EX-99 2 0002.txt EARNINGS RESULTS Exhibit 99.1 Investor Contact: Media Contact: Karen Moss Kiley Fleming Karen Moss (615) 855-5525 (615) 855-5210 DOLLAR GENERAL REPORTS EARNINGS RESULTS FOR THE FISCAL YEAR GOODLETTSVILLE, Tenn. - February 26, 2001 - Dollar General Corporation (NYSE: DG) today reported net income per diluted share for the 53-week fiscal year ended February 2, 2001, equaled $0.62 compared with $0.65 for the 52-week fiscal year ended January 28, 2000. Total sales for the fiscal year increased 17.1 percent to a record $4.55 billion from $3.89 billion last year. Same-store sales for the 52-week comparable period increased 0.9 percent. "Year-over-year declines in earnings are rare for Dollar General. 2000 was an unusual year of poorer implementation of our growth as we undertook more change than could be fully digested in one year," said Cal Turner, Jr., Chairman and CEO. "Earnings downturns have always brought valuable lessons and significant change, positioning future progress. Our reaction to last year has been the positioning of a new management team - a combination of a few select placements from the outside and even more promotions of great talent developed within the company - the best team in retailing!" For the year ended February 2, 2001, net income declined 6.1 percent to $206.0 million compared with $219.4 million last year. Gross margin equaled $1.26 billion, or 27.65 percent of sales, compared with $1.10 billion, or 28.24 percent of sales, in the same period a year ago. Operating expenses for the year equaled $923.8 million, or 20.30 percent of sales, compared with $748.5 million, or 19.25 percent of sales, last year. For the year, interest expense increased to $11.5 million, or 0.25 percent of sales, compared with $5.2 million, or 0.13 percent of sales last year. Inventory turn increased from 3.1 to 3.2. This improvement was primarily a result of contributions from technology and distribution center investments. Despite operating 707 additional stores, LIFO merchandise inventories increased just 6.5% to $1.1 billion from $1.0 billion last year. Average store inventory increased to $166,000, compared with $163,000 last year. During the fiscal year, the Company opened 758 new stores and closed 51 stores. In addition, the Company remodeled or relocated 237 stores, compared with 409 the previous year. At year-end, the Company operated 5,001 stores. For the year, capital expenditures equaled $218.0 million, compared with $152.7 million in the same period last year. Capital expenditures included investments in new store openings, new distribution centers, remodeled and relocated stores and store technology projects. The Company also spent $63.0 million to repurchase 3.6 million shares. Outlook: The following comments contain references to years 2001 and 2000, which represent fiscal years ending February 1, 2002 and February 2, 2001, respectively. For the year ending February 1, 2002, management expects sales and earnings to increase 15-18%. The Company plans to open 600-700 new stores. For the first quarter, total company revenues and same-store sales are expected to increase 15-17% and 2-4%, respectively, as compared with the first quarter of 2000. The Company anticipates opening 200-250 stores in the quarter. Gross profit as a percentage of net sales is expected to be flat to down slightly compared with 2000. Based on current sales expectations, management anticipates operating expenses as a percentage of net sales will increase 0.50-0.60% compared with 2000. Interest expense as a percentage of net sales is expected to increase 0.20-0.25%, reflecting higher interest rates than the first quarter last year. The tax rate is expected to be approximately 36.25%. Using this guidance, management expects to report earnings per share of $0.13-0.14 for first quarter ended May 4, 2001. Dollar General operates more than 5,000 neighborhood stores in 25 states. 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. # # # DOLLAR GENERAL CORPORATION INCOME STATEMENTS (000's) (Unaudited)
--- For the Fourth Quarter Ended --- --- For the Year Ended --- February 2, 2001 January 28, 2000 February 2, 2001 January 28, 2000 ---------------- ---------------- ---------------- ---------------- Sales $1,442,654 $1,177,742 $4,551,511 $3,887,964 Cost of Sales 1,060,315 833,337 3,293,126 2,790,173 ---------- ---------- ---------- ---------- Gross Margin 382,339 344,405 1,258,385 1,097,791 Operating Expenses 269,373 202,278 923,760 748,489 ---------- ---------- ---------- ---------- Operating Income 112,966 142,127 334,625 349,302 Interest Expense 1,049 55 11,508 5,157 ---------- ---------- ---------- ---------- Pre-Tax Income 111,917 142,072 323,117 344,145 Taxes 40,538 51,467 117,098 124,718 ---------- ---------- ---------- ---------- ---------- Net Income $ 71,379 $ 90,605 $ 206,019 $ 219,427 ========== ========== ========== ========== Diluted earnings per share $ 0.21 $ 0.27 $ 0.62 $ 0.65 Weighted average diluted shares 334,396 336,953 333,858 336,963
DOLLAR GENERAL CORPORATION BALANCE SHEETS ($000's) (Unaudited) February 2 January 28 2001 2000 ---- ---- Current Assets: Cash and cash equivalents $ 141,453 $ 58,789 Merchandise inventories 1,050,693 985,715 Deferred income taxes 8,074 5,995 Other current assets 69,108 45,036 ---------- ---------- TOTAL CURRENT ASSETS 1,269,328 1,095,535 Property & equipment, at cost 796,519 597,537 Less: Accumulated depreciation 305,756 251,064 ---------- ---------- 490,763 346,473 Other assets 16,045 8,933 ---------- ---------- TOTAL ASSETS $1,776,136 $1,450,941 ========== ========== Current Liabilities Current portion of long-term obligations $ 4,560 $ 1,233 Accounts payable 284,768 334,554 Accrued expenses 137,350 121,375 Income taxes 8,648 15,135 ---------- ---------- TOTAL CURRENT LIABILITIES 435,326 472,297 Long-Term obligations 214,236 1,200 Deferred income taxes 51,290 51,523 ---------- ---------- TOTAL LIABILITIES 700,852 525,020 Stockholders' Equity: Common stock 165,646 132,346 Additional paid-in capital 274,112 255,581 Retained earnings 637,652 537,994 Less: Common stock purchased for deferred compensation plan 2,126 0 ---------- ---------- TOTAL STOCKHOLDERS' EQUITY 1,075,284 925,921 ---------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,776,136 $1,450,941 ========== ========== DOLLAR GENERAL CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (000's) (Unaudited)
--- For the Year Ended --- February 2, 2001 January 28, 2000 ---------------- ---------------- Cash flows provided by (used in) operating activities: Net income $ 206,019 $ 219,427 Adjustments to reconcile net income to net cash provided by (used in) operating activities Depreciation and amortization 79,577 63,944 Deferred income taxes (2,312) 17,948 Tax effect of stock options 18,500 29,757 Change in operating assets and liabilities: Merchandise inventories (64,978) (173,993) Other Current Assets (17,756) (2,658) Accounts payable (49,786) 76,795 Accrued expenses 15,975 (51,450) Income taxes (6,487) (8,690) Other (3,195) (966) --------- --------- Net cash provided by (used in) operating activities 175,557 170,114 --------- --------- Cash flows provided by (used in) investing activities: Purchase of investments for deferred compensation plan (6,316) Purchase of property and equipment (217,993) (152,738) Proceeds from sale of property and equipment 11,347 67,221 --------- --------- Net cash provided by (used in) investing activities (212,962) (85,517) --------- --------- Cash flows provided by (used in) financing activities: Cash flows provided by (used in) financing activities: Issuance of short-term borrowings 256,001 218,865 Repayments of short-term borrowings (256,001) (218,865) Issuance of long-term debt 199,595 3,104 Repayments of long-term debt (4,370) (2,182) Payment of cash dividend (42,266) (34,057) Proceeds from exercise of stock options 32,225 35,786 Repurchase of common stock (62,989) (50,753) Purchase of common stock for deferred compensation plan (2,126) 0 Net cash provided by (used in) financing activities 120,069 (48,102) --------- --------- Net increase (decrease) in cash and cash equivalents 82,664 36,495 Cash and cash equivalents beginning of period 58,789 22,294 --------- --------- Cash and cash equivalents end of period $ 141,453 $ 58,789 ========= ========= Supplemental schedule of noncash investing and financing activities: Purchase of property and equipment under capital lease obligation $ 21,138 $ 0 ========= =========
DOLLAR GENERAL CORPORATION KEY OPERATIONAL DATA (000's)
--- For the Quarter Ended --- February 2 January 28 Total Stores Same-Stores 2001 2000 % Chg % Chg * ---- ---- ----- ------- Sales by Category: Highly Consumable $ 751,564 $ 565,950 32.8% 8.4% Hardware and Seasonal $ 277,056 $ 224,642 23.3% 4.8% Basic Clothing $ 179,184 $ 152,279 17.7% (1.3) Home Products $ 234,850 $ 234,871 0.0% (16.7%) ---------- ---------- ---- ----- TOTAL SALES $1,442,654 $1,177,742 22.5% 1.5%
--- For the Year Ended --- February 2 January 28 Total Stores Same-Stores 2001 2000 % Chg % Chg * ---- ---- ----- ------- Sales by Category: Highly Consumable $2,518,572 $1,996,454 26.2% 8.4% Hardware and Seasonal $ 706,286 $ 640,790 10.2% (0.5%) Basic Clothing $ 554,231 $ 482,390 14.9% (0.6%) Home Products $ 772,422 $ 768,330 0.5% (13.1%) ---------- ---------- ---- ------ TOTAL SALES $4,551,511 $3,887,964 17.1% 0.9%
--- For the Year Ended --- February 2 January 28 New Store Activity: 2001 2000 ----- ----- Beginning Store Count 4,294 3,687 New Store Openings 758 646 Store Closings 51 39 Net New Stores 707 607 Ending Store Count 5,001 4,294 Total Square Footage 33.9 million 28.7 million * Includes same-store sales for the comparable periods ended January 26, 2001 and January 28, 2000 For the year ended February 2, 2001, the average customer purchased more than 5 items at a total cost of $8.14. Below is a summary of this year's customer transaction information. 1Q 2Q 3Q 4Q YTD -- -- -- -- --- 2000 Same-Store Transactions (% Chg): Customer Transactions 3.8% 0.1% 1.0% 0.3% 1.2% Average Ticket 0.2% (2.7%) (0.2%) 1.1% (0.3%) Average Item Price 1.5% 2.4% 5.5% 5.8% 3.8% Average Number of Items (1.2%) (5.0%) (5.4%) (4.5%) (4.0%) ###