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
Date of Report (Date of earliest event reported):
August 8, 2000 (August 8, 2000)
Tennessee 001-11421 61-0502302
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(State or Other Jurisdiction of (Commission File Number) (I.R.S. Employer
Incorporation) Identification No.)
100 Mission Ridge
Goodlettsville, Tennessee 37072
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (615) 855-4000
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N/A
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(Former name or former address, if changed since last report)
On August 8, 2000, Dollar General Corporation reported preliminary results for the second quarter ended July 28, 2000. Exhibit 99.1 sets forth the press release issued by the company. In addition, on August 8, 2000, the company announced that its board of directors has authorized the company to repurchase from time to time up to an additional 5,000,000 shares of its outstanding common stock in the open market or in privately negotiated transactions. Exhibit 99.2 sets forth the press release issued by the company. These two press releases are hereby incorporated by reference into this Item 5.
(c) Exhibits:
99.1 Press Release dated August 8, 2000.
99.2 Press Release dated August 8, 2000.
SIGNATURES
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.
DOLLAR GENERAL CORPORATION
Date: August 8, 2000 By: /s/ Brian M. Burr
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Brian M. Burr
Executive Vice President and
Chief Financial Officer
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EXHIBIT INDEX
No. Exhibit ---- ------- 99.1 Press Release dated August 8, 2000. 99.2 Press Release dated August 8, 2000. |
EXHIBIT 99.1
DOLLAR GENERAL REPORTS SECOND QUARTER SALES AND EARNINGS
GOODLETTSVILLE, Tenn.--August 8, 2000--Dollar General Corporation (NYSE: DG) today reported earnings per diluted share of $0.12 for the second quarter ended July 28, 2000, flat when compared with the second quarter last year. Total sales increased 11.2% to $1,017.4 million from $915.2 million last year. Same-store sales for the 13-week period decreased 2.6%.
"In the past four months, we have done a significant reset of all stores to position higher customer flow and inventory turn. All aisles have been widened by approximately 25% while also providing 50% more selling area to seasonal and opportunistic merchandise," said Cal Turner, Jr., Chairman and CEO. "Core merchandise has also been enhanced by adding 600 new items including select national brands desired by our customers. New scanning technology has been placed at the checkout and new shelf ordering processes instituted. This is a bunch of work, but it gets us ready for higher sales per square foot in the future."
For the quarter, gross margin equaled $282.0 million compared with $249.6 in 1999. As a percentage of sales, gross margin was 27.71% compared with 27.27% last year. Operating expenses for the quarter equaled $216.0 million, or 21.23% of sales, compared with $182.4 million, or 19.93% of sales, in the same period a year ago. Net income for the quarter decreased 5.5% to $39.3 million, compared with $41.6 million last year.
Year-to-date, capital expenditures equaled $142.0 million, compared with $73.4 million in the same period last year. Capital expenditures for the quarter included investments in new store openings and distribution center projects. The company opened 220 new stores, remodeled or relocated 36 stores and closed 11 stores during the quarter. At quarter end, the company operated 4,719 stores.
Total LIFO merchandise inventories increased 11.7% to $1,062.2 million from $951.1 million as a result of operating 721 more stores and operating one additional distribution center. For the quarter, interest expense increased to $4.3 million compared with $1.9 million.
Dollar General operates more than 4,719 neighborhood stores in 25 states with distribution centers in Florida, Georgia, Kentucky, Mississippi, Missouri, Oklahoma and Virginia.
This press release contains historical and forward-looking information. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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 in the forward-looking statements as a result of certain risks and uncertainties, including, but not limited to, general transportation and distribution delays or interruptions, inventory risks due to shifts in market demand, changes in product mix, interruptions in suppliers' business, fuel price and interest rate fluctuations, and costs and delays associated with building, opening and operating new distribution centers ("DCs") and stores. The Company undertakes no obligation to publicly release any revisions to any forward-looking statements contained herein to reflect events or circumstances occurring after the date of this report or to reflect the occurrence of unanticipated events.
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DOLLAR GENERAL CORPORATION
INCOME STATEMENTS
(000's)
(UNAUDITED)
-- FOR THE SECOND QUARTER ENDED --
JULY 28, 2000 JULY 30, 1999
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Sales $1,017,418 100.00% $915,210 100.00%
Cost of Sales 735,445 72.29 665,628 72.73
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Gross Margin 281,973 27.71 249,582 27.27
Operating Expenses 215,985 21.23 182,407 19.93
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Operating Income 65,988 6.48 67,175 7.34
Interest Expense 4,326 0.42 1,897 0.21
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Pre-Tax Income 61,662 6.06 65,278 7.13
Taxes 22,352 2.20 23,663 2.59
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Net Income $ 39,310 3.86% $ 41,615 4.55%
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Diluted earnings per share $ 0.12 $ 0.12
Weighted average diluted
shares 333,038 338,836
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DOLLAR GENERAL CORPORATION
INCOME STATEMENTS
(000's)
(UNAUDITED)
-- FOR THE YEAR-TO-DATE --
JULY 28, 2000 JULY 30, 1999
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Sales $2,014,497 100.00% $1,759,803 100.00%
Cost of Sales 1,459,815 72.47 1,284,274 72.98
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Gross Margin 554,682 27.53 475,529 27.02
Operating Expenses 417,863 20.74 350,458 19.91
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Operating Income 136,819 6.48 125,071 7.11
Interest Expense 5,604 0.42 2,776 0.16
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Pre-Tax Income 131,215 6.51 122,295 6.95
Taxes 47,565 2.36 44,332 2.52
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Net Income $ 83,650 4.15% $ 77,963 4.43%
========== ====== ========= ======
Diluted earnings per share $ 0.25 $ 0.23
Weighted average diluted
shares 333,885 337,514
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DOLLAR GENERAL CORPORATION
CONSOLIDATED BALANCE SHEETS
($000'S)
(UNAUDITED)
JULY 28 JULY 30
2000 1999
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Current Assets:
Cash and cash equivalents $ 14,040 $ 25,303
Merchandise inventories 1,062,175 951,109
Deferred income taxes 6,936 2,664
Other current assets 81,205 49,767
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TOTAL CURRENT ASSETS 1,164,356 1,028,843
Property & equipment, at cost 736,444 523,601
Less: Accumulated depreciation 286,774 219,978
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449,670 303,623
Other assets 12,936 9,617
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TOTAL ASSETS $ 1,626,962 $ 1,342,083
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Current Liabilities:
Current portion of long-term debt $ 2,334 $ 1,420
Short-term borrowings 21,992 148,494
Accounts payable 277,815 209,868
Accrued expenses 121,420 104,405
Income taxes 0 21,142
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TOTAL CURRENT LIABILITIES 423,561 485,329
Long-term obligations 205,369 1,507
Deferred income taxes 51,673 18,089
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TOTAL LIABILITIES 680,603 504,925
Shareholders' Equity:
Preferred stock 0 858
Common stock 164,548 133,116
Additional paid-in capital 245,341 440,482
Retained earnings 536,470 463,229
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946,359 1,037,685
Less: Treasury stock 0 200,527
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TOTAL SHAREHOLDERS' EQUITY 946,359 837,158
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TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 1,626,962 $ 1,342,083
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DOLLAR GENERAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(000'S)
(UNAUDITED)
-- For the Year-to-Date --
July 28 July 30
2000 1999
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Cash flows provided by (used in) operating activities:
Net income $ 83,650 $ 77,963
Adjustments to reconcile net income to net cash
provided by (used in) operating activities
Depreciation and amortization 37,952 30,296
Deferred income taxes (791) (12,155)
Change in operating assets and liabilities:
Merchandise inventories (76,460) (139,387)
Other Current Assets (36,169) (7,389)
Accounts payable (56,739) (47,891)
Accrued expenses 45 (68,420)
Income taxes (15,135) (2,683)
Other (3,216) 823
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Net cash provided by (used in)
operating activities (66,863) (168,843)
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Cash flows provided by (used in) investing activities:
Purchase of property and equipment (142,044) (73,433)
Proceeds from sale of property and equipment 117 61,941
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Net cash provided by (used in)
investing activities (141,927) (11,492)
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Cash flows provided by (used in) financing activities:
Issuance of short-term borrowings 249,595 222,814
Repayments of short-term borrowings (227,603) (74,320)
Issuance of long-term debt 206,677 2,086
Repayments of long-term debt (1,416) (670)
Payment of cash dividend (21,079) (17,004)
Proceeds from exercise of stock options 15,926 26,523
Repurchase of common stock (65,548) 0
Tax effect of stock options 7,489 23,915
Other 0 0
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Net cash provided by (used in)
financing activities 164,041 183,344
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Net increase (decrease) in cash and cash
equivalents (44,749) 3,009
Cash and cash equivalents beginning of period 58,789 22,294
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Cash and cash equivalents end of period $ 14,040 $ 25,303
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EXHIBIT 99.2
FOR IMMEDIATE RELEASE PRESS RELEASE
CONTACT: Dollar General Corporation
100 Mission Ridge
Goodlettsville, Tennessee 37072
Investor Contact: Kiley Fleming
(615) 855-5525
DOLLAR GENERAL AUTHORIZES REPURCHASE OF COMMON STOCK
GOODLETTSVILLE, TENNESSEE - August 8, 2000 - Dollar General Corporation (NYSE:
DG) announced today that its Board of Directors has authorized the Company to
repurchase from time to time, in the open market or in privately negotiated
transactions, up to five million shares of its outstanding common stock. The
Company currently has 329,085,710 shares of common stock issued and outstanding.
Under this authorization, which expires August 7, 2002, the Company may
repurchase its common stock from time to time depending upon market price and
other factors.
The Company has repurchased approximately 6.4 million shares, adjusted for stock splits, under the Board's previously authorized stock repurchase program, which expires May 1, 2001.
Dollar General is a chain of more than 4,719 neighborhood stores in 25 states, with distribution centers in Florida, Georgia, Kentucky, Mississippi, Missouri,
Oklahoma and Virginia.