DOLLAR GENERAL REPORTS RECORD THIRD 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)--Nov. 12, 1996--Dollar General Corporation (NYSE NYSE See: New York Stock Exchange : DG) today reported a 38.8% increase in earnings and 18.4% increase in total sales for the quarter ended May 3, 1996. 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 quarter increased 6.5%. Net income for the quarter rose to a record $26,642,000, or $0.30 per share, compared with $19,200,000, or $0.22 per share, for the restated third quarter last year after adjustment for the April 1996, five-for-four split. Total sales also increased to a third quarter record of $508,977,000 from $429,898,000 last year. The company opened 105 new stores during the period. "When your earnings increase more than doubles your sales increase, you must simply brag on the performance of your team," said Cal Turner Turner can refer to:
Gross margin equaled $148,634,000 for the quarter, an increase of 18.06% over the same period a year ago. As a percentage of sales, gross margin declined to 29.20% compared with 29.29% last year. The decrease resulted primarily from lower margins on sales of current purchases, higher freight expense In accounting, the concept of a freight expense account can be generalized as a payment for sending out a product to a customer. It falls under the umbrella category of Expenses and is treated like other expense accounts in relation to the accounting equation. , and higher 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. reserves, which were partially offset by lower markdowns, all as a percentage of sales. 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 75.8% and 24.2%, respectively, of total sales compared with 69.9% and 30.1% in the comparable 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. equaled $104,178,000, or 20.47% of sales, compared with $92,129,000, or 21.43% of sales, in the same period a year ago. As percentages of sales, decreases in advertising and labor expense, more than offset increases in employee incentive compensation reserves. For the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. , capital expenditures equaled $46,897,000 down from $51,473,000 last year, primarily because of fewer new store openings 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 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 inventories increased 5.3% to $623,354,000 from $592,200,000 as a result of operating 301 more stores. Average store LIFO inventory declined 9.7% to $177,000 per store from $197,000 per store last year. On July July: see month. 19, 1996, Dollar General announced plans to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. up to two million shares of its outstanding common stock. As of November November: see month. 1, 1996, the Company had completed the entire repurchase at an average cost of $29.85 per share. Interest expense decreased to $1,485,000, or 0.29% of sales, from $2,549,000, or 0.59% of sales, primarily due to lower interest rates and lower average borrowings. The effective tax rate for the third quarter this year was 38.0% compared with 38.5% in 1995. Dollar General is a chain of 2,691 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 Third Quarter Ended ---
November 1, 1996 November 3, 1995
(restated/a)
Sales/a $508,977 100.00% $429,898 100.00%
Cost of Sales 360,343 70.80 304,000 70.71
Gross Margin 148,634 29.20 125,898 29.29
Operating Expenses 104,178 20.47 92,129 21.46
Operating Income 44,456 8.73 33,769 7.82
Interest Expense 1,485 0.29 2,549 0.59
Pre-Tax Income 42,971 8.44 31,220 7.26
Taxes 16,329 3.21 12,020 2.80
Net Income $26,642 5.23% $19,200 4.46%
Net Income per Common and
Common Equivalent Share $0.30 $0.22
Weighted Average Shares
Outstanding 88,377 87,821
a: Includes franchise stores sales of $990 and $995 in 1996 and
1995, respectively.
DOLLAR GENERAL CORPORATION
INCOME STATEMENTS
(000's)
(Unaudited)
--- For the Year-to-Date ---
November 1, 1996 November 3, 1995
(restated)
Sales/b $1,459,222 100.00% $1,208,137 100.00%
Cost of Sales 1,053,486 72.20 864,407 71.55
Gross Margin 405,736 27.80 343,730 28.45
Operating Expenses 299,444 20.52 258,537 21.40
Operating Income 106,292 7.28 85,193 7.05
Interest Expense 3,791 0.26 5,456 0.45
Pre-Tax Income 102,501 7.02 79,737 6.60
Taxes 38,950 2.67 30,699 2.54
Net Income $63,551 4.35% $49,038 4.06%
Net Income per Common and
Common Equivalent Share $0.72 $0.56
Weighted Average Shares
Outstanding 88,716 87,699
b: Includes franchise stores sales of $3,231 and $3,169 in 1996
and 1995, respectively.
DOLLAR GENERAL CORPORATION
BALANCE SHEETS
($000's)
(Unaudited)
(restated)
November 1 November 3
1996 1995
Current Assets:
Cash and cash equivalents $8,769 $7,355
Merchandise inventories 623,354 592,200
Deferred income taxes 11,954 12,232
Other current assets 16,447 12,310
TOTAL CURRENT ASSETS 660,524 624,097
Property & Equipment, at cost 285,084 234,192
Less: Accumulated depreciation (105,715) (77,881)
--------- --------
179,369 156,311
Other Assets 5,065 5,550
TOTAL ASSETS $844,958 $785,958
Current Liabilities
Current portion of long-term debt $2,060 $1,308
Short-term borrowings 184,725 201,764
Accounts payable 144,684 126,349
Accrued expenses & taxes 67,937 60,152
Income taxes 4,913 6,728
TOTAL CURRENT LIABILITIES 404,319 396,301
Long-Term Obligations 2,748 3,418
Deferred Income Taxes 3,573 3,382
TOTAL LIABILITIES 410,640 403,101
Stockholders' Equity:
Preferred stock 858 858
Common stock 42,389 34,149
Additional paid-in capital 326,199 302,045
Retained earnings 265,399 246,332
--------- ---------
634,845 583,384
Less: Treasury stock (200,527) (200,527)
TOTAL STOCKHOLDERS' EQUITY 434,318 382,857
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $844,958 $785,958
DOLLAR GENERAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(000's)
(Unaudited)
--- For the Year-to-Date ---
(restated)
November 1 November 3
1996 1995
Cash flows from operating activities:
Net income $63,551 $49,038
Adjustments to reconcile net income to
net cash provided by operating
activities
Depreciation and amortization 23,027 18,494
Deferred income taxes 615 (447)
Change in operating assets and
liabilities:
Merchandise inventories (134,992) (236,089)
Accounts payable trade 41,508 14,675
Accrued expenses 5,838 (886)
Income taxes (9,844) 1,518
Other, net (1,712) (1,266)
Net cash provided (used) in
operating activities (12,009) (154,963)
Cash flows used in investing activities:
Purchase of property and equipment (46,897) (51,473)
Net cash provided (used) in
investing activities (46,897) (51,473)
Cash flows used in financing activities:
Issuance of short-term obligations 149,390 201,631
Repayments of short-term obligations (36,811) (29,467)
Issuance of long-term obligations 1,487 0
Repayments of long-term obligations (1,493) (1,482)
Payment of cash dividend (12,672) (10,143)
Proceeds from exercise of stock
options 15,257 12,880
Repurchase of common stock (59,788) 0
Tax effect of stock options 7,437 6,997
Other, net 524 330
Net cash provided (used) in
financing activities 63,331 180,746
Net increase (decrease) in cash and
cash equivalents 4,425 (25,690)
Cash and cash equivalents beginning of
period 4,344 33,045
Cash and cash equivalents end of period $8,769 $7,355
CONTACT: Dollar General Corporation, 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. , 615/783-2014 or 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. , 615/783-2000 |
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