Exhibit 99.1
Selected Stater Bros. Holdings Inc. Financial Data
The following table shows selected consolidated financial data and other information. The annual data for 2002, 2003, 2004, 2005, and 2006 are derived from Stater Bros.’ audited consolidated financial statements and the related notes which are included in Stater Bros.’ Amended Annual Report filed on Form 10-K/A for the fiscal year ended September 24, 2006, as filed with the Securities and Exchange Commission (the “SEC”) on March 30, 2007, which are incorporated herein by reference. The information for the 13-week periods is derived from unaudited consolidated financial statements contained in Stater Bros.’ Amended Quarterly Report filed on Form 10-Q/A for the fiscal quarter ended December 24, 2006, as filed with the SEC on March 30, 2007, which are incorporated herein by reference. In the opinion of management, such unaudited consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of these data. The results for the 13-week periods ended December 25, 2005 and December 24, 2006 are not necessarily indicative of the results for a full year or for any future period. The information included in “Other Operating and Financial Data” and “Store Data” is unaudited.
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| | | | | | | | | | | | | | | | | Unaudited | |
| Fiscal Years Ended | | | 13-Week Period Ended | |
| Sept. 29, 2002 | | | Sept. 28, 2003 | | | Sept. 26, 2004 | | | Sept. 25, 2005 | | | Sept. 24, 2006 | | | Dec. 25, 2005 | | | Dec. 24, 2006 | |
| (in thousands of dollars except per share and store data) | |
Statement of Earnings Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sales | | $ | 2,666,346 | | | $ | 2,753,774 | | | $ | 3,705,209 | | | $ | 3,372,844 | | | $ | 3,508,794 | | | $ | 876,166 | | | $ | 904,354 | |
Cost of goods sold | | | 1,957,526 | | | | 1,999,361 | | | | 2,653,139 | | | | 2,468,736 | | | | 2,578,435 | | | | 640,451 | | | | 662,464 | |
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Gross profit | | | 708,820 | | | | 754,413 | | | | 1,052,070 | | | | 904,108 | | | | 930,359 | | | | 226,715 | | | | 241,890 | |
Selling, general and administrative expenses | | | 615,317 | | | | 659,547 | | | | 820,329 | | | | 772,885 | | | | 790,756 | | | | 198,765 | | | | 201,801 | |
Depreciation and amortization | | | 25,052 | | | | 27,660 | | | | 33,284 | | | | 39,575 | | | | 46,642 | | | | 10,358 | | | | 11,884 | |
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Total operating expenses | | | 640,369 | | | | 687,207 | | | | 853,613 | | | | 812,460 | | | | 837,398 | | | | 209,123 | | | | 213,685 | |
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Operating profit | | | 68,451 | | | | 67,206 | | | | 198,457 | | | | 91,648 | | | | 92,961 | | | | 17,592 | | | | 28,205 | |
Interest and other income (expense) | | | 142 | | | | (44 | ) | | | 855 | | | | 5,402 | | | | 8,288 | | | | 2,434 | | | | 2,655 | |
Interest expense | | | (52,814 | ) | | | (53,254 | ) | | | (53,951 | ) | | | (57,142 | ) | | | (57,238 | ) | | | (14,576 | ) | | | (14,285 | ) |
Interest expense related to debt purchase | | | — | | | | — | | | | (35,647 | ) | | | — | | | | — | | | | — | | | | — | |
Equity in income from unconsolidated affiliate | | | 2,914 | | | | 1,330 | | | | 929 | | | | — | | | | — | | | | — | | | | — | |
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Income before income taxes | | | 18,693 | | | | 15,238 | | | | 110,643 | | | | 39,908 | | | | 44,011 | | | | 5,450 | | | | 16,575 | |
Income taxes | | | 7,252 | | | | 5,471 | | | | 39,202 | | | | 13,662 | | | | 17,945 | | | | 2,118 | | | | 6,673 | |
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Net income | | $ | 11,441 | | | $ | 9,767 | | | $ | 71,441 | | | $ | 26,246 | | | $ | 26,066 | | | $ | 3,332 | | | $ | 9,902 | |
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Earnings per common share | | $ | 272.63 | | | $ | 255.01 | | | $ | 1,865.25 | | | $ | 685.26 | | | $ | 697.21 | | | $ | 87.00 | | | $ | 268.38 | |
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Balance Sheet Data (end of period): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Working capital | | $ | 119,643 | | | $ | 124,517 | | | $ | 319,855 | | | $ | 277,154 | | | $ | 233,280 | | | $ | 274,691 | | | $ | 232,586 | |
Total assets | | | 630,921 | | | | 663,836 | | | | 1,014,121 | | | | 1,055,369 | | | | 1,058,092 | | | | 1,048,367 | | | | 1,057,646 | |
Long-term notes | | | 458,750 | | | | 458,750 | | | | 700,000 | | | | 700,000 | | | | 700,000 | | | | 700,000 | | | | 700,000 | |
Long-term capitalized lease obligations | | | 10,981 | | | | 9,926 | | | | 9,470 | | | | 8,292 | | | | 7,294 | | | | 7,972 | | | | 7,056 | |
Other long-term liabilities | | | 43,533 | | | | 53,014 | | | | 83,112 | | | | 83,799 | | | | 80,316 | | | | 85,187 | | | | 83,549 | |
Common stockholder’s deficit | | | (75,849 | ) | | | (66,082 | ) | | | (39,641 | ) | | | (13,395 | ) | | | (11,079 | ) | | | (10,063 | ) | | | (1,177 | ) |
Dividends paid per share, Class A Common Stock | | $ | 117.49 | | | $ | — | | | $ | 1,174.90 | | | $ | — | | | $ | 135.52 | | | $ | — | | | $ | — | |
Cash Flow Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash provided by (used in) operating activities | | | 51,168 | | | | 82,950 | | | | 133,125 | | | | 83,565 | | | | 89,130 | | | | (21,134 | ) | | | 24,742 | |
Cash provided by (used in) financing activities | | | (31,218 | ) | | | (1,116 | ) | | | 119,481 | | | | (1,235 | ) | | | (24,884 | ) | | | (284 | ) | | | (320 | ) |
Cash used in investing activities | | | (40,543 | ) | | | (51,725 | ) | | | (61,811 | ) | | | (120,880 | ) | | | (129,098 | ) | | | (22,419 | ) | | | (1,873 | ) |
Other Operating and Financial Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sales increases (decreases): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total sales | | | 3.6 | % | | | 3.3 | % | | | 34.6 | % | | | (9.0 | )% | | | 4.0 | % | | | 3.33 | % | | | 4.27 | % |
Like stores(1) | | | 5.3 | % | | | 2.8 | % | | | 30.3 | % | | | (12.1 | )% | | | 1.5 | % | | | 0.3 | % | | | 1.4 | % |
EBITDA(2) | | $ | 103,752 | | | $ | 103,581 | | | $ | 243,876 | | | $ | 148,805 | | | $ | 159,819 | | | $ | 33,336 | | | $ | 45,712 | |
Operating profit | | $ | 68,451 | | | $ | 67,206 | | | $ | 198,457 | | | $ | 91,648 | | | $ | 92,961 | | | $ | 17,592 | | | $ | 28,205 | |
Ratio of earnings to fixed charges(3) | | | 1.24x | | | | 1.21x | | | | 1.97x | | | | 1.47x | | | | 1.47x | | | | 1.25x | | | | 1.59x | |
Gross profit, as a percentage of sales | | | 26.58 | % | | | 27.40 | % | | | 28.40 | % | | | 26.81 | % | | | 26.52 | % | | | 26.15 | % | | | 26.76 | % |
Selling, general and administrative expenses, as a percentage of sales | | | 23.08 | % | | | 23.96 | % | | | 22.14 | % | | | 22.92 | % | | | 22.54 | % | | | 22.93 | % | | | 22.32 | % |
Store Data(4): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of stores (at end of period) | | | 156 | | | | 157 | | | | 158 | | | | 161 | | | | 162 | | | | 162 | | | | 162 | |
Average sales per store (000s) | | $ | 17,092 | | | $ | 17,619 | | | $ | 23,014 | | | $ | 20,404 | | | $ | 20,937 | | | $ | 5,185 | | | $ | 5,404 | |
Average store size: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total square feet | | | 33,083 | | | | 33,111 | | | | 33,206 | | | | 33,474 | | | | 33,778 | | | | 33,654 | | | | 33,973 | |
Selling square feet | | | 23,675 | | | | 23,693 | | | | 23,746 | | | | 23,872 | | | | 24,028 | | | | 23,980 | | | | 24,141 | |
Total square feet (at end of period) (000s) | | | 5,161 | | | | 5,205 | | | | 5,267 | | | | 5,415 | | | | 5,491 | | | | 5,459 | | | | 5,512 | |
Total selling square feet (at end of period) (000s) | | | 3,693 | | | | 3,724 | | | | 3,764 | | | | 3,860 | | | | 3,904 | | | | 3,888 | | | | 3,914 | |
Sales per average square foot | | $ | 517 | | | $ | 532 | | | $ | 693 | | | $ | 610 | | | $ | 620 | | | $ | 154 | | | $ | 159 | |
Sales per average selling square foot | | $ | 722 | | | $ | 744 | | | $ | 969 | | | $ | 855 | | | $ | 871 | | | $ | 216 | | | $ | 224 | |
(footnotes on following page)
(1) | Like store sales are calculated by comparing year-to-year sales for stores that are open in both years. For stores that were not open for the entire previous year, only the current year’s weekly sales that correspond to the weeks the store was open in the previous year are used. For stores that were closed during the year, only the prior year’s weekly sales that correspond to the weeks the store was open in the current year are used. |
(2) | EBITDA is included here as Stater Bros. believes that it is used by Stater Bros.’ bondholders, securities 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, depreciation and amortization. EBITDA is not a measure of financial performance under generally accepted accounting principles (“GAAP”) 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: |
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| | Unaudited | |
| | Fiscal Years Ended | | | 13-Week Period Ended | |
| | Sept. 29, 2002 | | | Sept. 28, 2003 | | | Sept. 26, 2004 | | | Sept. 25, 2005 | | | Sept. 24, 2006 | | | Dec. 25, 2005 | | | Dec. 24, 2006 | |
| | (in thousands of dollars) | |
Net cash provided by (used in) operating activities | | $ | 51,168 | | | $ | 82,950 | | | $ | 133,125 | | | $ | 83,565 | | | $ | 89,130 | | | $ | (21,134 | ) | | $ | 24,742 | |
Net increase (decrease) in operating assets and liabilities | | | (2,856 | ) | | | (34,433 | ) | | | (72,026 | ) | | | (5,482 | ) | | | (1,973 | ) | | | 40,420 | | | | (464 | ) |
Amortization of debt issuance costs | | | (3,450 | ) | | | (3,450 | ) | | | (11,318 | ) | | | (3,042 | ) | | | (3,038 | ) | | | (761 | ) | | | (761 | ) |
Loss on disposal of assets | | | (1,579 | ) | | | (1,093 | ) | | | (1,488 | ) | | | (1,594 | ) | | | (2,176 | ) | | | (116 | ) | | | (215 | ) |
Premiums, fees and make-whole payments related to debt purchase | | | — | | | | — | | | | 26,519 | | | | — | | | | — | | | | — | | | | — | |
Change in deferred income taxes | | | (2,511 | ) | | | (448 | ) | | | 17,064 | | | | 4,554 | | | | 2,693 | | | | (1,767 | ) | | | 1,452 | |
Gain from litigation settlement | | | — | | | | — | | | | 22,371 | | | | — | | | | — | | | | — | | | | — | |
Equity in income from unconsolidated affiliate | | | 2,914 | | | | 1,330 | | | | 929 | | | | — | | | | — | | | | — | | | | — | |
Interest expense | | | 52,814 | | | | 53,254 | | | | 89,598 | | | | 57,142 | | | | 57,238 | | | | 14,576 | | | | 14,285 | |
Income tax expense | | | 7,252 | | | | 5,471 | | | | 39,202 | | | | 13,662 | | | | 17,945 | | | | 2,118 | | | | 6,673 | |
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EBITDA | | $ | 103,752 | | | $ | 103,581 | | | $ | 243,976 | | | $ | 148,805 | | | $ | 159,819 | | | $ | 33,336 | | | $ | 45,712 | |
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(3) | For the purpose of determining the ratio of earnings to fixed charges, earnings consist of income before income taxes and amortization of previously capitalized interest. Fixed charges consist of interest expense (whether expensed or capitalized), amortization of debt issuance costs, and such portion of rental expense as can be deemed by management to be representative of the interest factor in the particular case. For fiscal year 2004, included in earnings and fixed charges is Stater Bros.’ 50% share of fixed charges and earnings of Santee through February 6, 2004. Santee has been consolidated into Stater Bros.’ consolidated results since that date. |
(4) | Average sales per store, sales per average square foot and sales per average selling square foot are calculated by prorating the number of stores, total square feet and selling square feet by the period of time the store was opened, for new stores, or the period of time the expanded square footage was in service, for expanded stores. |