VILLAGE SUPER MARKET
REPORTS RECORD RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED
JULY 29, 2006 AS ANNUAL SALES EXCEED $1 BILLION
______________________________________________________________________________
Contact: Kevin Begley, CFO
(973) 467-2200 - Ext. 220
[email protected]
Springfield, New Jersey - October 3, 2006 - Village Super Market, Inc.
(NSD-VLGEA) today reported its results of operations for the fourth quarter
ended July 29, 2006.
Net income was $5,023,000 ($1.55 per diluted share) in the fourth quarter
of fiscal 2006, an increase of 6% from the fourth quarter of the prior year.
Net income in the fourth quarter increased primarily due to improved sales.
Sales were $262,461,000 in the fourth quarter of fiscal 2006. Total sales
and same store sales increased 3.7% compared to the fourth quarter of the prior
year. Improved sales in recently remodeled stores and a replacement store, and
higher sales in one store due to the closing of a competitor's store contributed
to the same store sales increase. These improvements were partially offset by
reduced sales in one store due to a competitive store opening.
Net income for the fiscal year was $16,487,000 ($5.10 per diluted share),
an increase of 6% from the prior year. Results for the prior year include
$890,000 (after-tax) of income received from a partnership. Excluding this
partnership income, net income in fiscal 2006 increased 13% from the prior year.
Sales in fiscal 2006 were $1,016,817,000, an increase of 3.4% from the prior
year. Same store sales increased 3.3% in fiscal 2006.
Village Super Market operates a chain of 23 supermarkets under the
ShopRite 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 successof 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 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
(Dollars in Thousands Except Per Share Amounts)
13 Wks. Ended 13 Wks. Ended 52 Wks. Ended 52 Wks. Ended
July 29, 2006 July 30, 2005 July 29, 2006 July 30, 2005
Sales $ 262,461 $ 253,204 $ 1,016,817 $ 983,679
Cost of sales 192,088 185,366 747,320 727,161
---------- ---------- ---------- ----------
Gross profit 70,373 67,838 269,497 256,518
Operating and
administrative expense 58,577 56,275 228,474 218,649
Depreciation and
amortization 3,057 2,727 11,679 10,595
---------- ---------- ---------- ----------
Operating income 8,739 8,836 29,344 27,274
Income from
Partnerships -- -- -- 1,509
Interest expense, net 62 563 1,005 2,199
---------- ---------- ---------- ----------
Income before
income taxes 8,677 8,273 28,339 26,584
Income taxes 3,654 3,534 11,852 11,042
---------- ---------- ---------- ----------
Net income $ 5,023 $ 4,739 $ 16,487 $ 15,542
========== ========== ========== ==========
Net income
per share:
Basic $ 1.58 $ 1.49 $ 5.18 $ 4.91
Diluted $ 1.55 $ 1.46 $ 5.10 $ 4.86
Gross profit as a
% of sales 26.8% 26.8% 26.5% 26.1%
Operating and
administrative expense
as a% of sales 22.3% 22.2% 22.5% 22.2%