99 Cents Only Stores Reports a 21.7% Increase in Net Income and a 20.3% Increase in EPS for the Year Ended December 31, 2002.Business Editors CITY OF COMMERCE, Calif.--(BUSINESS WIRE)--Feb. 4, 2003 99 Cents Only Stores Announces the Purchase of a Distribution Facility in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the , and Plans to Open Its First Texas Stores in Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; in June June: see month. 2003 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 for the 2002 year net income of $59.0 million, an increase of 21.7% and earnings per share of $0.83, an increase of 20.3% over 2001. Earnings per share for the fourth quarter of 2002 were $0.28, versus $0.23 for the prior year. 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:
(1) Two or more systems working together. See clustering. (2) Also called an "allocation unit" or "file allocation unit," it is some number of disk sectors that are treated as a unit. of stores will be located. "Due to devoting significant effort to accelerate the Texas entry, the Company has revised the timing of its new store openings in the first half of 2003, but still expects to meet its annual target of 38 new stores. As a result, while the Company still expects to grow EPS by 20% in 2003, the majority of this growth will be back-weighted. The Company opened two stores in January 2003 and expects to open at least six stores in the second quarter and fifteen stores in each of the third and fourth quarters. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 15 of the 38 new 2003 stores are planned for Houston, Texas. Capital costs associated with the new distribution center will be deferred until the building is placed in service. Period costs will be expensed as incurred. "We are pleased to report that our stores in our newer markets outside of Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, continue to perform well. Our rollout of milk during the latter half of 2002 to our California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). store base was an unqualified success and our newly introduced gourmet food sections have generated much publicity and excitement. Our expanding and improving selection of consumable A material that is used up and needs continuous replenishment, such as paper and toner. "The low-tech end of the high-tech field!" merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain has helped to establish 99 Cents Only Stores as a primary shopping destination for consumers of all income levels." Gross margin for the year was 40.1% compared to 39.4% in 2001 primarily due to a higher retail versus wholesale sales mix sales mix See product mix. . Retail gross margin for the year was 41.7%, a 10 basis point increase over 2001. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for 2002 (excluding depreciation) were 24.9% of sales versus 24.5%, chiefly because of a January 2002 California minimum wage hike (no California minimum wage increase is scheduled for 2003). Depreciation was 2.5% of sales versus 2.1%, due to a back-weighted store opening schedule. Fourth quarter 2002 gross margin was 40.8%, up 10 basis points over 2001. Retail gross margin for the fourth quarter was 42.1%, versus 42.7% in 2001. This change results from category mix shifts with continued focus on consumables. Operating expenses for the fourth quarter were 24.5%, compared to 23.5% in 2001. California workers compensation and labor costs in the quarter account for the majority of the increase over 2001. The workers compensation reserve was increased by $1.7 million in the quarter. Depreciation increased 20 basis points. The effective tax rate in the fourth quarter reflects the revision (programming) revision - A release of a piece of software which is not a major release or a bugfix, but only introduces small changes or new features. of previous estimate. Net income in the fourth quarter of 2002 increased 20.4% to $19.7 million on total sales of $210.7 million, compared to net income of $16.4 million on total sales of $172.9 million in 2001. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become , operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and net income were 16.4%, 14.0% and 9.4%, respectively for the quarter and 15.2%, 12.7% and 8.3%, respectively for the year. Retail sales for the year increased 27.2% to $664.0 million from $522.0 million in 2001. Total sales including wholesale were $713.9 million, up 23.5% over sales of $578.3 million in 2001. Sales per sellable square foot were $309 in 2002, versus $319 in 2001. Average sales per store open for the entire 2002 year increased to $4.75 million from $4.65 million in 2001. 99 Cents Only Stores, the nation's oldest existing one-price retailer, operates 153 retail stores in California 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 Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). 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. 99 Cents Only Stores 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 fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. 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.
99 Cents ONLY STORES
STATEMENTS OF INCOME
(Amounts in thousands except per share amounts)
Three Months Ended December 31
(Unaudited)
2002 2001
Net sales:
99 Cents Only Stores $198,476 94.2% $158,486 91.7%
Bargain Wholesale 12,237 5.8% 14,417 8.3%
210,713 100.0% 172,903 100.0%
Cost of sales 124,688 59.2% 102,576 59.3%
Gross profit 86,025 40.8% 70,327 40.7%
Selling, general and
Administrative expenses 51,534 24.5% 40,560 23.5%
Depreciation 4,941 2.3% 3,650 2.1%
Total operating expenses 56,475 26.8% 44,210 25.6%
Operating Income 29,550 14.0% 26,117 15.1%
Interest & other income (expense)
net 1,416 0.7% 1,488 0.9%
Income before income taxes 30,966 14.7% 27,605 16.0%
Provision for income taxes 11,236 5.3% 11,223 6.5%
Net income $19,730 9.4% $16,382 9.5%
Basic earnings per share
Net income $0.28 $0.24
Diluted earnings per share
Net income $0.28 $0.23
Weighted average number of
Common shares outstanding:
Basic 70,278 69,325
Diluted 71,362 70,780
Twelve Months Ended December 31
(Unaudited)
2002 2001
Net sales:
99 Cents Only Stores $663,983 93.0% $522,019 90.3%
Bargain Wholesale 49,959 7.0% 56,250 9.7%
713,942 100.0% 578,269 100.0%
Cost of sales 427,356 59.9% 350,421 60.6%
Gross profit 286,586 40.1% 227,848 39.4%
Selling, general and
Administrative expenses 178,374 24.9% 141,544 24.5%
Depreciation 17,711 2.5% 12,354 2.1%
Total operating expenses 196,085 27.4% 153,898 26.6%
Operating Income 90,501 12.7% 73,950 12.8%
Interest & other income (expense)
net 4,847 0.7% 5,931 1.0%
Income before income taxes 95,348 13.4% 79,881 13.8%
Provision for income taxes 36,374 5.1% 31,438 5.4%
Net income $58,974 8.3% $48,443 8.4%
Basic earnings per share
Net income $0.84 $0.70
Diluted earnings per share
Net income $0.83 $0.69
Weighted average number of
Common shares outstanding:
Basic 69,938 68,815
Diluted 71,181 70,009
99 Cents ONLY STORES
BALANCE SHEETS
(Unaudited)
(Amounts in thousands)
December 31, December 31,
2002 2001
ASSETS:
Cash $7,985 $232
Short-term investments 146,857 147,566
Receivables, net 2,753 3,523
Due from shareholder 1,232 -
Income tax receivable - 1,384
Inventories 83,176 66,528
Other current assets 11,957 8,465
Total current assets 253,960 227,698
Property and Equipment, net 127,560 103,639
Long term investments 37,223 533
Other assets 21,167 20,288
Total assets $439,910 $352,158
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current portion of capitalized lease $40 $40
Accounts payable 16,946 15,244
Accrued expenses 17,882 11,878
Income tax payable 3,518 -
Due to shareholder - 1,655
Total current liabilities 38,386 28,817
Deferred rent 2,210 2,061
Capitalized lease obligation 1,597 1,637
Deferred Compensation 1,102 -
4,909 3,698
Shareholders' equity 396,615 319,643
Total liabilities and
shareholders' equity $439,910 $352,158
99 Cents ONLY STORES
STATEMENTS OF CASH FLOWS
(Unaudited)
(Amounts in thousands)
Year Ended
December 31,
2002 2001
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $58,974 $48,443
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 17,692 12,354
Tax benefit from exercise of non qualified
employee stock options 4,869 6,205
Benefit for deferred income tax (3,389) (2,847)
Compensation expense for cash-less exercise of
stock options - -
Changes in assets and liabilities associated with
operating activities:
Accounts receivable 770 46
Inventories (16,649) (2,835)
Other assets 484 74
Accounts payable 1,703 2,622
Accrued expenses 3,812 672
Due to (from) shareholder (2,887) 1,655
Workers' compensation 2,192 2,770
Income taxes 4,902 (1,936)
Deferred rent 150 (81)
Net cash provided by operating activities 72,623 67,142
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (41,613) (46,888)
Purchases of short and long term investments (35,982) (35,802)
Investments in other long-term assets (363) (4,690)
Net cash used in investing activities (77,958) (87,380)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of capital lease obligation (40) (26)
Proceeds from exercise of stock options 13,128 11,462
Net cash provided by financing activities 13,088 11,436
NET INCREASE (DECREASE) IN CASH 7,753 (8,802)
CASH, beginning of period 232 9,034
CASH, end of period $7,985 $232
Note to Editors: 99 Cents Only Stores(R) news releases and information available on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.99only.com |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion