SPRINGFIELD, N.J., March 5, 2008 (PRIME NEWSWIRE) -- Village Super Market, Inc. (Nasdaq:VLGEA) today reported its results of operations for the second quarter ended January 26, 2008.
Net income was $6,439,000 in the second quarter of fiscal 2008, an increase of 27% from the second quarter of the prior year. Net income improved primarily due to improved sales and gross profit percentages.
Sales were $292,829,000 in the second quarter of fiscal 2008, an increase of 8.3% from the second quarter of the prior year. Sales increased due to the opening of new stores in Galloway, New Jersey on October 3, 2007 and Franklin Township, New Jersey on November 7, 2007 and a 2.3% increase in same store sales. Same store sales increased due to improved sales in one store due to the closing of a store by a competitor, higher sales in the Somers Point replacement store and food inflation. These improvements were partially offset by reduced sales in five stores due to three competitive store openings and cannibalization from the opening of the Galloway and Franklin stores. We expect same store sales in the third quarter of fiscal 2008 of -1% to +1% based on our February sales, as consumers appear to be more cautious due to concerns about the economy and rising fuel and food prices.
Net income was $10,737,000 in the six-month period of fiscal 2008, an increase of 16% from the prior year. Sales for the six-month period of fiscal 2008 were $556,388,000, an increase of 6.6% from the prior year. Same store sales increased 2.9%.
Village Super Market operates a chain of 25 supermarkets under the ShopRite name in New Jersey and eastern Pennsylvania.
All statements, other than statements of historical fact, included in this Press Release are or may be considered forward-looking statements within the meaning of federal securities law. The Company cautions the reader that there is no assurance that actual results or business conditions will not differ materially from future results, whether expressed, suggested or implied by such forward-looking statements. The Company undertakes no obligation to update forward-looking statements to reflect developments or information obtained after the date hereof. The following are among the principal factors that could cause actual results to differ from the forward-looking statements: local economic conditions; competitive pressures from the Company's operating environment; the ability of the Company to maintain and improve its sales and margins; the ability to attract and retain qualified associates; the availability of new store locations; the availability of capital; the liquidity of the Company; the success of operating initiatives; consumer spending patterns; the impact of higher energy prices; increased cost of goods sold, including increased costs from the Company's principal supplier, Wakefern; the results of litigation; the results of tax examinations; the results of union contract negotiations; competitive store openings; the rate of return on pension assets; and other factors detailed herein and in the Company's filings with the SEC.
VILLAGE SUPER MARKET, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
-----------------------------------------------
(in Thousands except Per Share Amounts)
(Unaudited)
13 Wks. 13 Wks. 26 Wks. 26 Wks.
Ended Ended Ended Ended
Jan. 26, Jan. 27, Jan. 26, Jan. 27,
2008 2007 2008 2007
------- ------- ------- -------
Sales $ 292,829 $ 270,396 $ 556,388 $ 521,865
Cost of sales 213,416 198,824 406,760 382,915
------- ------- ------- -------
Gross profit 79,413 71,572 149,628 138,950
Operating and
administrative
expense 64,793 59,933 124,713 117,115
Depreciation
and
amortization 3,437 3,088 6,626 6,075
------- ------- ------- -------
Operating income 11,183 8,551 18,289 15,760
Interest expense (832) (667) (1,439) (1,381)
Interest income 770 830 1,758 1,599
------- ------- ------- -------
Income before
income taxes 11,121 8,714 18,608 15,978
Income taxes 4,682 3,651 7,871 6,695
------- ------- ------- -------
Net income $ 6,439 $ 5,063 $ 10,737 $ 9,283
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Net income
per share(1):
Class A Common
Stock: Revised Revised
------- -------
Basic $ 1.22 $ .96 $ 2.03 $ 1.77
Diluted $ .98 $ .78 $ 1.63 $ 1.43
Class B Common
Stock:
Basic $ .79 $ .63 $ 1.32 $ 1.15
Diluted $ .77 $ .61 $ 1.29 $ 1.12
Gross profit
as a %
of sales 27.1% 26.5% 26.9% 26.6%
Operating and
Administrative
expense as a
% of sales 22.1% 22.2% 22.4% 22.4%
(1) Net income per share is computed utilizing the two-class method. The two-class method is an earnings allocation formula that calculates net income per share for each class of common stock separately based on dividends declared and participation rights in undistributed earnings. Net income per share for the prior period has been revised to reflect the two-class method.