EX-99.1 2 a05740exv99w1.htm EXHIBIT 99.1 exv99w1
 

Exhibit 99.1

         
(STATER LOGO)
  21700 Barton Road
P.O. Box 150
Colton, California 92324
  Contact:
Phil Smith
Stater Bros. Holdings Inc.
(909) 783-5287

P R E S S   R E L E A S E
For Immediate Release
Tuesday, February 8, 2005

STATER BROS. HOLDINGS ANNOUNCES FIRST QUARTER RESULTS

Colton, California. February 8, 2005; Today, Jack H. Brown, Chairman, President and Chief Executive Officer of Stater Bros. Holdings Inc. announced financial results for the first quarter of fiscal 2005 ended December 26, 2004.

Sales for the thirteen week first quarter ended December 26, 2004, understandably decreased 18.3% to $839.1 million compared to $1.027 billion for the thirteen weeks ended December 28, 2003. Results for the period ended December 28, 2003 included increased sales due to the Southern California grocery labor dispute. Like store sales decreased 22.2% for the thirteen weeks ended December 26, 2004 compared to the thirteen weeks ended December 28, 2003.

The Company reported net income for the thirteen week first quarter ended December 26, 2004 of $3.4 million compared to net income of $34.6 million for the thirteen week first quarter ended December 28, 2003. Prior year results benefited from the labor dispute in Southern California.

Brown said; “The decline in sales in the current year is due to the high sales level in the prior year during the Southern California grocery labor dispute. While the sales have declined we are pleased with the amount of new customers we have been able to retain. This year’s results reflect our Stater Bros. Family post-strike retention efforts to retain many of our new “Valued Customers” providing excellent service and value. We are determined to maintain the existing level of new customers the Stater Bros. Family obtained during the labor dispute. We remain committed to providing a friendly and satisfying shopping experience to all our “Valued Customers” on every one of their visits to our stores.”

Stater Bros. Holdings Inc. is the largest privately held Supermarket Chain in Southern California and operates 160 supermarkets through its wholly owned subsidiary, Stater Bros. Markets.

For information contact: Jack H. Brown, Chairman, President and Chief Executive Officer at (909) 783-5000.

Stater Bros. Markets currently operates 160 Full Service Supermarket locations, with 47 in San Bernardino County, 44 in Riverside County, 30 in Orange County, 27 in Los Angeles County, 10 in Northern San Diego County, and 2 in Kern County. There are over 16,000 members of the Stater Bros. “Family” of Employees. Headquartered in Colton, California, Stater Bros. has been serving Southern California customers since 1936.

STATER BROS. MARKETS...SERVING SOUTHERN CALIFORNIA FOR 68 GOLDEN YEARS
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STATER BROS. HOLDINGS INC.
Condensed Consolidated Statements of Income
(In thousands)
Unaudited

                 
    13 Weeks Ended  
    12/28/03     12/26/04  
Sales
  $ 1,026,553     $ 839,065  
 
               
Gross profit
    304,882       217,009  
 
               
Operating expenses
               
Selling, general and administrative expenses
    226,894       189,179  
Depreciation and amortization
    7,426       9,265  
 
           
Total operating expenses
    234,320       198,444  
 
           
Operating profit
    70,562       18,565  
 
               
Interest income
    384       1,192  
Interest expense
    (13,176 )     (14,096 )
Equity in earnings from unconsolidated affiliate
    626        
Other expenses, net
    (453 )     (115 )
 
           
Income before income taxes
    57,943       5,546  
 
               
Income taxes
    23,300       2,185  
 
           
 
               
Net income
  $ 34,643     $ 3,361  
 
           

 


 

STATER BROS. HOLDINGS INC.
Condensed Consolidated Balance Sheets
(In thousands)
Unaudited

                 
    9/26/04     12/26/04  
Assets
               
Current assets
               
Cash
  $ 301,947     $ 245,247  
Restricted cash
    20,000       29,000  
Receivables
    39,258       45,415  
Inventories
    185,567       199,780  
Other
    34,263       36,530  
 
           
Total current assets
    581,035       555,972  
 
               
Property and equipment, net
    409,623       425,713  
 
               
Deferred debt issuance costs, net
    21,891       21,282  
Other assets
    6,339       6,349  
 
           
 
               
Total assets
  $ 1,018,888     $ 1,009,316  
 
           
Liabilities and stockholder’s deficit
               
Current liabilities
               
Accounts payable
  $ 142,077     $ 140,044  
Accrued expenses and other liabilities
    117,856       104,571  
Current portion of capital lease obligations
    1,247       1,206  
 
           
Total current liabilities
    261,180       245,821  
 
               
Long-term debt
    700,000       700,000  
Capital lease obligations, less current portion
    9,470       9,186  
Other long-term liabilities
    85,429       88,139  
 
               
Total stockholder’s deficit
    (37,191 )     (33,830 )
 
           
 
               
Total liabilities and stockholder’s deficit
  $ 1,018,888     $ 1,009,316