Exhibit 99.1
99 CENTS ONLY STORES(R) UPDATES TIMING OF 2004 EARNINGS RELEASE
CITY OF COMMERCE, CA - April 27, 2005 - 99 Cents Only Stores(R) (NYSE:NDN)
reports that it will not be releasing its fourth quarter and year-end 2004
earnings by April 29, 2005, as it had previously anticipated. The Company is
analyzing and continuing to discuss certain depreciation issues related to
prior periods with its current and former external auditors to determine whether
adjustments to the useful lives of certain building improvements to periods
longer than initially assigned may be required. Such adjustments to the useful
lives may result in adjustments to depreciation expense in prior periods and
restatement of prior periods' financial statements. It is anticipated that any
adjustment, if made, will have a positive impact on prior periods' net income.
In addition, as noted in the Company's press release earlier this month, as
a result of a review the Company undertook, in consultation with its current and
prior external auditors, and in response to views expressed by the Chief
Accountant of the Securities and Exchange Commission in a February 7, 2005
letter to the American Institute of Certified Public Accountants regarding
certain accounting operating lease issues and their application under generally
accepted accounting principles, the Company will be restating its financial
statements for 2002, 2003, and the first three quarters of 2004 for its
accounting for operating lease rent holidays. The final amount of this
adjustment is still under review, but the Company presently anticipates that
this adjustment will result in a reduction of net income, net of tax effects, of
approximately $200,000 to $300,000 for fiscal 2002, $500,000 to $700,000 for
fiscal 2003, and approximately $50,000 to $100,000 per quarter for the first
three quarters of 2004. In addition, the Company is reviewing its method of
accounting for leasehold improvements funded by either landlord incentives or
allowances under operating leases (tenant improvement allowances), which may
also require restatement of prior period financial statements.
The above mentioned adjustments and potential adjustments are non-cash and
have no significant impact on the Company's cash flows, cash position, revenues
or same-store-sales.
The Company currently anticipates releasing earnings for the fourth quarter
and year-end 2004 by late May or early June 2005, and filing its Form 10-K
shortly thereafter. Additional time may be needed, however, due to the review
process required by the Company's current and former external auditors regarding
the issues described above. The Company looks forward to discussing its earnings
and results of operations for 2004 with the investment community immediately
after the earnings release.
The Company has not established a definitive date for its 2005 first
quarter earnings release and the filing of its first quarter 10-Q. This will
depend primarily on the timing of the Company's release of its fourth quarter
and year-end 2004 earnings, and the filing of its
2004 10-K. In addition, the Company's annual shareholder meeting which is
usually held in mid June, will need to be delayed as a result of the Company's
late 2004 10-K filing. The Company will provide its shareholders with the date
of the shareholder meeting as soon as practical.
99 Cents Only Stores(R), the nation's oldest existing one-price retailer,
operates 223 retail stores, in California, Texas, Arizona and Nevada and a
wholesale division called Bargain Wholesale. 99 Only Stores(R) emphasizes
name-brand consumables priced at an excellent value in attractively merchandised
stores, where nothing is over 99 .
We have included statements that constitute "forward-looking statements"
within the meaning of Section 21E of the Securities Exchange Act and Section 27A
of the Securities Act. The words "expect," "estimate," "anticipate,"
"predict," "believe" and similar expressions and variations thereof are intended
to identify forward-looking statements. Such statements appear in a number of
places in this release and include statements regarding the intent, belief or
current expectations of 99 Cents Only Stores (the " Company"), its directors or
officers with respect to, among other things, the status of the Company's
filings with the Securities and Exchange Commission and the review of certain
matters related to its financial statements, including the restatement or
potential restatement thereof. The shareholders of the Company are cautioned not
to put undue reliance on such forward-looking statements. Such forward-looking
statements are not guarantees of future performance and involve risks and
uncertainties, and actual results may differ materially from those projected in
this release as a result of additional information or factors that we or our
external auditors may identify as we complete our review of the matters
addressed herein and as our external auditors complete their review of these
matters, and for the reasons, among others, discussed in the reports and other
documents the Company files from time to time with the Securities and Exchange
Commission, including the risk factors contained in the Section - "Management's
Discussion and Analysis of Financial Condition and Results of Operations" of the
Company's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. The
Company undertakes no obligation to publicly revise these forward-looking
statements to reflect events or circumstances that arise after the date hereof.
Note to Editors: 99 Cents Only Stores(R) news releases and information available
on the World Wide Web at htpp://www.99only.com
CONTACT: 99 Cents Only Stores(R), City of Commerce, California, Jeff Kniffin,
CFO, 323/881-1239
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