Ingles Markets, Incorporated Reports Results for Fourth Quarter and Fiscal Year 2022

Rhea-AI Summary

Ingles Markets (NASDAQ: IMKTA) reported solid financial results for Q4 and the fiscal year ended September 24, 2022, with net sales of $1.45 billion for Q4, up from $1.34 billion in the prior year. Comparable store sales rose 5.2% in Q4 and 7.7% for the fiscal year, driving annual sales to $5.68 billion. Net income for Q4 was $70.2 million, slightly down from $71.7 million year-over-year, while annual net income rose to $272.8 million. Gross profit margins decreased slightly year-over-year.

Overall, the company continues to focus on affordable offerings for customers.

Positive

• Net sales increased to $5.68 billion for the fiscal year, up from $4.99 billion.
• Annual net income rose to $272.8 million from $249.7 million.
• Comparable store sales increased by 7.7% for the fiscal year.
• Basic earnings per share for Class A Common Stock increased to $14.69 from $13.06.

Negative

• Net income in Q4 decreased to $70.2 million from $71.7 million.
• Gross profit margin for Q4 decreased to 25.1% from 25.6% year-over-year.
• Operating and administrative expenses rose to $1.0 billion from $963.3 million for the fiscal year.

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 24, 2022.

Robert P. Ingle II, Chairman of the Board, stated, “Ingles delivered strong results as we continue our focus on fresh, affordable offerings to our customers. We would like to thank all our dedicated associates for maintaining outstanding shopper conditions and providing value to our customers.”

Fourth Quarter Results

Net sales totaled $1.45 billion for the quarter ended September 24, 2022, compared with $1.34 billion for the quarter ended September 25, 2021. Excluding gasoline sales, comparable store sales increased 5.2% over the comparative fiscal quarter.

Gross profit for the fourth quarter of fiscal 2022 totaled $364.8 million, or 25.1% of sales. Gross profit for the fourth quarter of fiscal 2021 was $341.3 million, or 25.6% of sales.

Operating and administrative expenses for the September 2022 quarter totaled $268.0 million compared with $248.9 million for the September 2021 quarter.

Interest expense totaled $5.4 million for the fourth quarter of fiscal 2022 compared with $6.2 million for the fourth quarter of fiscal 2021. Total debt at the end of fiscal 2022 was $571.9 million compared with $589.5 million at the end of fiscal 2021.

Net income totaled $70.2 million for the September 2022 quarter compared with $71.7 million for the September 2021 quarter. Basic and diluted earnings per share for Class A Common Stock were $3.78 and $3.69, respectively, for the quarter ended September 24, 2022, compared with $3.86 and $3.78, respectively, for the quarter ended September 25, 2021. Basic and diluted earnings per share for Class B Common Stock were each $3.43 for the quarter ended September 24, 2022, and $3.51 for the quarter ended September 25, 2021.

Annual Results

Net sales totaled $5.68 billion for the fiscal year ended September 24, 2022, compared with $4.99 billion for the fiscal year ended September 25, 2021. Excluding gasoline sales, comparable store sales increased 7.7% over the comparative fiscal year.

Gross profit for the fiscal year ended September 24, 2022, totaled $1.42 billion, or 24.9% of sales. Gross profit for the fiscal year ended September 25, 2021, totaled $1.30 billion, or 26.1% of sales.

Operating and administrative expenses totaled $1.0 billion for the fiscal year ended September 24, 2022, and $963.3 million for the fiscal year ended September 25, 2021.

Interest expense was $21.5 million for the fiscal year ended September 24, 2022, compared with $24.3 million for the fiscal year ended September 25, 2021.

Net income totaled $272.8 million for the fiscal year ended September 24, 2022, compared with $249.7 million for the fiscal year ended September 25, 2021. Basic and diluted earnings per share for Class A Common Stock were $14.69 and $14.36, respectively, for the fiscal year ended September 24, 2022, compared with $13.06 and $12.73, respectively, for the fiscal year ended September 25, 2021. Basic and diluted earnings per share for Class B Common Stock were each $13.35 for the fiscal year ended September 24, 2022, compared with $11.87 of basic and diluted earnings per share for the fiscal year ended September 25, 2021.

Capital expenditures for the September 2022 fiscal year totaled $119.6 million compared with $140.6 million for the September 2021 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.

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 2022 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. 24,		Sept. 25,			Sept. 24,		Sept. 25,
		2022		2021			2022		2021
Net sales		$	1,452,020	$	1,335,457		$	5,678,835	$	4,987,920
Gross profit			364,783		341,279			1,415,768		1,303,433
Operating and administrative expenses			268,027		248,872			1,040,194		963,331
Gain from sale or disposal of assets			122		6,311			1,358		9,956
Income from operations			96,878		98,718			376,932		350,058
Other income, net			1,701		956			5,846		2,971
Interest expense			5,383		6,207			21,508		24,332
Loss on early extinguishment of debt			--		--			--		1,083
Income tax expense			23,030		21,723			88,511		77,883
Net income		$	70,166	$	71,744		$	272,759	$	249,731
Basic earnings per common share – Class A		$	3.78	$	3.86		$	14.69	$	13.06
Diluted earnings per common share – Class A		$	3.69	$	3.78		$	14.36	$	12.73
Basic earnings per common share – Class B		$	3.43	$	3.51		$	13.35	$	11.87
Diluted earnings per common share – Class B		$	3.43	$	3.51		$	13.35	$	11.87
Additional selected information:
Depreciation and amortization expense		$	29,278	$	26,194		$	117,802	$	117,104
Rent expense		$	2,331	$	2,765		$	10,874	$	11,145
Consolidated Balance Sheets
		Sept. 24,					Sept. 25,
		2022					2021
ASSETS
Cash and cash equivalents		$	267,199				$	70,313
Short term investments			--					5,000
Receivables-net			97,157					95,082
Inventories			457,946					389,953
Other current assets			15,830					15,092
Property and equipment-net			1,374,031					1,370,769
Other assets			83,348					72,135
TOTAL ASSETS		$	2,295,511				$	2,018,344
LIABILITIES AND STOCKHOLDERS' EQUITY
Current maturities of long-term debt		$	17,621				$	17,601
Accounts payable, accrued expenses and current portion of other long-term liabilities			316,157					288,497
Deferred income taxes			73,578					72,768
Long-term debt			554,287					571,913
Other long-term liabilities			74,274					84,306
Total Liabilities			1,035,917					1,035,085
Stockholders' equity			1,259,594					983,259
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY		$	2,295,511				$	2,018,344

 

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Ingles Markets, Inc.

Pat Jackson, CPA, Chief Financial Officer

pjackson@ingles-markets.com

(828) 669-2941 (Ext. 223)

Source: Ingles Markets, Incorporated

FAQ

What were Ingles Markets' Q4 2022 earnings for IMKTA?

In Q4 2022, Ingles Markets reported net income of $70.2 million.

How much did Ingles Markets earn in the fiscal year 2022?

In fiscal year 2022, Ingles Markets earned $272.8 million.

What was the net sales figure for Ingles Markets for Q4 2022?

In Q4 2022, Ingles Markets reported net sales of $1.45 billion.

How did the comparable store sales perform for Ingles Markets in fiscal year 2022?

Comparable store sales increased by 7.7% for the fiscal year 2022.