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Ingles Feels Effects of Gas Prices, Refinancing Costs in Q1

Sales and comps rise on higher rings. Sales and comps increased on higher rings and a small increase in traffic during the holiday period.

Jon Springer, Executive Editor

February 10, 2020

1 Min Read
Ingles
Sales and comps increased on higher rings and a small increase in traffic during the holiday period.Photograph by WGB staff

Falling gasoline prices and expenses associated with a debt payoff helped to trigger a decrease in net earnings for Ingles Markets during its fiscal first quarter, despite overall increases in sales and comps during the holiday season.

Asheville, N.C.-based Ingles, which operates 198 stores in the Southeast, reported a 1.6% sales increase on $1.08 billion in the quarter, which ended Dec. 28. Comps, excluding gasoline, increased by 2.4%, reflecting an average basket increase of 2.3% and a 0.2% increase in visits.

“We were pleased with our sales growth during the important holiday period. We completed a successful long-term financing that will lower our interest cost for many years to come,” said Robert P. Ingle II, chairman of the company, in a statement.

Net income for the quarter totaled $17.7 million, down by 20.3% as compared the same period last year. Ingles said lower profits and gasoline sales, which had lower per-gallon prices in the quarter than the same period a year ago, contributed to the profit erosion, as did $3.7 million in expenses associated with a debt refinancing. That event refinanced $155 million of 5.75% debt with 10-year fixed-rate secured debt at 2.95%.

Total debt at the end of the quarter totaled $850 million. Diluted earnings per share for the company’s publicly traded Class A stock was 87 cents, down from $1.09 a year ago.

Ingles stock, which is typically lightly traded, is down by more than 24% year to date.

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About the Author

Jon Springer

Executive Editor

Jon Springer is executive editor of Winsight Grocery Business with responsibility for leading its digital news team. Jon has more than 20 years of experience covering consumer business and retail in New York, including more than 14 years at the Retail/Financial desk at Supermarket News. His previous experience includes covering consumer markets for KPMG’s Insiders; the U.S. beverage industry for Beverage Spectrum; and he was a Senior Editor covering commercial real estate and retail for the International Council of Shopping Centers. Jon began his career as a sports reporter and features editor for the Cecil Whig, a daily newspaper in Elkton, Md. Jon is also the author of two books on baseball. He has a Bachelor of Arts degree in English-Journalism from the University of Delaware. He lives in Brooklyn, N.Y. with his family.

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