INDIANAPOLIS, Nov. 27, 2000 (PRIMEZONE) -- Marsh Supermarkets, Inc. (Nasdaq:MARSA) (Nasdaq:MARSB) reports results of operations for the 16 weeks ended Oct. 14, 2000.
Sales and other revenues for the second quarter were $600,457,000 -- up 12.3% from the prior year's $534,729,000. Of the $66 million increase in revenues, $56 million was from retail and $10 million was from wholesale operations. Sales in comparable stores increased 2.6%, which is above recent industry trends.
Operating income was $11,080,000 compared to $10,222,000 last year -- an 8.4% improvement. This is the seventeenth consecutive quarter of operating income improvement and was achieved notwithstanding significant infrequently occurring income in last year's comparable quarter. Last year, the cigarette manufacturers increased prices resulting in $1.2 million of additional income on inventory purchased prior to the price increase. Retail prices were immediately increased on this inventory. A smaller price increase occurred this year with a $400,000 gain. The quarter was also affected by pre-opening expense for two new stores.
For the quarter, EBITDA was $21,003,000 compared to $20,360,000 last year -- a 3.2% improvement.
The Company continues to invest in new stores and, as a result, our interest expense was $7,857,000 versus $6,560,000 last year. Net income was also impacted by a higher effective tax rate.
For the quarter, net income was $2,139,000 compared to $2,615,000 last year. Earnings per diluted share were $.25 versus $.30 last year -- a 16.7% decrease.
The Company continues to buy back stock on the open market in accordance with its repurchase plan. During the quarter, the Company repurchased 62,100 shares of Marsh Class A stock and 114,278 shares of Marsh Class B stock. To date, the Company has spent $10.8 million of the $12.0 million authorized for repurchase.
During the quarter, the Company acquired three convenience stores and opened two new convenience stores. Three of the five Ross stores purchased last quarter are now being operated under the LoBill banner, and a Ross store located adjacent to a Marsh Supermarket was closed. The fifth Ross store is operating as a Savin*$.
Subsequent to quarter end, Marsh opened two new upscale supermarkets, one of which includes a Village Pantry fuel kiosk on the parking lot.
Marsh is a leading regional chain operating 72 Marsh(r), 27 LoBill Foods(r), 183 Village Pantry( convenience stores and two Savin*$(r) limited-selection, every day low-price stores. The Company also operates Convenience Store Distributing Company, a wholesale distributor serving 1,037 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; and McNamara Florist, and Enflora(r) -- Flowers for Business.
MARSH SUPERMARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands except per share amounts)
(Unaudited)
16 Weeks Ended 28 Weeks Ended
Oct. 14, Oct. 9, Oct. 14, Oct. 9,
2000 1999 2000 1999
Sales and
other revenues $600,457 $534,728 $1,037,066 $928,995
Cost of
merchandise
sold, including
warehousing and
transportation 453,888 405,720 783,657 701,737
Gross profit 146,569 129,009 253,409 227,258
Selling, general
and administrative 126,981 110,754 216,755 193,542
Depreciation 8,508 8,033 14,604 13,673
Operating income 11,080 10,222 22,050 20,043
Interest and debt
expense amortization 7,857 6,560 13,628 11,431
Income before
income taxes 3,223 3,662 8,422 8,612
Income taxes 1,084 1,047 2,806 2,715
Net income $ 2,139 $ 2,615 $ 5,616 $ 5,897
Earnings per
common share $ .26 $ .31 $ .68 $ .71
Earnings per
common share
- assuming dilution $ .25 $ .30 $ .63 $ .65
Dividends per share $ .11 $ .11 $ .22 $ .22
MARSH SUPERMARKETS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
Oct. 14, Oct. 9,
2000 1999
Assets
Current assets:
Cash and equivalents $39,219 $ 28,462
Accounts receivable 43,425 36,257
Inventories (a) 131,681 118,260
Prepaid expenses 5,378 5,086
Recoverable income taxes 246 1,597
Total current assets 219,949 189,662
Property and equipment,
less allowances for
depreciation 301,024 288,545
Other assets 51,540 53,134
$572,513 $531,341
Liabilities and Shareholders' Equity
Current liabilities:
Notes payable to bank $ -- $ 19,204
Accounts payable 84,719 75,420
Accrued liabilities 56,901 47,902
Current maturities of
long-term liabilities 2,758 2,893
Total current
liabilities 144,378 145,419
Long-term liabilities:
Long-term debt 250,085 217,869
Capital lease obligations 14,005 13,367
Total long-term
liabilities 264,090 231,236
Deferred items:
Income taxes 12,862 12,291
Other 16,473 13,482
Total deferred items 29,335 25,773
Shareholders' Equity:
Common stock,
Classes A and B 25,588 25,423
Retained earnings 121,131 112,863
Cost of common
stock in treasury ( 9,867) ( 6,949)
Deferred cost
- restricted stock ( 1,119) ( 1,963)
Notes receivable
- stock options ( 1,023) ( 461)
Total shareholders'
equity 134,710 128,913
$572,513 $531,341
(a) less LIFO reserve: October 14, 2000 - $8,518;
October 9, 1999 - $12,316
CONTACT: Marsh Supermarkets, Inc.
Douglas W. Dougherty, Chief Financial Officer
(317) 594-2627