UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Tennessee 001-11421 61-0502302
--------------------------------------------------------------------------------
(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) Identification No.)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On August 25, 2005, Dollar General Corporation (the "Company") issued a news release regarding results of operations and financial condition for the second quarter ended July 29, 2005. The news release is attached hereto as Exhibit 99 and incorporated by reference as if fully set forth herein.
ITEM 7.01. REGULATION FD DISCLOSURE
The information set forth in Item 2.02 above is incorporated herein by reference. The press release also sets forth information regarding the planned conference call and webcast to discuss second quarter results, the outlook for the fiscal 2005 third and fourth quarters and full year, and other matters.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements of businesses acquired. N/A
(b) Pro Forma Financial Information. N/A
(c) Exhibits. See Exhibit Index immediately following the signature
page hereto.
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 hereunto duly authorized.
By: /s/ Susan S. Lanigan
---------------------------------------------
Susan S. Lanigan
Executive Vice President and General Counsel
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EXHIBIT INDEX
Exhibit No. Description
----------- -----------
99 News release dated August 25, 2005.
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Exhibit 99
Dollar General Reports Second Quarter 2005 EPS of $0.23; Comments on 2005 Outlook
GOODLETTSVILLE, Tenn.--(BUSINESS WIRE)--Aug. 25, 2005--Dollar
General Corporation (NYSE:DG) today reported net income for the second
quarter of fiscal 2005 of $75.6 million, or $0.23 per share, compared
to net income of $71.3 million, or $0.22 per share, in the second
quarter of fiscal 2004. Earnings per share ("EPS") for the quarter
increased five percent over the prior year quarter. As previously
disclosed, excluding adjustments made in the second quarter of fiscal
2004 to reduce certain income tax-related liabilities and related
interest accruals by $7.4 million, net income for the second quarter
of fiscal 2004 would have been $63.9 million, or $0.19 per share.
Excluding last year's adjustment, fiscal 2005 results equate to a 21
percent growth in EPS.
Net sales for the second quarter ended July 29, 2005, were $2.07
billion, a 12.5 percent increase over net sales of $1.84 billion for
the same period of fiscal 2004. The increase is primarily a result of
633 net new stores and a same-store sales increase of 3.9 percent.
As a percentage of sales, gross profit for the fiscal 2005 second
quarter declined to 28.6 percent from 29.2 percent for the comparable
period in fiscal 2004. The decrease in the gross profit rate is
primarily attributable to: 1) lower sales, as a percent of total
sales, of the Company's home products, basic clothing and seasonal
categories, all of which have higher than average markups; 2) higher
transportation costs, primarily resulting from increased fuel
expenses; 3) increased inventory markdowns taken in connection with
the Company's per-store inventory reduction initiatives; and 4) the
unfavorable impact (17 basis points) resulting from the expansion from
fiscal 2004 of the number of departments used in the Company's retail
inventory method calculation of merchandise inventories and related
profit margin ("RIM expansion").
Selling, general and administrative expenses ("SG&A") decreased to
22.8 percent of sales for the second quarter of fiscal 2005 versus
23.4 percent of sales during the comparable prior year quarter.
Significant factors contributing to the decrease in SG&A, as a percent
of sales are: 1) a decrease in store labor costs, resulting from
cost-containment efforts, including the Company's EZstore project
which has been fully implemented in 2,625 stores; 2) lower costs of
counting physical inventories; and 3) lower health benefits expense,
resulting from a decrease in the time lag used for estimating the
Company's accrual for incurred, but not reported, claims based upon
review and recommendation by the Company's outside actuary. These
benefits were partially offset by increases in rent expense associated
with the Company's leased store locations.
The effective income tax rate for the second quarter of 2005 was
34.8 percent compared to 31.5 percent in the comparable prior year
period. The rate for the 2005 period is lower than the Company's
estimated annual effective rate of approximately 36.1 percent (subject
to quarterly adjustments) primarily due to the year-to-date impact of
state investment tax credits associated with the construction of the
distribution center in Indiana and the impact on certain taxes of an
internal corporate restructuring. As discussed above, the tax rate in
the 2004 period was favorably impacted by adjustments to reduce
certain contingent income tax-related liabilities.
For the 26-week year-to-date period, net income was $140.5 million
in fiscal 2005, or $0.43 per share, compared to $139.2 million, or
$0.42 per share, in the comparable prior year period. Excluding the
effect of the income tax-related adjustments described above, net
income for the 26-week period ended July 30, 2004 would have been
$131.7 million, or $0.39 per share.
Year-to-date net sales increased 12.8 percent, including a
same-store sales increase of 4.4 percent. As a percentage to sales,
gross margin for the year-to-date period was 28.6 percent in 2005
compared to 29.3 percent in 2004. The decrease in gross margin is
primarily attributable to a decrease, as a percentage of total sales,
of sales in higher margin categories, an unfavorable impact resulting
from the RIM expansion (17 basis points), and increased transportation
costs, primarily resulting from higher fuel costs.
SG&A expenses for the year-to-date period decreased as a
percentage of sales to 22.9 percent in 2005 from 23.1 percent in 2004.
Significant factors contributing to the year-to-date decrease in SG&A,
as a percent of sales are: 1) a decrease in store labor costs,
resulting from cost-containment efforts, including the Company's
EZstore project; 2) lower health benefits expense, resulting from a
decrease in the time lag used for estimating the Company's accrual for
incurred, but not reported, claims based upon review and
recommendation by the Company's outside actuary; and 3) decreases from
the 2004 year-to-date period in external consulting fees, primarily
relating to the Company's EZstore project and fees associated with the
Company's initial Sarbanes-Oxley compliance efforts. These benefits
were partially offset by increases in rent expense associated with the
Company's leased store locations.
As of July 29, 2005, the Company operated 7,712 neighborhood
stores, including 30 Dollar General Markets. For the 26-week period
ended July 29, 2005, the Company opened 438 new stores and closed 46
stores. Store openings are on track to meet or exceed the Company's
target of 730 total new stores this year.
Year-to-date, the Company repurchased approximately 8.4 million
shares of its common stock for $172.8 million. As of July 29, 2005,
approximately 1.0 million shares remained available under the current
repurchase authorization, which expires November 30, 2005.
Third and Fourth Quarter 2005 Outlook
August same-store sales are currently estimated to be in the range
of 0.5 percent to 1.0 percent. The Company believes that consumer
discretionary spending has been greatly impacted in August due to the
combination of fuel prices and aggressive back-to-school marketing and
discounted pricing by competitors. Same-store sales are currently
estimated to be in the range of one percent to three percent for the
third quarter and in the range of two percent to four percent for the
fourth quarter.
Accordingly, the Company expects EPS for its third quarter ending
October 28, 2005 to be in the range of $0.19-$0.21. Included in this
estimate is a negative impact of approximately $0.02-$0.03 per share
resulting from the RIM expansion. Additionally, management expects
transportation costs, primarily fuel-related, to have a significant
negative impact on gross profit in the third quarter as the Company
has its heaviest number of shipments in preparation for the holiday
season.
For the fourth quarter of 2005, which includes an additional week,
the Company expects EPS to be in the range of $0.53-$0.55. Included in
this estimate is a favorable impact of approximately $0.03-$0.04 per
share resulting from the RIM expansion.
For the 53-week year ending February 3, 2006, the Company expects
to report EPS of $1.15-$1.19. Capital expenditures for the year are
expected to be approximately $350 million.
Conference Call
The Company will host a conference call on Thursday, August 25, 2005, at 10 a.m. EDT. The security code for the conference call is "Dollar General." If you wish to participate, please call (334) 260-2280 at least 10 minutes before the conference call is scheduled to begin. The call will also be broadcast live online at www.dollargeneral.com and can be accessed by clicking on the homepage "Spotlight Item." A replay of the conference call will be available until 5 p.m. EDT on Thursday, September 8, online or by calling (334) 323-7226. The replay pass code is 30073306.
Non-GAAP Disclosures
This press release and the tables accompanying this release include certain financial information not derived in accordance with generally accepted accounting principles ("GAAP"), including net income and EPS, each excluding an adjustment resulting from the reduction of certain income tax liabilities and the related interest accruals. Management believes that net income and EPS, excluding the income tax-related adjustment, more clearly reflect the Company's actual performance on a comparable and ongoing basis. In addition, return on invested capital ("ROIC"), included in the accompanying schedules to this release, may be considered a non-GAAP financial measure. Management believes that ROIC is useful because it provides investors with additional useful information for evaluating the efficiency of the Company's capital deployed in its operations. The Company has also provided a calculation of ROIC and return on assets, computed using net income, excluding a restatement-related penalty, a non-GAAP measure, which management believes more clearly reflects the ongoing operations of the Company. None of these non-GAAP measures should be considered a substitute for measures derived in accordance with GAAP. The Company has included its calculations of these non-GAAP measures and reconciliations to the most comparable GAAP financial measures in the accompanying schedules.
Forward-Looking Information
This press release contains forward-looking information, such as the information in the sections entitled "Third and Fourth Quarter 2005 Outlook," as well as expected fiscal 2005 new store openings and comments regarding the Company's ongoing effective income tax rate. The words "believe," "anticipate," "project," "plan," "schedule," "expect," "estimate," "objective," "forecast," "goal," "intend," "will likely result," or "will continue" and similar expressions generally identify forward-looking statements. These matters involve risks, uncertainties and other factors that may cause the actual performance of the Company to differ materially from that expressed or implied by these forward-looking statements. All forward-looking information should be evaluated in the context of these risks, uncertainties and other factors. The Company believes the assumptions underlying these forward-looking statements are reasonable; however, any of the assumptions could be inaccurate and, therefore, actual results may differ materially from those projected by, or implied in, the forward-looking statements. Factors that may result in actual results differing from such forward-looking information include, but are not limited to:
-- fuel price and interest rate fluctuations;
-- a deterioration in general economic conditions, such as unemployment levels, business conditions, high fuel and energy costs, interest rates and tax rates, whether caused by acts of war, terrorism or other factors;
-- changes in demand due to unexpected or unusual weather patterns, economic conditions or other factors;
-- transportation and distribution delays or interruptions both domestically and internationally;
-- labor shortages in the trucking industry;
-- the Company's ability to negotiate effectively the cost and purchase of merchandise;
-- prolonged or repeated price increases of certain raw materials that could affect vendors' product costs;
-- inventory risks due to shifts in market demand;
-- changes in product mix;
-- interruptions in suppliers' businesses;
-- the inability to execute operating initiatives;
-- costs and potential problems and interruptions associated with implementation of new or upgraded systems and technology or with maintenance or adequate support of existing systems;
-- higher than expected increases in health insurance costs or workers' compensation, general liability insurance, property insurance or directors' and officers' liability insurance costs;
-- seasonality of the Company's business such as a sales shortfall during the Christmas selling season;
-- unanticipated changes in the federal or state minimum wage or living wage requirements or changes in other wage or workplace regulations, as well as the Company's ability to timely comply with those regulations;
-- changes in federal, state or local regulations governing the sale of the Company's products, particularly "over-the-counter" medications or health products;
-- excessive costs and delays associated with building, opening and operating new stores;
-- excessive costs and delays associated with building or opening distribution centers;
-- competition in the retail industry;
-- results of legal proceedings and claims; and
-- other risk factors described in the Company's Form 10-K for the fiscal year ended January 28, 2005, filed with the SEC on April 12, 2005, and most recent Form 10-Q, as well as elsewhere in this press release.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Except as may be required by law, the Company disclaims any obligation to publicly update or revise any forward-looking statements contained herein to reflect events or circumstances occurring after the date of this release or to reflect the occurrence of unanticipated events. Readers are advised, however, to consult any further disclosures the Company may make on related subjects in its public disclosures or documents filed with the SEC.
About Dollar General
Dollar General is a Fortune 500(R) discount retailer with 7,712 neighborhood stores as of July 29, 2005. Dollar General stores offer convenience and value to customers by offering consumable basic items that are frequently used and replenished, such as food, snacks, health and beauty aids and cleaning supplies, as well as a selection of basic apparel, housewares and seasonal items at everyday low prices. The Company store support center is located in Goodlettsville, Tennessee. Dollar General's Web site can be reached at www.dollargeneral.com.
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
For the 13 Weeks Ended
-------------------------------------
July 29, %of Net July 30, %of Net
2005 Sales 2004 Sales
------------------ ------------------
Net sales $2,066,016 100.00% $1,836,243 100.00%
Cost of goods sold 1,474,486 71.37% 1,299,263 70.76%
----------------------------------------------------------------------
Gross profit 591,530 28.63% 536,980 29.24%
Selling, general and
administrative 470,460 22.77% 428,854 23.35%
----------------------------------------------------------------------
Operating profit 121,070 5.86% 108,126 5.89%
Interest income (2,156) -0.10% (1,404) -0.08%
Interest expense 7,344 0.36% 5,445 0.30%
----------------------------------------------------------------------
Income before income taxes 115,882 5.61% 104,085 5.67%
Income taxes 40,324 1.95% 32,763 1.78%
----------------------------------------------------------------------
Net income $ 75,558 3.66% $ 71,322 3.88%
======================================================================
Basic earnings per share $ 0.23 $ 0.22
============================================ ===========
Weighted average basic shares 323,836 327,799
============================================ ===========
Diluted earnings per share $ 0.23 $ 0.22
============================================ ===========
Weighted average diluted shares 326,340 330,298
============================================ ===========
Dividends per share $ 0.045 $ 0.040
============================================ ===========
For the 26 Weeks Ended
-------------------------------------
July 29, %of Net July 30, %of Net
2005 Sales 2004 Sales
------------------ ------------------
Net sales $4,043,845 100.00% $3,584,202 100.00%
Cost of goods sold 2,888,966 71.44% 2,534,972 70.73%
----------------------------------------------------------------------
Gross profit 1,154,879 28.56% 1,049,230 29.27%
Selling, general and
administrative 926,888 22.92% 826,554 23.06%
----------------------------------------------------------------------
Operating profit 227,991 5.64% 222,676 6.21%
Interest income (4,772) -0.12% (3,406) -0.10%
Interest expense 13,312 0.33% 13,889 0.39%
----------------------------------------------------------------------
Income before income taxes 219,451 5.43% 212,193 5.92%
Income taxes 78,993 1.95% 73,022 2.04%
----------------------------------------------------------------------
Net income $ 140,458 3.47% $ 139,171 3.88%
======================================================================
Basic earnings per share $ 0.43 $ 0.42
============================================ ============
Weighted average basic shares 326,022 330,954
============================================ ===========
Diluted earnings per share $ 0.43 $ 0.42
============================================ ===========
Weighted average diluted shares 328,779 333,778
============================================ ===========
Dividends per share $ 0.085 $ 0.080
============================================ ===========
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DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
July 29, Jan. 28,
2005 2005
----------- -----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 145,950 $ 232,830
Short-term investments - 42,925
Merchandise inventories 1,460,700 1,376,537
Deferred income taxes 33,708 24,908
Prepaid expenses and other current assets 58,305 53,702
----------------------------------------------------------------------
Total current assets 1,698,663 1,730,902
----------------------------------------------------------------------
Property and equipment, at cost 2,063,696 1,940,335
Less: accumulated depreciation and
amortization 941,999 859,497
----------------------------------------------------------------------
Net property and equipment 1,121,697 1,080,838
----------------------------------------------------------------------
Other assets, net 20,006 29,264
----------------------------------------------------------------------
Total assets $2,840,366 $2,841,004
======================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term obligations $ 9,561 $ 12,860
Accounts payable 462,697 409,327
Accrued expenses and other 347,606 333,889
Income taxes payable 49,504 69,616
----------------------------------------------------------------------
Total current liabilities 869,368 825,692
----------------------------------------------------------------------
Long-term obligations 255,445 258,462
Deferred income taxes 67,736 72,385
Shareholders' equity:
Preferred stock - -
Common stock 160,630 164,086
Additional paid-in capital 447,617 421,600
Retained earnings 1,046,650 1,102,457
Accumulated other comprehensive loss (883) (973)
----------------------------------------------------------------------
1,654,014 1,687,170
Other shareholders' equity (6,197) (2,705)
----------------------------------------------------------------------
Total shareholders' equity 1,647,817 1,684,465
----------------------------------------------------------------------
Total liabilities and shareholders' equity $2,840,366 $2,841,004
======================================================================
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DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
For the 26
Weeks Ended
-------------------
July 29, July 30,
2005 2004(a)
--------- ---------
Cash flows from operating activities:
Net income $140,458 $139,171
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 90,316 80,697
Deferred income taxes (13,449) 29,017
Tax benefit from stock option exercises 3,810 3,684
Change in operating assets and liabilities:
Merchandise inventories (84,163) (222,402)
Prepaid expenses and other current assets (4,603) (2,159)
Accounts payable 62,213 60,971
Accrued expenses and other 14,391 8,172
Income taxes (20,165) (26,295)
Other 10,208 (16,268)
----------------------------------------------------------------------
Net cash provided by operating activities 199,016 54,588
----------------------------------------------------------------------
Cash flows from investing activities:
Purchases of property and equipment (139,594) (134,453)
Purchases of short-term investments (30,250) (149,425)
Sales of short-term investments 73,175 206,850
Proceeds from sale of property and equipment 822 90
----------------------------------------------------------------------
Net cash used in investing activities (95,847) (76,938)
----------------------------------------------------------------------
Cash flows from financing activities:
Repayments of long-term obligations (8,183) (8,419)
Payment of cash dividends (27,596) (26,448)
Proceeds from exercise of stock options 18,441 14,285
Repurchases of common stock (172,755) (169,391)
Other financing activities 44 (970)
----------------------------------------------------------------------
Net cash used in financing activities (190,049) (190,943)
----------------------------------------------------------------------
Net decrease in cash and cash equivalents (86,880) (213,293)
Cash and cash equivalents, beginning of period 232,830 345,899
----------------------------------------------------------------------
Cash and cash equivalents, end of period $145,950 $132,606
======================================================================
Supplemental schedule of noncash investing
and financing activities:
Purchases of property and equipment awaiting
processing for payment, included in
accounts payable $ 4,078 $ 5,366
Purchases of property and equipment under
capital lease obligations $ 1,845 $ 1,364
======================================================================
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(a) Certain amounts have been reclassified to conform to the current period presentation.
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Selected Additional Information
(Unaudited)
Sales by Category (in thousands)
-------------------------------------------
13 Weeks Ended
-------------------------------------------
July 29, July 30, %
2005 2004 Increase
------------- ------------- -------------
Highly consumable $1,351,796 $1,167,324 15.8%
Seasonal 317,544 290,893 9.2%
Home products 215,132 208,153 3.4%
Basic clothing 181,544 169,873 6.9%
------------- ------------- -------------
Total sales $2,066,016 $1,836,243 12.5%
============= ============= =============
26 Weeks Ended
-------------------------------------------
July 29, July 30, %
2005 2004 Increase
------------- ------------- -------------
Highly consumable $2,673,102 $2,281,718 17.2%
Seasonal 592,839 551,331 7.5%
Home products 426,884 422,926 0.9%
Basic clothing 351,020 328,227 6.9%
------------- ------------- -------------
Total sales $4,043,845 $3,584,202 12.8%
============= ============= =============
New Store Activity
-----------------------------
26 Weeks Ended
-------------- -------------
July 29, July 30,
2005 2004
-------------- -------------
Beginning store count 7,320 6,700
New store openings 438 420
Store closings 46 41
Net new stores 392 379
Ending store count 7,712 7,079
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Total selling square footage (000's) 53,004 48,139
Customer Transaction Data
------------------------------------
13 Weeks Ended 26 Weeks Ended
------------------ -----------------
July 29, July 30, July 29, July 30,
2005 2004 2005 2004
--------- -------- -------- --------
Same-store customer transactions + 0.3% + 2.8% + 0.8% + 3.2%
Average customer purchase
(total stores) $8.76 $8.36 $8.78 $8.38
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DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Non-GAAP Disclosures and Reconciliations Return on Invested Capital (b)
(Unaudited)
(Restated) (a)
For the four
quarters ended
-----------------------
July 29, July 30,
(In thousands) 2005 2004
----------- -----------
Net income $ 345,477 $ 317,905
Add:
Interest expense, net 20,276 24,676
Rent expense 275,669 235,547
Tax effect of interest and rent (107,311) (95,177)
----------- -----------
Interest and rent, net of tax 188,634 165,046
----------- -----------
Return, net of tax $ 534,111 $ 482,951
----------- -----------
Restatement-related penalty expense - 10,000
----------- -----------
Return excluding restatement-related items $ 534,111 $ 492,951
----------- -----------
Average invested capital:
Average long-term obligations (c) $ 282,876 $ 282,100
Shareholders' equity (d) 1,626,274 1,479,715
Average rent x 8 (e) 2,044,864 1,748,760
----------- -----------
Invested capital $3,954,014 $3,510,575
----------- -----------
Return on invested capital 13.5% 13.8%
=========== ===========
Return on invested capital, excluding
restatement-related items 13.5% 14.0%
=========== ===========
|
(a) Certain amounts used in the above calculations have been restated using the accounting practices for leases described in the Company's Form 10-K for the year ended January 28, 2005.
(b) The Company believes that the most directly comparable ratio calculated solely using GAAP measures is the ratio of net income to the sum of average long-term obligations, including current portion, and average shareholders' equity. This ratio was 18.1% and 18.0% for the rolling four quarters ended July 29, 2005 and July 30, 2004, respectively.
(c) Average long-term obligations is equal to the average long-term obligations, including current portion, measured at the end of each of the last five fiscal quarters.
(d) Average shareholders' equity is equal to the average shareholders' equity measured at the end of each of the last five fiscal quarters.
(e) Average rent expense is computed using a rolling two-year period. Average rent expense is multiplied by a factor of eight to capitalize operating leases in the determination of pretax invested capital. This is a conventional methodology utilized by credit rating agencies and investment bankers.
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Non-GAAP Disclosures and Reconciliations Return on Assets
(Unaudited)
(Restated) (a)
For the four
quarters ended
-----------------------
July 29, July 30,
(In thousands) 2005 2004
----------- -----------
Net income $ 345,477 $ 317,905
Restatement-related penalty expense - 10,000
----------- -----------
Net income, excluding
restatement-related items $ 345,477 $ 327,905
----------- -----------
Average assets (b) $2,801,149 $2,556,443
----------- -----------
Return on assets 12.3% 12.4%
=========== ===========
Return on assets, excluding
restatement-related items 12.3% 12.8%
=========== ===========
|
(a) Certain amounts used in the above calculations have been restated using the accounting practices for leases described in the Company's Form 10-K for the year ended January 28, 2005.
(b) Average assets is equal to the average total assets measured at the end of each of the last five fiscal quarters.
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Unaudited Adjusted Non-GAAP Results and Reconciliations Schedule for Informational Purposes Only
(In thousands, except per share amounts)
For the 13 Weeks Ended July 30, 2004
-----------------------------------------------
As % of Non-GAAP % of
Reported Net Adjusted Net
(GAAP) Sales Adjustments Results Sales
-----------------------------------------------
Net sales $1,836,243 100.00% $ - $1,836,243 100.00%
Cost of goods sold 1,299,263 70.76 - 1,299,263 70.76
----------------------------------------------------------------------
Gross profit 536,980 29.24 - 536,980 29.24
Selling, general and
administrative 428,854 23.35 - 428,854 23.35
----------------------------------------------------------------------
Operating profit 108,126 5.89 - 108,126 5.89
Interest income (1,404) -0.08 - (1,404) -0.08
Interest expense 5,445 0.30 1,958 7,403 0.40
----------------------------------------------------------------------
Income before
income taxes 104,085 5.67 (1,958) 102,127 5.56
Income taxes (a) 32,763 1.78 5,484 38,247 2.08
----------------------------------------------------------------------
Net income $ 71,322 3.88% $ (7,442) $ 63,880 3.48%
======================================================================
Basic earnings
per share $ 0.22 $ (0.02) $ 0.19
================================== ======================
Weighted average
basic shares 327,799 327,799 327,799
================================== ======================
Diluted earnings
per share $ 0.22 $ (0.02) $ 0.19
================================== ======================
Weighted average
diluted shares 330,298 330,298 330,298
================================== ======================
|
Net income $75,558 $75,558
Increase in
net income 6% 18%
Diluted earnings
per share $ 0.23 $ 0.23
Increase in
diluted earnings
per share 5% 21%
For the 26 Weeks Ended July 30, 2004
-----------------------------------------------
As % of Non-GAAP % of
Reported Net Adjusted Net
(GAAP) Sales Adjustments Results Sales
-----------------------------------------------
Net sales $3,584,202 100.00% $ - $3,584,202 100.00%
Cost of goods sold 2,534,972 70.73 - 2,534,972 70.73
----------------------------------------------------------------------
Gross profit 1,049,230 29.27 - 1,049,230 29.27
Selling, general and
administrative 826,554 23.06 - 826,554 23.06
----------------------------------------------------------------------
Operating profit 222,676 6.21 - 222,676 6.21
Interest income (3,406) -0.10 (3,406) -0.10
Interest expense 13,889 0.39 1,958 15,847 0.44
----------------------------------------------------------------------
Income before income
taxes 212,193 5.92 (1,958) 210,235 5.87
Income taxes (a) 73,022 2.04 5,484 78,506 2.19
----------------------------------------------------------------------
Net income $ 139,171 3.88% $ (7,442) $ 131,729 3.68%
======================================================================
Basic earnings
per share $ 0.42 $ (0.02) $ 0.40
================================== ======================
Weighted average
basic shares 330,954 330,954 330,954
================================== ======================
Diluted earnings
per share $ 0.42 $ (0.02) $ 0.39
================================== ======================
Weighted average
diluted shares 333,778 333,778 333,778
================================== ======================
|
Net income $140,458 $140,458
Increase in
net income 1% 7%
Diluted earnings
per share $ 0.43 $ 0.43
Increase in
diluted earnings
per share 2% 10%
|
(a) Adjustment to provision for taxes on income includes a $6,232 adjustment to tax liabilities, which is partially offset by the income tax effect of the related interest adjustment of $748.
CONTACT: Dollar General
Investor Contact:
Emma Jo Kauffman, 615-855-5525
or
Media Contact:
Tawn Earnest, 615-855-5209