Village Super Market, Inc. Reports Results for the First Quarter Ended October 27, 2018
December 06 2018 - 8:00AM
Village Super Market, Inc. (NASDAQ:VLGEA) today reported its
results of operations for the first quarter ended October 27,
2018.
Net income was $6,269,000 in the first quarter
of fiscal 2019 compared to $3,016,000 in the first quarter of the
prior year. The first quarter of fiscal 2019 includes a
$290,000 gain for Superstorm Sandy insurance proceeds received.
Excluding this item from the first quarter of fiscal 2019, net
income increased 98% in the first quarter of fiscal 2019 compared
to the prior year primarily due to increased same store sales,
higher gross profit margins and the favorable impact of the Tax
Act.
Sales were $401,550,000 in the first quarter of
fiscal 2019, an increase of 3.7% compared to the first quarter of
the prior year. Sales increased 3.7% due to the opening
of the Bronx, New York City store on June 28, 2018 and a same store
sales increase of 1.3%. Sames store sales increased due
primarily to growth in recently remodeled and expanded stores
partially offset by the impact of one competitor store
opening. The Company expects same store sales in fiscal 2019
to increase .5% to 2.5%. New stores and replacement
stores are included in same store sales in the quarter after the
store has been in operation for four full
quarters. Store renovations and expansions are included
in same store sales immediately.
Gross profit as a percentage of sales increased
to 27.92% in the first quarter of fiscal 2019 compared to 27.05% in
the first quarter of the prior year primarily due to decreased
promotional spending, increased departmental gross margin
percentages, a favorable change in product mix, increased patronage
dividends and other rebates from Wakefern and decreased warehouse
assessment charges from Wakefern.
Operating and administrative expense as a
percentage of sales decreased to 23.98% in the first quarter of
fiscal 2019 compared to 24.06% in the first quarter of the prior
year due primarily to a gain for Superstorm Sandy insurance
proceeds received (.10%). Excluding this gain, Operating and
administrative expenses as a percentage of sales increased .02% in
the first quarter of fiscal 2019 compared to the first quarter of
the prior year.
Village Super Market operates a chain of 30
supermarkets under the ShopRite name in New Jersey, Maryland,
northeastern Pennsylvania and New York City.
Forward Looking Statements
All statements, other than statements of
historical fact, included in this Press Release are or may be
considered forward-looking statements within the meaning of federal
securities law. The Company cautions the reader that there is no
assurance that actual results or business conditions will not
differ materially from future results, whether expressed, suggested
or implied by such forward-looking statements. The Company
undertakes no obligation to update forward-looking statements to
reflect developments or information obtained after the date hereof.
The following are among the principal factors that could cause
actual results to differ from the forward-looking statements:
economic conditions; competitive pressures from the Company’s
operating environment; the ability of the Company to maintain and
improve its sales and margins; the ability to attract and retain
qualified associates; the availability of new store locations; the
availability of capital; the liquidity of the Company; the success
of operating initiatives; consumer spending patterns; the impact of
changing energy prices; increased cost of goods sold, including
increased costs from the Company’s principal supplier, Wakefern;
disruptions or changes in Wakefern's operations; the results of
litigation; the results of tax examinations; the results of union
contract negotiations; competitive store openings and closings; the
rate of return on pension assets; and other factors detailed herein
and in the Company’s filings with the SEC.
|
VILLAGE SUPER MARKET, INC. |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(In thousands, except per share amounts)
(Unaudited) |
|
|
13 Weeks Ended |
|
October 27, 2018 |
|
October 28, 2017 (1) |
|
|
|
|
Sales |
$ |
401,550 |
|
|
$ |
387,340 |
|
|
|
|
|
Cost of sales |
289,437 |
|
|
282,548 |
|
|
|
|
|
Gross profit |
112,113 |
|
|
104,792 |
|
|
|
|
|
Operating and
administrative expense |
96,293 |
|
|
93,205 |
|
|
|
|
|
Depreciation and
amortization |
6,898 |
|
|
6,235 |
|
|
|
|
|
Operating income |
8,922 |
|
|
5,352 |
|
|
|
|
|
Interest expense |
(1,116 |
) |
|
(1,105 |
) |
|
|
|
|
Interest income |
1,178 |
|
|
900 |
|
|
|
|
|
Income before income
taxes |
8,984 |
|
|
5,147 |
|
|
|
|
|
Income taxes |
2,715 |
|
|
2,131 |
|
|
|
|
|
Net income |
$ |
6,269 |
|
|
$ |
3,016 |
|
|
|
|
|
Net income
per share: |
|
|
Class A common
stock: |
|
|
|
Basic |
$ |
0.49 |
|
|
$ |
0.23 |
|
Diluted |
$ |
0.43 |
|
|
$ |
0.21 |
|
|
|
|
|
Class B common
stock: |
|
|
|
Basic |
$ |
0.32 |
|
|
$ |
0.15 |
|
Diluted |
$ |
0.32 |
|
|
$ |
0.15 |
|
|
|
|
|
Gross profit as a % of
sales |
27.92 |
% |
|
27.05 |
% |
Operating and
administrative expense as a % of sales |
23.98 |
% |
|
24.06 |
% |
|
|
|
|
|
|
(1) The Company adopted ASU No. 2014-09,
“Revenue from Contracts with Customers,” using the full
retrospective approach in fiscal 2019. As a result of the adoption
of the standard, $913 of certain other income streams, including
commissions for gift card and lottery sales and services fees for
ShopRite From Home, that were previously presented as a reduction
in operating expenses were reclassified to sales for the 13 week
period ended October 28, 2017. Additionally, $47 of
pharmacy fees previously recorded as cost of sales were
reclassified as a reduction of sales for the 13 week period ended
October 28, 2017.
|
|
Contact: |
John Van Orden,
CFO |
|
(973) 467-2200 |
|
john.vanorden@wakefern.com |
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