IMKTA Ingles Markets Incorporated

Ingles Markets, Incorporated (NASDAQ: IMKTA) today reported sales for the three and six months ended March 30, 2024.

Robert P. Ingle II, Chairman of the Board, stated, “We are pleased with our results and thank all our associates for their continued service to our customers and company.”

Second Quarter 2024 Results

Net sales totaled $1.37 billion for the quarter ended March 30, 2024, a decrease of 0.95% compared with $1.38 billion for the quarter ended March 25, 2023.

Gross profit for the second quarter of fiscal 2024 totaled $321.9 million, or 23.5% of sales. Gross profit for the second quarter of fiscal 2023 was $325.9 million, or 23.6% of sales.

Operating and administrative expenses for the second quarter of fiscal 2024 totaled $284.8 million, as compared with $268.9 million for the second quarter of fiscal 2023.

Interest expense totaled $5.6 million for the second quarter of fiscal 2024, as compared with $5.3 million for the second quarter of fiscal 2023.

Net income totaled $31.9 million for the second quarter of fiscal 2024, as compared with $40.5 million for the second quarter of fiscal 2023. Basic and diluted earnings per share for Class A Common Stock were $1.72 and $1.68, respectively, for the quarter ended March 30, 2024, as compared with $2.18 and $2.13, respectively, for the quarter ended March 25, 2023.

First Half Fiscal 2024 Results

First half fiscal 2024 net sales totaled $2.85 billion, a decrease of 0.88% compared with $2.87 billion in the first half of fiscal 2023.

Gross profit for the six months ended March 30, 2024, totaled $670.7 million, as compared with $697.1 million for the first six months of last fiscal year. Gross profit, as a percentage of sales, was 23.5% for the first half of fiscal 2024, compared with 24.3% for the first half of fiscal 2023.

Operating and administrative expenses totaled $574.6 million for the six months ended March 30, 2024, as compared to $545.1 million for the six months ended March 25, 2023.

Interest expense increased to $11.3 million for the six-month period ended March 30, 2024, as compared with $10.7 million for the six-month period ended March 25, 2023. Total debt as of March 30, 2024, was $539.1 million compared with $556.7 million as of March 25, 2023.

Net income totaled $75.3 million for the six-month period ended March 30, 2024, as compared with $109.9 million for the six-month period ended March 25, 2023. Basic and diluted earnings per share for Class A Common Stock were $4.05 and $3.96, respectively, for the six months ended March 30, 2024, as compared to $5.92 and $5.79, respectively, for the six months ended March 25, 2023.

Capital expenditures for the first half of fiscal 2024 totaled $98.4 million compared with $91.4 million for the first half of fiscal 2023.

The Company currently has no outstanding borrowings under its $150.0 million line of credit. The Company believes its financial resources, including its line of credit and other internal and external sources of funds, will be sufficient to meet planned capital expenditures, debt service and working capital requirements for the foreseeable future.

About Ingles Markets, Incorporated

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.

Cautionary Note Regarding Forward-Looking Statements

This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results and the related assumptions underlying our expected results. These forward-looking statements are distinguished by use of words such as “anticipate,” “aim,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and the negative of these terms, and similar references to future periods. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to, among other things: business and economic conditions generally in the Company’s operating area, including inflation or deflation; shortages of labor, distribution capacity, and some product shortages; inflation in food, labor and gasoline prices; the Company’s ability to successfully implement our expansion and operating strategies; pricing pressures and other competitive factors, including online-based procurement of products the Company sells; sudden or significant changes in the availability of gasoline and retail gasoline prices; the maturation of new and expanded stores; general concerns about food safety; the Company’s ability to manage technology and data security; the availability and terms of financing; and increases in costs, including food, utilities, labor and other goods and services significant to the Company’s operations. Detailed information about these factors and additional important factors can be found in the documents that the Company files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. The Company does not undertake an obligation to update forward-looking information, except to the extent required by applicable law.

       

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 30,

 

March 25,

 

March 30,

 

March 25,

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,367,480

 

$

1,380,604

 

$

2,848,542

 

$

2,873,918

Gross profit

 

 

321,885

 

 

325,940

 

 

670,686

 

 

697,095

Operating and administrative expenses

 

 

284,762

 

 

268,890

 

 

574,589

 

 

545,069

Gain from sale or disposal of assets

 

 

7,686

 

 

597

 

 

8,339

 

 

1,377

Income from operations

 

 

44,809

 

 

57,647

 

 

104,436

 

 

153,403

Other income, net

 

 

3,381

 

 

1,734

 

 

6,988

 

 

3,176

Interest expense

 

 

5,587

 

 

5,344

 

 

11,294

 

 

10,692

Income tax expense

 

 

10,704

 

 

13,497

 

 

24,838

 

 

35,976

Net income

 

$

31,899

 

$

40,540

 

$

75,292

 

$

109,911

 

 

 

 

 

 

 

 

 

Basic earnings per common share – Class A

 

$

1.72

 

$

2.18

 

$

4.05

 

$

5.92

Diluted earnings per common share – Class A

 

$

1.68

 

$

2.13

 

$

3.96

 

$

5.79

Basic earnings per common share – Class B

 

$

1.56

 

$

1.98

 

$

3.68

 

$

5.38

Diluted earnings per common share – Class B

 

$

1.56

 

$

1.98

 

$

3.68

 

$

5.38

 

 

 

 

 

 

 

 

 

Additional selected information:

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

$

29,249

 

$

28,864

 

$

58,023

 

$

57,970

Rent expense

 

$

2,664

 

$

2,740

 

$

5,057

 

$

5,329

 

Condensed Consolidated Balance Sheets (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

March 30,

 

 

 

Sept. 30,

 

 

 

 

2024

 

 

 

2023

 

 

ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

302,018

 

 

 

$

328,540

 

 

Receivables-net

 

 

109,444

 

 

 

 

107,571

 

 

Inventories

 

 

479,130

 

 

 

 

493,860

 

 

Other current assets

 

 

26,530

 

 

 

 

22,586

 

 

Property and equipment-net

 

 

1,480,038

 

 

 

 

1,431,872

 

 

Other assets

 

 

89,148

 

 

 

 

89,417

 

 

TOTAL ASSETS

 

$

2,486,308

 

 

 

$

2,473,846

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current maturities of long-term debt

 

$

17,521

 

 

 

$

17,527

 

 

Accounts payable, accrued expenses and current portion of other long-term liabilities

 

 

269,440

 

 

 

 

313,007

 

 

Deferred income taxes

 

 

63,561

 

 

 

 

67,187

 

 

Long-term debt

 

 

521,597

 

 

 

 

532,632

 

 

Other long-term liabilities

 

 

88,747

 

 

 

 

84,521

 

 

Total Liabilities

 

 

960,866

 

 

 

 

1,014,874

 

 

Stockholders' equity

 

 

1,525,442

 

 

 

 

1,458,972

 

 

TOTAL LIABILITIES AND

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

$

2,486,308

 

 

 

$

2,473,846

 

 

   

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240509931458/en/

Pat Jackson, Chief Financial Officer pjackson@ingles-markets.com (828) 669-2941 (Ext. 223)