INDIANAPOLIS, Feb. 20, 2001 (PRIMEZONE) -- Marsh Supermarkets, Inc. (Nasdaq:MARSA) (Nasdaq:MARSB) reports results of operations for the 12 weeks ended January 6, 2001.
Sales and other revenues for the third quarter were $429,817,000 -- up 2.4% from the prior year's $419,582,000. For the quarter, net income was $3,835,000 compared to $3,256,000 last year. Earnings per diluted share were $0.42 versus $0.35 last year -- a 20% increase. During the quarter, the Company revised the estimated useful lives used to depreciate building, leaseholds and land improvements and wrote-off its minority interest in an investment. The result increased net income by $303,000.
Operating income was $12,092,000 compared to $9,973,000 last year -- a 21.2% improvement. This is the eighteenth consecutive quarter of operating income improvement.
For the quarter, EBITDA was $18,893,000 compared to $16,583,000 last year -- a 13.9% improvement.
"We are extremely pleased with this quarter's results," said Don E. Marsh, Chairman and CEO of Marsh Supermarkets, Inc. "Not only is this our eighteenth consecutive quarter of operating income improvement, we are particularly delighted with our 14% increase in EBITDA, an important measurement for our bond investors." EBITDA is earnings before interest, taxes, depreciation and amortization.
The Company continues to invest in new stores and, as a result, interest expense was $5,529,000 versus $5,075,000 last year.
To date, the Company has spent $11.9 million of the $12.0 million authorized under the previously announced stock repurchase plan. The Board of Directors has authorized the repurchase of up to an additional $3.0 million of common stock. The ability of the Company to complete the repurchase, in whole or in part, is subject to known and unknown risks and uncertainties.
During the quarter, Marsh opened two new upscale supermarkets. Village Pantry opened an acquired store, a replacement store, a new store and a fuel kiosk on a supermarket parking lot.
Subsequent to quarter end, Village Pantry acquired three convenience stores and McNamara Florist opened a new retail location.
Marsh is a leading regional chain operating 72 Marsh(r), 27 LoBill Foods(r), 35 pharmacies, 187 Village Pantry(r) convenience stores and two Savin*$(r) limited selection, every-day low-price stores. The Company also operates Convenience Store Distributing Company, a wholesale distributor serving 1,005 non-affiliated stores in seven states; Crystal Food Service(tm), a specialist in catering, business cafeteria management, vending, office coffee and concessions; Primo Banquet catering and Conference Centers; and McNamara Florist, and Enflora(r) -- Flowers for Business.
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, adverse developments regarding customer retention, the ability to predict the impact of the revision in 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
Jan. 6, Jan. 1, Jan. 6, Jan. 1,
2001 2000 2001 2000
---- ---- ---- ----
Sales and other
revenues $ 429,817 $ 419,582 $1,467,071 $1,348,451
Cost of merchandise
sold, including
warehousing and
transportation 316,980 316,453 1,100,637 1,018,190
------- ------- --------- ---------
Gross profit 112,837 103,129 366,434 330,261
Selling, general
and administrative 95,548 87,209 312,301 280,751
Depreciation 5,197 5,947 19,801 19,620
------- ------- --------- ---------
Operating income 12,092 9,973 34,332 29,890
Interest and debt
cost amortization 5,529 5,075 19,158 16,506
Other non-operating
(income) expense 811 13 1,000 ( 113)
------- ------- --------- ---------
Income before
income taxes 5,752 4,885 14,174 13,497
Income taxes 1,917 1,629 4,723 4,344
------- ------- --------- ---------
Net income $ 3,835 $ 3,256 $ 9,451 $ 9,153
======= ======= ========= =========
Earnings per
common share $ .47 $ .39 $ 1.15 $ 1.10
======= ======= ========= =========
Earnings per
common share -
assuming dilution $ .42 $ .35 $ 1.05 $ 1.00
======= ========== ========== ========
Dividends per
share $ .11 $ .11 $ .33 $ .33
======= ========== ========== ========
MARSH SUPERMARKETS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
January 6, January 1,
2001 2000
---- ----
Assets
Current assets:
Cash and equivalents $ 34,927 $ 30,912
Accounts receivable 43,012 38,567
Inventories, less LIFO
reserve: January 6, 2001
- $8,593;
January 1, 2000 - $11,979 133,288 120,272
Prepaid expenses 5,809 6,124
Recoverable income taxes -- 1,190
-------- --------
Total current assets 217,036 197,065
Property and equipment,
less allowances for
depreciation 307,156 298,871
Other assets 53,362 54,501
-------- --------
$577,554 $550,437
======== ========
Liabilities and Shareholders' Equity
Current liabilities:
Notes payable to bank $ 600 $ --
Accounts payable 89,502 77,296
Accrued liabilities 60,330 53,132
Current maturities of
long-term liabilities 2,786 3,228
-------- --------
Total current liabilities 153,218 133,656
Long-term liabilities:
Long-term debt 244,565 244,407
Capital lease obligations 13,885 14,367
-------- --------
Total long-term liabilities 258,450 258,774
Deferred items:
Income taxes 12,883 12,103
Other 16,269 14,447
-------- --------
Total deferred items 29,152 26,550
Shareholders' Equity:
Common stock, Classes A and B 25,593 25,449
Retained earnings 124,065 115,183
Cost of common stock
in treasury ( 10,964) ( 6,941)
Deferred cost -
restricted stock ( 1,036) ( 1,769)
Notes receivable -
stock options ( 924) ( 465)
-------- --------
Total shareholders' equity 136,734 131,457
-------- --------
$577,554 $550,437
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