EX-99.1 2 a22946exv99w1.htm EXHIBIT 99.1 exv99w1
 

Exhibit 99.1

(STATER BROS LOGO)
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, August 8, 2006
STATER BROS. HOLDINGS INC. ANNOUNCES THIRD QUARTER RESULTS
SALES INCREASE DURING QUARTER AND 39 WEEKS
Colton, California. August 8, 2006; Today, Jack H. Brown, Chairman, President and Chief Executive Officer of Stater Bros. Holdings Inc. announced financial results for the thirteen week third quarter and thirty-nine week year-to-date period ended June 25, 2006.
Sales for the thirteen week third quarter ended June 25, 2006, compared to the third quarter 2005, increased $45.5 million or 5.4% and amounted to $885.9 million compared to $840.4 million for the thirteen weeks ended June 26, 2005. Total sales for the thirty-nine weeks ended June 25, 2006, increased $94.2 million or 3.7% and amounted to $2.62 billion compared to $2.52 billion for the same period in fiscal 2005.
Like store sales for the quarter were impacted by the timing of the Easter holiday, which fell in the third quarter of the current year compared to the second quarter of fiscal 2005. Easter added approximately $7.8 million to fiscal 2005 second quarter sales. After taking the effect of the Easter holiday, like store sales increased 2.3% for the third quarter of fiscal 2006 over fiscal 2005. Like store sales increased 1.0% for the year-to-date period of fiscal 2006 over fiscal 2005.
The Company reported net income for the thirteen week third quarter ended June 25, 2006 of $5.7 million compared net income of $7.3 million for the thirteen weeks ended June 26, 2005. Net income for the fiscal year-to-date periods amounted to $15.3 million in 2006 and $14.1 million in 2005.
Brown said; “The third quarter results reflected positive operating performance due to the dedicated efforts of our Stater Bros. Family members, despite continued competitive pricing pressures. We remain committed to our ‘Valued Customers’ to provide a friendly and satisfying shopping experience on each and every one of their visits to our supermarkets and maintain our commitment to being the low price leader.”
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. Stater Bros. Markets also owns and operates Santee Dairies, manufacturer of quality “Heartland Farms” diary products in Southern California.
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 Consolidated Statements of Income
(In thousands)
Unaudited
                                 
    13 Weeks Ended     39 Weeks Ended  
    06/26/05     06/25/06     06/26/05     06/25/06  
Sales
   $ 840,430     $ 885,948     $ 2,522,347     $ 2,616,502  
Gross profit
     231,595       229,700       666,846       688,927  
 
                                
Operating expenses
                                
Selling, general and administrative expenses
     196,380       193,451       574,876       590,227  
Depreciation and amortization
     10,090       11,898       29,187       33,315  
 
                        
Total operating expenses
     206,470       205,349       604,063       623,542  
 
                        
Operating profit
     25,125       24,351       62,783       65,385  
 
                                
Interest income
     1,864       2,627       4,525       7,515  
Interest expense
     (14,530 )     (14,731 )     (43,204 )     (44,271 )
Other expenses, net
     (282 )     (702 )     (581 )     (1,395 )
 
                        
Income before income taxes
     12,177       11,545       23,523       27,234  
 
                                
Income taxes
     4,901       5,803       9,384       11,984  
 
                        
 
                                
Net income
   $ 7,276     $ 5,742     $ 14,139     $ 15,250  
 
                        

 

 

STATER BROS. HOLDINGS INC.
Condensed Consolidated Balance Sheets
(In thousands)
Unaudited
                 
    9/25/05     06/25/06  
Assets
                
Current assets
                
Cash
   $ 263,397     $ 194,472  
Restricted cash
     29,000       24,121  
Receivables
     45,006       46,505  
Inventories
     185,302       203,559  
Other
     31,122       30,561  
 
            
 
                
Total current assets
     553,827       499,218  
 
                
Property and equipment, net
     467,937       506,426  
 
                
Deferred debt issuance costs, net
     19,011       16,727  
Other assets
     14,594       18,012  
 
            
 
                
Total assets
   $ 1,055,369     $ 1,040,383  
 
            
 
                
Liabilities and stockholder’s deficit
                
Current liabilities
                
Accounts payable
   $ 144,298     $ 156,004  
Accrued expenses and other liabilities
     129,200       100,701  
Current portion of capital lease obligations
     1,190       1,136  
 
            
Total current liabilities
     274,688       257,841  
 
                
Long-term debt
     700,000       700,000  
Capital lease obligations, less current portion
     8,292       7,524  
Other long-term liabilities
     85,784       91,913  
 
                
Total stockholder’s deficit
     (13,395 )     (16,895 )
 
            
 
                
Total liabilities and stockholder’s deficit
   $ 1,055,369     $ 1,040,383