Exhibit 99.4
 | 21700 Barton Road P.O. Box 150 Colton, California 92324 | 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
Monday, May 12, 2003
STATER BROS. HOLDINGS INC. ANNOUNCES RECORD SALES
SECOND QUARTER RESULTS RELEASED
Colton, California. May 12, 2003; 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 30, 2003.
Sales for the thirteen week second quarter ended March 30, 2003 increased 3.5% to $677.2 million compared to $654.2 million for the thirteen weeks ended March 31, 2002. Total sales for the twenty-six weeks ended March 30, 2003, increased 3.2% and amounted to $1.359 billion compared to $1.317 billion for the same period in the prior year. Like store sales increased 3.0% and 2.6% for the thirteen week and twenty-six week periods ended March 30, 2003, respectively.
Operating profit for the thirteen week second quarter of 2003 amounted to $19.4 million compared to $19.5 million for the second quarter of 2002. Operating profit for the fiscal year to date of 2003 amounted to $36.8 million compared to $38.2 million for the like period in fiscal 2002.
The Company reported net income for the thirteen week second quarter ended March 30, 2003 of $3.8 million compared to $4.3 million for the thirteen weeks ended March 31, 2002. Net income for the fiscal year to date periods amounted to $6.8 million in 2003 and $8.2 million in 2002.
Operating cash flow (EBITDA) is defined as earnings before interest expense, income taxes and depreciation and amortization. The Company has presented EBITDA information as it is relevant to certain investors and analysts as a measure of a company’s ability to service debt. EBITDA is not a measure of financial performance under generally accepted accounting principles and it should not be used as an alternative to, or be construed as more meaningful than, operating profit or cash flows as an indicator of the Company’s operating performance. EBITDA amounted to $27.9 million in the second quarter of fiscal 2003 and compares to $28.2 million for the like period of last year. EBITDA for the twenty-six week comparable periods were $54.2 million in fiscal 2003 and $55.1 million in fiscal 2002. The following table reconciles EBITDA to net income.
| Q2 2003 | Q2 2002 | YTD 2003 | YTD 2002 | |||||||||||||
| (in 000's) | ||||||||||||||||
| Net Income | $ | 3,831 | $ | 4,294 | $ | 6,759 | $ | 8,226 | ||||||||
| Income Taxes | 2,531 | 2,983 | 4,404 | 5,716 | ||||||||||||
| Interest Expense | 13,301 | 13,201 | 26,559 | 25,997 | ||||||||||||
| Depreciation and Amortization | 8,285 | 7,680 | 16,449 | 15,184 | ||||||||||||
| EBITDA | $ | 27,948 | $ | 28,158 | $ | 54,171 | $ | 55,123 | ||||||||
Brown said; “Our continued steady performance reflects the abilities of our management team and the members of our Stater Bros. Family to stay focused on serving our “Valued Customers” on each and every shopping trip.”
Stater Bros. Holdings Inc. is the largest privately held Supermarket Chain in Southern California and operates 156 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 operates 156 Supermarket locations, with 47 in San Bernardino County, 40 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 14,000 members of the Stater Bros. “Family” of Employees. Stater Bros. is the largest private employer in the Inland Empire of Southern California, which is one of the fastest growing areas in the United States. Headquartered in Colton, California, Stater Bros. has been serving Southern California customers since 1936. In the spring of 2003, Stater Bros. will open its 157th Supermarket in Corona, California.
STATER BROS. MARKETS...SERVING SOUTHERN CALIFORNIA FOR 66 GOLDEN YEARS
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STATER BROS. HOLDINGS INC.
Condensed Balance Sheets
(In thousands)
Unaudited
| 9/29/2002 | 03/30/03 | |||||||||
| Assets | ||||||||||
| Current Assets | ||||||||||
| Cash and cash equivalents | $ | 81,043 | $ | 98,874 | ||||||
| Receivables | 33,561 | 24,563 | ||||||||
| Inventories | 175,404 | 169,715 | ||||||||
| Other current assets | 23,141 | 24,706 | ||||||||
| Total current assets | 313,149 | 317,858 | ||||||||
| Investment in unconsolidated affiliate | 15,580 | 16,559 | ||||||||
| Property and equipment, net | 285,816 | 293,397 | ||||||||
| Deferred debt issuance costs, net | 13,936 | 12,211 | ||||||||
| Other long-term assets | 5,649 | 5,704 | ||||||||
| Total Assets | $ | 634,130 | $ | 645,729 | ||||||
| Liabilities and Stockholders’ Deficit | ||||||||||
| Current Liabilities | ||||||||||
| Accounts payable | $ | 104,166 | $ | 103,255 | ||||||
| Accrued expenses and other liabilities | 88,223 | 89,679 | ||||||||
| Current portion of capital lease obligations | 1,117 | 1,064 | ||||||||
| Total current liabilities | 193,506 | 193,998 | ||||||||
| Long-term debt | 458,750 | 458,750 | ||||||||
| Capital lease obligations, less current portion | 10,981 | 10,454 | ||||||||
| Other long-term liabilities | 45,014 | 49,889 | ||||||||
| Common stockholders’ deficit | (74,121 | ) | (67,362 | ) | ||||||
| Total Liabilities and Stockholders’ Deficit | $ | 634,130 | $ | 645,729 | ||||||
STATER BROS. HOLDINGS INC.
Condensed Results of Operations
(In thousands)
Unaudited
| 13 Weeks Ended | |||||||||
| 03/31/02 | 03/30/03 | ||||||||
| Sales | $ | 654,213 | $ | 677,196 | |||||
| Gross profit | 172,813 | 186,772 | |||||||
| Operating Expenses: | |||||||||
| Selling, general and administrative expenses | 145,657 | 159,072 | |||||||
| Depreciation and amortization | 7,680 | 8,285 | |||||||
| Total operating expenses | 153,337 | 167,357 | |||||||
| Operating profit | 19,476 | 19,415 | |||||||
| Interest income | 322 | 254 | |||||||
| Interest expense | (13,201 | ) | (13,301 | ) | |||||
| Equity in earnings from unconsolidated affiliate | 1,375 | 233 | |||||||
| Other, net | (695 | ) | (239 | ) | |||||
| Income before income taxes | 7,277 | 6,362 | |||||||
| Income taxes | 2,983 | 2,531 | |||||||
| Net income | $ | 4,294 | $ | 3,831 | |||||
STATER BROS. HOLDINGS INC.
Condensed Results of Operations
(In thousands)
Unaudited
| 26 Weeks Ended | |||||||||
| 03/31/02 | 03/30/03 | ||||||||
| Sales | $ | 1,316,800 | $ | 1,358,705 | |||||
| Gross profit | 348,976 | 370,388 | |||||||
| Operating Expenses: | |||||||||
| Selling, general and administrative expenses | 295,593 | 317,095 | |||||||
| Depreciation and amortization | 15,184 | 16,449 | |||||||
| Total operating expenses | 310,777 | 333,544 | |||||||
| Operating profit | 38,199 | 36,844 | |||||||
| Interest income | 1,026 | 526 | |||||||
| Interest expense | (25,997 | ) | (26,559 | ) | |||||
| Equity in earnings from unconsolidated affiliate | 2,023 | 979 | |||||||
| Other, net | (1,309 | ) | (627 | ) | |||||
| Income before income taxes | 13,942 | 11,163 | |||||||
| Income taxes | 5,716 | 4,404 | |||||||
| Net income | $ | 8,226 | $ | 6,759 | |||||