Ingles Markets(IMKTA) - 2025 Q3 - Quarterly Report

Part I – Financial Information This part presents unaudited financial statements and related disclosures 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 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 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] - Total Liabilities decreased by approximately $28.8 million, mainly due to a reduction in current liabilities and long-term debt[8] - Stockholders' Equity increased by approximately $48.1 million, reflecting an increase in retained earnings[8] Condensed Consolidated Statements of Income and Comprehensive Income 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][10] - 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][10] Condensed Consolidated Statements of Changes in Stockholders' Equity 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] - The company paid consistent cash dividends of $0.165 per Class A share and $0.15 per Class B share each quarter[12] - 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] Condensed Consolidated Statements of Cash Flows 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] - Cash used in investing activities decreased by 37.2%, mainly due to lower capital expenditures in the current nine-month period[13] Notes to Unaudited Interim Financial Statements Provides detailed explanations and disclosures for the unaudited interim financial statements A. BASIS OF PREPARATION 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] - 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] B. NEW ACCOUNTING PRONOUNCEMENTS 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] - 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] - 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] - 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] C. SHORT TERM INVESTMENTS 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] - The carrying values of these short-term investments approximate fair value due to their liquidity[21](index=21&type=chunk