This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Dollar Tree, Inc. Reports Third Quarter Results

During the third quarter, Dollar Tree opened 111 stores, expanded or relocated 16 stores, and closed 4 stores. Retail selling square footage increased 7.1% compared to a year ago, to 40.1 million square feet.

39-Week Period Results

Year-to-date through the three quarters ended October 27, 2012, the Company's consolidated net sales were $5.15 billion, a 9.9% increase compared with the same period in 2011. Comparable store sales increased 3.9%, on top of a 5.5% increase through three quarters last year.

Year-to-date earnings per diluted share were $1.69, compared with earnings per diluted share of $1.23 through three quarters last year. Excluding the previously disclosed, one-time gain of $0.16 per share from the sale of our ownership interest in Ollie’s Holdings, Inc., our earnings per share through three quarters were $1.53.

Guidance

The Company estimates sales for the fourth quarter of 2012 to be in the range of $2.20 billion to $2.26 billion, based on flat- to- a low-single digit comparable store sales increase. Diluted earnings per share are estimated to be in the range of $0.97 to $1.02.

Full year sales are estimated to be in the range of $7.35 billion to $7.41 billion. Diluted earnings per share are expected to be $2.65 to $2.70, including $0.16 earnings per diluted share from the sale of Ollie’s in the third quarter. These estimates assume no impact from potential additional share repurchase activity, and incorporate the impact of a 53rd week in 2012, that will be recorded in the fourth quarter. As we have previously disclosed, the extra week is expected to add $120 million to $130 million to sales and $0.07 to $0.08 earnings per diluted share, both of which are included in our guidance.

On Thursday, November 15, 2012, the Company will host a conference call to discuss its earnings results at 9:00 a.m. EST. The telephone number for the call is 800-347-6109. A recorded version of the call will be available until midnight Thursday, November 22, and may be accessed by dialing 888-203-1112, and the access code is 4237557. A webcast of the call is accessible through Dollar Tree's website, www.dollartreeinfo.com/investors/news/events and will remain online until midnight Thursday, November 22.

Dollar Tree, a Fortune 500 Company, operated 4,630 stores in 48 states and 5 Canadian Provinces as of October 27, 2012. To learn more about the Company, visit www.DollarTree.com.

A WARNING ABOUT FORWARD-LOOKING STATEMENTS: Our press release contains "forward-looking statements" as that term is used in the Private Securities Litigation Reform Act of 1995. Forward-looking statements address future events, developments or results and typically use words such as believe, anticipate, expect, intend, plan, forecast, or estimate. For example, our forward-looking statements include statements regarding fourth quarter and full year sales and fourth quarter and full year diluted earnings per share and fourth quarter comparable-store sales, and the impact of the 53rd week of 2012. For a discussion of the risks, uncertainties and assumptions that could affect our future events, developments or results, you should carefully review the “Risk Factors,” "Business," and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections in our Annual Report on Form 10-K filed March 15, 2012, the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other sections in our Quarterly Report on Form 10-Q filed August 16, 2012 and in our other filings with the Securities and Exchange Commission. We are not obligated to release publicly any revisions to any forward-looking statements contained in this press release to reflect events or circumstances occurring after the date of this report and you should not expect us to do so.

DOLLAR TREE, INC.
Condensed Consolidated Income Statements
(Dollars in millions, except per share data)
(Unaudited)
       
Third Quarter Ended Nine Months Ended
October 27, October 29, October 27, October 29,
2012 2011 2012 2011
 
Net sales $ 1,720.5 $ 1,596.6 $ 5,148.7 $ 4,684.9
 
Cost of sales 1,120.9 1,036.0 3,346.8 3,041.1
 
 
Gross profit 599.6 560.6 1,801.9 1,643.8
34.9% 35.1% 35.0% 35.1%
 
Selling, general & administrative expenses 415.4 395.7 1,245.3 1,163.7
24.2% 24.8% 24.2% 24.8%
 
Operating income 184.2 164.9 556.6 480.1
10.7% 10.3% 10.8% 10.2%
 
Interest expense, net 0.8 0.6 2.4 2.2
Other (income) expense, net (60.7) 0.1 (61.8) (0.1)
 
Income before income taxes 244.1 164.2 616.0 478.0
14.2% 10.3% 12.0% 10.2%
 
Income tax expense 88.7 59.7 225.3 177.6
Income tax rate 36.3% 36.4% 36.6% 37.2%
 
Net income $ 155.4 $ 104.5 $ 390.7 $ 300.4
9.0% 6.5% 7.6% 6.4%
 
Net earnings per share:
Basic $ 0.68 $ 0.44 $ 1.70 $ 1.24
Weighted average number of shares 228.8 239.6 230.5 243.1
 
Diluted $ 0.68 $ 0.43 $ 1.69 $ 1.23
Weighted average number of shares 230.0 241.5 231.8 244.8
 
DOLLAR TREE, INC.
Condensed Consolidated Balance Sheets
(Dollars in millions)
(Unaudited)
     
October 27, January 28, October 29,
2012 2012 2011
 
Cash and cash equivalents $ 222.4 $ 288.3 $ 280.2
Merchandise inventories, net 1,133.2 867.4 1,005.4
Other current assets   52.9   53.7   46.9
Total current assets 1,408.5 1,209.4 1,332.5
 
Property and equipment, net 932.4 825.3 816.5
Goodwill 173.3 173.1 173.5
Deferred tax assets, net 19.4 16.8 15.0
Other assets, net   105.7   104.0   93.7
 
Total assets $ 2,639.3 $ 2,328.6 $ 2,431.2
 
 
Current portion of long-term debt $ 14.3 $ 15.5 $ 15.5
Accounts payable 420.0 286.7 351.9
Other current liabilities 232.4 215.5 209.0
Income taxes payable, current   34.3   63.3   10.7
Total current liabilities 701.0 581.0 587.1
 
Long-term debt, excluding current portion 250.0 250.0 250.0
Income taxes payable, long-term 5.1 15.5 15.2
Other liabilities   144.3   137.5   132.0
 
Total liabilities   1,100.4   984.0   984.3
 
Shareholders' equity   1,538.9   1,344.6   1,446.9
 
Total liabilities and shareholders' equity $ 2,639.3 $ 2,328.6 $ 2,431.2
 
STORE DATA:
Number of stores open at end of period 4,630 4,351 4,335
Total selling square footage (in millions) 40.1 37.6 37.4
 
DOLLAR TREE, INC.
Condensed Consolidated Statements of Cash Flows
(Dollars in millions)
(Unaudited)
        Nine Months Ended
October 27,   October 29,
  2012     2011  
 
Cash flows from operating activities:
Net income $ 390.7   $ 300.4  
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 128.4 119.9
Gain on sale of investment in Ollie's Holdings, Inc. (60.8 ) -
Other non-cash adjustments 33.2 49.3
Changes in working capital   (178.1 )   (150.9 )
Total adjustments   (77.3 )   18.3  
Net cash provided by operating activities   313.4     318.7  
 
Cash flows from investing activities:
Capital expenditures (236.7 ) (196.8 )
Purchase of short-term investments - (6.0 )
Proceeds from maturities of short-term investments - 180.8
Proceeds from sale of investment in Ollie's Holdings, Inc. 62.3 -
Purchase of restricted investments - (5.3 )
Proceeds from maturities of restricted investments - 5.3
Other   (0.3 )   -  
Net cash used in investing activities   (174.7 )   (22.0 )
 
Cash flows from financing activities:
Payments for share repurchases (235.3 ) (345.9 )
Proceeds from stock issued pursuant to stock-based
compensation plans 8.8 9.3
Tax benefit of stock-based compensation 24.5 10.5
Other   (1.4 )   (1.5 )
Net cash used in financing activities   (203.4 )   (327.6 )
Effect of exchange rate changes on cash and cash equivalents   (1.2 )   (0.1 )
Net decrease in cash and cash equivalents (65.9 ) (31.0 )
Cash and cash equivalents at beginning of period   288.3     311.2  
Cash and cash equivalents at end of period $ 222.4   $ 280.2  
 




2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs