INDIANAPOLIS, Nov. 27, 2001 (PRIMEZONE) -- Marsh Supermarkets, Inc. (Nasdaq:MARSA) (Nasdaq:MARSB) reports results of operations for the 16 weeks ended October 13, 2001.
Second quarter net income was $4,202,000 compared with $2,139,000 last year. This is $0.48 per diluted share versus $0.25 last year. The quarter's results include a gain on the previously announced sale of CSDC (Convenience Store Distributing Company) and a net loss on the discontinued operation.
The following results are for continuing operations only and exclude discontinued operations unless otherwise noted.
Sales and other revenues for the second quarter were $508,230,000 compared to $478,027,000 last year, an increase of $30,203,000 and 6.3%. Sales in comparable stores were 4.9% over last year and 4.0% year to date. This compares to 2.7% last quarter and 1.2% the prior quarter.
Income from continuing operations for the quarter was $2,049,000 compared to $1,397,000 last year, a 47% increase. Diluted earnings per common share were $0.25 versus $0.16 last year. "Our strong comparable store sales growth continues to demonstrate our ability to succeed in a highly competitive retail market," said Don E. Marsh, Chairman and Chief Executive Officer.
During the quarter, the Company opened two new Village Pantry convenience stores and acquired three convenience stores. The Company also converted three Marsh supermarkets to LoBill Foods. Marsh acquired two supermarkets and closed two stores in order to consolidate sales into the remaining units.
The Company purchased the assets of O'Malia Food Markets, which has eight upscale stores in the Indianapolis metro area. O'Malia will operate as a separate division.
The Company also sold the assets of CSDC to McLane Company, Inc., a Temple, Texas-based grocery distributor. The sale included inventory, property, buildings, equipment and certain other assets plus the assumption by McLane of certain liabilities. McLane will provide distribution services to Marsh's Village Pantry Division and CSDC's customers. The gain on sale and CSDC's operating results are shown on the condensed consolidated statements of income as a discontinued operation.
Subsequent to quarter end, the Company opened two new upscale Marsh Supermarkets.
Marsh Supermarkets, one of the largest regional grocery chains in the United States, operates 69 Marsh(r), 32 LoBill Foods(r) stores, 2 Savin*$(r), 8 O'Malia Food Markets, and 193 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 Florist and Enflora -- Flowers for Business(r).
Marsh is a publicly held company whose stock is traded on the Nasdaq National Market System (MARSA and MARSB).
MARSH SUPERMARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
-------------------------------------------
(In thousands except per share amounts)
(Unaudited)
16 Weeks Ended 28 Weeks Ended
-------------------- --------------------
Oct. 13, Oct. 14, Oct. 13, Oct. 14,
2001 2000 2001 2000
-------- -------- -------- --------
Sales and
other revenues $508,230 $478,027 $883,481 $820,180
Cost of merchandise
sold, including
warehousing and
transportation 358,099 335,259 620,766 573,503
-------- -------- -------- --------
Gross profit 150,131 142,768 262,715 246,677
Selling, general
and administrative 133,488 125,047 230,743 213,391
Depreciation 6,941 8,281 11,697 14,202
-------- -------- -------- --------
Operating income 9,702 9,440 20,275 19,084
Interest 6,712 7,360 11,785 12,752
-------- -------- -------- --------
Income from continuing
operations before
income taxes 2,990 2,080 8,490 6,332
Income taxes 941 683 2,793 2,074
-------- -------- -------- --------
Income from continuing
operations 2,049 1,397 5,697 4,258
Discontinued operation:
Income (loss) from
operations,
net of tax (1,122) 742 (859) 1,358
Gain on disposal,
net of tax 3,275 -- 3,275 --
-------- -------- -------- --------
Net income $ 4,202 $ 2,139 $ 8,113 $ 5,616
======== ======== ======== ========
Basic earnings
per common share:
Continuing operations $ .26 $ .17 $ .72 $ .52
Discontinued operation (.14) .09 (.11) .16
Gain on disposal of
discontinued operation .41 -- .41 --
-------- -------- -------- --------
Net income $ .53 $ .26 $ 1.02 $ .68
======== ======== ======== ========
Diluted earnings
per common share:
Continuing operations $ .25 $ .16 $ .65 $ .49
Discontinued operation (.12) .09 (.09) .14
Gain on disposal of
discontinued operation .35 -- .35 --
-------- -------- -------- --------
Net income $ .48 $ .25 $ .91 $ .63
======== ======== ======== ========
Dividends per share $ .11 $ .11 $ .22 $ .22
======== ======== ======== ========
MARSH SUPERMARKETS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
(In thousands)
(Unaudited)
October 13, October 14,
2001 2000
--------- ---------
Assets
Current assets:
Cash and equivalents $ 30,807 $ 39,219
Accounts receivable 47,991 43,425
Inventories(a) 140,172 131,681
Prepaid expenses 6,147 5,378
Recoverable income taxes -- 246
--------- ---------
Total current assets 225,117 219,949
Property and equipment, less
allowances for depreciation 313,760 301,024
Other assets 54,587 51,540
--------- ---------
$ 593,464 $ 572,513
========= =========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 90,791 $ 84,719
Accrued liabilities 59,180 56,901
Current maturities of
long-term liabilities 2,512 2,758
--------- ---------
Total current liabilities 152,483 144,378
Long-term liabilities:
Long-term debt 246,814 250,085
Capital lease obligations 15,234 14,005
--------- ---------
Total long-term liabilities 262,048 264,090
Deferred items:
Income taxes 13,866 12,862
Other 21,953 16,473
--------- ---------
Total deferred items 35,819 29,335
Shareholders' Equity:
Common stock, Classes A and B 26,153 25,588
Retained earnings 131,997 121,131
Cost of common stock in treasury (13,557) (9,867)
Deferred cost - restricted stock (421) (1,119)
Notes receivable - stock options (1,058) (1,023)
--------- ---------
Total shareholders' equity 143,114 134,710
--------- ---------
$ 593,464 $ 572,513
========= =========
(a) less LIFO reserve: October 13, 2001 - $2,636; October 14, 2000 -
$8,518