Stater Bros. Announces Financial Results for 2010

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Dec 15, 2010, 07:20 ET

San Bernardino, Calif., Dec. 15, 2010 /PRNewswire/ -- Today, Jack H. Brown, Chairman, President and Chief Executive Officer of Stater Bros. Holdings Inc. announced sales and earnings for the fifty-two week fiscal year ended September 26, 2010.

(Logo: http://photos.prnewswire.com/prnh/20030421/STATERLOGO)

Sales for the 2010 fiscal year were $3.61 billion, a decrease of 4.23% when compared to sales of $3.77 billion for the 2009 fiscal year. Excluding the effect of the Dairy Transaction, sales decreased $66.0 million or 1.75%. Sales for the fourth quarter of fiscal 2010 were $897.4 million compared to $947.2 million for the fourth quarter of 2009. Sales for the quarter decreased $29.1 million or 3.15% after taking into account the effect of the Dairy Transaction. Like store sales for the fiscal year and the fourth quarter of 2010 decreased 2.45% and 3.29%, respectively.

The Company reported net income of $24.6 million for the 2010 fiscal year compared to $34.8 million in the 2009 fiscal year. The results for the fourth quarters of fiscal 2010 and fiscal 2009 were net income of $5.9 million and $5.0 million, respectively.

Brown said, "We continue to face some of the toughest economic and competitive pressures in our Company's history. We continue to focus on the values we can pass on to our 'Valued Customers' so they get the most out of their shopping dollars and assisting them and their families during these difficult times. We still provide a friendly and satisfying experience on each and every one of their visits to our Supermarkets. We remain committed to controlling costs as we weather the effect of these economic times."

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: Phillip J. Smith, Executive Vice President and Chief Financial Officer at (909) 733-5287.

STATER BROS. MARKETS...SERVING SOUTHERn cALIFORNIA FOR 74 GOLDEN YEARS

STATER BROS. HOLDINGS INC.
Condensed Consolidated Statements of Income
(In thousands)
Unaudited

		13 Weeks	13 Weeks	52 Weeks	52 Weeks
		Ended	Ended	Ended	Ended
		09/27/09	09/26/10	09/27/09	09/26/10
Sales		$ 947,150	$ 897,394	$ 3,766,040	$ 3,606,839

Gross profit		245,132	249,696	1,002,036	969,948

Operating expenses:
	Selling, general and
	administrative expenses	206,599	210,828	827,192	819,698
	Gain on sale of dairy assets				(9,396)
	Depreciation and amortization	13,478	12,749	53,536	50,822
Total operating expenses		220,077	223,577	880,728	861,124
Operating profit		25,055	26,119	121,308	108,824

Interest income		55	254	471	366
Interest expense		(16,881)	(16,970)	(68,252)	(68,516)
Other income, net		16	475	723	497

Income before income taxes		8,245	9,878	54,250	41,171

Income taxes		3,280	3,954	19,481	16,587

Net income		$ 4,965	$ 5,924	$ 34,769	$ 24,584

STATER BROS. HOLDINGS INC.
Condensed Consolidated Balance Sheets
(In thousands)
Unaudited

			09/27/09	09/26/10
Assets
	Current assets
		Cash and cash equivalents	$ 196,914	$ 325,005
		Restricted cash	3,121	3,121
		Receivables, net	40,720	35,614
		Inventories	212,856	203,702
		Assets held for sale	83,617	-
		Other	30,109	56,107

	Total current assets		567,337	623,549

	Property and equipment, net		671,493	644,064

	Deferred debt issuance costs, net		11,276	8,074
	Other		64,629	47,100

Total assets			$ 1,314,735	$ 1,322,787


Liabilities and stockholder's equity
	Current liabilities
		Accounts payable	$ 153,083	$ 135,642
		Liabilities held for sale	5,634	-
		Accrued expenses and other liabilities	132,931	147,972
		Current portion of capital lease obligations	1,336	1,562
		Current portion of long-term debt	-	132,250

	Total current liabilities		292,984	417,426

	Long-term debt, less current portion		810,000	677,750
	Capital lease obligations, less current portion		3,768	2,206
	Other long-term liabilities		144,228	152,272

	Total stockholder's equity		63,755	73,133

Total liabilities and stockholder's equity			$ 1,314,735	$ 1,322,787