-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 B4j5NG9Z8wkDUM7niXOIVygmZYieRlZN0apxTgCyNiG0U0xVxJfPx0F9lMbqdtT3
 H3jlb96bYoHza5crmoxk9A==

<SEC-DOCUMENT>0001157523-07-011847.txt : 20071203
<SEC-HEADER>0001157523-07-011847.hdr.sgml : 20071203
<ACCEPTANCE-DATETIME>20071203070015
ACCESSION NUMBER:		0001157523-07-011847
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20071203
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20071203
DATE AS OF CHANGE:		20071203

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:			0929

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-14706
		FILM NUMBER:		071279257

	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>a5558091.txt
<DESCRIPTION>INGLES MARKETS, INC. 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)         December 3, 2007
                                                --------------------------------


                          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 December 3, 2007, Ingles Markets, Incorporated ("IMKTA") issued a press
release announcing financial information for its fourth fiscal quarter ended
September 29, 2007. The press release is attached as Exhibit 99.1 to this Form
8-K.


Item 9.01  Financial Statements and Exhibits.

(d)    Exhibits.

       Exhibit Number          Description of Exhibit
       --------------          ----------------------
       99.1                    Press release issued December 3, 2007



<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: December 3, 2007
                                   By: /s/ Ronald B. Freeman
                                       -----------------------------------------
                                       Ronald B. Freeman
                                       Chief Financial Officer



<PAGE>


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


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

99.1               Press Release dated December 3, 2007
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a5558091ex99-1.txt
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
                                                                    EXHIBIT 99.1

Ingles Markets, Incorporated Reports Record Results for Fiscal 2007 and
                Higher Fourth Quarter Sales and Income


    ASHEVILLE, N.C.--(BUSINESS WIRE)--Dec. 3, 2007--Ingles Markets,
Incorporated (NASDAQ: IMKTA) today reported higher sales and net
income for the fourth quarter and fiscal year ended September 29,
2007. This was Ingles' 43rd consecutive year of sales growth. 2007 net
income was also the highest in the Company's history.

    For the 2007 year, net income increased 37.7% to a record $58.6
million, driven by a 9.2% increase in sales to a record $2.85 billion
compared with fiscal 2006 results. For the Company's fourth fiscal
quarter of 2007, net income rose 23.3% to $14.2 million as a result of
a 3.2% increase in net sales to $746.0 million compared with the same
period in fiscal 2006. Ingles operates on a 52 or 53 week fiscal year
ending the last Saturday in September. Fiscal year 2007 included 52
weeks, compared with 53 weeks for fiscal 2006. The fourth quarter of
fiscal 2007 included 13 weeks compared with 14 weeks for the fourth
quarter of fiscal 2006.

    Commenting on the results, Robert P. Ingle, chief executive
officer, said, "We increased sales and profits over last year with one
fewer week in the fourth quarter and the year. We're pleased with our
sales growth and the contribution from the seven new or remodeled
stores we opened in 2007. Customers made over 100 million visits to
our 197 stores during the year. We're proud to serve them and did our
best to keep prices low while food and fuel costs have been
increasing."

    Fourth Quarter Results

    Net sales increased 3.2% to $746.0 million for the quarter ended
September 29, 2007, compared with $723.0 million for the comparable
quarter in fiscal 2006. The sales increase was broad based across many
types of products. Adjusted for the additional week in the fiscal 2006
quarter, net sales increased 9.6% and grocery segment comparable store
sales growth was 9.3%. Both average weekly customer visits and the
average purchase amount increased over the comparative fourth
quarters.

    Excluding gasoline sales and adjusting for the additional fiscal
2006 week, fourth quarter sales increased 8.8% compared with the
fourth quarter of fiscal 2006. Gasoline gallons sold increased by 16%
and the average price per gallon increased approximately two cents
compared with the fourth quarter of fiscal 2006. At fiscal year-end
2007, Ingles operated 44 fuel centers compared with 36 at fiscal
year-end 2006.

    Gross profit for the fourth quarter of fiscal 2007 totaled $179.6
million, an increase of $1.6 million compared with the fourth quarter
of fiscal 2006. Gross profit as a percentage of sales was 24.1% for
the fourth quarter of fiscal 2007 compared with 24.6% for the fourth
quarter of fiscal 2006. Excluding lower margin gasoline sales, grocery
segment gross profit as a percentage of sales was 26.9% in the fourth
fiscal quarter of both 2007 and 2006. Prior to this quarter, fiscal
2007 quarterly gross margins were lower than the comparable fiscal
2006 quarters. Favorable changes in product mix helped offset product
cost increases in the fourth quarter of fiscal 2007.

    Operating expenses as a percentage of sales for the quarter
improved to 19.6% compared with 19.9% experienced during the fourth
quarter of fiscal 2006. Total operating expenses were $146.3 million
for the fourth quarter of fiscal 2007 compared with $144.0 million for
the comparable 2006 quarter, as the expenses attributable to higher
sales were somewhat offset by the additional week in the fourth
quarter of fiscal 2006. Increases in salaries, wages and rent were
offset by decreases in repairs and maintenance and net promotional
costs.

    Net rental income decreased $0.1 million in the fourth quarter of
fiscal 2007 quarter compared with the 2006 fourth fiscal quarter,
primarily due to the difference in the number of weeks.

    Losses from asset disposals totaled $0.3 million for the fourth
quarter of fiscal 2007 compared with losses of $4.5 million for the
fourth quarter of fiscal 2006. During the fourth quarter of fiscal
2006, Ingles recognized approximately $4.5 million of expense related
to shopping center and store assets taken out of service in
conjunction with the Company's store relocation, closing and
remodeling activities.

    Other income totaled $0.9 million for the fourth fiscal 2007
quarter compared with $0.5 million for the comparable fiscal 2006
quarter, as the Company increased sales of scrap cardboard and other
materials.

    Net income for the September 2007 quarter totaled $14.2 million,
23.3% higher than net income of $11.5 million for the September 2006
quarter. Basic and diluted earnings per share for the Company's
publicly traded Class A common stock were $0.61 and $0.57 per share,
respectively, for the September 2007 quarter compared with $0.49 and
$0.47 per share, respectively, for the September 2006 quarter.

    Annual Results

    Net sales increased 9.2% to $2.85 billion for the fiscal year
ended September 29, 2007, from $2.61 billion for the fiscal year ended
September 30, 2006. Adjusted for the additional week in fiscal 2006,
sales increased $281.9 million or 11.0% for the fiscal year ended
September 29, 2007.

    Sales increased in every department except one in fiscal 2007. In
general, net sales increases were driven by effective promotions,
service execution and expanded product selections. Ingles' combination
of fuel stations, pharmacies, meal replacement items, organics and
expanded perishable offerings have offered customers competitive
choices and allowed them to combine shopping trips during a period of
high fuel costs. Year over year, both average weekly customer visits
and average purchase amount increased.

    Grocery segment comparable store sales adjusted for the difference
in weeks increased 11.0%, or $268.7 million from fiscal 2006. Gasoline
department sales increased due to a 39% increase in gallons sold,
while the average sales price per gallon was slightly lower in fiscal
2007 compared with fiscal 2006. Excluding gasoline sales and adjusting
for the extra week in fiscal 2006, comparable store sales increased
8.4%, or $187.8 million for the fiscal year ended September 29, 2007.
During fiscal 2007, Ingles opened two new stores, closed two older
stores and completed five replacement or remodeled stores. Retail
square footage increased to 9.7 million square feet at September 29,
2007 compared with 9.6 million square feet at September 30, 2006.

    Gross profit for the fiscal year ended September 29, 2007,
increased $34.0 million, or 5.2%, to $686.2 million, or 24.1% of
sales, compared with $652.2 million, or 25.0% of sales, for the fiscal
year ended September 30, 2006.

    The increase in grocery segment gross profit dollars was primarily
due to the higher sales volume. Grocery segment gross profit margin
was lower for fiscal 2007 primarily due to higher sales growth in the
gasoline department, which has the lowest gross margin. In addition,
inflation for food, beverages and energy increased to a greater extent
than overall inflation during fiscal 2007. In many instances, the
Company elected to absorb cost increases and accept lower margins in
order to increase market share and keep retail prices as low as
possible. Excluding gasoline sales, grocery segment gross profit
margin was 26.7% for fiscal year 2007 compared with 27.0% for fiscal
year 2006.

    Operating and administrative expenses increased $27.4 million, or
5.1%, to $564.0 million for the year ended September 29, 2007, from
$536.6 million for the year ended September 30, 2006. As a percentage
of sales, operating and administrative expenses decreased to 19.8% for
the fiscal year ended September 29, 2007, compared with 20.6% for the
fiscal year ended September 30, 2006. The improved leverage was due
primarily to the higher sales base in 2007. With the exception of bank
interchange fees for processing debit and credit card transactions,
major expense categories such as labor and utilities increased at a
slower rate than the growth in sales dollars.

    Net rental income decreased $0.6 million to $4.4 million for the
2007 fiscal year from $5.0 million for the 2006 fiscal year due to
higher vacancy rates and a more selective process regarding
complimentary tenants.

    Gains on asset disposals totaled $6.9 million for fiscal 2007
compared with losses of $4.4 million for fiscal 2006. During fiscal
2007 the Company sold a shopping center in which it no longer operated
a store at a pre-tax gain of approximately $7.9 million. During fiscal
2006, Ingles recognized approximately $4.5 million of expense related
to shopping center and store assets taken out of service in
conjunction with the Company's store relocation, closing and
remodeling activities.

    Other income totaled $3.0 million for fiscal 2007 compared with
other income of $1.7 million for fiscal 2006. Increased waste paper
and packaging sales accounted for most of the increase.

    Interest expense decreased $3.1 million for the year ended
September 29, 2007, to $46.7 million from $49.8 million for the year
ended September 30, 2006, due primarily to the repayment of $29.7
million of principal debt during fiscal year 2007, partially offset by
$16.6 million of additional line of credit borrowings. Total debt at
September 29, 2007, was $543.3 million compared with $556.3 million at
September 30, 2006.

    Net income increased $16.0 million, or 37.7% for the fiscal year
ended September 29, 2007, to $58.6 million, from $42.6 million for the
fiscal year ended September 30, 2006. Basic and diluted earnings per
share for Class A Common Stock were $2.51 and $2.39 for the fiscal
year ended September 29, 2007 compared with $1.82 and $1.74,
respectively, for the fiscal year ended September 30, 2006.

    Capital expenditures totaled $127.8 million and $94.3 million for
fiscal years 2007 and 2006, respectively. During fiscal 2007, Ingles
opened two new stores, closed two stores, completed five replacement
or remodeled stores and purchased 12 land parcels for future
development. Ingles' capital expenditure plans for fiscal 2008 include
investments of approximately $105 million. The Company plans to open
10 new, replacement or remodeled stores and add 10 fuel stations at
either new or existing stores. The Company expects annual capital
expenditures to range from $90 to $110 million for the foreseeable
future.

    At September 29, 2007, the Company had committed line of credit
facilities totaling $150 million with six banks. At September 29,
2007, $20.6 million was outstanding under these lines. Total borrowing
availability under these lines, after deducting amounts outstanding
and letters of credit, totaled $109.3 million at September 29, 2007.
The Company is in the process of securing an additional $35 million in
credit line facilities at similar terms to the existing facilities.

    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, except as required by
law. 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 2007 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 197 supermarkets. In conjunction
with its supermarket operations, the Company also operates
71 neighborhood shopping centers, all but 16 of which contain an
Ingles supermarket. The Company's Class A Common Stock is traded on
The NASDAQ Stock Market's Global Market under the symbol IMKTA. For
more information about the Company, visit Ingles' website at
www.ingles-markets.com.


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

                         Financial Highlights
                             (Unaudited)

                              Quarter Ended           Year Ended
                          --------------------- ----------------------
                           Sept. 29,  Sept. 30, Sept. 29,   Sept. 30,
                             2007       2006       2007       2006
                          ----------- --------- ---------- -----------

Net sales                 $  746,035  $722,978  $2,851,593 $2,612,233
Gross profit                 179,576   177,939     686,235    652,194
Operating and
 administrative expenses     146,275   143,967     564,023    536,614
Rental income, net               868       964       4,419      4,980
(Loss) gain from sale or
 disposal of assets             (298)   (4,482)      6,880     (4,440)
Income from operations        33,871    30,454     133,511    116,120
Other income (expense),
 net                             875       520       3,013      1,744
Interest expense              10,873    13,046      46,675     49,783
Income taxes                   9,656     6,399      31,211     25,499
Net income                $   14,217  $ 11,529  $   58,638 $   42,582

Basic earnings per common
 share - Class A          $     0.61  $   0.49  $     2.51 $     1.82
Basic earnings per common
 share - Class B          $     0.55  $   0.45  $     2.28 $     1.66
Diluted earnings per
 common share - Class A   $     0.57  $   0.47  $     2.39 $     1.74
Diluted earnings per
 common share - Class B   $     0.55  $   0.45  $     2.28 $     1.66

Additional selected
 information:
Depreciation and
 amortization expense     $   16,188  $ 15,633  $   60,944 $   59,930
Rent expense              $    5,299  $  4,291  $   17,692 $   20,889


                Condensed Consolidated Balance Sheets

                           Sept. 29,            Sept. 30,
                             2007                  2006
                          -----------           ----------
ASSETS
  Cash and cash
   equivalents            $   16,839            $   17,540
  Receivables-net             44,641                43,594
  Inventories                233,465               215,369
  Other current assets        10,648                 9,315
  Property and equipment-
   net                       839,732               771,628
  Other assets                 9,947                17,528
                          -----------           ----------
TOTAL ASSETS              $1,155,272            $1,074,974
                          ===========           ==========
LIABILITIES AND
 STOCKHOLDERS' EQUITY
  Short-term loans and
   current maturities of
   long-term debt         $   31,307            $   33,666
  Accounts payable,
   accrued expenses and
   current portion of
   other long-term
   liabilities               219,161               185,195
  Deferred income taxes       38,177                22,673
  Long-term debt             511,950               522,649
  Other long-term
   liabilities                 6,533                 6,118
                          -----------           ----------
     Total Liabilities       807,128               770,301
  Stockholders' equity       348,144               304,673
                          -----------           ----------
TOTAL LIABILITIES AND
 STOCKHOLDERS' EQUITY     $1,155,272            $1,074,974


    CONTACT: Ingles Markets, Incorporated
             Ron Freeman, Chief Financial Officer
             828-669-2941 (Ext. 223)
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
