99¢ Only Stores® Reports Third Quarter Sales and Preliminary Earnings Estimate
January 10 2011 - 7:00AM
Business Wire
99¢ Only Stores® (NYSE:NDN) (the "Company") today reports total
sales of $365.4 million for the third quarter of fiscal 2011 ended
December 25, 2010. This represents an increase of 1.7% over total
sales of $359.1 million for the same quarter in the prior year. The
Company’s total retail sales for the quarter were $354.1 million,
compared to $348.9 million for the same quarter last year. The
Company’s non-Texas operations, which represented 91.4% of total
retail sales for the quarter, had retail sales of $323.7 million
for the quarter compared to $319.6 million for the same quarter in
the prior year, an increase of 1.3%. The Company’s Texas operations
had retail sales for the quarter of $30.4 million, compared to
$29.3 million for the same quarter last year, an increase of
3.9%.
Eric Schiffer, CEO, commented, “Our third quarter same-store
sales decreased 0.7% primarily due to a lower average same-store
transaction size throughout the quarter compounded by the impact of
heavy rain in our major markets in December, especially during the
last week before Christmas. Additionally, an early freeze and
adverse weather conditions led to less available produce from our
suppliers which we believe negatively impacted our average
same-store transaction size. However, there were many positive
aspects of our performance during the quarter. Our same-store
transaction count increased by 0.7% for the quarter, and we view
this as an important measure of the health of our business.
Additionally, we are pleased with our holiday assortment as well as
the sales gains in our re-merchandised party section. Although we
are still in the early stages of implementation of our new store
systems, which will continue for the next two years, we are
satisfied with our progress to date, and our system support and
reliability showed material improvement.
“Of paramount importance is our ability to manage our costs
against the fluctuations in our same-store sales, as demonstrated
by our management team in the third quarter. We look forward to
discussing our third quarter operating results in more detail as
well as our plans for growth and for further enhancing our long
term profitability during our earnings conference call on February
2nd.”
The Company's overall same-store sales for the third quarter
ended December 25, 2010 decreased 0.7%. The number of
same-store-sales transactions increased 0.7% and the average
transaction size decreased to $9.59 from $9.73. The Company’s
non-Texas operations’ same-store sales decreased 0.7% for the third
quarter, while the number of same-store-sales transactions
increased 0.8% and the average transaction size decreased to $9.63
from $9.78. Same-store sales for the Company’s Texas operations
decreased 0.7% in the third quarter, with the number of
same-store-sales transactions decreasing 0.3% and the average
transaction size decreasing to $9.17 from $9.21.
For the first three quarters of fiscal 2011, total sales were
$1,045.4 million, up 2.9%, versus $1,015.9 million in the first
three quarters of the prior fiscal year. The Company’s overall
retail sales in the first three quarters of fiscal 2011 were
$1,013.9 million, up 2.9% compared to $985.6 million in the first
three quarters of the prior fiscal year. For the Company’s
non-Texas operations, retail sales in the first three quarters of
fiscal 2011 were $929.0 million, up 3.0% versus $901.8 million in
the first three quarters of the prior fiscal year. For the
Company’s Texas operations, retail sales in the first three
quarters of fiscal 2011 were $84.9 million, up 1.4%, versus $83.7
million in the first three quarters of the prior fiscal year.
Same-store sales for the first three quarters of fiscal 2011
increased 0.8% compared to the same period in the prior fiscal
year. For the Company’s non-Texas operations, same-store sales
increased 0.8% in first three quarters of fiscal 2011. Same-store
sales for the Company’s Texas operations increased 1.2% in the
first three quarters of fiscal 2011.
The gross and saleable retail square footage at the end of the
third quarter were 5.95 million and 4.68 million, respectively,
based on 280 stores. This represents an increase of 2.2% for each
of gross and saleable square footage and an increase of 2.6% in
store count over last year. Gross and saleable retail square
footage for the Company’s non-Texas stores at the end of the third
quarter were 5.14 million and 4.05 million, respectively, an
increase over last year of 1.8% for each of gross and saleable
square footage. As of December 25, 2010, the Company’s non-Texas
retail operations consisted of 246 stores compared to 241 stores as
of December 26, 2009. Gross and saleable retail square footage for
the Company’s 34 stores in Texas were 0.80 million and 0.63
million, respectively, an increase over last year of 5.0% and 5.1%,
respectively, based on 32 stores as of December 26, 2009.
Preliminary Earnings Estimate
The Company’s preliminary estimated range for Diluted Earnings
Per Share is $0.37 to $0.38 for the third quarter utilizing a tax
provision rate of approximately 37.0% for the quarter. The
Company’s third quarter financial results remain subject to review
by the Company’s independent public accounting firm. For the third
quarter of the prior year, Diluted Earnings Per Share was $0.35
utilizing a tax provision rate of 36.9%. The corresponding
preliminary estimated range for Income Before Taxes as a percentage
of sales for the third quarter is 11.4% to 11.7%, compared to 10.8%
for Income Before Taxes as a percentage of sales for the third
quarter in the prior year. Both the current third quarter estimate
and the prior year third quarter results include one-time items
approximating $2 million in pre-tax income.
About 99¢ Only Stores®
Founded over 25 years ago, 99¢ Only Stores® currently operates
280 extreme value retail stores consisting of 208 stores in
California, 34 in Texas, 26 in Arizona, and 12 in Nevada. 99¢ Only
Stores® emphasizes quality name-brand consumables, priced at an
excellent value, in convenient, attractively merchandised stores.
Over half of the Company’s sales come from food and beverages,
including produce, dairy, deli and frozen foods, along with organic
and gourmet foods. The Company’s New York Stock Exchange symbol is
NDN.
Safe Harbor Statement
We have included statements in this release 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 this
release and include statements regarding the intent, belief or
current expectations of the Company, its directors or officers with
respect to, among other things, the business and growth strategies
of the Company, results of operations and related financial
measures for the third quarter of fiscal 2011 and for the full
fiscal year 2011, new store openings, and trends affecting the
financial condition or results of operations of the Company. The
shareholders of the Company and other readers 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 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¢ Only Stores® news releases and information
available on the Company’s website at http://www.99only.com.
Contact Angela Thurstan, 323-881-1272.
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