Exhibit 99.1
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Contact:
Phil Smith
Stater Bros. Holdings Inc.
(909)783-5287
Phil Smith
Stater Bros. Holdings Inc.
(909)783-5287
PRESS RELEASE
For Immediate Release
Tuesday, December 20, 2005
For Immediate Release
Tuesday, December 20, 2005
STATER BROS. HOLDINGS ANNOUNCES SALES AND EARNINGS
Colton, California. December 20, 2005: Today, Jack H. Brown, Chairman, President and Chief Executive Officer of Stater Bros. Holdings Inc. announced sales and earnings for the fifty-two week fiscal year ended September 25, 2005.
Prior year results were materially affected in a positive manner by the unprecedented Southern California Supermarket Industry labor dispute. The effect of this event needs to be considered when comparing the current year to the prior year results.
Sales for fiscal 2005 were $3.4 billion, a decrease of 9.0% when compared to sales of $3.7 billion for the 2004 fiscal year. Sales for the fourth quarter of fiscal 2005 ended September 25, 2005 were $849.9 million, an increase of 1.1% when compared to $840.9 million for the fiscal fourth quarter of 2004 ended September 26, 2004. Like store sales for fiscal 2005 decreased 12.1% compared to fiscal 2004. For the fourth quarter of fiscal 2005, like stores sales decreased 1.0% compared to the fourth quarter of fiscal 2004. A comparison of sales between fiscal 2005 and fiscal 2004 is difficult due to the effect of the labor dispute in fiscal 2004. Like store sales comparing fiscal 2005 with fiscal 2003, the fiscal year prior to the labor dispute, increased 15.2% or an average annual like store sales growth of 7.6% over the two year period.
The Company reported net income of $26.2 million for the fiscal year 2005 compared to $71.4 million in fiscal year 2004. The results for the fourth quarters of fiscal 2005 and fiscal 2004, reflected net income of $12.1 million and $12.6 million, respectively.
The results of operations for fiscal 2004 were favorably impacted by the Southern California Supermarket Industry labor dispute. The impact of the labor dispute on the Company was unprecedented and is not expected to be repeated in the future.
Brown said, “The Stater Bros. family members continue to provide a friendly and satisfying shopping experience to our “Valued Customers” at a reasonable price for the items they want and need. We are pleased with the results but will continue to focus on customer service and bring value to our customers, the core of the Stater Bros. concept.”
Stater Bros. Holdings Inc. is the largest privately held Supermarket Chain in Southern California and operates 162 supermarkets through its wholly-owned subsidiary, Stater Bros. Markets.
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 Balance Sheets
(In thousands)
Unaudited
Condensed Balance Sheets
(In thousands)
Unaudited
09/26/04 | 09/25/05 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash | $ | 301,947 | $ | 263,397 | ||||
Restricted cash | 20,000 | 29,000 | ||||||
Receivables | 39,258 | 45,006 | ||||||
Inventories | 185,567 | 185,302 | ||||||
Other | 34,263 | 31,122 | ||||||
Total current assets | 581,035 | 553,827 | ||||||
Property and equipment, net | 404,856 | 467,937 | ||||||
Deferred debt issuance costs, net | 21,891 | 19,011 | ||||||
Other | 6,339 | 14,594 | ||||||
Total assets | $ | 1,014,121 | $ | 1,055,369 | ||||
Liabilities and stockholder’s deficit | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 144,612 | $ | 144,298 | ||||
Accrued expenses and other liabilities | 115,321 | 131,185 | ||||||
Current portion of capital lease obligations | 1,247 | 1,190 | ||||||
Total current liabilities | 261,180 | 276,673 | ||||||
Long-term debt | 700,000 | 700,000 | ||||||
Capital lease obligations, less current portion | 9,470 | 8,292 | ||||||
Other long-term liabilities | 83,112 | 83,799 | ||||||
Common stockholder’s deficit | (39,641 | ) | (13,395 | ) | ||||
Total liabilities and stockholder’s deficit | $ | 1,014,121 | $ | 1,055,369 | ||||
STATER BROS. HOLDINGS INC.
Condensed Results of Operations
(In thousands)
Unaudited
Condensed Results of Operations
(In thousands)
Unaudited
13 Weeks | 13 Weeks | 52 Weeks | 52 Weeks | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
09/26/04 | 09/25/05 | 09/26/04 | 09/25/05 | |||||||||||||
Sales | $ | 840,928 | $ | 849,896 | $ | 3,704,882 | $ | 3,372,243 | ||||||||
Gross profits | 226,126 | 237,262 | 1,052,070 | 904,108 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative expenses | 189,310 | 198,009 | 820,329 | 772,885 | ||||||||||||
Depreciation and amortization | 9,364 | 10,388 | 33,284 | 39,575 | ||||||||||||
Total operating expenses | 198,674 | 208,397 | 853,613 | 812,460 | ||||||||||||
Operating profit | 27,452 | 28,865 | 198,457 | 91,648 | ||||||||||||
Interest income | 1,192 | 2,291 | 2,198 | 6,816 | ||||||||||||
Interest expense | (14,534 | ) | (13,938 | ) | (53,951 | ) | (57,142 | ) | ||||||||
Interest expense related to debt purchase | (1,630 | ) | — | (35,647 | ) | — | ||||||||||
Equity in income from unconsolidated affiliate | — | — | 929 | — | ||||||||||||
Other expenses, net | (326 | ) | (833 | ) | (1,343 | ) | (1,414 | ) | ||||||||
Income before income taxes (benefit) | 12,154 | 16,385 | 110,643 | 39,908 | ||||||||||||
Income taxes (benefit) | (412 | ) | 4,278 | 39,202 | 13,662 | |||||||||||
Net income | $ | 12,566 | $ | 12,107 | $ | 71,441 | $ | 26,246 | ||||||||