-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WguA2sT2/rOBmFboJlopEElVbFSIfY6CXFfe2pBcAreeeOG154N3gaj2bfCis7Hy 3VW63sbQw1AYbu0RkjogVg== 0000935703-99-000029.txt : 19990723 0000935703-99-000029.hdr.sgml : 19990723 ACCESSION NUMBER: 0000935703-99-000029 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19990630 ITEM INFORMATION: FILED AS OF DATE: 19990722 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DOLLAR TREE STORES INC CENTRAL INDEX KEY: 0000935703 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-VARIETY STORES [5331] IRS NUMBER: 541387365 STATE OF INCORPORATION: VA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-25464 FILM NUMBER: 99668345 BUSINESS ADDRESS: STREET 1: 500 VOLVO PARKWAY STREET 2: NORFOLK COMMERCE PARK CITY: CHESAPEAKE STATE: VA ZIP: 23320 BUSINESS PHONE: 7573215000 MAIL ADDRESS: STREET 1: P.O. BOX 2500 CITY: NORFOLK STATE: VA ZIP: 23501-2500 8-K 1 DOLLAR TREE 2ND QTR EARNINGS AND COMBINED DATA FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON D.C. 20549 CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: July 22, 1999 Date of Earliest Event Reported: June 30, 1999 DOLLAR TREE STORES, INC. (Exact name of registrant as specified in its charter) COMMISSION FILE NUMBER: 0-25464 VIRGINIA 54-1387365 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 500 Volvo Parkway Chesapeake, VA 23320 (Address of principal executive offices) Registrant's telephone number, including area code: (757) 321-5000 ITEM 5: OTHER EVENTS On July 21, 1999, Dollar Tree issued a press release, Exhibit 99.1, regarding its second quarter earnings. Dollar Tree Stores, Inc., completed its merger with the operator of 24 ONLY $ONE stores on June 30, 1999. This transaction was accounted for as a pooling-of-interests. Accordingly, all prior period financial data has been restated on a combined basis. The following information, attached as Exhibit 99.2, is being provided to investors to assist them in their financial analyses of the combined Company. SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. DATE: July 22, 1999 DOLLAR TREE STORES, INC. By: /s/ Frederick C. Coble --------------------------------------------- Frederick C. Coble Senior Vice President, CFO EX-99.1 2 PRESS RELEASE -- DOLLAR TREE 2ND QTR EARNINGS PRESS RELEASE DOLLAR TREE REPORTS SECOND QUARTER EARNINGS OF $0.22 PER SHARE, EXCLUDING MERGER-RELATED CHARGES OF $0.01 PER SHARE CHESAPEAKE, Va.--July 21, 1999--Dollar Tree Stores, Inc.(Nasdaq: DLTR), the nation's leading $1.00 price point retailer, reported that pro forma combined earnings per share, excluding merger-related costs, increased to $0.22 for the second quarter of 1999, compared to $0.17 for the second quarter of 1998. These results represent the first reporting of the combined operations of Dollar Tree and the operator of 24 ONLY $ONE stores. The merger of the two companies, which was completed on June 30, 1999, was accounted for as a pooling-of-interests. Net of merger-related costs, earnings per share were $0.21 for the second quarter of 1999. On a combined basis, sales for the quarter increased to $253.2 million, $48.0 million over sales for the second quarter of 1998, primarily due to new store openings. Sales in comparable stores increased 1.8%, as previously reported, despite the shift in timing of the Easter selling season. For the second quarter of 1999, gross margin, excluding merger-related costs, increased to 37.0% of net sales, compared to 36.1% for the prior year period. Improvements in distribution costs, resulting from efficiencies at the new distribution centers, and reductions in shrink and markdowns more than offset a slight increase in merchandise costs, including freight charges. For the first half of 1999, net sales, pro forma earnings and pro forma earnings per share, excluding merger-related items, were $480.3 million, $26.1 million and $0.38, respectively, compared to net sales, pro forma earnings, and pro forma earnings per share for the first half of 1998 of $385.8 million, $19.4 million and $0.29, respectively. "Dollar Tree's growth plans are well on track," commented Macon Brock, President and CEO. "Our stores are performing well, both new and comparable stores, and our merchandise offerings continue to exceed customers' expectations. The addition of the ONLY $ONE stores in New York state blends well with our larger store format, giving us an Eastern platform to complement our West Coast stores. We look forward to continued growth opportunities." Dollar Tree Stores, Inc. is the nation's leading $1.00 discount variety retailer. Stores offer a wide assortment of quality everyday general merchandise, in many traditional variety store categories, at the $1.00 price point. As of June 30, 1999, Dollar Tree operates 1,291 stores in 32 states, having opened 111 net stores during the first half of 1999 and adding 24 ONLY $ONE stores due to a merger completed in June 1999. CONTACT: Dollar Tree Stores, Inc., Chesapeake Eric Coble or Erica Robb, 757/321-5000 http://www.DollarTree.com DOLLAR TREE STORES, INC. ONLY $ONE Comparative Detail For the Three Months and Six Months Ended June 30 (in thousands, except per share data) (Unaudited)
NET DILUTED SALES INCOME EPS SECOND QUARTER 1999: Dollar Tree Stores $246,279 $14,593 $0.22 ONLY $ONE* $ 6,937 $ 432 N/A -------- ------- ----- Combined (excluding merger-related items)* $253,216 $15,025 $0.22 -------- ------- ----- Merger-related items (net of tax) N/A ($ 792) ($0.01) -------- ------- ----- Net combined companies* $253,216 $14,233 $0.21 ======== ======= ===== YEAR-TO-DATE 1999: Dollar Tree Stores $467,481 $25,311 $0.38 ONLY $ONE* $ 12,778 $ 807 N/A -------- ------- ----- Combined (excluding merger-related items)* $480,259 $26,118 $0.38 -------- ------- ----- Merger-related items (net of tax) N/A ($ 792) ($0.01) -------- ------- ----- Net combined companies* $480,259 $25,326 $0.37 ======== ======= ===== * Net Income and Diluted EPS include a pro forma adjustment for C-corporation income taxes relating to ONLY $ONE of $271 for the second quarter 1999 and $505 for year-to-date 1999.
DOLLAR TREE STORES, INC. COMBINED COMPANIES, AFTER GIVING EFFECT TO THE POOLING Condensed Consolidated Income Statements For the Three Months and Six Months Ended June 30 (Amounts in thousands, except per share data) (Unaudited)
Second Quarter Year-to-Date 1999 1998 1999 1998 Net sales $253,216 $205,209 $480,259 $385,808 Cost of sales 159,525 131,130 305,703 247,740 Merger costs 443 -- 443 -- Gross profit 93,248 74,079 174,113 138,068 36.8% 36.1% 36.3% 35.8% SGA expenses 61,710 49,463 117,835 95,460 24.4% 24.1% 24.5% 24.7% Merger expenses 607 -- 607 -- Depr./amort. 6,881 4,889 13,101 9,303 Interest expense 670 1,051 1,152 1,759 Earnings before income taxes 23,380 18,676 41,418 31,546 9.2% 9.1% 8.6% 8.2% Income tax expense* 9,147 7,169 16,092 12,155 Net earnings* $14,233 $11,507 $25,326 $19,391 5.6% 5.6% 5.3% 5.0% Pro forma earnings per share*: Basic $ 0.23 $ 0.19 $ 0.41 $ 0.32 Weighted average number of shares 61,815 61,182 61,679 61,051 Diluted $ 0.21 $ 0.17 $ 0.37 $ 0.29 Weighted average number of shares 68,035 67,644 67,972 67,482 * Amounts include a pro forma adjustment for C-corporation income taxes relating to ONLY $ONE of $271 and $299 for the second quarters of 1999 and 1998, respectively, and $505 and $395 for year-to-date 1999 and 1998, respectively.
DOLLAR TREE STORES, INC. COMBINED COMPANIES, AFTER GIVING EFFECT TO THE POOLING Condensed Consolidated Balance Sheets (Amounts in thousands) (Unaudited)
June 30, Dec. 31, June 30, 1999 1998 1998 Cash and cash equivalents $ 36,502 $ 74,644 $ 8,932 Merchandise inventories 187,247 142,706 179,237 Other current assets 15,271 14,160 12,317 ------ ------ ------ Total current assets 239,020 231,510 200,486 ------- ------- ------- Property and equipment, net 134,195 122,503 98,459 Goodwill, net 41,587 42,551 43,514 Other assets, net 8,269 8,623 4,812 ----- ----- ----- Total assets $423,071 $405,187 $347,271 ======== ======== ======== Current portion of long-term debt $ 25,000 $ 16,500 $ 20,964 Accounts payable 60,322 53,030 53,739 Income taxes payable 4,936 21,353 2,284 Other current liabilities 18,124 26,445 20,203 ------ ------ ------ Total current liabilities 108,382 117,328 97,190 ------- ------- ------ Long-term debt 24,000 30,000 53,000 Other liabilities 8,405 9,043 6,645 ----- ----- ----- Total liabilities 140,787 156,371 156,835 ------- ------- ------- Shareholders' equity 282,284 248,816 190,436 ------- ------- ------- Total liabilities and shareholders' equity $423,071 $405,187 $347,271 ======== ======== ========
EX-99.2 3 QUARTERLY FINANCIAL DATA - 1998 AND 1999 DOLLAR TREE STORES, INC. COMBINED COMPANIES, AFTER GIVING EFFECT TO THE POOLING BALANCE SHEET INFORMATION (In thousands) (Unaudited)
Mar. 31, Jun. 30, Sept. 30, Dec. 31, Mar. 31, 1998 1998 1998 1998 1999 ASSETS Current assets: Cash and cash equivalents $ 8,002 $ 8,932 $ 9,355 $ 74,644 $ 20,997 Merchandise inventories 150,399 179,237 210,747 142,706 176,615 Deferred tax asset 5,347 6,238 6,664 6,709 7,099 Prepaid expenses and other current assets 7,249 6,079 9,379 7,451 6,625 ------- ------- ------- ------- ------- Total current assets 170,997 200,486 236,145 231,510 211,336 ------- ------- ------- ------- ------- Property and equipment, net 93,060 98,459 114,055 122,503 126,551 Deferred tax asset 2,092 2,457 2,617 2,194 2,291 Goodwill, net 43,996 43,514 43,033 42,551 42,069 Other assets, net 2,515 2,355 2,279 6,429 6,037 ------- ------- ------- ------- ------- TOTAL ASSETS $312,660 $347,271 $398,129 $405,187 $388,284 ======= ======= ======= ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 10,880 $ 20,964 $ 53,982 $ 16,500 $ 18,500 Accounts payable 49,359 53,739 63,836 53,030 42,538 Income taxes payable 3,898 2,284 0 21,353 5,936 Other current liabilities 25,449 20,203 18,921 26,445 16,605 ------- ------- ------- ------- ------- Total current liabilities 89,586 97,190 136,739 117,328 83,579 ------- ------- ------- ------- ------- Long-term debt 40,490 53,000 50,000 30,000 30,000 Other liabilities 6,662 6,645 8,040 9,043 8,516 ------- ------- ------- ------- ------- Total liabilities 136,738 156,835 194,779 156,371 122,095 ------- ------- ------- ------- ------- Common stock 407 613 613 614 618 Additional paid-in capital 42,791 46,068 46,910 53,030 59,422 Retained earnings 132,724 143,755 155,827 195,172 206,149 ------- ------- ------- ------- ------- Total shareholders' equity 175,922 190,436 203,350 248,816 266,189 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $312,660 $347,271 $398,129 $405,187 $388,284 ======= ======= ======= ======= =======
DOLLAR TREE STORES, INC. COMBINED COMPANIES, AFTER GIVING EFFECT TO THE POOLING INCOME STATEMENT INFORMATION (In thousands except store and per share data) (Unaudited)
Year Quarter Quarter Ended Ended Ended March 31, June 30, Sept. 30, Dec. 31, Dec. 31 March 31, 1998 1998 1998 1998 1998 1999 Net sales $180,599 $205,209 $210,008 $348,307 $944,122 $227,044 Cost of sales 116,610 131,130 132,014 209,327 589,080 146,179 Merger related costs 0 0 0 1,301 1,301 0 ------- ------- ------- ------- ------- ------- Gross profit 63,989 74,079 77,994 137,679 353,741 80,865 ------- ------- ------- ------- ------- ------- Selling, general and administrative expenses: Operating expenses 45,997 49,463 51,312 62,010 208,782 56,125 Merger related expenses 0 0 0 4,024 4,024 0 Depreciation and amortization 4,414 4,889 5,174 6,041 20,518 6,220 ------- ------- ------- ------- -------- ------- Total selling, general and administrative expenses 50,411 54,352 56,486 72,075 233,324 62,345 ------- ------- ------- ------- -------- ------- Operating income 13,578 19,727 21,508 65,604 120,417 18,520 Interest expense 708 1,051 1,531 1,041 4,331 482 ------- ------- ------- ------- ------- ------- Income before income taxes 12,870 18,676 19,977 64,563 116,086 18,038 Provision for income taxes * 4,986 7,169 7,666 25,737 45,558 6,945 ------- ------- ------- ------- ------- ------- Net income * $ 7,884 $ 11,507 $ 12,311 $ 38,826 $ 70,528 $ 11,093 ======= ======= ======= ======= ======= ======= Pro forma net income per share:* Basic net income per share $ 0.13 $ 0.19 $ 0.20 $ 0.63 $ 1.15 $ 0.18 ======= ======= ======= ======= ======= ======= Weighted average number of common shares outstanding 60,920 61,182 61,296 61,342 61,185 61,543 ======= ======= ======= ======= ======= ======= Diluted net income per share $ 0.12 $ 0.17 $ 0.18 $ 0.57 $ 1.04 $ 0.16 ======= ======= ======= ======= ======= ======= Weighted average number of common shares and dilutive potential common shares outstanding 67,321 67,644 67,750 67,787 67,626 67,909 ======= ======= ======= ======= ======= ======= STORE DATA: Comparable store sales increase 6.4% 11.9% 5.5% 5.2% 6.8% 5.2% Number of stores open at end of period 1,003 1,063 1,139 1,179 1,179 1,227 Total gross square footage (in thousands) 4,368 4,716 5,122 5,376 5,376 5,785 Total selling square footage (in thousands) 3,573 3,854 4,191 4,398 4,398 4,818 * Amounts include a pro forma adjustment for C-corporation income taxes relating to ONLY $ONE of $96 for March 31, 1998, $299 for June 30, 1998, $111 for September 30, 1998, $519 for December 31, 1998, $1,025 for the year ended December 31, 1998 and $234 for March 31, 1999.
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