Dollar General Corporation Announces Corporate Restructuring to Drive Stronger Growth
Tue, 13 Oct 2015
GOODLETTSVILLE, Tenn.--(BUSINESS WIRE)--
Dollar General Corporation (NYSE: DG) today announced that, as part of a
broader initiative aimed at proactively improving efficiencies and
reducing expenses, the Company is restructuring its corporate support
functions to eliminate approximately 255 positions. Substantially all of
the eliminations are effective immediately.
“Over the last several months, we have taken a hard look at our cost
structure and are streamlining our support functions to improve our
financial flexibility while positioning us to better serve our customers
and to capitalize on long-term growth opportunities. This restructuring
should allow us to continue strengthening our market leadership position
and deliver long-term value for our shareholders,” said Todd Vasos,
chief executive officer of Dollar General.
The Company currently projects that it will incur a pre-tax cash expense
of approximately $7 million in the third quarter of 2015 relating to
this restructuring for one-time severance-related benefits.
The restructuring includes approximately 115 vacant positions. All
impacted employees have been notified. Positions at the store level will
not be impacted by this restructuring. Looking ahead to fiscal 2016,
Dollar General expects to continue its expense control and reduction
initiative by implementing a more rigorous budgeting process that will
target cost savings in specific budget categories.
Dollar General plans to report its third quarter 2015 financial results
prior to the market open on December 3, 2015.
About Dollar General Corporation
Dollar General Corporation has been delivering value to shoppers for
over 75 years. Dollar General helps shoppers Save time. Save money.
Every day!® by offering products that are frequently used and
replenished, such as food, snacks, health and beauty aids, cleaning
supplies, clothing for the family, house wares and seasonal items at low
everyday prices in convenient neighborhood locations. Dollar General
operates more than 12,198 stores in 43 states as of July 31, 2015. In
addition to high quality private brands, Dollar General sells products
from America's most-trusted manufacturers such as Clorox, Energizer,
Procter & Gamble, Hanes, Coca-Cola, Mars, Unilever, Nestle,
Kimberly-Clark, Kellogg's, General Mills, and PepsiCo. For more
information on Dollar General, please visit www.dollargeneral.com.
Forward-Looking Statements
Dollar General includes “forward-looking statements” within the meaning
of the federal securities laws throughout this release. A reader can
identify forward-looking statements because they are not limited to
historical fact or they use words such as “will,” “could,” “should,”
“expect,” “anticipate,” “project,” “plan,” “continue,” “initiative,”
“effort,” “positioning” and similar expressions that concern Dollar
General’s strategy, plans, intentions or beliefs about future
occurrences or results, including without limitation statements
regarding the anticipated financial results of Dollar General’s
restructuring initiative.
Forward-looking statements are subject to risks, uncertainties and other
factors that may change at any time and may cause actual results to
differ materially from those that Dollar General expected. Many of these
statements are derived from Dollar General’s operating budgets and
forecasts, which are based on many detailed assumptions that Dollar
General believes are reasonable, or are based on various assumptions
about certain plans, activities or events which we expect will or may
occur in the future. However, it is very difficult to predict the effect
of known factors, and Dollar General cannot anticipate all factors that
could affect actual results that may be important to an investor. All
forward-looking information should be evaluated in the context of these
risks, uncertainties and other factors, including those factors
disclosed under “Risk Factors” in Dollar General’s Annual Report on Form
10-K filed with the Securities and Exchange Commission on March 20, 2015
and Quarterly Report on Form 10-Q filed with the Securities and Exchange
Commission on August 27, 2015.
All forward-looking statements are qualified in their entirety by the
cautionary statements that Dollar General makes from time to time in its
SEC filings and public communications. Dollar General cannot assure the
reader that it will realize the results or developments Dollar General
anticipates, or, even if substantially realized, that they will result
in the consequences or affect Dollar General or its operations in the
way Dollar General expects. Forward-looking statements speak only as of
the date made. Dollar General undertakes no obligation to update or
revise any forward-looking statements to reflect events or circumstances
arising after the date on which they were made, except as otherwise
required by law. As a result of these risks and uncertainties, readers
are cautioned not to place undue reliance on any forward-looking
statements included herein or that may be made elsewhere from time to
time by, or on behalf of, Dollar General.
Dollar General Corporation Investor Contacts: Mary Winn
Pilkington, 615-855-5536 or Matt Hancock, 615-855-4811 or Media
Contact: Dan MacDonald, 615-855-5209
