Ingles Markets, Incorporated Reports Results for Fourth Quarter and Fiscal Year 2021

About this update from Ingles Markets, Incorporated

ASHEVILLE, N.C. --(BUSINESS WIRE)-- Ingles Markets, Incorporated (NASDAQ: IMKTA) today reported increased sales and net income for the three and twelve months ended September 25, 2021 . The coronavirus (COVID-19) pandemic was declared a national emergency on March 13, 2020 . The pandemic has had a significant impact on the Company’s operations since then. At this time the Company cannot predict the impact of the pandemic on future periods. Robert P. Ingle II, Chairman of the Board, stated, “We had a successful year amidst ongoing difficulties caused by COVID-19. During this past year, we are thankful for our associates who continued to provide customers with needed products and services.” Fourth Quarter Results Net sales totaled $1.34 billion for the quarter ended September 25, 2021 , an increase of 11.6% compared with $1.20 billion for the quarter ended September 26, 2020 . Gross profit for the fourth quarter of fiscal 2021 totaled $341.3 million , or 25.6% of sales. Gross profit for the fourth quarter of fiscal 2020 was $324.5 million , or 27.1% of sales. Operating and administrative expenses for the September 2021 quarter totaled $248.9 million compared with $236.8 million for the September 2020 quarter. Most of the increase was due to higher personnel costs incurred to support higher sales and additional safety measures related to the pandemic. Interest expense totaled $6.2 million for the fourth quarter of fiscal 2021 compared with $8.7 million for the fourth quarter of fiscal 2020. Total debt at the end of fiscal 2021 was $589.5 million compared with $605.5 million at the end of fiscal 2020. Interest expense declined as the Company continues to reduce debt and has refinanced debt at lower rates over the past twelve months. Net income totaled $71.7 million for the September 2021 quarter compared with $57.9 million for the September 2020 quarter. Basic and diluted earnings per share for Class A Common Stock were $3.86 and $3.78 , respectively, for the quarter ended September 25, 2021 , compared with $2.94 and $2.86 , respectively, for the quarter ended September 26, 2020 . Basic and diluted earnings per share for Class B Common Stock were each $3.51 for the quarter ended September 25, 2021 , and $2.67 for the quarter ended September 26, 2020 . Annual Results Net sales totaled $4.99 billion for the fiscal year ended September 2021 , an increase of 8.2% compared with $4.61 billion for the fiscal year ended September 2020 . Gross profit for the fiscal year ended September 25, 2021 , totaled $1.30 billion , or 26.1% of sales. Gross profit for the fiscal year ended September 26, 2020 , totaled $1.20 billion , or 26.0% of sales. Operating and administrative expenses totaled $963.3 million for the fiscal year ended September 25, 2021 , and $921.7 million for the fiscal year ended September 26, 2020 . Interest expense was $24.3 million for the fiscal year ended September 25, 2021 , compared with $40.5 million for the fiscal year ended September 26, 2020 . Net income totaled $249.7 million for the fiscal year ended September 25, 2021 , compared with $178.6 million for the fiscal year ended September 26, 2020 . Basic and diluted earnings per share for Class A Common Stock were $13.06 and $12.73 , respectively, for the fiscal year ended September 25, 2021 , compared with $9.06 and $8.82 , respectively, for the fiscal year ended September 26, 2020 . Basic and diluted earnings per share for Class B Common Stock were each $11.87 for the fiscal year ended September 25, 2021 , compared with $8.24 of basic and diluted earnings per share for the fiscal year ended September 26, 2020 . Capital expenditures for the September 2021 fiscal year totaled $140.6 million compared with $122.8 million for the September 2020 fiscal year. Capital expenditures for fiscal 2021 were focused on stores that opened this fiscal year as well as stores scheduled to open later. 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. Ingles continues to provide additional pandemic support to its communities, including increased donations to local food banks and purchases from local vendors. The comments in this press release contain certain forward-looking statements. Ingles undertakes no obligation to publicly release any revisions to any forward-looking statements contained herein to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events, except as required by law. Ingles’ actual results may differ materially from those projected in forward-looking statements made by, or on behalf of, Ingles. Factors that may affect results include changes in business and economic conditions generally in Ingles’ operating area, pricing pressures, increased competitive efforts by others in Ingles’ marketing areas and the availability of financing for capital improvements. A more detailed discussion of these factors may be found in reports filed by the Company with the Securities and Exchange Commission including its 2021 Form 10-K and Forms 10-Q. 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 . INGLES MARKETS, INCORPORATED (Amounts in thousands except per share data) Unaudited Financial Highlights Consolidated Statements of Income Quarter Ended Year Ended Sept. 25 , Sept. 26 , Sept. 25 , Sept. 26 , 2021 2020 2021 2020 Net sales $ 1,335,457 $ 1,197,172 $ 4,987,920 $ 4,610,609 Gross profit 341,279 324,454 1,303,433 1,198,252 Operating and administrative expenses 248,872 236,778 963,331 921,749 Gain from sale or disposal of assets 6,311 23 9,956 4,434 Income from operations 98,718 87,699 350,058 280,937 Other income, net 956 706 2,971 1,737 Interest expense 6,207 8,681 24,332 40,529 Loss on early extinguishment of debt -- 3,382 1,083 7,101 Income tax expense 21,723 18,473 77,883 56,443 Net income $ 71,744 $ 57,869 $ 249,731 $ 178,601 Basic earnings per common share – Class A $ 3.86 $ 2.94 $ 13.06 $ 9.06 Diluted earnings per common share – Class A $ 3.78 $ 2.86 $ 12.73 $ 8.82 Basic earnings per common share – Class B $ 3.51 $ 2.67 $ 11.87 $ 8.24 Diluted earnings per common share – Class B $ 3.51 $ 2.67 $ 11.87 $ 8.24 Additional selected information: Depreciation and amortization expense $ 26,194 $ 29,969 $ 117,104 $ 116,282 Rent expense $ 2,765 $ 3,676 $ 11,145 $ 11,107 Consolidated Balance Sheets Sept. 25 , Sept. 26 , 2021 2020 ASSETS Cash and cash equivalents $ 70,313 $ 6,904 Short term investments 5,000 -- Receivables-net 95,082 81,358 Inventories 389,953 366,824 Other current assets 15,092 15,100 Property and equipment-net 1,370,769 1,354,490 Other assets 72,135 74,623 TOTAL ASSETS $ 2,018,344 $ 1,899,299 LIABILITIES AND STOCKHOLDERS' EQUITY Current maturities of long-term debt $ 17,601 $ 19,306 Accounts payable, accrued expenses and current portion of other long-term liabilities 288,497 304,507 Deferred income taxes 72,768 73,334 Long-term debt 571,913 586,198 Other long-term liabilities 84,306 96,623 Total Liabilities 1,035,085 1,079,968 Stockholders' equity 983,259 819,331 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,018,344 $ 1,899,299 View source version on businesswire.com : https://www.businesswire.com/news/home/20211124005691/en/ Ingles Markets, Inc. Ron Freeman , Chief Financial Officer [email protected] (828) 669-2941 (Ext. 223) Source: Ingles Markets, Incorporated

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