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| 8-K - 8-K - STATER BROS HOLDINGS INC | a8-k1stqtrfiscal2014earnin.htm |
Exhibit 99.1
STATER BROS. SALES AND CUSTOMER COUNTS INCREASE
IN THE FIRST QUARTER OF FISCAL 2014
SAN BERNARDINO, CALIFORNIA (February 11, 2014) - Today, Jack H. Brown, Chairman, President and Chief Executive Officer of Stater Bros. Holdings Inc. announced financial results for the thirteen week period ended December 29, 2013.
The Company’s consolidated sales in the thirteen weeks ended December 29, 2013 were $984.0 million up $15.3 million or 1.58% from the thirteen weeks ended December 30, 2012 consolidated sales of $968.7 million. Like store sales also increased $13.7 million or 1.42% for the thirteen weeks ended December 29, 2013 compared to the thirteen weeks ended December 30, 2012.
Gross profit margins for the thirteen weeks ended December 29, 2013 were 26.28% of sales compared to the thirteen weeks ended December 30, 2012 gross profit margin of 25.88% of sales.
The Company reported net income for the first quarter ended December 29, 2013 of $11.1 million compared to net income of $5.4 million for first quarter of the prior fiscal year.
Brown said, “We are pleased with our sales and customer count growth in the first quarter of fiscal 2014 given the extremely competitive environment in Southern California. We continue to be the number ‘1’ full service supermarket chain in Southern California.
“We believe that our sales and customer count growth is due to our ‘Valued Customers’ positive response to our ‘Low Price’ marketing strategy of keeping our prices as low as possible during these continued challenging economic times while continuing to provide our customers the service and value they deserve on each of their visits to their local Stater Bros.’ supermarket.
“During the extended economic downtown, we have sacrificed gross margin by not fully passing on the costs of inflation which has allowed us to keep our prices low for our ‘Valued Customers’. In addition, in order to continue to invest in our customers, we are constantly looking for opportunities where we can reduce our costs in areas such as improving our shrink or product loss, and improving our efficiencies at both our stores and in our distribution facility.
“Our strategy over the past several years has had a positive impact on our sales growth. We have been and remain committed to providing low prices, great value and outstanding service to all of our ‘Valued Customers’.“
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 2013 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 78 YEARS
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STATER BROS. HOLDINGS INC. | |||||||
Condensed Consolidated Balance Sheets | |||||||
(In thousands) | |||||||
Unaudited | |||||||
9/29/2013 | 12/29/2013 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 242,818 | $ | 210,949 | |||
Receivables, net | 37,493 | 49,773 | |||||
Inventories | 228,116 | 258,192 | |||||
Other | 39,876 | 40,338 | |||||
Total current assets | 548,303 | 559,252 | |||||
Property and equipment, net | 600,019 | 597,624 | |||||
Deferred debt issuance costs, net | 6,173 | 5,628 | |||||
Other | 42,851 | 45,976 | |||||
Total assets | $ | 1,197,346 | $ | 1,208,480 | |||
Liabilities and stockholder’s equity | |||||||
Current liabilities | |||||||
Accounts payable | $ | 144,214 | $ | 151,446 | |||
Accrued expenses and other liabilities | 153,987 | 152,334 | |||||
Current portion of long-term debt | 25,582 | 90,503 | |||||
Total current liabilities | 323,783 | 394,283 | |||||
Long-term debt, less current portion | 608,711 | 540,000 | |||||
Capital lease obligations, less current portion | 414 | 291 | |||||
Other long-term liabilities | 150,988 | 149,400 | |||||
Total stockholder’s equity | 113,450 | 124,506 | |||||
Total liabilities and stockholder’s equity | $ | 1,197,346 | $ | 1,208,480 | |||
STATER BROS. HOLDINGS INC. | |||||||
Condensed Consolidated Statements of Income | |||||||
(In thousands) | |||||||
Unaudited | |||||||
13 Weeks Ended | 13 Weeks Ended | ||||||
12/30/12 | 12/29/13 | ||||||
Sales | $ | 968,744 | $ | 984,025 | |||
Gross profit | 250,729 | 258,635 | |||||
Operating expenses: | |||||||
Selling, general and administrative expenses | 220,079 | 217,138 | |||||
(Gain) loss on sale of property and equipment | (1,933 | ) | 10 | ||||
Depreciation and amortization | 11,683 | 11,373 | |||||
Total operating expenses | 229,829 | 228,521 | |||||
Operating profit | 20,900 | 30,114 | |||||
Interest income | 23 | 15 | |||||
Interest expense | (11,809 | ) | (11,486 | ) | |||
Income before income taxes | 9,114 | 18,643 | |||||
Income taxes | 3,665 | 7,587 | |||||
Net income | $ | 5,449 | $ | 11,056 | |||