VILLAGE SUPER MARKET, INC.
EXECUTIVE OFFICES
733 Mountain Avenue
Springfield, New Jersey 07081
Phone: (973) 467-2200
Fax: (973) 467-6582
VILLAGE SUPER MARKET, INC.
REPORTS RECORD RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED
JULY 28, 2007
Contact: Kevin Begley, CFO
(973) 467-2200 - Ext. 220
[email protected]
Springfield, New Jersey - October 1, 2007 - Village Super Market, Inc.
(NSD-VLGEA) today reported its results of operations for the fourth quarter
ended July 28, 2007.
Net income was $6,332,000 in the fourth quarter of fiscal 2007, an
increase of 26% from the fourth quarter of the prior year. Net income
increased primarily due to improved sales, higher gross profit percentages
and lower operating expenses as a percentage of sales.
Sales were $269,256,000 in the fourth quarter of fiscal 2007, an
increase of 2.6% from the fourth quarter of the prior year. Same store sales
also increased 2.6%. Improved sales in one store due to the closing of a
store by a competitor and in the Somers Point replacement store contributed
to the sales increase. These improvements were partially offset by reduced
sales in four stores due to three competitive store openings.
Net income for the fiscal year was $20,503,000, an increase of 24% from
the prior year. Sales in fiscal 2007 were $1,046,435,000, an increase of 2.9%
from the prior year. Same store sales also increased 2.9%. Net income in
fiscal 2007 improved compared to the prior year due to the higher same store
sales and improved gross profit percentages.
Village Super Market operates a chain of 23 supermarkets under the
ShopRite name in New Jersey and eastern Pennsylvania. On August 11, 2007,
the Company acquired the fixtures and lease for a store in Galloway Township,
New Jersey that had been operated by a competitor for $3,500,000. We expect
to re-open this store as a ShopRite on October 3rd after an extensive remodel.
In addition, our new superstore in Franklin, New Jersey is expected to open
on October 31st.
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 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 28, 2007 July 29, 2006 July 28, 2007 July 29, 2006
Sales $ 269,256 $ 262,461 $ 1,046,435 $ 1,016,817
Cost of sales 195,944 192,088 764,494 747,320
--------- --------- ---------- ----------
Gross profit 73,312 70,373 281,941 269,497
Operating and
administrative expense 59,623 58,577 235,226 228,474
Depreciation and
amortization 3,186 3,057 12,398 11,679
--------- --------- ---------- ----------
Operating income 10,503 8,739 34,317 29,344
Interest expense (652) (774) (2,687) (3,145)
Interest income 1,061 712 3,673 2,140
--------- --------- ---------- ----------
Income before
income taxes 10,912 8,677 35,303 28,339
Income taxeS 4,580 3,654 14,800 11,852
--------- --------- ----------- ----------
Net income $ 6,332 $ 5,023 $ 20,503 $ 16,487
========= ========= =========== ==========
Net income
per share(1):
Revised Revised
Class A common stoc
Basic $ 1.20 $ .96 $ 3.89 $ 3.14
Diluted $ .96 $ .77 $ 3.14 $ 2.55
Class B common stock:
Basic $ .78 $ .62 $ 2.53 $ 2.04
Diluted $ .76 $ .61 $ 2.47 $ 2.01
Gross profit as a
% of sales 27.2% 26.8% 26.9% 26.5%
Operating and
administrative expense
as a % of sales 22.1% 22.3% 22.5% 22.5%
(1) Net income per share is computed utilizing the two-class method. The two-class method is an earnings
allocation formula that calculates net income per share for each class of common stock separately based on
dividends declared and participation rights in undistributed earnings. Net income per share for prior
periods has been revised to reflect the two-class method.