Provides Financial Guidance for Fiscal Year
2021
Dollar General Corporation (NYSE: DG) today reported financial
results for its fiscal year 2020 fourth quarter (13 weeks) and
fiscal year (52 weeks) ended January 29, 2021.
- Fourth Quarter Net Sales Increased 17.6%; Fiscal Year Net Sales
Increased 21.6%
- Fourth Quarter Same-Store Sales Increased 12.7%; Fiscal Year
Same-Store Sales Increased 16.3%
- Fourth Quarter Operating Profit Increased 21.0% to $872.2
Million; Fiscal Year Operating Profit Increased 54.4% to $3.6
Billion
- Fourth Quarter Diluted Earnings Per Share (“EPS”) Increased
24.8% to $2.62; Fiscal Year Diluted EPS Increased 59.9% to
$10.62
- Annual Cash Flows From Operations Increased 73.2% to $3.9
Billion
- Board of Directors Increases Share Repurchase Program
Authorization; Declares Quarterly Cash Dividend of $0.42 per share,
an Increase of 16.7% Compared to Prior Quarter
“We are pleased with our strong finish to fiscal 2020, and I
thank all of our associates for their extraordinary efforts over
the past year to support our customers, our communities and each
other,” said Todd Vasos, Dollar General’s chief executive officer.
“Despite a challenging operating environment, our team members have
remained steadfast in their dedication to fulfilling our mission of
Serving Others, resulting in exceptional fourth-quarter and
full-year financial results.”
“Our full-year results were highlighted by significant growth on
both the top and bottom lines, including a net sales increase of
28.1% in our non-consumables business. In addition, we completed
2,780 real estate projects, including the opening of our 17,000th
store and launch of our new pOpshelf concept, while delivering our
31st consecutive year of same-store sales growth. We continue to
operate from a position of strength, and are excited about our
plans for 2021 to continue delivering value and convenience for our
customers, along with long-term sustainable growth and value for
our shareholders.”
Fourth Quarter 2020
Highlights Net sales increased 17.6% to $8.4 billion in
the fourth quarter of 2020 compared to $7.2 billion in the fourth
quarter of 2019. The net sales increase included positive sales
contributions from new stores and growth in same-store sales,
modestly offset by the impact of store closures. Same-store sales
increased 12.7% compared to the fourth quarter of 2019, driven by
an increase in average transaction amount, partially offset by a
decline in customer traffic. Same-store sales increased in each of
the consumables, seasonal, home products and apparel categories,
with the largest percentage increase in the home products category.
The Company believes consumer behavior driven by COVID-19 had a
significant positive effect on net sales and same-store sales.
Gross profit as a percentage of net sales was 32.5% in the
fourth quarter of 2020 compared to 31.8% in the fourth quarter of
2019, an increase of 77 basis points. This gross profit rate
increase was primarily attributable to a reduction in markdowns as
a percentage of net sales; higher initial markups on inventory
purchases; a greater proportion of sales coming from the
non-consumables product categories, which generally have a higher
gross profit rate than the consumables product category; and a
reduction in inventory shrink as a percentage of net sales. These
factors were partially offset by increased transportation and
distribution costs, which were impacted by increased volume, some
of which is attributable to the COVID-19 pandemic; higher
transportation rates; and discretionary employee bonus expense. As
a result of the significant increase in sales, the Company believes
consumer behavior driven by COVID-19 also had a significant
positive effect on gross profit dollars.
Selling, general and administrative expenses (“SG&A”) as a
percentage of net sales were 22.2% in the fourth quarter of 2020
compared to 21.7% in the fourth quarter of 2019, an increase of 48
basis points. The increase was primarily driven by incremental
costs related to COVID-19, including appreciation bonuses paid to
frontline employees and other health and safety related expenses.
Incentive compensation and hurricane-related expenses also
contributed to the fourth quarter increase. These items were
partially offset by certain expenses that were lower as a
percentage of sales this quarter, including occupancy costs, retail
labor, and depreciation and amortization.
Operating profit for the fourth quarter of 2020 increased 21.0%
to $872.2 million compared to $720.9 million in the fourth quarter
of 2019. The fourth quarter of 2020 included approximately $96
million of incremental investments the Company made in response to
the COVID-19 pandemic. These investments included approximately $69
million in appreciation bonuses for eligible frontline employees,
and measures taken to further protect the health and safety of
employees and customers.
The effective income tax rate in the fourth quarter of 2020 was
22.7% compared to 23.0% in the fourth quarter of 2019. This lower
effective income tax rate was primarily due to increased tax
benefits associated with federal income tax credits compared to the
2019 period.
The Company reported net income of $642.7 million for the fourth
quarter of 2020, an increase of 20.0% compared to $535.4 million in
the fourth quarter of 2019. Diluted EPS increased 24.8% to $2.62
for the fourth quarter of 2020 compared to diluted EPS of $2.10 in
the fourth quarter of 2019.
Fiscal Year 2020 Highlights
Fiscal year 2020 net sales increased 21.6% to $33.7 billion
compared to $27.8 billion in fiscal year 2019. This net sales
increase included positive sales contributions from new stores and
growth in same-store sales, modestly offset by the impact of store
closures. Same-store sales increased 16.3% compared to fiscal year
2019, driven by an increase in average transaction amount,
partially offset by a decline in customer traffic. Same-store sales
in the 2020 period included growth in the consumables, seasonal,
home products and apparel categories, with the largest percentage
increase in the home products category. The Company believes
consumer behavior driven by COVID-19 had a significant positive
effect on net sales and same-store sales.
Gross profit as a percentage of net sales was 31.8% in fiscal
year 2020, compared to 30.6% in fiscal year 2019, an increase of
117 basis points. The gross profit rate increase in the 2020 period
was primarily attributable to a reduction in markdowns as a
percentage of net sales; higher initial markups on inventory
purchases; a greater proportion of sales coming from the
non-consumables product categories, which generally have a higher
gross profit rate than the consumables product category; and a
reduction in inventory shrink as a percentage of net sales. These
factors were partially offset by increased distribution and
transportation costs, which were impacted by increased volume, some
of which is attributable to the COVID-19 pandemic, and
discretionary employee bonus expense. As a result of the
significant increase in sales, the Company believes consumer
behavior driven by COVID-19 also had a significant positive effect
on gross profit dollars.
SG&A as a percentage of net sales was 21.2% in fiscal year
2020 compared to 22.3% in fiscal year 2019, a decrease of 106 basis
points. Although the Company incurred certain incremental costs
related to COVID-19, including employee appreciation bonuses and
other health and safety related expenses, they were more than
offset by the significant increase in net sales during the fiscal
year as discussed above. Expenses that were lower as a percentage
of net sales in fiscal year 2020 include retail labor, occupancy
costs, utilities, and depreciation and amortization. These items
were partially offset by increased incentive compensation expenses
and hurricane-related expenses. Fiscal year 2019 included expenses
of $31.0 million relating to significant legal matters (the
“Significant Legal Expenses”)1. SG&A in fiscal year 2020
decreased 95 basis points as a percentage of sales compared to
Adjusted SG&A of 22.2%1, which excluded the impact of the
Significant Legal Expenses, in fiscal year 2019.
Operating profit for fiscal year 2020 grew 54.4% to $3.6 billion
compared to $2.3 billion in fiscal year 2019. Operating profit for
fiscal year 2020 increased 52.4% compared to Adjusted operating
profit of $2.3 billion1, which excluded the impact of the
Significant Legal Expenses, for fiscal year 2019. Fiscal year 2020
included approximately $248 million of incremental investments the
Company made in response to the COVID-19 pandemic. These
investments included approximately $167 million in appreciation
bonuses for eligible frontline employees, and measures taken to
further protect the health and safety of employees and
customers.
The effective income tax rate in fiscal year 2020 was 22.0%
compared to 22.2% in fiscal year 2019. This lower effective income
tax rate was primarily due to increased tax benefits associated
with share-based compensation and a greater income tax rate benefit
from state taxes, partially offset by a lower income tax rate
benefit from federal income tax credits due to higher pre-tax
earnings in fiscal year 2020 compared to fiscal year 2019.
The Company reported net income of $2.7 billion for fiscal year
2020, an increase of 55.0% compared to $1.7 billion in fiscal year
2019. Diluted EPS increased 59.9% to $10.62 for fiscal year 2020
compared to diluted EPS of $6.64 in fiscal year 2019. Net income
and diluted EPS for fiscal year 2020 increased 52.9% and 57.8%,
respectively, compared to Adjusted net income and Adjusted diluted
EPS of $1.7 billion1 and $6.731, respectively. Adjusted net income
and Adjusted diluted EPS for fiscal year 2019 excluded the
after-tax impact of the Significant Legal Expenses of approximately
$24.1 million, or $0.09 per diluted share.
1 See “Non-GAAP Disclosure” herein.
Merchandise Inventories As
of January 29, 2021, total merchandise inventories, at cost, were
$5.2 billion compared to $4.7 billion as of January 31, 2020, an
increase of 6.3% on a per-store basis.
Capital Expenditures Total
additions to property and equipment in fiscal year 2020 were $1.0
billion, including approximately: $447 million for improvements,
upgrades, remodels and relocations of existing stores; $271 million
for distribution and transportation related projects; $250 million
for store facilities, primarily for leasehold improvements,
fixtures and equipment in new stores; and $50 million for
information systems upgrades and technology-related projects.
During fiscal year 2020, the Company opened 1,000 new stores,
remodeled 1,670 stores and relocated 110 stores.
Share Repurchases In fiscal
year 2020, the Company repurchased $2.5 billion of its common
stock, or 12.3 million shares, at an average price of $200.57 per
share, under its share repurchase program. The total remaining
authorization for future repurchases was $679 million at the end of
fiscal year 2020. On March 17, 2021, the Company’s Board of
Directors increased the authorization under the share repurchase
program by $2.0 billion. Under the authorization, repurchases may
be made from time to time in open market transactions, including
pursuant to trading plans adopted in accordance with Rule 10b5-1 of
the Securities Exchange Act of 1934, as amended, or in privately
negotiated transactions. The timing, manner and number of shares
repurchased will depend on a variety of factors, including price,
market conditions, compliance with the covenants and restrictions
under the Company’s debt agreements and other factors. The
authorization has no expiration date.
Dividend On March 16, 2021,
the Company’s Board of Directors declared a quarterly cash dividend
of $0.42 per share on the Company’s common stock, payable on or
before April 20, 2021 to shareholders of record on April 6, 2021.
While the Board of Directors intends to continue regular cash
dividends, the declaration and amount of future dividends are
subject to the sole discretion of the Board and will depend upon,
among other things, the Company’s results of operations, cash
requirements, financial condition, contractual restrictions, and
other factors the Board may deem relevant in its sole
discretion.
Fiscal Year 2021 Financial Guidance and
Store Growth Outlook As noted above, the Company
realized a significant sales benefit in the 2020 fiscal year as a
result of COVID-19. Significant uncertainty continues to exist
regarding the severity and duration of the COVID-19 pandemic,
including its impact on the U.S. economy, consumer behavior and the
Company’s business.
Given this uncertainty, it is difficult to predict specific
outcomes. In addition, these outcomes could be impacted by several
variables, which include, but are not limited to, economic stimulus
payments, economic recovery, employment levels, COVID-19 vaccine
status, and the ongoing impact of the COVID-19 pandemic.
For the fiscal year ending January 28, 2022 (“fiscal year
2021”), the Company currently expects:
- Net sales in the range of a 2% decline to flat
- Same-store sales decline of 4% to 6%, which reflects growth of
approximately 10% to 12% on a two-year stack basis2
- Diluted EPS in the range of $8.80 to $9.50, which reflects a
compound annual growth rate between 15% and 20% (or between 14% and
19% on an adjusted basis) over a two-year period3
- This Diluted EPS guidance assumes an effective tax rate in the
range of 22% to 23%
- Share repurchases of approximately $1.8 billion
- Capital expenditures, including those related to investments in
the Company’s strategic initiatives, in the range of $1.05 billion
to $1.15 billion
The diluted EPS guidance outlined above includes the anticipated
impact of ongoing expenses related to COVID-19 health and safety
measures and continued investment in the Company’s strategic
initiatives.
The Company is also reiterating its plans to execute 2,900 real
estate projects in fiscal year 2021, including 1,050 new store
openings, 1,750 store remodels, and 100 store relocations.
“We believe the fundamentals of the business are strong, and we
are confident in the team’s ability to execute on our robust plans
for 2021,” said John Garratt, Dollar General’s chief financial
officer. “While we remain cautious in our 2021 sales outlook given
the significant uncertainty that still exists, our guidance
reflects low-double-digit same-store sales growth on a two-year
stack basis2, which we believe speaks to the underlying strength of
the business. In addition, our diluted EPS guidance reflects a
compound annual growth rate over a two-year period3 that is well
above our long-term goal of delivering at least 10% annual EPS
growth on an adjusted basis.”
“We are executing well against our operating priorities and
strategic initiatives, which we believe positions us well to drive
long-term sustainable growth. As always, we continue to be
disciplined in how we manage expenses and capital with the goal of
delivering consistent, strong financial performance, while
strategically investing for the long term.”
Given the wide range of potential outcomes and ongoing
uncertainty around specific financial results, the Company is also
providing an update on same-store sales performance in fiscal year
2021. From January 30, 2021 through February 26, 2021 (the
Company’s first accounting period of fiscal year 2021), same-store
sales increased approximately 5.7% as compared to the first
accounting period of fiscal year 2020, despite approximately 8,400
lost store operating days as a result of closures due to winter
weather across the country. In addition, from February 27, 2021
through March 16, 2021, same-store sales decreased approximately
16% as compared to the comparable timeframe in the 2020 fiscal
year.
2 Same-store sales on a two-year stack basis represents the sum
of actual 2020 same-store sales and the corresponding low and high
ends of the 2021 guidance range. 3 Two-year compound annual growth
rates utilize 2019 diluted EPS and 2019 Adjusted diluted EPS as the
base.
Conference Call Information
The Company will hold a conference call on March 18, 2021 at 9:00
a.m. CT/10:00 a.m. ET, hosted by Todd Vasos, chief executive
officer, Jeff Owen, chief operating officer, and John Garratt,
chief financial officer. To participate via telephone, please call
(877) 407-0890 at least 10 minutes before the conference call is
scheduled to begin. The conference ID is 13715128. There will also
be a live webcast of the call available at
https://investor.dollargeneral.com under “News & Events, Events
& Presentations.” A replay of the conference call will be
available through April 15, 2021, and will be accessible via
webcast replay or by calling (877) 660-6853. The conference ID for
the telephonic replay is 13715128.
Non-GAAP Disclosure Adjusted
SG&A, Adjusted operating profit, Adjusted net income and
Adjusted diluted EPS, and their respective growth metrics, for the
fiscal year ended January 31, 2020 have not been derived in
accordance with U.S. GAAP, but rather exclude the impact of the
Significant Legal Expenses, which are associated with wage and hour
and consumer/product certified class action litigation and related
matters. Due to the nature, infrequency, and financial magnitude of
such matters, the Company believes these non-GAAP financial
measures provide useful information to investors in assessing the
Company’s operating performance as these measures provide an
additional relevant comparison of the Company’s operating
performance across periods. Reconciliations of these non-GAAP
measures to the most directly comparable measures calculated in
accordance with GAAP are provided in the accompanying
schedules.
The non-GAAP measures discussed above are not measures of
financial performance or condition, liquidity or profitability in
accordance with GAAP, and should not be considered as alternatives
to SG&A, operating profit, net income, diluted EPS or any other
measure derived in accordance with GAAP. These non-GAAP measures
have limitations as analytical tools and should not be considered
in isolation or as substitutes for analysis of the Company’s
financial results as reported in accordance with GAAP. Because not
all companies use identical calculations, these presentations may
not be comparable to other similarly titled measures of other
companies.
Forward-Looking Statements
This press release contains forward-looking information within the
meaning of the federal securities laws, including the Private
Securities Litigation Reform Act. Forward-looking statements
include those regarding the Company’s outlook, strategy,
initiatives, plans and intentions including, but not limited to,
statements made within the quotations of Mr. Vasos and Mr. Garratt,
and in the sections entitled “Share Repurchases,” “Dividend,” and
“Fiscal Year 2021 Financial Guidance and Store Growth Outlook.” A
reader can identify forward-looking statements because they are not
limited to historical fact or they use words such as “outlook,”
“may,” “will,” “should,” “could,” “would,” “can,” “believe,”
“anticipate,” “plan,” “expect,” “estimate,” “forecast,” “predict,”
“position,” “assume,” “opportunities,” “intend,” “continue,”
”future,” “ongoing,” “potential,” “long-term,” ”guidance,” “goal,”
“outcome,” “uncertainty,” “look to,” “looking ahead,” “subject to,”
“committed,” “focus on,” or “likely to,” and similar expressions
that concern the Company’s strategy, plans, intentions or beliefs
about future occurrences or results. These matters involve risks,
uncertainties and other factors that may cause the actual
performance of the Company to differ materially from that which the
Company expected. Many of these statements are derived from the
Company’s operating budgets and forecasts as of the date of this
release, which are based on many detailed assumptions that the
Company believes are reasonable. However, it is very difficult to
predict the effect of known factors on the Company’s future
results, and the Company cannot anticipate all factors that could
affect future results that may be important to an investor. All
forward-looking information should be evaluated in the context of
these risks, uncertainties and other factors. Important factors
that could cause actual results to differ materially from the
expectations expressed in or implied by such forward-looking
statements include, but are not limited to:
- risks related to the COVID-19 pandemic, including but not
limited to, the effects on the Company’s supply chain, distribution
network, store and distribution center growth, store and
distribution center closures, transportation and distribution
costs, SG&A expenses, share repurchase activity, and
cybersecurity risk profile, as well as the effects on domestic and
foreign economies and customers’ spending patterns;
- economic factors, including but not limited to employment
levels; inflation; pandemics; higher fuel, energy, healthcare and
housing costs, interest rates, consumer debt levels, and tax rates;
tax law changes that negatively affect credits and refunds; lack of
available credit; decreases in, or elimination of, government
subsidies such as unemployment and food/nutrition assistance
programs; commodity rates; transportation, lease and insurance
costs; wage rates (including the heightened possibility of
increased federal, state and/or local minimum wage rates); foreign
exchange rate fluctuations; measures that create barriers to or
increase the costs of international trade (including increased
import duties or tariffs); and changes in laws and regulations and
their effect on, as applicable, customer spending and disposable
income, the Company’s ability to execute its strategies and
initiatives, the Company’s cost of goods sold, the Company’s
SG&A expenses (including real estate costs), and the Company’s
sales and profitability;
- failure to achieve or sustain the Company’s strategies and
initiatives, including those relating to merchandising, real estate
and new store development, store formats and concepts, digital,
shrink, sourcing, private brand, inventory management, supply
chain, store operations, expense reduction, technology, the
Company’s Fresh initiative and the Company’s Fast Track
initiative;
- competitive pressures and changes in the competitive
environment and the geographic and product markets where the
Company operates, including, but not limited to, pricing,
promotional activity, expanded availability of mobile, web-based
and other digital technologies, and alliances or other business
combinations;
- failure to timely and cost-effectively execute the Company’s
real estate projects or to anticipate or successfully address the
challenges imposed by the Company’s expansion, including into new
states or urban areas;
- levels of inventory shrinkage;
- failure to successfully manage inventory balances;
- failure to maintain the security of the Company’s business,
customer, employee or vendor information or to comply with privacy
laws;
- damage or interruption to the Company’s information systems as
a result of external factors, staffing shortages or challenges in
maintaining or updating the Company’s existing technology or
developing or implementing new technology;
- a significant disruption to the Company’s distribution network,
the capacity of the Company’s distribution centers or the timely
receipt of inventory, or delays in constructing or opening new
distribution centers;
- risks and challenges associated with sourcing merchandise from
suppliers, including, but not limited to, those related to
international trade;
- natural disasters, unusual weather conditions (whether or not
caused by climate change), pandemic outbreaks or other health
crises, political or civil unrest, acts of violence or terrorism,
and disruptive global political events;
- product liability, product recall or other product safety or
labeling claims;
- incurrence of material uninsured losses, excessive insurance
costs or accident costs;
- failure to attract, develop and retain qualified employees
while controlling labor costs (including the heightened possibility
of increased federal, state and/or local minimum wage rates) and
other labor issues;
- loss of key personnel or inability to hire additional qualified
personnel;
- risks associated with the Company’s private brands, including,
but not limited to, the Company’s level of success in improving
their gross profit rate;
- seasonality of the Company’s business;
- the impact of changes in or noncompliance with governmental
regulations and requirements (including, but not limited to, those
dealing with the sale of products, including without limitation,
product and food safety, marketing or labeling; information
security and privacy; labor and employment; employee wages and
benefits (including the heightened possibility of increased
federal, state and/or local minimum wage rates); health and safety;
imports and customs; and environmental compliance, as well as tax
laws (including those related to the corporate tax rate), the
interpretation of existing tax laws, or the Company’s failure to
sustain its reporting positions negatively affecting the Company’s
tax rate) and developments in or outcomes of private actions, class
actions, multi-district litigation, arbitrations, derivative
actions, administrative proceedings, regulatory actions or other
litigation;
- new accounting guidance or changes in the interpretation or
application of existing guidance;
- deterioration in market conditions, including market
disruptions, limited liquidity and interest rate fluctuations, or
changes in the Company’s credit profile;
- the factors disclosed under “Risk Factors” in the Company’s
most recent Annual Report on Form 10-K and any subsequently filed
Quarterly Reports on Form 10-Q; and
- such other factors as may be discussed or identified in this
press release.
All forward-looking statements are qualified in their entirety
by these and other cautionary statements that the Company makes
from time to time in its SEC filings and public communications. The
Company cannot assure the reader that it will realize the results
or developments the Company anticipates or, even if substantially
realized, that they will result in the consequences or affect the
Company or its operations in the way the Company expects.
Forward-looking statements speak only as of the date made. The
Company undertakes no obligation, and specifically disclaims any
duty, to update or revise any forward-looking statements to reflect
events or circumstances arising after the date on which they were
made, except as otherwise required by law. As a result of these
risks and uncertainties, readers are cautioned not to place undue
reliance on any forward-looking statements included herein or that
may be made elsewhere from time to time by, or on behalf of, the
Company.
Investors should also be aware that while the Company does, from
time to time, communicate with securities analysts and others, it
is against the Company’s policy to disclose to them any material,
nonpublic information or other confidential commercial information.
Accordingly, shareholders should not assume that the Company agrees
with any statement or report issued by any securities analyst
regardless of the content of the statement or report. Furthermore,
the Company has a policy against confirming projections, forecasts
or opinions issued by others. Thus, to the extent that reports
issued by securities analysts contain any projections, forecasts or
opinions, such reports are not the Company’s responsibility.
About Dollar General
Corporation Dollar General Corporation has been
delivering value to shoppers for more than 80 years. Dollar General
helps shoppers Save time. Save money. Every day.® by offering
products that are frequently used and replenished, such as food,
snacks, health and beauty aids, cleaning supplies, basic apparel,
housewares and seasonal items at everyday low prices in convenient
neighborhood locations. Dollar General operated 17,177 stores in 46
states as of January 29, 2021. In addition to high-quality private
brands, Dollar General sells products from America's most-trusted
manufacturers such as Clorox, Energizer, Procter & Gamble,
Hanes, Coca-Cola, Mars, Unilever, Nestle, Kimberly-Clark,
Kellogg's, General Mills, and PepsiCo. Learn more about Dollar
General at www.dollargeneral.com.
DOLLAR GENERAL CORPORATION AND
SUBSIDIARIES
Consolidated Balance
Sheets
(In thousands)
(Unaudited)
January 29
January 31
2021
2020
ASSETS Current assets: Cash and cash equivalents
$
1,376,577
$
240,320
Merchandise inventories
5,247,477
4,676,848
Income taxes receivable
90,760
76,537
Prepaid expenses and other current assets
199,405
184,163
Total current assets
6,914,219
5,177,868
Net property and equipment
3,899,997
3,278,359
Operating lease assets
9,473,330
8,796,183
Goodwill
4,338,589
4,338,589
Other intangible assets, net
1,199,870
1,200,006
Other assets, net
36,619
34,079
Total assets
$
25,862,624
$
22,825,084
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities:
Current portion of operating lease liabilities
$
1,074,079
$
964,805
Accounts payable
3,614,089
2,860,682
Accrued expenses and other
1,006,552
709,156
Income taxes payable
16,063
8,362
Total current liabilities
5,710,783
4,543,005
Long-term obligations
4,130,975
2,911,993
Long-term operating lease liabilities
8,385,388
7,819,683
Deferred income taxes
710,549
675,227
Other liabilities
263,691
172,676
Total liabilities
19,201,386
16,122,584
Commitments and contingencies Shareholders' equity:
Preferred stock
-
-
Common stock
210,687
220,444
Additional paid-in capital
3,446,612
3,322,531
Retained earnings
3,006,102
3,162,660
Accumulated other comprehensive loss
(2,163
)
(3,135
)
Total shareholders' equity
6,661,238
6,702,500
Total liabilities and shareholders' equity
$
25,862,624
$
22,825,084
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income (In thousands, except
per share amounts) (Unaudited)
For the Quarter Ended
January 29
% of Net
January 31
% of Net
2021
Sales
2020
Sales
Net sales
$
8,414,524
100.00
%
$
7,157,642
100.00
%
Cost of goods sold
5,677,829
67.48
4,884,879
68.25
Gross profit
2,736,695
32.52
2,272,763
31.75
Selling, general and administrative expenses
1,864,471
22.16
1,551,888
21.68
Operating profit
872,224
10.37
720,875
10.07
Interest expense
40,268
0.48
25,567
0.36
Income before income taxes
831,956
9.89
695,308
9.71
Income tax expense
189,213
2.25
159,871
2.23
Net income
$
642,743
7.64
%
$
535,437
7.48
%
Earnings per share: Basic
$
2.64
$
2.11
Diluted
$
2.62
$
2.10
Weighted average shares outstanding: Basic
243,490
253,357
Diluted
245,423
255,146
For the Year Ended
January 29
% of Net
January 31
% of Net
2021
Sales
2020
Sales
Net sales
$
33,746,839
100.00
%
$
27,753,973
100.00
%
Cost of goods sold
23,027,977
68.24
19,264,912
69.41
Gross profit
10,718,862
31.76
8,489,061
30.59
Selling, general and administrative expenses
7,164,097
21.23
6,186,757
22.29
Operating profit
3,554,765
10.53
2,302,304
8.30
Interest expense
150,385
0.45
100,574
0.36
Income before income taxes
3,404,380
10.09
2,201,730
7.93
Income tax expense
749,330
2.22
489,175
1.76
Net income
$
2,655,050
7.87
%
$
1,712,555
6.17
%
Earnings per share: Basic
$
10.70
$
6.68
Diluted
$
10.62
$
6.64
Weighted average shares outstanding: Basic
248,171
256,553
Diluted
250,076
258,053
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows (In thousands)
(Unaudited)
For the Year Ended
January 29
January 31
2021
2020
Cash flows from operating activities: Net income
$
2,655,050
$
1,712,555
Adjustments to reconcile net income to net cash from operating
activities: Depreciation and amortization
574,237
504,804
Deferred income taxes
34,976
55,407
Noncash share-based compensation
68,609
48,589
Other noncash (gains) and losses
11,570
8,293
Change in operating assets and liabilities: Merchandise inventories
(575,827
)
(578,783
)
Prepaid expenses and other current assets
(16,516
)
(14,453
)
Accounts payable
745,596
428,627
Accrued expenses and other liabilities
388,597
100,322
Income taxes
(6,522
)
(20,404
)
Other
(3,611
)
(6,959
)
Net cash provided by (used in) operating activities
3,876,159
2,237,998
Cash flows from investing activities: Purchases of
property and equipment
(1,027,963
)
(784,843
)
Proceeds from sales of property and equipment
3,053
2,358
Net cash provided by (used in) investing activities
(1,024,910
)
(782,485
)
Cash flows from financing activities: Issuance of
long-term obligations
1,494,315
-
Repayments of long-term obligations
(4,640
)
(1,465
)
Net increase (decrease) in commercial paper outstanding
(425,200
)
58,300
Borrowings under revolving credit facilities
300,000
-
Repayments of borrowings under revolving credit facilities
(300,000
)
-
Costs associated with issuance of debt
(13,574
)
(1,675
)
Repurchases of common stock
(2,466,434
)
(1,200,376
)
Payments of cash dividends
(355,926
)
(327,568
)
Other equity and related transactions
56,467
22,104
Net cash provided by (used in) financing activities
(1,714,992
)
(1,450,680
)
Net increase (decrease) in cash and cash equivalents
1,136,257
4,833
Cash and cash equivalents, beginning of period
240,320
235,487
Cash and cash equivalents, end of period
$
1,376,577
$
240,320
Supplemental cash flow information: Cash paid
for: Interest
$
128,211
$
100,033
Income taxes
$
721,570
$
457,119
Supplemental schedule of non-cash investing and financing
activities: Right of use assets obtained in exchange for new
operating lease liabilities
$
1,721,530
$
1,705,988
Purchases of property and equipment awaiting processing for
payment, included in Accounts payable
$
118,059
$
110,248
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Selected Additional Information (Unaudited)
Sales by Category (in thousands)
For the Quarter Ended
January 29
January 31
2021
2020
% Change
Consumables
$
6,321,571
$
5,471,573
15.5
%
Seasonal
1,097,504
916,960
19.7
%
Home products
608,500
460,184
32.2
%
Apparel
386,949
308,925
25.3
%
Net sales
$
8,414,524
$
7,157,642
17.6
%
For the Year Ended
January 29
January 31
2021
2020
% Change
Consumables
$
25,906,685
$
21,635,890
19.7
%
Seasonal
4,083,650
3,258,874
25.3
%
Home products
2,209,950
1,611,899
37.1
%
Apparel
1,546,554
1,247,310
24.0
%
Net sales
$
33,746,839
$
27,753,973
21.6
%
Store Activity
For the Year Ended
January 29
January 31
2021
2020
Beginning store count
16,278
15,370
New store openings
1,000
975
Store closings
(101
)
(67
)
Net new stores
899
908
Ending store count
17,177
16,278
Total selling square footage (000's)
127,056
120,342
Growth rate (square footage)
5.6
%
5.8
%
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures Adjusted
Selling General and Administrative Expenses, Adjusted Operating
Profit, Adjusted Net Income, and Adjusted Diluted Earnings
Per Share (Unaudited) (in millions,
except per share amounts)
For the Year Ended
January 29
January 31
2021
% Net Sales
2020
% Net Sales
bps Change
% Change
Net sales
$
33,746.8
$
27,754.0
Selling, general and administrative expenses
$
7,164.1
21.23
$
6,186.8
22.29
(1.06
)
15.8
Significant Legal Expenses
-
-
(31.0
)
(0.11
)
0.11
Adjusted selling, general and administrative expenses
$
7,164.1
21.23
$
6,155.8
22.18
(0.95
)
16.4
Operating profit
$
3,554.8
10.53
$
2,302.3
8.30
2.23
54.4
Significant Legal Expenses
-
-
31.0
0.11
(0.11
)
Adjusted operating profit
$
3,554.8
10.53
$
2,333.3
8.41
2.12
52.4
Net income
$
2,655.1
7.87
$
1,712.6
6.17
1.70
55.0
Significant Legal Expenses
-
-
31.0
0.11
(0.11
)
Deferred tax benefit of Significant Legal Expenses
-
-
(6.9
)
(0.02
)
0.02
Significant Legal Expenses net of deferred tax benefit
-
-
24.1
0.09
(0.09
)
Adjusted net income
$
2,655.1
7.87
$
1,736.7
6.26
1.61
52.9
Diluted earnings per share: As reported
$
10.62
$
6.64
59.9
After-tax impact of Significant Legal Expenses
-
0.09
Adjusted
$
10.62
$
6.73
57.8
Weighted average diluted shares outstanding:
250.1
258.1
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210318005242/en/
Investor Contacts: Donny Lau (615) 855-5591 Kevin Walker (615)
855-4954
Media Contacts: Jennifer Moreau (877) 944-3477 Crystal Luce
(615) 855-5210
Dollar General (NYSE:DG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Dollar General (NYSE:DG)
Historical Stock Chart
From Apr 2023 to Apr 2024