Exhibit 99.1
STATER BROS. HOLDINGS INC. ANNOUNCES SECOND QUARTER RESULTS
SALES AND NET INCOME INCREASE AT STATER BROS.
SALES AND NET INCOME INCREASE AT STATER BROS.
Colton, California. May 8, 2007; 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 25, 2007.
Sales for the thirteen week second quarter ended March 25, 2007, increased 0.27% to $866.1 million compared to $863.8 million for the thirteen weeks ended March 26, 2006. The timing of Christmas Day resulted in one less sales day in the second quarter of 2007 compared to the second quarter of fiscal 2006. Christmas Day, the only day the Company’s stores are closed, fell in second quarter fiscal 2007 and the first quarter of fiscal 2006. After taking into consideration the effect of Christmas Day, like store sales increased 1.5% for the thirteen weeks ended March 25, 2007.
Total sales for the twenty-six weeks ended March 25, 2007, increased $39.5 million or 2.28% and amounted to $1.77 billion compared to $1.73 billion for the same period in fiscal 2006. Year-to-date like store sales increased 1.45% in fiscal 2007 compared to the same period in fiscal 2006.
The Company reported net income for the thirteen week second quarter ended March 25, 2007 of $13.5 million compared to net income of $6.2 million for the thirteen weeks ended March 26, 2006. Net income for the fiscal year-to-date periods amounted to $23.4 million in 2007 and $9.5 million in 2006.
Brown said; “We were pleased with our operating results for the quarter and the first twenty-six weeks of our fiscal year. While we look forward to the challenges of a changing marketplace, all of our “Valued Customers” will continue to have the Stater Bros. Family’s commitment to provide a friendly and satisfying shopping experience on each and every one of their visits to our Supermarkets and our commitment to being the low price leader.”
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. Stater Bros. Markets also owns and operates Santee Dairies, manufacturer of quality “Heartland Farms” dairy products.
For information contact: Jack H. Brown, Chairman, President and Chief Executive Officer at (909) 783-5000.
STATER BROS. MARKETS...SERVING SOUTHERN CALIFORNIA FOR 70 GOLDEN YEARS
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STATER BROS. HOLDINGS INC.
Condensed Consolidated Statements of Income
(In thousands)
Unaudited
Condensed Consolidated Statements of Income
(In thousands)
Unaudited
13 Weeks Ended | 26 Weeks Ended | |||||||||||||||
03/26/06 | 03/25/07 | 03/26/06 | 03/25/07 | |||||||||||||
Sales | $ | 863,751 | $ | 866,062 | $ | 1,730,917 | $ | 1,770,416 | ||||||||
Gross profit | 232,512 | 249,444 | 459,227 | 491,334 | ||||||||||||
Operating expenses | ||||||||||||||||
Selling, general and administrative expenses | 198,011 | 203,685 | 396,776 | 405,486 | ||||||||||||
Depreciation and amortization | 11,059 | 12,085 | 21,417 | 23,969 | ||||||||||||
Total operating expenses | 209,070 | 215,770 | 418,193 | 429,455 | ||||||||||||
Operating profit | 23,442 | 33,674 | 41,034 | 61,879 | ||||||||||||
Interest income | 2,378 | 2,719 | 4,888 | 5,545 | ||||||||||||
Interest expense | (14,964 | ) | (13,749 | ) | (29,540 | ) | (28,034 | ) | ||||||||
Other income (expenses), net | (617 | ) | 3 | (693 | ) | (168 | ) | |||||||||
Income before income taxes | 10,239 | 22,647 | 15,689 | 39,222 | ||||||||||||
Income taxes | 4,063 | 9,187 | 6,181 | 15,860 | ||||||||||||
Net income | $ | 6,176 | $ | 13,460 | $ | 9,508 | $ | 23,362 | ||||||||
STATER BROS. HOLDINGS INC.
Condensed Consolidated Balance Sheets
(In thousands)
Unaudited
Condensed Consolidated Balance Sheets
(In thousands)
Unaudited
9/24/06 | 03/25/07 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash | $ | 198,545 | $ | 228,169 | ||||
Restricted cash | 24,121 | 8,121 | ||||||
Short-term investments | 26,849 | — | ||||||
Receivables, net | 39,173 | 40,718 | ||||||
Inventories | 196,031 | 194,688 | ||||||
Other | 30,122 | 31,278 | ||||||
Total current assets | 514,841 | 502,974 | ||||||
Property and equipment, net | 497,073 | 529,046 | ||||||
Deferred debt issuance costs, net | 15,972 | 14,444 | ||||||
Other assets | 30,206 | 40,875 | ||||||
Total assets | $ | 1,058,092 | $ | 1,087,339 | ||||
Liabilities and stockholder’s equity (deficit) | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 155,827 | $ | 153,431 | ||||
Accrued expenses and other liabilities | 124,680 | 125,225 | ||||||
Current portion of capital lease obligations | 1,054 | 940 | ||||||
Total current liabilities | 281,561 | 279,596 | ||||||
Long-term debt | 700,000 | 700,000 | ||||||
Capital lease obligations, less current portion | 7,294 | 6,807 | ||||||
Other long-term liabilities | 80,316 | 88,653 | ||||||
Total stockholder’s equity (deficit) | (11,079 | ) | 12,283 | |||||
Total liabilities and stockholder’s equity (deficit) | $ | 1,058,092 | $ | 1,087,339 | ||||