Tractor Supply Company (NASDAQ: TSCO), the largest rural
lifestyle retailer in the United States, today reported financial
results for its fourth quarter and fiscal year ended December 25,
2021.
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the full release here:
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- Fourth Quarter Net Sales Increased 15.3%; Fourth Quarter
Comparable Store Sales Increased 12.7%
- Fiscal Year Net Sales Increased 19.9%; Fiscal Year Comparable
Store Sales Increased 16.9%
- Fourth Quarter Diluted Earnings per Share (“EPS”) of $1.93 and
Fiscal 2021 Diluted EPS of $8.61
- Provides Robust Fiscal 2022 Financial Outlook and Updates
Long-Term Financial Targets
- Increases Quarterly Dividend by 77% to $0.92 per share and
Authorizes Additional Share Repurchases of $2.0 Billion
“Tractor Supply had an outstanding fourth quarter, capping off a
record year of sales and earnings in 2021. Thank you to our 46,000
Team Members for their hard work, passion and dedication to Life
Out Here. Today, our business is substantially stronger than before
the pandemic. Our resilient and differentiated business model has
allowed us to capitalize on the structural consumer trends
benefiting our business, and we believe we have a long growth
runway ahead of us. We have strong momentum in our business, and
our results demonstrate that our multiyear Life Out Here strategy
is working,” said Hal Lawton, Tractor Supply’s President and Chief
Executive Officer.
“The combination of the strong cash generation of Tractor
Supply’s business and our Board’s confidence in our outlook
positions us to return capital to shareholders through the largest
dividend increase in our history and an expanded share repurchase
authorization. We believe we are well positioned to continue to
drive profitable growth and enhance value for our shareholders,”
Lawton continued.
Fourth Quarter 2021
Results
Net sales for the fourth quarter 2021 increased 15.3% to $3.32
billion from $2.88 billion in the fourth quarter of 2020.
Comparable store sales increased 12.7%, as compared to an increase
of 27.3% in the prior year's fourth quarter. Comparable store sales
for the fourth quarter 2021 were driven by comparable average
ticket growth and comparable average transaction count growth of
10.3% and 2.4%, respectively. The comparable store sales results
were broad-based and reflect robust demand for everyday
merchandise, including consumable, usable and edible (“C.U.E.”)
products. All geographic regions and major merchandising categories
of the Company had comparable store sales growth. In addition, the
Company’s e-commerce sales experienced strong double-digit growth
for the 38th consecutive quarter.
Gross profit increased 12.6% to $1.12 billion from $995.5
million in the prior year's fourth quarter, and gross margin
decreased 83 basis points to 33.8% from 34.6% in the prior year's
fourth quarter. The Company's price management actions, primarily
due to inflationary cost pressures, and other margin driving
initiatives were able to partially offset the impact from
significant product cost inflation pressures, higher transportation
costs, and to a lesser extent, less favorable product mix.
Selling, general and administrative ("SG&A") expenses,
including depreciation and amortization and asset impairment,
increased 2.0% to $827.5 million from $811.1 million in the prior
year's fourth quarter. As a percent of net sales, SG&A expenses
improved 325 basis points to 24.9% from 28.2% in the fourth quarter
of 2020. The fourth quarter of 2020 results include non-cash
impairment charges for the Petsense business of $74.1 million1. On
an adjusted basis, excluding the impact of the discrete impairment
charges in the fourth quarter of 2020, SG&A expenses increased
12.3%, or an improvement of 68 basis points as a percent of net
sales compared to the fourth quarter of 2020. On an adjusted basis,
the improvement in SG&A as a percent of net sales was primarily
attributable to leverage in occupancy and other fixed costs from
the increase in comparable store sales, lower COVID-19 pandemic
response costs and decreased incentive compensation. The leverage
from these SG&A expenses was partially offset by higher wage
rates, additional store labor hours and investments in the
Company’s strategic initiatives.
Operating income increased 58.9% to $293.1 million compared to
$184.5 million in the fourth quarter of 2020. On an adjusted basis,
operating income increased 13.4% compared to adjusted operating
income of $258.5 million1 in the fourth quarter of 2020, which
excluded the impact of the discrete impairment charges in the
fourth quarter of 2020.
The effective income tax rate was 22.7% compared to 23.0% in the
fourth quarter of 2020.
Net income increased 62.9% to $221.3 million from $135.9
million, and diluted EPS increased 67.8% to $1.93 from $1.15 in the
fourth quarter of 2020. Net income and diluted EPS for the fourth
quarter of 2021 increased 14.6% and 17.7%, respectively, compared
to adjusted fourth quarter of 2020 net income and adjusted diluted
EPS of $193.2 million1 and $1.641, respectively. Adjusted net
income and adjusted diluted EPS for fourth quarter of 2020 excluded
the after-tax impact of the discrete impairment charges in the
fourth quarter of 2020 of $57.3 million or $0.49 per diluted
share.
In the fourth quarter of 2021, the Company repurchased
approximately 0.9 million shares of its common stock for $200.9
million and paid quarterly cash dividends totaling $59.2 million,
returning $260.1 million of capital to shareholders in the fourth
quarter of 2021.
The Company opened 36 new Tractor Supply stores and one new
Petsense store in the fourth quarter of 2021.
Fiscal 2021 Results
Net sales for fiscal 2021 increased 19.9% to $12.73 billion from
$10.62 billion in fiscal 2020. Comparable store sales increased
16.9% versus a 23.1% increase in fiscal 2020.
Gross profit increased 19.0% to $4.48 billion from $3.76 billion
in fiscal 2020, and gross margin decreased 25 basis points to 35.2%
from 35.4% in fiscal 2020.
SG&A expenses, including depreciation and amortization and
asset impairment, increased 14.7% to $3.17 billion from $2.76
billion in fiscal 2020. As a percent of net sales, SG&A
expenses improved 113 basis points to 24.9% from 26.0% in fiscal
2020. On an adjusted basis excluding the impact of the discrete
impairment charges in the prior year, SG&A expenses increased
17.8%, an improvement of 43 basis points as a percent of net sales
compared to fiscal 2020.
Operating income increased 31.1% to $1.31 billion compared to
$996.9 million in fiscal 2020. On an adjusted basis, operating
income increased 22.0% compared to adjusted operating income of
$1.07 billion1 in fiscal 2020, which excluded the impact of the
discrete impairment charges in the prior year.
The effective income tax rate was 22.1% compared to 22.6% in
fiscal 2020.
Net income increased 33.1% to $997.1 million from $749.0
million, and diluted EPS increased 35.0% to $8.61 from $6.38 in
fiscal 2020. Net income and diluted EPS for fiscal 2021 increased
23.7% and 25.3%, respectively, compared to adjusted net income and
adjusted diluted EPS of $806.2 million1 and $6.871, respectively in
fiscal 2020. Adjusted net income and adjusted diluted EPS for
fiscal 2020 excluded the after-tax impact of the discrete
impairment charges in the fourth quarter of 2020 of $57.3 million,
or $0.49 per diluted share.
In fiscal 2021, the Company repurchased approximately 4.4
million shares of its common stock for $798.9 million. The Company
also paid quarterly cash dividends totaling $239.0 million year to
date, returning $1.04 billion of capital to shareholders.
During fiscal 2021, the Company opened 80 new Tractor Supply
stores and seven new Petsense stores and closed 11 Petsense
stores.
1See “Use and Reconciliation of Non-GAAP Financial Measures”
below.
Fiscal 2022 Financial
Outlook
The Company is providing its fiscal 2022 financial guidance
based on what it can reasonably predict at this time. Fiscal 2022
comprises 53 weeks, one additional week compared to fiscal 2021.
The benefit of the 53rd week is included in the fiscal 2022
guidance and is estimated to be worth approximately 1.5 percentage
points of net sales and approximately $0.15 contribution to diluted
EPS.
For fiscal 2022, the Company expects the following:
2022 (53-week year)
Net Sales
$13.6 billion - $13.8 billion
Comparable Store Sales
+3.0% - +4.5%
Operating Margin Rate
10.1% - 10.3%
Net Income
$1.04 billion - $1.08 billion
Earnings per Diluted Share
$9.20 - $9.50
Effective Tax Rate
22.6% - 23.1%
Capital Expenditures
$625 million - $675 million
Share Repurchases
$700 million - $800 million
Anticipated capital expenditures include plans in 2022 to open
approximately 75 to 80 new Tractor Supply stores, remodel more than
150 stores and transform the side lots in approximately 100
locations, along with opening 10 new Petsense stores. The Company
also anticipates the opening of its ninth distribution center in
the fall of 2022.
The Company continues to have a strong liquidity position with
current cash and cash equivalents of approximately $878 million and
no amounts drawn on its $500 million revolving credit facility as
of December 25, 2021.
The Company’s outlook for fiscal 2022 does not contemplate the
impact of the pending acquisition of Orscheln Farm and Home
previously announced on February 17, 2021. The acquisition is
conditioned on the receipt of regulatory clearance and satisfactory
completion of customary closing conditions.
Life Out Here Strategy and Updated
Long-Term Financial Targets
As part of today’s webcast video event, Tractor Supply’s
management will share progress on the Company’s Life Out Here
Strategy and outline new supporting initiatives. Key strategic
initiatives include store productivity growth through Project
Fusion and its Side Lot transformation program, improved in-store
experience through staffing model and service enhancements,
increased customer engagement through differentiated, personalized
mobile experiences, and improvements to supply chain capabilities
to deliver on the increased demand for C.U.E. merchandise.
In addition, Tractor Supply is updating its long-term financial
growth rate targets. These estimated growth rate targets represent
long-term annual targets over fiscal 2022 to fiscal 2026.
Performance in any individual year may be lower or higher than
these targets. Management will provide insights on these financial
targets at today’s event.
Long-Term Targets
Net Sales
+6% - +7%
Comparable Store Sales
+4% - +5%
Operating Margin Rate
10.1% - 10.6%
Earnings per Diluted Share
+8% - +11%
Quarterly Dividend
Tractor Supply’s Board of Directors declared a quarterly cash
dividend per share of the Company’s common stock of $0.92, which is
a 77% increase over the prior quarterly dividend. This will mark
the thirteenth consecutive year of a dividend increase for the
Company.
The dividend will be paid on March 8, 2022, to shareholders of
record of the Company’s common stock as of the close of business on
February 21, 2022. Tractor Supply’s Board of Directors must declare
each future quarterly dividend prior to payment. The declaration
and payment of future dividends, if any, will be determined by the
Board of Directors and will depend upon the earnings, financial
condition, and capital needs of Tractor Supply, along with other
factors which the Board of Directors deem relevant.
Share Repurchases
The Board also authorized a $2.0 billion increase to its
existing share repurchase program, bringing the total amount
authorized to date under the program to $6.5 billion. As of
December 25, 2021, the Company had repurchased 74.2 million shares
of common stock (adjusted to reflect the effect of stock splits)
for approximately $4.16 billion since the inception of its share
repurchase program in 2007.
Share repurchases may be made from time to time in the open
market or through privately negotiated transactions at management's
discretion, depending on market conditions and other factors, in
accordance with the Securities and Exchange Commission and other
applicable legal requirements. The authorization for the share
repurchase program may be terminated, increased or decreased by the
Company's Board of Directors at any time.
Webcast Video Event
Information
The Company will hold a webcast video event with a live Q&A
session today, Thursday, January 27, 2022 at 9:00 a.m. CT / 10:00
a.m. ET. The video event is anticipated to conclude by 12:00 p.m.
CT / 1:00 p.m. ET. In addition to discussing fourth quarter and
fiscal 2021 results, the management team will provide an updated
overview of the Company’s key initiatives to support the Company's
Life Out Here strategic plans. The event will be hosted by Hal
Lawton, President and Chief Executive Officer; Kurt Barton,
Executive Vice President, Chief Financial Officer; Christi
Korzekwa, Senior Vice President of Marketing; John Ordus, Executive
Vice President, Chief Stores Officer; Rob Mills, Executive Vice
President, Chief Technology, Digital Commerce and Strategy Officer;
Seth Estep, Executive Vice President, Chief Merchandising Officer;
and Colin Yankee, Executive Vice President, Chief Supply Chain
Officer. The event will be webcast live at
IR.TractorSupply.com.
Please allow extra time prior to the event 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
Company
Tractor Supply Company (NASDAQ: TSCO), the largest rural
lifestyle retailer in the United States, has been passionate about
serving its unique niche, targeting the needs of 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 for the Out Here lifestyle. With
more than 46,000 Team Members, the Company's physical store assets,
combined with its digital capabilities, 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 25, 2021, the Company operated 2,003 Tractor Supply stores
in 49 states, a consumer mobile app 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
25, 2021, the Company operated 178 Petsense stores in 23 states.
For more information on Petsense, visit www.Petsense.com.
Forward-Looking
Statements
As with any business, all phases of the Company’s operations are
subject to influences outside its control. This press release
contains certain forward-looking statements, including statements
regarding sales and earnings growth, long-term financial growth
rate targets, tax rates, share repurchases, new store growth, the
effects of the 53rd week in fiscal 2022, strategic initiatives,
estimated results of operations, including, but not limited to,
sales, comparable store sales, operating margins, net income and
EPS, and capital expenditures. Factors affecting future results
include, without limitation, the timing of normalized macroeconomic
conditions from the impacts of the COVID-19 pandemic, the Company’s
ability to predict the timing of normalized macroeconomic
conditions, the timing and amount of share repurchases, marketing,
merchandising and strategic initiatives and new store and
distribution center openings and expenses in future periods,
including incremental costs associated with COVID-19. All
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, including the
effects of COVID-19, the effects that “shelter in place” or other
similar mandated or suggested social distancing protocols could
have on the business, the costs of doing business as a retailer
during the COVID-19 pandemic, the effectiveness of the Company’s
responses to COVID-19 and customer response with respect to those
actions, the effects of COVID-19 on our suppliers, business
partners and supply chain, the timing and acceptance of new
products, the timing and mix of goods sold, weather conditions, the
seasonal nature of the business, transportation costs, including
but not limited to, carrier rates, fuel costs, and other pressures
across our supply chain, 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, the possibility that the acquisition of
Orscheln Farm and Home (the “Transaction”) will not close or that
the closing may be delayed, the possibility that we may be unable
to obtain regulatory clearance for the Transaction, the potential
for litigation or governmental investigations relating to the
Transaction, the occurrence of events, changes or circumstances
that could give rise to the termination of the definitive agreement
for the Transaction, the risk that we may be unable to successfully
integrate any acquired business or that we may not realize the
benefits expected from an acquisition, including the Transaction,
potential adverse reactions or changes to business or employee
relationships, including those resulting from the announcement of
an acquisition, including the Transaction, failure of an
acquisition to produce anticipated results, the ability to
successfully manage expenses, particularly in light of COVID-19,
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, timing 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, our ability to meet
our sustainability, stewardship, carbon emission and Diversity,
Equity & Inclusion related Environmental, Social and Governance
projections, goals and commitments, 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, except as required by
law.
(Financial tables to follow)
Condensed Consolidated Statements of
Income
(Unaudited)
(in thousands, except per
share amounts)
Fourth Quarter Ended
Year Ended
December 25,
2021
December 26,
2020
December 25,
2021
December 26,
2020
% of
% of
% of
% of
Net
Net
Net
Net
Sales
Sales
Sales
Sales
Net sales
$ 3,319,284
100.00%
$ 2,878,265
100.00%
$ 12,731,105
100.00%
$ 10,620,352
100.00%
Cost of merchandise sold
2,198,706
66.24
1,882,735
65.41
8,253,952
64.83
6,858,803
64.58
Gross profit
1,120,578
33.76
995,530
34.59
4,477,153
35.17
3,761,549
35.42
Selling, general and administrative
expenses
752,097
22.66
683,600
23.75
2,900,297
22.78
2,478,524
23.34
Depreciation and amortization
75,427
2.27
58,490
2.03
270,158
2.12
217,124
2.04
Impairment of goodwill and other
intangible assets
—
—
68,973
2.40
—
—
68,973
0.65
Operating income
293,054
8.83
184,467
6.41
1,306,698
10.26
996,928
9.39
Interest expense, net
6,542
0.20
8,086
0.28
26,610
0.21
28,781
0.27
Income before income taxes
286,512
8.63
176,381
6.13
1,280,088
10.05
968,147
9.12
Income tax expense
65,174
1.96
40,488
1.41
282,974
2.22
219,189
2.07
Net income
$ 221,338
6.67%
$ 135,893
4.72%
$ 997,114
7.83%
$ 748,958
7.05%
Net income per share:
Basic
$ 1.95
$ 1.17
$ 8.69
$ 6.44
Diluted
$ 1.93
$ 1.15
$ 8.61
$ 6.38
Weighted average shares
outstanding:
Basic
113,668
116,492
114,794
116,370
Diluted
114,787
117,757
115,824
117,436
Dividends declared per common share
outstanding
$ 0.52
$ 0.40
$ 2.08
$ 1.50
Condensed Consolidated Statements of Comprehensive
Income
(Unaudited)
(in thousands)
Fourth Quarter Ended
Year Ended
December 25,
2021
December 26,
2020
December 25,
2021
December 26,
2020
Net income
$ 221,338
$ 135,893
$ 997,114
$ 748,958
Other comprehensive income/(loss):
Change in fair value of interest rate
swaps, net of taxes
1,937
2,624
4,588
(3,442)
Total other comprehensive
income/(loss)
1,937
2,624
4,588
(3,442)
Total comprehensive income
$ 223,275
$ 138,517
$ 1,001,702
$ 745,516
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
December 25,
2021
December 26,
2020
ASSETS
Current assets:
Cash and cash equivalents
$ 878,030
$ 1,341,756
Inventories
2,191,192
1,783,270
Prepaid expenses and other current
assets
164,118
133,659
Income taxes receivable
17,100
—
Total current assets
3,250,440
3,258,685
Property and equipment, net
1,617,806
1,248,960
Operating lease right-of-use assets
2,785,858
2,423,881
Goodwill and other intangible assets
55,520
55,520
Deferred income taxes
2,437
31,586
Other assets
55,406
30,484
Total assets
$ 7,767,467
$ 7,049,116
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$ 1,155,630
$ 976,096
Accrued employee compensation
109,618
119,701
Other accrued expenses
474,412
324,813
Current portion of finance lease
liabilities
3,897
4,554
Current portion of operating lease
liabilities
321,285
298,696
Income taxes payable
—
19,938
Total current liabilities
2,064,842
1,743,798
Long-term debt
986,382
984,324
Finance lease liabilities, less current
portion
32,848
33,096
Operating lease liabilities, less current
portion
2,574,882
2,220,904
Other long-term liabilities
105,848
143,154
Total liabilities
5,764,802
5,125,276
Stockholders’ equity:
Common stock
1,411
1,401
Additional paid-in capital
1,210,512
1,095,500
Treasury stock
(4,155,846)
(3,356,953)
Accumulated other comprehensive
income/(loss)
1,345
(3,243)
Retained earnings
4,945,243
4,187,135
Total stockholders’ equity
2,002,665
1,923,840
Total liabilities and stockholders’
equity
$ 7,767,467
$ 7,049,116
Condensed Consolidated Statements of Cash
Flows
(Unaudited)
(in thousands)
Year Ended
December 25,
2021
December 26,
2020
Cash flows from operating
activities:
Net income
$ 997,114
$ 748,958
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
270,158
217,124
Impairment of goodwill and other
intangible assets
—
68,973
Impairment of other long-lived assets
—
5,078
Loss/(gain) on disposition of property and
equipment
4,045
(1,157)
Share-based compensation expense
47,649
37,273
Deferred income taxes
29,149
(31,739)
Change in assets and liabilities:
Inventories
(407,922)
(180,489)
Prepaid expenses and other current
assets
(30,459)
(32,794)
Accounts payable
179,534
333,060
Accrued employee compensation
(10,083)
79,946
Other accrued expenses
137,833
72,405
Income taxes
(37,038)
13,954
Other
(41,260)
63,923
Net cash provided by operating
activities
1,138,720
1,394,515
Cash flows from investing
activities:
Capital expenditures
(628,431)
(294,002)
Proceeds from sale of property and
equipment
1,091
1,792
Net cash used in investing activities
(627,340)
(292,210)
Cash flows from financing
activities:
Borrowings under debt facilities
—
2,009,000
Repayments under debt facilities
—
(1,406,500)
Debt discounts and issuance costs
—
(17,048)
Principal payments under finance lease
liabilities
(4,580)
(4,170)
Repurchase of shares to satisfy tax
obligations
(14,876)
(7,799)
Repurchase of common stock
(798,893)
(342,957)
Net proceeds from issuance of common
stock
82,249
99,340
Cash dividends paid to stockholders
(239,006)
(174,656)
Net cash (used in)/provided by financing
activities
(975,106)
155,210
Net (decrease)/increase in cash and
cash equivalents
(463,726)
1,257,515
Cash and cash equivalents at beginning of
period
1,341,756
84,241
Cash and cash equivalents at end of
period
$ 878,030
$ 1,341,756
Supplemental disclosures of cash flow
information:
Cash paid during the period for:
Interest
$ 23,601
$ 24,540
Income taxes
291,665
235,319
Supplemental disclosures of non-cash
activities:
Non-cash accruals for property and
equipment
$ 24,408
$ 12,642
Increase of operating lease assets and
liabilities from new or modified leases
678,092
524,141
Increase of finance lease assets and
liabilities from new or modified leases
3,675
7,395
Selected
Financial and Operating Information
(Unaudited)
Fourth Quarter Ended
Year Ended
December 25,
2021
December 26,
2020
December 25,
2021
December 26,
2020
Sales Information:
Comparable store sales increase
12.7 %
27.3 %
16.9 %
23.1 %
New store sales (% of total sales)
2.1 %
3.2 %
2.5 %
3.3 %
Average transaction value
$58.40
$53.07
$56.62
$51.90
Comparable store average transaction value
increase (a)
10.3 %
13.0 %
9.8 %
12.2 %
Comparable store average transaction count
increase
2.4 %
14.3 %
7.1 %
10.9 %
Total selling square footage (000's)
33,485
32,139
33,485
32,139
Exclusive brands (% of total sales)
27.8 %
29.7 %
28.7 %
29.2 %
Imports (% of total sales)
14.2 %
14.4 %
12.2 %
11.5 %
Store Count Information:
Tractor Supply
Beginning of period
1,967
1,904
1,923
1,844
New stores opened
36
19
80
80
Stores closed
—
—
—
(1)
End of period
2,003
1,923
2,003
1,923
Petsense
Beginning of period
177
183
182
180
New stores opened
1
3
7
9
Stores closed
—
(4)
(11)
(7)
End of period
178
182
178
182
Consolidated end of period
2,181
2,105
2,181
2,105
Pre-opening costs (000’s)
$4,142
$1,021
$10,352
$8,602
Balance Sheet Information:
Average inventory per store (000’s)
(b)
$917.6
$793.7
$917.6
$793.7
Inventory turns (annualized)
4.07
4.09
4.18
3.92
Share repurchase program:
Cost (000’s)
$200,920
$79,738
$798,893
$342,957
Average purchase price per share
$222.77
$135.91
$183.07
$99.72
Capital Expenditures (in
millions):
Existing stores
$113.7
$43.1
$326.9
$73.7
Information technology
47.8
60.4
124.8
133.0
New and relocated stores and stores not
yet opened
26.5
15.0
73.0
58.8
Distribution center capacity and
improvements
56.4
11.8
93.3
23.4
Corporate and other
1.6
2.4
10.4
5.1
Total
$246.0
$132.7
$628.4
$294.0
(a) Comparable store average transaction
value increase includes the impact of transaction value growth
achieved on the current period growth in transaction count.
(b) Assumes average inventory cost,
excluding inventory in transit.
Use and Reconciliation of Non-GAAP
Financial Measures
Tractor 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)
FOURTH QUARTER ENDED
December 26,
2020
Impairment (a)
December 26,
2020
(As Reported)
(Adjustment)
(As Adjusted)
% of
% of
% of
Net
Net
Net
Sales
Sales
Sales
SG&A (including depreciation and
amortization and asset impairment)
$ 811,063
28.18 %
$ (74,051)
(2.57) %
$ 737,012
25.61 %
Operating income
$ 184,467
6.41 %
$ 74,051
2.57 %
$ 258,518
8.98 %
Income before income taxes
$ 176,381
6.13 %
$ 74,051
2.57 %
$ 250,432
8.70 %
Income tax expense
$ 40,488
1.41 %
$ 16,765
0.58 %
$ 57,253
1.99 %
Net income
$ 135,893
4.72 %
$ 57,286
1.99 %
$ 193,179
6.71 %
Diluted net income per share
$ 1.15
$ 0.49
$ 1.64
YEAR ENDED
December 26,
2020
Impairment (a)
December 26,
2020
(As Reported)
(Adjustment)
(As Adjusted)
% of
% of
% of
Net
Net
Net
Sales
Sales
Sales
SG&A (including depreciation and
amortization and asset impairment)
$ 2,764,621
26.03 %
$ (74,051)
(0.70) %
$ 2,690,570
25.33 %
Operating income
$ 996,928
9.39 %
$ 74,051
0.70 %
$ 1,070,979
10.09 %
Income before income taxes
$ 968,147
9.12 %
$ 74,051
0.70 %
$ 1,042,198
9.81 %
Income tax expense
$ 219,189
2.07 %
$ 16,765
0.16 %
$ 235,954
2.22 %
Net income
$ 748,958
7.05 %
$ 57,286
0.54 %
$ 806,244
7.59 %
Diluted net income per share
$ 6.38
$ 0.49
$ 6.87
(a) Comprised of $68.97 million of
impairment of goodwill and other intangible assets along with $5.08
million of impairment of other long-lived assets related to the
Petsense reporting unit
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220126006058/en/
Tractor Supply Company Mary Winn Pilkington (615)
440-4212 Marianne Denenberg (615) 440-4345
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