EX-99.1 2 a09113exv99w1.htm EXHIBIT 99.1 exv99w1
 

Exhibit 99.1

         
(STATER BROS 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, May 10, 2005

STATER BROS. HOLDINGS ANNOUNCES SECOND QUARTER RESULTS

Colton, California. May 10, 2005; Today, Jack H. Brown, Chairman, President and Chief Executive Officer of Stater Bros. Holdings Inc. announced financial results for the thirteen week second quarter and twenty-six week year-to-date period ended on March 27, 2005.

The results for the prior year second quarter and twenty-six weeks were affected by the unprecedented Southern California Supermarket Industry labor dispute which had a significant impact on the Company’s results during fiscal 2004.

Sales for the thirteen week second quarter ended March 27, 2005, compared to the second quarter 2004 during which the labor dispute was in effect, decreased 14.8% to $842.9 million compared to $989.4 million for the thirteen weeks ended March 28, 2004. Total sales for the twenty-six weeks ended March 27, 2005, decreased 16.6% and amounted to $1.682 billion compared to $2.016 billion for the same period in the fiscal 2004 which was affected by the labor dispute. Like store sales decreased 18.4% and 20.3% for the thirteen week and twenty-six week periods ended March 27, 2005, respectively.

The Company reported net income for the thirteen week second quarter ended March 27, 2005 of $3.6 million compared to $30.2 million for the thirteen weeks second quarter ended March 28, 2004 during which the labor dispute was in effect. Net income for the fiscal year-to-date periods amounted to $6.9 million in 2005 and $64.7 million in 2004 which was affected by the labor dispute. The quarter and year-to-date results for 2004 include a $13.3 million after tax gain from litigation settlement. The settlement transferred the remaining 50% ownership interest in Santee Dairies, Inc. to the Company. Santee’s results have been consolidated in the Company’s results since the settlement date of February 6, 2004.

Brown said; “It is not possible to compare any major category on our Operating Statements between Fiscal 2004 and Fiscal 2005, due to the major effects of the unprecedented labor dispute in Fiscal 2004 that affected all of the Southern California Supermarket Industry. The Company is determined to maintain as much of the volume and as many of the new “Valued Customers” as possible. All of our “Valued Customers” have our commitment to provide a friendly and satisfying shopping experience on each and every one of their visits to our stores.”

Stater Bros. Holdings Inc. is the largest privately held Supermarket Chain in Southern California and operates 161 supermarkets through its wholly owned subsidiary, Stater Bros. Markets. Stater Bros. Markets also owns and operates Santee Dairies.

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

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     26 Weeks Ended  
    03/28/04     03/27/05     03/28/04     03/27/05  
    (as restated)             (as restated)          
Sales
  $ 989,418     $ 842,852     $ 2,015,971     $ 1,681,917  
Gross profit
    296,339       218,242       601,221       435,251  
Operating expenses
                               
Selling, general and administrative expenses
    215,844       189,336       442,695       378,496  
Depreciation and amortization
    7,958       9,648       15,582       19,097  
 
                       
Total operating expenses
    223,802       198,984       458,277       397,593  
 
                       
Operating profit
    72,537       19,258       142,944       37,658  
Interest income
    464       1,469       848       2,661  
Interest expense
    (13,137 )     (14,578 )     (26,313 )     (28,674 )
Interest from debt redemption
    (8,522 )           (8,522 )      
Equity in earnings from unconsolidated affiliate
    303             929        
Other expenses — net
    (256 )     (184 )     (709 )     (299 )
 
                       
Income before income taxes
    51,389       5,965       109,177       11,346  
Income taxes
    21,203       2,365       44,440       4,483  
 
                       
Net income
  $ 30,186     $ 3,600     $ 64,737     $ 6,863  
 
                       

 


 

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

                 
    9/26/04     03/27/05  
Assets
               
Current assets
               
Cash
  $ 301,947     $ 246,359  
Restricted cash
    20,000       29,000  
Receivables
    39,258       49,172  
Inventories
    185,567       188,738  
Other
    34,263       35,537  
 
           
Total current assets
    581,035       548,806  
Property and equipment, net
    404,856       434,812  
Deferred debt issuance costs, net
    21,891       20,532  
Other assets
    6,339       8,035  
 
           
Total assets
  $ 1,014,121     $ 1,012,185  
 
           
Liabilities and stockholder’s deficit
               
Current liabilities
               
Accounts payable
  $ 142,077     $ 131,444  
Accrued expenses and other liabilities
    117,856       117,145  
Current portion of capital lease obligations
    1,247       1,170  
 
           
Total current liabilities
    261,180       249,759  
Long-term debt
    700,000       700,000  
Capital lease obligations, less current portion
    9,470       8,894  
Other long-term liabilities
    83,112       86,310  
Total stockholder’s deficit
    (39,641 )     (32,778 )
 
           
Total liabilities and stockholder’s deficit
  $ 1,014,121     $ 1,012,185