99 CENTS ONLY STORES REPORTS A 52.8% INCREASE IN NET INCOME FOR THE THIRD
QUARTER ENDED SEPTEMBER 30, 1996 WITH EARNINGS PER SHARE OF $0.24.
CITY OF COMMERCE, CA -- October 30, 1996 -- 99 Cents Only Stores
(NYSE:NDN) reported record net income for the quarter ended September 30, 1996,
of $3.6 million on net sales of $45.4 million, compared to pro forma net income
of $2.3 million on net sales of $38.1 million in the third quarter of 1995.
This represents a 52.8% increase in net income.
Earnings per share was $0.24 in the third quarter of 1996 on 14.9 million
weighted average number of common shares outstanding, compared with pro forma
earnings per share of $0.18 in the third quarter of 1995 on 12.8 million pro
forma weighted average number of common shares outstanding. This represents a
33.3% increase in earnings per share despite an additional two million shares.
Net sales increased $7.3 million or 19.2% over net sales for the third
quarter of 1995 as previously reported. Gross margins for the quarter
increased from 33.2% to 35.5% compared to the same quarter last year.
Year to date net sales and pro forma net income in 1996 increased 21.1% to
$130.8 million and 42.4% to $9.1 million, respectively, compared to net sales
and pro forma net income through the third quarter of 1995 of $108.0 million
and $6.4 million, respectively.
Year to date pro forma earnings per share was $0.66 on 13.8 million pro
forma weighted average number of common shares outstanding, compared with $0.50
for the same period in 1995 on 12.8 million pro forma weighted average number
of common shares outstanding.
Prior to May 1, 1996, the Company was treated as an S corporation for tax
purposes. The pro forma net income and pro forma earnings per share data
reflect a provision for income taxes as if the company were a C corporation for
all periods presented.
David Gold, President of the Company said, "We are pleased to announce
record net sales and earnings in our third quarter. Our expansion is
proceeding in accordance with plan."
99 Cents Only Stores, the nation's oldest existing one-price retailer,
operates 40 retail stores, all in Southern California and a wholesale division
called Bargain Wholesale. 99 Cents Only Stores emphasizes name-brand
consumables, priced at an excellent value, in clean, attractively merchandised
stores.
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99 CENTS ONLY STORES
STATEMENTS OF INCOME
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
Three Month Ended Nine Month Ended
September 30, September 30,
----------------- ----------------
1996 1995 1996 1995
---- ---- ---- ----
Net Sales:
99 Cents Only Stores $ 35,211 $ 30,096 $ 101,603 $ 86,995
Other Retail - - - 492
Bargain Wholesale 10,173 8,017 29,230 20,525
------ ------- ------- ------
45,384 38,113 130,833 108,012
COST OF SALES 29,266 25,475 86,315 72,196
Gross Profit 16,118 12,638 44,518 35,816
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 10,334 8,459 29,007 24,514
------ ------ ------ ------
Operating Income 5,784 4,179 15,511 11,302
INTEREST INCOME (EXPENSE), NET 242 (189) (10) (567)
Income before provision for
income taxes (See Note) 6,026 3,990 15,501 10,735
PROVISION FOR INCOME TAXES
(See Note) 2,474 1,665 6,355 4,311
----- ----- ----- -----
NET INCOME (See Note) $ 3,552 $ 2,325 $ 9,146 $ 6,424
===== ===== ===== =====
EARNINGS PER SHARE (See Note) $ 0.24 $ 0.18 $ 0.66 $ 0.50
==== ==== ==== ====
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING
(See Note) 14,922 12,803 13,809 12,803
====== ====== ====== ======
<FN>
Note: Income tax provisions for the three months ended September 30, 1995 and
for the 9 months ended September 30, 1995 and 1996 have been restated to give
pro forma effect for the change in tax status from an S corporation to a C
corporation.
</FN>
Note to Editors: 99 Cents Only Stores news releases and information
available on the World Wide Webb at http://www.businesswire.com/cnn/ndn.htm or
via fax by calling 888/835-0099 toll free.
CONTACT: 99 Cents Only Stores, City of Commerce, Calif.
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