Tractor Supply Company (NASDAQ: TSCO), the largest
rural lifestyle retailer in the United States, today announced
financial results for its fourth quarter and fiscal year ended
December 28, 2019.
- Fourth Quarter Net Sales Increased 2.7%; Fourth Quarter
Comparable Store Sales Increased 0.1% on top of 5.7% comparable
store sales growth in the same period last year
- Fiscal Year Net Sales Increased 5.6%; Fiscal Year Comparable
Store Sales Increased 2.7%
- Fourth Quarter Diluted Earnings per Share (“EPS”) Increased
9.0% to $1.21; Fiscal Year Diluted EPS of $4.66 and Adjusted
Diluted EPS of $4.681
- $696.0 Million of Capital Returned to Shareholders Through
Share Repurchases and Quarterly Cash Dividends in Fiscal 2019
- Company Provides Fiscal 2020 Diluted EPS Outlook of $4.90 to
$5.10
1 See “Use and Reconciliation
of Non-GAAP Financial Measures” below.
Greg Sandfort, Tractor Supply’s Strategic
Advisor and retired Chief Executive Officer, effective January 13,
2020, commented, “Overall, 2019 was a solid year for the Tractor
Supply team as we achieved record revenue and net income.
While our comparable store sales performance for the fourth quarter
was below our expectations, the weakness was driven principally by
the effect of a period of warmer than expected weather impacting
the sales of seasonal products and softness in several holiday
discretionary categories. Despite the sales trends in the
quarter, the Tractor Supply team executed well, controlling what we
could control. This performance resulted in earnings per
share in line with our guidance range as the team delivered gross
margin expansion accompanied with disciplined cost management. I am
optimistic about the future of Tractor Supply and where Hal and the
team will lead the Company in the future.”
Hal Lawton, who was named Tractor Supply’s
President and Chief Executive Officer, effective January 13, 2020,
said, “I would like to thank Greg for his outstanding leadership
and dedication to Tractor Supply over the last 12 years. As
we move into 2020 and beyond, Tractor Supply is well positioned to
build on our strengths, and I am excited about our opportunities
for growth. At Tractor Supply, we have a differentiated
customer experience, a robust set of competencies, and are well
positioned to become an even more integral part of our customers’
lives. In the coming weeks and months, I will be focused on
listening and learning from Tractor Supply team members and working
with the leadership team to position Tractor Supply for continued
long-term success.”
Fourth Quarter 2019
HighlightsNet sales increased 2.7% to $2.19 billion in the
fourth quarter of 2019 from $2.13 billion in the fourth quarter of
2018. Comparable store sales increased 0.1% versus an
increase of 5.7% in the prior year’s fourth quarter. The
comparable store sales results included an increase in comparable
average ticket of 1.8% and a decrease in comparable transaction
count of 1.7%. The comparable store sales performance in the
fourth quarter was primarily driven by strength in the consumable,
usable and edible categories, which were generally in line with the
Company’s expectations. This performance was offset by weakness in
cold weather seasonal and holiday discretionary categories.
Softness in the cold weather seasonal categories such as heating
equipment and insulated outerwear were impacted by the unseasonably
warm weather in December which was the sixth warmest in 125 years.
Emergency response categories were negatively impacted as the
Company cycled hurricane-related sales from the fourth quarter of
2018. In addition, holiday discretionary categories were
pressured by six fewer selling days between Thanksgiving and
Christmas compared to last year, which had a greater impact on
sales than the Company had anticipated.
Gross profit increased 3.6% to $741.8 million
from $716.3 million, and gross margin rate increased 26 basis
points to 33.8% from 33.6% in the prior year’s fourth
quarter. The increase in gross margin was primarily
attributable to a reduction in freight expense as a percent of net
sales and, to a lesser extent, effective management of direct
product margins.
Selling, general and administrative (SG&A)
expenses, including depreciation and amortization, increased 2.9%
to $551.4 million from $536.0 million in the prior year’s fourth
quarter. As a percent of net sales, SG&A expenses
increased three basis points to 25.2% from 25.1% in the fourth
quarter of 2018. The increase in SG&A as a percent of net
sales was primarily attributable to deleverage in store personnel,
occupancy and other costs, including depreciation, from the
decrease in comparable store sales and incremental costs associated
with the new distribution facility in Frankfort, NY. These
SG&A increases were partially offset by a decrease in incentive
compensation as well as disciplined cost management.
The effective income tax rate was 22.3% compared
to a rate of 22.2% in the prior year’s fourth quarter.
Net income was $144.2 million, or $1.21 per
diluted share, compared to net income of $136.9 million, or $1.11
per diluted share, in the fourth quarter of 2018.
The Company opened 30 new Tractor Supply stores
and five new Petsense stores in the fourth quarter of 2019.
Additionally, in the fourth quarter of 2019, the Company closed one
Petsense store.
Fiscal 2019 ResultsNet sales
increased 5.6% to $8.35 billion from $7.91 billion in fiscal 2018.
Comparable store sales increased 2.7% versus a 5.1% increase
in fiscal 2018. Gross profit increased 6.3% to $2.87 billion from
$2.70 billion, and gross margin increased by 22 basis points to
34.4% from 34.2%.
SG&A expenses, including depreciation and
amortization, increased 6.4% to $2.13 billion, and as a percent of
net sales, SG&A expenses increased to 25.5% compared to 25.3%
in fiscal 2018.
The effective income tax rate was 22.3% compared
to a rate of 22.1% in fiscal 2018.
For fiscal 2019, net income was $562.4 million,
or $4.66 per diluted share, compared to $532.4 million, or $4.31
per diluted share, in fiscal 2018. Excluding the after-tax
impact of an executive transition agreement in the third quarter of
fiscal 2019 of approximately $2.3 million, or $0.02 per diluted
share, adjusted net income for fiscal 2019 was $564.7 million, or
$4.68 per diluted share.
The Company repurchased approximately 5.4
million shares of its common stock for $533.3 million and paid
quarterly cash dividends totaling $162.7 million, returning $696.0
million of capital to shareholders in fiscal 2019.
During fiscal 2019, the Company opened 80 new
Tractor Supply stores and eight new Petsense stores and closed one
Tractor Supply store and three Petsense stores.
Fiscal 2020 OutlookThe Company
is providing the following initial guidance for the results of
operations expected for fiscal 2020:
|
Net Sales |
$8.75 billion - $ 8.90 billion |
|
|
Comparable Store Sales |
+1.5% - +3.0% |
|
|
Operating Margin Rate |
~8.9% |
|
|
Net Income |
$575 million - $595 million |
|
|
Earnings per Diluted
Share |
$4.90 - $5.10 |
|
|
Capital Expenditures |
$225 million - $275 million |
|
|
|
|
|
The Company’s diluted EPS guidance assumes an
estimated effective income tax rate of 22.4% to
22.7%.
Share repurchases for fiscal 2020 are expected
to be in the range of $450 million to $550 million.
Anticipated capital expenditures include new store growth of
approximately 80 new Tractor Supply and 10 to 15 new Petsense store
openings.
Conference Call
InformationTractor Supply Company will hold a conference
call today, Thursday, January 30, 2020 at 9:00 a.m. CT / 10:00 a.m.
ET, hosted by Hal Lawton, Chief Executive Officer; Greg Sandfort,
Strategic Advisor; and Kurt Barton, Chief Financial Officer.
The call will be webcast live at IR.TractorSupply.com.
The call will be broadcast simultaneously over
the Internet on the Company’s website at
IR.TractorSupply.com. Please allow extra time prior to the
call to visit the site and download the streaming media software
required to listen to the Internet broadcast. A replay of the
webcast will also be available at IR.TractorSupply.com shortly
after the conference call concludes.
About Tractor Supply
CompanyTractor Supply Company (NASDAQ: TSCO), the largest
rural lifestyle retailer in the United States, has been passionate
about serving its unique niche, as a one-stop shop for recreational
farmers, ranchers and all those who enjoy living the rural
lifestyle, for more than 80 years. Tractor Supply offers an
extensive mix of products necessary to care for home, land, pets
and animals with a focus on product localization, exclusive brands
and legendary customer service that addresses the needs of the Out
Here lifestyle. With more than 32,000 team members, the
Company leverages its physical store assets with digital
capabilities to offer customers the convenience of purchasing
products they need anytime, anywhere and any way they choose at the
everyday low prices they deserve. At December 28, 2019, the
Company operated 1,844 Tractor Supply stores in 49 states and an
e-commerce website at www.TractorSupply.com.
Tractor Supply Company also owns and operates
Petsense, a small-box pet specialty supply retailer focused on
meeting the needs of pet owners, primarily in small and mid-size
communities, and offering a variety of pet products and services.
At December 28, 2019, the Company operated 180 Petsense
stores in 26 states. For more information on Petsense, visit
www.Petsense.com.
Tractor Supply CompanyContacts: Mary Winn
Pilkington (615) 440-4212 Marianne Denenberg (615) 440-4345
Forward Looking StatementsAs
with any business, all phases of the Company’s operations are
subject to influences outside its control. This information
contains certain forward-looking statements, including statements
regarding sales and earnings growth, estimated results of
operations, including, but not limited to, net sales, operating
margins, net income, earnings per share and comparable store sales,
share repurchases and capital expenditures. Other factors
affecting future results include the amount of share repurchases,
marketing, merchandising and strategic initiatives and new store
and distribution center openings and expenses in future
periods. These forward-looking statements are subject to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 and are subject to the finalization of the Company’s
quarterly financial and accounting procedures, and may be affected
by certain risks and uncertainties, any one, or a combination, of
which could materially affect the results of the Company’s
operations. These factors include, without limitation,
national, regional and local economic conditions affecting consumer
spending, the timing and acceptance of new products in the stores,
the timing and mix of goods sold, weather conditions, the seasonal
nature of the business, transportation costs, including but not
limited to, carrier rates and fuel costs, purchase price volatility
(including inflationary and deflationary pressures), the ability to
increase sales at existing stores, the ability to manage growth and
identify suitable locations, failure of an acquisition to produce
anticipated results, the ability to successfully manage expenses,
including but not limited to, increases in wages, and execute key
gross margin enhancing initiatives, the availability of favorable
credit sources, capital market conditions in general, the ability
to open new stores in the manner and number currently contemplated,
the impact of new stores on the business, competition, including
competition from online retailers, effective merchandising
initiatives and marketing emphasis, the ability to retain vendors,
reliance on foreign suppliers, the ability to attract, train and
retain qualified employees, product liability and other claims,
changes in federal, state or local regulations, potential
judgments, fines, legal fees and other costs, breach of information
systems or theft of employee or customer data, ongoing and
potential future legal or regulatory proceedings, management of the
Company’s information systems, failure to develop and implement new
technologies, the failure of customer-facing technology systems,
business disruption including from the implementation of supply
chain technologies, effective tax rate changes, including expected
effects of the Tax Cuts and Jobs Act, and results of examination by
taxing authorities, the imposition of tariffs on imported products
or the disallowance of tax deductions on imported products, the
ability to maintain an effective system of internal control over
financial reporting, and changes in accounting standards,
assumptions and estimates. Forward-looking statements made by
or on behalf of the Company are based on knowledge of its business
and the environment in which it operates, but because of the
factors listed above, actual results could differ materially from
those reflected by any forward-looking statements.
Consequently, all of the forward-looking statements made are
qualified by these cautionary statements and those contained in the
Company’s Annual Report on Form 10-K and other filings with the
Securities and Exchange Commission. There can be no assurance
that the results or developments anticipated by the Company will be
realized or, even if substantially realized, that they will have
the expected consequences to or effects on the Company or its
business and operations. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date hereof. The Company does not undertake
any obligation to release publicly any revisions to these
forward-looking statements to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated
events.
(Financial tables to follow)
Condensed Consolidated Statements of
Income(Unaudited)(in thousands,
except per share amounts)
|
FOURTH QUARTER ENDED |
|
YEAR ENDED |
|
December 28, 2019 |
|
December 29, 2018 |
|
December 28, 2019 |
|
December 29, 2018 |
|
|
|
% of |
|
|
|
% of |
|
|
|
% of |
|
|
|
% of |
|
|
|
Net |
|
|
|
Net |
|
|
|
Net |
|
|
|
Net |
|
|
|
Sales |
|
|
|
Sales |
|
|
|
Sales |
|
|
|
Sales |
Net sales |
$ |
2,191,785 |
|
|
100.00 |
% |
|
$ |
2,133,271 |
|
|
100.00 |
% |
|
$ |
8,351,931 |
|
|
100.00 |
% |
|
$ |
7,911,046 |
|
|
100.00 |
% |
Cost of merchandise sold |
1,449,984 |
|
|
66.16 |
|
|
1,416,938 |
|
|
66.42 |
|
|
5,480,161 |
|
|
65.62 |
|
|
5,208,518 |
|
|
65.84 |
|
Gross
profit |
741,801 |
|
|
33.84 |
|
|
716,333 |
|
|
33.58 |
|
|
2,871,770 |
|
|
34.38 |
|
|
2,702,528 |
|
|
34.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
499,969 |
|
|
22.81 |
|
|
489,983 |
|
|
22.97 |
|
|
1,932,572 |
|
|
23.14 |
|
|
1,823,440 |
|
|
23.05 |
|
Depreciation and
amortization |
51,394 |
|
|
2.34 |
|
|
45,968 |
|
|
2.15 |
|
|
195,978 |
|
|
2.34 |
|
|
177,351 |
|
|
2.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
190,438 |
|
|
8.69 |
|
|
180,382 |
|
|
8.46 |
|
|
743,220 |
|
|
8.90 |
|
|
701,737 |
|
|
8.87 |
|
Interest expense, net |
4,837 |
|
|
0.22 |
|
|
4,446 |
|
|
0.21 |
|
|
19,843 |
|
|
0.24 |
|
|
18,352 |
|
|
0.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
185,601 |
|
|
8.47 |
|
|
175,936 |
|
|
8.25 |
|
|
723,377 |
|
|
8.66 |
|
|
683,385 |
|
|
8.64 |
|
Income tax expense |
41,422 |
|
|
1.89 |
|
|
39,085 |
|
|
1.83 |
|
|
161,023 |
|
|
1.93 |
|
|
151,028 |
|
|
1.91 |
|
Net
income |
$ |
144,179 |
|
|
6.58 |
% |
|
$ |
136,851 |
|
|
6.42 |
% |
|
$ |
562,354 |
|
|
6.73 |
% |
|
$ |
532,357 |
|
|
6.73 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.22 |
|
|
|
|
$ |
1.12 |
|
|
|
|
$ |
4.70 |
|
|
|
|
$ |
4.34 |
|
|
|
Diluted |
$ |
1.21 |
|
|
|
|
$ |
1.11 |
|
|
|
|
$ |
4.66 |
|
|
|
|
$ |
4.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
118,370 |
|
|
|
|
122,152 |
|
|
|
|
119,727 |
|
|
|
|
122,651 |
|
|
|
Diluted |
119,255 |
|
|
|
|
123,172 |
|
|
|
|
120,743 |
|
|
|
|
123,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common
share outstanding |
$ |
0.35 |
|
|
|
|
$ |
0.31 |
|
|
|
|
$ |
1.36 |
|
|
|
|
$ |
1.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of
Comprehensive
Income(Unaudited)(in
thousands)
|
FOURTH QUARTER ENDED |
|
YEAR ENDED |
|
December 28, 2019 |
|
December 29, 2018 |
|
December 28, 2019 |
|
December 29, 2018 |
Net income |
$ |
144,179 |
|
|
$ |
136,851 |
|
|
$ |
562,354 |
|
|
$ |
532,357 |
|
|
|
|
|
|
|
|
|
Other comprehensive
income/(loss): |
|
|
|
|
|
|
|
Change in fair value of interest rate swaps, net of
taxes |
126 |
|
|
(2,155 |
) |
|
(4,332 |
) |
|
456 |
|
Total other comprehensive
income/(loss) |
126 |
|
|
(2,155 |
) |
|
(4,332 |
) |
|
456 |
|
Total comprehensive
income |
$ |
144,305 |
|
|
$ |
134,696 |
|
|
$ |
558,022 |
|
|
$ |
532,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance
Sheets(Unaudited)(in
thousands)
|
December 28, 2019 |
|
December 29, 2018 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
84,241 |
|
|
$ |
86,299 |
|
Inventories |
1,602,781 |
|
|
1,589,542 |
|
Prepaid expenses and other current assets |
100,865 |
|
|
114,447 |
|
Income taxes receivable |
— |
|
|
4,111 |
|
Total current assets |
1,787,887 |
|
|
1,794,399 |
|
|
|
|
|
Property and equipment,
net |
1,163,956 |
|
|
1,134,464 |
|
Operating lease right-of-use
assets |
2,188,802 |
|
|
— |
|
Goodwill and other intangible
assets |
124,492 |
|
|
124,492 |
|
Deferred income taxes |
— |
|
|
6,607 |
|
Other assets |
24,131 |
|
|
25,300 |
|
Total assets |
$ |
5,289,268 |
|
|
$ |
3,085,262 |
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
643,036 |
|
|
$ |
619,981 |
|
Accrued employee compensation |
39,755 |
|
|
54,046 |
|
Other accrued expenses |
247,690 |
|
|
232,416 |
|
Current portion of long-term debt |
30,000 |
|
|
26,250 |
|
Current portion of finance lease liabilities |
4,036 |
|
|
3,646 |
|
Current portion of operating lease liabilities |
277,099 |
|
|
— |
|
Income taxes payable |
5,984 |
|
|
1,768 |
|
Total current liabilities |
1,247,600 |
|
|
938,107 |
|
|
|
|
|
Long-term debt |
366,480 |
|
|
381,100 |
|
Finance lease liabilities,
less current portion |
30,389 |
|
|
29,270 |
|
Operating lease liabilities,
less current portion |
2,001,162 |
|
|
— |
|
Deferred income taxes |
153 |
|
|
— |
|
Deferred rent |
— |
|
|
107,038 |
|
Other long-term
liabilities |
76,361 |
|
|
67,927 |
|
Total liabilities |
3,722,145 |
|
|
1,523,442 |
|
|
|
|
|
Stockholders’ equity: |
|
|
|
Common stock |
1,389 |
|
|
1,375 |
|
Additional paid-in capital |
966,698 |
|
|
823,413 |
|
Treasury stock |
(3,013,996 |
) |
|
(2,480,677 |
) |
Accumulated other comprehensive income |
199 |
|
|
3,814 |
|
Retained earnings |
3,612,833 |
|
|
3,213,895 |
|
Total stockholders’ equity |
1,567,123 |
|
|
1,561,820 |
|
Total liabilities and stockholders’ equity |
$ |
5,289,268 |
|
|
$ |
3,085,262 |
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Cash
Flows(Unaudited) (in
thousands)
|
YEAR ENDED |
|
December 28, 2019 |
|
December 29, 2018 |
Cash flows from
operating activities: |
|
|
|
Net income |
$ |
562,354 |
|
|
$ |
532,357 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
Depreciation and amortization |
195,978 |
|
|
177,351 |
|
Gain on disposition of property and equipment |
(297 |
) |
|
(567 |
) |
Share-based compensation expense |
31,136 |
|
|
28,921 |
|
Deferred income taxes |
6,760 |
|
|
11,887 |
|
Change in assets and liabilities: |
|
|
|
Inventories |
(13,239 |
) |
|
(136,334 |
) |
Prepaid expenses and other current assets |
13,582 |
|
|
(26,195 |
) |
Accounts payable |
23,055 |
|
|
43,413 |
|
Accrued employee compensation |
(14,291 |
) |
|
22,373 |
|
Other accrued expenses |
10,351 |
|
|
36,406 |
|
Income taxes |
8,327 |
|
|
(8,355 |
) |
Other |
(12,000 |
) |
|
13,137 |
|
Net cash provided by operating activities |
811,716 |
|
|
694,394 |
|
Cash flows from
investing activities: |
|
|
|
Capital expenditures |
(217,450 |
) |
|
(278,530 |
) |
Proceeds from sale of property and equipment |
2,489 |
|
|
2,216 |
|
Net cash used in investing activities |
(214,961 |
) |
|
(276,314 |
) |
Cash flows from
financing activities: |
|
|
|
Borrowings under debt facilities |
1,002,000 |
|
|
1,193,500 |
|
Repayments under debt facilities |
(1,013,250 |
) |
|
(1,212,250 |
) |
Debt issuance costs |
— |
|
|
(346 |
) |
Principal payments under finance lease liabilities |
(3,708 |
) |
|
(3,246 |
) |
Repurchase of shares to satisfy tax obligations |
(3,818 |
) |
|
(1,367 |
) |
Repurchase of common stock |
(533,319 |
) |
|
(349,776 |
) |
Net proceeds from issuance of common stock |
115,981 |
|
|
79,643 |
|
Cash dividends paid to stockholders |
(162,699 |
) |
|
(147,087 |
) |
Net cash used in financing activities |
(598,813 |
) |
|
(440,929 |
) |
Net change in cash and
cash equivalents |
(2,058 |
) |
|
(22,849 |
) |
Cash and cash equivalents at
beginning of period |
86,299 |
|
|
109,148 |
|
Cash and cash equivalents at
end of period |
$ |
84,241 |
|
|
$ |
86,299 |
|
|
|
|
|
Supplemental
disclosures of cash flow information: |
|
|
|
Cash paid during the period
for: |
|
|
|
Interest |
$ |
19,146 |
|
|
$ |
18,069 |
|
Income taxes |
144,377 |
|
|
146,918 |
|
|
|
|
|
Supplemental
disclosures of non-cash activities: |
|
|
|
Non-cash accruals for construction in progress |
$ |
7,924 |
|
|
$ |
3,001 |
|
Operating lease assets and liabilities recognized upon adoption of
ASC 842 |
2,084,880 |
|
|
— |
|
Increase of operating lease assets and liabilities from new or
modified leases |
365,233 |
|
|
— |
|
Increase of finance lease assets and liabilities from new or
modified leases |
5,217 |
|
|
— |
|
Selected Financial and Operating
Information(Unaudited)
|
|
FOURTH QUARTER ENDED |
|
YEAR ENDED |
|
|
December 28, 2019 |
|
December 29, 2018 |
|
December 28, 2019 |
|
December 29, 2018 |
Sales
Information: |
|
|
|
|
|
|
|
|
Comparable store sales increase |
|
|
0.1 % |
|
5.7 % |
|
|
2.7 % |
|
|
5.1 % |
New store sales (% of total
sales) |
|
|
2.6 % |
|
3.3 % |
|
|
2.8 % |
|
|
3.8 % |
Average transaction value |
|
$47.85 |
|
$47.03 |
|
$46.89 |
|
$45.85 |
Comparable store average
transaction value increase |
|
|
1.8 % |
|
3.0 % |
|
|
2.4 % |
|
|
2.8 % |
Comparable store average
transaction count (decrease)/increase |
|
|
(1.7)% |
|
2.6 % |
|
|
0.3 % |
|
|
2.2 % |
Total selling square footage
(000’s) |
|
|
30,854 |
|
29,571 |
|
|
30,854 |
|
|
29,571 |
Exclusive brands (% of total
sales) |
|
|
30.8 % |
|
31.2 % |
|
|
31.0 % |
|
|
31.4 % |
Imports (% of total
sales) |
|
|
14.4 % |
|
14.9 % |
|
|
12.0 % |
|
|
12.5 % |
|
|
|
|
|
|
|
|
|
Store Count
Information: |
|
|
|
|
|
|
|
|
Tractor Supply |
|
|
|
|
|
|
|
|
Beginning of period |
|
|
1,814 |
|
1,748 |
|
|
1,765 |
|
|
1,685 |
New stores opened |
|
|
30 |
|
17 |
|
|
80 |
|
|
80 |
Stores closed |
|
|
— |
|
— |
|
|
(1) |
|
|
— |
End of period |
|
|
1,844 |
|
1,765 |
|
|
1,844 |
|
|
1,765 |
Petsense |
|
|
|
|
|
|
|
|
Beginning of period |
|
|
176 |
|
181 |
|
|
175 |
|
|
168 |
New stores opened |
|
|
5 |
|
4 |
|
|
8 |
|
|
18 |
Stores closed |
|
|
(1) |
|
(10) |
|
|
(3) |
|
|
(11) |
End of period |
|
|
180 |
|
175 |
|
|
180 |
|
|
175 |
Consolidated end of
period |
|
|
2,024 |
|
1,940 |
|
|
2,024 |
|
|
1,940 |
|
|
|
|
|
|
|
|
|
Pre-opening costs (000’s) |
|
$2,832 |
|
$1,451 |
|
$8,090 |
|
$8,485 |
|
|
|
|
|
|
|
|
|
Balance Sheet
Information: |
|
|
|
|
|
|
|
|
Average inventory per store (000’s) (a) |
|
$751.3 |
|
$766.8 |
|
$751.3 |
|
$766.8 |
Inventory turns
(annualized) |
|
|
3.42 |
|
3.49 |
|
|
3.23 |
|
|
3.27 |
Share repurchase program: |
|
|
|
|
|
|
|
|
Cost (000’s) |
|
$43,342 |
|
$60,571 |
|
$533,319 |
|
$349,776 |
Average purchase price per share |
|
$94.63 |
|
$87.61 |
|
$99.05 |
|
$70.14 |
|
|
|
|
|
|
|
|
|
Capital Expenditures
(in millions): |
|
|
|
|
|
|
|
|
Information technology |
|
$22.8 |
|
$24.3 |
|
$89.3 |
|
$86.7 |
New and relocated stores and
stores not yet opened |
|
|
20.7 |
|
15.9 |
|
|
59.3 |
|
|
68.0 |
Existing stores |
|
|
22.0 |
|
15.7 |
|
|
45.5 |
|
|
41.5 |
Distribution center capacity
and improvements |
|
|
5.4 |
|
28.8 |
|
|
19.7 |
|
|
82.0 |
Corporate and other |
|
|
2.3 |
|
0.1 |
|
|
3.7 |
|
|
0.3 |
Total |
|
$73.2 |
|
$84.8 |
|
$217.5 |
|
$278.5 |
|
|
|
|
|
|
|
|
|
(a) Assumes average inventory cost, excluding inventory in
transit.
Use of Non-GAAP Financial
MeasuresTractor Supply reports its financial results in
accordance with accounting principles generally accepted in the
United States of America (U.S. GAAP). Tractor Supply also
uses certain non-GAAP measures that fall within the meaning of
Securities and Exchange Commission Regulation G and Regulation S-K
Item 10(e), which may provide users of the financial information
with additional meaningful comparison to prior reported
results. Non-GAAP measures do not have standardized
definitions and are not defined by U.S. GAAP. Therefore,
Tractor Supply’s non-GAAP measures are unlikely to be comparable to
similar measures presented by other companies. The
presentation of these non-GAAP measures should not be considered in
isolation from, as a substitute for or as superior to the financial
information presented in accordance with U.S. GAAP. We
believe this information is useful in providing period-to-period
comparisons of the results of our continuing operations.
Reconciliation of Non-GAAP Financial
Measures(Unaudited)(in thousands,
except per share amounts)
|
YEAR ENDED |
|
December 28, 2019 |
|
Executive Transition Agreement |
|
December 28, 2019 |
|
(As Reported) |
|
(Adjustment) |
|
(As Adjusted) |
|
|
|
% of |
|
|
|
% of |
|
|
|
% of |
|
|
|
Net |
|
|
|
Net |
|
|
|
Net |
|
|
|
Sales |
|
|
|
Sales |
|
|
|
Sales |
Selling, general and administrative expenses |
$ |
1,932,572 |
|
|
23.14 |
% |
|
$ |
(2,942 |
) |
|
|
(0.04 |
) |
% |
|
$ |
1,929,630 |
|
|
23.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
$ |
743,220 |
|
|
8.90 |
% |
|
$ |
2,942 |
|
|
|
0.04 |
|
% |
|
$ |
746,162 |
|
|
8.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
$ |
723,377 |
|
|
8.66 |
% |
|
$ |
2,942 |
|
|
|
0.04 |
|
% |
|
$ |
726,319 |
|
|
8.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
$ |
161,023 |
|
|
1.93 |
% |
|
$ |
652 |
|
|
|
0.01 |
|
% |
|
$ |
161,675 |
|
|
1.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
562,354 |
|
|
6.73 |
% |
|
$ |
2,290 |
|
|
|
0.03 |
|
% |
|
$ |
564,644 |
|
|
6.76 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per
share |
$ |
4.66 |
|
|
|
|
$ |
0.02 |
|
|
|
|
|
$ |
4.68 |
|
|
|
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