-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LmGaKkIySVD8UgtGbsVzcBrnyBx/6YIa1NOyJl7kKWL/IlyMUpXDq4D5mEgiFXb2 bFvjJK3Gaw51nSyOq2iZvQ== 0001011438-02-000477.txt : 20020726 0001011438-02-000477.hdr.sgml : 20020726 20020726152935 ACCESSION NUMBER: 0001011438-02-000477 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20020723 ITEM INFORMATION: Other events FILED AS OF DATE: 20020726 FILER: COMPANY DATA: COMPANY CONFORMED NAME: 99 CENTS ONLY STORE CENTRAL INDEX KEY: 0001011290 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-VARIETY STORES [5331] IRS NUMBER: 952411605 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11735 FILM NUMBER: 02712083 BUSINESS ADDRESS: STREET 1: 4000 EAST UNION PACIFIC AVE CITY: CITY OF COMMERCE STATE: CA ZIP: 90023 BUSINESS PHONE: 2139808145 MAIL ADDRESS: STREET 1: 4000 EAST UNION PACIFIC AVENUE CITY: CITY OF COMMERCE STATE: CA ZIP: 90023 8-K 1 form8-k.txt SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------------------------- Form 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): July 23, 2002 99(CENT)ONLY STORES (Exact Name of Registrant as Specified in Charter) California 1-11735 95-2411605 (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.) 4000 East Union Pacific Avenue City of Commerce, California 90023 (Address of Principal Executive Offices) (323) 980-8145 (Registrant's Telephone Number) ITEM 5. OTHER EVENTS Reference is made to the press release of Registrant, issued on July 23, 2002, which contains information meeting the requirements of this Item 5, and which are incorporated herein by this reference. A copy of this press release is attached to this Form 8-K as Exhibit 99.1. Page 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. July 25, 2002 99(cent)ONLY STORES By: /S/ERIC SCHIFFER --------------------------------- Eric Schiffer President Page 3 EXHIBIT INDEX EXHIBITS 99.1 Press Release dated July 23, 2002. - ------------------------------------------------------------------------------ Page 4 EX-99 3 exhibit99-1.txt EXHIBIT 99.1 PRESS RELEASE 99 Cents Only Stores Reports Earnings of $13.5 Million in the Second Quarter Ended June 30, 2002, an Increase of 23.7% Over Last Year. Earnings Per Share for the Quarter Was $0.19 Compared to $0.16 in 2001. CITY OF COMMERCE, Calif.--(BUSINESS WIRE)--July 23, 2002-- 99 Cents Only Stores(R) (NYSE:NDN - News) reported net income of $13.5 million for the quarter ended June 30, 2002 up 23.7% from $10.9 million in the second quarter of 2001. Earnings per share was $0.19 in the second quarter of 2002, compared with earnings per share of $0.16 in the second quarter of 2001, an 18.8% increase despite an additional 2.1 million shares outstanding. Total sales in the second quarter 2002 increased 23.1% to $167.9 million compared to net sales of $136.4 million in the second quarter of 2001. Retail sales for the second quarter were $155.4 million, up $32.9 million or 26.9% from sales of $122.5 million in 2001. Same-store-sales increased 2.1% in the second quarter of 2002. Earnings per share for the six months ended June 30, 2002 increased 23.3% to $0.37 compared to $0.30 in 2001. Total sales for the six months ended June 30, 2002 increased 26.6%. Same-store-sales in the second quarter were adversely affected by this year's shift in the Easter selling season from April 2001 in the second quarter to March 2002 in the first quarter. Same-store-sales for the first six months of 2002 increased 5.0%. Gross margin for the second quarter of 2002 was 40.2% versus 39.0% in the second quarter of 2001. Retail gross margin for the quarter was 41.8% versus 41.2% in 2001. This improvement in gross margin is due to favorable buys of both close-outs and re-orderable product. Selling, general and administrative expenses were 27.7% of sales, compared with 26.9% in 2001. Included in these expenses were a 40 basis point increase in depreciation costs, a 20 basis point increase in utility costs and a 20 basis point increase in labor costs. Eric Schiffer, President of the Company said, "We are pleased to announce a 23.7% increase in net income and to meet the public's expectation for earnings during our second quarter. We are excited with how our stores in new markets are performing including Northern and Central California as well as Phoenix and Las Vegas. We plan to open fifteen additional stores this year with six to seven stores opening in the third quarter. The Company expects to continue to open 25% new stores per year." Page 5 99 Cents Only Stores(R), the nation's oldest existing one-price retailer, operates 139 retail stores in Southern and Central California, Las Vegas, Nevada and Phoenix, Arizona and a wholesale division called Bargain Wholesale. The Company will open its seventeenth 99 Cents Only Stores for the year on July 25, 2002 in Phoenix, Arizona. 99 Cents 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. Note to Editors: 99 Cents Only Stores(R)news releases and information available on the World Wide Web at http://www.99only.com. 99 CENTS ONLY STORES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Amounts in thousands except per share amounts)
Three Months Ended June 30 2002 2001 Net sales: 99 Cents Only Stores $155,436 92.6% $122,522 89.8% Bargain Wholesale 12,425 7.4% 13,852 10.2% ------------------------------------ 167,861 100.0% 136,374 100.0% Cost of sales 100,298 59.8% 83,195 61.0% ------------------------------------ Gross Profit 67,563 40.2% 53,179 39.0% Selling, general and administrative expenses 46,539 27.7% 36,714 26.9% ------------------------------------ Operating Income 21,024 12.5% 16,465 12.1% Other income (expense) interest income, net 1,211 0.7% 1,451 1.0% ------------------------------------ Income before income taxes 22,235 13.2% 17,916 13.1% Provision for income taxes 8,717 5.2% 6,987 5.1% ------------------------------------ Net income $13,518 8.0% $10,929 8.0% ==================================== Basic earnings per share Net income $0.19 $0.16 ========= ========= Diluted earnings per share Net income $0.19 $0.16 ========= ========= Weighted average number of Page 6 common shares outstanding: Basic 69,888 68,506 Diluted 71,275 69,499
Six Months Ended June 30 2002 2001 Net sales: 99 Cents Only Stores $305,083 92.2% $232,734 89.1% Bargain Wholesale 25,882 7.8% 28,609 10.9% ------------------------------------ 330,965 100.0% 261,343 100.0% Cost of sales 199,159 60.2% 160,094 61.3% ------------------------------------ Gross Profit 131,806 39.8% 101,249 38.7% Selling, general and administrative expenses 91,462 27.6% 70,180 26.8% ------------------------------------ Operating Income 40,344 12.2% 31,069 11.9% Other income (expense) interest income, net 2,296 0.7% 3,146 1.2% ------------------------------------ Income before income taxes 42,640 12.9% 34,215 13.1% Provision for income taxes 16,652 5.0% 13,323 5.1% ------------------------------------ Net income $25,988 7.9% $20,892 8.0% ==================================== Basic earnings per share Net income $0.37 $0.31 ========= ========= Diluted earnings per share Net income $0.37 $0.30 ========= ========= Weighted average number of common shares outstanding: Basic 69,726 68,455 Diluted 71,100 69,341
99 CENTS ONLY STORES BALANCE SHEETS (Audited) (Amounts in thousands) June 30, December 31, June 30, 2002 2001 2001 ------------------------------------- ASSETS: Cash $178 $232 $211 Short-term investments 117,012 147,566 120,433 Receivables, net 2,977 3,523 3,627 Income tax receivable 4,599 1,384 -- Inventories 78,744 66,528 68,606 Other current assets 3,504 3,886 3,913 ------------------------------- Page 7 Total current assets 207,014 223,119 196,790 Property and Equipment, net 114,087 103,639 81,191 Long term investments in marketable securities 35,045 533 1,300 Other assets 26,604 24,867 22,649 ------------------------------- Total assets $382,750 $352,158 $301,930 =============================== LIABILITIES AND SHAREHOLDERS' EQUITY: Current portion of capitalized lease $ 41 $ 40 $ -- Accounts payable 7,520 15,244 11,721 Accrued expenses 13,595 11,878 6,309 Income tax payable -- -- 4,696 Due to shareholder -- 1,655 -- ------------------------------- Total current liabilities 21,156 28,817 22,726 Deferred compensation 950 -- -- Deferred rent 2,120 2,060 2,202 Capitalized lease obligation 1,627 1,637 -- ------------------------------- 4,697 3,697 2,202 Shareholders' equity 356,897 319,644 277,002 ------------------------------- Total liabilities and shareholders' equity $382,750 $352,158 $301,930 ===============================
99 CENTS ONLY STORES STATEMENTS OF CASH FLOWS (Unaudited) (Amounts in thousands)
Six months ended June 30, 2002 2001 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $25,988 $20,892 Adjustment to reconcile net income to net cash provided by operating activities: Depreciation and amortization 8,199 5,524 Other (15) (190) Page 8 Tax benefit from exercise of non-qualified employee stock options 3,122 872 Changes in assets and liabilities associated with operating activities: Accounts receivable 546 (59) Inventories (12,216) (4,913) Other assets 382 (4,758) Accounts payable (7,724) (901) Accrued expenses 1,199 (2,624) Worker's compensation 518 497 Income taxes (3,215) 4,143 Deferred rent 60 60 Due to shareholder (1,655) -- Net cash provided by operating activities 15,189 18,543 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (18,629)(17,810) Reduction of short-term investments 30,554 (9,436) Purchases of long-term investments and other (34,512) (1,825) Purchases of other assets (787) -- Net cash (used) in investing activities (23,374)(29,071) CASH FLOWS FROM FINANCING ACTIVITIES: Payments of capital lease obligation (11) -- Proceeds from exercise of stock options 8,142 1,705 Net cash provided by financing activities 8,131 1,705 NET INCREASE (DECREASE) IN CASH (54) (8,823) CASH, beginning of period 232 9,034 CASH, end of period $178 $211
- --------------- Contact: 99 Cents Only Stores(R), City of Commerce, Calif. Andy Farina, 323/881-9933 -----END PRIVACY-ENHANCED MESSAGE-----