Village Super Market Inc. Reports Operating Results (10-K)
Village Super Market Inc. has a market cap of $372.1 million; its shares were traded at around $27.79 with a P/E ratio of 14.7 and P/S ratio of 0.3. The dividend yield of Village Super Market Inc. stocks is 3.6%. Village Super Market Inc. had an annual average earning growth of 9% over the past 10 years. GuruFocus rated Village Super Market Inc. the business predictability rank of 5-star.VLGEA is in the portfolios of Chuck Royce of Royce& Associates, Mario Gabelli of GAMCO Investors.
Highlight of Business Operations:The aggregate market value of the Class A common stock of Village Super Market, Inc. held by non-affiliates was approximately $138.3 million and the aggregate market value of the Class B common stock held by non-affiliates was approximately $6.5 million based upon the closing price of the Class A shares on the NASDAQ on January 23, 2010, the last business day of the second fiscal quarter. There are no other classes of voting stock outstanding.
Village seeks to generate high sales volume by offering a wide variety of high quality products at consistently low prices. During fiscal 2010, sales per store were $48,532 and sales per selling square foot were $1,085. The Company gives ongoing attention to the décor and format of its stores and tailors each store's product mix to the preferences of the local community. Village concentrates on the development of superstores.
Each of Wakefern's members is required to make capital contributions to Wakefern based on the number of stores operated by that member and the purchases generated by those stores. As additional stores are opened or acquired by a member, additional capital must be contributed by it to Wakefern. The Company s investment in Wakefern and affiliates was $20,263 at July 31, 2010. The total amount of debt outstanding from all capital pledges to Wakefern is $1,821 at July 31, 2010. The maximum per store capital contribution increased from $725 to $750 in fiscal 2010, resulting in an additional $590 capital pledge, which was paid in fiscal 2010.
The Company, in the ordinary course of business, is involved in various legal proceedings. Village does not believe the outcome of these proceedings will have a material adverse effect on the Company s consolidated financial condition, results of operations or liquidity. The Company s leasehold interest in the old Washington store had been the subject of litigation related to the lease-end date, rent amounts and other matters. On July 30, 2009, the Company settled all litigation with the landlord and purchased the land and building for $3,100. During the fourth quarter of fiscal 2009, the Company recorded a pre-tax charge of $1,200 related to this litigation. This charge was based on the consideration paid in excess of the fair value of the property. In addition to settling the litigation, the purchase of the old Washington store property eliminated any potential time period between the closing of the old Washington store and the opening of the replacement store.
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