EX-99.1 2 a15725exv99w1.htm EXHIBIT 99.1 exv99w1
 

Exhibit 99.1

(STATER BROS)
Contact:
Phil Smith
Stater Bros. Holdings Inc.
(909)783-5287


PRESS RELEASE
For Immediate Release
Tuesday, December 20, 2005
STATER BROS. HOLDINGS ANNOUNCES SALES AND EARNINGS
Colton, California. December 20, 2005: Today, Jack H. Brown, Chairman, President and Chief Executive Officer of Stater Bros. Holdings Inc. announced sales and earnings for the fifty-two week fiscal year ended September 25, 2005.
Prior year results were materially affected in a positive manner by the unprecedented Southern California Supermarket Industry labor dispute. The effect of this event needs to be considered when comparing the current year to the prior year results.
Sales for fiscal 2005 were $3.4 billion, a decrease of 9.0% when compared to sales of $3.7 billion for the 2004 fiscal year. Sales for the fourth quarter of fiscal 2005 ended September 25, 2005 were $849.9 million, an increase of 1.1% when compared to $840.9 million for the fiscal fourth quarter of 2004 ended September 26, 2004. Like store sales for fiscal 2005 decreased 12.1% compared to fiscal 2004. For the fourth quarter of fiscal 2005, like stores sales decreased 1.0% compared to the fourth quarter of fiscal 2004. A comparison of sales between fiscal 2005 and fiscal 2004 is difficult due to the effect of the labor dispute in fiscal 2004. Like store sales comparing fiscal 2005 with fiscal 2003, the fiscal year prior to the labor dispute, increased 15.2% or an average annual like store sales growth of 7.6% over the two year period.
The Company reported net income of $26.2 million for the fiscal year 2005 compared to $71.4 million in fiscal year 2004. The results for the fourth quarters of fiscal 2005 and fiscal 2004, reflected net income of $12.1 million and $12.6 million, respectively.
The results of operations for fiscal 2004 were favorably impacted by the Southern California Supermarket Industry labor dispute. The impact of the labor dispute on the Company was unprecedented and is not expected to be repeated in the future.
Brown said, “The Stater Bros. family members continue to provide a friendly and satisfying shopping experience to our “Valued Customers” at a reasonable price for the items they want and need. We are pleased with the results but will continue to focus on customer service and bring value to our customers, the core of the Stater Bros. concept.”
Stater Bros. Holdings Inc. is the largest privately held Supermarket Chain in Southern California and operates 162 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...SERVING SOUTHERN CALIFORNIA FOR 69 GOLDEN YEARS
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STATER BROS. HOLDINGS INC.
Condensed Balance Sheets
(In thousands)
Unaudited
                 
    09/26/04     09/25/05  
Assets
               
Current assets
               
Cash
  $ 301,947     $ 263,397  
Restricted cash
    20,000       29,000  
Receivables
    39,258       45,006  
Inventories
    185,567       185,302  
Other
    34,263       31,122  
 
           
 
Total current assets
    581,035       553,827  
 
Property and equipment, net
    404,856       467,937  
 
Deferred debt issuance costs, net
    21,891       19,011  
Other
    6,339       14,594  
 
           
 
Total assets
  $ 1,014,121     $ 1,055,369  
 
           
 
Liabilities and stockholder’s deficit
               
Current liabilities
               
Accounts payable
  $ 144,612     $ 144,298  
Accrued expenses and other liabilities
    115,321       131,185  
Current portion of capital lease obligations
    1,247       1,190  
 
           
 
Total current liabilities
    261,180       276,673  
 
Long-term debt
    700,000       700,000  
Capital lease obligations, less current portion
    9,470       8,292  
Other long-term liabilities
    83,112       83,799  
 
Common stockholder’s deficit
    (39,641 )     (13,395 )
 
           
 
Total liabilities and stockholder’s deficit
  $ 1,014,121     $ 1,055,369  
 
           

 


 

STATER BROS. HOLDINGS INC.
Condensed Results of Operations
(In thousands)
Unaudited
                                 
    13 Weeks     13 Weeks     52 Weeks     52 Weeks  
    Ended     Ended     Ended     Ended  
    09/26/04     09/25/05     09/26/04     09/25/05  
Sales
  $ 840,928     $ 849,896     $ 3,704,882     $ 3,372,243  
 
Gross profits
    226,126       237,262       1,052,070       904,108  
 
Operating expenses:
                               
Selling, general and administrative expenses
    189,310       198,009       820,329       772,885  
Depreciation and amortization
    9,364       10,388       33,284       39,575  
 
                       
Total operating expenses
    198,674       208,397       853,613       812,460  
 
                       
Operating profit
    27,452       28,865       198,457       91,648  
 
Interest income
    1,192       2,291       2,198       6,816  
Interest expense
    (14,534 )     (13,938 )     (53,951 )     (57,142 )
Interest expense related to debt purchase
    (1,630 )           (35,647 )      
Equity in income from unconsolidated affiliate
                929        
Other expenses, net
    (326 )     (833 )     (1,343 )     (1,414 )
 
                       
 
Income before income taxes (benefit)
    12,154       16,385       110,643       39,908  
 
Income taxes (benefit)
    (412 )     4,278       39,202       13,662  
 
                       
 
Net income
  $ 12,566     $ 12,107     $ 71,441     $ 26,246