Sales And Customer Counts Up At Stater Bros. -- First Quarter 2013 Results

From the Wires

Feb. 12, 2013 06:00 PM

SAN BERNARDINO, Calif., Feb. 12, 2013 /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 2013 which ended on December 30, 2012.

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

The Company's sales increased 0.83% in the first quarter of fiscal 2013 compared to the same period of the prior year. Like store sales also increased $8.0 million or 0.83% for the thirteen weeks ended December 30, 2012 compared to the thirteen weeks ended December 25, 2011. Consolidated sales in the first quarter of fiscal 2013 were $968.7 million compared to $960.7 million in the first quarter of fiscal 2012.

Customer counts increased over 250,000 in the first quarter of fiscal 2013 compared to the same period of the prior year.

Gross profit margins for the thirteen weeks ended December 30, 2012 were 25.88% of sales compared to the thirteen weeks ended December 25, 2011 gross profit margin of 27.03% of sales.

The Company reported net income for the thirteen week first quarter ended December 30, 2012 of $5.4 million compared to net income for the thirteen week first quarter ended December 25, 2011 of $9.0 million.

Brown said, "The decline in net income was primarily due to a lower gross profit margin in the first quarter of fiscal 2013 compared to the first quarter of fiscal 2012 as a result of our commitment to keep prices low, to the extent possible, to help our 'Valued Customers' weather these tough economic times which resulted in increasing our customer counts by 250,000 in the quarter.

"The Company has made a conscious decision to not pass on all of the costs of inflation that we have experienced.

"The unemployment rate in our marketing area of 10.9% continues to be higher than the national average of 7.8% and State of California average of 9.8%.

"Since the beginning of this economic crisis, we have maintained a policy of retaining and growing customer counts by providing value and superior service to our customers. We feel it is important to retain our customers so when the economy does finally turn around they will still be shopping at their local Stater Bros. Supermarket."

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 2012 of $3.9 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 77 YEARS

CONTACT: Dave Harris, Senior Vice President Finance, Chief Financial Officer, +1-909-733-5080

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

		13 Weeks	13 Weeks
		Ended	Ended
		12/25/11	12/30/12
Sales		$ 960,724	$ 968,744

Gross profit		259,681	250,729

Operating expenses:
	Selling, general and administrative expenses	221,871	220,079
	Gain on sale of property and equipment	(639)	(1,933)
	Depreciation and amortization	11,412	11,683
Total operating expenses		232,644	229,829

Operating profit		27,037	20,900

Interest income		36	23
Interest expense		(11,949)	(11,809)

Income before income taxes		15,124	9,114

Income taxes		6,114	3,665

Net income		$ 9,010	$ 5,449

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

			09/30/12	12/30/12
Assets
	Current assets
		Cash and cash equivalents	$ 219,800	$ 189,018
		Receivables, net	47,902	49,153
		Inventories	229,117	254,073
		Other	46,340	44,107

	Total current assets		543,159	536,351

	Property and equipment, net		607,504	600,223

	Deferred debt issuance costs, net		8,397	7,838
	Other		49,262	51,358

Total assets			$ 1,208,322	$ 1,195,770


Liabilities and stockholder's equity
	Current liabilities
		Accounts payable	$ 147,544	$ 153,008
		Accrued expenses and other liabilities	165,951	146,383
		Current portion of long-term debt	12,661	14,468

	Total current liabilities		326,156	313,859

	Long-term debt, less current portion		633,521	629,896
	Capital lease obligations, less current portion		1,186	897
	Other long-term liabilities		164,837	168,047

	Total stockholder's equity		82,622	83,071

Total liabilities and stockholder's equity			$ 1,208,322	$ 1,195,770

SOURCE Stater Bros. Holdings Inc.

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