Good day, and welcome to the Ingles Markets Third Quarter 2015 Earnings Release Conference Call. Today's conference is being recorded. At this time for opening remarks and introductions, I would like to turn the call over to the Chief Financial Officer, Mr. Ronald Freeman. Please go ahead, sir.

Thank you. Good morning, everyone. And welcome to the Ingles Markets fiscal 2015 third quarter conference call. With me today are Robert Ingle II, Chief Executive Officer; Jim Lanning, President; and Tom Outlaw, Vice President of Sales and Marketing. Statements made on this call include forward-looking statements as defined by and subject to the Safe Harbors created by federal securities laws. Words such as expect, anticipate, intend, plan, believe, and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and involves risks, uncertainties, and assumptions which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed on this call. Ingles Markets Incorporated does not undertake to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. For a description of factors that could cause actual results to differ materially from that anticipated by forward-looking statements, you are referred to the company's public filings, including the Form 10-K for the fiscal year ended September 27, 2014. In accordance with a longstanding company policy, and in recognition of the extremely competitive nature of our industry, this call will not address individual competitors or Ingles' marketing strategies other than what is included in the company's public filings. This morning, I'll provide you with a summary of our third quarter and nine month results followed by additional comments. After that, we will be pleased to take your questions. Our press release issued this morning is available on our website at www.ingles-markets.com. Our 10-Q for the quarter will be filed later this week and will be available on our website at that time. Net income totaled $13.8 million for the quarter ended June 27, 2015 and for the same quarter of last year. For the nine…

Thank you. [Operator Instructions] We'll go first to Damian Witkowski at Gabelli.

Hi, Good morning, Ron.

Damian, how are you?

Good. The 1.6 same store sales increase in the quarter, how does that break down between number of transactions and the basket size?

Both the number of transactions and the basket size were up for the quarter. I have not split that out into the dollar comp sales increase. But again, they were certainly contributors to that.

Sure. But I mean, those - I am assuming you are seeing the same thing in those deflation in produce and things like that. So I would imagine the basket might actually be a smaller contributor than the actual number of transactions?

That’s possible, but we are seeing some cost increases in some other areas. So I don’t think it’s a big factor on it.

Okay. And then can I just – the last comment on the CapEx for the full year, I am sorry, whether you said 115 to 120?

I said 100 to 120.

Okay. But I mean, we're at 73 and we're two months from the year being done. So I mean, is it – I mean, what would make it a – I am just trying to, I mean, it’s pretty wide gap so for remaining two months?

We've got a new store that we anticipate opening before the end of the year. We're about to crank up a couple more. So the timing of when those targets get – or it could accelerate it little bit.

Okay. And then do you have the grocery gross margins, excluding fuel?

That will be in the Q later on this week. But again, we've been pleased the performance in those non-gas gross margins there, so they're pretty much across the board.

Okay. And then it sounds like you actually sold more fuel, but it sounds like cents per gallon that you earned were probably lower year-over-year?

That’s correct.

Okay. And again but that won't be in the Q, right, you don’t disclose the actual cents per gallon that you earn?

No, we do not.

Okay. And then the loss versus gain, this year versus last, I know these are not big numbers. But I am just curious I mean, is it a single asset or is it a multiple number of assets that were sold and then why would you take a – what drove the loss?

They are really two transactions that happened. In the third quarter this year we closed a store, demolished the existing building and we'll be rebuilding from the ground up there. So we wrote off the existing building. Last year we had an outparcel sale that resulted in a profit. So just a delta between those two transactions…

Okay. And then lastly, I know you don’t want to comment on specific competitors. But just overall I mean, I think the competitive environment is always difficult. But is it – is there anything that’s changing, that you are seeing in the market place in terms of either your visiting competitors acting differently or anything like that?

Well, you are right to say that we generally don’t talk about that a whole lot. But we've got a lot of things that we're focusing on that we are doing, that we are very pleased with and very positive about.

Okay. Thanks, Ron.

You're welcome, Damian.

And we'll move next to Bryan Hunt with Wells Fargo.

Good morning. It’s actually Dave Cooke on for Bryan. Thanks for taking my questions. First of all any discernible difference in the cadence of same store sales throughout the quarter?

I am sorry, in the what?

In the pace of same store sales in the quarter, one month versus the next, any real difference?

Nothing tremendously different. It’s been pretty consistent across the quarter.

Okay. And then on the increase in gasoline gallons sold. We read a lot about people traveling more this year, is that kind of what you are seeing or is it - I don’t know certain promotions you are running or could you expand on that a little bit?

We haven’t introduced new promotions. We are seeing some additional travel and I think both of those things are helping.

Okay. And then the increase in OG&A, you mentioned payroll and self insurance claims, with regard to payroll, are those more minimum wage increases or higher incentive comp?

Really, we're just seeing tighter labor for the first time in a while. It’s becoming more difficult to hire the associates we need and I think that’s providing a little bit of wage pressure.

Okay. I appreciate it. Thanks.

You're welcome.

[Operator Instructions] We'll go next to Hale Holden at Barclays.

Thanks for taking the call. Couple of quick ones. Any commentary you can give us on what you are seeing or outlook for inflation, deflation is?

Well, certainly there has been a lot of talk in the news about what's been going out with egg prices. We've certainly been affected like that and that can affect a lot of our products in bakery and anywhere else where eggs would be used, that’s certainly the most pronounced thing that we're seeing right now. Other than that, I wouldn’t say there is anything up or down that’s really pushing the needle. We'll see what happens if gas prices decreases in the way that a lot of people are expecting that they will.

Any thoughts on [indiscernible] consumer in your markets, consumer health spending and how they're feeling?

Yes. Again, we talked about a little bit with labor. I think people are feeling better. They are seeing some wage increases. There has been more than they've been able to see in the last few years. So we think consumer sentiment is pretty good in our area.

And then on the labor comment, is it across stores that you're having trouble filling seats you’ve or you having – I mean, do have empty positions you're looking to fill?

We always have empty positions we're looking fill. It’s pretty wide spread. Again I think that there has been evidence nationwide of wage growth and employment numbers generally ticking down a little bit and we're certainly seeing that in our markets.

Great. I appreciate the comments. Thank you.

Hale, you're welcome.

[Operator Instructions] And at this time we have no further questions. I'll turn the conference back over management for any closing or additional remarks.

Okay, well thank you. We appreciate everyone joining us for the call this morning. Again be on to lookout 10-Q later on this week and we will be back with you in early December with our annual results. Everyone have a good day.

And that does conclude today's conference. Again, thank you for your participation.