Exhibit 99.1
THE HOME DEPOT ANNOUNCES FIRST QUARTER RESULTS
ATLANTA, May 19, 2009 — The Home Depot®, the world’s largest home improvement retailer,
today reported first quarter of fiscal 2009 net earnings of $514 million, or $0.30 per diluted
share, compared with net earnings of $356 million, or $0.21 per diluted share, in the same period
in fiscal 2008.
First quarter of 2009 results reflect a net impact to operating profit of $117 million related to
the closing of the EXPO businesses. In the first quarter of 2008, the Company’s reported results
included charges of $543 million associated with the Company’s store rationalization plan. On an
adjusted basis, the Company reported first quarter of fiscal 2009 net earnings of $587 million, or
$0.35 per diluted share, compared to adjusted net earnings of $697 million, or $0.41 per diluted
share, in the same period of fiscal 2008.
Sales for the first quarter totaled $16.2 billion, a 9.7 percent decrease from the first quarter of
fiscal 2008. Comparable store sales for the first quarter were negative 10.2 percent, and comp
sales for U.S. stores were negative 8.6 percent.
“Our markets, and the consumer in general, remain under pressure,” said Frank Blake, chairman &
CEO. “But we continue to make progress on improving our business as evidenced by stronger customer
satisfaction ratings.
“I want to thank our associates for their hard work and dedication. It is their efforts that enable
us to deliver these results.”
The Company reaffirmed its guidance for fiscal 2009 of sales down 9 percent with negative
comparable store sales in the high single digit area and earnings per share from continuing
operations down 7 percent.
On June 10 at 8:30 a.m. ET, the Company will hold its Investor and Analyst Conference to update
the investment community on key areas of the business. All presentations will be webcast live at
homedepot.com in the Investor Relations section.
The Home Depot will conduct a conference call today at 9 a.m. ET to discuss information included in
this news release and related matters. The conference call will be available in its entirety
through a webcast and replay at homedepot.com in the Investor Relations section.
At the end of the first quarter, the Company operated a total of 2,238 retail stores, which
included 1,973 The Home Depot stores in the United States (including the Commonwealth of Puerto
Rico, the territory of the U.S. Virgin Islands and the territory of Guam), 178 stores in Canada, 75
stores in Mexico and 12 stores in China. The Company employs more than 300,000 associates. The Home
Depot’s stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones
industrial average and Standard & Poor’s 500 index. HDE
To provide clarity about the Company’s operating performance for the recently completed fiscal
quarter, the Company supplemented its reporting of net earnings and earnings per share with
non-GAAP measurements to reflect the impact of the store rationalization charge, business
rationalization charges, and related restructuring charges. The Company believes such non-GAAP
measurements provide management and investors with meaningful information to understand and analyze
the Company’s performance. However, this supplemental information should not be considered in
isolation or as a substitute for the GAAP measurements. A reconciliation of the supplemental
information to the comparable GAAP measurements can be found in the attached schedule.
Certain statements contained herein constitute “forward-looking statements” as defined in the
Private Securities Litigation Reform Act of 1995. Forward-looking statements may relate to, among
other things, the demand for our products and services, net sales growth, comparable store sales,
impact of cannibalization, store openings and closures, state of the economy, state of residential
construction, housing and home improvement markets, commodity price inflation and deflation,
implementation of store initiatives, continuation of reinvestment plans, net earnings performance,
earnings per share, capital allocation and expenditures, liquidity, return on invested capital,
management of the Company’s purchasing or customer credit policies, the effect of charges, the
planned recapitalization of the Company, timing of the completion of such recapitalization, the
ability to issue debt on terms and at rates acceptable to us and financial outlook. Such
forward-looking statements are based on currently available information and current assumptions,
expectations and projections about future events. You are cautioned not to place undue reliance on
our forward-looking statements. Such statements are not guarantees of future performance and are
subject to future events, risks and uncertainties — many of which are beyond our control or are
currently unknown to us — as well as potentially inaccurate assumptions that could cause actual
results to differ materially from our expectations and projections. Such risks and uncertainties
include but are not limited to those described in Item 1A, “Risk Factors,” and elsewhere in our
Annual Report on Form 10-K for our fiscal year ended February 1, 2009.
Forward-looking statements speak only as of the date they are made, and we do not undertake to
update such statements other than as required by law. You are advised, however, to review any
further disclosures we make on related subjects in our periodic filings with the Securities and
Exchange Commission.
For more information, contact: |
||
Financial Community
|
News Media | |
Diane Dayhoff
|
Paula Drake | |
Vice President of Investor Relations
|
Sr. Manager, Corporate Communications | |
770-384-2666
|
770-384-3439 | |
diane_dayhoff@homedepot.com
|
paula_drake@homedepot.com |
THE HOME DEPOT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS ENDED MAY 3, 2009 AND MAY 4, 2008
(Unaudited)
(Amounts in Millions Except Per Share Data and as Otherwise Noted)
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS ENDED MAY 3, 2009 AND MAY 4, 2008
(Unaudited)
(Amounts in Millions Except Per Share Data and as Otherwise Noted)
| Three Months Ended | % Increase | |||||||||||
| 5-3-09 | 5-4-08 | (Decrease) | ||||||||||
NET SALES |
$ | 16,175 | $ | 17,907 | (9.7 | )% | ||||||
Cost of Sales |
10,725 | 11,835 | (9.4 | ) | ||||||||
GROSS PROFIT |
5,450 | 6,072 | (10.2 | ) | ||||||||
Operating Expenses: |
||||||||||||
Selling, General and Administrative |
4,042 | 4,900 | (17.5 | ) | ||||||||
Depreciation and Amortization |
428 | 444 | (3.6 | ) | ||||||||
Total Operating Expenses |
4,470 | 5,344 | (16.4 | ) | ||||||||
OPERATING INCOME |
980 | 728 | 34.6 | |||||||||
Interest (Income) Expense: |
||||||||||||
Interest and Investment Income |
(5 | ) | (3 | ) | 66.7 | |||||||
Interest Expense |
180 | 167 | 7.8 | |||||||||
Interest, net |
175 | 164 | 6.7 | |||||||||
EARNINGS BEFORE PROVISION FOR INCOME TAXES |
805 | 564 | 42.7 | |||||||||
Provision for Income Taxes |
291 | 208 | 39.9 | |||||||||
NET EARNINGS |
$ | 514 | $ | 356 | 44.4 | % | ||||||
Weighted Average Common Shares |
1,683 | 1,679 | 0.2 | % | ||||||||
BASIC EARNINGS PER SHARE |
$ | 0.31 | $ | 0.21 | 47.6 | |||||||
Diluted Weighted Average Common Shares |
1,689 | 1,683 | 0.4 | % | ||||||||
DILUTED EARNINGS PER SHARE |
$ | 0.30 | $ | 0.21 | 42.9 | |||||||
| Three Months Ended | % Increase | |||||||||||
| SELECTED HIGHLIGHTS | 5-3-09 | 5-4-08 | (Decrease) | |||||||||
Number of Customer Transactions |
310 | 314 | (1.3 | )% | ||||||||
Average Ticket (actual) |
$ | 52.67 | $ | 57.36 | (8.2 | ) | ||||||
Weighted Average Weekly Sales
per Operating Store (in thousands) |
$ | 552 | $ | 616 | (10.4 | ) | ||||||
Square Footage at End of Period |
235 | 237 | (0.8 | ) | ||||||||
Capital Expenditures |
$ | 172 | $ | 449 | (61.7 | ) | ||||||
Depreciation and Amortization (1) |
$ | 453 | $ | 474 | (4.4 | )% | ||||||
| (1) | Includes depreciation of distribution centers and tool rental equipment included in Cost of Sales and amortization of deferred financing costs included in Interest Expense. |
THE HOME DEPOT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF MAY 3, 2009, MAY 4, 2008 AND FEBRUARY 1, 2009
(Amounts in Millions)
CONSOLIDATED BALANCE SHEETS
AS OF MAY 3, 2009, MAY 4, 2008 AND FEBRUARY 1, 2009
(Amounts in Millions)
| 5-3-09 | 5-4-08 | 2-1-09 | ||||||||||
| (Unaudited) | (Unaudited) | (Audited) | ||||||||||
ASSETS |
||||||||||||
Cash and Short-Term Investments |
$ | 2,220 | $ | 779 | $ | 525 | ||||||
Receivables, net |
1,283 | 1,571 | 972 | |||||||||
Merchandise Inventories |
11,428 | 12,637 | 10,673 | |||||||||
Other Current Assets |
1,383 | 1,353 | 1,192 | |||||||||
Total Current Assets |
16,314 | 16,340 | 13,362 | |||||||||
Property and Equipment, net |
25,894 | 27,113 | 26,234 | |||||||||
Goodwill |
1,134 | 1,210 | 1,134 | |||||||||
Other Assets |
425 | 933 | 434 | |||||||||
TOTAL ASSETS |
$ | 43,767 | $ | 45,596 | $ | 41,164 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||||
Short-Term Debt |
$ | — | $ | 495 | $ | — | ||||||
Accounts Payable |
6,901 | 7,861 | 4,822 | |||||||||
Accrued Salaries and Related Expenses |
1,077 | 1,029 | 1,129 | |||||||||
Current Installments of Long-Term Debt |
1,768 | 300 | 1,767 | |||||||||
Other Current Liabilities |
3,802 | 4,434 | 3,435 | |||||||||
Total Current Liabilities |
13,548 | 14,119 | 11,153 | |||||||||
Long-Term Debt |
9,667 | 11,339 | 9,667 | |||||||||
Other Long-Term Liabilities |
2,558 | 2,432 | 2,567 | |||||||||
Total Liabilities |
25,773 | 27,890 | 23,387 | |||||||||
Total Stockholders’ Equity |
17,994 | 17,706 | 17,777 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ | 43,767 | $ | 45,596 | $ | 41,164 | ||||||
THE HOME DEPOT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS ITEMS EXCLUDING CERTAIN ADJUSTMENTS (NON-GAAP)
FOR THE THREE MONTHS ENDED MAY 3, 2009 AND MAY 4, 2008
(Unaudited)
(Amounts in Millions Except Per Share Data)
CONSOLIDATED STATEMENTS OF EARNINGS ITEMS EXCLUDING CERTAIN ADJUSTMENTS (NON-GAAP)
FOR THE THREE MONTHS ENDED MAY 3, 2009 AND MAY 4, 2008
(Unaudited)
(Amounts in Millions Except Per Share Data)
| Three Months Ended 5-3-09 | ||||||||||||
| As Adjusted | ||||||||||||
| Actuals | Adjustments(1) | (Non-GAAP) | ||||||||||
Net Sales |
$ | 16,175 | $ | 221 | $ | 15,954 | ||||||
Gross Profit |
5,450 | 29 | 5,421 | |||||||||
Total Operating Expenses |
4,470 | 146 | 4,324 | |||||||||
Operating Income |
980 | (117 | ) | 1,097 | ||||||||
Net Earnings |
$ | 514 | $ | (73 | ) | $ | 587 | |||||
Diluted Earnings Per Share |
$ | 0.30 | $ | (0.04 | ) | $ | 0.35 | |||||
| Three Months Ended 5-4-08 | ||||||||||||
| As Adjusted | ||||||||||||
| Actuals | Adjustments(1) | (Non-GAAP) | ||||||||||
Net Sales |
$ | 17,907 | $ | — | $ | 17,907 | ||||||
Gross Profit |
6,072 | (10 | ) | 6,082 | ||||||||
Total Operating Expenses |
5,344 | 533 | 4,811 | |||||||||
Operating Income |
728 | (543 | ) | 1,271 | ||||||||
Net Earnings |
$ | 356 | $ | (341 | ) | $ | 697 | |||||
Diluted Earnings Per Share |
$ | 0.21 | $ | (0.20 | ) | $ | 0.41 | |||||
| Note: | Certain amounts in Diluted Earnings Per Share may not foot due to rounding. | |
| (1) | Adjustments are comprised of store rationalization charges related to closing of 15 stores and the removal of 50 stores from our future growth pipeline, business rationalization charges related to the exit of EXPO, THD Design Center, Yardbirds and HD Bath businesses, as well as net sales of those exited businesses during the period from closing announcement to actual closing, and charges related to restructuring of support functions. |