DOLLAR GENERAL REPORTS RECORD SECOND QUARTER 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)--Aug. 8, 1995--Dollar General Corporation (NYSE NYSE See: New York Stock Exchange : DG) today reported a 26.7% increase in earnings on 28.6% sales increase for its quarter ended July July: see month. 31, 1995. Cal Turner Turner can refer to:
A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. for the March, 1995 five-for-four stock split. Total sales also increased to a second quarter record of $408,204,000 from $317,323,000. 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 increased 10.6 percent during the quarter compared to 11.3 percent in the same period last year. The Company opened 107 stores and closed 9 stores during the period versus 60 opened and 8 closed a year ago. "The positioning of so much future growth and profitability in the first half of this year through the opening of our Ardmore Ardmore, city (1990 pop. 23,079), seat of Carter co., S Okla.; inc. 1898. It is the commercial center of an oil and farm area. Its industries include oil refining, tourism, and the manufacture of electronic equipment, plastics, fabricated metal products, and feeds. , OK distribution center and the accelerated addition of 201 net new stores makes these results especially rewarding," said Turner. "These long term investments have reduced earnings by about 4 cents the first six months of this year. However, we are convinced con·vince tr.v. con·vinced, con·vinc·ing, con·vinc·es 1. To bring by the use of argument or evidence to firm belief or a course of action. See Synonyms at persuade. 2. that these investments will pay off nicely during the remainder of this year and beyond as we face our most challenging sales comparisons." Gross margin for the quarter equaled 27.91% of sales, up from 27.64% of sales for the same period a year ago. The increase resulted from higher beginning inventory markups and lower markdowns which more than offset lower purchase discounts and higher distribution costs distribution costs distribute npl → Vertriebskosten pl related to the start-up Start-up The earliest stage of a new business venture. of the Ardmore, OK distribution center. Accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. 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. at cost of 1.94% and a 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 charge of 0.16% were virtually unchanged from the second quarter last year. Cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold is determined in the first, second and third quarters utilizing estimates of inventory markdowns, shrinkage and inflation. Adjustments of these estimates based upon actual results are included in cost of goods sold in the fourth quarter. The company's sales mix sales mix See product mix. shifted more in favor of upon the side of; favorable to; for the advantage of. See also: favor hardlines which accounted for 69% of sales and softlines for 31% versus 65% and 35%, respectively, in the same period 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. for the quarter equaled $83,415,000, or 20.43% of sales, compared to $64,636,000, or 20.37% of sales, in the second quarter last year. Operating expenses as a percentage of sales increased principally as a result of higher advertising, rent, professional fees and bank charges, and depreciation costs which were partially offset by lower 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. reserves, employee benefit and bonus accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. , and other miscellaneous charges. Capital expenditures for the quarter totaled $15,980,000 versus $15,930,000 in the same period a year ago. This year's expenditures included the greater number of stores opened in the second quarter this year which more than offset last year's expenditures related to the construction of the Ardmore, OK distribution center which had no counterpart counterpart n. in the law of contracts, a written paper which is one of several documents which constitute a contract, such as a written offer and a written acceptance. this year. 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 FIFO (First In First Out) A storage method that retrieves the item stored for the longest time. Contrast with LIFO. See traffic engineering methods. FIFO - first-in first-out inventories increased to $486,154,000 from $360,430,000 as a result of operating 367 more stores, higher inventory levels in all stores and stocking the new Ardmore distribution center. Interest expense increased to $1,765,000 from $647,000 as a result of higher average borrowings and interest rates. Dollar General is a chain of 2,260 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
For the quarter ended July 31
(000's)
(Unaudited)
1995 1994
Sales/a $ 408,204 100.00% $317,323 100.00%
Cost of Sales 294,259 72.09 229,615 72.36
Gross Margin 113,945 27.91 87,708 27.64
Operating Expenses 83,415 20.43 64,636 20.37
Operating Income 30,530 7.48 23,072 7.27
Interest Expense 1,765 0.43 647 0.20
Pre-Tax Income 28,765 7.05 22,425 7.07
Taxes 11,074 2.71 8,465 2.67
Net Income $ 17,691 4.33% $ 13,960 4.40%
Net Income per Common and Common Equivalent Share $0.25 $0.20 Weighted Average Shares Outstanding 70,312 68,839
(a) Includes franchise stores sales of $926 and $928 in 1995 and
1994, respectively.
DOLLAR GENERAL CORPORATION
INCOME STATEMENTS
For the six months ended July 31
(000's)
(Unaudited)
1995 1994
Sales/a $ 751,596 100.00% $ 604,409 100.00%
Cost of Sales 541,370 72.03 436,721 72.26
Gross Margin 210,226 27.97 167,688 27.74
Operating Expenses 159,740 21.25 128,940 21.33
Operating Income 50,486 6.72 38,748 6.41
Interest Expense 2,898 0.39 1,039 0.17
Pre-Tax Income 47,588 6.33 37,709 6.24
Taxes 18,321 2.44 14,235 2.36
Net Income $ 29,267 3.89% $ 23,474 3.88%
Net Income per Common and Common Equivalent Share $0.42 $0.34 Weighted Average Shares Outstanding 70,109 68,643
(a) Includes franchise stores sales of $1,771 and $1,881 in 1995
and 1994, respectively.
DOLLAR GENERAL CORPORATION
BALANCE SHEETS
($000's)
(Unaudited)
As of As of
July 31, 1995 July 31, 1994
Current Assets:
Cash and cash equivalents $ 13,971 $ 26,764
Merchandise inventories 462,642 332,551
Deferred income taxes 10,925 10,808
Other current assets 14,101 10,757
Income taxes 0 2,215
TOTAL CURRENT ASSETS 501,639 383,095
Property & Equipment, at cost 212,379 147,779
Less: Accumulated depreciation (72,631) (54,580)
---------- ----------
139,748 93,199
Other Assets 5,569 4,719 TOTAL ASSETS $ 646,956 $ 481,013 Current Liabilities Current portion of long-term debt $ 1,483 $ 1,303 Short-term borrowings 124,501 62,000 Accounts payable 93,557 91,515 Accrued expenses & taxes 52,859 49,418 Income taxes 3,709 0 TOTAL CURRENT LIABILITIES 276,109 204,236 Long-Term Obligations 3,598 4,669 Deferred Income Taxes 3,382 2,563 TOTAL LIABILITIES 283,089 211,468
Stockholders' Equity:
Preferred stock 858 0
Common stock 33,971 27,248
Additional paid-in capital 299,304 75,372
Retained earnings 229,868 169,308
---------- ----------
564,001 271,928
Less: Treasury stock (200,134) (2,383)
TOTAL STOCKHOLDERS' EQUITY 363,867 269,545
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 646,956 $ 481,013
DOLLAR GENERAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the quarter ended July 31
(000's)
(Unaudited)
1995 1994
Cash flows from operating activities:
Net income $ 17,691 $ 13,960
Adjustments to reconcile net income
to net cash provided by operating
activities
Depreciation and amortization 5,990 4,121
Deferred income taxes 1,352 (915)
Change in operating assets and liabilities:
Merchandise inventories (42,691) (28,309)
Accounts payable trade (29,208) (9,547)
Accrued expenses 293 3,855
Income taxes (2,292) (1,536)
Other, net (791) (3,143)
Net cash used in operating activities (49,656) (21,514)
Cash flows used in investing activities:
Purchase of property and equipment (15,980) (15,930)
Net cash used in investing activities (15,980) (15,930)
Cash flows used in financing activities:
Issuance of short-term obligations 57,384 35,000
Repayments of short-term borrowings (29,328) 0
Repayments of long-term obligations (259) (131)
Payment of cash dividend (3,909) (2,683)
Proceeds from exercise of stock options 9,726 1,117
Tax effect of stock options 4,848 623
Other, net 0 0
Net cash provided in financing
activities 38,462 33,926
Net increase (decrease) in cash
and cash equivalents (27,174) (3,518)
Cash and cash equivalents beginning of period 33,045 30,282
Cash and cash equivalents end of period $ 5,871 $26,764
DOLLAR GENERAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the six months ended July 31
(000's)
(Unaudited)
1995 1994
Cash flows from operating activities:
Net income $ 29,267 $ 23,474
Adjustments to reconcile net income
to net cash provided by operating
activities
Depreciation and amortization 11,395 7,805
Deferred income taxes 860 (1,144)
Change in operating assets and liabilities:
Merchandise inventories (106,531) (72,509)
Accounts payable trade (18,118) 10,475
Accrued expenses (8,178) 1,512
Income taxes (1,501) (652)
Other, net (3,985) (2,021)
Net cash used in operating activities (96,791) (33,060)
Cash flows used in investing activities:
Purchase of property and equipment (26,902) (23,852)
Net cash used in investing activities (26,902) (23,852)
Cash flows used in financing activities:
Issuance of short-term obligations 124,501 44,000
Repayments of short-term borrowings (29,557) 0
Repayments of long-term obligations (1,169) (1,040)
Payment of cash dividend (6,835) (5,333)
Proceeds from exercise of stock options 11,338 5,899
Tax effect of stock options 6,341 4,785
Other, net 0 0
Net cash provided in financing
activities 104,619 48,311
Net increase (decrease) in cash
and cash equivalents (19,074) (8,601)
Cash and cash equivalents beginning of period 33,045 35,365
Cash and cash equivalents end of period $ 13,971 $26,764
CONTACT: Dollar General Corp., Nashville 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. , 615/783-2000 |
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