DOLLAR GENERAL REPORTS RECORD SALES AND EARNINGS.NASHVILLE Nashville, city (1990 pop. 487,969), state capital, coextensive with Davidson co., central Tenn., on the Cumberland River, in a fertile farm area; inc. as a city 1806, merged with Davidson co. 1963. , Tenn.--(BUSINESS WIRE)--March 5, 1997--Dollar General Corporation (NYSE NYSE See: New York Stock Exchange : DG) today reported a 31.1% increase in earnings and 21.0% increase in total sales for the year ended January January: see month. 31, 1997. Same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of for the year increased 8.2%. Net income for the year rose 31.1% to a record $115,100,000, or $1.04 per share, compared with $87,818,000, or $0.80 per share, adjusted for the April 1996 and February February: see month. 1997, five-for-four splits. Total sales increased 21.0% to $2,134,398,000 from $1,764,188,000 last year. The company opened 360 new stores and closed 42 stores during fiscal 1997. At year end, the company operated 2,734 stores. "Clearly, this is the best year our company has ever had," said Cal Turner Turner can refer to:
1997 FOURTH QUARTER Net income for the quarter increased 32.9% to $51,549,000 from $38,780,000 in 1996. Earnings per share increased 34.3% to $0.47 from $0.35 last year, restated for the April 1996 and February 1997, five-for-four splits. Total sales increased 21.4% to $675,176,000 versus $556,051,000 last year. Same store sales increased 8.9%, compared with 4.6% last year. The company opened 54 stores and closed 11 stores during the quarter. Gross margin equaled $199,059,000 for the quarter, an increase of 24.5% over the same period a year ago. As a percentage of sales, gross margin increased to 29.48% compared with 28.75% last year. Lower inventory shrinkage Shrinkage The amount by which inventory on hand is shorter than the amount of inventory recorded. Notes: The missing inventory could be due to theft, damage, or book keeping errors. and higher margin on sales of current purchases more than offset higher distribution costs distribution costs distribute npl → Vertriebskosten pl and higher markdowns. Hardline Adj. 1. hardline - firm and uncompromising; "a hard-line policy" hard-line uncompromising, inflexible, sturdy - not making concessions; "took an uncompromising stance in the peace talks"; "uncompromising honesty" and softline  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . sales accounted for 76.9% and 23.1%, respectively, of total sales compared with 70.1% and 29.9% in the fourth quarter last year. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. equaled $115,675,000, or 17.13% of sales, compared with $96,175,000, or 17.30% of sales in the same period a year ago. As percentages of sales, decreases in self-insurance self-insurance, n the setting aside of funds by an individual or organization to meet anticipated dental care expenses or dental care claims, and accumulation of a fund to absorb fluctuations in the amount of expenses and claims. costs and advertising expense more than offset increases in employee incentive compensation expense. Interest expense decreased to $868,000, or 0.13% of sales, compared with $1,905,000, or 0.34% of sales, in the comparable period last year. This decrease was primarily a result of lower average short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. borrowings related to a decrease in merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain inventories versus the same period a year ago. FISCAL YEAR 1997 For the year, gross margin equaled $604,795,000, an increase of 20.1% over the same period a year ago. As a percentage of sales, gross margin declined to 28.34% compared with 28.55% last year. The decrease resulted primarily from lower margin on beginning inventory and lower margin on current purchases which were partially offset by lower shrinkage, all as a percentage of sales. Merchandise shrinkage declined to 2.7% of sales from 3.4% of sales in fiscal 1996. The LIFO (Last In-First Out) A queueing method in which the next item to be retrieved is the item most recently placed in the queue. Contrast with FIFO. LIFO - stack adjustment made in the quarter resulted in a credit for the year of $2.2 million compared with a credit of $1.6 million for fiscal 1996. Hardline and softline sales accounted for 74.8% and 25.2%, respectively, of total sales compared with 69.5% and 30.5% in the comparable period last year. Operating expenses equaled $415,119,000, or 19.45% of sales, compared with $354,712,000, or 20.11% of sales, in the same period a year ago. As percentages of sales, decreases in payroll payroll a list of employees, their salary rates, tax deductions, amounts paid, payroll tax, long service leave entitlements. expense and advertising more than offset increases in employee incentive compensation. For the year, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 27.4% to 8.89% of sales from 8.44% in fiscal 1996. The effective tax rate for the year was 37.8% compared with 38% in 1996. Merchandise LIFO inventories decreased 2.5% to $476,103,000 from $488,362,000 as a result of lower inventory purchases overall which more than offset the additional inventory required to operate 318 additional stores. Average store LIFO inventory declined 9.4% to $140,000 per store from $155,000 per store last year. Interest expense decreased to $4,659,000, or 0.22% of sales, from $7,361,000, or 0.42% of sales, primarily due to lower interest rates and lower average borrowings. For the year, capital expenditures equaled $84,411,000 an increase from $60,521,000 last year. This increase was principally the result of $31.5 million of expenditures for the new distribution center in South Boston, Virginia South Boston is a town in Halifax County, Virginia, United States. The population was 8,491 at the 2000 census. NASCAR drivers Ward Burton and Jeff Burton are from South Boston and prepared for their racing career at the local speedway. . Dollar General is a chain of more than 2,734 neighborhood stores operating in 24 states with distribution centers in Kentucky Kentucky, state, United States Kentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. , Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. and Oklahoma Oklahoma (ōkləhō`mə), state in SW United States. It is bordered by Missouri and Arkansas (E); Texas, partially across the Red R. (S, W); New Mexico, across the narrow edge of the Oklahoma Panhandle (W); and Colorado and Kansas (N). . The Company's common stock is traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . -0-
DOLLAR GENERAL CORPORATION
INCOME STATEMENTS
(000's)
(Unaudited)
--- For the Fourth Quarter Ended ---
January 31, 1997 January 31, 1996
(restated (a))
Sales (b) $675,176 100.00% $556,051 100.00%
Cost of Sales 476,117 70.52 396,162 71.25
Gross Margin 199,059 29.48 159,889 28.75
Operating Expenses 115,675 17.13 96,175 17.30
Operating Income 83,384 12.35 63,714 11.46
Interest Expense 868 0.13 1,905 0.34
Pre-Tax Income 82,516 12.22 61,809 11.12
Taxes 30,967 4.59 23,029 4.14
Net Income $51,549 7.63% $38,780 6.97%
Net Income per
Common and Common
Equivalent Share $0.47 $0.35
Weighted Average
Shares Outstanding 109,790 109,849
(a) Restated to reflect the adoption of a retail 52/53 week
reporting calendar effective February 1, 1996.
(b) Includes franchise stores sales of $856 and $610 in 1997 and
1996, respectively.
DOLLAR GENERAL CORPORATION
INCOME STATEMENTS
(000's)
(Unaudited)
--- For the Year Ended ---
January 31, 1997 January 31, 1996
Sales (c) $2,134,398 100.00% $1,764,188 100.00%
Cost of Sales 1,529,603 71.66 1,260,569 71.45
Gross Margin 604,795 28.34 503,619 28.55
Operating Expenses 415,119 19.45 354,712 20.11
Operating Income 189,676 8.89 148,907 8.44
Interest Expense 4,659 0.22 7,361 0.42
Pre-Tax Income 185,017 8.67 141,546 8.02
Taxes 69,917 3.28 53,728 3.05
Net Income $115,100 5.39% $87,818 4.98%
Net Income per
Common and Common
Equivalent Share $1.04 $0.80
Weighted Average
Shares Outstanding 110,619 109,736
(c) Includes franchise stores sales of $4,087 and $3,779 in 1997 and
1996, respectively.
DOLLAR GENERAL CORPORATION
BALANCE SHEETS
($000's)
(Unaudited)
January 31 January 31
1997 1996
Current Assets:
Cash and cash equivalents $6,563 $4,344
Merchandise inventories 476,103 488,362
Deferred income taxes 3,004 11,989
Other current assets 18,244 11,548
TOTAL CURRENT ASSETS 503,914 516,243
Property & Equipment, at cost 321,917 242,628
Less: Accumulated depreciation 113,381 84,041
208,536 158,587
Other Assets 5,012 5,166
TOTAL ASSETS $717,462 $679,996
Current Liabilities
Current portion of long-term debt $2,030 $1,536
Short-term borrowings 38,469 72,146
Accounts payable 103,523 103,176
Accrued expenses & taxes 70,442 62,099
Income taxes 9,317 14,757
TOTAL CURRENT LIABILITIES 223,781 253,714
Long-term Obligations 2,582 3,278
Deferred Income Taxes 5,571 2,993
TOTAL LIABILITIES 231,934 259,985
Stockholders' Equity:
Preferred stock 858 858
Common stock 42,484 42,762
Additional paid-in capital 329,948 303,609
Retained earnings 312,765 273,309
686,055 620,538
Less: Treasury stock 200,527 200,527
TOTAL STOCKHOLDERS' EQUITY 485,528 420,011
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $717,462 $679,996
DOLLAR GENERAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(000's)
(Unaudited)
--- For the Year Ended ---
January 31 January 31
1997 1996
Cash flows from operating activities:
Net income $115,100 $87,818
Adjustments to reconcile net
income to net cash
provided by operating activities
Depreciation and amortization 30,965 25,245
Deferred income taxes 11,563 (593)
Change in operating assets
and liabilities:
Merchandise inventories 12,259 (132,251)
Accounts payable trade 347 (8,499)
Accrued expenses 8,343 1,062
Income taxes (5,440) 9,547
Other, net (3,046) (98)
Net cash provided (used) in
operating activities 170,091 (17,769)
Cash flows used in investing
activities:
Purchase of property and equipment (84,411) (60,521)
Net cash provided (used) in
investing activities (84,411) (60,521)
Cash flows used in financing
activities:
Issuance of short-term obligations 193,692 150,109
Repayments of short-term
obligations (227,369) (107,563)
Issuance of long-term obligations 1,677 0
Repayments of long-term obligations (1,879) (1,394)
Payment of cash dividend (16,856) (13,393)
Proceeds from exercise of stock
options 17,729 13,486
Repurchase of common stock (59,788) 0
Tax effect of stock options 8,809 7,932
Other, net 524 412
Net cash provided (used) in
financing activities (83,461) 49,589
Net increase (decrease) in cash and
cash equivalents 2,219 (28,701)
Cash and cash equivalents beginning
of period 4,344 33,045
Cash and cash equivalents end of period $6,563 $4,344
CONTACT: Dollar General Corp., Nashville Investor: Kiley n. 1. An Australian boomerang, having one side flat and the other convex. Noun 1. kiley - an Australian boomerang; one side flat and the other convex kylie Fleming Flem·ing , Sir Alexander 1881-1955. British bacteriologist who discovered penicillin in 1928. He shared a 1945 Nobel Prize for this achievement. , 615/783-2014 or Media: Cabot Pyle Pyle , Ernest Taylor Known as "Ernie." 1900-1945. American journalist noted for his stories about American soldiers on the European and North African fronts during World War II. Noun 1. , 615/783-2028 |
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