Village Super Market(VLGEA) - 2025 Q2 - Quarterly Report

Financial Performance - Sales for the 13 weeks ended January 25, 2025, were $599,651, an increase of 4.2% compared to the same period in 2024, driven by a 2.3% increase in same store sales and the opening of a new store [60]. - Net income for the 13 weeks ended January 25, 2025, was$ 16,896, compared to $14,480 for the same period in 2024, reflecting a growth in profitability [70]. - Gross profit as a percentage of sales decreased by 0.05% in the 13 weeks ended January 25, 2025, primarily due to higher promotional spending and an unfavorable change in product mix [62]. - Operating and administrative expenses as a percentage of sales decreased by 0.49% in the 13 weeks ended January 25, 2025, attributed to lower facility insurance costs and decreased legal fees [64]. - The effective income tax rate was 31.1% for both the 13 and 26 weeks ended January 25, 2025, down from 31.5% in the same periods of 2024 [69]. Capital Expenditures and Investments - Capital expenditures for the 26 weeks ended January 25, 2025, totaled$ 27,548, primarily for the construction of replacement stores and technology upgrades [74]. - The company has budgeted $75,000 for capital expenditures in fiscal 2025, including costs for new store constructions and various upgrades [75]. - Capital expenditures are budgeted at$ 75,000 for fiscal 2025, including construction of replacement stores and various upgrades [91]. - The Company has budgeted for several smaller store remodels and merchandising initiatives as part of its capital expenditures [91]. Cash Flow and Liquidity - Net cash provided by operating activities was $60,952 for the 26 weeks ended January 25, 2025, compared to$ 48,674 in the prior year, driven by increased net income and changes in working capital [73]. - The Company believes cash and cash equivalents, along with operating cash flow, will be sufficient to meet liquidity needs for the foreseeable future [87]. Debt and Financing - The Company has a credit facility with a maximum borrowing amount of $75,000, expiring on May 6, 2025, with interest at SOFR plus 1.10% [81]. - A secured term loan of$ 50,000 was issued on September 1, 2020, with a fixed effective interest rate of 2.18%, repayable through September 1, 2035 [81]. - The Company has a secured term loan of $7,125 issued on January 27, 2023, with a fixed effective interest rate of 5.34%, repayable through January 27, 2038 [82]. Operational Outlook - The Company expects same store sales to increase between 1.0% and 3.0% in fiscal 2025 [91]. - The effective income tax rate is projected to be in the range of 31.0% - 32.0% for fiscal 2025 [91]. - Approximately 91% of employees are covered by collective bargaining agreements, which could impact financial results if work stoppages occur [91]. - The Company is vulnerable to economic downturns in New Jersey, New York, Pennsylvania, and Maryland, which could materially impact operations [91]. Store Openings - The company opened an 83,000 sq. ft. replacement ShopRite store in Old Bridge, NJ, on March 17, 2024, replacing a smaller 32,000 sq. ft. store [58]. Working Capital - Working capital was$ 24,821 at January 25, 2025, compared to $25,485 at July 27, 2024, with working capital ratios of 1.13 and 1.15, respectively [80].