative expenses totaled $514.8 million for the six months ended March 26, 2022, and $475.0 million for the six months ended March 27, 2021. Labor costs accounted for most of the increase. Interest expense decreased to $10.8 million for the six-month period ended March 26, 2022, compared with $12.6 million for the six-month period ended March 27, 2021. Total debt at the end of March 2022 was $578.5 million compared with $647.8 million at the end of March 2021. Net income totaled $134.8 million for the six-month period ended March 26, 2022, compared with $106.0 million for the six-month period ended March 27, 2021. Basic and diluted earnings per share for Class A Common Stock were $7.26 and $7.10, respectively, for the six months ended March 26, 2022, compared to $5.38 and $5.24, respectively, for the six months ended March 27, 2021. Capital expenditures for the March 2022 six-month period totaled $34.1 million compared with $69.4 million for the March 2021 six-month period. The Company currently has no outstanding borrowings under its $150.0 million line of credit. Ingles continues to provide additional pandemic support to its communities, including increased donations to local food banks and purchases from local vendors. 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 2021 Form 10-K and 2022 Forms 10-Q. Ingles Markets, Incorporated is a leading grocer with operations in six southeastern states. Headquartered in Asheville, North Carolina, the Company operates 198 supermarkets. In conjunction with its supermarket operations, the Company operates neighborhood shopping centers, most of which contain an Ingles supermarket. The Company also owns a fluid dairy facility that supplies Ingles supermarkets and unaffiliated customers. To learn more about Ingles Markets visit ingles-markets.com. INGLES MARKETS, INCORPORATED (Amounts in thousands except per share data) Unaudited Financial Highlights Condensed Consolidated Statements of Income (Unaudited) Three Months Ended Six Months Ended March 26, March 27, March 26, March 27, 2022 2021 2022 2021 Net sales $ 1,377,119 $ 1,184,555 $ 2,768,648 $ 2,374,998 Gross profit 348,563 310,500 699,107 624,689 Operating and administrative expenses 254,739 236,850 514,825 475,049 Gain from sale or disposal of assets 1,265 663 1,209 1,115 Income from operations 95,089 74,313 185,491 150,755 Other income, net 1,344 646 2,936 1,337 Interest expense 5,426 6,195 10,839 12,596 Income tax expense 22,366 16,575 42,758 33,483 Net income $ 68,641 $ 52,189 $ 134,830 $ 106,013 Basic earnings per common share – Class A $ 3.70 $ 2.65 $ 7.26 $ 5.38 Diluted earnings per common share – Class A $ 3.61 $ 2.58 $ 7.10 $ 5.24 Basic earnings per common share – Class B $ 3.36 $ 2.41 $ 6.60 $ 4.89 Diluted earnings per common share – Class B $ 3.36 $ 2.41 $ 6.60 $ 4.89 Additional selected information: Depreciation and amortization expense $ 29,968 $ 30,327 $ 59,265 $ 60,206 Rent expense $ 2,956 $ 2,981 $ 5,588 $ 5,678 Condensed Consolidated Balance Sheets (Unaudited) March 26, Sept. 25, 2022 2021 ASSETS Cash and cash equivalents $ 65,624 $ 70,313 Short term investments 115,007 5,000 Receivables-net 98,011 95,082 Inventories 397,891 389,953 Other current assets 24,906 15,092 Property and equipment-net 1,343,411 1,370,769 Other assets 79,327 72,135 TOTAL ASSETS $ 2,124,177 $ 2,018,344 LIABILITIES AND STOCKHOLDERS' EQUITY Current maturities of long-term debt $ 17,619 $ 17,601 Accounts payable, accrued expenses and current portion of other long-term liabilities 270,370 288,497 Deferred income taxes 73,964 72,768 Long-term debt 560,833 571,913 Other long-term liabilities 80,540 84,306 Total Liabilities 1,003,326 1,035,085 Stockholders' equity 1,120,851 983,259 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,124,177 $ 2,018,344 View source version on businesswire.com: https://www.businesswire.com/news/home/20220505005027/en/