Ingles Markets Files 2024 10-K

Ticker: IMKTA · Form: 10-K · Filed: Dec 27, 2024 · CIK: 50493

Sentiment: neutral

Topics: 10-K, annual-report, retail, grocery

Related Tickers: IMKT

TL;DR

INGLES MARKETS (IMKT) FILED 2024 10-K. FULL FINANCIAL PICTURE AVAILABLE.

AI Summary

Ingles Markets Inc. filed its 2024 10-K report on December 27, 2024, detailing its fiscal year ending September 28, 2024. The company, a grocery store retailer, is incorporated in North Carolina and headquartered in Asheville. Key financial data and stock information are included in this comprehensive annual filing.

Why It Matters

This filing provides investors and analysts with a detailed overview of Ingles Markets' financial performance and operational status for the past fiscal year, crucial for understanding the company's health and future prospects.

Risk Assessment

Risk Level: low — This is a standard annual financial filing with no immediate red flags or unusual disclosures.

Key Numbers

Key Players & Entities

FAQ

What is the primary business of Ingles Markets Inc.?

Ingles Markets Inc. is primarily engaged in the retail grocery store business, as indicated by its SIC code 5411.

When did Ingles Markets Inc. file its 2024 10-K report?

Ingles Markets Inc. filed its 2024 10-K report on December 27, 2024.

What is the fiscal year end for Ingles Markets Inc. as reported in this 10-K?

The fiscal year end for Ingles Markets Inc. in this report is September 28, 2024.

Where is Ingles Markets Inc. headquartered?

Ingles Markets Inc. is headquartered in Asheville, North Carolina, with a mailing address also in Asheville, NC.

What is the Central Index Key (CIK) for Ingles Markets Inc.?

The Central Index Key for Ingles Markets Inc. is 0000050493.

Filing Stats: 4,395 words · 18 min read · ~15 pages · Grade level 12.5 · Accepted 2024-12-27 16:15:01

Key Financial Figures

Filing Documents

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 11 Item 1B. Unresolved Staff Comments 14 Item 1C. Cybersecurity 14 Item 2.

Properties

Properties 15 Item 3.

Legal Proceedings

Legal Proceedings 15 Item 4. Mine Safety Disclosures 16 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 16 Item 6. [Reserved] 18 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 7A.

Quantitative and Qualitative Disclosures About Market Risks

Quantitative and Qualitative Disclosures About Market Risks 24 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 25 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 25 Item 9A.

Controls and Procedures

Controls and Procedures 25 Item 9B. Other Information 26 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 26 PART III Item 10. Directors, Executive Officers and Corporate Governance 26 Item 11.

Executive Compensation

Executive Compensation 27 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 27 Item 13. Certain Relationships and Related Transactions, and Director Independence 27 Item 14. Principal Accountant Fees and Services 27 PART IV Item 15. Exhibits and Financial Statement Schedules 27 Item 16. Form 10-K Summary 29 Report of Independent Registered Public Accounting Firm PCAOB ID No. 34 30 3 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K of Ingles Markets, Incorporated ("Ingles" or the "Company") contains certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical fact included in this Annual Report on Form 10-K, including the statements under "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Business" and elsewhere regarding the Company's strategy, future operations, financial position, estimated revenues, projected costs, projections, prospects, plans and objectives of management, are forward - looking statements. The words "expect", "anticipate", "intend", "plan", "likely", "goal", "believe", "seek", "will", "may", "would", "should" and similar expressions are intended to identify forward-looking statements. While these forward-looking statements and the related assumptions are made in good faith and reflect the Company's current judgment regarding the direction of the Company's business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested or described by such forward-looking statements. Such statements are based upon a number of assumptions and estimates that are inherently subject to significant risks and uncertainties, many of which are beyond the Company's control. Some of these assumptions inevitably

BUSINESS

Item 1. BUSINESS General Ingles Markets, Incorporated, a North Carolina corporation (collectively with its subsidiaries, "Ingles," or the "Company," "we," "us" or "our"), is a leading supermarket chain in the southeast United States and operates a total of 198 supermarkets in North Carolina (75), Georgia (65), South Carolina (35), Tennessee (21), Virginia (1) and Alabama (1). Impact of Hurricane Helene On September 27, 2024, Hurricane Helene severely impacted western North Carolina, including the area where the Company's headquarters are located, resulting in catastrophic flooding and destruction, power and communication outages, water outages, major road closures, and loss of life. For the year ended September 28, 2024, the Company recognized an impairment loss of $30.4 million related to inventory damaged or destroyed by Hurricane Helene. Additionally, the Company recognized a property and equipment impairment loss of $4.5 million for the year ended September 28, 2024 pertaining to the same storm. These recorded losses do not include future repairs and rebuilds, nor do they account for revenue lost due to store closures or electronic payment disruptions. The Company's properties, including its distribution center, were impacted; however, the distribution center returned to full operation within two weeks following the storm. Four stores sustained damage that required that they be temporarily closed. As of the date of this Annual Report on Form 10-K, one of the four stores has reopened and the three remaining stores are scheduled to reopen during 2025. Overview The Company remodels, expands and relocates stores in these communities and builds stores in new locations to retain and grow its customer base while retaining a high level of customer service and convenience. Ingles supermarkets offer customers a wide variety of nationally advertised food products, including grocery, meat and dairy products, produce, frozen foods and other perishables, and non

Business

Business The Company operates one primary business segment, retail grocery, on a 52- or 53-week fiscal year ending on the last Saturday in September. The consolidated statements of income for the fiscal years ended September 28, 2024 and September 24, 2022 each consisted of 52 weeks of operations. The consolidated statements of income for the fiscal year ended September 30, 2023 had 53 weeks. Income from operations for the primary business segment, retail grocery sales, includes the charges for impairment losses from Hurricane Helene of $34.9 million. Information about the Company's operations is as follows (for information regarding the Company's industry segments, see Note 11, "Segment Information" to the Consolidated Financial Statements contained in this Annual Report on Form 10-K): Fiscal Years Ended (dollars in millions) September 28, 2024 September 30, 2023 September 24, 2022 Revenues from unaffiliated customers: Grocery $ 1,983.2 $ 2,062.4 $ 1,940.4 Non-foods 1,273.3 1,326.9 1,204.5 Perishables 1,441.1 1,482.1 1,445.0 Fuel 724.2 792.5 885.8 Total retail 5,421.8 96.1% 5,663.9 96.1% 5,475.7 96.4% Other 217.8 3.9% 228.9 3.9% 203.1 3.6% $ 5,639.6 100.0% $ 5,892.8 100.0% $ 5,678.8 100.0% Income from operations: Retail $ 123.0 83.6% $ 263.2 90.0% $ 353.0 93.7% Other 24.2 16.4% 29.1 10.0% 23.9 6.3% 147.2 100.0% 292.3 100.0% 376.9 100.0% Other income, net 14.2 8.3 5.9 Interest expense 21.9 22.1 21.5 Income before income taxes $ 139.5 $ 278.5 $ 361.3 The "Grocery" category includes grocery, dairy and frozen foods. The "Non-foods" category includes alcoholic beverages, tobacco, pharmacy, and health/beauty/cosmetic products. The "Perishables" category includes meat, produce, deli and bakery. The "Other" category consists of fluid dairy operations and shopping center rentals. Supermarket

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