Damian Witkowski

Question 1

Damian Witkowski's questions to INGLES MARKETS (IMKTA) leadership • Q2 2016

May 9, 2016

Question

Damian Witkowski of Gabelli & Company asked about the number of store openings planned for the fiscal year, whether they were new locations or replacements, the size increase of these stores, the reasons for lower year-over-year fuel margins, the drivers behind rising operating expenses, and the company's compliance with EMV credit card standards.

Answer

CFO Ron Freeman stated that Ingles expects to open two or three replacement stores later in the year, which will increase total square footage by 'tens of thousands' of square feet per store but keep the net store count the same. He clarified that the six-month decline in fuel margins was primarily due to a very strong December 2014 quarter, not the recent March quarter. Mr. Freeman attributed rising operating expenses to increased labor in service areas and a tighter regional labor market. He also confirmed the company is EMV compliant and has seen no detectable impact on gross margin.

Ask Fintool Equity Research AI

Question 2

Damian Witkowski's questions to INGLES MARKETS (IMKTA) leadership • Q1 2016

Feb 8, 2016

Question

Damian Witkowski of Gabelli & Company inquired about the development timeline for two newly purchased sites, the specific grocery gross margin, factors affecting gasoline gross margins, and the future trend of rising operating expenses.

Answer

CFO Ron Freeman stated that the new sites would likely be developed within the next two years. He noted that the prior year's Q1 gasoline gross profit was 'exceptionally high' and the current quarter's results were satisfactory. Regarding operating expenses, Freeman attributed the increase to tight labor markets, store remodels, and an emphasis on prepared foods, but cautioned against assuming a linear growth trend.

Ask Fintool Equity Research AI

Question 3

Damian Witkowski's questions to INGLES MARKETS (IMKTA) leadership • Q4 2015

Dec 10, 2015

Question

Damian Witkowski from Gabelli & Co. asked for details on the significant increase in operating expenses, the tax implications of asset sales, the company's store count outlook, the competitive pressures from rivals, and the impact of lower fuel prices on in-store consumer behavior.

Answer

CFO Ronald Freeman attributed the rise in operating expenses to higher labor costs in perishables and prepared foods, which also carry higher margins, and increased insurance costs from the Affordable Care Act. He stated the gain on asset sales was immaterial to the overall tax rate. Freeman declined to provide a store count forecast or comment on specific competitors, emphasizing a focus on their own strategy. He did note that lower fuel prices were likely a positive factor for in-store sales, as reflected in strong Q4 comps.

Ask Fintool Equity Research AI

Question 4

Damian Witkowski's questions to INGLES MARKETS (IMKTA) leadership • Q3 2015

Aug 3, 2015

Question

Damian Witkowski from Gabelli inquired about the impact of produce deflation on basket size, the full-year CapEx guidance, grocery gross margins excluding fuel, and the profitability of gasoline sales. He also asked for clarification on an asset loss and the general competitive landscape.

Answer

CFO Ronald Freeman explained that while some deflation exists, it's not a major factor due to cost increases in other areas. He confirmed the $100 million to $120 million CapEx guidance, attributing the wide range to the timing of new store projects. He stated that non-gas gross margins were performing well and would be detailed in the 10-Q. Freeman confirmed that fuel gallons sold increased while cents-per-gallon profit decreased. The asset loss was due to writing off a demolished store for rebuilding, contrasting with a prior year's profitable sale. He concluded by expressing positivity about Ingles' own initiatives without commenting on specific competitors.