Stater Bros. Holdings Inc. Announces First Quarter 2010 Results

SAN BERNARDINO, Calif., Feb. 9 /PRNewswire/ -- Today, Jack H. Brown, Chairman, President and Chief Executive Officer of Stater Bros. Holdings Inc. announced financial results for the first quarter of fiscal 2010 ended December 27, 2009.

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The Company's supermarket sales were relatively flat, declining 1.11% in the first quarter of fiscal 2010 compared to the same period of the prior year.  Like store sales decreased 2.19% or $20.4 million for the thirteen weeks ended December 27, 2009 compared to the thirteen weeks ended December 28, 2008.  Consolidated sales in the first quarter of fiscal 2010 were $923.9 million compared to $959.3 million in the first quarter of fiscal 2009, an overall decline of $35.4 million.  The sale of dairy assets affected the comparison of sales between the first quarter of fiscal 2010 and the first quarter of fiscal 2009.  The dairy accounted for $25.0 million of the sales decline.  

During the thirteen week first quarter ended December 27, 2009, the Company completed the sale of substantially all of the assets of its dairy subsidiary to Dean Foods, Inc. and ceased all dairy manufacturing activity.  The Company recognized an after-tax gain of $4.7 million from the sale.

The Company reported net income for the thirteen week first quarter ended December 27, 2009 of $6.7 million compared to net income of $3.5 million for the thirteen week first quarter ended December 28, 2008.

Brown said, "During the quarter we completed the sale of the dairy to Dean Foods, Inc., the premier milk producer in the country.  We sold the dairy for the right business reason which was to protect the jobs of our employees at the dairy while allowing us to focus on our core business of operating supermarkets that provide outstanding value and service to our 'Valued Customers.'  

"Our economy continues to have a negative effect on the family budgets of our customers.  Our emphasis in these tough economic times is to retain customers by providing value so our customers get the most out of their shopping dollars while providing them with a friendly and satisfying experience on each and every one of their visits to our supermarkets.  

"While our quarterly like store sales declined over the previous year, our customer counts were up over the same time last year.  We remain committed to cost control as we navigate through this national economic recovery."

Stater Bros. Holdings Inc. is the largest privately held Supermarket Chain in Southern California and operates 167 supermarkets through its wholly owned subsidiary, Stater Bros. Markets.

For information contact: Jack H. Brown, Chairman, President and Chief Executive Officer at (909) 733-5000.

STATER BROS. MARKETS...SERVING SOUTHERN CALIFORNIA FOR OVER 74 GOLDEN YEARS

    
    
                          STATER BROS. HOLDINGS INC.                     
                     Condensed Consolidated Balance Sheets             
                                (In thousands)                           
                                  Unaudited                              
                                                                         
                                                      09/27/09   12/27/09
                                                      --------   --------
    Assets                                                               
      Current assets                                                     
        Cash and cash equivalents                     $196,914   $242,247
        Restricted cash                                  3,121      3,121
        Receivables, net                                40,720     41,616
        Inventories                                    212,856    237,761
        Assets held for sale                            83,617          -
        Other                                           30,109     37,331
                                                        ------     ------
                                                                         
      Total current assets                             567,337    562,076
                                                                         
      Property and equipment, net                      671,493    667,608
                                                                         
      Deferred debt issuance costs, net                 11,276     10,473
      Other                                             64,629     65,348
                                                        ------     ------
                                                                         
    Total assets                                    $1,314,735 $1,305,505
                                                    ========== ==========
                                                                         
                                                                         
    Liabilities and stockholder's equity                                 
      Current liabilities                                                
        Accounts payable                              $153,083   $157,000
        Liabilities held for sale                        5,634          -
        Accrued expenses and other liabilities         132,931    121,592
        Current portion of capital lease                                 
         obligations                                     1,336      1,389
                                                         -----      -----
                                                                         
      Total current liabilities                        292,984    279,981
                                                                         
      Long-term debt                                   810,000    810,000
      Capital lease obligations, less current                            
       portion                                           3,768      3,400
      Other long-term liabilities                      144,228    146,658
                                                                         
      Total stockholder's equity                        63,755     65,466
                                                        ------     ------
                                                                         
    Total liabilities and stockholder's equity      $1,314,735 $1,305,505
                                                    ========== ==========

    
    
                         STATER BROS. HOLDINGS INC.                    
                Condensed Consolidated Statements of Income            
                               (In thousands)                          
                                 Unaudited                             
                                                                       
                                                    13 Weeks  13 Weeks 
                                                       Ended     Ended 
                                                       -----     ----- 
                                                    12/28/08  12/27/09 
                                                    --------  -------- 
    Sales                                           $959,253  $923,864 
                                                                       
    Gross profit                                     246,862   238,150 
                                                                       
    Operating expenses:                                                
      Selling, general and                                             
       administrative expenses                       211,004   205,288 
      Gain on sale of dairy assets                         -    (7,950)
      Depreciation and amortization                   13,360    12,666 
                                                      ------    ------ 
    Total operating expenses                         224,364   210,004 
                                                     -------   ------- 
                                                                       
    Operating profit                                  22,498    28,146 
                                                                       
    Interest income                                      205        59 
    Interest expense                                 (17,100)  (17,189)
    Other income (expenses), net                         149       (11)
                                                       -----     ----- 
                                                                       
    Income before income taxes                         5,752    11,005 
                                                                       
    Income taxes                                       2,211     4,294 
                                                       -----     ----- 
                                                                       
    Net income                                        $3,541    $6,711 
                                                      ======    ====== 

SOURCE Stater Bros. Holdings Inc.