50493--12/1/2008--INGLES_MARKETS_INC

related topics
{acquisition, growth, future}
{operation, natural, condition}
{stock, price, operating}
{gas, price, oil}
{condition, economic, financial}
{competitive, industry, competition}
{loan, real, estate}
{regulation, change, law}
{customer, product, revenue}
The Company s expansion and renovation plans may not be successful which may adversely affect the Company s business and financial condition due to the capital expenditures and management resources required to carry out the Company s plans. The Company s warehouse and distribution center and milk processing and packaging plant, as well as all of the Company s stores, are concentrated in the Southeastern United States, which makes us vulnerable to economic downturns, natural disasters and other adverse conditions or other catastrophic events in this region. The Company has, and expects to continue to have, a significant amount of indebtedness. Disruptions in the capital markets, as have been experienced during 2008, could adversely affect the Company s ability to fund its short-term liquidity needs and its expansion and renovation plans. The Company s principal stockholder, Robert P. Ingle, has the ability to elect a majority of the Company s directors, appoint new members of management and approve many actions requiring shareholder approval. If the Company loses the services of its key personnel, including Robert P. Ingle and Robert P. Ingle, II, the Company s business could suffer. Various aspects of the Company s business are subject to federal, state and local laws and regulations. The Company s compliance with these regulations may require additional capital expenditures and could adversely affect the Company s ability to conduct the Company s business as planned. The Company is affected by certain operating costs which could increase or fluctuate considerably. The Company is affected by the availability and wholesale price of gasoline and retail gasoline prices, all of which can fluctuate quickly and considerably. The Company s industry is highly competitive. If the Company is unable to compete effectively, the Company s financial condition and results of operations could be materially affected. Disruptions in the efficient distribution of food products to the Company s warehouse and stores may adversely affect the Company s business. The Company s operations are subject to economic conditions that impact consumer spending.

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