INDIANAPOLIS, June 4, 2002 (PRIMEZONE) -- Marsh Supermarkets, Inc. (Nasdaq:MARSA) (Nasdaq:MARSB) reports results of operations for the 12 and 52 weeks ended March 30, 2002.
Total sales and other revenues for fiscal year 2002 were $1,642,599,000 -- up 6.3% from the last year's $1,545,903,000. Sales in comparable stores increased 2.5% over last year. This is the twenty-first successive quarterly increase.
Operating income for fiscal 2002 was $40,136,000 compared to $39,447,000 last year, a 1.7% increase. "We are pleased with our performance, given the significant increase in new supermarket square footage added to our market during the year. In the new year, we will continue to focus on merchandising and operational improvements. Our strategic commitment is to remain the best store in town," said Don E. Marsh, Chairman and Chief Executive Officer.
For the fiscal year, net income, which includes results from a discontinued operation, was $13,408,000, or $1.51 per diluted share, compared to $11,936,000 and $1.33 per diluted share last year. Net income from continuing operations increased 8.4% over last year -- $11,541,000, or $1.31 per diluted share, compared to $10,646,000, or $1.20 per diluted share, last year.
For the twelve weeks ended March 30 2002 (fourth quarter), revenues were $373,283,000 compared to $353,601,000 last year -- a 5.6% increase. Comparable store sales increased 1.5%, up from third quarter's 0.4% increase.
Fourth quarter operating income was $9,141,000 compared to $9,118,000 last year. Net income for the quarter was $1,940,000, or $.22 per diluted share, compared to $2,485,000, or $.28 per diluted share, last year. Diluted earnings per share from continuing operations were $.24 compared to $.32 last year.
Marsh Supermarkets, one of the largest regional grocery chains in the United States, operates 68 Marsh(r) stores, 33 LoBill Foods(r), 2 Savin*$(r), 6 O'Malia Food Markets and 191 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, and 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: softness in the general retail food industry, the entry of new competitive stores and e-retailers in Company's the Company's market, the ability to predict the impact of the revision of the estimated useful lives of building and land improvements, the impact of any acquisitions or dispositions, the stability of distribution incentives from suppliers, the level of discounting by competitors, the timely and on budget completion of store construction, expansion, conversion and remodeling, the ability to complete authorized share repurchases, the successful integration of acquisitions, uncertainties relating to tobacco and environmental regulations, and the level of margins achievable in the Company's operating divisions and their ability to minimize operating expenses. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.
MARSH SUPERMARKETS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
12 Weeks Ended 52 Weeks Ended
March 30, March 31, March 30, March 31,
2002 2001 2002 2001
---------- ---------- ---------- ----------
Sales and
other revenues $ 373,283 $ 353,601 $1,642,599 $1,545,903
Cost of merchandise
sold, including
warehousing and
transportation 255,368 247,445 1,143,883 1,082,581
---------- ---------- ---------- ----------
Gross profit 117,915 106,156 498,716 463,322
Selling, general
and administrative 103,367 91,909 435,697 399,475
Depreciation 5,407 5,129 22,883 24,400
---------- ---------- ---------- ----------
Operating income 9,141 9,118 40,136 39,447
Interest 5,600 4,851 22,523 22,741
Other non-operating
expense -- 100 -- 911
---------- ---------- ---------- ----------
Income from
continuing operations
before income taxes 3,541 4,167 17,613 15,795
Income taxes 1,442 1,317 6,072 5,149
---------- ---------- ---------- ----------
Income from
continuing operations 2,099 2,850 11,541 10,646
Discontinued operation:
Income (loss) from
operations,
after tax (83) (365) (1,332) 1,290
Gain on disposal,
after tax (76) -- 3,199 --
---------- ---------- ---------- ----------
Net Income $ 1,940 $ 2,485 $ 13,408 $ 11,936
========== ========== ========== ==========
Basic earnings per
common share:
Continuing operations $ .26 $ .35 $1.45 $1.30
Discontinued operation (.01) (.04) (.17) .16
Gain on disposal
discontinued
operation (.01) -- .40 --
---- ---- ----- -----
Net income $.24 $.31 $1.68 $1.46
==== ==== ===== =====
Diluted earnings
per common share:
Continuing operations $.24 $.32 $1.31 $1.20
Discontinued operation (.01) (.04) (.14) .13
Gain on disposal
discontinued
operation (.01) -- .34 --
---- ---- ----- -----
Net income $.22 $.28 $1.51 $1.33
==== ==== ===== =====
Dividends per share $.11 $.11 $.44 $.44
MARSH SUPERMARKETS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
March 30, March 31,
2002 2001
--------- ---------
Assets
Current assets:
Cash and equivalents $ 37,516 $ 31,257
Accounts receivable, less allowances of
$2,494 in 2002, and $1,437 in 2001 33,613 46,260
Inventories, less LIFO reserve:
$1,899 in 2002, and $8,536 in 2001 132,940 126,069
Prepaid expenses 7,639 6,683
Recoverable income taxes 1,021 999
--------- ---------
Total Current Assets 212,729 211,268
Property and Equipment 318,650 307,781
Other Assets 51,851 58,765
--------- ---------
$ 583,230 $ 577,814
========= =========
Liabilities and Shareholders' Equity
Current Liabilities
Notes payable to bank $ 1,300 $ --
Accounts payable 71,640 80,598
Accrued liabilities 57,972 60,014
Current maturities of long-term liabilities 2,727 2,388
--------- ---------
Total Current Liabilities 133,639 143,000
Long-term Liabilities
Long-term debt 237,823 246,940
Capital lease obligations 25,933 15,545
--------- ---------
Total Long-Term Liabilities 263,756 262,485
Deferred Items
Income taxes 16,472 12,865
Other 28,566 21,188
--------- ---------
Total Deferred Items 45,038 34,053
Shareholders' Equity
Common stock, classes A and B 26,403 26,066
Retained earnings 135,534 125,645
Accumulated other comprehensive loss * (5,324) --
Cost of common stock in treasury (14,509) (11,656)
Deferred cost - restricted stock (270) (730)
Notes receivable - stock options (1,037) (1,049)
--------- ---------
Total Shareholders' Equity 140,797 138,276
--------- ---------
$ 583,230 $ 577,814
========= =========
* The comprehensive loss is attributable to a decline in the
market value of assets held by a "frozen" defined benefit
pension plan. The loss, net of tax benefit, is a direct
reduction of shareholders' equity.