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8-K - FORM 8-K - STATER BROS HOLDINGS INCv55171e8vk.htm
Exhibit 99.1
         
(STATER BROS. MARKETS LOGO)
 

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
STATER BROS. HOLDINGS INC. ANNOUNCE FIRST QUARTER 2010 RESULTS
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 Company’s 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
                 
    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 stockholder’s 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 stockholder’s equity
    63,755       65,466  
 
           
 
               
Total liabilities and stockholder’s equity
  $ 1,314,735     $ 1,305,505  
 
           

 


 

STATER BROS. HOLDINGS INC.
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