Marsh Supermarkets, Inc. First Quarter Results Of Operations Reports Operating Income Up 12%

INDIANAPOLIS, Indiana, UNITED STATES


INDIANAPOLIS, July 31, 2000 (PRIMEZONE) Marsh Supermarkets, Inc. (Nasdaq:MARSA) and (Nasdaq:MARSB) reports results of operations for the 12 weeks ended June 24, 2000.

Sales and other revenues for the first quarter were $436,609,000 - up 10.7% from last year's $394,266,000. Sales in comparable stores increased 3.2%. Of the $42 million increase in revenues, $27 million was from retail and $15 million was from wholesale operations.

Operating income was $10,970,000 compared to $9,820,000 last year - an 11.7% improvement. "We are again pleased to report a double-digit percentage increase in operating earnings," said Don E. Marsh, Chairman and Chief Executive Officer. "This is our sixteenth consecutive quarter of operating income improvement and our comparable store sales gains continue to reflect the strength of our marketing program."

For the quarter, net income was $3,477,000 compared to $3,281,000 last year - a 6.0% increase. Earnings per diluted share were 38¢ versus 36¢ last year - a 5.6% increase.

In the first quarter, the Company acquired Ross Supermarkets, a five store chain in Muncie, Indiana. LoBill Foods opened two stores. Village Pantry opened two new convenience stores and their first fuel kiosk on a supermarket parking lot. Primo Banquet Catering and Conference Centers, a mid-level caterer operating three venues in the metro Indianapolis area, was also purchased during the quarter.

Marsh is a leading regional chain operating 70 Marsh(r), 24 LoBill Foods(r) and 5 Ross supermarkets, 181 Village Pantry( convenience stores and one Savin*$(r) limited selection, every day low price store. The Company also operates Convenience Store Distributing Company, a wholesale distributor serving 1,300 non-affiliated stores in nine states; Crystal Food Service(tm), a specialist in catering, business cafeteria management, vending and concessions; Primo Banquet Catering and Conference Centers; McNamara Florist and Enflora - Flowers for Business.


               MARSH SUPERMARKETS, INC.
       CONDENSED CONSOLIDATED STATEMENTS OF INCOME
        (in thousands except per share amounts)
                       (Unaudited)
 
                                             __12 Weeks Ended
                                        June 24,          June 19,
                                          2000              1999
                                        --------          --------
 
 Sales and other revenues               $436,609          $394,266
 Cost of merchandise sold, including
   warehousing and transportation        329,769           296,183
                                        --------          --------
 
 Gross profit                            106,840            98,083
 Selling, general and administrative      89,774            82,623
 Depreciation                              6,096             5,640
                                        --------          --------
 Operating income                         10,970             9,820
 Interest and debt expense amortization    5,771             4,871
                                        --------          --------
 Income before income taxes                 5,199             4,949
 Income taxes                               1,722             1,668
                                        --------          --------
 Net income                           $    3,477        $    3,281
                                        --------          --------
                                        --------          --------
 
 Earnings per common share               $   .42           $   .39
                                        --------          --------
                                        --------          --------
 
 Earnings per common share - assuming
   dilution                              $   .38           $   .36
                                        --------          --------
                                        --------          --------
 
 Dividends per share                     $   .11          $    .11
                                        --------          --------
                                        --------          --------

                  MARSH SUPERMARKETS, INC.
            CONDENSED CONSOLIDATED BALANCE SHEETS
                      (in thousands)
                        (Unaudited)
                                          June 24,          June 19,
                                             2000              1999
 Assets
 Current assets:
  Cash and equivalents                  $  38,813         $  24,263
  Accounts receivable                      45,694            39,978
  Inventories, less LIFO reserve;
     June 24, 2000 - $8,418;
     June 19, 1999 - $12,216              125,376           109,079
  Prepaid expenses                          5,203             4,751
  Recoverable income taxes                    598                 -
                                          -------           -------
 Total current assets                     215,684           178,071
 Property and equipment, less allowances
  for depreciation                        303,179           279,557
 Other assets                              61,755            50,044
                                          -------           -------
                                         $580,618          $507,672
                                          -------           -------
                                          -------           -------
 
 Liabilities and Shareholders' Equity
 Current liabilities:
  Notes payable to bank                 $   3,880        $      300
  Accounts payable                         80,120            73,834
  Accrued liabilities                      49,108            46,204
  Current maturities of long-term
     liabilities                            3,344             3,133
                                          -------           -------
       Total current liabilities          136,452           123,471
 
 Long-term liabilities:
  Long-term debt                          265,446           218,486
  Capital lease obligations                14,156            13,344
                                          -------           -------
      Total long-term liabilities         279,602           231,830
 
 Deferred items:
   Income taxes                            12,794            11,936
   Other                                   16,591            13,522
                                          -------           -------
       Total deferred items                29,385            25,458
 
 Shareholders' Equity:
  Common stock, Classes A and B            25,459            25,393
  Retained earnings                       119,927           111,183
  Cost of common stock in treasury     (    8,352)       (    6,962)
  Deferred cost - restricted stock     (    1,379)       (    2,223)
  Notes receivable - stock options     (      476)       (      478)
                                        ---------         ---------
       Total shareholders' equity         135,179           126,913
                                        ---------         ---------
                                         $580,618          $507,672
                                        ---------         ---------
                                        ---------         ---------


        

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