INDIANAPOLIS, June 2, 2005 (PRIMEZONE) -- Marsh Supermarkets, Inc. (Nasdaq:MARSA) (Nasdaq:MARSB) reports results of operations for the 13 and 53 weeks ended April 2, 2005.
For the 13 week fourth quarter ended April 2, 2005, total revenues were $419,050,000 compared to $376,365,000 for the 12 week quarter last year. Retail sales in comparable supermarkets and convenience stores were above last year by 3.1%. Comparable store merchandise sales, which exclude gasoline sales, increased 1.8% from last year (see Note).
Net loss for the quarter was $1,433,000, or $0.18 per diluted share, compared to a net loss of $1,228,000, or $0.15 per diluted share, last year. Pre-tax operating results for the quarter included, (a) the receipt of $2.4 million in settlement of litigation against two of the Company's general liability insurance carriers for costs related to the remediation of petroleum contamination, (b) $0.9 million in expense to settle a claim brought by a former officer of the Company, and (c) an $0.8 million charge to depreciation to correct the Company's accounting for leases.
During the fourth quarter, the Company opened a Marsh supermarket to replace a LoBill store that closed. One Village Pantry location was closed.
Net income for the fiscal year ended April 2, 2005, was $4,162,000, or $0.52 per diluted share, compared to $3,037,000, or $0.38 per diluted share, last year. Income before income taxes at $6,545,000 compares to $5,556,000 last year.
Total revenues were $1,747,436,000 for the 53 week 2005 fiscal year compared to $1,653,915,000 for the 52 week 2004 fiscal year. Retail sales in comparable supermarkets and convenience stores, were above last year by 1.6% on a 52-week basis. Comparable store merchandise sales, which exclude gasoline, declined 0.8% from last year, also on a 52-week basis.* The decline was attributable to a continuing weak local economy and competitive new supermarket square footage. The Company excludes gasoline sales from its analysis of comparable store merchandise sales because retail gasoline prices fluctuate widely and frequently.
"We are pleased that, while 20 competitors' supermarkets have been built or remodeled during the past two years, fourth quarter comparable store customer count was equal to the year earlier quarter. We will continue to distinguish ourselves from our competitors by delivering superior products and service, and by guaranteeing customer satisfaction," said Don E. Marsh, Chairman and Chief Executive Officer.
Marsh is a leading regional chain, operating 69 Marsh(R) supermarkets, 38 LoBill(R) Foods stores, eight O'Malia(R) Food Markets, 161 Village Pantry(R) convenience stores, one Arthur's Fresh Market and one Savin*$(SM), in Indiana and western Ohio. The Company also operates Crystal Food Services(SM), which provides upscale catering, cafeteria management, office coffee, coffee roasting, vending and concessions; Primo Banquet Catering and Conference Centers; Floral Fashions(R), McNamara(R) 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, many of which are beyond the Company's control. The forward-looking statements and the Company's future results, liquidity and capital resources are subject to risks and uncertainties including, but not limited to, the following: the entry of new competitive stores and their impact on the Company; the level of discounting and promotional spending by competitors; the Company's ability to improve comparable store sales; the level of margins achievable in the Company's operating divisions; the stability and timing of distribution incentives from suppliers; softness in the local economy: the Company's ability to control expenses including employee medical costs, labor, credit card fees, and workers compensation and general liability expense; uncertainties regarding gasoline prices and margins; the success of the Company's new and remodeled stores; uncertainties regarding future real estate gains due to limited real estate holdings available for sale; potential interest rate increases on variable rate debt, as well as terms, costs and the availability of capital; the Company's ability to collect outstanding notes and accounts receivable; uncertainties related to state and federal taxation and tobacco and environmental legislation; uncertainties associated with pension and other retirement obligations; uncertainties related to the outcome of pending litigation; the timely and on budget completion of store construction, conversion and remodeling; and other known and unknown risks and uncertainties. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.
Note: See attached schedule - Reconciliation of Sales and Other Comparable Revenues
MARSH SUPERMARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
13 Weeks 12 Weeks 53 Weeks 52 Weeks
Ended Ended Ended Ended
April 2, March 27, April 2, March 27,
2005 2004 2005 2004
--------- --------- ---------- ----------
Sales and other
revenues $ 418,387 $ 375,486 $1,743,609 $1,650,868
Gains from sales
of property 663 879 3,827 3,047
--------- --------- ---------- ----------
Total revenues 419,050 376,365 1,747,436 1,653,915
Cost of merchandise
sold, including
warehousing and
transportation,
excluding depreciation 296,482 262,902 1,231,840 1,156,255
--------- --------- ---------- ----------
Gross profit 122,568 113,463 515,596 497,660
Selling, general
and administrative 115,045 104,956 466,179 449,002
Depreciation 6,563 5,810 25,950 25,013
--------- --------- ---------- ----------
Operating income 960 2,697 23,467 23,645
Interest 4,751 4,287 19,213 19,050
Other non-operating
income (1,453) -- (2,291) (961)
--------- --------- ---------- ----------
Income before income
taxes (2,338) (1,590) 6,545 5,556
Income taxes (905) (362) 2,383 2,519
--------- --------- ---------- ----------
Net income $ (1,433) $ (1,228) $ 4,162 $ 3,037
========= ========= ========== ==========
Earnings per common
share:
Basic $ (.18) $ (.15) $ .53 $ .38
Diluted (.18) $ (.15) $ .52 $ .38
Dividends declared
per share $ .13 $ .13 $ .52 $ .52
MARSH SUPERMARKETS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
April 2, March 27,
2005 2004
--------- ---------
Assets
Current Assets:
Cash and equivalents $ 27,364 $ 27,584
Accounts receivable 22,153 23,864
Inventories 132,758 126,840
Prepaid expenses 6,619 6,495
Recoverable income taxes 841 5,400
--------- ---------
Total Current Assets 189,735 190,183
Property and equipment 307,816 297,028
Other assets 49,317 55,194
--------- ---------
Total Assets $ 546,868 $ 542,405
========= =========
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable $ 75,786 $ 80,614
Accrued liabilities 54,941 48,170
Current maturities of long-term
liabilities 48,444 3,427
--------- ---------
Total Current Liabilities 179,171 132,211
Long-Term Liabilities:
Long-term debt 133,268 174,161
Capital lease obligations 27,212 28,188
Pension and post-retirement benefits 52,229 42,725
--------- ---------
Total Long-Term Liabilities 212,709 245,074
Deferred Items:
Income taxes 8,823 18,309
Gains from sale/leasebacks 16,487 15,238
Other 5,363 3,297
--------- ---------
Total Deferred Items 30,673 36,844
Shareholders' Equity:
Common stock, Classes A and B 26,630 26,570
Retained earnings 130,890 130,813
Cost of common stock in treasury (15,755) (15,011)
Deferred cost restricted stock (137) (211)
Notes receivable - stock purchase (11) (11)
Accumulated other comprehensive loss (17,302) (13,874)
--------- ---------
Total Shareholders' Equity 124,315 128,276
--------- ---------
Total Liabilities and
Shareholders' Equity $ 546,868 $ 542,405
========= =========
MARSH SUPERMARKETS, INC.
RECONCILIATION OF SALES AND OTHER COMPARABLE REVENUES ($000)
April 2, March 27,
2005 2004
----------- -----------
Fiscal year
-----------
Total revenues 1,747,436 1,653,915 5.65%
Less: other revenues,
non-comparable sales and
gains from sales of
property(a) including
53rd week 174,225 105,619
----------- -----------
Comparable supermarket and
convenience store sales 1,573,211 1,548,296 1.61%
Less: comparable gasoline
sales(b) 153,265 117,609
----------- -----------
Comparable supermarket
and convenience store
merchandise sales(c) 1,419,946 1,430,687 (0.75)%
=========== ===========
4th Quarter
-----------
Total revenues 419,050 376,365 11.34%
Less: other revenues,
non-comparable sales and
gains from sales of
property(a) including
13th week 55,998 24,094
----------- -----------
Comparable supermarket and
convenience store sales 363,052 352,271 3.06%
Less: comparable gasoline
sales(b) 34,640 29,491
----------- -----------
Comparable supermarket
and convenience store
merchandise sales(c) 328,413 322,780 1.75%
=========== ===========
(a) Other revenues and non-comparable sales include sales and
revenues of both Crystal Food Services and McNamara, as well as
supermarket and convenience store revenues from video rental,
lottery tickets, check cashing fees and other sources.
(b) The Company excludes gasoline sales from its analysis of
comparable store sales because retail gasoline prices can
fluctuate widely and frequently, making analytical comparisons
difficult.
(c) Comparable stores include stores open at least one full year,
replacement stores and format conversions.