ASHEVILLE, N.C. — Ingles Markets Inc. on Tuesday reported increased sales and net income for the fourth quarter and fiscal year ended September 26. Net sales totaled $1.20 billion for the fourth quarter, an increase of 11.3% compared with $1.08 billion for the year-ago period.

Gross profit for the fourth quarter of fiscal 2020 totaled $324.5 million, or 27.1% of sales. Gross profit for the fourth quarter of fiscal 2019 was $260.3 million, or 24.2% of sales.

Operating and administrative expenses for the September 2020 quarter totaled $236.8 million compared with $222.2 million for the September 2019 quarter. Most of the increase was due to higher personnel costs incurred to support additional safety measures related to the pandemic, including a third appreciation bonus payment to full and part-time associates.

“We take seriously the safety of our customers and associates and continue to do our best to provide them a safe and clean environment,” Ingles chairman Robert Ingle said.

Interest expense totaled $8.7 million for the fourth quarter of fiscal 2020 compared with $11.6 million for the fourth quarter of fiscal 2019. Total debt at the end of fiscal 2020 was $605.5 million compared with $852.2 million at the end of fiscal 2019. The Company continues to reduce debt and has refinanced debt at lower rates over the past twelve months. During the fourth quarter of fiscal 2020, the Company incurred $3.4 million of debt extinguishment costs associated with $250 million of early repayment of debt.

Net income totaled $57.9 million for the September 2020 quarter compared with $20.9 million for the September 2019 quarter. Basic and diluted earnings per share for Class A Common Stock were $2.94 and $2.86, respectively, compared with $1.07 and $1.04, respectively, for the year-ago period. Basic and diluted earnings per share for Class B Common Stock were each $2.67 for the quarter, versus $0.97 last year.

Annual Results

Net sales totaled $4.61 billion for the fiscal year, an increase of 9.7% compared with $4.20 billion for the prior year.

Gross profit for the fiscal year totaled $1.20 billion, or 26% of sales, up from $1.02 billion, or 24.3% of sales last year. Operating and administrative expenses totaled $921.7 million for the fiscal year, up from $873.9 million.

Interest expense was $40.5 million for the year, down from $47.4 million last year. The results for the fiscal year included a $7.1 million loss on the early extinguishment of debt arising from the refinancing of certain fixed-rate debt at a lower interest rate.

Net income totaled $178.6 million for the fiscal year, compared with $81.6 million for the prior year. Basic and diluted earnings per share for Class A Common Stock were $9.06 and $8.82, respectively, up from $4.14 and $4.03, respectively. Basic and diluted earnings per share for Class B Common Stock were each $8.24, compared with $3.76 last year.

Capital expenditures for the September 2020 fiscal year totaled $122.8 million, down from $161.8 million last year. Capital expenditures are focused on stores that opened this fiscal year as well as stores scheduled to open later.

Ingles said it currently has $126.7 million available under its $175.0 million line of credit. The company said believes its financial resources, including the line of credit and other internal and anticipated external sources of funds, will be sufficient to meet planned capital expenditures, debt service and working capital requirements for the foreseeable future.