TENNESSEE
(State
or Other Jurisdiction of
Incorporation
or Organization)
|
61-0502302
(I.R.S.
Employer
Identification
No.)
|
100
MISSION RIDGE
GOODLETTSVILLE,
TENNESSEE 37072
(Address
of Principal Executive Offices, Zip Code)
|
|
Registrant’s
telephone number, including area code: (615)
855-4000
|
May
4,
2007
|
February
2,
2007
|
||||
ASSETS
|
(Unaudited)
|
||||
Current
assets:
|
|||||
Cash
and cash equivalents
|
$
|
204,417
|
$
|
189,288
|
|
Short-term
investments
|
27,371
|
29,950
|
|||
Merchandise
inventories
|
1,444,313
|
1,432,336
|
|||
Income
taxes receivable
|
14,624
|
9,833
|
|||
Deferred
income taxes
|
37,860
|
24,321
|
|||
Prepaid
expenses and other current assets
|
57,572
|
57,020
|
|||
Total
current assets
|
1,786,157
|
1,742,748
|
|||
Net
property and equipment
|
1,212,198
|
1,236,874
|
|||
Deferred
income taxes
|
12,418
|
-
|
|||
Other
assets, net
|
63,536
|
60,892
|
|||
Total
assets
|
$
|
3,074,309
|
$
|
3,040,514
|
|
|
|||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
|||||
Current
liabilities:
|
|||||
Current
portion of long-term obligations
|
$
|
7,186
|
$
|
8,080
|
|
Accounts
payable
|
484,949
|
555,274
|
|||
Accrued
expenses and other
|
258,090
|
253,558
|
|||
Income
taxes payable
|
48
|
15,959
|
|||
Total
current liabilities
|
750,273
|
832,871
|
|||
Long-term
obligations
|
260,373
|
261,958
|
|||
Deferred
income taxes
|
-
|
41,597
|
|||
Other
liabilities
|
266,886
|
158,341
|
|||
Shareholders’
equity:
|
|||||
Preferred
stock
|
-
|
-
|
|||
Common
stock
|
157,298
|
156,218
|
|||
Additional
paid-in capital
|
525,830
|
486,145
|
|||
Retained
earnings
|
1,114,170
|
1,103,951
|
|||
Accumulated
other comprehensive loss
|
(941)
|
(987)
|
|||
Other
shareholders’ equity
|
420
|
420
|
|||
Total
shareholders’ equity
|
1,796,777
|
1,745,747
|
|||
Total
liabilities and shareholders’ equity
|
$
|
3,074,309
|
$
|
3,040,514
|
|
See
notes to condensed consolidated financial statements.
|
|||||
For
the 13 weeks ended
|
|||||||
May
4,
2007
|
May
5,
2006
|
||||||
Net
sales
|
$
|
2,275,267
|
$
|
2,151,387
|
|||
Cost
of goods sold
|
1,642,207
|
1,567,113
|
|||||
Gross
profit
|
633,060
|
584,274
|
|||||
Selling,
general and administrative
|
577,692
|
502,989
|
|||||
Operating
profit
|
55,368
|
81,285
|
|||||
Interest
income
|
(2,573)
|
(2,450)
|
|||||
Interest
expense
|
6,167
|
7,247
|
|||||
Income
before income taxes
|
51,774
|
76,488
|
|||||
Income
taxes
|
16,899
|
28,818
|
|||||
Net
income
|
$
|
34,875
|
$
|
47,670
|
|||
Earnings
per share:
|
|||||||
Basic
|
$
|
0.11
|
$
|
0.15
|
|||
Diluted
|
$
|
0.11
|
$
|
0.15
|
|||
Weighted
average common shares outstanding:
|
|||||||
Basic
|
313,567
|
313,997
|
|||||
Diluted
|
315,928
|
315,233
|
|||||
Dividends
per share
|
$
|
0.05
|
$
|
0.05
|
|||
See
notes to condensed consolidated financial statements.
|
For
the 13 weeks ended
|
|||||
May
4,
2007
|
May
5,
2006
|
||||
Cash
flows from operating activities:
|
|||||
Net
income
|
$
|
34,875
|
$
|
47,670
|
|
Adjustments
to reconcile net income to net cash provided by
(used
in) operating activities:
|
|||||
Depreciation
and amortization
|
50,451
|
48,778
|
|||
Deferred
income taxes
|
(4,948)
|
5,602
|
|||
Noncash
share-based compensation
|
3,469
|
1,740
|
|||
Tax
benefit from stock option exercises
|
(3,529)
|
(1,461)
|
|||
Change
in operating assets and liabilities:
|
|||||
Merchandise
inventories
|
(11,977)
|
(161,704)
|
|||
Prepaid
expenses and other current assets
|
(552)
|
(12,429)
|
|||
Accounts
payable
|
(62,870)
|
69,467
|
|||
Accrued
expenses and other
|
25,647
|
6,118
|
|||
Income
taxes
|
(1,736)
|
(20,236)
|
|||
Other
|
456
|
339
|
|||
Net
cash provided by (used in) operating activities
|
29,286
|
(16,116)
|
|||
Cash
flows from investing activities:
|
|||||
Purchases
of property and equipment
|
(34,101)
|
(77,102)
|
|||
Purchases
of short-term investments
|
-
|
(10,476)
|
|||
Sales
of short-term investments
|
6,000
|
6,000
|
|||
Purchases
of long-term investments
|
(5,670)
|
(10,809)
|
|||
Proceeds
from sale of property and equipment
|
169
|
303
|
|||
Net
cash used in investing activities
|
(33,602)
|
(92,084)
|
|||
Cash
flows from financing activities:
|
|||||
Borrowings
under revolving credit facility
|
-
|
116,500
|
|||
Repayments
of borrowings under revolving credit facility
|
-
|
(51,500)
|
|||
Repayments
of long-term obligations
|
(2,653)
|
(2,364)
|
|||
Payment
of cash dividends
|
(15,712)
|
(15,686)
|
|||
Proceeds
from exercise of stock options
|
34,281
|
10,934
|
|||
Repurchases
of common stock
|
-
|
(79,947)
|
|||
Tax
benefit from stock option exercises
|
3,529
|
1,461
|
|||
Other
financing activities
|
-
|
69
|
|||
Net
cash provided by (used in) financing activities
|
19,445
|
(20,533)
|
|||
Net
increase (decrease) in cash and cash equivalents
|
15,129
|
(128,733)
|
|||
Cash
and cash equivalents, beginning of period
|
189,288
|
200,609
|
|||
Cash
and cash equivalents, end of period
|
$
|
204,417
|
$
|
71,876
|
|
Supplemental
schedule of noncash investing and financing
activities:
|
|||||
Purchases
of property and equipment awaiting processing for payment,
included
in Accounts payable
|
$
|
10,639
|
$
|
16,344
|
|
Purchases
of property and equipment under capital lease obligations
|
$
|
163
|
$
|
877
|
|
See
notes to condensed consolidated financial statements.
|
Estimated
Total
(a)
|
Incurred
in
2006
|
Incurred
in
2007
|
Remaining
|
|||||||||||||
Lease
contract termination costs (b)
|
$
|
36.6
|
$
|
5.7
|
$
|
$
|
15.3
|
$
|
15.6
|
|||||||
One-time
employee termination benefits
|
0.9
|
0.3
|
0.3
|
0.3
|
||||||||||||
Other
associated store closing costs
|
8.1
|
0.2
|
2.2
|
5.7
|
||||||||||||
Inventory
liquidation fees
|
4.6
|
1.6
|
1.5
|
1.5
|
||||||||||||
Asset
impairment & accelerated depreciation
|
9.0
|
8.3
|
0.3
|
0.4
|
||||||||||||
Inventory
markdowns below cost
|
7.8
|
6.7
|
1.1
|
-
|
||||||||||||
Total
|
$
|
67.0
|
$
|
22.8
|
$
|
$
|
20.7
|
$
|
23.5
|
|||||||
(a)
Reflects estimates as of May 4, 2007, which, in total, are $6.0 million
less than estimates as of February 2, 2007.
|
||||||||||||||||
(b)
Including estimated reversals of deferred rent accruals totaling
$0.8
million, of which $0.1 million is reflected in 2006, $0.3 million
is
reflected in 2007, and $0.4 million is
remaining.
|
Balance,
February
2,
2007
|
2007
Expenses
|
2007
Payments
and
Other
|
Balance,
May
4,
2007
|
|||||||||
Lease
contract termination costs
|
$
|
5.0
|
$
|
15.6
|
$
|
2.4
|
$
|
18.2
|
||||
One-time
employee termination benefits
|
0.3
|
0.3
|
0.6
|
-
|
||||||||
Other
associated store closing costs
|
0.2
|
2.2
|
1.4
|
1.0
|
||||||||
Inventory
liquidation fees
|
0.3
|
1.5
|
1.8
|
-
|
||||||||
Total
|
$
|
5.8
|
$
|
19.6
|
$
|
6.2
|
$
|
19.2
|
13
Weeks Ended
|
||||||
May
4,
2007
|
May
5,
2006
|
|||||
Expected
dividend yield
|
0.91
|
%
|
0.82
|
%
|
||
Expected
stock price volatility
|
18.5
|
%
|
28.7
|
%
|
||
Weighted
average risk-free interest rate
|
4.5
|
%
|
4.7
|
%
|
||
Expected
term of options (years)
|
5.7
|
5.7
|
Options
Issued
|
Weighted
Average
Exercise
Price
|
|||||||
Balance,
February 2, 2007
|
19,398,881
|
$
|
18.38
|
|||||
Granted
|
1,997,198
|
21.15
|
||||||
Exercised
|
(2,091,451)
|
16.39
|
||||||
Canceled
|
(187,100)
|
19.90
|
||||||
Balance,
May 4, 2007
|
19,117,528
|
$
|
18.88
|
Nonvested
Shares
|
Weighted
Average
Grant
Date
Fair
Value
|
|||||||
Balance,
February 2, 2007
|
748,631
|
$
|
16.63
|
|||||
Granted
|
708,108
|
21.15
|
||||||
Vested
|
(94,283)
|
18.66
|
||||||
Canceled
|
(10,037)
|
20.29
|
||||||
Balance,
May 4, 2007
|
1,352,419
|
$
|
18.83
|
13
Weeks Ended May 4, 2007
|
||||||||
Net
Income
|
Shares
|
Per
Share Amount
|
||||||
Basic
earnings per share
|
$
|
34,875
|
313,567
|
$
|
0.11
|
|||
Effect
of dilutive stock awards
|
2,361
|
|||||||
Diluted
earnings per share
|
$
|
34,875
|
315,928
|
$
|
0.11
|
13
Weeks Ended May 5, 2006
|
||||||||
Net
Income
|
Shares
|
Per
Share Amount
|
||||||
Basic
earnings per share
|
$
|
47,670
|
313,997
|
$
|
0.15
|
|||
Effect
of dilutive stock awards
|
1,236
|
|||||||
Diluted
earnings per share
|
$
|
47,670
|
315,233
|
$
|
0.15
|
13
Weeks Ended
|
||||||
(In
thousands)
|
May
4,
2007
|
May
5,
2006
|
||||
Classes
of similar products:
|
||||||
Highly
consumable
|
$
|
1,523,793
|
$
|
1,455,984
|
||
Seasonal
|
336,449
|
309,583
|
||||
Home
products
|
215,046
|
211,665
|
||||
Basic
clothing
|
199,979
|
174,155
|
||||
Net
sales
|
$
|
2,275,267
|
$
|
2,151,387
|
(In
thousands)
|
As
of May 4, 2007
|
|||||||||||||||
DOLLAR
GENERAL CORPORATION
|
GUARANTOR
SUBSIDIARIES
|
ELIMINATIONS
|
CONSOLIDATED
TOTAL
|
|||||||||||||
BALANCE
SHEET:
|
||||||||||||||||
ASSETS
|
||||||||||||||||
Current
assets:
|
||||||||||||||||
Cash
and cash equivalents
|
$
|
113,533
|
$
|
90,884
|
$
|
-
|
$
|
204,417
|
||||||||
Short-term
investments
|
-
|
27,371
|
-
|
27,371
|
||||||||||||
Merchandise
inventories
|
-
|
1,444,313
|
-
|
1,444,313
|
||||||||||||
Income
taxes receivable
|
21,037
|
-
|
(6,413)
|
14,624
|
||||||||||||
Deferred
income taxes
|
8,626
|
29,234
|
-
|
37,860
|
||||||||||||
Prepaid
expenses and other current
assets
|
169,257
|
1,130,040
|
(1,241,725)
|
57,572
|
||||||||||||
Total
current assets
|
312,453
|
2,721,842
|
(1,248,138)
|
1,786,157
|
||||||||||||
Property
and equipment, at cost
|
215,158
|
2,229,975
|
-
|
2,445,133
|
||||||||||||
Less
accumulated depreciation and
amortization
|
120,377
|
1,112,558
|
-
|
1,232,935
|
||||||||||||
Net
property and equipment
|
94,781
|
1,117,417
|
-
|
1,212,198
|
||||||||||||
Deferred
income taxes
|
9,899
|
2,519
|
-
|
12,418
|
||||||||||||
Other
assets, net
|
2,760,254
|
45,982
|
(2,742,700)
|
63,536
|
||||||||||||
Total
assets
|
$
|
3,177,387
|
$
|
3,887,760
|
$
|
(3,990,838)
|
$
|
3,074,309
|
||||||||
LIABILITIES
AND
SHAREHOLDERS’
EQUITY
|
||||||||||||||||
Current
liabilities:
|
||||||||||||||||
Current
portion of long-term
obligations
|
$
|
-
|
$
|
7,186
|
$
|
-
|
$
|
7,186
|
||||||||
Accounts
payable
|
1,111,885
|
612,082
|
(1,239,018)
|
484,949
|
||||||||||||
Accrued
expenses and other
|
29,785
|
231,012
|
(2,707)
|
258,090
|
||||||||||||
Income
taxes payable
|
-
|
6,461
|
(6,413)
|
48
|
||||||||||||
Total
current liabilities
|
1,141,670
|
856,741
|
(1,248,138)
|
750,273
|
||||||||||||
Long-term
obligations
|
199,853
|
1,636,664
|
(1,576,144)
|
260,373
|
||||||||||||
Other
liabilities
|
39,087
|
227,799
|
-
|
266,886
|
||||||||||||
Shareholders’
equity:
|
||||||||||||||||
Preferred
stock
|
-
|
-
|
-
|
-
|
||||||||||||
Common
stock
|
157,298
|
23,853
|
(23,853)
|
157,298
|
||||||||||||
Additional
paid-in capital
|
525,830
|
673,611
|
(673,611)
|
525,830
|
||||||||||||
Retained
earnings
|
1,114,170
|
469,092
|
(469,092)
|
1,114,170
|
||||||||||||
Accumulated
other comprehensive loss
|
(941)
|
-
|
-
|
(941)
|
||||||||||||
Other
shareholders’ equity
|
420
|
-
|
-
|
420
|
||||||||||||
Total
shareholders’ equity
|
1,796,777
|
1,166,556
|
(1,166,556)
|
1,796,777
|
||||||||||||
Total
liabilities and shareholders’ equity
|
$
|
3,177,387
|
$
|
3,887,760
|
$
|
(3,990,838)
|
$
|
3,074,309
|
(in
thousands)
|
As
of February 2, 2007
|
||||||||||||||
DOLLAR
GENERAL CORPORATION
|
GUARANTOR
SUBSIDIARIES
|
ELIMINATIONS
|
CONSOLIDATED
TOTAL
|
||||||||||||
BALANCE
SHEET:
|
|||||||||||||||
ASSETS
|
|||||||||||||||
Current
assets:
|
|||||||||||||||
Cash
and cash equivalents
|
$
|
114,310
|
$
|
74,978
|
$
|
-
|
$
|
189,288
|
|||||||
Short-term
investments
|
-
|
29,950
|
-
|
29,950
|
|||||||||||
Merchandise
inventories
|
-
|
1,432,336
|
-
|
1,432,336
|
|||||||||||
Income tax receivable
|
4,896
|
4,937
|
-
|
9,833
|
|||||||||||
Deferred
income taxes
|
5,099
|
19,222
|
-
|
24,321
|
|||||||||||
Prepaid
expenses and other
current
assets
|
139,913
|
1,086,890
|
(1,169,783)
|
57,020
|
|||||||||||
Total
current assets
|
264,218
|
2,648,313
|
(1,169,783)
|
1,742,748
|
|||||||||||
Property
and equipment, at cost
|
213,781
|
2,217,030
|
-
|
2,430,811
|
|||||||||||
Less
accumulated depreciation
and
amortization
|
115,201
|
1,078,736
|
-
|
1,193,937
|
|||||||||||
Net
property and equipment
|
98,580
|
1,138,294
|
-
|
1,236,874
|
|||||||||||
Other
assets, net
|
2,686,697
|
43,622
|
(2,669,427)
|
60,892
|
|||||||||||
Total
assets
|
$
|
3,049,495
|
$
|
3,830,229
|
$
|
(3,839,210)
|
$
|
3,040,514
|
|||||||
LIABILITIES
AND
SHAREHOLDERS’
EQUITY
|
|||||||||||||||
Current
liabilities:
|
|||||||||||||||
Current
portion of long-term
obligations
|
$
|
-
|
$
|
8,080
|
$
|
-
|
$
|
8,080
|
|||||||
Accounts
payable
|
1,076,028
|
647,153
|
(1,167,907)
|
555,274
|
|||||||||||
Accrued
expenses and other
|
13,327
|
242,107
|
(1,876)
|
253,558
|
|||||||||||
Income
taxes payable
|
-
|
15,959
|
-
|
15,959
|
|||||||||||
Total
current liabilities
|
1,089,355
|
913,299
|
(1,169,783)
|
832,871
|
|||||||||||
Long-term
obligations
|
199,842
|
1,584,526
|
(1,522,410)
|
261,958
|
|||||||||||
Deferred
income taxes
|
(793)
|
42,390
|
-
|
41,597
|
|||||||||||
Other
liabilities
|
15,344
|
142,997
|
-
|
158,341
|
|||||||||||
Shareholders’
equity:
|
|||||||||||||||
Preferred
stock
|
-
|
-
|
-
|
-
|
|||||||||||
Common
stock
|
156,218
|
23,853
|
(23,853)
|
156,218
|
|||||||||||
Additional
paid-in capital
|
486,145
|
673,611
|
(673,611)
|
486,145
|
|||||||||||
Retained
earnings
|
1,103,951
|
449,553
|
(449,553)
|
1,103,951
|
|||||||||||
Accumulated
other
comprehensive
loss
|
(987)
|
-
|
-
|
(987)
|
|||||||||||
Other
shareholders’ equity
|
420
|
-
|
-
|
420
|
|||||||||||
Total
shareholders’ equity
|
1,745,747
|
1,147,017
|
(1,147,017)
|
1,745,747
|
|||||||||||
Total
liabilities and shareholders’ equity
|
$
|
3,049,495
|
$
|
3,830,229
|
$
|
(3,839,210)
|
$
|
3,040,514
|
(In
thousands)
|
For
the 13 weeks ended
May
4, 2007
|
|||||||||||||||
DOLLAR
GENERAL CORPORATION
|
GUARANTOR
SUBSIDIARIES
|
ELIMINATIONS
|
CONSOLIDATED
TOTAL
|
|||||||||||||
STATEMENTS
OF INCOME:
|
||||||||||||||||
Net
sales
|
$
|
53,535
|
$
|
2,275,267
|
$
|
(53,535)
|
$
|
2,275,267
|
||||||||
Cost
of goods sold
|
-
|
1,642,207
|
-
|
1,642,207
|
||||||||||||
Gross
profit
|
53,535
|
633,060
|
(53,535)
|
633,060
|
||||||||||||
Selling,
general and administrative
|
45,440
|
585,787
|
(53,535)
|
577,692
|
||||||||||||
Operating
profit
|
8,095
|
47,273
|
-
|
55,368
|
||||||||||||
Interest
income
|
(24,498)
|
(820)
|
22,745
|
(2,573)
|
||||||||||||
Interest
expense
|
4,915
|
23,997
|
(22,745)
|
6,167
|
||||||||||||
Income
before income taxes
|
27,678
|
24,096
|
-
|
51,774
|
||||||||||||
Income
taxes
|
12,342
|
4,557
|
-
|
16,899
|
||||||||||||
Equity
in subsidiaries’ earnings, net
of taxes
|
19,539
|
-
|
(19,539)
|
-
|
||||||||||||
Net
income
|
$
|
34,875
|
$
|
19,539
|
$
|
(19,539)
|
$
|
34,875
|
(In
thousands)
|
For
the 13 weeks ended
May
5, 2006
|
|||||||||||||||
DOLLAR
GENERAL CORPORATION
|
GUARANTOR
SUBSIDIARIES
|
ELIMINATIONS
|
CONSOLIDATED
TOTAL
|
|||||||||||||
STATEMENTS
OF INCOME:
|
||||||||||||||||
Net
sales
|
$
|
38,653
|
$
|
2,151,387
|
$
|
(38,653)
|
$
|
2,151,387
|
||||||||
Cost
of goods sold
|
-
|
1,567,113
|
-
|
1,567,113
|
||||||||||||
Gross
profit
|
38,653
|
584,274
|
(38,653)
|
584,274
|
||||||||||||
Selling,
general and administrative
|
34,329
|
507,313
|
(38,653)
|
502,989
|
||||||||||||
Operating
profit
|
4,324
|
76,961
|
-
|
81,285
|
||||||||||||
Interest
income
|
(22,382)
|
(1,748)
|
21,680
|
(2,450)
|
||||||||||||
Interest
expense
|
3,798
|
25,129
|
(21,680)
|
7,247
|
||||||||||||
Income
before income taxes
|
22,908
|
53,580
|
-
|
76,488
|
||||||||||||
Income
taxes
|
8,412
|
20,406
|
-
|
28,818
|
||||||||||||
Equity
in subsidiaries’ earnings, net
of taxes
|
33,174
|
-
|
(33,174)
|
-
|
||||||||||||
Net
income
|
$
|
47,670
|
$
|
33,174
|
$
|
(33,174)
|
$
|
47,670
|
(In
thousands)
|
For
the 13 weeks ended
May
4, 2007
|
|||||||||||||||
DOLLAR
GENERAL CORPORATION
|
GUARANTOR
SUBSIDIARIES
|
ELIMINATIONS
|
CONSOLIDATED
TOTAL
|
|||||||||||||
STATEMENTS
OF CASH FLOWS:
|
||||||||||||||||
Cash
flows from operating activities:
|
||||||||||||||||
Net
income
|
$
|
34,875
|
$
|
19,539
|
$
|
(19,539)
|
$
|
34,875
|
||||||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||||||||||
Depreciation
and amortization
|
5,448
|
45,003
|
-
|
50,451
|
||||||||||||
Deferred
income taxes
|
(4,158)
|
(790)
|
-
|
(4,948)
|
||||||||||||
Noncash
share-based compensation
|
3,469
|
-
|
-
|
3,469
|
||||||||||||
Tax
benefit from stock option exercises
|
(3,529)
|
-
|
-
|
(3,529)
|
||||||||||||
Equity
in subsidiaries’ earnings, net
|
(19,539)
|
-
|
19,539
|
-
|
||||||||||||
Change
in operating assets and liabilities:
|
||||||||||||||||
Merchandise
inventories
|
-
|
(11,977)
|
-
|
(11,977)
|
||||||||||||
Prepaid expenses and other current assets
|
(764)
|
212
|
-
|
(552)
|
||||||||||||
Accounts
payable
|
(3,913)
|
(58,957)
|
-
|
(62,870)
|
||||||||||||
Accrued
expenses and other
|
4,868
|
20,779
|
-
|
25,647
|
||||||||||||
Income
taxes
|
(12,638)
|
10,902
|
-
|
(1,736)
|
||||||||||||
Other
|
(486)
|
942
|
-
|
456
|
||||||||||||
Net
cash provided by operating activities
|
3,633
|
25,653
|
-
|
29,286
|
||||||||||||
Cash
flows from investing activities:
|
||||||||||||||||
Purchases
of property and equipment
|
(3,849)
|
(30,252)
|
-
|
(34,101)
|
||||||||||||
Sales
of short-term investments
|
-
|
6,000
|
-
|
6,000
|
||||||||||||
Purchases
of long-term investments
|
-
|
(5,670)
|
-
|
(5,670)
|
||||||||||||
Proceeds
from sale of property and equipment
|
50
|
119
|
-
|
169
|
||||||||||||
Net
cash used in investing activities
|
(3,799)
|
(29,803)
|
-
|
(33,602)
|
||||||||||||
Cash
flows from financing activities:
|
||||||||||||||||
Repayments
of long-term obligations
|
(138)
|
(2,515)
|
-
|
(2,653)
|
||||||||||||
Payment
of cash dividends
|
(15,712)
|
-
|
-
|
(15,712)
|
||||||||||||
Proceeds
from exercise of stock options
|
34,281
|
-
|
-
|
34,281
|
||||||||||||
Changes
in intercompany note balances, net
|
(22,571)
|
22,571
|
-
|
-
|
||||||||||||
Tax
benefit from stock option exercises
|
3,529
|
-
|
-
|
3,529
|
||||||||||||
Net
cash provided by (used in) financing
activities
|
(611)
|
20,056
|
-
|
19,445
|
||||||||||||
Net
increase (decrease) in cash and cash
equivalents
|
(777)
|
15,906
|
-
|
15,129
|
||||||||||||
Cash
and cash equivalents, beginning of period
|
114,310
|
74,978
|
-
|
189,288
|
||||||||||||
Cash
and cash equivalents, end of period
|
$
|
113,533
|
$
|
90,884
|
$
|
-
|
$
|
204,417
|
(In
thousands)
|
For
the 13 weeks ended
May
5, 2006
|
|||||||||||||||
DOLLAR
GENERAL CORPORATION
|
GUARANTOR
SUBSIDIARIES
|
ELIMINATIONS
|
CONSOLIDATED
TOTAL
|
|||||||||||||
STATEMENTS
OF CASH FLOWS:
|
||||||||||||||||
Cash
flows from operating activities:
|
||||||||||||||||
Net
income
|
$
|
47,670
|
$
|
33,174
|
$
|
(33,174)
|
$
|
47,670
|
||||||||
Adjustments
to reconcile net income to net cash provided by (used in) operating
activities:
|
||||||||||||||||
Depreciation
and amortization
|
5,287
|
43,491
|
-
|
48,778
|
||||||||||||
Deferred
income taxes
|
(171)
|
5,773
|
-
|
5,602
|
||||||||||||
Noncash
share-based compensation
|
1,740
|
-
|
-
|
1,740
|
||||||||||||
Tax
benefit from stock option exercises
|
(1,461)
|
-
|
-
|
(1,461)
|
||||||||||||
Equity
in subsidiaries’ earnings, net
|
(33,174)
|
-
|
33,174
|
-
|
||||||||||||
Change
in operating assets and liabilities:
|
||||||||||||||||
Merchandise
inventories
|
-
|
(161,704)
|
-
|
(161,704)
|
||||||||||||
Prepaid
expenses and other current assets
|
(4,115)
|
(8,314)
|
-
|
(12,429)
|
||||||||||||
Accounts
payable
|
11,294
|
58,173
|
-
|
69,467
|
||||||||||||
Accrued
expenses and other
|
5,845
|
273
|
-
|
6,118
|
||||||||||||
Income
taxes
|
(1,269)
|
(18,967)
|
-
|
(20,236)
|
||||||||||||
Other
|
67
|
272
|
-
|
339
|
||||||||||||
Net
cash provided by (used in) operating
activities
|
31,713
|
(47,829)
|
-
|
(16,116)
|
||||||||||||
Cash
flows from investing activities:
|
||||||||||||||||
Purchases
of property and equipment
|
(2,754)
|
(74,348)
|
-
|
(77,102)
|
||||||||||||
Purchases
of short-term investments
|
(6,000)
|
(4,476)
|
-
|
(10,476)
|
||||||||||||
Sales
of short-term investments
|
6,000
|
-
|
-
|
6,000
|
||||||||||||
Purchases
of long-term investments
|
-
|
(10,809)
|
-
|
(10,809)
|
||||||||||||
Proceeds
from sale of property and equipment
|
136
|
167
|
-
|
303
|
||||||||||||
Net
cash used in investing activities
|
(2,618)
|
(89,466)
|
-
|
(92,084)
|
||||||||||||
Cash
flows from financing activities:
|
||||||||||||||||
Borrowings
under revolving credit facility
|
116,500
|
-
|
-
|
116,500
|
||||||||||||
Repayments
of borrowings under revolving
credit
facility
|
(51,500)
|
-
|
-
|
(51,500)
|
||||||||||||
Repayments
of long-term obligations, net
|
234
|
(2,598)
|
-
|
(2,364)
|
||||||||||||
Payment
of cash dividends
|
(15,686)
|
-
|
-
|
(15,686)
|
||||||||||||
Proceeds
from exercise of stock options
|
10,934
|
-
|
-
|
10,934
|
||||||||||||
Repurchases
of common stock
|
(79,947)
|
-
|
-
|
(79,947)
|
||||||||||||
Changes
in intercompany note balances, net
|
(121,536)
|
121,536
|
-
|
-
|
||||||||||||
Tax
benefit from stock option exercises
|
1,461
|
-
|
-
|
1,461
|
||||||||||||
Other
financing activities
|
68
|
1
|
-
|
69
|
||||||||||||
Net
cash provided by (used in) financing
activities
|
(139,472)
|
118,939
|
-
|
(20,533)
|
||||||||||||
Net
decrease in cash and cash equivalents
|
(110,377)
|
(18,356)
|
-
|
(128,733)
|
||||||||||||
Cash
and cash equivalents, beginning of period
|
110,410
|
90,199
|
-
|
200,609
|
||||||||||||
Cash
and cash equivalents, end of period
|
$
|
33
|
$
|
71,843
|
$
|
-
|
$
|
71,876
|
Estimated
Total
|
Incurred
in
2006
|
Incurred
in
2007
|
Remaining
|
|||||||||||||
Lease
contract termination costs
|
$
|
36.6
|
$
|
5.7
|
$
|
$ |
15.3
|
$
|
15.6
|
|||||||
One-time
employee termination benefits
|
0.9
|
0.3
|
0.3
|
0.3
|
||||||||||||
Other
associated store closing costs
|
8.1
|
0.2
|
2.2
|
5.7
|
||||||||||||
Inventory
liquidation fees
|
4.6
|
1.6
|
1.5
|
1.5
|
||||||||||||
Asset
impairment & accelerated depreciation
|
9.0
|
8.3
|
0.3
|
0.4
|
||||||||||||
Other
costs (a)
|
43.4
|
17.3
|
10.0
|
16.1
|
||||||||||||
Total
|
$
|
102.6
|
$
|
33.4
|
$
|
$ |
29.6
|
$
|
39.6
|
|||||||
(a)
Includes incremental store labor, advertising and other
costs.
|
· |
Better
merchandising and category management, SKU rationalization and space
reallocation with an increased focus on gross margin, returns per
square
foot and shrink reduction;
|
· |
Optimizing
our real estate strategies by establishing a comprehensive real estate
review program based on new processes and technology directed with
a more
disciplined approach;
|
· |
Implementing
zone pricing across our store base;
|
· |
Increasing
foreign direct sourcing;
|
· |
Increasing
private label penetration with greater consistency; and
|
· |
Improving
distribution and transportation logistics.
|
|
13
Weeks Ended
|
2007
vs. 2006
|
|||||||||
(amounts
in millions, excluding per share amounts)
|
May
4,
2007
|
May
5,
2006
|
Amount
change
|
%
change
|
|||||||
Net
sales by category:
|
|||||||||||
Highly
consumable
|
$
|
1,523.8
|
$
|
1,456.0
|
$
|
67.8
|
4.7
|
%
|
|||
%
of net sales
|
66.97%
|
67.68%
|
|||||||||
Seasonal
|
336.4
|
309.6
|
26.9
|
8.7
|
|||||||
%
of net sales
|
14.79%
|
14.39%
|
|||||||||
Home
products
|
215.0
|
211.7
|
3.4
|
1.6
|
|||||||
%
of net sales
|
9.45%
|
9.84%
|
|||||||||
Basic
clothing
|
200.0
|
174.2
|
25.8
|
14.8
|
|||||||
%
of net sales
|
8.79%
|
8.10%
|
|||||||||
Net
sales
|
$
|
2,275.3
|
$
|
2,151.4
|
$
|
123.9
|
5.8
|
%
|
|||
Cost
of goods sold
|
1,642.2
|
1,567.1
|
75.1
|
4.8
|
|||||||
%
of net sales
|
72.18%
|
72.84%
|
|||||||||
Gross
profit
|
633.1
|
584.3
|
48.8
|
8.3
|
|||||||
%
of net sales
|
27.82%
|
27.16%
|
|||||||||
Selling,
general and administrative
|
577.7
|
503.0
|
74.7
|
14.9
|
|||||||
%
of net sales
|
25.39%
|
23.38%
|
|||||||||
Operating
profit
|
55.4
|
81.3
|
(25.9)
|
(31.9)
|
|||||||
%
of net sales
|
2.43%
|
3.78%
|
|||||||||
Interest
income
|
(2.6)
|
(2.5)
|
(0.1)
|
5.0
|
|||||||
%
of net sales
|
(0.11)%
|
(0.11)%
|
|||||||||
Interest
expense
|
6.2
|
7.2
|
(1.1)
|
(14.9)
|
|||||||
%
of net sales
|
0.27%
|
0.34%
|
|||||||||
Income
before income taxes
|
51.8
|
76.5
|
(24.7)
|
(32.3)
|
|||||||
%
of net sales
|
2.28%
|
3.56%
|
|||||||||
Income
taxes
|
16.9
|
28.8
|
(11.9)
|
(41.4)
|
|||||||
%
of net sales
|
0.74%
|
1.34%
|
|||||||||
Net
income
|
$
|
34.9
|
$
|
47.7
|
$
|
(12.8)
|
(26.8)
|
%
|
|||
%
of net sales
|
1.53%
|
2.22%
|
|||||||||
Diluted
earnings per share
|
$
|
0.11
|
$
|
0.15
|
$
|
0.04
|
(26.7)
|
%
|
|||
Weighted
average diluted shares
|
315.9
|
315.2
|
0.7
|
0.2
|
· |
applying
the RIM to a group of products that is not fairly uniform in terms
of its
cost and selling price relationship and
turnover;
|
· |
applying
the RIM to transactions over a period of time that include different
rates
of gross profit, such as those relating to seasonal
merchandise;
|
· |
inaccurate
estimates of inventory shrinkage between the date of the last physical
inventory at a store and the financial statement date;
and
|
· |
inaccurate
estimates of LCM and/or LIFO
reserves.
|
· |
the
occurrence of any event, change or other circumstances that could
give
rise to a termination of the merger
agreement;
|
· |
the
outcome of any legal proceedings that have been or may be instituted
against us, members of our Board of Directors and others relating
to the
merger agreement, including the terms of any settlement of such legal
proceedings that may be subject to court
approval;
|
· |
the
inability to complete the merger due to the failure to obtain shareholder
approval or the failure to satisfy other conditions to consummation
of the
merger;
|
· |
the
failure by KKR or its affiliates to obtain the necessary debt financing
arrangements set forth in the commitment letter received in connection
with the merger; and
|
· |
the
failure of the merger to close for any other
reason.
|
· |
there
may be substantial disruption to our business and a distraction of
our
management and employees from day-to-day operations, because matters
related to the merger may require substantial commitments of their
time
and resources;
|
· |
uncertainty
about the effect of the merger may adversely affect our credit rating
and
our relationships with our employees, suppliers and other persons
with
whom we have business relationships;
|
· |
certain
costs relating to the merger, such as legal, accounting and financial
advisory fees, are payable by us whether or not the merger is completed;
and
|
· |
under
certain circumstances, if the merger is not completed, we may be
required
to pay the buyer a termination fee of up to $225 million.
|
Period
|
Total
Number
of
Shares Purchased (a)
|
Average
Price Paid per Share
|
Total
Number
of
Shares Purchased as Part of Publicly Announced Plans or Programs
(b)
|
Approximate
Dollar Value of Shares that May Yet Be Purchased Under the Plans
or
Programs (b)
|
||||||||||
02/03/07-02/28/07
|
232
|
$17.16
|
-
|
$500,000,000
|
||||||||||
03/01/07-03/31/07
|
629
|
|
$21.18
|
-
|
$500,000,000
|
|||||||||
04/01/06-05/04/07
|
4,201
|
$21.15
|
-
|
$500,000,000
|
||||||||||
Total
|
5,062
|
$20.97
|
-
|
$500,000,000
|
DOLLAR
GENERAL CORPORATION
|
||
Date: |