Financial Performance - For the fiscal year ended September 27, 2025, total revenues were $5,334.0 million, a decrease of 5.4% from $5,639.6 million in the previous year[27]. - Net income for the fiscal year ended September 27, 2025 was $83.6 million, a decrease from $105.5 million for the fiscal year ended September 28, 2024, reflecting a net income margin of 1.6% compared to 1.9% in the prior year[130][143]. - Net sales for the fiscal year ended September 27, 2025 totaled $5.33 billion, down from $5.64 billion for the fiscal year ended September 28, 2024, with a comparable store sales decrease of 1.7% excluding fuel[131][143]. - Gross profit for the fiscal year ended September 27, 2025 was $1.27 billion, a decrease of $25.7 million or 2.0% from $1.30 billion in the previous fiscal year, with a gross profit margin of 23.9%[134]. - Operating and administrative expenses for the fiscal year ended September 27, 2025 were $1.159 billion, a slight decrease of $2.9 million from $1.162 billion in the prior year, representing 21.7% of net sales[135]. - The number of transactions (excluding fuel) decreased by 4.2% in fiscal year 2025, while the average transaction size increased by 0.1%[132]. - The Company generated $154.1 million in cash from operations for fiscal 2025, a decrease of 41.3% compared to $262.5 million in fiscal 2024[152]. - Cash used in investing activities for fiscal 2025 totaled $109.9 million, down 46.8% from $206.2 million in fiscal 2024, primarily due to a $96.4 million decrease in capital expenditures[153]. Operational Impact - The Company recognized impairment losses of $30.4 million related to inventory and $4.5 million related to property and equipment due to Hurricane Helene[15]. - The Company incurred approximately $9.0 million in cleanup and repair costs related to Hurricane Helene and received $6.2 million in insurance proceeds[16]. - The Company estimates approximately $55 to $65 million in lost revenue due to Hurricane Helene, which impacted operations during the last two days of the fiscal year ended September 28, 2024[130][126]. - The Company incurred $9.0 million in cleanup and repair expenses due to Hurricane Helene, partially offset by insurance proceeds of $1.5 million[130][135]. - The Company is subject to various governmental regulations, including those from the U.S. Food and Drug Administration and the U.S. Department of Agriculture, and believes it is in compliance with these regulations[61]. - The Company operates primarily in the Southeastern United States, making it susceptible to regional economic factors, including natural disasters like Hurricane Helene, which caused significant operational disruptions[64]. Store Operations - The Company operated 194 supermarkets as of September 27, 2025, with 185 under the "Ingles" name and 9 under "Sav-Mor"[29]. - The weighted average sales per store decreased to $25,916, down from $27,341 in the previous year[32]. - The average store size is 57,411 square feet, with 82 stores being at least 62,000 square feet[46]. - Approximately 58.8% of goods sold are supplied from the Company's distribution facilities, with the remaining 41.2% purchased from third parties[20]. - Approximately 58.8% of the Company's inventory is supplied from its warehouse and distribution facilities, with a total of 1.65 million square feet dedicated to these operations[39]. - The Company owns the real property for 174 of its supermarkets, including three temporarily closed stores due to Hurricane Helene[22]. - The Company operates fuel stations at 106 locations, with potential disruptions in fuel availability and pricing posing risks to financial performance[72]. Strategic Initiatives - The Company plans to continue its renovation and expansion strategy to modernize stores and enhance customer convenience[19]. - The Company aims to modernize its stores continuously, with ongoing construction and remodeling projects to enhance customer experience[44]. - The Company has a strong focus on private label products, which include milk, bread, and organic items, aimed at promoting customer loyalty[37]. - The Ingles Curbside service is available at 131 stores, allowing customers to order products online for pickup[36]. - The Company plans to invest approximately $120 to $140 million in capital expenditures for fiscal year 2026, focusing on store improvements and technology upgrades[148][149]. Financial Management - Capital expenditures for fiscal year 2025 totaled $114.5 million, significantly lower than $210.9 million in fiscal year 2024, primarily due to fewer purchases of new sites[146]. - Interest expense decreased to $19.7 million for the fiscal year ended September 27, 2025, down from $21.9 million in the previous year, with total debt at $514.8 million[141]. - The Company has a $150 million unsecured senior line of credit, which was amended in June 2025 and matures in June 2030[155]. - The outstanding aggregate principal amount of the Recovery Zone Bonds was $45.4 million as of September 27, 2025, with mandatory annual redemptions of $4.5 million starting from January 1, 2014[157]. - The Company expects to continue paying regular cash dividends, having paid $0.66 per share of Class A Common Stock in fiscal 2025[105]. - The Company expects to continue paying quarterly cash dividends of $0.165 per share on Class A Common Stock and $0.15 per share on Class B Common Stock[164]. Risk Factors - A shortage of qualified associates could lead to increased labor costs, which the Company may not be able to pass on to customers, significantly raising operating costs[66]. - Energy and utility costs have been volatile, prompting the Company to enhance energy efficiency in store construction and remodeling[68]. - The supermarket industry is highly competitive, with the Company facing pressure from competitors with greater financial resources[75]. - Economic conditions affecting consumer spending, such as employment levels and interest rates, could adversely impact the Company's financial results[77]. - Inflation has been noted, with the Consumer Price Index showing a 3.0% increase for all items year-over-year as of September 27, 2025[79]. - The Company is exposed to interest rate changes due to its borrowing activities, with variable interest rates on long-term debt averaging 5.90%[170]. - The Company anticipates that economic conditions will affect customer behavior, including purchasing patterns and product variety[172]. Governance and Compliance - The principal stockholder, Robert P. Ingle II, holds approximately 72.5% of the voting power, allowing significant influence over Company decisions[81]. - The Company has adopted an insider trading policy to promote compliance with insider trading laws and regulations[191]. - The Company has a Code of Ethics applicable to senior financial officers, including the CEO and CFO[192]. - The independent auditors, Deloitte & Touche LLP, audited the consolidated financial statements and internal control over financial reporting[185]. - The Company maintained effective disclosure controls and procedures as of September 27, 2025, providing reasonable assurance for timely reporting[180]. - The internal control over financial reporting was assessed as effective as of September 27, 2025, based on the COSO framework[184]. - There were no changes in internal control over financial reporting that materially affected the Company during the fiscal quarter ended September 27, 2025[186]. - The evaluation of the effectiveness of disclosure controls and procedures was conducted under the supervision of the CEO and CFO[179]. Audit and Vendor Relations - The audit identified vendor allowances as a critical audit matter due to the diversity of individual vendor agreements[210]. - Vendor allowances applied as a reduction of merchandise costs totaled $151.9 million for the fiscal year ended September 27, 2025[121]. - The Company received funds from vendors for merchandising activities, including volume-based incentives and advertising allowances[209]. - Vendor allowances are recorded as a reduction of inventory cost and recognized in cost of goods sold when the related inventory is sold[209].

Financial Performance - Net sales for Q4 2025 totaled $1.37 billion, a decrease of 2.1% from $1.40 billion in Q4 2024[2] - Net income for Q4 2025 was $25.7 million, a significant recovery from a net loss of $1.5 million in Q4 2024[5] - For the fiscal year 2025, net sales were $5.33 billion, down 5.5% from $5.64 billion in fiscal year 2024[7] Profitability - Gross profit for Q4 2025 was $334.7 million, representing 24.5% of sales, compared to $299.4 million or 21.4% of sales in Q4 2024[3] - Gross profit for the fiscal year 2025 was $1.27 billion, or 23.9% of sales, compared to $1.30 billion or 23.0% of sales in fiscal year 2024[7] Expenses - Operating and administrative expenses for fiscal year 2025 totaled $1.159 billion, slightly down from $1.162 billion in fiscal year 2024[8] - Interest expense decreased to $19.7 million in fiscal year 2025 from $21.9 million in fiscal year 2024[8] Earnings - Basic earnings per share for Class A Common Stock were $4.50 for fiscal year 2025, down from $5.68 in fiscal year 2024[9] Capital Expenditures and Debt - Capital expenditures for fiscal year 2025 were $114.5 million, significantly lower than $210.9 million in fiscal year 2024[10] - Total debt at the end of fiscal year 2025 was $514.8 million, reduced from $532.6 million at the end of fiscal year 2024[4]

Core Insights - Ingles Market (NASDAQ: IMKTA) is attractive to value investors primarily due to its substantial real estate holdings, which include ownership of many malls where its grocery stores are located [1] Group 1: Company Overview - Ingles Market is recognized for its value investment appeal, largely attributed to its real estate assets [1] Group 2: Investment Strategy - The company’s strategy focuses on long-term investment opportunities, with an emphasis on holding stocks for several years [1]

Group 1 - Ingles Markets, Incorporated (IMKTA) is a regional grocery chain known for its steady, family-owned approach, primarily operating in North Carolina, South Carolina, Georgia, and Tennessee [2] - The company's shares are currently trading at $68.77, with a trailing P/E of 23.08, indicating potential undervaluation [1][2] - IMKTA's extensive real estate holdings, including stores and surrounding shopping centers, provide a unique margin of safety, as the business trades near or below tangible book value while generating solid earnings [3][4] Group 2 - There is a belief that the real estate on IMKTA's balance sheet may be understated, suggesting additional potential upside for investors [4] - The company has shown consistent growth in asset values, tangible book value, earnings per share, and share price over decades, making it a classic example of long-term value accumulation [2][4] - IMKTA's stock price has appreciated approximately 12.5% since previous coverage, reinforcing the bullish thesis on its steady profitability and undervaluation [5]

Core Points - Ingles Markets, Incorporated has declared a cash dividend of $0.165 per share on Class A Common Stock and $0.15 per share on Class B Common Stock [1] - The annual dividend rate is $0.66 for Class A and $0.60 for Class B shares [1] - Dividends are payable on October 16, 2025, to shareholders of record on October 9, 2025 [1]

Group 1 - The core focus of Crude Value Insights is on cash flow and companies that generate it, highlighting value and growth prospects in the oil and natural gas sector [1] - Subscribers benefit from a 50+ stock model account, which provides a comprehensive overview of investment opportunities [1] - The service includes in-depth cash flow analyses of exploration and production (E&P) firms, enhancing understanding of the sector's financial health [1] Group 2 - The platform offers a live chat discussion feature, fostering community engagement and real-time information sharing among subscribers [1] - A promotional two-week free trial is available for new users, encouraging exploration of the oil and gas investment service [2]

Part I – Financial Information This part presents unaudited financial statements and related disclosures [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including balance sheets, income statements, statements of changes in stockholders' equity, and cash flows, along with detailed notes explaining accounting policies, new pronouncements, and specific financial line items for the periods ended June 28, 2025, and June 29, 2024 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Presents financial position, including assets, liabilities, and equity, at specific points in time | Metric | June 28, 2025 | September 28, 2024 | | :-------------------------------- | :---------------- | :------------------- | | **Assets** | | | | Total Current Assets | $947,670,371 | $925,547,755 | | Property and Equipment - Net | $1,524,320,024 | $1,526,708,462 | | Total Assets | $2,547,149,175 | $2,527,882,715 | | **Liabilities & Equity** | | | | Total Current Liabilities | $301,418,026 | $320,621,944 | | Total Liabilities | $953,292,377 | $982,133,625 | | Total Stockholders' Equity | $1,593,856,798 | $1,545,749,090 | - **Total Assets** increased by approximately **$19.3 million** from September 28, 2024, to June 28, 2025, driven primarily by an increase in current assets, particularly receivables and inventories[8](index=8&type=chunk) - **Total Liabilities** decreased by approximately **$28.8 million**, mainly due to a reduction in current liabilities and long-term debt[8](index=8&type=chunk) - **Stockholders' Equity** increased by approximately **$48.1 million**, reflecting an increase in retained earnings[8](index=8&type=chunk) [Condensed Consolidated Statements of Income and Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Details revenues, expenses, net income, and comprehensive income over specific periods | Metric | 3 Months Ended June 28, 2025 | 3 Months Ended June 29, 2024 | 9 Months Ended June 28, 2025 | 9 Months Ended June 29, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net sales | $1,346,221,519 | $1,393,539,073 | $3,965,609,341 | $4,242,080,604 | | Gross profit | $327,330,170 | $329,758,302 | $939,441,520 | $1,000,444,341 | | Income from operations | $37,341,660 | $44,150,866 | $82,553,943 | $148,587,332 | | Net income | $26,198,955 | $31,721,599 | $57,893,310 | $107,013,826 | | Comprehensive income | $25,111,306 | $31,458,989 | $57,309,748 | $104,063,131 | | Per Share Amounts (Class A) | 3 Months Ended June 28, 2025 | 3 Months Ended June 29, 2024 | 9 Months Ended June 28, 2025 | 9 Months Ended June 29, 2024 | | :---------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Basic EPS | $1.41 | $1.71 | $3.11 | $5.76 | | Diluted EPS | $1.38 | $1.67 | $3.05 | $5.63 | | Cash dividends per share | $0.165 | $0.165 | $0.495 | $0.495 | - **Net sales** decreased by **3.4%** for the three months and **6.5%** for the nine months ended June 28, 2025, compared to the prior year periods[9](index=9&type=chunk)[10](index=10&type=chunk) - **Net income** decreased by **17.4%** for the three months and **45.9%** for the nine months ended June 28, 2025, compared to the prior year periods[9](index=9&type=chunk)[10](index=10&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Outlines changes in equity accounts, including net income, dividends, and other comprehensive income - **Total Stockholders' Equity** increased from **$1,545,749,090** at September 28, 2024, to **$1,593,856,798** at June 28, 2025, primarily due to retained earnings from net income, partially offset by cash dividends and other comprehensive losses[12](index=12&type=chunk) - The company paid consistent cash dividends of **$0.165** per Class A share and **$0.15** per Class B share each quarter[12](index=12&type=chunk) - Common stock conversions from Class B to Class A shares occurred throughout the period, with **225** Class B shares converted in the most recent quarter[12](index=12&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash flows from operating, investing, and financing activities over specific periods | Cash Flow Activity | 9 Months Ended June 28, 2025 | 9 Months Ended June 29, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | | Net Cash Provided by Operating Activities | $94,198,138 | $189,256,009 | | Net Cash Used by Investing Activities | $(86,911,187) | $(138,520,320) | | Net Cash Used by Financing Activities | $(24,887,444) | $(24,516,654) | | Net (Decrease) Increase in Cash and Cash Equivalents | $(17,600,493) | $26,219,035 | | Cash and Cash Equivalents at End of Period | $336,087,418 | $354,758,957 | - **Net cash provided by operating activities** decreased significantly by **50.3%** for the nine months ended June 28, 2025, primarily due to lower net income and increased working capital needs[13](index=13&type=chunk) - **Cash used in investing activities** decreased by **37.2%**, mainly due to lower capital expenditures in the current nine-month period[13](index=13&type=chunk) [Notes to Unaudited Interim Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Interim%20Financial%20Statements) Provides detailed explanations and disclosures for the unaudited interim financial statements [A. BASIS OF PREPARATION](index=8&type=section&id=A.%20BASIS%20OF%20PREPARATION) Describes accounting principles and presentation methods for interim financial statements - The interim financial statements are unaudited and include all necessary normal recurring adjustments for fair presentation[15](index=15&type=chunk) - Certain information and footnote disclosures have been condensed or omitted per SEC Form 10-Q rules, and should be read with the annual 10-K[15](index=15&type=chunk) [B. NEW ACCOUNTING PRONOUNCEMENTS](index=8&type=section&id=B.%20NEW%20ACCOUNTING%20PRONOUNCEMENTS) Discusses new accounting standards and their potential impact on financial statements - ASU 2020-04 (Reference Rate Reform) provided optional guidance for LIBOR transition to SOFR, which did not materially impact the financial statements[17](index=17&type=chunk) - ASU 2023-09 (Income Taxes) requires greater disaggregation of income tax disclosures, effective for fiscal years after December 15, 2024. The Company is evaluating its impact[18](index=18&type=chunk) - ASU 2023-07 (Segment Reporting) requires enhanced disclosures about segment expenses and CODM, effective for fiscal years after December 15, 2023. The Company is evaluating its impact[19](index=19&type=chunk) - ASU 2024-03 (Disaggregation of Income Statement Expenses) requires disclosures about specific expense types, effective for annual periods after December 15, 2026. The Company is evaluating its impact[20](index=20&type=chunk) [C. SHORT TERM INVESTMENTS](index=8&type=section&id=C.%20SHORT%20TERM%20INVESTMENTS) Details short-term investment policies and fair value accounting - The Company purchases financial products (money market funds, bonds, mutual funds) that are readily convertible to cash and accounts for them as short-term investments[21](index=21&type=chunk) - The carrying values of these short-term investments approximate fair value due to their liquidity[21](index=21&type=chunk

[Executive Summary](index=1&type=section&id=Executive%20Summary) Ingles Markets reports Q3 and nine-month fiscal 2025 results, highlighting decreased sales and net income, and includes the Chairman's statement [Introduction and Key Highlights](index=1&type=section&id=Introduction%20and%20Key%20Highlights) Ingles Markets, Incorporated announced Q3 and nine-month fiscal 2025 results, reporting decreased net sales and net income year-over-year - **Ingles Markets, Incorporated (NASDAQ: IMKTA)** announced results for the three and nine months ended **June 28, 2025**[1](index=1&type=chunk) [Chairman's Statement](index=1&type=section&id=Chairman's%20Statement) Chairman Robert P. Ingle II thanked associates for delivering value and a positive shopping experience to customers - **Chairman Robert P. Ingle II** acknowledged associates for delivering value and a great shopping experience[2](index=2&type=chunk) [Third Quarter Fiscal 2025 Financial Performance](index=1&type=section&id=Third%20Quarter%20Fiscal%202025%20Financial%20Performance) This section details Ingles Markets' Q3 fiscal 2025 financial performance, including net sales, gross profit, operating expenses, and net income [Net Sales and Gross Profit Analysis](index=1&type=section&id=Net%20Sales%20and%20Gross%20Profit%20Analysis) Q3 FY2025 net sales decreased by **2.68%**, with gross profit percentage of sales increasing, reflecting improved margin efficiency despite an absolute decrease Third Quarter Financial Highlights (YoY) | Metric | Q3 FY2025 (Millions) | Q3 FY2024 (Millions) | Change (%) | | :------------------ | :------------------- | :------------------- | :--------- | | Net Sales | $1,346.2 | $1,393.5 | -2.68% | | Gross Profit | $327.3 | $329.8 | -0.76% | | Gross Profit % of Sales | 24.3% | 23.7% | +0.6 pp | [Operating Expenses and Interest Expense](index=1&type=section&id=Operating%20Expenses%20and%20Interest%20Expense) Q3 FY2025 operating and administrative expenses increased by **1.33%**, while interest expenses decreased by **9.31%**, positively impacting the bottom line Third Quarter Expenses (YoY) | Metric | Q3 FY2025 (Millions) | Q3 FY2024 (Millions) | Change (%) | | :------------------------------ | :------------------- | :------------------- | :--------- | | Operating & Administrative Expenses | $290.1 | $286.3 | +1.33% | | Interest Expenses | $4.9 | $5.4 | -9.31% | [Net Income and Earnings Per Share](index=1&type=section&id=Net%20Income%20and%20Earnings%20Per%20Share) Q3 FY2025 net income decreased by **17.39%** year-over-year, resulting in a corresponding decline in basic and diluted EPS for both common stock classes Third Quarter Net Income and EPS (YoY) | Metric | Q3 FY2025 | Q3 FY2024 | Change (%) | | :--------------------------- | :-------- | :-------- | :--------- | | Net Income (Millions) | $26.2 | $31.7 | -17.39% | | Basic EPS – Class A | $1.41 | $1.71 | -17.54% | | Diluted EPS – Class A | $1.38 | $1.67 | -17.40% | | Basic EPS – Class B | $1.28 | $1.55 | -17.39% | | Diluted EPS – Class B | $1.28 | $1.55 | -17.39% | [Nine Months Fiscal 2025 Financial Performance](index=1&type=section&id=Nine%20Months%20Fiscal%202025%20Financial%20Performance) This section analyzes Ingles Markets' nine-month fiscal 2025 financial performance, covering sales, profits, expenses, debt, and capital expenditures [Net Sales and Gross Profit Analysis](index=1&type=section&id=Net%20Sales%20and%20Gross%20Profit%20Analysis) Nine-month FY2025 net sales decreased by **6.52%**, with gross profit also declining but maintaining a stable percentage of sales, indicating consistent margin performance Nine Month Financial Highlights (YoY) | Metric | 9M FY2025 (Millions) | 9M FY2024 (Millions) | Change (%) | | :------------------ | :------------------- | :------------------- | :--------- | | Net Sales | $3,965.6 | $4,242.1 | -6.52% | | Gross Profit | $939.4 | $1,000.4 | -6.10% | | Gross Profit % of Sales | 23.7% | 23.6% | +0.1 pp | [Operating Expenses, Interest Expense, and Debt](index=1&type=section&id=Operating%20Expenses%2C%20Interest%20Expense%2C%20and%20Debt) Nine-month FY2025 operating expenses remained stable, interest expense declined by **11.45%**, and total debt reduced by **3.34%**, reflecting improved financial management Nine Month Expenses and Debt (YoY) | Metric | 9M FY2025 (Millions) | 9M FY2024 (Millions) | Change (%) | | :------------------------------ | :------------------- | :------------------- | :--------- | | Operating & Administrative Expenses | $860.0 | $860.8 | -0.09% | | Interest Expense | $14.7 | $16.7 | -11.45% | | Total Debt (as of period end) | $518.0 | $535.9 | -3.34% | [Net Income and Earnings Per Share](index=2&type=section&id=Net%20Income%20and%20Earnings%20Per%20Share) Nine-month FY2025 net income significantly decreased by **45.89%**, leading to a substantial reduction in basic and diluted EPS for both common stock classes Nine Month Net Income and EPS (YoY) | Metric | 9M FY2025 | 9M FY2024 | Change (%) | | :--------------------------- | :-------- | :-------- | :--------- | | Net Income (Millions) | $57.9 | $107.0 | -45.89% | | Basic EPS – Class A | $3.11 | $5.76 | -46.01% | | Diluted EPS – Class A | $3.05 | $5.63 | -45.79% | | Basic EPS – Class B | $2.83 | $5.23 | -45.89% | | Diluted EPS – Class B | $2.83 | $5.23 | -45.89% | [Capital Expenditures and Liquidity](index=2&type=section&id=Capital%20Expenditures%20and%20Liquidity) Nine-month FY2025 capital expenditures decreased by **36%**, with full-year projections between **$120 million** and **$160 million**, and sufficient liquidity Capital Expenditures (YoY) | Metric | 9M FY2025 (Millions) | 9M FY2024 (Millions) | Change (%) | | :------------------------------ | :------------------- | :------------------- | :--------- | | Capital Expenditures | $91.4 | $143.0 | -36.08% | - Fiscal year 2025 capital expenditures are projected to be approximately **$120 million to $160 million**[8](index=8&type=chunk) - The Company has a **$150.0 million** line of credit with only **$500,000** outstanding and believes its financial resources are sufficient for foreseeable capital expenditures, debt service, and working capital[9](index=9&type=chunk) [Company Profile and Disclosures](index=2&type=section&id=Company%20Profile%20and%20Disclosures) This section outlines Ingles Markets' company profile, operations, and store network, alongside cautionary notes regarding forward-looking statements [About Ingles Markets, Incorporated](index=2&type=section&id=About%20Ingles%20Markets%2C%20Incorporated) Ingles Markets, Incorporated operates **197** supermarkets in six southeastern states, manages shopping centers, and expects three hurricane-closed stores to reopen - Ingles Markets operates **197** supermarkets in six southeastern states and is headquartered in Asheville, North Carolina[10](index=10&type=chunk) - The company also operates neighborhood shopping centers and owns a fluid dairy facility[10](index=10&type=chunk) - **Three** stores temporarily closed due to Hurricane Helene are expected to reopen in **late 2025 or 2026**[10](index=10&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=2&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section provides a cautionary note that forward-looking statements are subject to risks and uncertainties, and actual results may differ materially - The press release contains forward-looking statements subject to risks and uncertainties, including business and economic conditions, inflation, labor shortages, competition, and financing[11](index=11&type=chunk) - Actual results may differ materially from expectations, and the company does not commit to updating forward-looking information[11](index=11&type=chunk) [Unaudited Financial Statements](index=3&type=section&id=Unaudited%20Financial%20Statements) This section presents the unaudited condensed consolidated statements of income and balance sheets for the reported periods [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section presents the unaudited condensed consolidated statements of income for the three and nine months ended June 28, 2025, detailing revenue, expenses, and net income Condensed Consolidated Statements of Income (Unaudited) | Metric (Amounts in thousands) | Three Months Ended June 28, 2025 | Three Months Ended June 29, 2024 | Nine Months Ended June 28, 2025 | Nine Months Ended June 29, 2024 | | :---------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net sales | $1,346,222 | $1,393,539 | $3,965,609 | $4,242,081 | | Gross profit | 327,330 | 329,758 | 939,442 | 1,000,444 | | Operating and administrative expenses | 290,131 | 286,250 | 859,985 | 860,839 | | Gain from sale or disposal of assets | 143 | 643 | 3,097 | 8,982 | | Income from operations | 37,342 | 44,151 | 82,554 | 148,587 | | Other income, net | 2,769 | 3,554 | 8,909 | 10,542 | | Interest expense | 4,856 | 5,359 | 14,746 | 16,653 | | Income tax expense | 9,056 | 10,624 | 18,824 | 35,462 | | Net income | $26,199 | $31,722 | $57,893 | $107,014 | | Basic earnings per common share – Class A | $1.41 | $1.71 | $3.11 | $5.76 | | Diluted earnings per common share – Class A | $1.38 | $1.67 | $3.05 | $5.63 | | Basic earnings per common share – Class B | $1.28 | $1.55 | $2.83 | $5.23 | | Diluted earnings per common share – Class B | $1.28 | $1.55 | $2.83 | $5.23 | | Depreciation and amortization expense | $30,678 | $29,509 | $92,214 | $87,532 | | Rent expense | $1,779 | $2,534 | $5,507 | $7,591 | [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the unaudited condensed consolidated balance sheets as of June 28, 2025, and September 28, 2024, detailing assets, liabilities, and equity Condensed Consolidated Balance Sheets (Unaudited) | Metric (Amounts in thousands) | June 28, 2025 | Sept. 28, 2024 | | :---------------------------- | :------------ | :------------- | | **ASSETS** | | | | Cash and cash equivalents | $336,087 | $353,688 | | Receivables-net | 102,278 | 78,266 | | Inventories | 487,545 | 462,085 | | Other current assets | 21,760 | 31,509 | | Property and equipment-net | 1,524,320 | 1,526,708 | | Other assets | 75,159 | 75,627 | | **TOTAL ASSETS** | **$2,547,149**| **$2,527,883** | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Current maturities of long-term debt | $17,453 | $17,521 | | Accounts payable, accrued expenses and current portion of other long-term liabilities | 283,965 | 303,101 | | Deferred income taxes | 67,575 | 63,767 | | Long-term debt | 500,558 | 515,102 | | Other long-term liabilities | 83,741 | 82,643 | | Total Liabilities | 953,292 | 982,134 | | Stockholders' equity | 1,593,857 | 1,545,749 | | **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** | **$2,547,149**| **$2,527,883** |

Group 1 - The core viewpoint is that Ingles Markets, Incorporated (NASDAQ: IMKTA) is reaffirmed as a 'strong buy' candidate despite experiencing some business weakness [1] - The company operates in the grocery sector, which has shown resilience even in challenging market conditions [1] Group 2 - Crude Value Insights provides an investing service focused on oil and natural gas, emphasizing cash flow and growth prospects [1] - Subscribers benefit from a stock model account, cash flow analyses of exploration and production firms, and live discussions about the sector [2]

[Part I – Financial Information](index=2&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) This section presents the unaudited financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures for the reporting period [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including balance sheets, income statements, statements of changes in stockholders' equity, and cash flow statements, along with detailed notes explaining the basis of preparation, significant accounting policies, and specific financial line items for the periods ended March 29, 2025, and March 30, 2024 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's assets, liabilities, and equity at specific points in time Balance Sheet Summary | Metric | March 29, 2025 (in dollars) | September 28, 2024 (in dollars) | | :--------------------------------- | :------------- | :----------------- | | Total Assets | $2,506,421,683 | $2,527,882,715 | | Total Liabilities | $934,608,825 | $982,133,625 | | Total Stockholders' Equity | $1,571,812,858 | $1,545,749,090 | - Total Assets decreased by approximately **$21.46 million** from September 28, 2024, to March 29, 2025[8](index=8&type=chunk) - Total Liabilities decreased by approximately **$47.52 million**, while Total Stockholders' Equity increased by approximately **$26.06 million** during the same period[8](index=8&type=chunk) [Condensed Consolidated Statements of Income and Comprehensive Income (Three Months)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income%20(Three%20Months)) This section details the company's financial performance, including net sales, gross profit, and net income, for the three-month period Three-Month Income Statement Summary | Metric | March 29, 2025 (in dollars) | March 30, 2024 (in dollars) | Change (YoY) | | :--------------------------------- | :------------- | :------------- | :----------- | | Net sales | $1,331,273,155 | $1,367,479,701 | -2.65% | | Gross profit | $310,976,634 | $321,884,960 | -3.39% | | Income from operations | $21,640,338 | $44,809,057 | -51.70% | | Net income | $15,106,015 | $31,898,626 | -52.65% | | Basic EPS (Class A) | $0.81 | $1.72 | -52.91% | | Diluted EPS (Class A) | $0.80 | $1.68 | -52.38% | | Basic EPS (Class B) | $0.74 | $1.56 | -52.56% | | Diluted EPS (Class B) | $0.74 | $1.56 | -52.56% | - Net sales decreased by **$36.2 million**, or **2.7%**, for the three months ended March 29, 2025, compared to the prior year[10](index=10&type=chunk)[79](index=79&type=chunk) - Net income significantly declined by **52.65%** year-over-year, from **$31.9 million** to **$15.1 million**[10](index=10&type=chunk)[78](index=78&type=chunk) [Condensed Consolidated Statements of Income and Comprehensive Income (Six Months)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income%20(Six%20Months)) This section details the company's financial performance, including net sales, gross profit, and net income, for the six-month period Six-Month Income Statement Summary | Metric | March 29, 2025 (in dollars) | March 30, 2024 (in dollars) | Change (YoY) | | :--------------------------------- | :------------- | :------------- | :----------- | | Net sales | $2,619,387,821 | $2,848,541,531 | -8.04% | | Gross profit | $612,111,349 | $670,686,039 | -8.73% | | Income from operations | $45,212,282 | $104,436,466 | -56.70% | | Net income | $31,694,355 | $75,292,227 | -57.92% | | Basic EPS (Class A) | $1.70 | $4.05 | -58.02% | | Diluted EPS (Class A) | $1.67 | $3.96 | -57.83% | | Basic EPS (Class B) | $1.55 | $3.68 | -57.90% | | Diluted EPS (Class B) | $1.55 | $3.68 | -57.90% | - Net sales decreased by **$229.2 million**, or **8.0%**, for the six months ended March 29, 2025, compared to the prior year[12](index=12&type=chunk)[89](index=89&type=chunk) - Net income for the six-month period declined by **57.92%** year-over-year, from **$75.3 million** to **$31.7 million**[12](index=12&type=chunk)[88](index=88&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This section outlines changes in the company's equity components, including retained earnings and common stock, over the reporting period - Total Stockholders' Equity increased from **$1,545,749,090** at September 28, 2024, to **$1,571,812,858** at March 29, 2025[14](index=14&type=chunk) - Retained earnings increased by **$25.56 million** during the six-month period, primarily due to net income partially offset by cash dividends[14](index=14&type=chunk) - Common stock conversions from Class B to Class A shares occurred, with **1,305 Class A shares** issued and **1,305 Class B shares** converted during the three months ended March 29, 2025[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the cash inflows and outflows from operating, investing, and financing activities for the period Cash Flow Summary | Cash Flow Activity | Six Months Ended March 29, 2025 (in dollars) | Six Months Ended March 30, 2024 (in dollars) | Change (YoY) | | :--------------------------------- | :------------------------------ | :------------------------------ | :----------- | | Net Cash Provided by Operating Activities | $19,412,573 | $85,973,987 | -77.42% | | Net Cash Used by Investing Activities | $(57,896,507) | $(94,644,183) | 38.79% | | Net Cash Used by Financing Activities | $(17,874,510) | $(17,851,878) | -0.13% | | Net Decrease in Cash and Cash Equivalents | $(56,358,444) | $(26,522,074) | -112.50% | | Cash and Cash Equivalents at End of Period | $297,329,467 | $302,017,848 | -1.55% | - Net cash provided by operating activities decreased significantly by **$66.6 million**, or **77.42%**, primarily due to lower net income and increased working capital needs[16](index=16&type=chunk)[104](index=104&type=chunk) - Cash used in investing activities decreased by **$36.7 million**, mainly due to lower capital expenditures[16](index=16&type=chunk)[105](index=105&type=chunk) [Notes to Unaudited Interim Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Interim%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the unaudited interim financial statements [A. BASIS OF PREPARATION](index=8&type=section&id=A.%20BASIS%20OF%20PREPARATION) This note describes the accounting principles and assumptions used in preparing the interim financial statements - The interim financial statements are unaudited and include all necessary adjustments of a normal recurring nature to fairly present the financial position and results of operations[18](index=18&type=chunk) - Results for the interim periods are not necessarily indicative of the full fiscal year[19](index=19&type=chunk) [B. NEW ACCOUNTING PRONOUNCEMENTS](index=8&type=section&id=B.%20NEW%20ACCOUNTING%20PRONOUNCEMENTS) This note outlines recently issued accounting standards and their potential impact on