Selected Stater Bros. Holdings Inc. Financial Data (Unaudited) | Exhibit 99.4 |
EBITDA
Stater Bros. Holdings Inc. (“Stater Bros.”) believes that EBITDA is used by Stater Bros.’ bond holders, security analysts and other interested parties to evaluate Stater Bros.’ operating results and as a measure of Stater Bros.’ ability to both service debt and to comply with certain debt covenants. EBITDA is a calculation derived from Stater Bros.’ debt covenants and is defined as earnings before interest expense, income taxes and depreciation and amortization. EBITDA is not a measure of financial performance under accounting principles generally accepted in the United States and should not be used as an alternative to, or be construed as more meaningful than, operating profit or cash flows as an indicator of Stater Bros.’ operating performance. The following table reconciles EBITDA to cash provided by operating activities which is the most closely comparable GAAP measure of liquidity:
Unaudited | ||||||||||||||||||||||||||||
Fiscal Years Ended(a) | 26 Weeks Ended | |||||||||||||||||||||||||||
Sept. 26, 1999 | Sept. 24, 2000 | Sept. 30, 2001 | Sept. 29, 2002 | Sept. 28, 2003 | March 30, 2003 | March 28, 2004 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 59,296 | $ | 15,385 | $ | 79,393 | $ | 51,168 | $ | 82,950 | $ | 43,064 | $ | 125,868 | ||||||||||||||
Net increase in operating assets and liabilities | (53,293 | ) | (4,058 | ) | (40,892 | ) | (6,471 | ) | (38,056 | ) | (20,208 | ) | (64,179 | ) | ||||||||||||||
Loss on disposal of assets | (357 | ) | (29 | ) | (258 | ) | (1,579 | ) | (1,093 | ) | (627 | ) | (734 | ) | ||||||||||||||
Change in deferred income taxes | 783 | 6,632 | (2,921 | ) | (2,750 | ) | (696 | ) | — | — | ||||||||||||||||||
Gain from litigation settlement | — | — | — | — | — | — | 22,371 | |||||||||||||||||||||
Equity in income from unconsolidated affiliate | 1,130 | 1,483 | 1,584 | 2,914 | 1,330 | 979 | 929 | |||||||||||||||||||||
Interest expense | 62,174 | 51,784 | 52,410 | 52,814 | 53,254 | 26,559 | 34,835 | |||||||||||||||||||||
Income tax expense (benefit) | (5,861 | ) | (4,596 | ) | 5,452 | 7,491 | 5,719 | 4,404 | 44,566 | |||||||||||||||||||
EBITDA | $ | 63,872 | $ | 66,601 | $ | 94,768 | $ | 103,587 | $ | 103,408 | $ | 54,171 | $ | 163,656 | ||||||||||||||
(a) | The fiscal year 2001 was a 53-week year, whereas fiscal years 1999, 2000, 2002 and 2003 were 52-week years. |