ASHEVILLE, N.C. — Ingles Markets here said Monday that same-store sales for the third quarter, excluding gasoline and adjusted for Easter, were up, but net income was down because of refinancing activities, the economic slowdown and increased store-development costs.
For the three-month period that ended June 27, net income totaled $4.7 million, vs. $16 million in the year-ago quarter. The results included $10.2 million of prepayment penalties and loan-cost write-offs related to the company issuance of $575 million in bonds in May of this year.
“We are pleased to have secured our financing for the next few years,” said Robert P. Ingle, chief executive officer, in a prepared statement. “The credit markets have been substantially closed for the past couple of years and could continue to be difficult for the foreseeable future. A window of opportunity opened in May, and we took advantage of favorable conditions to implement this refinancing.”
Total sales declined slightly for the quarter, to $826.8 million, vs. $835.3 million in the year-ago period. Same-store grocery sales, adjusted for the decline in the price of gasoline and the Easter shift, were up 1.9%.
Through three quarters, net income totaled $23.6 million, compared with $41.7 million in the year-ago period. Sales were up 1.1%, to $2.42 billion, vs. the year-ago, nine-month span. The company said the number of transactions through nine months was up 7.2%, while average transaction size declined 18 cents.
Read More of Today's Headlines
