Village Super Market(VLGEA) - 2025 Q3 - Quarterly Report

Sales Performance - Sales for the 13 weeks ended April 26, 2025, were $563,669, an increase of 3.2$1,721,016, an increase of 3.8% compared to the same period in 2024, with same store sales up by 2.2% [64]. - The Company expects same store sales to increase between 1.5% and 2.5% in fiscal 2025 [94]. Net Income and Profitability - Net income for the 13 weeks ended April 26, 2025, was $11,161, compared to$8,966 for the same period in 2024, with adjusted net income increasing by 21% to $11,633 [72]. - Gross profit as a percentage of sales increased by 0.23$71,538 in the 39 weeks ended April 26, 2025, compared to $58,040 in the prior year, primarily due to an increase in net income and changes in working capital [76]. - The Company believes that cash and cash equivalents, operating cash flow, and the Credit Facility will be sufficient to meet liquidity needs for the next twelve months [90]. - The Company has a credit facility with a maximum borrowing amount of$75,000, with interest rates based on the Secured Overnight Financing Rate (SOFR) plus 1.25% [84]. Capital Expenditures and Investments - Capital expenditures for the 39 weeks ended April 26, 2025, totaled $48,705, with significant investments in store construction and technology upgrades [77]. - The budgeted capital expenditures for fiscal 2025 have been revised downward to approximately$65,000 due to a delay in the opening of the East Orange, NJ replacement store, now expected in early fiscal 2026 [78]. Store Operations and Changes - The company opened a 72,000 sq. ft. replacement ShopRite store in Watchung, NJ, on April 9, 2025, replacing a 44,000 sq. ft. store [57]. - The company closed an 8,400 sq. ft. Gourmet Garage store in New York City on November 1, 2023, with no material impact on consolidated financial statements [58]. - The company operates a centralized commissary to enhance production efficiency and product quality across its stores [55]. Working Capital - Working capital decreased to $11,144 at April 26, 2025, from$25,485 at July 27, 2024, with working capital ratios of 1.06 and 1.15, respectively [83]. Pension and Insurance Liabilities - Certain multi-employer pension plans are underfunded, leading to potential increases in contributions and impacts on collective bargaining agreements [98]. - The company utilizes a mix of insurance and self-insurance for various liabilities, with projections of losses being highly variable due to multiple factors [98]. Asset Management - Long-lived assets, including store property and equipment, are subject to impairment testing, which could result in charges if cash flow levels are insufficient [98]. - Goodwill and indefinite-lived intangible assets are tested for impairment annually, with potential charges if acquired businesses do not meet forecasted expectations [98]. - Wakefern provides information system support for business management, which is vulnerable to interruptions that could adversely affect operations [98].