IMKTA Ingles Markets Incorporated

Ingles Markets, Incorporated (NASDAQ: IMKTA) today reported results for the three and twelve months ended September 28, 2024.

Robert P. Ingle II, Chairman of the Board, stated, “After Hurricane Helene impacted our communities, I am proud of how not only our associates came together, but our entire region. We are truly thankful for all the volunteers and the outpouring of support for our region.”

Impact of Hurricane Helene

On September 27, 2024, Hurricane Helene severely impacted western North Carolina, including the area where the Company’s headquarters are located, resulting in catastrophic flooding which caused power, communication and water outages, and major road closures. For the quarter and year ended September 28, 2024, the Company recognized an impairment loss of $30.4 million related to inventory damaged or destroyed by Hurricane Helene. Additionally, the Company also recognized a property and equipment impairment loss of $4.5 million for the quarter and year ended September 28, 2024.

Fourth Quarter Results

Net sales totaled $1.40 billion for the quarter ended September 28, 2024, compared with $1.58 billion for the quarter ended September 30, 2023. Fourth quarter results of fiscal 2024 had 13 weeks compared to 14 weeks for the fourth quarter of fiscal 2023.

Gross profit for the fourth quarter of fiscal 2024 totaled $299.4 million, or 21.4% of sales. Gross profit for the fourth quarter of fiscal 2023 was $369.7 million, or 23.3% of sales.

Operating and administrative expenses for the fourth quarter of fiscal 2024 totaled $301.0 million compared with $299.4 million for the fourth quarter of fiscal 2023.

Interest expense totaled $5.2 million for the fourth quarter of fiscal 2024 compared with $5.9 million for the fourth quarter of fiscal 2023. Total debt at the end of fiscal 2024 was $532.6 million compared with $550.2 million at the end of fiscal 2023.

Net loss totaled $1.5 million for the fourth quarter of fiscal 2024 quarter compared with net income of $52.6 million for the fourth quarter of fiscal 2023. Basic and diluted losses per share for Class A Common Stock were $0.08, for the quarter ended September 28, 2024, compared with basic and diluted earnings per share of $2.83 and $2.77, respectively, for the quarter ended September 30, 2023. Basic and diluted losses per share for Class B Common Stock were each $0.07 for the quarter ended September 28, 2024, compared with basic and diluted income per share of $2.57 for the quarter ended September 30, 2023.

Annual Results

Net sales totaled $5.64 billion for the fiscal year ended September 28, 2024, compared with $5.89 billion for the fiscal year ended September 30, 2023. The fiscal year ended September 28, 2024, had 52 weeks, and the fiscal year ended September 30, 2023, had 53 weeks.

Gross profit for the fiscal year ended September 28, 2024, totaled $1.3 billion, or 23.1% of sales. Gross profit for the fiscal year ended September 30, 2023, totaled $1.4 billion, or 23.8% of sales.

Operating and administrative expenses totaled $1.2 billion for the fiscal year ended September 28, 2024, and $1.1 billion for the fiscal year ended September 30, 2023.

Interest expense was $21.9 million for the fiscal year ended September 28, 2024, compared with $22.1 million for the fiscal year ended September 30, 2023.

Net income totaled $105.5 million for the fiscal year ended September 28, 2024, compared with $210.8 million for the fiscal year ended September 30, 2023. Basic and diluted earnings per share for Class A Common Stock were $5.68 and $5.56, respectively, for the fiscal year ended September 28, 2024, compared with $11.35 and $11.10, respectively, for the fiscal year ended September 30, 2023. Basic and diluted earnings per share for Class B Common Stock were each $5.16 for the fiscal year ended September 28, 2024, compared with basic and diluted earnings per share of $10.32 for the fiscal year ended September 30, 2023.

Capital expenditures for the 2024 fiscal year totaled $210.9 million compared with $173.6 million for the 2023 fiscal year.

The Company currently has the full amount available under its $150.0 million line of credit. The Company believes its financial resources, including the line of credit and other internal and anticipated 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

Consolidated Statements of Income

 

 

 

 

 

 

 

Quarter Ended

 

Year Ended

 

 

Sept. 28,

Sept. 30,

 

Sept. 28,

Sept. 30,

 

 

2024

2023

 

2024

2023

 

 

 

 

 

 

 

Net sales

 

$

1,397,529

 

$

1,584,995

 

$

5,639,609

$

5,892,782

Gross profit

 

 

299,391

 

 

369,720

 

 

1,299,835

 

1,404,915

Operating and administrative expenses

 

 

300,958

 

 

299,400

 

 

1,161,797

 

1,115,381

Gain from sale or disposal of assets

 

 

124

 

 

1,276

 

 

9,106

 

2,770

(Loss) income from operations

 

 

(1,443

)

 

71,596

 

 

147,144

 

292,304

Other income, net

 

 

3,675

 

 

2,978

 

 

14,217

 

8,269

Interest expense

 

 

5,207

 

 

5,935

 

 

21,860

 

22,068

Income tax (benefit) expense

 

 

(1,502

)

 

15,998

 

 

33,960

 

67,693

Net (loss) income

 

$

(1,473

)

$

52,641

 

$

105,541

$

210,812

 

 

 

 

 

 

 

Basic (loss) earnings per common share – Class A

 

$

(0.08

)

$

2.83

 

$

5.68

$

11.35

Diluted (loss) earnings per common share – Class A

 

$

(0.08

)

$

2.77

 

$

5.56

$

11.10

Basic (loss) earnings per common share – Class B

 

$

(0.07

)

$

2.57

 

$

5.16

$

10.32

Diluted (loss) earnings per common share – Class B

 

$

(0.07

)

$

2.57

 

$

5.16

$

10.32

 

 

 

 

 

 

 

Additional selected information:

 

 

 

 

 

 

Depreciation and amortization expense

 

$

34,091

 

$

29,162

 

$

121,623

$

115,979

Rent expense

 

$

2,111

 

$

2,731

 

$

9,703

$

10,592

 

Consolidated Balance Sheets

 

 

Sept. 28,

 

 

Sept. 30,

 

 

 

2024

 

 

2023

 

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

353,688

 

 

 

$

328,540

 

Receivables-net

 

 

78,266

 

 

 

 

107,571

 

Inventories

 

 

462,085

 

 

 

 

493,860

 

Other current assets

 

 

31,509

 

 

 

 

22,586

 

Property and equipment-net

 

 

1,526,708

 

 

 

 

1,431,872

 

Other assets

 

 

75,627

 

 

 

 

89,417

 

TOTAL ASSETS

 

$

2,527,883

 

 

 

$

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

 

 

303,101

 

 

 

 

313,007

 

Deferred income taxes

 

 

63,767

 

 

 

 

67,187

 

Long-term debt

 

 

515,102

 

 

 

 

532,632

 

Other long-term liabilities

 

 

82,643

 

 

 

 

84,521

 

Total Liabilities

 

 

982,134

 

 

 

 

1,014,874

 

Stockholders' equity

 

 

1,545,749

 

 

 

 

1,458,972

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

2,527,883

 

 

 

$

2,473,846

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241227781704/en/

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