ASHEVILLE, N.C. - Ingles Markets, Incorporated (NASDAQ: IMKTA) today reported increased sales and net income for the three months ended December 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 were fortunate to have good sales and overall results for the quarter that includes Thanksgiving and Christmas. Despite supply chain disruptions from the Omicron variant, our associates did an excellent job of meeting customer needs under difficult circumstances.”
First Quarter Results
Net sales totaled $1.39 billion for the quarter ended December 25, 2021, an increase of 16.9% compared with $1.19 billion for the quarter ended December 26, 2020.
Gross profit for the first quarter of fiscal 2022 totaled $350.5 million, or 25.2% of sales. Gross profit for the first quarter of fiscal 2021 was $314.2 million, or 26.4% of sales.
Operating and administrative expenses for the December 2021 quarter totaled $260.1 million compared with $238.2 million for the December 2020 quarter. Most of the increase was due to higher personnel costs that reflect a tight labor market.
Interest expense totaled $5.4 million for the first quarter of fiscal 2022 compared with $6.4 million for the first quarter of fiscal 2021. Total debt at the end of December 2021 was $586.1 million compared with $587.9 million at the end of December 2020.
Net income totaled $66.2 million for the December 2021 quarter compared with $53.8 million for the December 2020 quarter. Basic and diluted earnings per share for Class A Common Stock were $3.57 and $3.48, respectively, for the quarter ended December 25, 2021, compared with $2.73 and $2.66, respectively, for the quarter ended December 26, 2020.
Capital expenditures for the December 2021 quarter totaled $21.3 million compared with $34.2 million for the December 2020 quarter.
The Company has no outstanding borrowings 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.
Ingles Markets, Incorporated is a leading supermarket chain 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 Company supermarkets and unaffiliated customers. The Company's Class A Common Stock is traded on The NASDAQ Stock Market's Global Select Market under the symbol IMKTA. For more information, visit Ingles' website at www.ingles-markets.com.