INDIANAPOLIS, Feb. 14, 2002 (PRIMEZONE) -- Marsh Supermarkets, Inc. (Nasdaq:MARSA) (Nasdaq:MARSB) reports results of operations for the 12 weeks ended January 5, 2002.
Third quarter net income was $3,355,000 compared with $3,835,000 last year. This is $0.38 per diluted share versus $0.42 last year. The quarter's results included a net loss of $390,000 or $0.04 on a discontinued operation. Last quarter, the sale of Convenience Store Distributing Company, a wholesale distribution specialist, was announced.
On a continuing operations basis, third quarter net income was $3,745,000 versus $3,538,000 last year and is $0.42 per diluted share compared to $0.39 in the year ago quarter.
For the year to date, earnings from continuing operations were $9,442,000 compared to $7,796,000 last year -- an increase of 21.1%. This is $1.07 per diluted share versus $0.88 last year.
The following results are for continuing operations only and exclude discontinued operations unless otherwise noted.
Sales and other revenues were $385,835,000 compared to $372,123,000 last year, an increase of 3.7%. Comparable store sales were 0.4% over last year and 2.9% year to date.
Several factors contributed to the quarter's comparable store sales being below the year to date result. The soft economy, unseasonably warm winter weather, and increased supermarket square footage contrasts to last year's robust economy, heavy snowfall, cold temperatures, and fewer new supermarkets open less than one year. "I am pleased that we have been able to maintain positive comp sales in a marketplace with 21 major new supermarkets open less than one year, a record number," said Don E. Marsh, Chairman and Chief Executive Officer.
During the quarter, the Company opened two new upscale Marsh Supermarkets, and one Marsh store was closed to consolidate sales into a store acquired during the second quarter. Subsequent to quarter end, the Company converted one Marsh supermarket to the LoBill Foods banner.
Marsh Supermarkets, one of the largest regional grocery chains in the United States, operates 68 Marsh(r), 33 LoBill Foods(r) stores, 2 Savin*$(r), 8 O'Malia Food Markets, and 193 Village Pantry(r) convenience stores in central Indiana and western Ohio. The Company also operates Crystal Food Services(tm) which provides upscale catering, cafeteria management, office coffee, vending and concessions, Primo Banquet Catering and Conference Centers, McNamara Florist and Enflora -- Flowers for Business(r).
Marsh is a publicly held company whose stock is traded on the Nasdaq National Market System (MARSA and MARSB).
Cautionary Note Regarding Forward-Looking Statements
This report includes certain forward-looking statements (statements other than those made solely with respect to historical fact). Actual results could differ materially and adversely from those contemplated by the forward-looking statements due to known and unknown risks and uncertainties. The forward-looking statements and the Company's future results, liquidity and capital resources are subject to the following risks and uncertainties: softness in the general retail food industry, the entry of new competitive stores and e-retailers in the Company's market, the ability to predict the impact of the revision of the estimated useful lives of building and land improvements, the impact of any acquisitions or dispositions, the stability of distribution incentives from suppliers, the level of discounting by competitors, the timely and on budget completion of store construction, expansion, conversion and remodeling, the ability to complete authorized share repurchases, the successful integration of acquisitions, uncertainties relating to tobacco and environmental regulations, and the level of margins achievable in the Company's operating divisions and their ability to minimize operating expenses. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.
MARSH SUPERMARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
12 Weeks Ended 40 Weeks Ended
---------------------- ----------------------
January 5, January 6, January 5, January 6,
2002 2001 2002 2001
--------- --------- --------- ---------
Sales and other
revenues $385,835 $372,123 $1,269,316 $1,192,491
Cost of merchandise
sold, including
warehousing and
transportation 267,749 261,633 888,515 835,136
--------- --------- --------- ---------
Gross profit 118,086 110,490 380,801 357,355
Selling, general
and
administrative 101,587 94,177 332,330 307,566
Depreciation 5,779 5,069 17,476 19,271
--------- --------- --------- ---------
Operating income 10,720 11,244 30,995 30,518
Interest 5,138 5,137 16,923 17,890
Other non-operating
expense -- 811 -- 1,000
--------- --------- --------- ---------
Income from
continuing
operations before
income taxes 5,582 5,296 14,072 11,628
Income taxes 1,837 1,758 4,630 3,832
--------- --------- --------- ---------
Income from
continuing
operations 3,745 3,538 9,442 7,796
Discontinued operation:
Income (loss) from
operations, net of
tax (390) 297 (1,249) 1,655
Gain on disposal,
net of tax -- -- 3,275 --
--------- --------- --------- ---------
Net income $ 3,355 $ 3,835 $ 11,468 $ 9,451
========= ========= ========= =========
Basic earnings per
common share:
Continuing operations $ .47 $ .43 $ 1.19 $ .95
Discontinued operation (.05) .04 (.16) .20
Gain on disposal of
discontinued
operation -- -- .41 --
--------- --------- --------- ---------
Net income $ .42 $ .47 $ 1.44 $ 1.15
========= ========= ========= =========
Diluted earnings per
common share:
Continuing operations $ .42 $ .39 $ 1.07 $ .88
Discontinued operation (.04) .03 (.13) .17
Gain on disposal of
discontinued
operation -- -- .35 --
--------- --------- --------- ---------
Net income $ .38 $ .42 $ 1.29 $ 1.05
========= ========= ========= =========
Dividends per share $ .11 $ .11 $ .33 $ .33
========= ========= ========= =========
MARSH SUPERMARKETS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
Jan. 5, Jan. 6,
2002 2001
---- ----
Assets
Current assets:
Cash and equivalents $ 33,536 $ 34,927
Accounts receivable 36,128 43,012
Inventories, less LIFO reserve:
January 5, 2002 - $2,636; January 6,
2001 - $8,593 139,108 133,288
Prepaid expenses 5,928 5,809
--------- ---------
Total current assets 214,700 217,036
Property and equipment, less
allowances for depreciation 317,058 307,156
Other assets 54,093 53,362
--------- ---------
$ 585,851 $ 577,554
========= =========
Liabilities and Shareholders' Equity
Current liabilities:
Notes payable to bank $ 2,900 $ 600
Accounts payable 72,255 89,502
Accrued liabilities 61,962 60,330
Current maturities of long-term
liabilities 2,558 2,786
--------- ---------
Total current liabilities 139,675 153,218
Long-term liabilities:
Long-term debt 245,474 244,565
Capital lease obligations 15,160 13,885
--------- ---------
Total long-term liabilities 260,634 258,450
Deferred items:
Income taxes 16,641 12,883
Other 23,252 16,269
--------- ---------
Total deferred items 39,893 29,152
Shareholders' Equity:
Common stock, Classes A and B 26,158 25,593
Retained earnings 134,473 124,065
Cost of common stock in treasury (13,613) (10,964)
Notes receivable - stock options (1,024) (1,036)
Deferred cost restricted stock (345) (924)
--------- ---------
Total shareholders' equity 145,649 136,734
--------- ---------
$ 585,851 $ 577,554
========= =========