Ingles Markets, based in Asheville, North Carolina, reported increased sales and net income for the three and twelve months ended Sept. 26, 2020.
Net sales totaled $1.20 billion for the quarter ended Sept. 26, 2020, an increase of 11.3 percent compared with $1.08 billion for the quarter ended Sept. 28, 2019.
Gross profit for the fourth quarter of fiscal 2020 totaled $324.5 million, or 27.1 percent of sales. Gross profit for the fourth quarter of fiscal 2019 was $260.3 million, or 24.2 percent of sales.
Operating and administrative expenses for the September 2020 quarter totaled $236.8 million compared with $222.2 million for the September 2019 quarter. Most of the increase was due to higher personnel costs incurred to support additional safety measures related to the pandemic, including a third appreciation bonus payment to full and part-time associates.
Interest expense totaled $8.7 million for the fourth quarter of fiscal 2020 compared with $11.6 million for the fourth quarter of fiscal 2019. Total debt at the end of fiscal 2020 was $605.5 million compared with $852.2 million at the end of fiscal 2019. The company continues to reduce debt and has refinanced debt at lower rates over the past twelve months. During the fourth quarter of fiscal 2020, the company incurred $3.4 million of debt extinguishment costs associated with $250 million of early repayment of debt.
Net income totaled $57.9 million for the September 2020 quarter compared with $20.9 million for the September 2019 quarter. Basic and diluted earnings per share for Class A Common Stock were $2.94 and $2.86, respectively, for the quarter ended Sept. 26, 2020, compared with $1.07 and $1.04, respectively, for the quarter ended Sept. 28, 2019. Basic and diluted earnings per share for Class B Common Stock were each $2.67 for the quarter ended Sept. 26, 2020, and $0.97 for the quarter ended Sept. 28, 2019.
Annual results
Net sales totaled $4.61 billion for the fiscal year ended September 2020, an increase of 9.7 percent compared with $4.20 billion for the fiscal year ended September 2019.
Gross profit for the fiscal year ended Sept. 26, 2020, totaled $1.20 billion, or 26.0 percent of sales. Gross profit for the fiscal year ended Sept. 28, 2019 totaled $1.02 billion, or 24.3 percent of sales.
Operating and administrative expenses totaled $921.7 million for the fiscal year ended Sept. 26, 2020, and $873.9 million for the fiscal year ended Sept. 28, 2019.
Interest expense was $40.5 million for the fiscal year ended Sept. 26, 2020, compared with $47.4 million for the fiscal year ended Sept. 28, 2019. The results for the fiscal year ended Sept. 26, 2020, include a $7.1 million loss on the early extinguishment of debt arising from the refinancing of certain fixed rate debt at a lower interest rate.
Net income totaled $178.6 million for the fiscal year ended September 26, 2020, compared with $81.6 million for the fiscal year ended Sept. 28, 2019. Basic and diluted earnings per share for Class A Common Stock were $9.06 and $8.82, respectively, for the fiscal year ended Sept. 26, 2020, compared with $4.14 and $4.03, respectively, for the fiscal year ended Sept. 28, 2019. Basic and diluted earnings per share for Class B Common Stock were each $8.24 for the fiscal year ended Sept. 26, 2020, compared with $3.76 of basic and diluted earnings per share for the fiscal year ended Sept. 28, 2019.
Capital expenditures for the September 2020 fiscal year totaled $122.8 million compared with $161.8 million for the September 2019 fiscal year. Capital expenditures are focused on stores that opened this fiscal year as well as stores scheduled to open later.
Ingles currently has $126.7 million available under its $175.0 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 coronavirus pandemic was declared a national emergency on March 13, 2020, and it has had a significant impact on the company’s operations since then. At this time, the company says it cannot predict the impact of the pandemic on future periods.
“We take seriously the safety of our customers and associates and continue to do our best to provide them a safe and clean environment,” said Robert P. Ingle II, chairman of the board.
Ingles continues to provide additional pandemic support to its communities, including increased donations to local food banks and purchases from local vendors.
