Stater's Sales, Increased Customers And Reduced Interest Expense Improve Earnings In Fiscal 2012

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Dec 18, 2012, 07:08 ET

SAN BERNARDINO, Calif., Dec. 18, 2012 /PRNewswire/ -- Today, Jack H. Brown, Chairman, President and Chief Executive Officer of Stater Bros. Holdings Inc. announced sales and earnings for the fifty-three week fiscal year ended September 30, 2012.

(Logo: http://photos.prnewswire.com/prnh/20121101/LA04466LOGO)

The Company's fourth quarter and fiscal 2012 sales are affected by the fourth quarter being a fourteen week quarter and the fiscal year being a fifty-three week year versus a normal thirteen week quarter and fifty-two week year. Fiscal 2012 sales were $3.9 billion. The extra week in fiscal 2012 added $67.8 million or 1.83% to sales. Normalized thirteen week 2012 fourth quarter sales were $957.2 million compared to fourth quarter sales in fiscal 2011 of $941.8 million an increase of $15.4 million. Normalized fifty-two week fiscal 2012 sales were $3.8 billion compared to fiscal 2011 sales of $3.7 billion an increase of $112.1 million. Like store sales increased 1.64% in the fourth quarter and 3.04% in fiscal 2012 over the same periods of the prior year.

The Company reported net income of $5.0 million the fourth quarter of fiscal 2012 and $5.6 million in the fourth quarter of fiscal 2011. Net income was $37.7 million and $26.3 million for fiscal 2012 and fiscal 2011, respectively. The Company's fiscal 2012 net income was favorably benefited by a reduction in pre-tax interest expense of $9.4 million compared to fiscal 2011.

Brown said, "We are pleased with our fiscal 2012 results. We increased sales, increased customers and reduced our interest expense by $9.4 million. Our success in the current year is due to our valued customers responding favorably to our marketing efforts which have emphasized quality and value and has attracted new customers in fiscal 2012. Our results reflect the benefit of our debt refinancing last year which has significantly reduced our interest expense. The reduction in interest expense is just one measure that we've taken to reduce cost which has allowed us to keep prices low to our customers. During these tough economic times, low prices and value are even more important as our customers continue to face challenges to their home budgets."

Stater Bros. is the largest privately owned Supermarket Chain in Southern California and the largest private employer in both San Bernardino County and Riverside County, with annual sales in 2011 of $3.7 billion. The Company currently operates 167 Supermarkets, and there are over 18,000 members of the Stater Bros. Supermarket Family.

STATER BROS ... PROUDLY SERVING SOUTHERN CALIFORNIA FAMILIES FOR 76 YEARS

CONTACT: Dave Harris, Senior Vice President Finance, CFO, +1-909-733-5080

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

		13 Weeks	14 Weeks	52 Weeks	53 Weeks
		Ended	Ended	Ended	Ended
		09/25/11	09/30/12	09/25/11	09/30/12
Sales		$ 941,846	$ 1,025,044	$ 3,693,306	$ 3,873,203

Gross profit		255,666	268,019	990,892	1,039,608

Operating expenses:
	Selling, general and
	administrative expenses	220,615	234,710	841,527	882,740
	Depreciation and amortization	12,067	12,370	48,413	46,503
Total operating expenses		232,682	247,080	889,940	929,243

Operating profit		22,984	20,939	100,952	110,365

Interest income		20	27	708	116
Interest expense		(11,859)	(12,568)	(57,296)	(47,882)
Other income, net		(11)	40	82	978

Income before income taxes		11,134	8,438	44,446	63,577

Income taxes		4,668	3,450	18,156	25,868

Net income		$ 6,466	$ 4,988	$ 26,290	$ 37,709

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

			09/25/11	09/30/12
Assets
	Current assets
		Cash and cash equivalents	$ 235,784	$ 219,800
		Restricted cash	3,121	-
		Receivables, net	32,166	47,902
		Inventories	231,121	229,117
		Other	43,299	46,340

	Total current assets		545,491	543,159

	Property and equipment, net		625,423	607,504

	Deferred debt issuance costs, net		10,690	8,397
	Other		51,163	49,262

Total assets			$ 1,232,767	$ 1,208,322


Liabilities and stockholder's equity
	Current liabilities
		Accounts payable	$ 135,911	$ 147,544
		Accrued expenses and other liabilities	169,646	165,951
		Current portion of capital lease obligations	1,107	1,242
		Current portion of long-term debt	38,798	11,419

	Total current liabilities		345,462	326,156

	Long-term debt, less current portion		642,577	633,521
	Capital lease obligations, less current portion		1,099	1,186
	Other long-term liabilities		162,865	164,837

	Total stockholder's equity		80,764	82,622

Total liabilities and stockholder's equity			$ 1,232,767	$ 1,208,322