21700 Barton Road P.O. Box 150 Colton, California 92324 | Exhibit 99.1 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
Tuesday, August 2, 2005
For Immediate Release
Tuesday, August 2, 2005
STATER BROS. HOLDINGS ANNOUNCES THIRD QUARTER RESULTS
Colton, California. August 2, 2005; Today, Jack H. Brown, Chairman, President and Chief Executive Officer of Stater Bros. Holdings Inc. announced financial results for the thirteen week third quarter and thirty-nine week year-to-date period ended on June 26, 2005.
The results for the prior year third quarter and thirty-nine weeks were affected by the unprecedented Southern California Supermarket Industry labor dispute which had a significant impact on the Company’s results during fiscal 2004. The third quarter of 2004 was also affected by the Company’s refinancing activity.
Sales for the thirteen week third quarter ended June 26, 2005, compared to the third quarter 2004 decreased 0.89% to $840.4 million compared to $848.0 million for the thirteen weeks ended June 27, 2004. The decrease was primarily due to higher post labor dispute volume in the third quarter of fiscal 2004 and the Easter Holiday occurring during the third quarter of fiscal 2004 and in the second quarter of fiscal 2005. Total sales for the thirty-nine weeks ended June 26, 2005, decreased 11.93% and amounted to $2.522 billion compared to $2.864 billion for the same period in the fiscal 2004 which was affected by the labor dispute. Like store sales for the thirteen week period ended June 26, 2005, after the effect of the timing of Easter Holiday, decreased 1.9% over the same period in the prior year. Like store sales for the thirty-nine week period ended June 26, 2005 declined 15.2% as compared to results during last year’s prolonged labor dispute.
The Company reported net income for the thirteen week third quarter ended June 26, 2005 of $7.3 million compared to a loss of $5.9 million for the thirteen weeks ended June 27, 2004. Net income for the fiscal year-to-date periods amounted to $14.1 million in 2005 and $58.9 million in 2004 which was affected by the labor dispute. The 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 have been consolidated in the Company’s results since the settlement date of February 6, 2004.
Brown said; “It remains difficult to compare any major category on our Operating Statements between Fiscal 2004 and Fiscal 2005 due to the effects of the unprecedented labor dispute in Fiscal 2004, which affected all of the Southern California Supermarket Industry. During the quarter we began to see a more normalized market place. All of our “Valued Customers” have our commitment that we will provide a friendly and satisfying shopping experience on each and every one of their visits to our stores.”
Stater Bros. Holdings Inc. is the largest privately held Supermarket Chain in California and operates 161 supermarkets through its wholly owned subsidiary, Stater Bros. Markets. Stater Bros. Markets also owns and operates Santee Dairies, provider of Knudsen Dairy products to Southern California.
For information contact: Jack H. Brown, Chairman, President and Chief Executive Officer at (909) 783-5000.
STATER BROS. MARKETS...SERVING SOUTHERN CALIFORNIA FOR 69 GOLDEN YEARS
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STATER BROS. HOLDINGS INC.
Condensed Consolidated Statements of Operations
(In thousands)
Unaudited
Condensed Consolidated Statements of Operations
(In thousands)
Unaudited
13 Weeks Ended | 39 Weeks Ended | |||||||||||||||||||
06/27/04 | 06/26/05 | 06/27/04 | 06/26/05 | |||||||||||||||||
(as restated) | (as restated) | |||||||||||||||||||
Sales | $ | 847,984 | $ | 840,430 | $ | 2,863,955 | $ | 2,522,347 | ||||||||||||
Gross profit | 224,723 | 231,595 | 825,944 | 666,846 | ||||||||||||||||
Operating expenses | ||||||||||||||||||||
Selling, general and administrative expenses | 188,323 | 196,380 | 631,018 | 574,876 | ||||||||||||||||
Depreciation and amortization | 8,339 | 10,090 | 23,921 | 29,187 | ||||||||||||||||
Total operating expenses | 196,662 | 206,470 | 654,939 | 604,063 | ||||||||||||||||
Operating profit | 28,061 | 25,125 | 171,005 | 62,783 | ||||||||||||||||
Interest income | 157 | 1,864 | 1,005 | 4,525 | ||||||||||||||||
Interest expense | (13,103 | ) | (14,530 | ) | (39,416 | ) | (43,204 | ) | ||||||||||||
Interest expense related to debt purchase | (25,495 | ) | — | (34,017 | ) | — | ||||||||||||||
Equity in earnings from unconsolidated affiliate | — | — | 929 | — | ||||||||||||||||
Other expenses — net | (308 | ) | (282 | ) | (1,017 | ) | (581 | ) | ||||||||||||
Income (loss) before income taxes (benefit) | (10,688 | ) | 12,177 | 98,489 | 23,523 | |||||||||||||||
Income taxes (benefit) | (4,826 | ) | 4,901 | 39,614 | 9,384 | |||||||||||||||
Net income (loss) | $ | (5,862 | ) | $ | 7,276 | $ | 58,875 | $ | 14,139 | |||||||||||
STATER BROS. HOLDINGS INC.
Condensed Consolidated Balance Sheets
(In thousands)
Unaudited
Condensed Consolidated Balance Sheets
(In thousands)
Unaudited
9/26/04 | 06/26/05 | |||||||||||||||
Assets | ||||||||||||||||
Current assets | ||||||||||||||||
Cash | $ | 301,947 | $ | 253,501 | ||||||||||||
Restricted cash | 20,000 | 29,000 | ||||||||||||||
Receivables | 39,258 | 37,015 | ||||||||||||||
Inventories | 185,567 | 188,522 | ||||||||||||||
Other | 34,263 | 32,591 | ||||||||||||||
Total current assets | 581,035 | 540,629 | ||||||||||||||
Property and equipment, net | 404,856 | 448,065 | ||||||||||||||
Deferred debt issuance costs, net | 21,891 | 19,766 | ||||||||||||||
Other assets | 6,339 | 11,087 | ||||||||||||||
Total assets | $ | 1,014,121 | $ | 1,019,547 | ||||||||||||
Liabilities and stockholder’s deficit | ||||||||||||||||
Current liabilities | ||||||||||||||||
Accounts payable | $ | 142,077 | $ | 136,839 | ||||||||||||
Accrued expenses and other liabilities | 117,856 | 107,359 | ||||||||||||||
Current portion of capital lease obligations | 1,247 | 1,165 | ||||||||||||||
Total current liabilities | 261,180 | 245,363 | ||||||||||||||
Long-term debt | 700,000 | 700,000 | ||||||||||||||
Capital lease obligations, less current portion | 9,470 | 8,592 | ||||||||||||||
Other long-term liabilities | 83,112 | 91,094 | ||||||||||||||
Total stockholder’s deficit | (39,641 | ) | (25,502 | ) | ||||||||||||
Total liabilities and stockholder’s deficit | $ | 1,014,121 | $ | 1,019,547 | ||||||||||||