EXHIBIT 99.1
PRESS RELEASE
99(CENT) ONLY STORES(R) REPORTS EARNINGS PER SHARE OF $0.18 FOR THE FIRST
QUARTER ENDED MARCH 31, 2002, AN INCREASE OF 28.6% OVER $0.14 IN THE FIRST
QUARTER OF 2001.
CITY OF COMMERCE, CA - April 18, 2002 -- 99(cent) Only Stores(R) (NYSE:NDN)
reported earnings per share increased 28.6% to $0.18 for the first quarter of
2002, compared with earnings per share of $0.14 for the first quarter of 2001.
Gross margin for the quarter was 39.4% versus 38.5% in 2001. Retail gross
margin for the first quarter of 2002 was 41.2%, versus 41.1% in 2001. This
increase in the retail gross margin for the quarter results from improvements
related to seasonal product mix.
Operating income margin for the quarter was 11.9% versus 11.7% in 2001. Net
income increased 25.2% to $12.5 million, on total sales of $163.1 million,
compared to net income of $10.0 million on total sales of $125.0 million in the
first quarter of 2001. Operating expenses in the first quarter of 2002 were
27.5% of sales versus 26.8% for the same period in 2001. Operating expenses were
impacted by factors including a California minimum wage hike, increased credit
card processing fees and utility rate increases.
Earnings per share for the first quarter 2002 was $0.18 on net income of
$12.5 million versus $0.14 in 2001 on net income of $10.0 million, an increase
of 28.6%.
Retail sales for the quarter increased 35.8% to $149.6 million from $110.2
million in 2001. Total sales including wholesale were $163.1 million, up 30.5%
over sales of $125.0 million in 2001. Same-store-sales for the first quarter
2002 were 8.0% versus 2.9% in 2001.
Eric Schiffer, President of the Company said, "We are pleased to report
28.6% earnings per share growth for the quarter. Our objective is to continue to
open 25% new stores and to grow earnings 20% per annum. Our balance sheet
continues to remain strong with over $160 million in cash and marketable
securities and no debt. The Company opens its eleventh store for the year today
Thursday, April 18th in Mesa, Arizona."
99(cent) Only Stores(R), the nation's oldest existing one-price retailer,
operates 134 retail stores in California, NevaDA AND Arizona and a wholesale
division called Bargain Wholesale. 99(cent) Only Stores(R) emphasizes name-brand
consumables, priced AT AN excellent value, in attractively merchandised stores.
This press release contains forward-looking statements, as referenced in
the Private Securities Litigation Reform Act 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.
Page 1
99(cent) ONLY STORES
STATEMENTS OF INCOME
(Amounts in thousands except per share amounts)
(Unaudited)
Three Months Ended March 31
2002 2001
--------- ---------
Net sales:
99(cent)Only Stores $149,647 91.8% $110,212 88.2%
Bargain Wholesale 13,456 8.2% 14,758 11.8%
--------- ------ --------- ------
163,103 100.0% 124,970 100.0%
Cost of sales 98,861 60.6% 76,899 61.5%
--------- ------ --------- ------
Gross Profit 64,242 39.4% 48,071 38.5%
Selling, general and
Administrative expenses 44,922 27.5% 33,466 26.8%
--------- ------ --------- ------
Operating Income 19,320 11.9% 14,605 11.7%
Other income (expense)
Interest income, net 725 0.4% 1,335 1.1%
other 360 0.2% 360 0.3%
--------- ------ --------- ------
1,085 0.6% 1,695 1.4%
Income before income taxes 20,405 12.5% 16,300 13.1%
Provision for income taxes 7,935 4.8% 6,336 5.1%
--------- ------ --------- ------
Net Income 12,470 7.7% 9,964 8.0%
Basic earnings per share
Net income $0.18 $0.14
===== =====
Diluted earnings per share
Net income $0.18 $0.14
===== =====
Weighted average number of
Common shares outstanding:
Basic 69,558 68,403
Diluted 70,925 69,183
Page 2
99(cent) ONLY STORES
BALANCE SHEETS
(Amounts in thousands)
March 31, December 31,
2002 2001
----------- ------------
(Unaudited) (Audited)
ASSETS:
Cash $ 8,469 $ 232
Short-term investments 120,961 147,566
Receivables, net 4,607 3,523
Income tax receivable - 1,384
Inventories 67,237 66,528
Other current assets 3,224 3,886
---------- ----------
Total current assets 204,498 223,119
Property and Equipment, net 109,021 103,639
Long term investments in marketable securities 34,357 533
Deferred taxes 15,688 15,688
Other assets 10,795 9,179
---------- ----------
60,840 25,400
---------- ----------
Total assets $ 374,359 $ 352,158
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current portion of capitalized lease $41 $40
Accounts payable 14,224 15,244
Accrued expenses 10,242 7,999
Workers Compensation 6,006 5,534
Income tax payable 6,118 -
---------- ----------
Total current liabilities 36,631 28,817
Deferred rent 2,090 2,061
Capitalized lease obligation 1,627 1,637
---------- ----------
3,717 3,698
Shareholders' equity 334,011 319,643
---------- ----------
Total liabilities and shareholders' equity $ 374,359 $ 352,158
========== ==========
Page 3
99(cent) ONLY STORES
STATEMENTS OF CASH FLOWS
(Unaudited)
(Amounts in thousands)
Three Months March 31,
2002 2001
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income..................................................... $ 12,470 $ 9,964
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization.............................. 3,940 2,627
Tax benefit from exercise of non qualified
employee stock options................................... 406 -
Other...................................................... - (191)
Changes in assets and liabilities associated
with operating activities:
Accounts receivable........................................ (1,084) (17)
Inventories................................................ (709) 866
Other assets............................................... (954) 304
Accounts payable........................................... (1,020) (3,873)
Accrued expenses........................................... 2,243 (1,616)
Workers' compensation...................................... 472 198
Income taxes............................................... 7,502 7,553
Deferred rent.............................................. 29 30
--------- ---------
Net cash provided by operating activities............... 23,295 15,845
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment........................... (9,322) (12,169)
Purchases of short and long term investments.................. (7,219) (561)
--------- ---------
Net cash used in investing activities................... (16,541) (12,730)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of capital lease obligation.......................... (9) -
Proceeds from exercise of stock options....................... 1,492 229
--------- ---------
Net cash provided by financing activities............... 1,483 229
--------- ---------
NET INCREASE (DECREASE) IN CASH................................... 8,237 3,344
CASH, beginning of period......................................... 232 9,034
--------- ---------
CASH, end of period............................................... $ 8,469 $ 12,378
========= =========
NOTE TO EDITORS: 99(CENT)ONLY STORES(R)NEWS RELEASES AND INFORMATION AVAILABLE
ON THE WORLD WIDE WEB AT HTPP://WWW.99ONLY.COM
CONTACT: 99(cent)Only Stores(R), City of Commerce, California, Andy Farina, CFO,
323/881-9933--99(CENT)--
Page 4