Dollar General Corporation Reports Record Third Quarter 2012 Sales And Earnings

About Dollar General Corporation

Dollar General Corporation has been delivering value to shoppers for more than 70 years. Dollar General helps shoppers Save time. Save money. Every day!(R) by offering products that are frequently used and replenished, such as food, snacks, health and beauty aids, cleaning supplies, basic apparel, house wares and seasonal items at low everyday prices in convenient neighborhood locations. With 10,371 stores in 40 states as of November 2, 2012, Dollar General has more locations than any other discount retailer in America. In addition to high quality private brands, Dollar General sells products from America’s most-trusted manufacturers such as Procter & Gamble, Kimberly-Clark, Unilever, Kellogg’s, General Mills, Nabisco, Hanes, PepsiCo and Coca-Cola. Learn more about Dollar General at www.dollargeneral.com.

DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
			(Unaudited)
			November 2,				October 28,				February 3,
			2012				2011				2012
ASSETS
Current assets:
	Cash and cash equivalents		$	142,580			$	118,580			$	126,126
	Merchandise inventories			2,330,436				2,089,722				2,009,206
	Income taxes receivable			13,554				48,807				-
	Prepaid expenses and other current assets			131,622				135,746				139,742
	Total current assets			2,618,192				2,392,855				2,275,074
Net property and equipment				2,047,434				1,716,797				1,794,960
Goodwill				4,338,589				4,338,589				4,338,589
Other intangible assets, net				1,223,407				1,240,733				1,235,954
Other assets, net				46,055				46,908				43,943
Total assets			$	10,273,677			$	9,735,882			$	9,688,520
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
	Current portion of long-term obligations		$	891			$	763			$	590
	Accounts payable			1,199,727				1,132,544				1,064,087
	Accrued expenses and other			392,439				414,977				397,075
	Income taxes payable			997				1,111				44,428
	Deferred income taxes			39,785				22,826				3,722
	Total current liabilities			1,633,839				1,572,221				1,509,902
Long-term obligations				3,023,367				2,721,061				2,617,891
Deferred income taxes				655,910				647,329				656,996
Other liabilities				225,699				233,950				229,149
Total liabilities				5,538,815				5,174,561				5,013,938
Commitments and contingencies
Shareholders' equity:
	Preferred stock			-				-				-
	Common stock			287,613				299,514				295,828
	Additional paid-in capital			2,983,323				2,964,576				2,967,027
	Retained earnings			1,468,534				1,305,107				1,416,918
	Accumulated other comprehensive loss			(4,608	)			(7,876	)			(5,191	)
	Total shareholders' equity			4,734,862				4,561,321				4,674,582
Total liabilities and shareholders' equity			$	10,273,677			$	9,735,882			$	9,688,520

DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
			For the Quarter (13 Weeks) Ended
			November 2,			% of Net			October 28,			% of Net
			2012			Sales			2011			Sales
Net sales			$	3,964,647		100.00	%		$	3,595,224		100.00	%
Cost of goods sold				2,738,524		69.07				2,479,422		68.96
Gross profit				1,226,123		30.93				1,115,802		31.04
Selling, general and administrative expenses				864,734		21.81				804,885		22.39
Operating profit				361,389		9.12				310,917		8.65
Interest expense				27,726		0.70				38,632		1.07
Other (income) expense				1,728		0.04				53		0.00
Income before income taxes				331,935		8.37				272,232		7.57
Income tax expense				124,250		3.13				101,068		2.81
Net income			$	207,685		5.24	%		$	171,164		4.76	%
Earnings per share:
	Basic		$	0.62					$	0.50
	Diluted		$	0.62					$	0.50
Weighted average shares outstanding:
	Basic			332,337						341,955
	Diluted			334,004						345,777
			For the 39 Weeks Ended
			November 2,			% of Net			October 28,			% of Net
			2012			Sales			2011			Sales
Net sales			$	11,814,507		100.00	%		$	10,622,115		100.00	%
Cost of goods sold				8,096,905		68.53				7,270,574		68.45
Gross profit				3,717,602		31.47				3,351,541		31.55
Selling, general and administrative expenses				2,584,675		21.88				2,368,977		22.30
Operating profit				1,132,927		9.59				982,564		9.25
Interest expense				100,466		0.85				164,831		1.55
Other (income) expense				29,956		0.25				60,564		0.57
Income before income taxes				1,002,505		8.49				757,169		7.13
Income tax expense				367,265		3.11				282,994		2.66
Net income			$	635,240		5.38	%		$	474,175		4.46	%
Earnings per share:
	Basic		$	1.90					$	1.39
	Diluted		$	1.89					$	1.37
Weighted average shares outstanding:
	Basic			333,806						341,670
	Diluted			336,339						345,598

DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
					For the 39 Weeks Ended
					November 2,				October 28,
					2012				2011
Cash flows from operating activities:
	Net income				$	635,240			$	474,175
	Adjustments to reconcile net income to net cash from operating activities:
		Depreciation and amortization				222,398				204,771
		Deferred income taxes				24,221				23,977
		Tax benefit of stock options				(85,335	)			(16,101	)
		Loss on debt retirement, net				30,620				60,303
		Non-cash share-based compensation				15,357				10,969
		Other non-cash gains and losses				9,548				31,656
		Change in operating assets and liabilities:
			Merchandise inventories			(326,076	)			(350,932	)
			Prepaid expenses and other current assets			12,399				(30,899	)
			Accounts payable			130,733				164,336
			Accrued expenses and other liabilities			(4,334	)			89,993
			Income taxes			28,350				(57,575	)
			Other			(2,235	)			(174	)
Net cash provided by (used in) operating activities						690,886				604,499
Cash flows from investing activities:
	Purchases of property and equipment					(453,626	)			(363,099	)
	Proceeds from sales of property and equipment					1,144				729
Net cash provided by (used in) investing activities						(452,482	)			(362,370	)
Cash flows from financing activities:
	Issuance of long-term obligations					500,000				-
	Repayments of long-term obligations					(478,026	)			(911,708	)
	Borrowings under revolving credit facility					1,703,400				649,100
	Repayments of borrowings under revolving credit facility					(1,349,800	)			(361,300	)
	Debt issue costs					(15,278	)			-
	Repurchases of common stock					(596,442	)			-
	Equity transactions with employees, net of taxes paid					(71,139	)			(13,188	)
	Tax benefit of stock options					85,335				16,101
Net cash provided by (used in) financing activities						(221,950	)			(620,995	)
Net increase (decrease) in cash and cash equivalents						16,454				(378,866	)
Cash and cash equivalents, beginning of period						126,126				497,446
Cash and cash equivalents, end of period					$	142,580			$	118,580
Supplemental cash flow information:
Cash paid for:
	Interest				$	90,992			$	151,123
	Income taxes				$	328,196			$	301,643
Supplemental schedule of non-cash investing and financing activities:
	Purchases of property and equipment awaiting processing for payment, included in Accounts payable				$	40,569			$	44,225
	Purchases of property and equipment under capital lease obligations				$	3,440			$	-

DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Selected Additional Information
(Unaudited)
Sales by Category (in thousands)
			For the Quarter (13 Weeks) Ended
			November 2, 2012			October 28, 2011				% Change
Consumables			$	3,004,247		$	2,705,765			11.0	%
Seasonal				471,541			433,931			8.7	%
Home products				257,918			236,951			8.8	%
Apparel				230,941			218,577			5.7	%
	Net sales		$	3,964,647		$	3,595,224			10.3	%
			For the 39 Weeks Ended
			November 2, 2012			October 28, 2011				% Change
Consumables			$	8,802,350		$	7,845,905			12.2	%
Seasonal				1,532,772			1,393,557			10.0	%
Home products				772,831			706,962			9.3	%
Apparel				706,554			675,691			4.6	%
	Net sales		$	11,814,507		$	10,622,115			11.2	%
Store Activity
						For the 39 Weeks Ended
						November 2, 2012				October 28, 2011
Beginning store count							9,937			9,372
New store openings							479			482
Store closings							(45	)		(41	)
Net new stores							434			441
Ending store count							10,371			9,813
Total selling square footage (000's)							75,692			70,737
	Growth rate (square footage)						7.0	%		6.7	%

DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
Adjusted Net Income and Adjusted Diluted Earnings Per Share
Selling, General & Administrative Expenses and Operating Profit, Excluding Certain Items
(in millions, except per share amounts)
			For the Quarter (13 Weeks) Ended
			November 2, 2012							October 28, 2011							Increase
			$				% of Net Sales			$				% of Net Sales			$			%
Net sales			$	3,964.6						$	3,595.2						$	369.4		10.3	%
Selling, general and administrative ("SG&A")			$	864.7			21.81	%		$	804.9			22.39	%		$	59.8		7.4	%
	Secondary offering expenses			(0.5	)						(0.4	)
	Acceleration of equity-based compensation			(0.4	)						(0.5	)
SG&A, excluding certain items			$	863.8			21.79	%		$	804.0			22.36	%		$	59.8		7.4	%
Operating profit			$	361.4			9.12	%		$	310.9			8.65	%		$	50.5		16.2	%
	Secondary offering expenses			0.5							0.4
	Acceleration of equity-based compensation			0.4							0.5
Operating profit, excluding certain items			$	362.3			9.14	%		$	311.8			8.67	%		$	50.5		16.2	%
Net income			$	207.7			5.24	%		$	171.2			4.76	%		$	36.5		21.3	%
	Secondary offering expenses			0.5							0.4
	Acceleration of equity-based compensation			0.4							0.5
	Debt amendment fees			1.7							-
	Total adjustments, before income taxes			2.6							0.9
	Income tax effect of adjustments			(0.8	)						(0.2	)
	Net adjustments			1.8							0.7
Adjusted net income			$	209.5			5.28	%		$	171.9			4.78	%		$	37.6		21.9	%
Diluted earnings per share:
	As reported		$	0.62						$	0.50						$	0.12		24.0	%
	Adjusted		$	0.63						$	0.50						$	0.13		26.0	%
Weighted average diluted shares				334.0							345.8
			For the 39 Weeks Ended
			November 2, 2012							October 28, 2011							Increase
			$				% of Net Sales			$				% of Net Sales			$			%
Net sales			$	11,814.5						$	10,622.1						$	1,192.4		11.2	%
Selling, general and administrative ("SG&A")			$	2,584.7			21.88	%		$	2,369.0			22.30	%		$	215.7		9.1	%
	Litigation settlements			-							(13.1	)
	Secondary offering expenses			(1.4	)						(0.4	)
	Acceleration of equity-based compensation			(1.5	)						(0.5	)
SG&A, excluding certain items			$	2,581.8			21.85	%		$	2,355.0			22.17	%		$	226.8		9.6	%
Operating profit			$	1,132.9			9.59	%		$	982.6			9.25	%		$	150.4		15.3	%
	Litigation settlements			-							13.1
	Secondary offering expenses			1.4							0.4
	Acceleration of equity-based compensation			1.5							0.5
Operating profit, excluding certain items			$	1,135.8			9.61	%		$	996.6			9.38	%		$	139.2		14.0	%
Net income			$	635.2			5.38	%		$	474.2			4.46	%		$	161.1		34.0	%
	Litigation settlements			-							13.1
	Secondary offering expenses			1.4							0.4
	Acceleration of equity-based compensation			1.5							0.5
	Adjustment for settlement of interest rate swaps			(2.5	)						-
	Write-off of capitalized debt costs			1.6							-
	Debt amendment fees			1.7							-
	Repurchase of long-term obligations, net			29.0							60.3
	Total adjustments before income taxes			32.7							74.3
	Income tax effect of adjustments			(12.3	)						(28.9	)
	Net adjustments			20.4							45.4
Adjusted net income			$	655.6			5.55	%		$	519.6			4.89	%		$	136.1		26.2	%
Diluted earnings per share:
	As reported		$	1.89						$	1.37						$	0.52		38.0	%
	Adjusted		$	1.95						$	1.50						$	0.45		30.0	%
Weighted average diluted shares outstanding				336.3							345.6

DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures (Continued)
RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA
			For the Quarter						For the							For the
			(13 Weeks) Ended						39 Weeks Ended							Four Quarters Ended
			Nov. 2,			Oct. 28,			Nov. 2,				Oct. 28,			Nov. 2,				Oct. 28,
(In millions)			2012			2011			2012				2011			2012				2011
																(53 Weeks)				(52 Weeks)
Net income			$	207.7		$	171.2		$	635.2			$	474.2		$	927.7			$	696.8
Add (subtract):
	Interest expense			27.7			38.6			100.5				164.9			140.5				230.4
	Depreciation and amortization			73.7			66.3			215.4				196.0			283.5				258.0
	Income taxes			124.2			101.1			367.3				283.0			542.9				403.0
EBITDA				433.3			377.2			1,318.4				1,118.1			1,894.6				1,588.2
Adjustments:
	Loss on debt retirement, net			-			-			30.6				60.3			30.6				60.3
	Loss (gain)on hedging instruments			-			0.1			(2.4	)			0.3			(2.3	)			0.4
	Non-cash expense for share-based awards			5.1			4.2			15.4				11.0			19.7				14.2
	Litigation settlement and related costs, net			-			-			-				13.1			-				13.1
	Indirect costs related to merger and stock offering			0.5			0.4			1.3				0.4			1.8				0.7
	Other non-cash charges (including LIFO)			5.5			13.1			10.7				30.7			33.3				35.6
	Other			1.7			-			2.5				-			2.5				-
Total Adjustments				12.8			17.8			58.1				115.8			85.6				124.3
Adjusted EBITDA			$	446.1		$	395.0		$	1,376.5			$	1,233.9		$	1,980.2			$	1,712.5

DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Continued)
(Dollars in millions)
Senior Secured Incurrence Test
			November 2,			October 28,
			2012			2011
Senior secured debt			$	2,524.3		$	2,271.1
Less: cash				142.6			118.6
Senior secured debt, net of cash			$	2,381.7		$	2,152.5
Adjusted EBITDA			$	1,980.2		$	1,712.5
Ratio of senior secured debt, net of cash, to Adjusted EBITDA			1.2x			1.3x
Calculation of Ratio of Long-Term Obligations to Adjusted EBITDA
			November 2,			October 28,
			2012			2011
Total long-term obligations			$	3,024.3		$	2,721.8
Adjusted EBITDA			$	1,980.2		$	1,712.5
Ratio of long-term obligations to Adjusted EBITDA			1.5x			1.6x
Calculation of Ratio of Long-Term Obligations, net of Cash, to Adjusted EBITDA
			November 2,			October 28,
			2012			2011
Total long-term obligations			$	3,024.3		$	2,721.8
Less: cash				142.6			118.6
Total long-term obligations, net of cash			$	2,881.7		$	2,603.2
Adjusted EBITDA			$	1,980.2		$	1,712.5
Ratio of long-term obligations, net of cash, to Adjusted EBITDA			1.5x			1.5x

« First ‹ Previous ... 2 3 4 5 6 7 8 9 10 Next › Last »