[STATER BROS. MARKETS LOGO]
EXHIBIT 99.4
21700 BARTON ROAD Contact:
P. O. BOX 150 Phil Smith
COLTON, CALIFORNIA 92324 Stater Bros. Holdings Inc.
(909) 783-5287
P R E S S R E L E A S E
FOR IMMEDIATE RELEASE
WEDNESDAY, DECEMBER 18, 2002
STATER BROS. HOLDINGS ANNOUNCES RECORD SALES
Colton, California. December 18, 2002: Today, Jack H. Brown, Chairman, President
and Chief Executive Officer of Stater Bros. Holdings Inc. announced record sales
for the fifty-two week fiscal year ended September 29, 2002.
The Company set a sales record for the fifty-two week 2002 fiscal year. Sales
for fiscal 2002 were $2.666 billion, an increase of 3.6% when compared to sales
of $2.574 billion for the fifty-three week 2001 fiscal year and sales increased
5.6% after converting fiscal 2001 to a comparable fifty-two week year. Sales for
the thirteen-week fourth quarter ended September 29, 2002 (fiscal 2002) were
$676.8 million, a decrease of 2.9% when compared to $696.8 million for the
fourteen-week fourth quarter ended September 30, 2001 (fiscal 2001). Sales for
the fourth quarter of 2002 on a thirteen-week comparable basis increased 4.6%.
In fiscal 2002, like store sales increase 5.3% over fiscal 2001, this comparison
converts fiscal 2001 from a fifty-three week period to a fifty-two week period.
For the fourth quarter of 2002, like stores sales increased 4.0% over fourth
quarter 2001, this comparison converts the fourth quarter of fiscal 2001 from a
fourteen-week period to a thirteen-week period.
Operating cash flow (EBITDA) is defined as earnings before extraordinary gain or
loss, interest expense, income taxes, depreciation and amortization. EBITDA
amounted to $22.1 million and $103.6 million for the fourth quarter and year to
date periods in fiscal 2002 compared to $25.9 million and $94.8 million for the
like periods of fiscal 2001.
The Company reported a net income of $11.8 million for the fiscal year 2002
compared to $7.8 in fiscal year 2001. The results for the fourth quarters of
2002 and 2001 were net income of $652,000 and $2.4 million, respectively.
Brown said, "The results of the fourth quarter were adversely affected by
increases in contributions to union pension, health and welfare plans and
substantial increases in summer utility rates. We were pleased with the fiscal
year results and our people are committed to gain back the momentum we had
achieved in EBITDA and net income performance. We have the right plan and
personnel in place to regain this momentum. We have been able to protect our
sales base by focusing our efforts to serve our "Valued Customers" one at a
time."
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
09/29/02 9/30/01
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Assets
Current Assets
Cash $ 81,043 $ 101,636
Receivables 33,561 30,252
Inventories 175,404 170,189
Other 26,958 17,217
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Total current assets 316,966 319,294
Investment in unconsolidated affiliate 15,580 12,666
Property, plant, & equipment, net 281,999 274,487
Deferred debt issuance costs, net 13,936 12,042
Other 5,649 10,805
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Total Assets $ 634,130 $ 629,294
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Liabilities and Stockholders' Deficit
Current Liabilities
Accounts payable $ 104,166 $ 107,485
Accrued expenses and other liabilities 88,223 86,077
Current portion of capital lease obligations
and long-term debt 1,117 1,435
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Total current liabilities 193,506 194,997
Long-term debt, less current portion 458,750 439,000
Capital lease obligations, less current portion 10,981 12,098
Other long-term liabilities 45,014 24,608
Common stockholders' deficit (74,121) (41,409)
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Total Liabilities and Stockholders' Deficit $ 634,130 $ 629,294
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STATER BROS. HOLDINGS INC.
CONDENSED RESULTS OF OPERATIONS
(IN THOUSANDS)
UNAUDITED
13 Weeks 14 Weeks 52 Weeks 53 Weeks
Ended Ended Ended Ended
09/29/02 09/30/01 09/29/02 09/30/01
---------- ---------- ------------ ------------
Sales $ 676,767 $ 696,834 $ 2,666,346 $ 2,573,913
Gross profits 182,702 183,167 708,820 662,848
Operating Expenses:
Selling, general and
administrative expenses 161,237 158,287 608,289 572,815
Depreciation and amortization 8,333 7,959 31,493 29,061
--------- --------- ----------- -----------
Total operating expenses 169,570 166,246 639,782 601,876
--------- --------- ----------- -----------
Operating profit 13,132 16,921 69,038 60,972
Interest income 376 812 1,721 3,409
Interest expense (13,373) (13,904) (52,814) (52,410)
Equity in earnings from unconsolidated
affiliate 359 411 2,914 1,584
Other expenses, net (91) (183) (1,579) (258)
--------- --------- ----------- -----------
Income before income taxes (benefit) 403 4,057 19,280 13,297
Income taxes (benefit) (249) 1,663 7,491 5,452
--------- --------- ----------- -----------
Net income $ 652 $ 2,394 $ 11,789 $ 7,845
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