57 unchanged sentences
A major remodel entails substantial remodeling of an existing store and may include additional retail square footage.
−Removed: For both the fiscal years ended September 25, 2021 and September 26, 2020 comparable store sales included 196 stores.
+Added: Comparable store sales for the fiscal year ended September 24, 2022 included 197 stores and, for the fiscal year ended September 25, 2021 comparable store sales included 196 stores.
The following table sets forth, for the periods indicated, selected financial information as a percentage of net sales.
9 unchanged sentences
Fiscal Year Ended September 24, 2022 Compared to the Fiscal Year Ended September 25, 2021
−Removed: The Company’s fiscal year 2021 performance was heavily influenced by the COVID-19 pandemic, which was declared a national emergency on March 13, 2020.
+Added: The Company’s performance for fiscal year 2021, which commenced in September 2020, was heavily influenced by the COVID-19 pandemic.
Various stay-at-home measures were enacted, most schools closed to in-person learning, and restaurant dining was severely restricted.
−Removed: Many of these measures, though relaxed, have remained in place during the fall of 2021 and resulted in higher retail grocery sales throughout the United States.
−Removed: Net income for the fiscal year ended September 25, 2021 was $249.7 million, compared with net income of $178.6 million for the fiscal year ended September 26, 2020, primarily due to the impact of the COVID-19 pandemic, as more persons relied upon their local grocery stores for food and non-food products given travel restrictions and limited options for dining out.
+Added: Many of these measures have been relaxed or eliminated, but retail grocery sales have remained higher throughout the United States, as compared to the pre-pandemic period.
+Added: Net income for the fiscal year ended September 24, 2022 was $272.8 million, compared with net income of $249.7 million for the fiscal year ended September 25, 2021.
Net income as a percentage of sales was 4.8% for fiscal year 2022 compared with 5.0% for fiscal year 2021.
−Removed: Sales and gross margin increased in the retail segment, including increases in gasoline gross profit.
−Removed: Expenses increased primarily as a result of pandemic-related increases in staffing levels, sanitation expenses and social distancing measures.
−Removed: Fluid dairy income increased over the comparable fiscal year, and real estate income increased as tenants reopened their business after the early part of the pandemic.
+Added: Sales increased and gross margin decreased slightly in the retail segment, including increases in gasoline gross profit.
+Added: Expenses increased primarily as a result of the tight labor market and increases in the cost of goods and supplies.
+Added: Fluid dairy income increased 5.8% over the comparable fiscal year, and real estate income increased slightly.
Net sales for the fiscal year ended September 24, 2022 totaled $5.68 billion, compared with $4.99 billion for the fiscal year ended September 25, 2021.
−Removed: Retail comparable sales excluding gasoline increased 5.4% during fiscal 2021 compared with 2020.
+Added: Retail comparable store sales excluding gasoline increased 7.7% for fiscal 2022 compared with 2021.
The number of transactions (excluding gasoline) increased 3.5% while the average transaction size (excluding gasoline) increased by 4.2%.
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Comparable store sales increase
−Removed: Impact of stores closed in fiscal years 2021 and 2020
−Removed: Sales growth stores opened fiscal years 2021 and 2020
+Added: Impact of stores closed in fiscal 2021
+Added: Sales growth from stores opened fiscal 2021
Total retail grocery sales for the fiscal year ended September 24, 2022
−Removed: Sales began to increase during fiscal year 2020 due to the COVID-19 pandemic, as stay at home orders closed schools, limited restaurant options, and increased at-home meal preparation.
−Removed: Even with the availability of vaccines and loosening of restrictions in fiscal year 2021, sales continued to increase.
−Removed: Restaurant traffic, leisure travel, and school attendance have not returned to pre-pandemic levels, and people have continued to be cautious to limit possible exposure to COVID-19.
−Removed: In addition, during fiscal year 2021, inflation has increased top-line sales, including sharp increases in the cost of gasoline.
+Added: Sales began to increase during fiscal year 2020 due to the COVID-19 pandemic and have continued through fiscal year 2022.During fiscal year 2022, inflation increased top-line sales, including sharp increases in the cost of gasoline.
Increased sales were also from new and replacement stores, the introduction of new products and product presentation, especially in higher margin products, effective promotions and cost competitiveness.
−Removed: We continue to improve our use of data gained from The Ingles Advantage Savings and Rewards Card (the “Ingles Advantage Card”) to increase net sales and comparable store sales through enhanced loyalty programs and special offers.
+Added: We continued to improve our use of data gained from The Ingles Advantage Savings and Rewards Card (the “Ingles Advantage Card”) to increase net sales and comparable store sales through enhanced loyalty programs and special offers.
Information obtained from holders of the Ingles Advantage Card also assists the Company in optimizing product offerings and promotions specific to customer shopping patterns.
−Removed: Sales in the 2022 fiscal year compared with fiscal year 2021 will in large part depend upon the duration of the COVID-19 impact on our market area, as well as the impact of inflation on food and gasoline prices.
+Added: We expect that sales for the 2023 fiscal year compared with fiscal year 2022 will in large part depend upon the impact of inflation on food and gasoline prices, as well as on supply chain issues.
The Company anticipates adding new stores in fiscal year 2023, expects to continue remodeling a significant number of existing stores, and plans to add more fuel stations and pharmacies.
1 unchanged sentence
Gross profit for the fiscal year ended September 24, 2022 increased $112.3 million, or 8.6%, to $1.42 billion compared with $1.30 billion for the fiscal year ended September 25, 2021.
−Removed: As a percentage of sales, gross profit totaled 26.1% for the fiscal year
−Removed: ended September 25, 2021 and 26.0% for the fiscal year ended September 26, 2020.
+Added: As a percentage of sales, gross profit totaled 24.9% for the fiscal year ended September 24, 2022 as compared to 26.1% for the fiscal year ended September 25, 2021.
Gasoline gross profit increased $13.0 million for fiscal year 2022 compared with 2021.
−Removed: Grocery segment gross profit as a percentage of total sales (excluding gasoline) increased 66 basis points in fiscal year 2021 compared with fiscal year 2020.
−Removed: The gross margin increase was primarily due to COVID-19 market factors that impacted prices and mix of products sold.
+Added: Grocery segment gross profit as a percentage of total sales (excluding gasoline) decreased 11 basis points in fiscal year 2022 compared with fiscal year 2021.
+Added: The gross margin decrease was primarily due to inflation and supply chain factors that impacted prices and mix of products sold.
In general, product cost inflation was incorporated into higher sales prices.
−Removed: In addition to the direct product cost, the cost of goods sold line item for the grocery segment includes inbound freight charges and the costs related to the Company’s distribution network.
+Added: In addition to the direct
+Added: product cost, the cost of goods sold line item for the grocery segment includes inbound freight charges, which generally increased in fiscal year 2022 as compared to fiscal year 2021, and increased costs related to the Company’s distribution network, including the impact of higher diesel prices.
Operating and Administrative Expenses.
−Removed: Operating and administrative expenses increased $41.6 million, or 4.5%, to $963.3 million for the fiscal year ended September 25, 2021, from $921.7 million for the fiscal year ended September 26, 2020.
+Added: Operating and administrative expenses increased $76.9 million, or 8.0%, to $1.0 billion for the fiscal year ended September 24, 2022, from $963.3 million for the fiscal year ended September 25, 2021.
As a percentage of sales, operating and administrative expenses were 18.3% and 19.3% for fiscal years 2022 and 2021, respectively.
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Salaries and wages
−Removed: Professional fees
Store supplies
Repairs and maintenance
−Removed: Salaries and wages increased due to the addition of labor hours required for the increased sales volume, pandemic-related additional cleaning and sanitizing, and changes to the sales mix to product categories with a higher labor component.
−Removed: In general, the labor market in the Company’s market area has become more competitive.
−Removed: Professional fees increased in conjunction with improvements to the Company’s information technology platforms.
−Removed: Bank charges increased due to increased sales and a greater portion of sales settled with credit/debit cards instead of cash or check.
−Removed: Store supplies increased as a result of increased sales and market costs of certain supplies.
+Added: Utilities and fuel
+Added: Salaries and wages increased due to increased competition in the labor market in the Company’s market area.
+Added: Store supplies, which include customer packaging containers, increased as a result of increased sales, market costs of certain supplies, and supply chain issues for certain raw materials.
The COVID-19 pandemic has resulted in higher usage of cleaning and packaging products to maintain product safety.
−Removed: Repairs and maintenance increased due to additional safety and sanitation equipment necessitated by COVID-19, a higher level of maintenance required on more sophisticated equipment, and updated lighting in our stores.
+Added: Bank charges increased due to increased sales and a greater portion of sales settled with credit/debit cards instead of cash or check.
+Added: Repairs and maintenance increased due to additional safety and sanitation equipment necessitated by COVID-19 and a higher level of maintenance required on more sophisticated equipment .
+Added: Utilities and fuel costs increased due to the impact of energy inflation.
Gain from Sale or Disposal of Assets.
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During fiscal year 2021, the Company recognized $9.3 million from the sales of two former store properties.
−Removed: During the fiscal year 2020, the Company recognized $3.5 million from the sales of land.
There were no other significant sale/disposal transactions in either fiscal year 2022 or 2021.
8 unchanged sentences
Loss on Early Extinguishment of Debt.
−Removed: Losses on early extinguishment of debt totaled $1.1 million for the fiscal year ended September 25, 2021 and $7.1 million for the fiscal year ended September 26, 2020.
+Added: No losses on early extinguishment of debt were recognized in fiscal year 2022 compared to $1.1 million for the fiscal year ended September 25, 2021.
In June 2021, the Company issued at par $350.0 million aggregate principal amount of 4.00% senior notes due in 2031 (the “2031 Notes”).
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Net income totaled $272.8 million for the fiscal year ended September 24, 2022 compared with net income of $249.7 million for the fiscal year ended September 25, 2021.
−Removed: Basic and diluted earnings per share for Class A Common Stock were $13.06 and $12.73, respectively, for the fiscal year ended September 25, 2021 compared with $9.06 and $8.82, respectively, for the fiscal year ended September 26, 2020.
+Added: Basic and diluted earnings per share for Class A Common Stock were
+Added: $14.69 and $14.36, respectively, for the fiscal year ended September 24, 2022 compared with $13.06 and $12.73, respectively, for the fiscal year ended September 25, 2021.
Basic and diluted earnings per share for Class B Common Stock were each $13.35 for the fiscal year ended September 24, 2022 compared with $11.87 of basic and diluted earnings per share for the fiscal year ended September 25, 2021.
Fiscal Year Ended September 25, 2021 Compared to the Fiscal Year Ended September 26, 2020
−Removed: Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in Ingles Annual Report on Form 10-K for the year ended September 26, 2020, filed with the SEC on December 8, 2020, as amended on December 10, 2020, for a discussion of the year ended September 26, 2020 as compared to September 28, 2019.
+Added: Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in Ingles Annual Report on Form 10-K for the year ended September 25, 2021, filed with the SEC on November 24, 2021, for a discussion of the year ended September 25, 2021 as compared to September 26, 2020.
Liquidity and Capital Resources
9 unchanged sentences
Ingles’ capital expenditure plans for fiscal year 2023 include investments of approximately $120 to $160 million.
−Removed: At this time, the Company does not anticipate that the COVID-19 pandemic will have a long-term adverse impact on its capital expenditure plans, even though there is currently a shortage of some construction materials and labor.
+Added: At this time, the Company does not anticipate that the COVID-19 pandemic or current labor shortages will have a long-term adverse impact on its capital expenditure plans.
The Company currently plans to dedicate the majority of its fiscal 2023 capital expenditures to continued improvement of its store base including the construction of one or more new/remodeled stores.
6 unchanged sentences
In general, the Company finances its capital expenditures to the extent possible from cash on hand and cash flow from operations.
−Removed: Additional financing sources for capital expenditures include borrowings under the Company’s $150 million of committed line of credit (described below), other borrowings that could be collateralized by unencumbered real property and equipment with a net book value of approximately $1.1 billion, and the public debt or equity markets.
+Added: Additional financing sources for capital expenditures could include borrowings under the Company’s $150 million of committed line of credit (described below), other borrowings that could be collateralized by unencumbered real property and equipment with a net book value of approximately $1.1 billion, and the public debt or equity markets.
The Company has used each of these to finance past capital expenditures and expects to have them available in the future.
The Company does not generally enter into commitments for capital expenditures other than on a store-by-store basis at the time it begins construction on a new store or begins a major or minor remodeling project.
−Removed: Construction commitments at September 25, 2021
−Removed: totaled $0.1 million.
−Removed: This amount is less than prior years, as the Company has temporarily slowed its real estate construction due to shortages of certain construction materials and labor.
+Added: Construction commitments at September 24, 2022 totaled $6.5 million.
The Company generated $339.5 million of cash from operations in fiscal 2022 compared with $306.3 million for fiscal year 2021.
−Removed: Net income was higher in fiscal year 2021 compared with fiscal 2020, but more funds were utilized in working capital during fiscal year 2021.
+Added: The increase resulted primarily from a $23.0 million increase in net income for fiscal year 2022 compared with fiscal 2021.
Cash used by investing activities for fiscal year 2022 totaled $112.0 million compared with $128.0 million for fiscal year 2021.
−Removed: The Company’s most significant investing activity is capital expenditures, which increased in fiscal year 2021 as compared to fiscal year 2020, which was offset by increased property sales in fiscal year 2021.
+Added: The Company’s most significant investing activity is capital expenditures, which decreased in fiscal year 2022 as compared to fiscal year 2021.
The Company’s cash used by net financing activities totaled $30.6 million and $114.9 million for fiscal years 2022 and 2021, respectively.
−Removed: More debt was paid down in fiscal 2020 compared with fiscal year 2021.
In fiscal year 2021 there were $80.0 million of stock repurchases compared with none in fiscal year 2022.
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The 2023 Notes were redeemed at par value on July 16, 2021.
−Removed: During fiscal year 2020, the Company refinanced or repaid early $405 million of the 2023 notes, incurring debt extinguishment costs totaling $7.1 million.
The Company has a $150.0 million unsecured senior line of credit (the “Line”) that matures in June 2026.
8 unchanged sentences
The Company may redeem the Bonds without penalty or premium at any time prior to September 2026.
+Added: In September 2017, the Company refinanced approximately $60 million of secured borrowing obligations with a LIBOR-based amortizing floating rate loan secured by real estate maturing in October 2027.
The Company has an interest rate swap agreement for a current notional amount of $30.5 million at a fixed rate of 3.92%.
2 unchanged sentences
Both the floating rate debt and the interest rate swap have monthly principal amortization of $0.5 million and mature October 1, 2027.
+Added: In December 2019, the Company closed a $155 million LIBOR-based amortizing floating rate loan secured by real estate maturing in January 2030.
The Company has an interest rate swap agreement for a current notional amount of $132.4 million at a fixed rate of 2.95%.
9 unchanged sentences
The Company’s principal sources of liquidity are expected to be cash flow from operations, borrowings under the Line and long-term debt financing.
−Removed: The Company believes, based on its current results of operations and financial condition, that its financial resources,
−Removed: including cash balances, the existing Line, short- and long-term financing expected to be available to it and internally generated funds, will be sufficient to meet planned capital expenditures and working capital requirements for the foreseeable future, including any debt service requirements of additional borrowings.
+Added: The Company believes, based on its current results of operations and financial condition, that its financial resources, including cash balances, the existing Line, short- and long-term financing expected to be available to it and internally generated funds, will be sufficient to meet planned capital expenditures and working capital requirements for the foreseeable future, including any debt service requirements of additional borrowings.
However, there can be no assurance that any such sources of financing will be available to the Company on acceptable terms, or at all.
It is possible that, in the future, the Company’s results of operations and financial condition will be different from that described in this report based on a number of intangible factors.
−Removed: These factors may include, among others, resolution of the COVID-19 pandemic, increased competition, changing regional and national economic conditions, adverse climatic conditions affecting food production and delivery and changing demographics as well as the additional factors discussed above and elsewhere under “Item 1A.
+Added: These factors may include, among others, resolution of the COVID-19 pandemic, increased competition, changing regional and national economic conditions, adverse climatic conditions affecting food production and
+Added: delivery and changing demographics as well as the additional factors discussed above and elsewhere under “Item 1A.
Risk Factors.” It is also possible, for such reasons, that the results of operations from the new, expanded, remodeled and/or replacement stores will not meet or exceed the results of operations from existing stores that are described in this report.
26 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.