IMKTA Ingles Markets Incorporated

Ingles Markets, Incorporated (NASDAQ: IMKTA) today reported results for the three and nine months ended June 29, 2024.

Robert P. Ingle II, Chairman of the Board, stated, “We continue to stay focused on our goal of providing excellent customer service and products at affordable prices. We would like to thank all our associates for their hard work and dedication.”

Third Quarter Results

Net sales totaled $1.39 billion for the quarter ended June 29, 2024, compared with $1.43 billion for the quarter ended June 24, 2023.

Gross profit for the third quarter of fiscal 2024 totaled $329.8 million, or 23.7% of sales. Gross profit for the third quarter of fiscal 2023 was $338.1 million, or 23.6% of sales.

Operating and administrative expenses for the third quarter of fiscal 2024 totaled $286.3 million compared with $270.9 million for the third quarter of fiscal 2023.

Interest expenses totaled $5.4 million for the third quarter of fiscal 2024 and for the third quarter of fiscal 2023.

Net income totaled $31.7 million for the third quarter of fiscal 2024, as compared with $48.3 million for the third quarter of fiscal 2023. Basic and diluted earnings per share for Class A Common Stock were $1.71 and $1.67, respectively, for the quarter ended June 29, 2024, as compared with $2.60 and $2.54, respectively, for the quarter ended June 24, 2023. Basic and diluted earnings per share for Class B Common Stock were each $1.55 for the quarter ended June 29, 2024, as compared with $2.36 for the quarter ended June 24, 2023.

Nine Month Results

Net sales totaled $4.24 billion for the nine months ended June 29, 2024, as compared with $4.31 billion for the nine months ended June 24, 2023.

Gross profit for the nine months ended June 29, 2024, totaled $1.00 billion, or 23.6% of sales. Gross profit for the nine months ended June 24, 2023, totaled $1.04 billion, or 24.0% of sales.

Operating and administrative expenses totaled $860.8 million for the nine months ended June 29, 2024, as compared to $816.0 million for the nine months ended June 24, 2023.

Interest expenses totaled $16.7 million for the nine-month period ended June 29, 2024, and $16.1 million for the nine-month period ended June 24, 2023.

Net income totaled $107.0 million for the nine-month period ended June 29, 2024, compared with $158.2 million for the nine-month period ended June 24, 2023. Basic and diluted earnings per share for Class A Common Stock were $5.76 and $5.63, respectively, for the nine months ended June 29, 2024, as compared with $8.51 and $8.33, respectively, for the nine months ended June 24, 2023. Basic and diluted earnings per share for Class B Common Stock were each $5.23 for the nine months ended June 29, 2024, as compared with $7.74 of basic and diluted earnings per share for the nine months ended June 24, 2023.

Capital expenditures for the June 2024 nine-month period totaled $143.0 million, compared with $137.1 million for the June 2023 nine-month period. Capital expenditures for the entire fiscal year 2024 are expected to be approximately $170 million to $190 million.

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

 

Nine Months Ended

 

 

June 29,

June 24,

 

June 29,

June 24,

 

 

2024

2023

 

2024

2023

 

 

 

 

 

 

 

Net sales

 

$

1,393,539

$

1,433,869

 

$

4,242,081

$

4,307,787

Gross profit

 

 

329,758

 

338,101

 

 

1,000,444

 

1,035,196

Operating and administrative expenses

 

 

286,250

 

270,911

 

 

860,839

 

815,981

Gain from sale or disposal of assets

 

 

643

 

116

 

 

8,982

 

1,493

Income from operations

 

 

44,151

 

67,306

 

 

148,587

 

220,708

Other income, net

 

 

3,554

 

2,115

 

 

10,542

 

5,291

Interest expense

 

 

5,359

 

5,442

 

 

16,653

 

16,133

Income tax expense

 

 

10,624

 

15,719

 

 

35,462

 

51,695

Net income

 

$

31,722

$

48,260

 

$

107,014

$

158,171

 

 

 

 

 

 

 

Basic earnings per common share – Class A

 

$

1.71

$

2.60

 

$

5.76

$

8.51

Diluted earnings per common share – Class A

 

$

1.67

$

2.54

 

$

5.63

$

8.33

Basic earnings per common share – Class B

 

$

1.55

$

2.36

 

$

5.23

$

7.74

Diluted earnings per common share – Class B

 

$

1.55

$

2.36

 

$

5.23

$

7.74

 

 

 

 

 

 

 

Additional selected information:

 

 

 

 

 

 

Depreciation and amortization expense

 

$

29,509

$

28,847

 

$

87,532

$

86,817

Rent expense

 

$

2,534

$

2,532

 

$

7,591

$

7,861

 

Condensed Consolidated Balance Sheets (Unaudited)

 

 

 

 

 

 

 

 

 

June 29,

 

 

Sept. 30,

 

 

 

2024

 

 

2023

 

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

354,759

 

 

$

328,540

 

Receivables-net

 

 

99,610

 

 

 

107,571

 

Inventories

 

 

483,546

 

 

 

493,860

 

Other current assets

 

 

24,797

 

 

 

22,586

 

Property and equipment-net

 

 

1,497,177

 

 

 

1,431,872

 

Other assets

 

 

85,833

 

 

 

89,417

 

TOTAL ASSETS

 

$

2,545,722

 

 

$

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

 

304,858

 

 

 

313,007

 

Deferred income taxes

 

 

65,187

 

 

 

67,187

 

Long-term debt

 

 

518,349

 

 

 

532,632

 

Other long-term liabilities

 

 

85,973

 

 

 

84,521

 

Total Liabilities

 

 

991,888

 

 

 

1,014,874

 

Stockholders' equity

 

 

1,553,834

 

 

 

1,458,972

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

2,545,722

 

 

$

2,473,846

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240808658815/en/

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