INDIANAPOLIS, Nov. 26, 2002 (PRIMEZONE) -- Marsh Supermarkets, Inc. (Nasdaq:MARSA) (Nasdaq:MARSB) reports results of operations for the 16 weeks ended October 12, 2002.
Sales and other revenues for the second quarter were $514,597,000 compared to $508,230,000 last year -- a 1.3% increase. Retail sales in comparable stores decreased 3.1%. The decline is attributable to a weak economy and new competitive supermarket square footage. The 3.1% comparable store decrease compares to a 4.9% increase in the second quarter last year. Therefore, sales growth is positive across two years.
Income from continuing operations for the quarter was $324,000 compared to $2,049,000 last year. Diluted earnings per common share from continuing operations were $0.04 compared to $0.25 last year.
Total EBITDA for the second quarter, was $16,716,000, up from $16,473,000 last year, excluding the gain on the sale of CSDC, and on a continuing basis, $490,000 below last year. Operating income was $8,312,000 -- compared to $9,702,000 last year. The quarter results include a $1,875,000 gain from the sales of real estate, compared to $1,435,000 last year, and a $1,201,000 inventory gain resulting from an increase in cigarette state excise taxes.
"We are pleased that total EBITDA, excluding last year's gain on the sale of CSDC, was improved for the quarter. Because of the economic climate, we are focusing on cash flow and placing appropriate emphasis on sales, working capital, gross profit, expense, and capital management. I am confident that our strategy and merchandising and operations competence will serve us well," said Don E. Marsh, Chairman and Chief Executive Officer.
During the quarter, the Company completed the remodel of a Marsh store to the "Fresh" format, opened a new LoBill Foods Store (Danville), and opened our newest concept store, Savin*$ Mercado, a Hispanic supermarket. Our new frozen food warehouse opened in August. During the quarter, seventeen Village Pantry stores were closed and the remodel of 101 stores continues, with 35 completed at quarter end. Subsequent to quarter end, a new McNamara Florist location opened.
Marsh is a leading regional chain, operating 67 Marsh(r) supermarkets, 36 LoBill Foods(r) stores, 3 Savin*$(r), 6 O'Malia Food Markets, and 170 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).
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: (plb1) the entry of new competitive stores and their impact on the Company's results of 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)
16 Weeks Ended 28 Weeks Ended
------------------ ------------------
Oct. 12, Oct. 13, Oct. 12, Oct. 13,
2002 2001 2002 2001
-------- -------- -------- --------
Sales and other revenues $512,722 $506,795 $896,217 $881,594
Gains on sales of real estate 1,875 1,435 3,546 1,887
-------- -------- -------- --------
Total revenues 514,597 508,230 899,763 883,481
Cost of merchandise sold,
including warehousing
and transportation 360,019 358,099 626,250 620,766
-------- -------- -------- --------
Gross profit 154,578 150,131 273,513 262,715
Selling, general
and administrative 138,739 133,488 241,653 230,743
Depreciation 7,527 6,941 13,117 11,697
-------- -------- -------- --------
Operating income 8,312 9,702 18,743 20,275
Interest 7,410 6,712 12,833 11,785
-------- -------- -------- --------
Income from continuing
operations before
income taxes 902 2,990 5,910 8,490
Income taxes 578 941 2,425 2,793
-------- -------- -------- --------
Income from continuing
operations 324 2,049 3,485 5,697
Discontinued operation:
Loss from operations,
net of tax -- (1,122) -- (859)
Gain (loss) on disposal,
net of tax (18) 3,275 (199) 3,275
-------- -------- -------- --------
Net income $ 306 $ 4,202 $ 3,286 $ 8,113
======== ======== ======== ========
Basic earnings per common share:
Continuing operations $ .04 $ .26 $ .44 $ .72
Discontinued operation -- (.14) -- (.11)
Gain (loss) on disposal of
discontinued operation -- .41 (.03) .41
-------- -------- -------- --------
Net income $ .04 $ .53 $ .41 $ 1.02
======== ======== ======== ========
Diluted earnings per
common share:
Continuing operations $ .04 $ .25 $ .41 $ .65
Discontinued operation -- (.12) -- (.09)
Gain (loss) on disposal
of discontinued operation -- .35 (.02) .35
-------- -------- -------- --------
Net income $ .04 $ .48 $ .39 $ .91
======== ======== ======== ========
Dividends per share $ .11 $ .11 $ .22 $ .22
======== ======== ======== ========
EBITDA
Total(a) $ 16,716 $ 16,473 $ 33,271 $ 33,361
Continuing 16,716 17,206 33,271 32,917
(a) Excludes gain on sale of CSDC
MARSH SUPERMARKETS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
October 12, October 13,
2002 2001
--------- ---------
Assets
Current assets:
Cash and equivalents $ 33,066 $ 30,807
Accounts receivable 34,417 47,991
Inventories, less LIFO reserve:
October 12, 2002 - $1,899;
October 13, 2001 - $2,636 138,081 140,172
Prepaid expenses 6,061 6,147
Recoverable income taxes 968 --
--------- ---------
Total current assets 212,593 225,117
Property and equipment, less
allowances for depreciation 315,802 313,760
Other assets 48,142 54,587
--------- ---------
$ 576,537 $ 593,464
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Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 72,538 $ 90,791
Accrued liabilities 59,496 59,180
Current maturities of
long-term liabilities 3,340 2,512
--------- ---------
Total current liabilities 135,374 152,483
Long-term liabilities:
Long-term debt 217,474 246,814
Capital lease obligations 29,437 15,234
--------- ---------
Total long-term liabilities 246,911 262,048
Deferred items:
Income taxes 17,337 13,866
Other 34,580 21,953
--------- ---------
Total deferred items 51,917 35,819
Shareholders' Equity:
Common stock, Classes A and B 26,418 26,153
Retained earnings 137,068 131,997
Cost of common stock in treasury (14,713) (13,557)
Deferred cost - restricted stock (166) (421)
Notes receivable - stock options (948) (1,058)
Accumulated other comprehensive loss (5,324) --
--------- ---------
Total shareholders' equity 142,335 143,114
--------- ---------
$ 576,537 $ 593,464
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