EX-99.4 3 a90228exv99w4.htm EXHIBIT 99.4 exv99w4
 

Exhibit 99.4

         
(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
Monday, May 12, 2003

STATER BROS. HOLDINGS INC. ANNOUNCES RECORD SALES
SECOND QUARTER RESULTS RELEASED

Colton, California. May 12, 2003; 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 30, 2003.

Sales for the thirteen week second quarter ended March 30, 2003 increased 3.5% to $677.2 million compared to $654.2 million for the thirteen weeks ended March 31, 2002. Total sales for the twenty-six weeks ended March 30, 2003, increased 3.2% and amounted to $1.359 billion compared to $1.317 billion for the same period in the prior year. Like store sales increased 3.0% and 2.6% for the thirteen week and twenty-six week periods ended March 30, 2003, respectively.

Operating profit for the thirteen week second quarter of 2003 amounted to $19.4 million compared to $19.5 million for the second quarter of 2002. Operating profit for the fiscal year to date of 2003 amounted to $36.8 million compared to $38.2 million for the like period in fiscal 2002.

The Company reported net income for the thirteen week second quarter ended March 30, 2003 of $3.8 million compared to $4.3 million for the thirteen weeks ended March 31, 2002. Net income for the fiscal year to date periods amounted to $6.8 million in 2003 and $8.2 million in 2002.

Operating cash flow (EBITDA) is defined as earnings before interest expense, income taxes and depreciation and amortization. The Company has presented EBITDA information as it is relevant to certain investors and analysts as a measure of a company’s ability to service debt. EBITDA is not a measure of financial performance under generally accepted accounting principles and it should not be used as an alternative to, or be construed as more meaningful than, operating profit or cash flows as an indicator of the Company’s operating performance. EBITDA amounted to $27.9 million in the second quarter of fiscal 2003 and compares to $28.2 million for the like period of last year. EBITDA for the twenty-six week comparable periods were $54.2 million in fiscal 2003 and $55.1 million in fiscal 2002. The following table reconciles EBITDA to net income.

                                 
    Q2 2003   Q2 2002   YTD 2003   YTD 2002
(in 000's)  
 
 
 
Net Income
  $ 3,831     $ 4,294     $ 6,759     $ 8,226  
Income Taxes
    2,531       2,983       4,404       5,716  
Interest Expense
    13,301       13,201       26,559       25,997  
Depreciation and Amortization
    8,285       7,680       16,449       15,184  
 
   
     
     
     
 
EBITDA
  $ 27,948     $ 28,158     $ 54,171     $ 55,123  

Brown said; “Our continued steady performance reflects the abilities of our management team and the members of our Stater Bros. Family to stay focused on serving our “Valued Customers” on each and every shopping trip.”

Stater Bros. Holdings Inc. is the largest privately held Supermarket Chain in Southern California and operates 156 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 operates 156 Supermarket locations, with 47 in San Bernardino County, 40 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 14,000 members of the Stater Bros. “Family” of Employees. Stater Bros. is the largest private employer in the Inland Empire of Southern California, which is one of the fastest growing areas in the United States. Headquartered in Colton, California, Stater Bros. has been serving Southern California customers since 1936. In the spring of 2003, Stater Bros. will open its 157th Supermarket in Corona, California.

STATER BROS. MARKETS...SERVING SOUTHERN CALIFORNIA FOR 66 GOLDEN YEARS

# # #

 


 

STATER BROS. HOLDINGS INC.
Condensed Balance Sheets

(In thousands)

Unaudited

                     
        9/29/2002   03/30/03
       
 
Assets
               
 
Current Assets
               
   
Cash and cash equivalents
  $ 81,043     $ 98,874  
   
Receivables
    33,561       24,563  
   
Inventories
    175,404       169,715  
   
Other current assets
    23,141       24,706  
 
   
     
 
 
Total current assets
    313,149       317,858  
 
Investment in unconsolidated affiliate
    15,580       16,559  
 
Property and equipment, net
    285,816       293,397  
 
Deferred debt issuance costs, net
    13,936       12,211  
 
Other long-term assets
    5,649       5,704  
 
   
     
 
Total Assets
  $ 634,130     $ 645,729  
 
   
     
 
Liabilities and Stockholders’ Deficit
               
 
Current Liabilities
               
   
Accounts payable
  $ 104,166     $ 103,255  
   
Accrued expenses and other liabilities
    88,223       89,679  
   
Current portion of capital lease obligations
    1,117       1,064  
 
   
     
 
 
Total current liabilities
    193,506       193,998  
 
Long-term debt
    458,750       458,750  
 
Capital lease obligations, less current portion
    10,981       10,454  
 
Other long-term liabilities
    45,014       49,889  
 
Common stockholders’ deficit
    (74,121 )     (67,362 )
 
   
     
 
Total Liabilities and Stockholders’ Deficit
  $ 634,130     $ 645,729  
 
   
     
 

 


 

STATER BROS. HOLDINGS INC.

Condensed Results of Operations

(In thousands)

Unaudited

                   
      13 Weeks Ended
     
      03/31/02   03/30/03
     
 
Sales
  $ 654,213     $ 677,196  
Gross profit
    172,813       186,772  
Operating Expenses:
               
 
Selling, general and administrative expenses
    145,657       159,072  
 
Depreciation and amortization
    7,680       8,285  
 
   
     
 
Total operating expenses
    153,337       167,357  
 
   
     
 
Operating profit
    19,476       19,415  
Interest income
    322       254  
Interest expense
    (13,201 )     (13,301 )
Equity in earnings from unconsolidated affiliate
    1,375       233  
Other, net
    (695 )     (239 )
 
   
     
 
Income before income taxes
    7,277       6,362  
Income taxes
    2,983       2,531  
 
   
     
 
Net income
  $ 4,294     $ 3,831  
 
   
     
 

 


 

STATER BROS. HOLDINGS INC.

Condensed Results of Operations

(In thousands)

Unaudited

                   
      26 Weeks Ended
     
      03/31/02   03/30/03
     
 
Sales
  $ 1,316,800     $ 1,358,705  
Gross profit
    348,976       370,388  
Operating Expenses:
               
 
Selling, general and administrative expenses
    295,593       317,095  
 
Depreciation and amortization
    15,184       16,449  
 
   
     
 
Total operating expenses
    310,777       333,544  
 
   
     
 
Operating profit
    38,199       36,844  
Interest income
    1,026       526  
Interest expense
    (25,997 )     (26,559 )
Equity in earnings from unconsolidated affiliate
    2,023       979  
Other, net
    (1,309 )     (627 )
 
   
     
 
Income before income taxes
    13,942       11,163  
Income taxes
    5,716       4,404  
 
   
     
 
Net income
  $ 8,226     $ 6,759