Exhibit 99.1
![]() | 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
Tuesday, August 12, 2003
STATER BROS. HOLDINGS INC. ANNOUNCES RECORD SALES
Colton, California. August 12, 2003; 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 29, 2003, including record sales volume.
Record setting sales were achieved for the thirteen week third quarter ended June 29, 2003. Sales in the current year increased 2.3% to $688.1 million compared to $672.8 million for the thirteen weeks ended June 30, 2002. Total sales for the thirty-nine weeks ended June 29, 2003, increased 2.9% and amounted to $2.047 billion compared to $1.990 billion for the same period in the prior year. Like store sales increased 1.8% and 2.4% for the thirteen week and thirty-nine week periods ended June 29, 2003, respectively.
Operating profit for the thirteen week third quarter of 2003 amounted to $14.2 million compared to $17.7 million for the third quarter of 2002. Operating profit for the fiscal year to date of 2003 amounted to $51.0 million compared to $55.9 million for the like period in fiscal 2002. Like most operators in California, the Company has been hard hit with rising utility, workers’ compensation and health care costs.
The Company reported net income for the thirteen week third quarter ended June 29, 2003 of $769,000 compared to $2.9 million for the thirteen weeks ended June 30, 2002. Net income for the fiscal year to date periods amounted to $7.5 million in 2003 and $11.1 million in 2002.
Operating cash flow (EBITDA) is defined as earnings before interest expense, income taxes and depreciation and amortization. EBITDA amounted to $23.3 million in the third quarter of fiscal 2003 and compares to $26.4 million for the like period of last year. EBITDA for the thirty-nine week comparable periods was $77.5 million in fiscal 2003 and $81.5 million in fiscal 2002. The following table reconciles EBITDA to net income.
(in 000's) | Q3 2003 | Q3 2002 | YTD 2003 | YTD 2002 | ||||||||||||
Net Income | $ | 769 | $ | 2,911 | $ | 7,528 | $ | 11,137 | ||||||||
Income Tax | 394 | 2,024 | 4,798 | 7,740 | ||||||||||||
Interest Expense | 13,339 | 13,444 | 39,898 | 39,441 | ||||||||||||
Depreciation | 8,788 | 7,976 | 25,237 | 23,160 | ||||||||||||
EBITDA | $ | 23,290 | $ | 26,355 | $ | 77,461 | $ | 81,478 |
Stater Bros. Holdings Inc. is the largest privately held Supermarket Chain in Southern California and was recently named Southern California’s Leading Supermarket Chain by readers of a “national consumer magazine” and operates 157 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 157 Supermarket locations, with 47 in San Bernardino County, 41 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.
STATER BROS. MARKETS...SERVING SOUTHERN CALIFORNIA FOR 66 GOLDEN YEARS
# # #
STATER BROS. HOLDINGS INC.
Condensed Balance Sheets
(In thousands)
Unaudited
9/29/2002 | 06/29/03 | |||||||||
Assets | ||||||||||
Current Assets | ||||||||||
Cash and cash equivalents | $ | 81,043 | $ | 118,478 | ||||||
Receivables | 33,561 | 26,579 | ||||||||
Inventories | 175,404 | 170,258 | ||||||||
Other current assets | 23,141 | 24,207 | ||||||||
Total current assets | 313,149 | 339,522 | ||||||||
Investment in unconsolidated affiliate | 15,580 | 16,776 | ||||||||
Property and equipment, net | 285,816 | 297,402 | ||||||||
Deferred debt issuance costs, net | 13,936 | 11,349 | ||||||||
Other long-term assets | 5,649 | 5,512 | ||||||||
Total Assets | $ | 634,130 | $ | 670,561 | ||||||
Liabilities and Stockholder’s Deficit | ||||||||||
Current Liabilities | ||||||||||
Accounts payable | $ | 104,166 | $ | 111,652 | ||||||
Accrued expenses and other liabilities | 88,223 | 100,437 | ||||||||
Current portion of capital lease obligations | 1,117 | 1,049 | ||||||||
Total current liabilities | 193,506 | 213,138 | ||||||||
Long-term debt | 458,750 | 458,750 | ||||||||
Capital lease obligations, less current portion | 10,981 | 10,190 | ||||||||
Other long-term liabilities | 45,014 | 55,076 | ||||||||
Common stockholder’s deficit | (74,121 | ) | (66,593 | ) | ||||||
Total Liabilities and Stockholder’s Deficit | $ | 634,130 | $ | 670,561 | ||||||
STATER BROS. HOLDINGS INC.
Condensed Results of Operations
(In thousands)
Unaudited
13 Weeks Ended | |||||||||
06/30/02 | 06/29/03 | ||||||||
Sales | $ | 672,779 | $ | 688,071 | |||||
Gross profit | 177,142 | 188,283 | |||||||
Operating Expenses: | |||||||||
Selling, general and administrative expenses | 151,459 | 165,325 | |||||||
Depreciation and amortization | 7,976 | 8,788 | |||||||
Total operating expenses | 159,435 | 174,113 | |||||||
Operating profit | 17,707 | 14,170 | |||||||
Interest income | 319 | 244 | |||||||
Interest expense | (13,444 | ) | (13,339 | ) | |||||
Equity in earnings from unconsolidated affiliate | 532 | 217 | |||||||
Other, net | (179 | ) | (129 | ) | |||||
Income before income taxes | 4,935 | 1,163 | |||||||
Income taxes | 2,024 | 394 | |||||||
Net income | $ | 2,911 | $ | 769 | |||||
STATER BROS. HOLDINGS INC.
Condensed Results of Operations
(In thousands)
Unaudited
39 Weeks Ended | |||||||||
06/30/02 | 06/29/03 | ||||||||
Sales | $ | 1,989,579 | $ | 2,046,776 | |||||
Gross profit | 526,118 | 558,671 | |||||||
Operating Expenses: | |||||||||
Selling, general and administrative expenses | 447,052 | 482,420 | |||||||
Depreciation and amortization | 23,160 | 25,237 | |||||||
Total operating expenses | 470,212 | 507,657 | |||||||
Operating profit | 55,906 | 51,014 | |||||||
Interest income | 1,345 | 770 | |||||||
Interest expense | (39,441 | ) | (39,898 | ) | |||||
Equity in earnings from unconsolidated affiliate | 2,555 | 1,196 | |||||||
Other, net | (1,488 | ) | (756 | ) | |||||
Income before income taxes | 18,877 | 12,326 | |||||||
Income taxes | 7,740 | 4,798 | |||||||
Net income | $ | 11,137 | $ | 7,528 | |||||