99 CENTS ONLY STORES(R) REPORTS A 43.7% INCREASE IN NET INCOME
FOR THE FOURTH QUARTER ENDED DECEMBER 31, 1996 WITH RECORD EARNINGS
PER SHARE OF $0.31. THE COMPANY ALSO REPORTED NET INCOME FOR THE
YEAR ENDED DECEMBER 31, 1996 INCREASED 42.8% WITH RECORD EARNINGS
PER SHARE OF $0.97.
CITY OF COMMERCE, CA -- March 18, 1997 -- 99 CENTS Only
Stores(R) (NYSE:NDN) reported record net income for the quarter ended
December 31, 1996, of $4.6 million on record net sales of $52.8 million,
compared to net income of $3.2 million on net sales of $44.8 million in
1995. This represents a 43.7% increase in net income. Net income margin
increased to 8.6% from 7.1% in 1995.
Earnings per share was $0.31 in the fourth quarter of 1996 on
14.9 million weighted average number of common shares outstanding,
compared with earnings per share of $0.25 in the fourth quarter of 1995
on 12.8 million weighted average number of common shares outstanding. This
represents a 24.0% increase in earnings per share despite an additional 2.1
million shares outstanding.
Net sales in the fourth quarter increased $8.0 million or 17.8% over
net sales for the fourth quarter of 1995 as previously reported.
Gross margin for the fourth quarter increased to 34.5% from 33.1% in the
same quarter last year. This change is primarily due to favorable
merchandise cost factors. Selling, general and administrative expenses
were 20.2% of sales compared to 20.7% in 1995. Operating margin for the
quarter increased to 14.3% from 12.4% in 1995.
For the year ended December 31, 1996 earnings per share was
$0.97 on 14.1 million weighted average number of common shares outstanding,
compared with $0.75 in 1995 on 12.8 million weighted average number of
common shares outstanding. This represents a 29.3% increase in earnings
per share despite an additional 1.3 million shares outstanding.
Net sales for the year ended December 31, 1996 increased
$30.8 million or 20.2% over net sales in 1995. Gross margin for the year
was 34.2% of sales compared to 33.2% for 1995. This change is
primarily due to favorable merchandise cost factors. Selling, general and
administrative expenses were 21.6% of sales compared to 22.1% in 1995.
Operating margin increased to 12.6% from 11.0% in 1995.
David Gold, President of the Company said, "We are pleased to
announce record earnings and net sales in our fourth quarter and
for the year. Our expansion is proceeding in accordance with plan. The
Company plans to aggressively open new stores at an annual growth rate of
at least 20%."
99 Only Stores(R), the nation's oldest existing one-price
retailer, operates 44 retail stores, all in Southern California and a
wholesale division called Bargain Wholesale. 99 CENTS Only Stores(R)
emphasizes name-brand consumables, priced at an excellent value, in clean,
attractively merchandised stores.
PAGE 1
99 CENTS ONLY STORES
STATEMENTS OF INCOME
(Amounts in thousands except per share amounts)
[CAPTION]
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1996 1995 1996 1995
Net Sales:
99 Cents Only Stores $41,559 $35,003 $143,163 $121,998
Other Retail - - - 492
Bargain Wholesale 11,252 9,812 40,480 30,337
------- ------- -------- --------
52,811 44,815 183,643 152,827
COST OF SALES 34,608 29,964 120,922 102,160
------- ------ ------- --------
Gross Profit 18,203 14,851 62,721 50,667
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 10,684 9,295 39,692 33,809
-------- ------- ------- -------
Operating Income 7,519 5,556 23,029 16,858
INTEREST INCOME (EXPENSE), NET 136 (188) 126 (755)
Income before provision for
income taxes (See Note) 7,655 5,368 23,155 16,103
PROVISION FOR INCOME TAXES 3,099 2,198 9,453 6,509
(See Note) -------- ------- ------- -------
NET INCOME (See Note) $4,556 $3,170 $13,702 $9,594
======= ======= ======= =======
EARNINGS PER SHARE (See Note) $0.31 $0.25 $0.97 $0.75
======= ======= ======== =======
WEIGHTED AVERAGE
NUMBER OF COMMON SHARES
OUTSTANDING (See Note) 14,937 12,803 14,079 12,803
======= ======= ======== ======
Note: Income tax provisions for the three months ended December 31,
1995 and for the year ended December 31, 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.
PAGE 2
99 CENTS ONLY STORES
BALANCE SHEETS
(Amounts in thousands)
December 31,
ASSETS: 1996 1995
------- -------
Cash $ 3,375 $ 3,057
Short Term Investments 27,619 0
Receivables, net 1,561 1,360
Inventory 36,933 34,313
Other current assets 323 324
------ ------
Total current assets 69,811 39,054
Property and Equipment, net 23,073 17,787
Other Assets 6,113 757
------ ------
Total Assets $ 98,997 $57,598
======== =======
LIABILITIES & SHAREHOLDER EQUITY:
Current portion of capitalized lease $ 656 $ 612
Accounts payable 6,577 5,750
Accrued expenses 3,653 3,906
Other current liabilities 103 96
--- --
Total current liabilities 10,989 10,364
Capitalized lease obligation 8,709 9,365
Deferred rent 1,294 1,346
Accrued Interest 1,500 965
----- ------
Total long-term liabilities 11,503 11,676
Shareholder equity 76,505 35,558
------ ------
Total Liabilities and shareholder equity $ 98,997 $57,598
======== ========
Note to Editors: 99 Cents Only Stores(R) news releases and information
available on the World Wide Web at htpp://www.businesswire.com/cnn/ndn.htm
or via fax by calling 888/835-0099 toll free.
CONTACT: 99 Cents Only Stores(R), City of Commerce, Calif.
Eric Schiffer, senior vice president-finance,
213/881-9912