Personal Finance

LK GEO 1 · Guest

99 Cents Only to delay SEC filing
By Dan Burrows, CBS MarketWatch.com
Last Update: 4:19 PM ET Nov. 10, 2004

NEW YORK (CBS.MW) -- Specialty retailer 99 Cents Only Stores has notified the
Securities and Exchange Commission that it needs more time to file its official
report on third-quarter results.

In a regulatory filing, 99 Cents Only Stores (NDN: news, chart, profile) gave
no specific reason for the delay, except to say filing on time would cause
"unreasonable effort or expense."

The retailer's stock dropped 73 cents, or 4.6 percent, to close at $15.20
Wednesday. Calls to Chief Financial Officer Andrew Farina were not returned.

In October, the company reported its third-quarter results to the public, but
wants more time to formally file them with the SEC. The SEC filing subsequent
to publicly released numbers usually is a perfunctory step.

But if the company fails to submit that filing on time, it can be troublesome.
Companies often include additional information in those filings, known as 10
Q's, that may have an effect on stock pricing.

The company said in October that third-quarter profits plunged 61 percent to
$4.7 million, or 7 cents a share, from $12.1 million, or 17 cents a share in
the same period a year ago. Earnings were below the Thomson First Call
consensus estimate of 8 cents a share.

Sales rose 13 percent to $238.9 million from $211.5 million, but also fell
short of analysts' average forecast of $241.9 million. Same-store sales
increased 0.5 percent.

Also in October, the discount retailer said it hired a new director of supply
chain management, after problems at its overtaxed Los Angeles distribution
center caused late deliveries and out-of-stock inventory problems at some
stores.

This is the second time this year 99 Cents Only Stores has been forced to delay
a quarterly filing. In February, the company said it received a comment letter
from the SEC's corporate finance division over the accounting of its sale of
Universal International in 2000.

The retailer said the matters raised by the SEC could impact results since
2000. As a result of the SEC inquiry, the company said it would delay the
release of its fourth-quarter results.

	Personal Finance Forum Index -> Stocks	All times are GMT
Page 1 of 1