Attached files

file filename
8-K - FORM 8-K - STATER BROS HOLDINGS INCd8k.htm

Exhibit 99.1

LOGO

STATER BROS. HOLDINGS INC. ANNOUNCES INCREASED SALES AND

CUSTOMER COUNT INCREASES IN THE THIRD QUARTER OF 2011

SAN BERNARDINO, CALIFORNIA (August 9, 2011)- Today, Jack H. Brown, Chairman, President and Chief Executive Officer of Stater Bros. Holdings Inc. announced financial results for the thirteen week and thirty-nine week periods ended June 26, 2011.

The Company’s consolidated sales in the thirteen weeks ended June 26, 2011 were $939.0 million up $39.0 million or 4.33% from the thirteen weeks ended June 27, 2010 consolidated sales of $900.0 million.

At $2.751 billion, the Company’s supermarket sales for the thirty-nine weeks ended June 26, 2011 were up $45.6 million over the same period of fiscal 2010.

Sales for the thirty-nine weeks were affected by increased customer count of approximately 1.4 million customers.

Like store sales increased 4.33% or $39.0 million for the thirteen weeks ended June 26, 2011 compared to the thirteen weeks ended June 27, 2010. Like store sales increased 1.68% or $45.6 million for the thirty-nine weeks of fiscal 2011 compared to the same period of the prior year.

The Company reported net income for the thirteen week third quarter ended June 26, 2011 of $7.1 million compared to net income of $6.0 million for the thirteen week third quarter ended June 27, 2010. Net income for the thirty-nine week period of fiscal 2011 was $17.1 million compared to $18.7 million for the thirty-nine week period of fiscal 2010. Fiscal 2010 year-to-date net income included an after-tax gain of $5.6 million from the sale of the Company’s dairy assets.

Brown said, “We are pleased with our like-store-sales increase for the quarter and for the year. Our customer count has increased approximately 1.4 million in fiscal 2011 compared to fiscal 2010 and is due to the loyalty of our customers, many of whose families we have served for over three generations.

Our sales and customer count increases indicate that our valued customers appreciate our strategy of ‘sharing their pain’ by holding our prices as low as we can to help them through these tough economic times.

Our debt refinancing in the first part of fiscal 2011, which reduced our overall debt load and reduced the interest rate on our remaining debt, has been very helpful in allowing us to sacrifice margin in the short-term in order to retain our valued customers in the long-term.”

Stater Bros. is the largest privately owned Supermarket Chain in Southern California and the largest private employer in both San Bernardino County and Riverside County, with annual sales in 2010 of $3.6 billion. The Company currently operates 167 Supermarkets, and there are over 18,000 members of the Stater Bros. Supermarket Family.

STATER BROS ... PROUDLY SERVING SOUTHERN CALIFORNIA FAMILIES FOR 75 YEARS

# # #

 

1


STATER BROS. HOLDINGS INC.

Condensed Consolidated Balance Sheets

(In thousands)

Unaudited

 

     09/26/10      06/26/11  

Assets

     

Current assets

     

Cash and cash equivalents

   $ 325,005       $ 176,909   

Restricted cash

     3,121         3,121   

Receivables, net

     35,614         35,243   

Inventories

     203,702         244,674   

Other

     56,107         46,279   
  

 

 

    

 

 

 

Total current assets

     623,549         506,226   

Property and equipment, net

     644,064         633,292   

Deferred debt issuance costs, net

     8,074         11,194   

Other

     47,100         49,465   
  

 

 

    

 

 

 

Total assets

   $ 1,322,787       $ 1,200,177   
  

 

 

    

 

 

 

Liabilities and stockholder's equity

     

Current liabilities

     

Accounts payable

   $ 135,642       $ 145,578   

Accrued expenses and other liabilities

     147,972         132,647   

Current portion of long-term debt

     133,812         8,594   
  

 

 

    

 

 

 

Total current liabilities

     417,426         286,819   

Capital lease obligations, less current portion

     2,206         1,276   

Long-term debt, less current portion

     677,750         675,938   

Other long-term liabilities

     152,272         160,455   

Total stockholder's equity

     73,133         75,689   
  

 

 

    

 

 

 

Total liabilities and stockholder's equity

   $ 1,322,787       $ 1,200,177   
  

 

 

    

 

 

 

 

2


STATER BROS. HOLDINGS INC.

Condensed Consolidated Statements of Income

(In thousands)

Unaudited

 

     13 Weeks
Ended
06/27/10
    13 Weeks
Ended
06/26/11
    39 Weeks
Ended
06/27/10
    39 Weeks
Ended
06/26/11
 

Sales

   $ 900,044      $ 939,026      $ 2,709,445      $ 2,751,460   

Gross profit

     245,657        251,316        720,252        735,226   

Operating expenses:

        

Selling, general and administrative expenses

     205,564        216,040        608,870        625,517   

Gain on sale of dairy assets

     —          —          (9,396     —     

Depreciation and amortization

     12,619        11,831        38,073        36,346   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     218,183        227,871        637,547        661,863   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit

     27,474        23,445        82,705        73,363   

Interest income

     27        213        112        688   

Interest expense

     (16,983     (11,827     (51,546     (45,437

Other income (expenses), net

     17        183        22        93   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     10,535        12,014        31,293        28,707   

Income taxes

     4,553        4,956        12,633        11,611   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 5,982      $ 7,058      $ 18,660      $ 17,096   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

3