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8-K - FORM 8-K - STATER BROS HOLDINGS INC | v55171e8vk.htm |
Exhibit 99.1
301 S. Tippecanoe Avenue San Bernardino, California 92408 |
Contact: Phil Smith Stater Bros. Holdings Inc. (909)733-5287 |
PRESS RELEASE
For Immediate Release
Tuesday, February 9, 2010
Tuesday, February 9, 2010
STATER BROS. HOLDINGS INC. ANNOUNCE FIRST QUARTER 2010 RESULTS
SUPERMARKET SALES FLAT DAIRY ASSET SALE COMPLETED
SUPERMARKET SALES FLAT DAIRY ASSET SALE COMPLETED
SAN BERNARDINO, CALIFORNIA - February 9, 2010: Today, Jack H. Brown, Chairman, President and
Chief Executive Officer of Stater Bros. Holdings Inc. announced financial results for the first
quarter of fiscal 2010 ended December 27, 2009.
The Companys supermarket sales were relatively flat declining 1.11% in the first quarter of fiscal
2010 compared to the same period of the prior year. Like store sales decreased 2.19% or $20.4
million for the thirteen weeks ended December 27, 2009 compared to the thirteen weeks ended
December 28, 2008. Consolidated sales in the first quarter of fiscal 2010 were $923.9 million
compared to $959.3 million in the first quarter of fiscal 2009, an overall decline of $35.4
million. The sale of dairy assets affected the comparison of sales between the first quarter of
fiscal 2010 and the first quarter of fiscal 2009. The dairy accounted for $25.0 million of the
sales decline.
During the thirteen week first quarter ended December 27, 2009, the Company completed the sale of
substantially all of the assets of its dairy subsidiary to Dean Foods, Inc. and ceased all dairy
manufacturing activity. The Company recognized an after-tax gain of $4.7 million from the sale.
The Company reported net income for the thirteen week first quarter ended December 27, 2009 of $6.7
million compared to net income of $3.5 million for the thirteen week first quarter ended December
28, 2008.
Brown said; During the quarter we completed the sale of the dairy to Dean Foods, Inc. the premier
milk producer in the country. We sold the dairy for the right business reason which was to protect
the jobs of our employees at the dairy while allowing us to focus on our core business of operating
supermarkets that provide outstanding value and service to our Valued Customers.
Our economy continues to have a negative effect on the family budgets of our customers. Our
emphasis in these tough economic times is to retain customers by providing value so our customers
get the most out of their shopping dollars while providing them with a friendly and satisfying
experience on each and every one of their visits to our supermarkets.
While our quarterly like store sales declined over the previous year, our customer counts were up
over the same time last year. We remain committed to cost control as we navigate through this
national economic recovery.
Stater Bros. Holdings Inc. is the largest privately held Supermarket Chain in Southern California
and operates 167 supermarkets through its wholly owned subsidiary, Stater Bros. Markets.
For information contact: Jack H. Brown, Chairman, President and Chief Executive Officer at (909)
733-5000.
STATER BROS. MARKETS...SERVING SOUTHERN CALIFORNIA FOR OVER 74 GOLDEN YEARS
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STATER BROS. HOLDINGS INC.
Condensed Consolidated Balance Sheets
(In thousands)
Unaudited
Condensed Consolidated Balance Sheets
(In thousands)
Unaudited
09/27/09 | 12/27/09 | |||||||
Assets |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | 196,914 | $ | 242,247 | ||||
Restricted cash |
3,121 | 3,121 | ||||||
Receivables, net |
40,720 | 41,616 | ||||||
Inventories |
212,856 | 237,761 | ||||||
Assets held for sale |
83,617 | | ||||||
Other |
30,109 | 37,331 | ||||||
Total current assets |
567,337 | 562,076 | ||||||
Property and equipment, net |
671,493 | 667,608 | ||||||
Deferred debt issuance costs, net |
11,276 | 10,473 | ||||||
Other |
64,629 | 65,348 | ||||||
Total assets |
$ | 1,314,735 | $ | 1,305,505 | ||||
Liabilities and stockholders equity |
||||||||
Current liabilities |
||||||||
Accounts payable |
$ | 153,083 | $ | 157,000 | ||||
Liabilities held for sale |
5,634 | | ||||||
Accrued expenses and other liabilities |
132,931 | 121,592 | ||||||
Current portion of capital lease
obligations |
1,336 | 1,389 | ||||||
Total current liabilities |
292,984 | 279,981 | ||||||
Long-term debt |
810,000 | 810,000 | ||||||
Capital lease obligations, less current portion |
3,768 | 3,400 | ||||||
Other long-term liabilities |
144,228 | 146,658 | ||||||
Total stockholders equity |
63,755 | 65,466 | ||||||
Total liabilities and stockholders equity |
$ | 1,314,735 | $ | 1,305,505 | ||||
STATER BROS. HOLDINGS INC.
Condensed Consolidated Statements of Income
(In thousands)
Unaudited
Condensed Consolidated Statements of Income
(In thousands)
Unaudited
13 Weeks | 13 Weeks | |||||||
Ended | Ended | |||||||
12/28/08 | 12/27/09 | |||||||
Sales |
$ | 959,253 | $ | 923,864 | ||||
Gross profit |
246,862 | 238,150 | ||||||
Operating expenses: |
||||||||
Selling,
general and administrative expenses |
211,004 | 205,288 | ||||||
Gain on sale of dairy assets |
| (7,950 | ) | |||||
Depreciation and amortization |
13,360 | 12,666 | ||||||
Total operating expenses |
224,364 | 210,004 | ||||||
Operating profit |
22,498 | 28,146 | ||||||
Interest income |
205 | 59 | ||||||
Interest expense |
(17,100 | ) | (17,189 | ) | ||||
Other income (expenses), net |
149 | (11 | ) | |||||
Income before income taxes |
5,752 | 11,005 | ||||||
Income taxes |
2,211 | 4,294 | ||||||
Net income |
$ | 3,541 | $ | 6,711 | ||||