VILLAGE SUPER MARKET, INC.
733 MOUNTAIN AVENUE
SPRINGFIELD, NEW JERSEY 07081
PHONE: (973) 467-2200
FAX: (973) 467-6582
VILLAGE SUPER MARKET, INC.
REPORTS RECORD RESULTS FOR THE QUARTER AND YEAR ENDED
July 26, 2008
Contact: Kevin Begley, CFO
(973) 467-2200 - Ext. 220
Kevin.Begley@Wakefern.com
Springfield, New Jersey - October 2, 2008 - Village Super Market, Inc.
(NSD-VLGEA) today reported its results of operations for the fourth quarter
ended July 26, 2008.
Net income was $6,891,000 in the fourth quarter of fiscal 2008, an
increase of 9% from the fourth quarter of the prior year. Net income increased
primarily due to improved sales and lower operating expenses as a percentage
of sales, partially offset by lower gross profit percentages and lower interest
income.
Sales were $297,968,000 in the fourth quarter of fiscal 2008, an increase
of 10.7% from the prior year. Sales increased due to the opening of the
Galloway and Franklin stores earlier in fiscal 2008 and a same store sales
increase of 3.6%. Improved sales in one store due to the closing of a store by
a competitor, improved sales in the Somers Point replacement store and food
inflation contributed to the same store sales increase. In addition, the
distribution of economic stimulus checks contributed to improved same store
sales in the fourth quarter of fiscal 2008. These improvements were partially
offset by reduced sales in three stores due to a competitive store opening and
cannibalization from the opening of the Galloway and Franklin stores. In
addition, sales were negatively impacted by increased sale item penetration and
trading down, as customers appeared to be more cautious due to concerns about
the economy and rising gas and food prices. Improved transaction count and
average transaction size both contributed to the increase in same store sales.
Net income of the fiscal year was $22,543,000, an increase of 10% from the
prior year. Sales in fiscal 2008 were $1,127,762,000, an increase of 7.8% from
the prior year. Same store sales increased 2.5% in fiscal 2008. Net income in
fiscal 2008 improved compared to the prior year due to higher sales, improved
gross profit percentages and lower operating expenses as a percentage of sales.
Village Super Market operates a chain of 25 supermarkets under the Shop
Rite name in New Jersey and eastern Pennsylvania.
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:
local 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 higher energy prices; increased cost of goods sold,
including increased costs from the Company's principal supplier, Wakefern;
the results of litigation; the results of tax examinations; the results of
union contract negotiations; competitive store openings; 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 CONDENSED STATEMENTS OF OPERATIONS
(In Thousands Except Per Share Amounts)
13 Wks. Ended 13 Wks. Ended 52 Wks. Ended 52 Wks. Ended
July 26, 2008 July 28, 2007 July 26, 2008 July 28, 2007
Sales $ 297,968 $ 269,256 $ 1,127,762 $ 1,046,435
Cost of sales 217,939 195,944 822,564 764,494
-------- -------- ---------- ----------
Gross profit 80,029 73,312 305,198 281,941
Operating and
administrative expense 64,587 59,623 252,739 235,226
Depreciation and
amortization 3,553 3,186 13,713 12,398
-------- -------- ---------- ----------
Operating income 11,889 10,503 38,746 34,317
Interest expense (789) (652) (2,986) (2,687)
Interest income 565 1,061 3,030 3,673
-------- -------- ---------- ----------
Income before
income taxes 11,665 10,912 38,790 35,303
Income taxes 4,774 4,580 16,247 14,800
--------- --------- ---------- ----------
Net income $ 6,891 $ 6,332 $ 22,543 $ 20,503
========= ========= ========== ==========
Net income
per share
Class A common stock:
Basic $ 1.28 $ 1.20 $ 4.23 $ 3.89
Diluted $ 1.05 $ .96 $ 3.43 $ 3.14
Class B common stock:
Basic $ .83 $ .78 $ 2.76 $ 2.53
Diluted $ .82 $ .76 $ 2.75 $ 2.47
Gross profit as a
% of sales 26.9% 27.2% 27.1% 26.9%
Operating and
administrative
expense as a
% of sales 21.7% 22.1% 22.4% 22.5%