Stater Bros. Holdings Inc. Announces First Quarter 2010 Results
Supermarket Sales Flat - Dairy Asset Sale Completed
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
Contact: |
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Phil Smith |
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Stater Bros. Holdings Inc. |
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(909) 733-5287 |
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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
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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
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STATER BROS. HOLDINGS INC.
Condensed Consolidated Statements of Income
(In thousands)
Unaudited
13 Weeks 13 Weeks
Ended Ended
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12/28/08 12/27/09
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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
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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
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SOURCE Stater Bros. Holdings Inc.
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