99 Cents Only Stores, a discount retailer that operates mainly in California, released its preliminary third-quarter earnings and fourth-quarter revenue after its auditor resigned in September, delaying the reports.
Third-quarter net income fell to $1 million, or 1 cent a share, from $5.5 million, or 8 cents, a year earlier, the City of Commerce, California-based company said in a statement distributed today by Business Wire. Net sales rose to $246 million from $238 million.
99 Cents and its new auditor are completing a review of the company's 2005 quarterly reports so they can be filed before the retailer's March 31 year-end deadline, 99 Cents said.
The company, which has 229 stores in Texas, California, Arizona and Nevada, said efforts to improve sales helped boost fourth-quarter revenue by 2.5 percent at shops open more than a year, bolstering profit. Total sales rose 4.9 percent to $278.8 million in the period.
In early November, the retailer named BDO Seidman LLP as independent auditor, replacing Deloitte & touché LLP, which resigned in September. 99 Cents spokesman Rob Kautz didn't immediately return a voice-mail message left at his office.
99 Cents shares rose 52 cents to $10.68 in New York Stock Exchange composite trading. The stock has declined 27 percent this year.
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