21700 Barton Road P.O. Box 150 Colton, California 92324 | Exhibit 99.4 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
Wednesday, May 12, 2004
STATER BROS. HOLDINGS INC. ANNOUNCES RECORD SALES AND
EARNINGS FOR SECOND QUARTER RESULTS
Colton, California. May 12, 2004; 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 28, 2004.
Sales for the thirteen week second quarter ended March 28, 2004 increased 46.11% to $989.4 million compared to $677.2 million for the thirteen weeks ended March 30, 2003. Total sales for the twenty-six weeks ended March 28, 2004, increased 48.37% and amounted to $2.016 billion compared to $1.359 billion for the same period in the prior year. Like store sales increased 42.23% and 45.78% for the thirteen week and twenty-six week periods ended March 28, 2004, respectively.
The Company reported net income for the thirteen week second quarter ended March 28, 2004 of $30.3 million compared to $3.8 million for the thirteen weeks ended March 30, 2003. Net income for the fiscal year-to-date periods amounted to $64.9 million in 2004 and $6.8 million in 2003. The quarter and year-to-date results for 2004 include a $13.3 million after tax gain from litigation settlement. The settlement transferred the remaining 50% ownership interest in Santee Dairies, Inc. to the Company. Santee’s results after the settlement date, February 6, 2004, are consolidated in the Company’s results.
Brown said; “Our quarter and year-to-date results reflect the dedication and tremendous efforts by the Stater Bros. Family members during the recent labor dispute in the Southern California grocery market. The Company is making every effort to retain as many of our new “Valued Customers” as possible. We remain committed to providing a friendly and satisfying shopping experience to all our “Valued Customers” on every one of their visits to our supermarkets. Our financial performance was made possible by our Stater Bros. Family members’ outstanding commitment and dedication to stay focused on our “Valued Customers” and their needs.”
Stater Bros. Holdings Inc. is the largest privately held Supermarket Chain in Southern California and operates 158 supermarkets through its wholly owned subsidiary, Stater Bros. Markets. Stater Bros. Markets also owns and operates Santee Dairies.
For information contact: Jack H. Brown, Chairman, President and Chief Executive Officer at (909) 783-5000.
Stater Bros. Markets currently operates 158 Full Service Supermarket locations, with 47 in San Bernardino County, 42 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 14,500 members of the Stater Bros. “Family” of Employees. Headquartered in Colton, California, Stater Bros. has been serving Southern California customers since 1936. Stater Bros. has announced plans to build new Full Service Supermarkets in the Southern California communities of Adelanto, Corona (Hidden Valley is scheduled to open in the Summer of 2004), Beaumont, Wildomar (Bear Creek), and Fontana.
STATER BROS. MARKETS...SERVING SOUTHERN CALIFORNIA FOR 67 YEARS
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STATER BROS. HOLDINGS INC.
Condensed Results of Operations
(In thousands)
Unaudited
13 Weeks Ended | 26 Weeks Ended | |||||||||||||||
03/30/03 | 03/28/04 | 03/30/03 | 03/28/04 | |||||||||||||
Sales | $ | 677,196 | $ | 989,418 | $ | 1,358,705 | $ | 2,015,971 | ||||||||
Gross profit | 188,058 | 296,339 | 372,833 | 601,221 | ||||||||||||
Operating Expenses: | ||||||||||||||||
Selling, general and administrative expenses | 162,226 | 215,886 | 323,244 | 442,780 | ||||||||||||
Depreciation and amortization | 6,417 | 7,760 | 12,745 | 15,186 | ||||||||||||
Total operating expenses | 168,643 | 223,646 | 335,989 | 457,966 | ||||||||||||
Operating profit | 19,415 | 72,693 | 36,844 | 143,255 | ||||||||||||
Interest income | 254 | 464 | 526 | 848 | ||||||||||||
Interest expense | (13,301 | ) | (21,659 | ) | (26,559 | ) | (34,835 | ) | ||||||||
Equity in earnings from unconsolidated affiliate | 233 | 303 | 979 | 929 | ||||||||||||
Other, net | (239 | ) | (256 | ) | (627 | ) | (709 | ) | ||||||||
Income before income taxes | 6,362 | 51,545 | 11,163 | 109,488 | ||||||||||||
Income taxes | 2,531 | 21,266 | 4,404 | 44,566 | ||||||||||||
Net income | $ | 3,831 | $ | 30,279 | $ | 6,759 | $ | 64,922 | ||||||||
STATER BROS. HOLDINGS INC.
Condensed Balance Sheets
(In thousands)
Unaudited
9/28/03 | 03/28/04 | |||||||
Assets | ||||||||
Current Assets Cash | $ | 111,152 | $ | 148,735 | ||||
Restricted Cash | — | 20,000 | ||||||
Receivables | 27,571 | 27,691 | ||||||
Inventories | 172,267 | 196,400 | ||||||
Other | 21,755 | 25,364 | ||||||
Total current assets | 332,745 | 418,190 | ||||||
Investment in unconsolidated affiliate | 16,910 | — | ||||||
Property, plant, & equipment, net | 302,145 | 408,055 | ||||||
Deferred debt issue costs, net | 10,486 | 8,762 | ||||||
Other | 5,540 | 6,425 | ||||||
Total Assets | $ | 667,826 | $ | 841,432 | ||||
Liabilities and Stockholder’s Equity (Deficit) | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 112,458 | $ | 137,407 | ||||
Accrued expenses and other liabilities | 94,714 | 139,934 | ||||||
Current portion of long-term debt and capital lease obligations | 1,056 | 1,267 | ||||||
Total current liabilities | 208,228 | 278,608 | ||||||
Long-term debt | 458,750 | 458,750 | ||||||
Capital lease obligations, less current portion | 9,926 | 9,909 | ||||||
Other long-term liabilities | 54,916 | 93,237 | ||||||
Common stockholder’s equity (deficit) | (63,994 | ) | 928 | |||||
Total Liabilities and Stockholder’s Equity (Deficit) | $ | 667,826 | $ | 841,432 | ||||