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Last year’s refinancing drove a drop in sales and profits for regional independent Stater Bros. Markets, though it did reduce its overall debt load, according to the company.
"As reported, last year's first quarter profits of $6.7 million included an after tax profit of $4.7 million from the sale of the company's dairy assets,” said Jack H. Brown, chairman, president, and CEO of Stater Bros. “This year's first quarter profits of $1.3 million include after tax charges of $3.0 million involving one-time costs from our refinancing. Without those refinancing costs, our profits for the first quarter would have been $4.3 million, approximately."
Brown continued: "We have been able to reduce our overall debt load and to refinance a significant portion of our debt at lower rates, which will reduce our interest expense. We will be able to use the savings from our debt reduction to continue to provide our customers with the value and quality they have come to expect from their Stater Bros. Market.”
The company's supermarket sales declined 2.31 percent in the first quarter of fiscal 2011 compared to last year. Like store sales decreased 2.31 percent or $21.3 million for the 13 weeks ended December 26, 2010 compared to the 13 weeks ended December 27, 2009.
Net income for the 13-week first quarter was $1.3 million, down from last year’s $6.7 million. Net income for first quarter of fiscal 2010 includes an after tax gain of $4.7 million from the company's dairy asset sale.
San Bernardino, Calif.-based Stater Bros. operates 167 Supermarkets in Southern Calif.