Ingles Markets has reported that net income fell from US$16m to US$4.7m during the third quarter of the year ended 27 June 2009, a result of increased costs related to store development, costs associated with refinancing activities and the general economic climate.
In particular, results were hit by US$10.2m of prepayment penalties and loan cost write-offs related to the company's issuance of US$575m in bonds during May.
'We are pleased to have secured our financing for the next few years,' said CEO Robert Ingle. 'The credit markets have been substantially closed for the past couple of years and could continue to be difficult for the foreseeable future. A window of opportunity opened in May and we took advantage of the favourable conditions to implement this refinancing.'
Net sales through the three-month period fell to US$$826.8m from US$835.3m in the corresponding period of 2008, and increased 5.1 per cent excluding petrol. Sales were affected by the timing of the Easter holiday, the group said, with the number of customer transactions actually increasing by 7.8 per cent.
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