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SOURCE Stater Bros. Holdings Inc.
SAN BERNARDINO, Calif., May 13, 2014 /PRNewswire/ -- Today, Jack H. Brown, Chairman, President and Chief Executive Officer of Stater Bros. Holdings Inc. announced financial results for the thirteen week and twenty-six week periods ended March 30, 2014.
The Company's consolidated sales in the thirteen weeks ended March 30, 2014 were $963.8 million up $1.9 million or 0.2% from the thirteen weeks ended March 31, 2013 consolidated sales of $961.9 million. The Company's sales for the twenty-six weeks ended March 30, 2014 were $1.95 billion up $17.2 million or 0.9 % from the same period in the prior year.
Sales in the prior year period were affected by the Easter holiday that fell in the second quarter of the prior year and in the third quarter of the 2014 fiscal year. The Easter holiday increased net sales in the prior year quarter by approximately $11.3 million. Excluding the effect of Easter, like store sales also increased $9.5 million or 1.0% for the thirteen weeks ended March 30, 2014 compared to the thirteen weeks ended March 31, 2013. Like store sales for fiscal 2014 year-to-date increased $23.2 million or 1.20% compared to the twenty-six weeks ended March 31, 2013.
Gross profit margins for the thirteen weeks ended March 30, 2014 were 27.64% of sales compared to the thirteen weeks ended March 31, 2013 gross profit margin of 26.90% of sales. Gross profit margin for the twenty-six weeks ended March 30, 2014 was 26.95% compared to 26.39% for the same period in the prior fiscal year. The Company reported net income for the second quarter ended March 30, 2014 of $19.2 million compared to net income of $11.6 million for second quarter of the prior fiscal year and partially reflects the Company's investment in energy savings, remodels and installation of energy saving equipment, such as doors on all refrigerated cases, at the stores. Net income for the fiscal 2014 year-to-date was $30.2 million compared to $17.0 million for the same period in the prior fiscal year.
On May 12, 2014, the Company refinanced and signed a new credit agreement which replaces the Company's old revolving line of credit, term loan and senior unsecured notes. The new facility includes a $150 million line of credit, a $325 million Term Loan A, and a $250 million Term Loan B. The new debt structure will significantly reduce the Company's interest expense.
Brown said, "We are pleased with our sales growth in the second 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 according to a March 2014 national consumer survey.
"We believe that our sales 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.
"The restructuring of our debt and the related reduction in our interest cost will allow us to continue to invest in our 'Valued Customers' and continue to allow us to not fully pass on the costs of inflation which has allowed us to keep our prices low.
"Our commitment 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 approximately 18,000 members of the Stater Bros. Supermarket Family.
STATER BROS ... PROUDLY SERVING SOUTHERN CALIFORNIA FAMILIES FOR 78 YEARS
STATER BROS. HOLDINGS INC.
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STATER BROS. HOLDINGS INC.
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Contact: Dave Harris Executive Vice President Finance, Chief Financial Officer and Principal Accounting Officer P.O. Box 150, San Bernardino, CA 92402, Phone: (909) 733-5080