Good day and welcome to the Ingles Markets Incorporated Fourth Quarter conference call. Today’s call 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 and welcome to the Ingles Markets 2013 Fourth Quarter and Year-End Earnings Announcement and Conference Call. With me today are Robert Ingle II, Chairman and Chief Executive Officer; Tom Outlaw, Vice President of Sales; and Jim Lanning, President. 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, likely, goal, seek, believe, and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve 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 and declines any obligation 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 will refer to the company’s public filings, including the Form 10-K for the fiscal year ended September 28, 2013 that will be filed later this week. In accordance with the 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 fourth quarter and annual results followed by additional comments on each period. 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-K will be filed later. Upon filing, it will be available via the website as well. We are very pleased to report that this…

Thank you. The question and answer session will be conducted electronically. [Operator instructions] Our first question, we’ll hear from Damian Witkowski with Gabelli & Company. Damian Witkowski – Gabelli & Co.: Good morning, Ron. It’s Damian Witkowski with Gabelli & Company. Congrats on another strong year.

Thank you. Damian Witkowski – Gabelli & Co.: Just a couple of housekeeping items. The interest expense, the $12 million or so for the fourth quarter, is that a good run rate to think about going forward in terms of all inclusive?

Yes, it is. We have some of the debt out there that’s at floating rates that could affect some, depending on how rates go up and down; but by and large, that’s a good run rate to use. Damian Witkowski – Gabelli & Co.: Okay, and then same store sales in the fourth quarter up 1.3%, you said traffic was positive what for the fourth quarter? I know you said it for the full year. I didn’t catch it for the fourth quarter.

Let me go back and look. Damian Witkowski – Gabelli & Co.: Well I guess I can get that again, but I’m more curious if you look at it, traffic obviously is positive and so is the basket every time the customer comes in. I’m wondering if the basket is—are they putting extra units in there, or is it mostly just inflation?

Well it’s hard to tell because inflation has really affected some products and it’s had a detrimental effect on other products, so I really couldn’t—I would be very hesitant to put an inflation number on the basket increase. So again, I think the best way to look at it is we’ve had a traffic increase but pretty flat basket overall. Damian Witkowski – Gabelli & Co.: Okay. And overall the consumer, how you would you describe him or her? You have obviously gasoline prices that have been decreasing, now sort of stabilized or climbing back up. Are you still seeing a lot of volatility week-to-week, month-to-month, based on where the fuel is?

That’s sort of difficult to tell as well. We began an expanded fuel program during the fourth quarter that’s been very successful, so it’s kind of changing that typical relationship between gasoline and inside the store. Damian Witkowski – Gabelli & Co.: Okay. And can you talk about how big in dollar terms or percentages food stamps are for your business?

No, we don’t talk about that. Damian Witkowski – Gabelli & Co.: Should I think of it as sort of average, or do you think you skew higher or lower to food stamps versus the national average?

I have no idea. Damian Witkowski – Gabelli & Co.: Okay.

I mean, we accept them when they are offered, just like any other valid form of payment. Damian Witkowski – Gabelli & Co.: Sure. And you haven’t seen any difference in terms of customer behavior as some of the food stamp funding got cut earlier in November?

Well, I think there was some concern before some of the states in our market area really determined what they were going to do, but I think that resolved itself in our area pretty satisfactorily, and we did not see a change on any appreciable basis. Damian Witkowski – Gabelli & Co.: Okay, yes. And then you said CAPEX for next year should be 100 to 140?

Yes. Damian Witkowski – Gabelli & Co.: Should we—I mean, would that include any new stores or is that just remodels and such?

No, no – it includes some new store projects. The timing of whether they will be finished and opened in ’14 or wait a little bit until early ’15 is still up in the air, but we’re picking up the pace of new stores a little. Damian Witkowski – Gabelli & Co.: Okay, so should we think about two to three stores, or--?

Perhaps three to five over the next two years. Damian Witkowski – Gabelli & Co.: Okay, okay. All right. Thanks so much.

Sure thing, Damian.

Once again, if you would like to ask a question, please press star followed by the digit one. Next we’ll hear from Bryan Hunt with Wells Fargo Securities. Bryan Hunt – Wells Fargo Securities: Good morning Ron.

Hello, Bryan. How are you? Bryan Hunt – Wells Fargo Securities: Good. First on sales, I was wondering if you could talk about to any degree whether there was any geographical differences in the sales performance.

Not appreciable, no. Bryan Hunt – Wells Fargo Securities: That’s good to hear. Next, when you look at your gross margin improvement, you said some of it was from DC savings, some of it was from mix. First on the DC savings, do you believe you are at a full run rate now on distribution center savings?

I think we’re pretty close to it. There is always some room for improvement, but we’ve been operating that facility for a year so I think we’re pretty close to what we’re going to do, day-in and day-out. Bryan Hunt – Wells Fargo Securities: Is there any way you could parse out for us kind of the difference between the DC savings and the mix improvement?

It’s really difficult to do that because those DC improvements have come in so many places, everything from more direct negotiations with our vendors to the direct cost of our employees and our trucks hauling more product, so hard to put all that together and give one number on it. Bryan Hunt – Wells Fargo Securities: Okay. Then on the mix side, is it kind of an ongoing sales momentum on prepared foods and fresh? Is that the driver on the gross margin side on the mix?

Yes, that’s a lot of it. Our perishable department is doing very well. Bryan Hunt – Wells Fargo Securities: Okay, and then a little bit on fuel. You talked about you all ran a successful marketing program in Q4 which drove fuel. Is there any way you can describe that a little bit more for us?

It’s pretty public out there, on our billboards and in our stores; so again, needless to say it’s been a successful program for us and we’re happy with the results. Bryan Hunt – Wells Fargo Securities: And when you said gallons are up, was that same store gallons or do you all have more fuel centers this year than a year ago?

We’ve got a couple more fuel centers, but again I think the program success has driven some growth everywhere. Bryan Hunt – Wells Fargo Securities: And I heard you say three to five new stores. Is that next year or is that over the next couple years? I’m sorry – I just missed that last statement.

Next couple of years. Bryan Hunt – Wells Fargo Securities: So when I look at the $100 million to $140 million of CAPEX, is that ongoing store improvement programs, additional fuel centers, maybe a replacement store?

Yes, yes, and yes. Bryan Hunt – Wells Fargo Securities: Okay. Is there any way you can quantify any of that for us?

We’re still working through the details of some of that; and Bryan, there is so much variability in the timing of things, whether it’s weather, whether it’s the municipalities you’re dealing with on permitting issues, that we always have to be very flexible in the priority that we place on things, so it’s difficult to be more precise than the numbers that we’ve given you there. Bryan Hunt – Wells Fargo Securities: Okay, thanks for your time.

Sure, Bryan.

And there are no further questions at this time.

Okay, well we appreciate everyone joining us today for the call. We wish all of our customers and our employees and our shareholders, and anyone else who happened to be with us this morning a very safe holiday season. Thank you very much.

That will conclude today’s call. We thank you for your participation.