Ingles Markets Inc 8-K, filed Aug 3, 2023
Ingles Markets Inc (IMKTA)
About this 8-K
Ingles Markets Inc filed this 8-K on August 3, 2023.
Items reported
- Item 2.02: Financial results
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
| Date of Report (Date of earliest event reported) |
| (Exact name of registrant as specified in its charter) |
|
(State or other jurisdiction
of incorporation)
|
(Commission
File Number)
|
(IRS Employer
Identification No.)
|
| (Address of principal executive offices) |
(Zip Code) |
| Registrant’s telephone number, including area code |
( |
| N/A |
| (Former name or former address, if changed since last report.) |
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934
(§240.12b-2 of this chapter).
|
|
|
Emerging growth company
|
|
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the
extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
|
☐
|
| (d) |
Exhibits. |
|
|
|
|
|
|
|
Exhibit Number | Description of Exhibit |
|
|
99.1 |
Press release issued August 3, 2023 |
|
|
104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
|
|
|
INGLES MARKETS, INCORPORATED |
|
|
|
(Registrant) |
|
|
|
|
|
Date: August 3, 2023
|
|
|
|
|
By: |
/s/ Patricia E. Jackson |
|
|
|
Patricia E. Jackson |
|
|
|
Chief Financial Officer |
| Exhibit 99.1 |
Ingles Markets, Incorporated Reports Results for Third Quarter and First Nine Months of Fiscal 2023
ASHEVILLE, N.C.--(BUSINESS WIRE)--August 3, 2023--Ingles Markets, Incorporated (NASDAQ: IMKTA) today reported results for the three and nine months ended June 24, 2023.
Robert P. Ingle II, Chairman of the Board, stated, “It is our goal to provide the best customer experience with fresh quality products at affordable prices. We appreciate our customers and associates for their continued dedication and loyalty.”
Third Quarter Results
Net sales totaled $1.43 billion for the quarter ended June 24, 2023, compared with $1.46 billion for the quarter ended June 25, 2022.
Gross profit for the third quarter of fiscal 2023 totaled $338.1 million, or 23.6% of sales. Gross profit for the third quarter of fiscal 2022 was $351.9 million, or 24.1% of sales.
Operating and administrative expenses for the third quarter of fiscal 2023 totaled $270.9 million compared with $257.3 million for the third quarter of fiscal 2022.
Interest expenses totaled $5.4 million for the third quarter of fiscal 2023, as compared with $5.3 million for the third quarter of fiscal 2022.
Net income totaled $48.3 million for the third quarter of fiscal 2023, as compared with $67.8 million for the third quarter of fiscal 2022. Basic and diluted earnings per share for Class A Common Stock were $2.60 and $2.54, respectively, for the quarter ended June 24, 2023, as compared with $3.65 and $3.57, respectively, for the quarter ended June 25, 2022. Basic and diluted earnings per share for Class B Common Stock were each $2.36 for the quarter ended June 24, 2023, as compared with $3.32 for the quarter ended June 25, 2022.
Nine Month Results
Net sales totaled $4.31 billion for the nine months ended June 24, 2023, as compared with $4.23 billion for the nine months ended June 25, 2022.
Gross profit for the nine months ended June 24, 2023, totaled $1.04 billion, or 24.0% of sales. Gross profit for the nine months ended June 25, 2022, totaled $1.05 billion, or 24.9% of sales.
Operating and administrative expenses totaled $816.0 million for the nine months ended June 24, 2023, as compared to $772.2 million for the nine months ended June 25, 2022.
Interest expenses remained flat at $16.1 million for both nine-month periods ended June 24, 2023, and June 25, 2022.
Net income totaled $158.2 million for the nine-month period ended June 24, 2023, compared with $202.6 million for the nine-month period ended June 25, 2022. Basic and diluted earnings per share for Class A Common Stock were $8.51 and $8.33, respectively, for the nine months ended June 24, 2023, as compared with $10.91 and $10.67, respectively, for the nine months ended June 25, 2022. Basic and diluted earnings per share for Class B Common Stock were each $7.74 for the nine months ended June 24, 2023, as compared with $9.92 of basic and diluted earnings per share for the nine months ended June 25, 2022.
Capital expenditures for the June 2023 nine-month period totaled $137.1 million, compared with $73.2 million for the June 2022 nine-month period. Capital expenditures for the entire fiscal year 2023 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 as the economy recovers from the COVID-19 pandemic; 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 24, |
June 25, |
|
June 24, |
June 25, |
||||||
|
|
|
2023 |
2022 |
|
2023 |
2022 |
||||||
|
|
|
|
|
|
|
|
||||||
|
Net sales |
|
$ |
1,433,869 |
$ |
1,458,167 |
|
$ |
4,307,787 |
$ |
4,226,815 |
||
|
Gross profit |
|
|
338,101 |
|
351,879 |
|
|
1,035,196 |
|
1,050,986 |
||
|
Operating and administrative expenses |
|
|
270,911 |
|
257,343 |
|
|
815,981 |
|
772,167 |
||
|
Gain from sale or disposal of assets |
|
|
116 |
|
27 |
|
|
1,493 |
|
1,236 |
||
|
Income from operations |
|
|
67,306 |
|
94,563 |
|
|
220,708 |
|
280,055 |
||
|
Other income, net |
|
|
2,115 |
|
1,209 |
|
|
5,291 |
|
4,144 |
||
|
Interest expense |
|
|
5,442 |
|
5,286 |
|
|
16,133 |
|
16,125 |
||
|
Income tax expense |
|
|
15,719 |
|
22,723 |
|
|
51,695 |
|
65,481 |
||
|
Net income |
|
$ |
48,260 |
$ |
67,763 |
|
$ |
158,171 |
$ |
202,593 |
||
|
|
|
|
|
|
|
|
||||||
|
Basic earnings per common share – Class A |
|
$ |
2.60 |
$ |
3.65 |
|
$ |
8.51 |
$ |
10.91 |
||
|
Diluted earnings per common share – Class A |
|
$ |
2.54 |
$ |
3.57 |
|
$ |
8.33 |
$ |
10.67 |
||
|
Basic earnings per common share – Class B |
|
$ |
2.36 |
$ |
3.32 |
|
$ |
7.74 |
$ |
9.92 |
||
|
Diluted earnings per common share – Class B |
|
$ |
2.36 |
$ |
3.32 |
|
$ |
7.74 |
$ |
9.92 |
||
|
|
|
|
|
|
|
|
||||||
|
Additional selected information: |
|
|
|
|
|
|
||||||
|
Depreciation and amortization expense |
|
$ |
28,847 |
$ |
29,259 |
|
$ |
86,817 |
$ |
88,524 |
||
|
Rent expense |
|
$ |
2,532 |
$ |
2,983 |
|
$ |
7,861 |
$ |
8,543 |
||
|
|
||||||||||||
|
Condensed Consolidated Balance Sheets (Unaudited) |
||||||||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
June 24, |
|
|
Sept. 24, |
|
||||||
|
|
|
2023 |
|
|
2022 |
|
||||||
|
ASSETS |
|
|
|
|
|
|
||||||
|
Cash and cash equivalents |
|
$ |
280,745 |
|
|
$ |
267,199 |
|
||||
|
Receivables-net |
|
|
100,824 |
|
|
|
97,157 |
|
||||
|
Inventories |
|
|
481,958 |
|
|
|
457,946 |
|
||||
|
Other current assets |
|
|
33,174 |
|
|
|
15,830 |
|
||||
|
Property and equipment-net |
|
|
1,421,958 |
|
|
|
1,374,031 |
|
||||
|
Other assets |
|
|
88,494 |
|
|
|
83,348 |
|
||||
|
TOTAL ASSETS |
|
$ |
2,407,153 |
|
|
$ |
2,295,511 |
|
||||
|
|
|
|
|
|
|
|
||||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
||||||
|
Current maturities of long-term debt |
|
$ |
17,529 |
|
|
$ |
17,621 |
|
||||
|
Accounts payable, accrued expenses and current portion of other long-term liabilities |
|
|
295,662 |
|
|
|
316,157 |
|
||||
|
Deferred income taxes |
|
|
69,266 |
|
|
|
73,578 |
|
||||
|
Long-term debt |
|
|
535,911 |
|
|
|
554,287 |
|
||||
|
Other long-term liabilities |
|
|
81,466 |
|
|
|
74,274 |
|
||||
|
Total Liabilities |
|
|
999,834 |
|
|
|
1,035,917 |
|
||||
|
Stockholders' equity |
|
|
1,407,319 |
|
|
|
1,259,594 |
|
||||
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
2,407,153 |
|
|
$ |
2,295,511 |
|
||||
Contacts
Ingles Markets, Inc.
Pat Jackson, Chief Financial Officer
pjackson@ingles-markets.com
(828) 669-2941 (Ext. 223)