Marsh Supermarkets, Inc. Announces Fiscal 2001 Results; Adjusted Operating Income Up 21% Over Last Year


INDIANAPOLIS, May 29, 2001 (PRIMEZONE) -- Marsh Supermarkets, Inc. (Nasdaq:MARSA) (Nasdaq:MARSB) reports results of operations for the 12 and 52 weeks ended March 31, 2001.

Total sales and other revenues for fiscal year 2001 were $1,877,418,000 -- up 4.9% from the last year's $1,790,140,000. Fiscal 2001 was a 52-week year compared to the 53 weeks in fiscal 2000. Last year's extra week represented approximately $36 million in sales. Based on a 52-week comparison, total sales and other revenues increased 7.0%. Sales in comparable stores increased 2.0% over last year.

Operating income in fiscal 2001 was $43,087,000 compared to $40,521,000 last year, a 6.3% increase. Adjusted operating income, excluding LIFO, real estate gains and the effect of cigarette manufacturer price increases, increased 21%.

"We are pleased with our overall operational performance. In the new year, we will continue to focus on operational improvement, internal growth and selective acquisitions. Our strategic commitment is to remain the best store in town," said Don E. Marsh, Chairman and Chief Executive Officer.

For the fiscal year ended March 31, 2001, net income was $11,936,000 or $1.33 per diluted share, compared to $12,266,000 or $1.34 per diluted share last year.

For the twelve weeks ended March 31, 2001 (fourth quarter), revenues were $410,535,000 compared to $441,576,000 last year. Excluding last year's extra week, revenues increased $4.9 million and 1.2%. Sales in retail businesses increased $31.3 million over the comparable quarter, but wholesale distribution sales were $26,400,000 below last year. Comparable store sales were 1.2%, up from third quarter's 0.7%.

Fourth quarter operating income was $8,945,000 compared to $10,519,000 last year. Adjusted operating income, excluding LIFO, real estate gains and effect of cigarette manufacturer price increases, increased 13% over last year's fourth quarter of 13 weeks.

Net income for the quarter was $2,485,000 or $.28 per diluted share, compared to $3,114,000, or $.34 per diluted share last year.

During the fourth quarter, the Company opened one new Village Pantry convenience store and acquired three convenience stores. The Company also opened a McNamara Florist retail location.

Subsequent to year end, the Company opened a replacement Marsh Supermarket and two new Village Pantry convenience stores. LoBill opened a new store, and one of the stores acquired in the Ross acquisition was closed. In the first half of fiscal year 2002, the Company will be converting five Marsh Supermarkets to the LoBill Foods format.

Marsh is a leading regional chain operating 71 Marsh(r) and 28 LoBill Foods(r) supermarkets, 188 Village Pantry(r) convenience stores and 2 Savin*$(r) limited selection every-day low-price stores, in central Indiana and western Ohio. The Company also operates Convenience Store Distributing Company(r), a wholesale distributor serving 1,000 non-affiliated stores in nine states, Crystal Food Services(tm), a specialist in catering, business cafeteria management, vending and concessions, and McNamara(r) Florist and Enflora -- Flowers for Business(r), the leading upscale traditional florist in Indianapolis.


                           MARSH SUPERMARKETS, INC.
                      CONSOLIDATED STATEMENTS OF INCOME
                   (in thousands, except per share amounts)

                      12 weeks    13 weeks
                        Ended       Ended          Year Ended  
                           (Unaudited)       (Unaudited)
                      March 31,    April 1,   March 31,    April 1,
                        2001         2000        2001        2000  
 Sales and other
   revenues         $  410,535   $  441,576  $1,877,418   $1,790,140
                    ==========   ==========  ==========   ==========

 Gross profit          107,117      110,734     473,363      440,942

 Selling, 
  general and 
  administrative        92,915       93,901     405,218      374,487
 Depreciation            5,257        6,314      25,058       25,934
                    ----------   ----------  ----------   ----------
 Operating profit        8,945       10,519      43,087       40,521
 Interest and 
  debt expense 
  amortization           5,240        5,755      24,397       22,261
 Other non-operating
  expense                  100          --          911         --
                    ----------   ----------  ----------   ----------
 Income before
  income taxes           3,605        4,764      17,779       18,260
 Income taxes            1,120        1,650       5,843        5,994
                    ----------   ----------  ----------   ----------
 Net income         $    2,485   $    3,114  $   11,936   $   12,266
                    ==========   ==========  ==========   ==========


 Number of shares:
   Basic                 8,086        8,355       8,180        8,347

   Diluted               9,561        9,829       9,679        9,838


 Earnings per
  common share:
   Basic            $      .31   $      .37  $     1.46   $     1.47
                    ==========   ==========  ==========   ==========
   Diluted          $      .28   $      .34  $     1.33   $     1.34
                    ==========   ==========  ==========   ==========

 Dividends 
  per share         $      .11   $      .11  $      .44   $      .44
                    ==========   ==========  ==========   ==========



                             MARSH SUPERMARKETS, INC.
                           CONSOLIDATED BALANCE SHEETS
                                  (in thousands)

                                            March 31,      April 1, 
                                              2001          2000
                                          (Unaudited)
 Assets
 Current Assets
  Cash and equivalents                     $  31,257    $  31,435
  Accounts receivable                         46,260       44,315
  Inventories                                126,069      125,383
  Prepaid expenses                             6,683        6,068
  Recoverable income taxes                       999        1,960
                                           ---------    ---------
     Total Current Assets                    211,268      209,161

 Property and Equipment, 
  less allowances
  for depreciation                           307,781      299,589
 Other Assets                                 58,765       58,255
                                           ---------    ---------
                                           $ 577,814    $ 567,005
                                           =========    =========


 Liabilities and Shareholders' Equity:
 Current Liabilities
  Note payable to bank                     $    --      $  10,000
  Accounts payable                            80,598       79,097
  Accrued liabilities                         60,014       55,042
  Current maturities of
   long-term liabilities                       2,388       28,097
                                           ---------    ---------
    Total Current Liabilities                143,000      172,236

 Long-term Liabilities:
  Long-term debt                             246,940      218,724
  Capital lease obligations                   15,545       14,266
                                           ---------    ---------
 Total Long-term Liabilities                 262,485      232,990

 Deferred Items:
  Income taxes                                12,865       12,744
  Other                                       21,188       16,123
                                           ---------    ---------
   Total Deferred Items                       34,053       28,867

 Shareholders' Equity:
  Common stock                                26,066       25,455
  Retained earnings                          125,645      117,360
  Cost of common stock
   in treasury                               (11,656)     ( 7,858)
  Deferred cost -
   restricted stock                          (   730)     ( 1,574)
  Notes receivable -
   stock options                             ( 1,049)     (   471)
                                           ---------    ---------
   Total Shareholders' Equity                138,276      132,912
                                           ---------    ---------
   Total Liabilities and
    Shareholders' Equity                   $ 577,814    $ 567,005
                                           =========    =========


            

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