99 Cents Only Stores Reports Earnings of $13.5 Million in the Second Quarter Ended June 30, 2002, an Increase of 23.7% Over Last Year.Business Editors CITY OF COMMERCE, Calif.--(BUSINESS WIRE)--July 23, 2002 Earnings Per Share for the Quarter Was $0.19 Compared to $0.16 in 2001 99 Cents Only Stores(R) (NYSE NYSE See: New York Stock Exchange :NDN NDN Indian NDN Naples Daily News (Daily news paper in Naples Florida) NDN Non Delivery Notification NDN National Data Network NDN Necdin NDN New Democratic Network NDN Next Door Neighbor NDN Nevada Donor Network ) reported net income of $13.5 million for the quarter ended June June: see month. 30, 2002 up 23.7% from $10.9 million in the second quarter of 2001. Earnings per share was $0.19 in the second quarter of 2002, compared with earnings per share of $0.16 in the second quarter of 2001, an 18.8% increase despite an additional 2.1 million shares outstanding. Total sales in the second quarter 2002 increased 23.1% to $167.9 million compared to net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $136.4 million in the second quarter of 2001. Retail sales for the second quarter were $155.4 million, up $32.9 million or 26.9% from sales of $122.5 million in 2001. Same-store-sales increased 2.1% in the second quarter of 2002. Earnings per share for the six months ended June 30, 2002 increased 23.3% to $0.37 compared to $0.30 in 2001. Total sales for the six months ended June 30, 2002 increased 26.6%. Same-store-sales in the second quarter were adversely affected by this year's shift in the Easter Easter [A.S. Eastre, name of a spring goddess], chief Christian feast, commemorating the resurrection of Jesus after his crucifixion. In the West, Easter is celebrated on the Sunday following the full moon next after the vernal equinox (see calendar); thus, it selling season from April 2001 in the second quarter to March 2002 in the first quarter. Same-store-sales for the first six months of 2002 increased 5.0%. Gross margin for the second quarter of 2002 was 40.2% versus 39.0% in the second quarter of 2001. Retail gross margin for the quarter was 41.8% versus 41.2% in 2001. This improvement in gross margin is due to favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. buys of both close-outs and re-orderable product. Selling, general and administrative expenses were 27.7% of sales, compared with 26.9% in 2001. Included in these expenses were a 40 basis point increase in depreciation costs, a 20 basis point increase in utility costs and a 20 basis point increase in labor costs. Eric ERIC Educational Research Information Clearinghouse ERIC Educational Resources Information Center ERIC ERISA Industry Committee ERIC Epidemiologic Research and Information Center (Durham, NC) Schiffer Schiffer is a German surname meaning "ship steerer". It may refer to:
99 Cents Only Stores(R), the nation's oldest existing one-price retailer, operates 139 retail stores in Southern and Central California, Las Vegas, Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). and Phoenix, Arizona Phoenix /ˈfiːˌnɪks/ (English: Phoenix, Navajo: Hoozdo, lit. "the place is hot", Western Apache: Fiinigis) is the capital and the most populous city of the U.S. and a wholesale division called Bargain A reciprocal understanding, contract, or agreement of any sort usually pertaining to the loan, sale, or exchange of property between two parties, one of whom wants to dispose of an item that the other wants to obtain. Wholesale. The Company will open its seventeenth 99 Cents Only Stores for the year on July July: see month. 25, 2002 in Phoenix, Arizona. 99 Cents Only Stores(R) emphasizes name-brand consumables, priced at an excellent value, in attractively merchandised stores. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , as referenced in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 (the "Act"). Forward-looking statements are inherently unreliable and actual results may differ. Factors which could cause actual results to differ materially from these forward-looking statements include, changes in the competitive market place, general economic conditions, factors affecting the retail industry in general, the timing of new store openings, the ability of the Company to identify and obtain leases for new stores, the ability of the Company to acquire inventory at favorable costs and other factors discussed in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Note to Editors: 99 Cents Only Stores(R) news releases and information available on the World Wide Web at http://www.99only.com.
99 CENTS ONLY STORES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Amounts in thousands except per share amounts)
Three Months Ended June 30
2002 2001
Net sales:
99 Cents Only Stores $155,436 92.6% $122,522 89.8%
Bargain Wholesale 12,425 7.4% 13,852 10.2%
------------------------------------
167,861 100.0% 136,374 100.0%
Cost of sales 100,298 59.8% 83,195 61.0%
------------------------------------
Gross Profit 67,563 40.2% 53,179 39.0%
Selling, general and
administrative expenses 46,539 27.7% 36,714 26.9%
------------------------------------
Operating Income 21,024 12.5% 16,465 12.1%
Other income (expense)
interest income, net 1,211 0.7% 1,451 1.0%
------------------------------------
Income before income taxes 22,235 13.2% 17,916 13.1%
Provision for income taxes 8,717 5.2% 6,987 5.1%
------------------------------------
Net income $13,518 8.0% $10,929 8.0%
====================================
Basic earnings per share
Net income $0.19 $0.16
========= =========
Diluted earnings per share
Net income $0.19 $0.16
========= =========
Weighted average number of
common shares outstanding:
Basic 69,888 68,506
Diluted 71,275 69,499
Six Months Ended June 30
2002 2001
Net sales:
99 Cents Only Stores $305,083 92.2% $232,734 89.1%
Bargain Wholesale 25,882 7.8% 28,609 10.9%
------------------------------------
330,965 100.0% 261,343 100.0%
Cost of sales 199,159 60.2% 160,094 61.3%
------------------------------------
Gross Profit 131,806 39.8% 101,249 38.7%
Selling, general and
administrative expenses 91,462 27.6% 70,180 26.8%
------------------------------------
Operating Income 40,344 12.2% 31,069 11.9%
Other income (expense)
interest income, net 2,296 0.7% 3,146 1.2%
------------------------------------
Income before income taxes 42,640 12.9% 34,215 13.1%
Provision for income taxes 16,652 5.0% 13,323 5.1%
------------------------------------
Net income $25,988 7.9% $20,892 8.0%
====================================
Basic earnings per share
Net income $0.37 $0.31
========= =========
Diluted earnings per share
Net income $0.37 $0.30
========= =========
Weighted average number of
common shares outstanding:
Basic 69,726 68,455
Diluted 71,100 69,341
99 CENTS ONLY STORES
BALANCE SHEETS
(Audited)
(Amounts in thousands)
June 30, December 31, June 30,
2002 2001 2001
-------------------------------
ASSETS:
Cash $178 $232 $211
Short-term
investments 117,012 147,566 120,433
Receivables, net 2,977 3,523 3,627
Income tax
receivable 4,599 1,384 --
Inventories 78,744 66,528 68,606
Other current assets 3,504 3,886 3,913
-------------------------------
Total current assets 207,014 223,119 196,790
Property and
Equipment, net 114,087 103,639 81,191
Long term
investments in
marketable
securities 35,045 533 1,300
Other assets 26,604 24,867 22,649
-------------------------------
Total assets $382,750 $352,158 $301,930
===============================
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current portion of
capitalized lease $ 41 $ 40 $ --
Accounts payable 7,520 15,244 11,721
Accrued expenses 13,595 11,878 6,309
Income tax payable -- -- 4,696
Due to shareholder -- 1,655 --
-------------------------------
Total current
liabilities 21,156 28,817 22,726
Deferred
compensation 950 -- --
Deferred rent 2,120 2,060 2,202
Capitalized lease
obligation 1,627 1,637 --
-------------------------------
4,697 3,697 2,202
Shareholders' equity 356,897 319,644 277,002
-------------------------------
Total liabilities
and shareholders'
equity $382,750 $352,158 $301,930
===============================
99 CENTS ONLY STORES
STATEMENTS OF CASH FLOWS
(Unaudited)
(Amounts in thousands)
Six months ended
June 30,
2002 2001
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $25,988 $20,892
Adjustment to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 8,199 5,524
Other (15) (190)
Tax benefit from exercise of non-qualified
employee stock options 3,122 872
Changes in assets and liabilities associated with
operating activities:
Accounts receivable 546 (59)
Inventories (12,216) (4,913)
Other assets 382 (4,758)
Accounts payable (7,724) (901)
Accrued expenses 1,199 (2,624)
Worker's compensation 518 497
Income taxes (3,215) 4,143
Deferred rent 60 60
Due to shareholder (1,655) --
Net cash provided by operating activities 15,189 18,543
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (18,629)(17,810)
Reduction of short-term investments 30,554 (9,436)
Purchases of long-term investments and other (34,512) (1,825)
Purchases of other assets (787) --
Net cash (used) in investing activities (23,374)(29,071)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of capital lease obligation (11) --
Proceeds from exercise of stock options 8,142 1,705
Net cash provided by financing activities 8,131 1,705
NET INCREASE (DECREASE) IN CASH (54) (8,823)
CASH, beginning of period 232 9,034
CASH, end of period $178 $211
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