Ingles Market's total debt increases due to new facility construction

By Aleesia Forni

Columbus, Ohio, Jan. 30 - Ingles Market Inc. reported total debt of $882.5 million at the end of its first quarter of fiscal 2012, up from $784.5 million at the same time during the previous fiscal year.

"The increase in debt is primarily attributable to financing the construction of a new distribution facility scheduled to open during calendar year 2012," chief financial officer Ronald B. Freeman said during the company's conference call on Monday to discuss its fiscal first-quarter financial results.

The Black Mountain, N.C.-based supermarket chain currently has lines of credit totaling $175 million and $44.2 million borrowed as of Dec. 24.

"The company believes its financial resources, including these lines 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," the CFO added.

The company also reported capital expenditures of $63.7 million for the three-month period ended Dec. 24 and net income of $10.6 million.

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