Market Overview

Village Super Market, Inc. Reports Results for the Second Quarter Ended January 28, 2017

Share:

SPRINGFIELD, N.J., March 08, 2017 (GLOBE NEWSWIRE) -- Village Super Market, Inc. (NASDAQ:VLGEA) today reported its results of operations for the second quarter ended January 28, 2017.

Net income was $5,992,000 in the second quarter of fiscal 2017 compared to $6,284,000 in the second quarter of the prior year.  Net income decreased 5% in the second quarter of fiscal 2017 compared to the prior year due primarily to lower same store sales and higher operating and administrative expenses.

Sales were $412,215,000 in the second quarter of fiscal 2017 compared to $420,170,000 in the second quarter of the prior year.  Same store sales decreased 1.9% due primarily to four competitor store openings, deflation in the meat, dairy and produce departments and very high sales in the last week of the second quarter of prior year as customers prepared for Winter Storm Jonas. These decreases were offset by increased sales due to three competitor store closings and sales growth in recently remodeled and expanded stores in Stirling and Chester.  Excluding the positive impact of Winter Storm Jonas on the last week of the second quarter of fiscal 2016, same store sales decreased .5%.  The Company expects same store sales in fiscal 2017 to range from a 1.0% decrease to flat.  

Gross profit as a percentage of sales increased to 26.99% in the second quarter of fiscal 2017 compared to 26.83% in the second quarter of the prior year.

Operating and administrative expense as a percentage of sales increased to 22.90% in the second quarter of fiscal 2017 compared to 22.67% in the second quarter of the prior year due primarily to higher payroll and increased legal and consulting fees partially offset by decreased fringe benefit costs.  Payroll costs increased due primarily to reduced operating leverage on lower same store sales and investments in service departments at the newly remodeled Chester store.  Fringe benefit costs decreased due primarily to lower non-union pension expense.

Net income was $10,101,000 in the six-month period of fiscal 2017 compared to $10,714,000 in the six-month period of the prior year.  Net income decreased 6% in the six-month period of fiscal 2017 compared to the prior year due primarily to lower same store sales and higher operating and administrative expenses.

Village Super Market operates a chain of 29 supermarkets under the ShopRite name in New Jersey, Maryland and northeastern Pennsylvania.

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; the success of establishing ShopRite's presence in the Maryland market; 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   26 Weeks Ended
  January 28,
 2017
  January 23,
 2016
  January 28,
 2017
  January 23,
 2016
               
Sales $ 412,215     $ 420,170     $ 801,907     $ 809,699  
               
Cost of sales 300,977     307,444     586,021     591,487  
               
Gross profit 111,238     112,726     215,886     218,212  
               
Operating and administrative expense 94,393     95,243     185,524     186,581  
               
Depreciation and amortization 6,233     6,060     12,296     12,018  
               
Operating income 10,612     11,423     18,066     19,613  
               
Interest expense (1,114 )   (1,125 )   (2,230 )   (2,252 )
               
Interest income 648     565     1,335     1,128  
               
Income before income taxes 10,146     10,863     17,171     18,489  
               
Income taxes 4,154     4,579     7,070     7,775  
               
Net income $ 5,992     $ 6,284     $ 10,101     $ 10,714  
               
Net income per share:            
Class A common stock:              
Basic $ 0.47     $ 0.50     $ 0.80     $ 0.85  
Diluted $ 0.42     $ 0.44     $ 0.71     $ 0.76  
               
Class B common stock:              
Basic $ 0.31     $ 0.32     $ 0.52     $ 0.55  
Diluted $ 0.31     $ 0.32     $ 0.52     $ 0.55  
               
Gross profit as a % of sales 26.99 %   26.83 %   26.92 %   26.95 %
Operating and administrative expense as a % of sales 22.90 %   22.67 %   23.14 %   23.04 %

 

Contact: John Van Orden, CFO
(973) 467-2200
john.vanorden@wakefern.com
View Comments and Join the Discussion!