INDIANAPOLIS, Aug. 6, 2002 (PRIMEZONE) -- Marsh Supermarkets, Inc. (Nasdaq:MARSA) (Nasdaq:MARSB) reports results of operations for the 12 weeks ended June 22, 2002.
Sales and other revenues for the first quarter were $385,166,000 compared to $375,251,000 last year -- a 2.6% increase. Retail sales in comparable stores decreased 2.9%, the first decline in 21 quarters. The decline is attributable to a holiday calendar shift, the current economy, and new supermarket square footage. Easter holiday sales were in last year's comparable period without an equivalent holiday this year. The 2.9% comparable store decrease compares to a 2.7% increase in the first quarter last year. So sales growth was approximately flat across two years.
Net income from continuing operations for the quarter was $3,161,000 compared to $3,648,000 last year. Diluted earnings per common share from continuing operations were $0.35 compared to $0.41 last year.
On a continuing operations basis, first quarter EBITDA was $16,555,000 compared to $15,711,000 last year -- a 5.4% increase. First quarter operating income was $10,431,000 -- down slightly from last year's $10,573,000. The quarter results include $1,671,000 gains on the sales of real estate.
"We are pleased with the improved EBITDA during the quarter despite the significant increase in new supermarkets added to our marketplace," said Don E. Marsh, Chairman and Chief Executive Officer.
During the first quarter, the Company completed the remodel of a Marsh supermarket and a Crystal Food Services catering facility. The Company also opened one new McNamara Florist location and converted a Marsh supermarket to the LoBill Foods format. Two Village Pantry stores were closed, and subsequent to quarter end, the Company completed the remodel of one Marsh supermarket, opened a new LoBill Foods store, and closed 15 Village Pantry convenience stores.
Marsh is a leading regional chain operating 67 Marsh(r) supermarkets, 35 LoBill Foods(r) stores, 2 Savin*$(r), 6 O'Malia Food Markets, and 172 Village Pantry(r) convenience stores in central Indiana and western Ohio. The Company also operates Crystal Food Services(tm) which provides upscale catering, cafeteria management, office coffee, vending and concessions; Primo Banquet Catering and Conference Centers, McNamara(r) Florist and Enflora -- Flowers for Business(r).
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: the entry of new competitive stores and their impact on the results of Company's operations; softness in the local economy and the general retail food industry; the level of discounting by competitors; uncertainties regarding the timing and amount of future real estate gains; stability and timing of distribution incentives from suppliers; the level of margins achievable in the Company's operating divisions and their ability to minimize operating expenses; the success of the Company's new and remodeled stores, including image and rebranding programs; the successful economic implementation of new technology; uncertainties related to state and federal taxation, tobacco and environmental legislation; the impact of any acquisitions and dispositions; the successful integration of acquisitions; the timely and on budget completion of store construction, expansion, conversion and remodeling; the ability to complete share repurchases; 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.
MARSH SUPERMARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share amounts)
(Unaudited)
12 Weeks Ended
June 22, June 23,
2002 2001
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Sales and other revenues $ 383,495 $ 374,799
Gains on sales of real estate 1,671 452
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Total revenues 385,166 375,251
Cost of merchandise sold, including
warehousing and transportation 266,231 262,667
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Gross profit 118,935 112,584
Selling, general and administrative 102,914 97,255
Depreciation 5,590 4,756
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Operating income 10,431 10,573
Interest 5,423 5,073
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Income from continuing operations
before income taxes 5,008 5,500
Income taxes 1,847 1,852
--------- ---------
Income from continuing operations 3,161 3,648
Discontinued operation:
Income from operations, net of tax -- 263
Loss on disposal, net of tax (181) --
--------- ---------
Net income $ 2,980 $ 3,911
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Basic earnings per common share:
Continuing operations $ .40 $ .46
Discontinued operation -- .03
Loss on disposal of discontinued operation (.02) --
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Net income $ .38 $ .49
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Diluted earnings per common share:
Continuing operations $ .35 $ .41
Discontinued operation -- .03
Loss on disposal of discontinued operation (.02) --
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Net income $ .33 $ .44
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Dividends per share $ .11 $ .11
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MARSH SUPERMARKETS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
June 22, June 23,
2002 2001
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Assets
Current assets:
Cash and equivalents $ 30,686 $ 30,383
Accounts receivable 38,334 49,619
Inventories, less LIFO reserve;
June 22, 2002 - $1,899;
June 23, 2001 - $8,678 132,417 134,892
Prepaid expenses 7,013 7,018
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Total current assets 208,450 221,912
Property and equipment, less
allowances for depreciation 313,554 312,005
Other assets 48,758 61,087
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$ 570,762 $ 595,004
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Liabilities and Shareholders' Equity
Current liabilities:
Notes payable to bank $ -- $ 1,100
Accounts payable 71,752 90,764
Accrued liabilities 55,180 51,832
Current maturities of
long-term liabilities 3,243 2,413
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Total current liabilities 130,175 146,109
Long-term liabilities:
Long-term debt 221,168 259,157
Capital lease obligations 29,704 15,415
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Total long-term liabilities 250,872 274,572
Deferred items:
Income taxes 16,543 13,222
Other 30,197 21,233
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Total deferred items 46,740 34,455
Shareholders' Equity:
Common stock, Classes A and B 26,407 26,148
Retained earnings 137,640 128,679
Cost of common stock in treasury (14,419) (13,263)
Deferred cost - restricted stock (280) (655)
Notes receivable - stock options (1,049) (1,041)
Accumulated other comprehensive loss (5,324) --
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Total shareholders' equity 142,975 139,868
--------- ---------
$ 570,762 $ 595,004
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