EX-99.1 2 dex991.htm REGULATION FD DISCLOSURE-SELECTED STATER BROS. HOLDINGS INC. FINANCIAL DATA Regulation FD Disclosure-Selected Stater Bros. Holdings Inc. Financial Data

Exhibit 99.1

Selected Stater Bros. Holdings Inc. Financial Data

The following table shows selected consolidated financial data and other information. The annual data for 2002, 2003, 2004, 2005, and 2006 are derived from Stater Bros.’ audited consolidated financial statements and the related notes which are included in Stater Bros.’ Amended Annual Report filed on Form 10-K/A for the fiscal year ended September 24, 2006, as filed with the Securities and Exchange Commission (the “SEC”) on March 30, 2007, which are incorporated herein by reference. The information for the 13-week periods is derived from unaudited consolidated financial statements contained in Stater Bros.’ Amended Quarterly Report filed on Form 10-Q/A for the fiscal quarter ended December 24, 2006, as filed with the SEC on March 30, 2007, which are incorporated herein by reference. In the opinion of management, such unaudited consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of these data. The results for the 13-week periods ended December 25, 2005 and December 24, 2006 are not necessarily indicative of the results for a full year or for any future period. The information included in “Other Operating and Financial Data” and “Store Data” is unaudited.

 

                                   Unaudited  
   Fiscal Years Ended     13-Week Period Ended  
   Sept. 29,
2002
    Sept. 28,
2003
    Sept. 26,
2004
    Sept. 25,
2005
    Sept. 24,
2006
    Dec. 25,
2005
    Dec. 24,
2006
 
   (in thousands of dollars except per share and store data)  

Statement of Earnings Data:

              

Sales

   $ 2,666,346     $ 2,753,774     $ 3,705,209     $ 3,372,844     $ 3,508,794     $ 876,166     $ 904,354  

Cost of goods sold

     1,957,526       1,999,361       2,653,139       2,468,736       2,578,435       640,451       662,464  
                                                        

Gross profit

     708,820       754,413       1,052,070       904,108       930,359       226,715       241,890  

Selling, general and administrative expenses

     615,317       659,547       820,329       772,885       790,756       198,765       201,801  

Depreciation and amortization

     25,052       27,660       33,284       39,575       46,642       10,358       11,884  
                                                        

Total operating expenses

     640,369       687,207       853,613       812,460       837,398       209,123       213,685  
                                                        

Operating profit

     68,451       67,206       198,457       91,648       92,961       17,592       28,205  

Interest and other income (expense)

     142       (44 )     855       5,402       8,288       2,434       2,655  

Interest expense

     (52,814 )     (53,254 )     (53,951 )     (57,142 )     (57,238 )     (14,576 )     (14,285 )

Interest expense related to debt purchase

     —         —         (35,647 )     —         —         —         —    

Equity in income from unconsolidated affiliate

     2,914       1,330       929       —         —         —         —    
                                                        

Income before income taxes

     18,693       15,238       110,643       39,908       44,011       5,450       16,575  

Income taxes

     7,252       5,471       39,202       13,662       17,945       2,118       6,673  
                                                        

Net income

   $ 11,441     $ 9,767     $ 71,441     $ 26,246     $ 26,066     $ 3,332     $ 9,902  
                                                        

Earnings per common share

   $ 272.63     $ 255.01     $ 1,865.25     $ 685.26     $ 697.21     $ 87.00     $ 268.38  
                                                        

Balance Sheet Data (end of period):

              

Working capital

   $ 119,643     $ 124,517     $ 319,855     $ 277,154     $ 233,280     $ 274,691     $ 232,586  

Total assets

     630,921       663,836       1,014,121       1,055,369       1,058,092       1,048,367       1,057,646  

Long-term notes

     458,750       458,750       700,000       700,000       700,000       700,000       700,000  

Long-term capitalized lease obligations

     10,981       9,926       9,470       8,292       7,294       7,972       7,056  

Other long-term liabilities

     43,533       53,014       83,112       83,799       80,316       85,187       83,549  

Common stockholder’s deficit

     (75,849 )     (66,082 )     (39,641 )     (13,395 )     (11,079 )     (10,063 )     (1,177 )

Dividends paid per share, Class A Common Stock

   $ 117.49     $ —       $ 1,174.90     $ —       $ 135.52     $ —       $ —    

Cash Flow Data:

              

Cash provided by (used in) operating activities

     51,168       82,950       133,125       83,565       89,130       (21,134 )     24,742  

Cash provided by (used in) financing activities

     (31,218 )     (1,116 )     119,481       (1,235 )     (24,884 )     (284 )     (320 )

Cash used in investing activities

     (40,543 )     (51,725 )     (61,811 )     (120,880 )     (129,098 )     (22,419 )     (1,873 )

Other Operating and Financial Data:

              

Sales increases (decreases):

              

Total sales

     3.6 %     3.3 %     34.6 %     (9.0 )%     4.0 %     3.33 %     4.27 %

Like stores (1)

     5.3 %     2.8 %     30.3 %     (12.1 )%     1.5 %     0.3 %     1.4 %

EBITDA(2)

   $ 103,752     $ 103,581     $ 243,876     $ 148,805     $ 159,819     $ 33,336     $ 45,712  

Operating profit

   $ 68,451     $ 67,206     $ 198,457     $ 91,648     $ 92,961     $ 17,592     $ 28,205  

Ratio of earnings to fixed charges(3)

     1.24x       1.21x       1.97x       1.47x       1.47x       1.25x       1.59x  

Gross profit, as a percentage of sales

     26.58 %     27.40 %     28.40 %     26.81 %     26.52 %     26.15 %     26.76 %

Selling, general and administrative expenses, as a percentage of sales

     23.08 %     23.96 %     22.14 %     22.92 %     22.54 %     22.93 %     22.32 %

Store Data(4):

              

Number of stores (at end of period)

     156       157       158       161       162       162       162  

Average sales per store (000s)

   $ 17,092     $ 17,619     $ 23,014     $ 20,404     $ 20,937     $ 5,185     $ 5,404  

Average store size:

              

Total square feet

     33,083       33,111       33,206       33,474       33,778       33,654       33,973  

Selling square feet

     23,675       23,693       23,746       23,872       24,028       23,980       24,141  

Total square feet (at end of period) (000s)

     5,161       5,205       5,267       5,415       5,491       5,459       5,512  

Total selling square feet (at end of period) (000s)

     3,693       3,724       3,764       3,860       3,904       3,888       3,914  

Sales per average square foot

   $ 517     $ 532     $ 693     $ 610     $ 620     $ 154     $ 159  

Sales per average selling square foot

   $ 722     $ 744     $ 969     $ 855     $ 871     $ 216     $ 224  

(footnotes on following page)



(1) Like store sales are calculated by comparing year-to-year sales for stores that are open in both years. For stores that were not open for the entire previous year, only the current year’s weekly sales that correspond to the weeks the store was open in the previous year are used. For stores that were closed during the year, only the prior year’s weekly sales that correspond to the weeks the store was open in the current year are used.
(2) EBITDA is included here as Stater Bros. believes that it is used by Stater Bros.’ bondholders, securities analysts and other interested parties to evaluate Stater Bros.’ operating results and as a measure of Stater Bros.’ ability to both service debt and to comply with certain debt covenants. EBITDA is a calculation derived from Stater Bros.’ debt covenants and is defined as earnings before interest expense, income taxes, depreciation and amortization. EBITDA is not a measure of financial performance under generally accepted accounting principles (“GAAP”) and should not be used as an alternative to, or be construed as more meaningful than, operating profit or cash flows as an indicator of Stater Bros.’ operating performance. The following table reconciles EBITDA to cash provided by operating activities, which is the most closely comparable GAAP measure of liquidity:

 

     Unaudited  
     Fiscal Years Ended     13-Week Period Ended  
     Sept. 29,
2002
    Sept. 28,
2003
    Sept. 26,
2004
    Sept. 25,
2005
    Sept. 24,
2006
    Dec. 25,
2005
    Dec. 24,
2006
 
     (in thousands of dollars)  

Net cash provided by (used in) operating activities

   $ 51,168     $ 82,950     $ 133,125     $ 83,565     $ 89,130     $ (21,134 )   $ 24,742  

Net increase (decrease) in operating assets and liabilities

     (2,856 )     (34,433 )     (72,026 )     (5,482 )     (1,973 )     40,420       (464 )

Amortization of debt issuance costs

     (3,450 )     (3,450 )     (11,318 )     (3,042 )     (3,038 )     (761 )     (761 )

Loss on disposal of assets

     (1,579 )     (1,093 )     (1,488 )     (1,594 )     (2,176 )     (116 )     (215 )

Premiums, fees and make-whole payments related to debt purchase

     —         —         26,519       —         —         —         —    

Change in deferred income taxes

     (2,511 )     (448 )     17,064       4,554       2,693       (1,767 )     1,452  

Gain from litigation settlement

     —         —         22,371       —         —         —         —    

Equity in income from unconsolidated affiliate

     2,914       1,330       929       —         —         —         —    

Interest expense

     52,814       53,254       89,598       57,142       57,238       14,576       14,285  

Income tax expense

     7,252       5,471       39,202       13,662       17,945       2,118       6,673  
                                                        

EBITDA

   $ 103,752     $ 103,581     $ 243,976     $ 148,805     $ 159,819     $ 33,336     $ 45,712  
                                                        

(3) For the purpose of determining the ratio of earnings to fixed charges, earnings consist of income before income taxes and amortization of previously capitalized interest. Fixed charges consist of interest expense (whether expensed or capitalized), amortization of debt issuance costs, and such portion of rental expense as can be deemed by management to be representative of the interest factor in the particular case. For fiscal year 2004, included in earnings and fixed charges is Stater Bros.’ 50% share of fixed charges and earnings of Santee through February 6, 2004. Santee has been consolidated into Stater Bros.’ consolidated results since that date.
(4) Average sales per store, sales per average square foot and sales per average selling square foot are calculated by prorating the number of stores, total square feet and selling square feet by the period of time the store was opened, for new stores, or the period of time the expanded square footage was in service, for expanded stores.