Business
Ingles Markets, Incorporated Reports Sales and Net Income for First Quarter Fiscal 2020
ASHEVILLE, N.C.--(BUSINESS WIRE)-- Ingles Markets, Incorporated (NASDAQ: IMKTA) today reported its financial results for the three months ended December 28,
About this update from Ingles Markets, Incorporated
[{"type":"text","content":" ASHEVILLE, N.C.--(BUSINESS WIRE)--\nIngles Markets, Incorporated (NASDAQ: IMKTA) today reported its financial results for the three months ended December 28, 2019, compared with the three months ended December 29, 2018. Total sales for the December 2019 quarter were $1.08 billion, an increase of 1.6% over the December 2018 quarter. Net income totaled $17.7 million for the quarter ended December 28, 2019, and $22.2 million for the quarter ended December 29, 2018. The decrease is attributable to $3.7 million of refinancing costs during the current quarter which will result in lower interest expense for future periods. Gasoline gross profits were unusually high industry-wide during the December 2018 quarter and were lower compared with the current quarter.\n\n\nRobert P. Ingle II, Chairman of the Board, stated, “We were pleased with our sales growth during the important holiday period. We completed a successful long-term financing that will lower our interest cost for many years to come.”\n\n\nFirst Quarter Results\n\n\nNet sales totaled $1.08 billion for the quarter ended December 28, 2019, compared with $1.06 billion for the quarter ended December 29, 2018, an increase of $16.5 million. Comparable store sales, excluding gasoline, increased 2.4%.\n\n\nGross profit for the December 2019 quarter was $257.5 million, or 23.9% of sales. Gross profit for the December 2018 quarter was $258.4 million, or 24.3% of sales. As noted above, gasoline gross profits were unusually high for last year’s December quarter.\n\n\nOperating and administrative expenses for the December 2019 quarter totaled $222.0 million, compared with $218.7 million for the December 2018 quarter. Increased personnel costs accounted for much of the increase, influenced by increased sales and by continued high demand for labor.\n\n\nInterest expense totaled $11.9 million for the three-month period ended December 28, 2019, compared with $12.2 million for the three-month period ended December 29, 2018. Total debt at the end of December 2019 was $850.0 million, compared with $880.0 million at the end of December 2018. During the current quarter, the Company refinanced $155 million of 5.75% debt with ten-year fixed rate secured debt at 2.95%. Debt extinguishment costs of $3.7 million were incurred to complete the transaction.\n\n\n\n\nBasic and diluted earnings per share for...