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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0001157523-05-002651.txt : 20050318
<SEC-HEADER>0001157523-05-002651.hdr.sgml : 20050318
<ACCEPTANCE-DATETIME>20050318085152
ACCESSION NUMBER:		0001157523-05-002651
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20050318
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20050318
DATE AS OF CHANGE:		20050318

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INGLES MARKETS INC
		CENTRAL INDEX KEY:			0000050493
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-GROCERY STORES [5411]
		IRS NUMBER:				560846267
		STATE OF INCORPORATION:			NC
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-14706
		FILM NUMBER:		05690379

	BUSINESS ADDRESS:	
		STREET 1:		PO BOX 6676
		CITY:			ASHEVILLE
		STATE:			NC
		ZIP:			28816
		BUSINESS PHONE:		7046692941

	MAIL ADDRESS:	
		STREET 1:		P O BOX 6676
		CITY:			ASHEVILLE
		STATE:			NC
		ZIP:			28816
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a4846236.txt
<DESCRIPTION>INGLES MARKETS, INCORPORATED 8-K
<TEXT>
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
     Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934


Date of Report (Date of earliest event reported)         March 18, 2005
                                                 -------------------------------


                          INGLES MARKETS, INCORPORATED
- --------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


    North Carolina                     0-14706                    56-0846267
- --------------------------------------------------------------------------------
 (State or other jurisdiction        (Commission                (IRS Employer
        of incorporation)            File Number)            Identification No.)


P.O. Box 6676, Asheville, NC                                        28816
- --------------------------------------------------------------------------------
(Address of principal executive offices)                         (Zip Code)

Registrant's telephone number, including area code (828) 669-2941
                                                   -----------------------------

                                      N/A
- --------------------------------------------------------------------------------
         (Former name or former address, if changed since last report.)


Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act
    (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
    (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
    Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
    Exchange Act (17 CFR 240.13e-4(c))

<PAGE>

Item 2.02  Results of Operations and Financial Condition.

On March 18, 2005, Ingles Markets, Incorporated ("IMKTE") issued a press release
announcing financial information for its first fiscal quarter ended December 25,
2004. The press release is attached as Exhibit 99.1 to this Form 8-K.


Item 9.01 Financial Statements and Exhibits.

(c) Exhibits.

    Exhibit Number             Description of Exhibit
    --------------             ----------------------
    99.1                       Press release issued March 18, 2005

<PAGE>

                                   SIGNATURES
                                   ----------

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                       INGLES MARKETS, INCORPORATED
                             ---------------------------------------------------
                                               (Registrant)

Date:  March 18, 2005
                         By:  /s/ Brenda S. Tudor
                             ---------------------------------------------------
                              Brenda S. Tudor
                              Vice President-Finance and Chief Financial Officer


<PAGE>

                                  EXHIBIT INDEX
                                  -------------

Exhibit                    Description
- -------                    -----------

99.1                       Press Release dated March 18, 2005


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a4846236ex991.txt
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
                                                                    Exhibit 99.1

Ingles Markets, Incorporated Reports First Quarter Sales and Earnings Increases

     ASHEVILLE, N.C.--(BUSINESS WIRE)--March 18, 2005--Ingles Markets,
Incorporated (NASDAQ: IMKTE) today announced increased sales and earnings for
the first quarter of fiscal year 2005, ended December 25, 2004.
     Net income grew 110.7% to $5.1 million, or $0.21 per share, for the
December 2004 quarter compared to $2.4 million, or $0.10 per share, for the
December 2003 quarter.
     Both net sales and comparable store sales increased 4.7% for the December
2004 quarter over the same quarter last year. During the December 2004 quarter,
the Company opened one new store and completed one major remodel/expansion. The
number of stores in operation decreased from 198 at December 27, 2003, to 197 at
December 25, 2004.
     Gross profit increased 6.5% for the December 2004 quarter over the December
2003 quarter, while gross profit as a percentage of sales increased to 25.4% in
the current year quarter from 25.0% in the prior year quarter. Increased sales
in the higher margin perishable departments contributed to the gross profit
increase.
     Operating and administrative expense dollars increased 3.5%, however as a
percentage of sales, operating and administrative expenses decreased to 21.9%
for the December 2004 quarter compared to 22.2% of sales for the December 2003
quarter due to the higher sales volume.
     Other income decreased $0.9 million in the December 2004 quarter compared
to the December 2003 quarter, due principally to the inclusion in the December
2003 quarter of a gain of $1.0 million for the sale of an out-parcel to a drug
store.
     Interest expense decreased $0.8 million for the three months ended December
25, 2004, compared to the three months ended December 27, 2003, due to a $35.3
million reduction in total debt from $630.5 million at December 27, 2003, to
$595.2 million at December 25, 2004.
     Capital expenditures for the December 2004 quarter totaled $13.7 million.
Ingles capital expenditure plans for all of fiscal year 2005 total approximately
$70.0 million. For the balance of the fiscal year, Ingles plans to open three
new stores, complete one major remodel expansion as well as add seven fuel
stations and purchase sites for future expansion.
     Commenting on the results, Robert P. Ingle, chief executive officer,
stated, "We couldn't be more pleased with the results of the first quarter of
our fiscal year. Our comparable store sales remain very strong against high
comparable store sales in the first quarter of last year when we introduced the
Ingles Advantage Savings and Rewards Card. Our team has focused on providing
quality, freshness, variety and convenience throughout our stores and we are
particularly pleased with the growth in our perishable departments, providing
solid gross margin growth. We believe we have gained a better understanding of
our customers' needs over the last year and we look forward to continuing to
provide them with a top notch shopping experience."
     As has previously been disclosed, the Company has been subject to potential
delisting proceedings by the NASDAQ Stock Market due to its failure to timely
file its Form 10-Q for the quarter ended December 25, 2004. On March 16, 2005,
The NASDAQ Listing Qualifications Panel (the "Panel") granted the Company's
request for continued listing on The NASDAQ National Market subject to three
conditions. First, by March 31, 2005, the Company must file its Form 10-Q for
the quarter ended December 25, 2004, which is being filed today. Second, the
Company must provide the Panel with additional information regarding the
Securities and Exchange Commission's informal inquiry. Third, the Company must
timely file all periodic reports with the SEC and NASDAQ for all reporting
periods ending on or before December 31, 2005, and demonstrate continued
compliance with all other NASDAQ continued listing criteria.

     The comments in this press release contain certain forward-looking
statements. Ingles undertakes no obligation to publicly release any revisions to
any forward-looking statements contained herein to reflect events or
circumstances occurring after the date hereof or to reflect the occurrence of
unanticipated events. Ingles' actual results may differ materially from those
projected in forward-looking statements made by, or on behalf of, Ingles.
Factors that may affect results include changes in business and economic
conditions generally in Ingles' operating area, pricing pressures, increased
competitive efforts by others in Ingles' marketing areas and the availability of
financing for capital improvements. A more detailed discussion of these factors
may be found in reports filed by the Company with the Securities and Exchange
Commission including its 2004 Form 10-K and Forms 10-Q.

     Ingles Markets, Incorporated is a leading supermarket chain with operations
in six southeastern states. Headquartered in Asheville, North Carolina, the
Company operates 195 supermarkets. In conjunction with its supermarket
operations, the Company also operates 74 neighborhood shopping centers, all but
17 of which contain an Ingles supermarket. The Company's Class A Common Stock is
traded on The NASDAQ Stock Market's National Market under the symbol IMKTE. For
more information about the Company, visit Ingles' website at
www.ingles-markets.com.


                     INGLES MARKETS, INCORPORATED
             (Amounts in thousands except per share data)

                    Unaudited Financial Highlights

        Condensed Consolidated Statements of Income (Unaudited)

                                                    Quarter Ended
                                               ----------------------
                                                Dec. 25,    Dec. 27,
                                                  2004        2003
                                               ----------  ----------
Net sales                                        $559,275    $534,307
Gross profit                                      141,952     133,336
Operating and administrative expenses             122,708     118,532
Rental income, net                                  1,470       1,491
Income from operations                             20,714      16,295
Other income, net                                     447       1,337
Interest expense                                   13,047      13,869
Income taxes                                        3,050       1,359
Net income                                         $5,064      $2,404

Basic earnings per common share                     $0.21       $0.10
Diluted earnings per common share                   $0.21       $0.10

Additional selected information:
Depreciation and amortization expense             $14,460     $14,030
Rent expense                                       $7,706      $8,100

           Condensed Consolidated Balance Sheets (Unaudited)

                                                Dec. 25,    Sept. 25,
                                                  2004        2004
                                               ----------  ----------
ASSETS
  Cash and cash equivalents                       $58,692     $80,594
  Receivables-net                                  39,380      34,450
  Inventories                                     201,207     189,432
  Other current assets                             10,098       9,063
  Property and equipment-net                      736,031     738,219
  Other assets                                     11,294      11,929
                                               ----------  ----------
TOTAL ASSETS                                   $1,056,702  $1,063,687
                                               ==========  ==========
LIABILITIES AND STOCKHOLDERS' EQUITY

  Current maturities of long-term debt            $30,733     $33,827
  Accounts payable- trade                         101,695      88,725
  Accrued expenses and current portion of other
   long-term liabilities                           55,565      66,189
  Deferred income taxes                            37,036      40,886
  Long-term debt                                  564,494     568,607
  Other long-term liabilities                       4,071       4,236
                                               ----------  ----------
    Total Liabilities                             793,594     802,470
  Stockholders' equity                            263,108     261,217
                                               ----------  ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY     $1,056,702  $1,063,687
                                               ==========  ==========


     CONTACT: Ingles Markets, Incorporated
              Brenda S. Tudor, 828-669-2941, Ext. 223
              www.ingles-markets.com
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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