-----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, UybRNmBf2i9WWfHPw1Bx1UeA0sZoZsYqY4a0fTW4yQ48oLiYQTLKyeJV4AgS99l8 hoTVJ2LhC3Uv/CYS6q3zGQ== 0001011438-97-000042.txt : 19970410 0001011438-97-000042.hdr.sgml : 19970410 ACCESSION NUMBER: 0001011438-97-000042 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970408 ITEM INFORMATION: Other events FILED AS OF DATE: 19970409 SROS: NYSE 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: 97576791 BUSINESS ADDRESS: STREET 1: 4000 EAST UNION PACIFIC AVE CITY: CITY OF COMMERCE STATE: CA ZIP: 90023 BUSINESS PHONE: 2135825999 MAIL ADDRESS: STREET 1: 4000 EAST UNION PACIFIC AVENUE CITY: CITY OF COMMERCE STATE: CA ZIP: 90023 8-K 1 FORM 8-K 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): March 18, 1997 99 CENTS 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) (213) 980-8145 (Registrant's Telephone Number) PAGE 1 ITEM 5. OTHER EVENTS ____________ Reference is made to the press release of Registrant, issued on March 18, 1997, which contains information meeting the requirements of this Item 5, and which is 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. April 7, 1997 99 CENTS ONLY STORES By: /s/Eric Schiffer Senior Vice President Finance and Operations PAGE 3 EXHIBIT INDEX EXHIBITS PAGE NUMBER ________ ___________ 99.1 Press Release dated March 18, 1997. PAGE 4 EX-99.1 2 PRESS RELEASE 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 -----END PRIVACY-ENHANCED MESSAGE-----