UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
FORM 10-Q
[ x ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER: 1-11735
99 CENTS ONLY STORES
(Exact name of registrant as specified in its charter)
CALIFORNIA 95-2411605
(State or other jurisdiction (I.R.S. Employer Identification No.)
or organization)
4000 UNION PACIFIC AVENUE
CITY OF COMMERCE, CALIFORNIA 90023
(Address of Principal executive offices)
Registrant's telephone number, including area code: (213) 980-8145
NONE
Former name, address and fiscal year, if changed since last report
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Security Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports) and (2) has been subject to
such filing requirements for the last 90 days.
YES [x] NO [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the latest practicable date.
Common Stock, No Par Value, 14,851,750 Shares as of OCTOBER 30, 1997
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
<PAGE>
99 Cents Only Stores
Balance Sheets
(Amounts In Thousands)
September 30, December 31,
1997 1996
(Unaudited)
---------- ----------
Assets
Current assets:
Cash................................ $4,338 $3,375
Short-term investments.............. 29,588 27,619
Accounts receivable, net of
allowance for doubtful accounts of
$183,000 and $211,000 as of
SEPTEMBER 30, 1997 and December 31,
1996, respectively............ 2,540 1,561
Inventories......................... 39,011 36,933
Other............................... 607 323
-------- --------
Total current assets................ 76,084 69,811
Property and equipment, at cost:
Land................................ 8,072 7,159
Building and improvements........... 10,804 10,195
Leasehold improvements.............. 10,202 6,546
Fixtures and equipment.............. 7,846 5,840
Transportation equipment............ 467 438
Construction in progress............ 694 134
-------- --------
38,085 30,312
Less - accumulated depreciation
and amortization............. (9,350) (7,239)
-------- --------
Total property and equipment, net... 28,735 23,073
Other assets:
Deferred income taxes............... 5,702 5,702
Deposits............................ 231 246
Other............................... 275 0
Receivable from affiliated entity... 165 165
-------- --------
6,373 6,113
-------- --------
Total assets........................ $111,192 $98,997
======== ========
The accompanying notes are an integral part of these balance sheets.
<PAGE>
99 Cents Only Stores
Balance Sheets
(Amounts In Thousands)
September 30, December 31,
1997 1996
(Unaudited)
---------- ----------
Liabilities and Shareholders' Equity
Current liabilities:
Current portion of capital
lease obligation....................... $691 $656
Accounts payable......................... 6,448 6,577
Accrued expenses:
Payroll and payroll related............ 667 1,086
Sales tax.............................. 846 1,056
Liability for claims................... 547 706
Other.................................. 88 34
Workers' compensation.................. 770 771
Income taxes payable................... - 103
-------- --------
Total current liabilities................ 10,057 10,989
Long-term liabilities:
Deferred rent............................ 1,325 1,294
Accrued interest on capitalized lease
obligation............................... 1,927 1,500
Capital lease obligation, net of
Current portion........................ 8,186 8,709
-------- --------
11,438 11,503
Commitments and contingencies............ - -
Shareholders' equity:
Preferred stock, no par value
Authorized - 1,000,000 shares
Issued and outstanding - none.......... - -
Common Stock, no par value
Authorized - 40,000,000 shares
Issued and outstanding - 14,851,750
shares at September 30, 1997 and
14,816,635 shares at December 31, 1996. 65,751 65,354
Retained earnings...................... 23,946 11,151
-------- --------
Total shareholders' equity............... 89,697 76,505
-------- --------
Total liabilities and shareholders' equity $111,192 $98,997
======== ========
The accompanying notes are an integral part of these balance sheets.
<TABLE>
<CAPTION>
<PAGE>
99 Cents Only Stores
Statements of Income
(Unaudited)
(Amounts In Thousands Except Earnings Per Share Data)
<S> <C> <C> <C> <C>
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
-------- -------- -------- --------
Net sales:
99 Cents Only Stores................ $46,991 $35,211 128,726 101,603
Bargain Wholesale................... 11,995 10,173 34,818 29,230
-------- -------- -------- --------
Net sales........................... 58,986 45,384 163,544 130,833
Cost of sales....................... 37,794 29,266 105,623 86,315
-------- -------- -------- --------
Gross profit........................ 21,192 16,118 57,921 44,518
Selling, general and
administrative expenses........... 13,313 10,334 36,800 29,007
-------- -------- -------- --------
Operating income.................... 7,879 5,784 21,121 15,511
Interest income (expense), net...... 218 242 513 (10)
-------- -------- -------- --------
Income before provision for
Income taxes...................... 8,097 6,026 21,634 15,501
Provision for income taxes:
Historical...... 3,347 2,474 8,839
Pro forma....... -------- -------- -------- 6,355
--------
Net income:
Historical...... $4,750 $3,552 $12,795
Pro forma....... ======== ======== ======== $9,146
========
Earnings per share:
Historical...... $0.31 $0.24 $0.85
Pro forma....... ===== ===== ===== $0.66
=====
Weighted average number of common
Shares outstanding:
Historical...... 15,259 14,922 15,107
Pro forma....... ======== ======== ======== 13,809
========
</TABLE>
The accompanying notes are an integral part of these statements.
<PAGE>
99 Cents Only Stores
Statements of Cash Flows
(Unaudited)
(Amounts In Thousands)
<TABLE> Nine Months Ended
<CAPTION> September 30,
1997 1996
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income (Note 4)................................ $12,795 $15,958
Adjustment to reconcile net income to net cash
provided by (used in) operating activities:
Provision for doubtful accounts.................... - 41
Depreciation and amortization...................... 2,111 1,460
Loss on disposition of property and equipment...... - 16
Provision (benefit) for deferred income taxes...... - (4,547)
Changes in asset and liabilities
associated with operating activities:
Accounts receivable................................ (979) (878)
Short-term investments............................. (1,968) (29,870)
Inventories........................................ (2,078) (979)
Other assets....................................... (559) (136)
Deposits........................................... 15 -
Accounts payable................................... (129) (884)
Accrued expenses................................... (600) (389)
Workers' compensation.............................. (2) 97
Income taxes payable............................... (237) 1,964
Deferred rent...................................... 32 50
Accrued interest................................... 427 398
-------- --------
Net cash provided by (used in) operating activities 8,828 ($17,699)
Cash flows from investing activities:
Purchase of property and equipment................. (7,774) (3,852)
-------- --------
Net cash used in investing activities.............. ($7,774) ($3,852)
Cash flows from financing activities:
Payments of capital lease obligation............... (488) (454)
Net proceeds from exercise of stock options........ 397 -
Net proceeds from initial public offering.......... - 65,327
Payments of notes payable to shareholders'......... - (35,363)
Payment of dividend payable........................ - (4,586)
Distributions to shareholders...................... - (5,000)
-------- --------
Net cash provided by (used in) financing activities ($ 91) 19,924
Net increase/(Decrease) in cash.................... 963 ($1,627)
Cash, beginning of period.......................... 3,375 3,057
-------- --------
Cash, end of period................................ $4,338 $1,430
</TABLE> ======== ========
The accompanying notes are an integral part of these statements.
<PAGE>
99 CENTS ONLY STORES
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in
conformity with generally accepted accounting principles. However, certain
information and footnote disclosures normally included in financial
statements prepared in conformity with generally accepted accounting
principles have been omitted or condensed pursuant to the rules and
regulations of the Securities and Exchange Commission (SEC). These statements
should be read in conjunction with the Company's December 31, 1996 audited
and pro forma financial statements and notes thereto included in the
Company's Form 10-K dated March 27, 1997, including all amendments thereto.
In the opinion of management, these interim financial statements reflect all
adjustments (consisting of normal recurring adjustments) necessary for a fair
presentation of the financial position and results of operations for each of
the periods presented. The results of operations and cash flows for such
periods are not necessarily indicative of results to be expected for the full
year.
2. PUBLIC OFFERING OF STOCK
In May 1996, the Company completed its initial public offering of 4,887,500
shares (including 637,500 shares from the exercise of the over allotment
option granted to the underwriters) of common stock. Of the net proceeds of
approximately $65.3 million, the Company used approximately $39.9 million to
pay notes issued and dividends payable declared to the Existing Shareholders
in connection with the Company's undistributed Subchapter S taxable earnings
(see Notes 3 and 4). The Company is using the balance of the net proceeds to
continue to accelerate the expansion of its retail operations and for general
corporate purposes. Any net proceeds not immediately used for such purposes
have been invested in short-term investment grade securities.
3. PRO FORMA PRESENTATION
Through April 30, 1996, the Company had elected treatment as an S corporation
under provisions of the Internal Revenue Code. Effective May 1, 1996, the
Company terminated its S corporation election and became a C corporation.
A. Pro Forma Statements of Income
As an S corporation, the Company's income, whether distributed or not, was
taxed at the shareholder level for federal income tax purposes. For
California franchise tax purposes, as an S corporation, the Company was taxed
at 1.5 percent of taxable income.
<PAGE>
Because of the Company's change in tax status, historical results of
operations, including income taxes, and related earnings per share
information may not in all cases, be comparable to or indicative of current
and future results. Therefore, pro forma information, which shows results as
if the Company had always been a C Corporation, is presented on the face of
the accompanying statements.
The pro forma provision for income taxes included in the accompanying
statements of income shows results as if the Company had always been subject
to taxes as a C Corporation and had adopted Statement of Financial Accounting
Standards No. 109 (SFAS 109), "Accounting for Income Taxes," prior to fiscal
1991.
Under SFAS 109, deferred income tax assets or liabilities are computed based
on temporary differences between the financial statement and income tax bases
of assets and liabilities using the current enacted marginal income tax rate
in effect. Deferred income tax expenses or credits are based on the changes
in the deferred income tax assets or liabilities from period to period. Under
SFAS 109, deferred tax assets may be recognized for temporary differences
that will result in deductible amounts in future periods and for loss carry
forwards. A valuation allowance is recognized if, based on the weight of
available evidence, it is more likely than not that some portion or all of
the deferred tax asset will not be realized. For the nine months period ended
September 30, 1997 the provision for income taxes was based upon a combined
federal and state tax rate of approximately 41 percent, offset by the impact
of various tax credits.
B. Pro Forma Earnings Per Common Share
Pro forma earnings per common share have been computed by dividing pro forma
net income by the pro forma weighted average number of common shares
outstanding plus the dilutive effect of common stock equivalents. Pro forma
weighted average number of common shares outstanding also includes amounts
(weighted from the beginning of the period to the initial public offering)
for shares offered as a part of the public offering.
Historical per share data are presented for three months and Pro forma per
share data are presented for the nine months period ended September 30, 1996
and historical per share data are presented for the three months and nine
months period ended September 30, 1997, in the accompanying statements of
income. The number of common shares issuable due to options granted during
the twelve months preceding the Company's public offering are included in the
calculation of shares outstanding using the treasury stock method from the
beginning of all periods presented.
4. CHANGE IN TAX STATUS/INCOME TAX PROVISION
As discussed in note 3 above, effective May 1, 1996, the Company terminated
its S corporation election and became a C corporation. As such, the actual
taxes due by the Company for the period January 1, 1996 through April 30,
1996 are based on S corporation tax rates. The Company was subject to C
corporation tax rate thereafter.
The historical provision (benefit) for income taxes and resulting historical
net income, based on S corporation and C corporation tax rates as discussed
above and including the effect of the increase in the tax deferred asset as
discussed above, for the nine months period ended September 30, 1996 follows:
Nine Months
Period Ended
September 30, 1996
Income before provision (benefit)
For income taxes $15,501
Historical provision (benefit) for
Income taxes:
During period as an S corporation 75
During period as a C corporation 4,038
Change in tax status (4,570)
--------
($ 457)
--------
Historical net income $15,958
========
<PAGE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
General
99 Cents Only Stores is a leading deep-discount retailer of consumable
general merchandise at a single price point. The Company has been engaged,
since 1976, in the purchase and sale of name brand, close-out and regularly
available general merchandise. Since that time, the Company has distributed
its merchandise on a wholesale basis through its Bargain Wholesale division.
In 1982, the Company opened the first of its 99 Cents Only Stores and as of
the date of this form 10-Q operates a chain of 51, 99 Cents Only Stores. The
Company's growth has primarily come from new store openings and growth in its
Bargain Wholesale division. Sales generated from the 99 Cents Only Stores
were 80% of total revenues for the quarter ended September 30, 1997.
The Company opened three 99 Cents Only Stores in the third quarter ended
September 30, 1997 bringing the total new stores opened in the first nine
months of 1997 to eight. Bargain Wholesale complements the Company's retail
operations by allowing the Company to purchase in larger volumes at more
favorable pricing and to generate additional net sales with relatively small
increases in operating expenses. The wholesale business has expanded its
marketing efforts to target new trade classes and distribution channels.
Initial Public Offering
In May 1996, the Company completed its initial public offering (see Note 2
above) of 4,887,500 shares (including 637,500 shares from the exercise of the
over allotment option granted to the underwriters) of common stock. The
Company is using the balance of the net proceeds to continue to accelerate
the expansion of its retail operations and for general corporate purposes.
Any net proceeds not immediately used for such purposes have been invested in
short-term investment grade securities.
Effect of Change in Form From an S Corporation to a C Corporation
As part of its initial public offering, the Company changed in form from an S
Corporation to a C corporation, which will affect its operations and
financial condition by increasing the level of federal and state income
taxes.
As an S Corporation, the Company's income, whether or not distributed, was
taxed at the shareholder level for federal income tax purposes. For
California franchise tax purposes, S Corporations were taxed at 1.5% of
taxable income for the first four months of 1996. Currently the top Corporate
tax rate for C Corporations is 35% and the corporate tax rate in California
is 9.3%. As such, the change in form will affect the earnings and the cash
flows of the Company. The pro forma provision for income taxes in the
accompanying statements of income shows results as if the Company had always
been a C Corporation and had adopted Statement of Financial Accounting
Standards No. 109 "Accounting for Income Taxes" prior to January 1, 1991.
(See Note 4 of Notes to Financial Statements.)
<PAGE>
Three Months Ended September 30, 1997 Compared to Three Months Ended
September 30, 1996
NET SALES: Net sales increased $13.6 million, or 30.0%, to $59.0 million in
the 1997 period from $45.4 million in the 1996 period. 99 Cents Only Stores
net sales increased approximately $11.8 million, or 33.5%, to $47.0 million
in the 1997 period from $35.2 million in the 1996 period, and Bargain
Wholesale net sales increased approximately $1.8 million, or 17.9%, to $12.0
million in the 1997 period from $10.2 million in the 1996 period. The
increase in 99 Cents Only Stores net sales was attributable to the positive
effect of 3 new stores opened in the third quarter of 1997, 3 new stores
opened in the second quarter of 1997, 2 new stores opened in the first
quarter of 1997. The full effect of 3 new store opened in the third quarter
of 1996 and 2 in the fourth quarter of 1996 and a 1.5% increase in comparable
same store sales in the 1997 period from the 1996 period. Comparable store
sales were impacted by new store openings within a 3 mile radius of existing
stores. The increase in Bargain Wholesale net sales was primarily
attributable to a continued increased focus on marketing efforts targeting
new trade classes and distribution channels.
GROSS PROFIT: Gross profit increased approximately $5.1 million, or 31.5%, to
$21.2 million in the 1997 period from $16.1 million in the 1996 period. The
increase in gross profit was due to higher net sales and an increase in the
gross profit margin to 35.9% in the 1997 period from 35.5% in the 1996
period. The 0.4% point increase in the gross profit margin is due to
merchandise cost factors.
SELLING, GENERAL AND ADMINISTRATIVE: SG&A increased by $3.0 million, or
28.8%, to 13.3 million in 1997 period from $10.3 million in 1996 period. This
was primarily due to increased costs associated with new store growth. As a
result of higher net sales in the 1997 period, SG&A decreased as a percentage
of net sales from 22.8% in 1996 to 22.6% in 1997.
OPERATING INCOME: As a result of the items discussed above, operating income
increased $2.1 million, or 36.2%, to $7.9 million in 1997 from $5.8 million
in 1996. The operating margin increased to 13.4% of sales in 1997 compared to
12.7% in 1996.
INTEREST INCOME (EXPENSE): Interest income (expense) relates to interest on
the Company's capitalized warehouse lease, net of interest earned on the
Company's cash balances and short-term investments. The change in interest
expense between 1997 and 1996 was due to interest earned on short-term
marketable securities. During 1997 and 1996, the Company had no bank debt.
PROVISION FOR INCOME TAXES: The provision for income taxes for the three
months ended September 30, 1997, was $3.3 million in 1997 compared to $2.5
million in 1996. The effective rates of the historical and pro forma
provision for income taxes was approximately 40.7% in 1997 and 41.7% in 1996.
The change in the effective rate in 1997 from 1996 results from the benefit
of available tax credits.
NET INCOME: As a result of the items discussed above, net income increased
$1.2 million, or 33.7% to $4.8 million in 1997 from $3.6 million in the 1996
period. Net income as a percentage of sales increased to 8.1% in 1997 from
7.8% in the 1996 period.
<PAGE>
Nine Months Ended September 30, 1997 Compared to Nine Months Ended September
30, 1996
NET SALES: Net sales increased $32.7 million, or 25.0%, to $163.5 million in
the 1997 period from $130.8 million in the 1996 period. 99 Cents Only Stores
net sales increased approximately $27.1 million, or 26.7%, to $128.7 million
in the 1997 period from $101.6 million in the 1996 period, and Bargain
Wholesale net sales increased approximately $5.6 million, or 19.1%, to $34.8
million in the 1997 period from $29.2 million in the 1996 period. The
increase in 99 Cents Only Stores net sales was attributable to the positive
effect of 8 new stores opened in the first nine months of 1997, the full
effect of 3 new store openings in the third quarter of 1996 and 2 in the
fourth quarter of 1996 and a 1.5% increase in comparable store net sales in
the 1997 period from the 1996 period. Comparable store sales were impacted by
new store openings within a 3 mile radius of existing stores. The increase in
Bargain Wholesale net sales was primarily attributable to a continued
increased focus on marketing efforts targeting new trade classes and
distribution channels.
GROSS PROFIT: Gross profit increased $13.4 million, or 30.1%, to $57.9
million in the 1997 period from $44.5 million in the 1996 period. The
increase in gross profit was due to higher net sales and an increase in the
gross profit margin to 35.4% in the 1997 period from 34.0% in the 1996
period. The 1.4% point increase in the gross profit margin is due to
merchandise cost factors.
SELLING, GENERAL AND ADMINISTRATIVE: SG&A increased by $7.8 million, or
26.9%, from $29.0 million in 1996 to $36.8 million in the 1997 period. This
was primarily due to increased costs associated with new store growth. As a
result SG&A increased as a percentage of net sales from 22.2% in 1996 to
22.5% in 1997.
OPERATING INCOME: As a result of the items discussed above, operating income
increased $5.6 million, or 36.2%, to $21.1 million in 1997 from $15.5 million
in 1996. The operating margin increased to 12.9% of sales in 1997 compared to
11.9% in 1996.
INTEREST INCOME (EXPENSE): Interest income (expense) relates to interest on
the Company's capitalized warehouse lease, net of interest earned on the
Company's cash balances and short-term investments. The change in interest
expense between 1997 and 1996 was due to interest earned on short-term
marketable securities. During 1997 and 1996, the Company had no bank debt.
PROVISION FOR INCOME TAXES: The provision for income taxes for the nine
months ended September 30, 1997 was $8.8 million in 1997 compared to a pro
forma provision of $6.4 million in 1996. The increase results primarily from
the increase in taxable earnings. The effective rate of the historical and
pro forma provision for income taxes was approximately 40.7% in 1997 and
41.0% in 1996. The change in the effective rate in 1997 from 1996 results
from the benefit of available tax credits.
NET INCOME: As a result of the items discussed above, net income increased
$3.6 million, or 39.9% to $12.8 million in 1997 from $9.1 million in the 1996
period. Net income increased to 7.8% of net sales from 7.0% in the 1996
period.
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
The Company has funded its operations principally from cash provided by
operations, and has not generally relied upon external sources of financing.
The Company's capital requirements result primarily from purchases of
inventory, expenditures related to store openings and the working capital
requirements for new and existing stores. The Company takes advantage of
close-out and other special situation opportunities which frequently results
in large volume purchases, and as a consequence, its cash requirements are
not constant or predictable during the year and can be affected by the timing
and size of its purchases.
In May 1996, the Company completed its initial public offering (see Note 2
above). The Company is using the net proceeds for the expansion of its retail
operations, and for general corporate purposes. Since the offering, the
Company has opened 15 new stores. At September 30, 1997 the Company had
purchased the land and buildings for 3 of the locations. The Company may
purchase other locations in the future. Available cash not immediately needed
for such purposes has been invested in short-term investments grade
securities.
During the nine months ended September 30, 1997 and 1996, net cash provided
by (used in) operations was $8.8 million and ($17.7) million respectively.
Inventories increased $2.1 million in 1997 and increased $1.0 million in
1996. Receivables increased $1.0 million, in 1997 and $0.9 in 1996
respectively. Accounts payable was reduced $0.1 million in 1997 and $0.9
million in 1996. Current income taxes payable decreased $0.2 million in 1997
and increased $2.0 million in 1996. The increase in 1996 is as a result of
the change in corporate tax status to a C corporation. In the third quarter
of 1997, the Company also reinvested $0.5 million of interest earned on
marketable securities. Net cash used in investing activities was $7.8 million
in 1997, consisting of expenditures for property and equipment. In 1996, cash
flow from investing activities consisted of $3.9 million used for capital
expenditures. In 1997, net cash used in financing activities of $0.1 million
included $0.5 for payments on the capitalized warehouse lease, this was
offset by $0.4 of proceeds from the exercise of stock options. In 1996, net
cash provided by financing activities was $20.0 million. These funds
represented the net proceeds of the initial public offering in May 1996 of
$65.3 million. The Company used approximately $39.9 million to pay notes
payable and dividends payable declared to existing shareholders in connection
with the Company's undistributed Subchapter S taxable earnings (see Notes 3
and 4).
The Company has a $7.0 million bank line of credit facility bearing interest
at the bank's prime rate. Under terms of the facility, the Company must
comply with one financial covenant, the ratio of total liabilities to
tangible net worth. As of September 30, 1997, the Company was in compliance
with this covenant and there were no amounts outstanding on the line of
credit.
The Company believes that it can adequately fund its planned capital
expenditures and working capital requirements for the next 12 months from the
net cash provided by operations, cash on hand and marketable securities.
<PAGE>
PART II OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
None
EXHIBITS.
(a) EXHIBIT 11.1 Statement Regarding Computation of Per Share Earnings
(b) EXHIBIT 27.1 Financial Data Schedule
<PAGE>
SIGNATURE
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 thereto duly authorized.
99 CENTS ONLY STORES
Date: October 30, 1997 /s/ Andrew A. Farina
Andrew A. Farina
Vice President Finance
<PAGE>
Exhibit 11.1
99 Cents Only Stores
Statement Regarding Computation of
Per Share Earnings
(Amounts in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1997
------- -------
Net Income $4,750 $12,795
======= =======
Common Stock:
Shares outstanding from
Beginning of period 14,830 14,817
Exercise of Employee Stock Options 21 35
Common Stock Equivalents 408 255
------- -------
Weighted Average number of common
shares outstanding 15,259 15,107
======= =======
Earnings per common share $0.31 $0.85
======= =======
<PAGE>
EXHIBIT 27.1
<PERIOD TYPE> 3-mos
<FISCAL YEAR END> Dec 31 1997
<PERIOD START> Jan 01 1997
<PERIOD END> Sep 30 1997
[CASH] 4,338
[SECURITIES] 29,588
[RECEIVABLES] 2,540
[ALLOWANCES] (183)
[INVENTORY] 39,011
<CURRENT ASSETS> 76,084
[PP&E] 38,085
[DEPRECIATION] (9,350)
<TOTAL ASSETS> 111,192
<CURRENT LIABILITIES> 10,057
[BONDS] 0
0
[PREFERRED] 0
[COMMON] 65,751
<OTHER SE> 23,946 <FN 1>
<TOTAL LIABILITY AND EQUITY> 111,192
[SALES] 163,544
<TOTAL REVENUE> 163,544
[CGS] 37,794
<TOTAL COSTS> 13,313
<OTHER EXPENSES> 0
<LOSS PROVISION> 0
<INTEREST EXPENSE> 45
<INCOME PRE TAX> 8,097
<INCOME TAX> 3,347
<INCOME CONTINUING> 4,750
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
<NET INCOME> 4,750
<EPS PRIMARY> 0.31
<EPS DILUTED> 0.31
< /TABLE>
<FN1> Retained Earnings
