CITY OF COMMERCE, Calif.,
May 25, 2011 /PRNewswire/ --
99 Cents Only Stores® (NYSE:NDN) (the
"Company") announced its financial results for the fourth quarter
and full-year fiscal 2011 ended April 2,
2011. The Company's fiscal 2011 began on March 28, 2010 and ended on April 2, 2011, and consisted of 53 weeks, with
one additional week included in our fourth quarter. The Company
plans to file its Annual Report on Form 10-K for fiscal 2011
tomorrow, May 26, 2011.
(Logo:
http://photos.prnewswire.com/prnh/20110214/LA47195LOGO-a)
Highlights for the fourth quarter of fiscal 2011 compared to the
fourth quarter of fiscal 2010:
- The Company's retail sales for the fourth quarter of fiscal
2011, a 14-week period, were $366.4
million, compared to $328.6
million for the fourth quarter of fiscal 2010, a 13-week
period. The additional week included in the fourth quarter of
fiscal 2011 contributed an additional $26.9
million of retail sales. Same-store sales, calculated on a
comparable 13-week period, increased 0.5%
- Consolidated gross margin decreased by 120 basis points to
39.9% of sales
- Product cost increased by 50 basis points to 57.1%
- Shrinkage was higher by 50 basis points at 2.8%
- Other items in cost of sales increased by 20 basis points to
0.2%
- Consolidated operating expenses decreased by 130 basis points
to 30.6% of sales
- Retail operating costs decreased 30 basis points to 22.2%
- Distribution and transportation costs decreased 10 basis points
to 4.8%
- Corporate G&A costs decreased 10 basis points to 3.3%
- Other operating expenses decreased 80 basis points to 0.3%
- Consolidated Income Before Taxes increased to $28.1 million, or 7.4% of revenues, from
$24.8 million, or 7.3% of
revenues
- Consolidated net income increased by $1.0 million to $17.9 million, or $0.25 per diluted share, versus $16.9 million in the prior year, or $0.24 per diluted share; the effective tax
provision rate increased to 36.3% from 31.9% for the fourth quarter
in the prior year
Eric Schiffer, CEO of
99 Cents Only Stores®, stated, "We
are pleased with the continued progress of our long-term
operational improvement programs. Continuous improvement in all
areas of our cost structure has enabled us to achieve a pre-tax
profit margin of 7.4% for the fourth quarter of fiscal 2011 versus
7.3% for the same quarter in the prior year, and 8.3% for the full
fiscal year versus 6.9% for the prior year. Despite continued
improvement in our pre-tax profit margin, our net income as a
percentage of sales declined for the fourth quarter to 4.7% versus
5.0% last year. This percentage decline was primarily due to
an increase in the effective tax rate from 31.9% of pre-tax income
to 36.3% of pre-tax income, primarily due to one-time tax benefits
in the fourth quarter of fiscal 2010. We look forward to
further discussing our results on today's earnings release
conference call."
The details for participating in today's conference call can be
found following the financial discussion.
CONSOLIDATED RESULTS (including Non-Texas and Texas operations)
Total consolidated sales for the fourth quarter of fiscal 2011,
a 14-week period, were $378.5 million
compared to net sales of $339.3
million for the fourth quarter of fiscal 2010, a 13-week
period. The additional week included in the fourth quarter of
fiscal 2011 contributed an additional $27.9
million of total sales. Same-store sales for the fourth
quarter of fiscal 2011, calculated on a comparable 13-week period,
increased 0.5% versus the fourth quarter of fiscal 2010 despite a
negative effect from a change in the timing of Easter sales.
The fourth quarter of fiscal 2010 included the second and
third weeks prior to Easter, whereas the last week of the fourth
quarter of fiscal 2011 was four weeks prior to Easter.
Consolidated gross profit for the fourth quarter of fiscal 2011
was $150.9 million, compared to
$139.4 million for the fourth quarter
of the prior fiscal year. The Company's consolidated gross
profit margin was 39.9% for the fourth quarter of fiscal 2011
versus 41.1% for the fourth quarter of the prior fiscal year.
Shrinkage was 2.8% of net sales for the fourth quarter of fiscal
2011 compared to 2.3% for the fourth quarter of fiscal 2010.
Adjustments to reduce inventory reserves contributed to an
unusually low shrinkage rate during the fourth quarter of fiscal
2010. Additionally, cost of products sold increased to 57.1%
of net sales for the fourth quarter of fiscal 2011 compared to
56.6% of net sales for the fourth quarter of fiscal 2010 primarily
due to merchandise cost increases. The remaining change was mainly
due to an increase in freight costs by 30 basis points for the
fourth quarter of fiscal 2011, which was partially offset by
decreases in other less significant items included in cost of
sales.
Operating expenses were $115.7
million, or 30.6% of consolidated sales, for the fourth
quarter of fiscal 2011 versus $108.3
million, or 31.9% of sales, for the fourth quarter of the
prior fiscal year. The Company's improved operating expense
ratio is a result of across-the-board decreases in the components
of operating expense as a percentage of sales. A primary
driver of this improvement was lower payroll-related expenses as a
result of improvement in labor productivity and a reduction in
equity-based compensation expenses.
Consolidated operating income for the fourth quarter of fiscal
2011 was $27.9 million, compared to
$24.4 million for the fourth quarter
of fiscal 2010. Operating income as a percentage of sales
increased 20 basis points to 7.4% for the fourth quarter of fiscal
2011 versus 7.2% for the fourth quarter of last year.
Net income for the fourth quarter of fiscal 2011 increased to
$17.9 million, or $0.25 per diluted share, compared to net income
of $16.9 million, or $0.24 per diluted share, for the fourth quarter
of fiscal 2010. Net income as a percentage of sales declined
to 4.7% versus 5.0% in the same quarter last year due to an
increase in the effective tax provision rate from 31.9% to 36.3% of
Income Before Taxes, primarily due to one-time tax benefits in the
fourth quarter of fiscal 2010 associated with the expiration of the
statutes of limitations for uncertain tax positions.
For the full fiscal year ended April 2,
2011, a 53-week period, net sales were $1,423.9 million, compared to $1,355.2 million in fiscal 2010, a 52-week
period. Net retail sales increased to $1,380.4 million, compared to $1,314.2 million for fiscal 2010, and included
the benefit of an additional week in the fourth quarter of fiscal
2011 which contributed an additional $26.9
million of retail sales. Annual same-store sales,
calculated on a comparable 52-week period, increased 0.7% in fiscal
2011 compared to fiscal 2010. Net income for fiscal 2011 was
$74.3 million, or $1.05 per diluted share, compared to net income
of $60.4 million, or $0.87 per diluted share, in fiscal 2010.
The fiscal 2011 net income results include proceeds from a
legal settlement from a third party administrator related to
workers' compensation of approximately $2.2
million in the third quarter of fiscal 2011. The fiscal 2010
net income results include net lease termination and closing costs
of approximately $2.5 million.
During fiscal 2011, the Company opened eleven stores, with six
in California, two in Arizona and three in Texas, and closed one store in California upon expiration of its lease.
The Company currently operates 285 stores, with 211 stores in
California, 35 in Texas, 27 in Arizona, and 12 in Nevada.
MANAGEMENT ANALYSIS OF CONSOLIDATED OPERATIONS
The Company will report the results of its non-Texas operations on a consolidated basis with
its Texas operations in accordance
with GAAP in its Annual Report on Form 10-K for fiscal 2011. The
Company is also providing a management analysis in this release of
its quarterly operating results including more detailed expense
information and separate analyses for non-Texas and Texas operations. Analysis and
reconciliation to GAAP consolidated results is shown in Table 1 and
Table 2 at the end of this release. The Company believes it
is meaningful for investors to review an analysis of its results of
operations separately for non-Texas and Texas operations in addition to its
consolidated results while the cost structure of its Texas operations is still materially different
from the cost structure of its overall financial results. The
Company's non-Texas operations
comprise all of its operations in California, Arizona, and Nevada and generate approximately 92% of its
retail sales revenue. The analysis for Texas operations provided in Table 1 for the
fourth quarter of fiscal 2011 and fiscal 2010 and also in Table 2
for fiscal year 2011 and 2010, includes only revenues and expenses
incurred directly in the Texas
operations, with no allocation of costs incurred in the
California distribution centers or
corporate offices; these unallocated, indirect costs are not
material to non-Texas results but
may be material to Texas results.
During fiscal 2010, Texas
stores were operated under unusual conditions, with 11 stores
closed during the first quarter and one store closed in the second
quarter, and thus the comparison of fiscal 2011 quarterly results
to fiscal 2010 quarterly results is not indicative of future
comparisons for the ongoing operations of the 35 stores that
currently remain open. The non-GAAP financial measures in
Table 1 and Table 2 should be viewed in addition to, and not as an
alternative to, the Company's consolidated financial statements
prepared in accordance with GAAP.
Fourth Quarter Management Analysis of Non-Texas Operations
Highlights for the fourth quarter of fiscal 2011, a 14-week
period, versus the fourth quarter of fiscal 2010, a 13-week
period:
- Retail sales for the Company's non-Texas retail operations were $336.8 million, compared to $302.1 million. Same-store sales,
calculated on a comparable 13-week period, increased 0.7%
- Non-Texas gross margin
decreased 50 basis points to 40.3% of sales
- Product cost increased 40 basis points to 57.0%
- Shrinkage decreased 10 basis points to 2.7%
- Non-Texas operating expenses
decreased 90 basis points to 30.5% of sales
- Retail operating costs decreased 30 basis points
- Distribution and transportation costs increased 10 basis points
- Corporate G&A costs decreased 20 basis points
- Other operating expenses decreased 50 basis points
- Non-Texas operating income
increased to $27.5 million, or 7.9%
of sales, from $23.5 million, or 7.6%
of sales
For the Company's non-Texas
operations compared to its consolidated results, non-Texas gross margin was 40 basis points higher
at 40.3% and operating expenses were 10 basis points lower at
30.5%, resulting in an operating income contribution from
non-Texas operations of 7.9%
versus consolidated operating income of 7.4%.
The non-Texas operating income
contribution for the fourth quarter of fiscal 2011 was $27.5 million, an operating margin of 7.9% of
sales, compared to operating income of $23.5
million and an operating margin of 7.6% of sales for
non-Texas for the same quarter of
fiscal 2010, an improvement of 30 basis points.
Fourth Quarter Management Analysis of Texas Operations
For the Company's Texas
operations, the fourth quarter fiscal 2011 operating income was
$0.4 million, compared to operating
income of $0.9 million for the fourth
quarter of fiscal 2010. The decrease in Texas operating income for the current quarter
versus the same quarter last year was primarily due to an increase
in merchandise purchase costs and the absence of an adjustment to
our shrink reserves further described below. Texas continues to deliver a positive cash
contribution.
Texas operating results for the
fourth quarter of fiscal 2010 included a one-time reduction in
shrink reserves of $1.8 million based
on a shrink analysis performed during that quarter. Texas
operating results for the fourth quarter of fiscal 2010 also
included lease termination costs of approximately $1.1 million relating to the closing of some of
the Company's Texas stores.
OUTLOOK
The Company believes that revenue growth in fiscal 2012 will
primarily result from new store openings and increases in
same-store sales. For fiscal 2012, the Company expects same-store
sales to be positive in low single digits and plans to open at
least 16 stores with most of its new stores expected to be opened
in California. The first new
stores should open in July and the majority of the store openings
will be in the second half of fiscal 2012.
CASH AND LIQUIDITY
As of the end of the fourth quarter of fiscal 2011, the Company
held $212.9 million in cash and short
and long-term marketable securities, and had no debt. The
inventories at the end of the fourth quarter of fiscal 2011 were
$191.5 million versus $171.2 at the end of fourth quarter of fiscal
2010. The increase in inventories was primarily due to growth
in the number of stores and increased in-stock levels at the
stores.
CONFERENCE CALL DETAILS
The Company's conference call to discuss its fiscal 2011 fourth
quarter and the other matters described in this release is
scheduled for today, Wednesday, May 25,
2011 at 1:30 p.m. Pacific
Time. You can participate in the live call by dialing
(888) 771-4371 from the U.S.A. and
(847) 585-4405 from international locations and entering
confirmation code 29786462. Please phone in approximately 9
minutes before the call is scheduled to begin and hold for a
ConferencePlus operator to assist you. Please inform the
operator that you are calling in for 99
Cents Only Stores' fourth quarter fiscal 2011 earnings
release conference call, and be prepared to provide the operator
with your name, company name, and position if requested. A
telephone replay will be available approximately two hours after
the call concludes and will be available through Wednesday, June 8, 2011, by dialing (888)
843-7419 from the United States,
or (630) 652-3042 from international locations, and entering
confirmation code 29786462.
A copy of this earnings release and any other financial and
statistical information about the period to be presented in the
conference call will be available prior to the call at the section
of the Company's website entitled "Investor Relations" at
www.99only.com.
99 CENTS
ONLY STORES
CONSOLIDATED
BALANCE SHEETS
(Amounts in
thousands, except share data)
|
|
|
|
|
April
2,
2011
|
March 27,
2010
|
|
ASSETS
|
|
|
|
Current Assets:
|
|
|
|
Cash
|
$
16,723
|
$
19,877
|
|
Short-term
investments
|
184,929
|
155,657
|
|
Accounts
receivable, net of allowance for doubtful accounts of $258 and $501
as of April 2, 2011 and March 27, 2010, respectively
|
1,655
|
2,607
|
|
Income taxes
receivable
|
15,901
|
4,985
|
|
Deferred income
taxes
|
30,049
|
36,419
|
|
Inventories, net
|
191,535
|
171,198
|
|
Other
|
11,213
|
4,978
|
|
|
|
|
|
Total current
assets
|
452,005
|
395,721
|
|
Property and equipment,
net
|
313,852
|
278,858
|
|
Long-term deferred income
taxes
|
24,608
|
34,483
|
|
Long-term investments in
marketable securities
|
11,232
|
14,774
|
|
Assets held for sale
|
7,356
|
7,356
|
|
Deposits and other assets
|
15,162
|
14,794
|
|
|
|
|
|
Total assets
|
$
824,215
|
$
745,986
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
Current Liabilities:
|
|
|
|
Accounts payable
|
$
45,163
|
$
42,593
|
|
Payroll and
payroll-related
|
15,598
|
15,097
|
|
Sales tax
|
6,544
|
5,635
|
|
Other accrued
expenses
|
18,881
|
21,398
|
|
Workers' compensation
|
42,430
|
47,023
|
|
Current portion of capital
lease obligation
|
75
|
70
|
|
|
|
|
|
Total current
liabilities
|
128,691
|
131,816
|
|
Deferred rent
|
8,678
|
8,844
|
|
Deferred compensation
liability
|
4,924
|
4,274
|
|
Capital lease obligation, net of
current portion
|
373
|
449
|
|
Other liabilities
|
—
|
181
|
|
|
|
|
|
Total liabilities
|
142,666
|
145,564
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
Shareholders' Equity:
|
|
|
|
Preferred
stock, no par value – authorized, 1,000,000 shares; no shares
issued or outstanding
|
—
|
—
|
|
Common
stock, no par value – authorized, 200,000,000 shares; issued and
outstanding, 70,327,068 shares at April 2, 2011 and 69,556,930
shares at March 27, 2010
|
253,039
|
246,353
|
|
Retained earnings
|
428,836
|
354,528
|
|
Other comprehensive
loss
|
(326)
|
(459)
|
|
|
|
|
|
Total shareholders'
equity
|
681,549
|
600,422
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
824,215
|
$
745,986
|
|
|
|
|
|
|
|
|
|
|
99 CENTS ONLY
STORES
CONSOLIDATED
STATEMENTS OF INCOME
(Amounts in
thousands, except per share data)
|
|
|
|
|
Years
Ended
|
|
|
April 2,
2011
|
March 27,
2010
|
March 28,
2009
|
|
|
(53
Weeks)
|
(52
Weeks)
|
(52
Weeks)
|
|
|
|
|
|
|
Net Sales:
|
|
|
|
|
99 Cents Only
Stores
|
$ 1,380,357
|
$ 1,314,214
|
$ 1,262,119
|
|
Bargain Wholesale
|
43,521
|
40,956
|
40,817
|
|
|
|
|
|
|
Total sales
|
1,423,878
|
1,355,170
|
1,302,936
|
|
Cost of sales (excluding
depreciation and amortization expense shown separately
below)
|
842,756
|
797,748
|
791,121
|
|
|
|
|
|
|
Gross profit
|
581,122
|
557,422
|
511,815
|
|
Selling, general and
administrative expenses:
|
|
|
|
|
Operating expenses
(includes asset impairment of $0, $431 and $10,355 for the years
ended April 2, 2011, March 27, 2010 and March 28,
2009)
|
436,034
|
436,608
|
464,635
|
|
Depreciation and
amortization
|
27,605
|
27,398
|
34,266
|
|
|
|
|
|
|
Total selling, general and
administrative expenses
|
463,639
|
464,006
|
498,901
|
|
Operating income
|
117,483
|
93,416
|
12,914
|
|
Other (income)
expense:
|
|
|
|
|
Interest income
|
(865)
|
(1,117)
|
(3,508)
|
|
Interest expense
|
77
|
174
|
937
|
|
Other-than-temporary
investment impairment due to credit loss
|
129
|
843
|
—
|
|
Other
|
(82)
|
(35)
|
1,578
|
|
|
|
|
|
|
Total other (income),
net
|
( 741)
|
( 135)
|
( 993)
|
|
|
|
|
|
|
Income before provision for
income taxes and income attributed
to noncontrolling
interest
|
118,224
|
93,551
|
13,907
|
|
Provision for income
taxes
|
43,916
|
33,104
|
4,069
|
|
|
|
|
|
|
Net income including
noncontrolling interest
|
74,308
|
60,447
|
9,838
|
|
Net income attributable to noncontrolling interest
|
—
|
—
|
(1,357)
|
|
|
|
|
|
|
Net income attributable to
99 Cents Only Stores
|
$
74,308
|
$
60,447
|
$
8,481
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
attributable to 99 Cents Only Stores:
|
|
|
|
|
Basic
|
$
1.06
|
$
0.88
|
$
0.12
|
|
Diluted
|
$
1.05
|
$
0.87
|
$
0.12
|
|
|
|
|
|
|
Weighted average number of
common shares outstanding:
|
|
|
|
|
Basic
Basic
|
69,963
|
68,641
|
69,987
|
|
Diluted
|
70,995
|
69,309
|
70,037
|
|
|
|
|
|
|
|
99 CENTS
ONLY STORES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Amounts in
thousands)
|
|
|
|
|
Years
Ended
|
|
|
April 2,
2011
|
March 27,
2010
|
March 28,
2009
|
|
|
(53
Weeks)
|
(52 Weeks)
|
(52 Weeks)
|
|
Cash flows from operating
activities:
|
|
|
|
|
Net income including
noncontrolling interest
|
$
74,308
|
$
60,447
|
$
9,838
|
|
Adjustments to reconcile
net income to net cash provided by operating activities:
|
|
|
|
|
Depreciation and
amortization
|
27,605
|
27,400
|
34,266
|
|
Loss on disposal of fixed
assets
|
101
|
149
|
791
|
|
Gain on sale of
partnership assets
|
—
|
—
|
(706)
|
|
Long-lived assets
impairment
|
—
|
431
|
10,355
|
|
Investments
impairment
|
129
|
843
|
1,677
|
|
Excess tax deficiency
(benefit) from share-based payment arrangements
|
(1,020)
|
(1,885)
|
10
|
|
Deferred income
taxes
|
13,321
|
(5,190)
|
(11,419)
|
|
Stock-based compensation
expense
|
2,887
|
7,739
|
3,136
|
|
|
|
|
|
|
Changes in assets and
liabilities associated with operating activities:
|
|
|
|
|
Accounts receivable
|
952
|
(117)
|
(346)
|
|
Inventories
|
(20,026)
|
(19,270)
|
(11,617)
|
|
Deposits and other
assets
|
(6,222)
|
272
|
(435)
|
|
Accounts payable
|
844
|
5,482
|
10,619
|
|
Accrued expenses
|
2,749
|
3,368
|
11,678
|
|
Accrued workers'
compensation
|
(4,593)
|
2,659
|
1,550
|
|
Income taxes
|
(10,916)
|
(3,824)
|
1,551
|
|
Deferred rent
|
(166)
|
(1,474)
|
(345)
|
|
Other long-term
liabilities
|
(181)
|
(2,158)
|
2,339
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
79,772
|
74,872
|
62,942
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
Purchases of property and
equipment
|
(61,121)
|
(34,842)
|
(34,222)
|
|
Proceeds from sale of
fixed assets
|
164
|
806
|
508
|
|
Purchases of
investments
|
(69,317)
|
(81,104)
|
(60,739)
|
|
Proceeds from sale of
investments
|
43,621
|
31,547
|
59,205
|
|
Proceeds from sale of
partnership assets
|
—
|
—
|
2,218
|
|
Acquisition of partnership
assets
|
—
|
—
|
(4,565)
|
|
|
|
|
|
|
Net cash used in investing
activities
|
(86,653)
|
(83,593)
|
(37,595)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
Repurchases of common
stock
|
—
|
—
|
(12,878)
|
|
Repurchases of common
stock related to issuance of Performance Stock Units
|
(2,260)
|
(2,667)
|
—
|
|
Acquisition of
noncontrolling interest of a partnership
|
—
|
(275)
|
—
|
|
Payments of capital lease
obligation
|
(72)
|
(65)
|
(59)
|
|
Proceeds from exercise of stock
options
|
5,039
|
7,790
|
68
|
|
Excess tax benefit
(deficiency) from share-based payment arrangements
|
1,020
|
1,885
|
(10)
|
|
|
|
|
|
|
Net cash provided by (used in)
financing activities
|
3,727
|
6,668
|
(12,879)
|
|
|
|
|
|
|
Net (decrease) increase in
cash
|
(3,154)
|
(2,053)
|
12,468
|
|
Cash - beginning of
period
|
19,877
|
21,930
|
9,462
|
|
|
|
|
|
|
Cash - end of
period
|
$
16,723
|
$
19,877
|
$
21,930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
99 CENTS
ONLY STORES
|
|
Fourth
Quarter Fiscal 2011 and 2010 Unaudited Management Analysis of
Non-Texas and Texas Operations and Reconciliation to GAAP
Statements
|
|
TABLE
1
|
|
Description
|
|
|
Non-Texas
|
|
Non-Texas
|
|
Texas
|
|
Texas
|
|
Consolidated
|
|
Consolidated
|
|
|
|
|
|
Q4
|
|
|
Q4
|
|
|
Q4
|
|
|
Q4
|
|
|
Q4
|
|
|
Q4
|
|
|
($ millions)
(3)
|
|
|
FY2011
|
%
Sales
|
|
FY2010
|
%
Sales
|
|
FY2011
|
%
Sales
|
|
FY2010
|
%
Sales
|
|
FY2011
|
%
Sales
|
|
FY2010
|
%
Sales
|
|
|
|
|
|
(14
weeks)
|
|
|
(13
weeks)
|
|
|
(14
weeks)
|
|
|
(13
weeks)
|
|
|
(14
weeks)
|
|
|
(13
weeks)
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
$336.8
|
97.2%
|
|
$302.1
|
97.1%
|
|
$29.6
|
92.9%
|
|
$26.5
|
94.9%
|
|
$366.4
|
96.8%
|
|
$328.6
|
96.9%
|
|
|
Bargain Wholesale
|
|
|
$9.8
|
2.8%
|
|
$9.2
|
2.9%
|
|
$2.3
|
7.1%
|
|
$1.4
|
5.1%
|
|
$12.1
|
3.2%
|
|
$10.6
|
3.1%
|
|
|
Total
|
|
|
$346.6
|
100.0%
|
|
$311.3
|
100.0%
|
|
$31.9
|
100.0%
|
|
$28.0
|
100.0%
|
|
$378.5
|
100.0%
|
|
$339.3
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase Cost
|
|
|
$197.7
|
57.0%
|
|
$176.0
|
56.6%
|
|
$18.6
|
58.3%
|
|
$16.0
|
57.3%
|
|
$216.2
|
57.1%
|
|
$192.1
|
56.6%
|
|
|
Shrinkage (1)
|
|
|
$9.2
|
2.7%
|
|
$8.6
|
2.8%
|
|
$1.5
|
4.7%
|
|
($0.8)
|
(2.8%)
|
|
$10.7
|
2.8%
|
|
$7.8
|
2.3%
|
|
|
Other
|
|
|
($0.0)
|
(0.0%)
|
|
($0.5)
|
(0.2%)
|
|
$0.7
|
2.2%
|
|
$0.5
|
1.8%
|
|
$0.7
|
0.2%
|
|
$0.0
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Cost of Goods
Sold
|
|
|
$206.8
|
59.7%
|
|
$184.1
|
59.2%
|
|
$20.8
|
65.2%
|
|
$15.8
|
56.4%
|
|
$227.6
|
60.1%
|
|
$199.9
|
58.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin
|
|
|
$139.8
|
40.3%
|
|
$127.2
|
40.8%
|
|
$11.1
|
34.8%
|
|
$12.2
|
43.6%
|
|
$150.9
|
39.9%
|
|
$139.4
|
41.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, General and
Administrative Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Operating
|
|
|
$76.1
|
21.9%
|
|
$69.0
|
22.2%
|
|
$7.9
|
24.8%
|
|
$7.2
|
25.9%
|
|
$84.0
|
22.2%
|
|
$76.2
|
22.5%
|
|
|
Distribution and
Transportation
|
|
|
$16.3
|
4.7%
|
|
$14.4
|
4.6%
|
|
$1.7
|
5.2%
|
|
$2.1
|
7.6%
|
|
$18.0
|
4.8%
|
|
$16.6
|
4.9%
|
|
|
Corporate G&A
|
|
|
$12.2
|
3.5%
|
|
$11.5
|
3.7%
|
|
$0.2
|
0.7%
|
|
$0.1
|
0.5%
|
|
$12.5
|
3.3%
|
|
$11.6
|
3.4%
|
|
|
Other (incl. Stock-comp)
(2)
|
|
|
$1.2
|
0.4%
|
|
$2.7
|
0.9%
|
|
$0.0
|
0.2%
|
|
$1.2
|
4.2%
|
|
$1.3
|
0.3%
|
|
$3.9
|
1.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
|
$105.8
|
30.5%
|
|
$97.6
|
31.4%
|
|
$9.8
|
30.8%
|
|
$10.7
|
38.2%
|
|
$115.7
|
30.6%
|
|
$108.3
|
31.9%
|
|
|
Depreciation &
Amortization
|
|
|
$6.5
|
1.9%
|
|
$6.0
|
1.9%
|
|
$0.8
|
2.5%
|
|
$0.6
|
2.2%
|
|
$7.3
|
1.9%
|
|
$6.6
|
1.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Expenses
|
|
|
$112.3
|
32.4%
|
|
$103.6
|
33.3%
|
|
$10.6
|
33.4%
|
|
$11.3
|
40.4%
|
|
$123.0
|
32.5%
|
|
$114.9
|
33.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
$27.5
|
7.9%
|
|
$23.5
|
7.6%
|
|
$0.4
|
1.4%
|
|
$0.9
|
3.2%
|
|
$27.9
|
7.4%
|
|
$24.4
|
7.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (Income)
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($0.2)
|
(0.1%)
|
|
($0.3)
|
(0.1%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before provision for
income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$28.1
|
7.4%
|
|
$24.8
|
7.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Income
Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$10.2
|
2.7%
|
|
$7.9
|
2.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$17.9
|
4.7%
|
|
$16.9
|
5.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$0.25
|
|
|
$0.24
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$0.25
|
|
|
$0.24
|
|
|
Shares
Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
70,241
|
|
|
68,814
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
71,081
|
|
|
69,765
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Shrinkage includes scrap, shrink
and excess and obsolete inventory. Q4 Fiscal 2010 for Texas
operations includes a one time reduction in shrink reserves of
approximately $1.8 million.
|
|
(2)
|
Other SG&A includes
Stock-based compensation and SG&A for the Bargain Wholesale
division for Q4 Fiscal 2011 and 2010. Q4 Fiscal 2010 for Texas
includes lease termination cost of $1.1 million.
|
|
(3)
|
Dollar amounts and percentages
may not add up due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
99 CENTS
ONLY STORES
|
|
Fiscal Year
2011 and 2010 Unaudited Management Analysis of Non-Texas and Texas
Operations and Reconciliation to GAAP Statements
|
|
TABLE
2
|
|
Description
|
|
|
Non-Texas
|
|
Non-Texas
|
|
Texas
|
|
Texas
|
|
Consolidated
|
|
Consolidated
|
|
|
|
|
|
Apr
YTD
|
|
|
Mar
YTD
|
|
|
Apr
YTD
|
|
|
Mar
YTD
|
|
|
Apr
YTD
|
|
|
Mar
YTD
|
|
|
($ millions)
(3)
|
|
|
FY2011
|
%
Sales
|
|
FY2010
|
%
Sales
|
|
FY2011
|
%
Sales
|
|
FY2010
|
%
Sales
|
|
FY2011
|
%
Sales
|
|
FY2010
|
%
Sales
|
|
|
|
|
|
(53
weeks)
|
|
|
(52
weeks)
|
|
|
(53
weeks)
|
|
|
(52
weeks)
|
|
|
(53
weeks)
|
|
|
(52
weeks)
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
$1,265.8
|
97.2%
|
|
$1,203.9
|
97.2%
|
|
$114.5
|
94.5%
|
|
$110.3
|
95.1%
|
|
$1,380.4
|
96.9%
|
|
$1,314.2
|
97.0%
|
|
|
Bargain Wholesale
|
|
|
$36.9
|
2.8%
|
|
$35.2
|
2.8%
|
|
$6.6
|
5.5%
|
|
$5.7
|
4.9%
|
|
$43.5
|
3.1%
|
|
$41.0
|
3.0%
|
|
|
Total
|
|
|
$1,302.7
|
100%
|
|
$1,239.2
|
100%
|
|
$121.1
|
100%
|
|
$116.0
|
100%
|
|
$1,423.9
|
100%
|
|
$1,355.2
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase Cost
|
|
|
$733.2
|
56.3%
|
|
$694.3
|
56.0%
|
|
$69.7
|
57.6%
|
|
$66.0
|
56.9%
|
|
$802.9
|
56.4%
|
|
$760.3
|
56.1%
|
|
|
Shrinkage (4)
|
|
|
$32.9
|
2.5%
|
|
$33.9
|
2.7%
|
|
$3.4
|
2.8%
|
|
$1.8
|
1.6%
|
|
$36.3
|
2.5%
|
|
$35.7
|
2.6%
|
|
|
Other
|
|
|
$1.2
|
0.1%
|
|
($0.3)
|
0.0%
|
|
$2.4
|
2.0%
|
|
$2.0
|
1.7%
|
|
$3.6
|
0.3%
|
|
$1.7
|
0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Cost of Goods
Sold
|
|
|
$767.2
|
58.9%
|
|
$727.9
|
58.7%
|
|
$75.5
|
62.4%
|
|
$69.8
|
60.2%
|
|
$842.8
|
59.2%
|
|
$797.7
|
58.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin
|
|
|
$535.5
|
41.1%
|
|
$511.2
|
41.3%
|
|
$45.6
|
37.6%
|
|
$46.2
|
39.8%
|
|
$581.1
|
40.8%
|
|
$557.4
|
41.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, General and
Administrative Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Operating
|
|
|
$289.0
|
22.2%
|
|
$279.9
|
22.6%
|
|
$30.6
|
25.2%
|
|
$30.4
|
26.2%
|
|
$319.6
|
22.5%
|
|
$310.3
|
22.9%
|
|
|
Distribution and
Transportation
|
|
|
$60.2
|
4.6%
|
|
$58.7
|
4.7%
|
|
$7.4
|
6.1%
|
|
$7.7
|
6.6%
|
|
$67.5
|
4.7%
|
|
$66.3
|
4.9%
|
|
|
Corporate G&A
|
|
|
$44.9
|
3.4%
|
|
$45.8
|
3.7%
|
|
$0.8
|
0.7%
|
|
$1.2
|
1.1%
|
|
$45.7
|
3.2%
|
|
$47.0
|
3.5%
|
|
|
Other (incl. Stock-comp and
long-lived asset impairment) (1)
|
|
$3.1
|
0.2%
|
|
$10.9
|
0.9%
|
|
$0.1
|
0.1%
|
|
$2.1
|
1.8%
|
|
$3.2
|
0.3%
|
|
$13.0
|
1.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
|
$397.2
|
30.5%
|
|
$395.2
|
31.9%
|
|
$38.8
|
32.1%
|
|
$41.4
|
35.7%
|
|
$436.0
|
30.6%
|
|
$436.6
|
32.2%
|
|
|
Depreciation &
Amortization
|
|
|
$24.3
|
1.9%
|
|
$24.8
|
2.0%
|
|
$3.3
|
2.8%
|
|
$2.6
|
2.3%
|
|
$27.6
|
1.9%
|
|
$27.4
|
2.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Expenses
|
|
|
$421.4
|
32.4%
|
|
$419.9
|
33.9%
|
|
$42.2
|
34.8%
|
|
$44.1
|
38.0%
|
|
$463.6
|
32.6%
|
|
$464.0
|
34.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
$114.1
|
8.8%
|
|
$91.3
|
7.4%
|
|
$3.4
|
2.8%
|
|
$2.1
|
1.8%
|
|
$117.5
|
8.3%
|
|
$93.4
|
6.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (Income) Expense
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($0.7)
|
(0.1)%
|
|
($0.1)
|
0.0%
|
|
Income before provision
(benefit) for income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$118.2
|
8.3%
|
|
$93.6
|
6.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Income
Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$43.9
|
3.1%
|
|
$33.1
|
2.4%
|
|
Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$74.3
|
5.2%
|
|
$60.4
|
4.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$1.06
|
|
|
$0.88
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$1.05
|
|
|
$0.87
|
|
|
Shares
Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
69,963
|
|
|
68,641
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
70,995
|
|
|
69,309
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Other SG&A includes
Stock-based compensation and SG&A for the Bargain Wholesale
division. Fiscal 2011 Other SG&A also includes a legal
settlement receipt of $2.2 million. For Fiscal 2010,
other SG&A includes approximately $2.5 million lease
termination and closing costs related to the Company's Texas
operations and a $0.4 million of long-lived asset impairments
related to a store in California.
|
|
(2)
|
Other (Income) Expense includes
$0.1 million and $0.8 million of investment impairment charges
related to credit losses for Fiscal 2011 and Fiscal 2010,
respectively.
|
|
(3)
|
Dollar amounts and percentages
may not add up due to rounding.
|
|
(4)
|
Shrinkage includes scrap, shrink
and excess and obsolete inventory.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Founded over 25 years ago, 99
Cents Only Stores® operates 285 extreme value retail stores
with 211 in California, 35 in
Texas, 27 in Arizona and 12 in Nevada. 99 Cents
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 results of operations for
fiscal 2012, the business and growth strategies of the Company,
planned 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.
Contact Angela Thurstan,
323-881-1272.
SOURCE 99 Cents Only Stores