Ingles Markets(IMKTA) - 2025 Q2 - Quarterly Report

Part I – Financial Information 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) 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 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] - Total Liabilities decreased by approximately $47.52 million, while Total Stockholders' Equity increased by approximately $26.06 million during the same period[8] Condensed Consolidated Statements of Income and Comprehensive Income (Three Months) 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][79] - Net income significantly declined by 52.65% year-over-year, from $31.9 million to $15.1 million[10][78] Condensed Consolidated Statements of Income and Comprehensive Income (Six Months) 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][89] - Net income for the six-month period declined by 57.92% year-over-year, from $75.3 million to $31.7 million[12][88] Condensed Consolidated Statements of Changes in Stockholders' Equity 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] - Retained earnings increased by $25.56 million during the six-month period, primarily due to net income partially offset by cash dividends[14] - 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] Condensed Consolidated Statements of Cash Flows 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][104] - Cash used in investing activities decreased by $36.7 million, mainly due to lower capital expenditures[16][105] Notes to Unaudited Interim Financial Statements This section provides detailed explanations and disclosures supporting the unaudited interim financial statements A. BASIS OF PREPARATION 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] - Results for the interim periods are not necessarily indicative of the full fiscal year[19] B. NEW ACCOUNTING PRONOUNCEMENTS This note outlines recently issued accounting standards and their potential impact on