Dollar General Reports Record First Quarter Sales and Earnings

June 08, 2010

  • Same-Store Sales Increased 6.7%
  • Gross Margin Expanded 136 Basis Points to 32.1%
  • Operating Profit Increased 29%; Adjusted Operating Profit Grew 36%
  • Adjusted EBITDA Increased 24% to $360 million
  • Adjusted Net Income was $145 million, up 75%, or $0.42 per share
  • Net Income Increased 64% to $136 million, or $0.39 per share
  • Company Raises 2010 Financial Outlook

GOODLETTSVILLE, Tenn. (BUSINESS WIRE), June 08, 2010 - Dollar General Corporation (NYSE: DG) today reported financial results for its fiscal 2010 first quarter (13 weeks) ended April 30, 2010. Net income was $136.0 million, or diluted earnings per share (“EPS”) of $0.39, compared to net income of $83.0 million, or diluted EPS of $0.26, in the first quarter (13 weeks) of fiscal 2009. Excluding items totaling approximately $15.0 million relating to a secondary offering of the Company’s common stock by certain existing shareholders during the 2010 first quarter, adjusted net income increased 75 percent to $145.4 million, or $0.42 per diluted share.

“Dollar General’s first quarter performance marks a great start to the year. Our first quarter sales were ahead of our expectations. Our same-store sales growth of 6.7 percent for the quarter was on top of 13.3 percent growth in the first quarter of 2009,” said Rick Dreiling, chairman and chief executive officer.

“We generated these positive results by continuing to provide our customers with a convenient shopping experience at everyday low prices. Our strong first quarter results, coupled with our consistent track record, give us confidence to raise our full-year outlook for 2010.”

First Quarter 2010 Financial Results

Sales increased 11.9 percent to $3.11 billion in the 2010 first quarter compared to $2.78 billion in the 2009 first quarter. Same-store sales increased 6.7 percent in the 2010 quarter and 13.3 percent in the 2009 quarter, with customer traffic and average transaction amount contributing to the same-store sales increases in both periods. Sales were strongest in the consumables and seasonal categories.

The 2010 gross profit rate increased by 136 basis points to 32.1 percent of sales from 30.8 percent of sales in the 2009 period. The gross profit rate increase was primarily due to higher net markups, partially offset by increased markdowns. Higher markups were impacted by increased sales volumes and improved global sourcing capabilities which have contributed to the Company’s ability to reduce product costs. In addition, an increase in the mix of private brands has contributed to increased markups. Higher markdowns in the quarter were partially attributable to the acceleration of certain planogram resets compared to the prior year. Transportation expenses increased due to the impact of higher average fuel costs in the quarter, and distribution expenses, as a percentage of sales, increased as the result of higher labor costs resulting from recent inventory management initiatives.

Selling, general and administrative expenses (“SG&A”) were $709.0 million, or 22.8 percent of sales, in the 2010 first quarter compared to 22.7% in the 2009 first quarter, an increase of 11 basis points. SG&A in the 2010 quarter includes expenses totaling $15.0 million relating to a secondary offering of the Company’s common stock by certain existing shareholders during the quarter, including $14.3 million relating to the acceleration of certain equity appreciation rights and $0.7 million of legal and other transaction expenses. Excluding these items, SG&A decreased by 37 basis points, primarily attributable to leverage attained from higher net sales. As a percentage of total sales, other items favorably affecting SG&A during the 2010 period include costs incurred in the 2009 period for productivity initiatives that did not recur in the 2010 period, reductions in utilities costs and increased benefits from the Company’s recycling efforts, partially offset by increased retail labor costs due in part to the acceleration of certain merchandising initiatives as well as an increase in certain minimum wage rates.

First quarter 2010 operating profit increased by 29 percent to $290.7 million, or 9.3 percent of sales, compared to $224.9 million, or 8.1 percent of sales, in the 2009 first quarter. Excluding the expenses relating to the secondary offering discussed above, first quarter 2010 operating profit would have been $305.8 million, or 9.8 percent of sales.

Interest expense was $72.0 million in the 2010 first quarter compared to $89.2 million in the 2009 first quarter due to lower average outstanding borrowings resulting from the Company’s repurchases of long-term obligations in fiscal 2009.

The effective income tax rate for the 2010 quarter was 37.8 percent compared to a rate of 38.1 percent for the 2009 quarter.

Merchandise Inventories

As of April 30, 2010, total merchandise inventories, at cost, were $1.60 billion compared to $1.45 billion as of May 1, 2009, an increase of ten percent, or four percent on a per-store basis. Inventory turns, based on the most recent four quarters, improved to 5.3 times in 2010 compared to 5.2 times in the comparable prior year period.

Long-Term Obligations

As of April 30, 2010, outstanding long-term obligations, including the current portion, were $3.40 billion, a decrease of $733 million from the prior year. In May 2010, the Company repurchased in the open market an additional $50 million of its 10-5/8% Senior Notes.

Capital Expenditures

Total additions to property and equipment in the 2010 first quarter were $91 million. Additions included $28 million relating to new store openings, $38 million for improvements and upgrades to existing stores, $14 million for remodels and relocations of existing stores, and $7 million for distribution and transportation improvements. During the quarter, the Company opened 155 new stores and relocated or remodeled 128 stores.

2010 Financial Outlook

The Company remains committed to continuing its focus on productive sales growth, increasing gross margins, leveraging process improvements and information technology to reduce costs and strengthening and expanding Dollar General's culture of serving others.

The volatility of the macroeconomic environment, including sustained rates of high unemployment, continues to pressure the consumer in general. Dollar General is closely monitoring how consumers respond to both the economic and the competitive climate.

Based on first quarter results, the Company continues to expect total sales for the 2010 fiscal year to increase eight to ten percent, including an increase in same-store sales of four to six percent. Adjusted operating profit is expected to increase 18 to 22 percent over full year 2009 adjusted operating profit, as compared to the Company’s previous guidance of 15 to 20 percent. Adjusted diluted earnings per share for the year are now expected to be $1.62 to $1.69, up from $1.55 to $1.63 previously forecasted, based on weighted average diluted shares of 345 million, and a full year 2010 tax rate in the range of 38 to 39 percent. The calculations of adjusted operating profit and adjusted diluted earnings per share exclude costs related to common stock offerings that have occurred in the relevant periods and the early retirement of long-term obligations, as applicable.

The Company plans to open approximately 600 new stores and to remodel or relocate a total of approximately 500 stores in 2010. Capital expenditures are expected to be in the range of $325 million to $350 million, with approximately 50 percent relating to new stores, remodels and relocations, 25 percent for maintenance capital and 25 percent for special projects, including the expansion of the 78-inch store profile and point-of-sale upgrades.

Conference Call Information

The Company will hold a conference call on Tuesday, June 8, 2010 at 9:00 a.m. CDT/10:00 a.m. EDT, hosted by Rick Dreiling, chairman and chief executive officer, and David Tehle, chief financial officer. If you wish to participate, please call (866) 710-0179 at least 10 minutes before the conference call is scheduled to begin. The pass code for the conference call is “Dollar General.” In addition, the call will be available online at www.dollargeneral.com under “Investor Information, Conference Calls and Investor Events.” A replay of the conference call will be available through Tuesday, June 22, 2010, and will be accessible online or by calling (334) 323-7226. The pass code for the replay is 69256576.

Forward-Looking Statements

This press release contains forward-looking information, such as the information in the section entitled “2010 Financial Outlook.” The words “believe,” “anticipate,” “project,” “plan,” “schedule,” “expect,” “estimate,” “objective,” “forecast,” “intend,” “committed,” “will likely result,” or “will continue” and similar expressions generally identify forward-looking statements. These matters involve risks, uncertainties and other factors that may cause the actual performance of the Company to differ materially from that expressed or implied by these forward-looking statements. All forward-looking information should be evaluated in the context of these risks, uncertainties and other factors. Factors that may result in actual results differing materially from such forward-looking information include, but are not limited to:

  • failure to successfully execute the Company’s growth strategy, including delays in store growth, difficulties executing sales and operating profit margin initiatives and inventory shrinkage reduction;
  • the failure of the Company’s new store base to achieve sales and operating levels consistent with the Company’s expectations;
  • risks and challenges in connection with sourcing merchandise from domestic and foreign vendors, as well as trade restrictions;
  • the Company’s level of success in gaining and maintaining broad market acceptance of its private brands and in achieving its other initiatives;
  • unfavorable publicity or consumer perception of the Company’s products;
  • the Company’s debt levels and restrictions in its debt agreements;
  • economic conditions, including their effect on the financial and capital markets, the Company’s suppliers and business partners, employment levels, consumer demand, disposable income, credit availability and spending patterns, inflation and the cost of goods;
  • increases in commodity prices (including, without limitation, cotton, resin, oil and paper);
  • levels of inventory shrinkage;
  • seasonality of the Company’s business;
  • increases in costs of fuel or other energy, transportation or utilities costs and in the costs of labor, employment and health care;
  • the impact of changes in or noncompliance with governmental laws and regulations (including, but not limited to, product safety, healthcare and unionization) and developments in and outcomes of legal proceedings, investigations or audits;
  • disruptions in the Company’s supply chain including, without limitation, a decrease in transportation capacity for overseas shipments;
  • damage or interruption to the Company’s information systems;
  • changes in the competitive environment in the Company’s industry and the markets where the Company operates;
  • natural disasters, unusually adverse weather conditions, pandemic outbreaks, boycotts, war and geo-political events;
  • the incurrence of material uninsured losses, excessive insurance costs or accident costs;
  • the Company’s failure to protect its brand name;
  • the Company’s loss of key personnel or the Company’s inability to hire additional qualified personnel;
  • interest rate and currency exchange fluctuations;
  • the Company’s failure to maintain effective internal controls;
  • changes to income tax expense due to changes in or interpretation of tax laws, or as a result of federal or state income tax examinations;
  • changes to or new accounting guidance, such as changes to lease accounting guidance or a requirement to convert to international financial reporting standards;
  • the factors disclosed under “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 31, 2010; and any quarterly reports on Form 10-Q filed subsequently to the Form 10-K;
  • such other factors as may be discussed or identified in this press release.

Forward-looking statements speak only as of the date made. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances arising after the date on which they were made. 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.

Non-GAAP Disclosure

Certain information provided in this press release and the accompanying tables has not been derived in accordance with generally accepted accounting principles (“GAAP”). Reconciliations of these non-GAAP measures to measures calculated in accordance with GAAP are provided in the accompanying schedules. Non-GAAP information should not be considered a substitute for any information derived or calculated in accordance with GAAP.

The Company believes that providing comparisons to operating profit, net income, diluted earnings per share and SG&A, adjusted for the items shown in the accompanying reconciliations, provides useful information to the reader in assessing the Company’s operating performance. The Company believes that the presentation of EBITDA and Adjusted EBITDA is appropriate to provide additional information about the calculation of the senior secured incurrence test, a material financial ratio in the Company’s credit agreements. Adjusted EBITDA is a material component of that ratio.

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 net income, operating income, cash flows from operations or any other performance measures determined in accordance with GAAP. Additionally, EBITDA and Adjusted EBITDA are not intended to be measures of free cash flow for management’s discretionary use, as they do not consider certain cash requirements such as interest payments, tax payments, debt service requirements and replacement of fixed assets. 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 under GAAP.

About Dollar General Corporation

Dollar General Corporation has been delivering value to shoppers for more than 70 years. Dollar General helps shoppers Save time. Save money. Every day!(R) by offering products that are frequently used and replenished, such as food, snacks, health and beauty aids, cleaning supplies, basic apparel, house wares and seasonal items at low everyday prices in convenient neighborhood locations. With 8,965 stores in 35 states as of April 30, 2010, Dollar General has more retail locations than any retailer in America. In addition to high quality private brands, Dollar General sells products from America's most-trusted manufacturers such as Procter & Gamble, Kimberly-Clark, Unilever, Kellogg's, General Mills, Nabisco, Hanes, PepsiCo and Coca-Cola. Learn more about Dollar General at www.dollargeneral.com.

DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
               
      (Unaudited)    
      April 30,   May 1,   January 29,
      2010   2009   2010
ASSETS            
Current assets:            
Cash and cash equivalents   $ 222,709     $ 434,584     $ 222,076  
Merchandise inventories     1,604,754       1,454,692       1,519,578  
Income taxes receivable     -       3,479       7,543  
Prepaid expenses and other current assets     111,115       69,393       96,252  
Total current assets     1,938,578       1,962,148       1,845,449  
Net property and equipment     1,360,868       1,280,835       1,328,386  
Goodwill     4,338,589       4,338,589       4,338,589  
Intangible assets, net     1,276,173       1,314,425       1,284,283  
Other assets, net     62,868       82,804       66,812  
Total assets   $ 8,977,076     $ 8,978,801     $ 8,863,519  
               
LIABILITIES AND SHAREHOLDERS' EQUITY            
Current liabilities:            
Current portion of long-term obligations   $ 3,547     $ 19,526     $ 3,671  
Accounts payable     789,274       700,438       830,953  
Accrued expenses and other     332,251       332,722       342,290  
Income taxes payable     34,686       28,034       4,525  
Deferred income taxes payable     46,282       11,942       25,061  
Total current liabilities     1,206,040       1,092,662       1,206,500  
Long-term obligations     3,399,887       4,117,190       3,399,715  
Deferred income taxes     540,010       554,098       546,172  
Other liabilities     277,989       283,916       302,348  
Total liabilities     5,423,926       6,047,866       5,454,735  
               
Commitments and contingencies            
               
Redeemable common stock     16,624       14,350       18,486  
               
Shareholders' equity:            
Preferred stock     -       -       -  
Common stock     298,371       278,159       298,013  
Additional paid-in capital     2,928,855       2,492,482       2,923,377  
Retained earnings     339,071       186,370       203,075  
Accumulated other comprehensive loss     (29,771 )     (40,426 )     (34,167 )
Total shareholders' equity     3,536,526       2,916,585       3,390,298  
Total liabilities and shareholders' equity   $ 8,977,076     $ 8,978,801     $ 8,863,519  
             

 

DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
                 
    For the Quarter (13 Weeks) Ended
    April 30,   % of Net   May 1,   % of Net
    2010   Sales   2009   Sales
Net sales   $ 3,111,314     100.00 %   $ 2,779,937     100.00 %
Cost of goods sold     2,111,558     67.87

 

    1,924,579     69.23

 

Gross profit     999,756     32.13

 

    855,358     30.77

 

Selling, general and administrative     709,033     22.79

 

    630,489     22.68

 

Operating profit     290,723     9.34

 

    224,869     8.09

 

Interest income     (6 )   (0.00 )     (94 )   (0.00 )
Interest expense     72,018     2.31

 

    89,235     3.21

 

Other (income) expense     145     0.00

 

    1,667     0.06

 

Income before income taxes     218,566     7.02

 

    134,061     4.82

 

Income tax expense     82,570     2.65

 

    51,055     1.84

 

Net income   $ 135,996     4.37 %   $ 83,006     2.99 %
                 
Earnings per share:                
Basic   $ 0.40         $ 0.26      
Diluted   $ 0.39         $ 0.26      
Weighted average shares outstanding:                
Basic     340,819           317,870      
Diluted     344,397           318,298      
                 

 

DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
    For the Quarter (13 Weeks) Ended
    April 30,   May 1,
    2010   2009
Cash flows from operating activities:        
Net income   $ 135,996     $ 83,006  

Adjustments to reconcile net income to net cash provided by operating activities:

       
Depreciation and amortization     63,252       64,531  
Deferred income taxes     10,029       15,461  
Tax benefit of stock options     (4,806 )     -  
Non-cash share-based compensation     4,979       2,938  
Other non-cash gains and losses     1,633       1,260  
Change in operating assets and liabilities:        
Merchandise inventories     (85,176 )     (39,040 )
Prepaid expenses and other current assets     (13,503 )     (3,012 )
Accounts payable     (36,954 )     10,578  
Accrued expenses and other     (30,961 )     (50,368 )
Income taxes     42,510       23,336  
Other     (26 )     203  
Net cash provided by operating activities     86,973       108,893  
         
Cash flows from investing activities:        
Purchases of property and equipment     (90,998 )     (51,825 )
Proceeds from sale of property and equipment     258       152  
Net cash used in investing activities     (90,740 )     (51,673 )
         
Cash flows from financing activities:        
Issuance of common stock     285       620  
Repayments of long-term obligations     (463 )     (999 )
Repurchases of equity     (228 )     (252 )
Tax benefit of stock options     4,806       -  

Net cash provided by (used in) financing activities

    4,400       (631 )
         
Net increase in cash and cash equivalents     633       56,589  
Cash and cash equivalents, beginning of period     222,076       377,995  
Cash and cash equivalents, end of period   $ 222,709     $ 434,584  
         
Supplemental cash flow information:        
Cash paid for:        
Interest   $ 28,394     $ 33,782  
Income taxes   $ 51,713     $ 34,944  
Supplemental schedule of non-cash investing and financing activities:        

Purchases of property and equipment awaiting processing for payment, included in Accounts payable

  $ 25,669     $ 18,913  
         

 

DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Selected Additional Information
(Unaudited)
           
           
Sales by Category (in thousands)
           
  For the Quarter (13 Weeks) Ended    
  April 30, 2010   May 1, 2009   % Change  
Consumables $ 2,231,500   $ 1,995,809     11.8 %
Seasonal   430,051     356,452     20.6 %
Home products   224,867     216,883     3.7 %
Apparel   224,896     210,793     6.7 %
Net sales $ 3,111,314   $ 2,779,937     11.9 %
           
           
           
           
Store Activity
           
      For the Quarter (13 Weeks) Ended
      April 30, 2010   May 1, 2009
           
Beginning store count       8,828     8,362  
New store openings       155     104  
Store closings       (18 )   (4 )
Net new stores       137     100  
Ending store count       8,965     8,462  
Total selling square footage (000's)       63,679     59,546  
                 

 

DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(in millions, except per share amounts)
                         
                         
                         
    For the Quarter (13 Weeks) Ended        
    April 30,   % of Net   May 1,   % of Net   Increase
    2010   Sales   2009   Sales   $   %
                         
Net sales   $ 3,111.3         $ 2,779.9       $ 331.4   11.9 %
                         
Selling, general and administrative ("SG&A")   $ 709.0     22.79 %   $ 630.5   22.68 %   $ 78.5   12.5 %
Secondary offering expenses     (0.7 )         -            
Acceleration of equity-based compensation     (14.3 )         -            
Adjusted SG&A   $ 694.0     22.31 %   $ 630.5   22.68 %   $ 63.5   10.1 %
                         
Operating profit   $ 290.7     9.34 %   $ 224.9   8.09 %   $ 65.9   29.3 %
Secondary offering expenses     0.7           -            
Acceleration of equity-based compensation     14.3           -            
Adjusted operating profit   $ 305.8     9.83 %   $ 224.9   8.09 %   $ 80.9   36.0 %
                         
Net income   $ 136.0     4.37 %   $ 83.0   2.99 %   $ 53.0   63.8 %
Secondary offering expenses     0.7           -            
Acceleration of equity-based compensation     14.3           -            
Total adjustments     15.0           -            
Income tax effect of adjustments     (5.6 )         -            
Net adjustments     9.4     0.30 %     -   -          
Adjusted net income   $ 145.4     4.67 %   $ 83.0   2.99 %   $ 62.4   75.2 %
                         
Diluted earnings per share:                        
As reported   $ 0.39         $ 0.26            
Adjusted   $ 0.42         $ 0.26            
Impact of net adjustments   $ 0.03         $ -            
                         
Weighted average diluted shares outstanding     344.4           318.3            
                         

 

DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
                 
RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA
(In millions)
                 
    Quarter (13 Weeks) Ended   Four Quarters (52 Weeks) Ended
    April 30,   May 1,   April 30,   May 1,
    2010   2009   2010   2009
               
Net income   $ 136.0     $ 83.0     $ 392.4     $ 185.3  
Add (subtract):                
Interest income     (0.0 )     (0.1 )     (0.0 )     (2.2 )
Interest expense     72.0       89.2       328.4       380.2  
Depreciation and amortization     60.1       61.2       240.6       238.0  
Income taxes     82.6       51.1       244.2       132.6  
EBITDA     350.7       284.4       1,205.6       933.9  
                 
Adjustments:                
(Gain) loss on debt retirements     -       -       55.3       (3.8 )
(Gain) loss on hedging instruments     0.1       0.7       (0.1 )     1.5  
Contingent gain on distribution center leases     -       -       -       (5.0 )

Impact of markdowns related to inventory clearance activities, net of purchase accounting adjustments

    -       (3.5 )     (3.8 )     (28.4 )
Hurricane-related expenses and write-offs     -       -       -       2.2  
Advisory and consulting fees to affiliates     0.1       1.6       62.0       8.0  
Non-cash expense for share-based awards     6.1       2.9       21.9       10.6  
Indirect costs related to merger and stock offering     0.8       4.4       7.0       17.3  
Litigation settlement and related costs, net     -       -       -       32.0  
Other non-cash charges (including LIFO)     1.8       0.5       7.9       53.9  
Total Adjustments     8.9       6.6       150.2       88.3  
Adjusted EBITDA   $ 359.6     $ 291.0     $ 1,355.8     $ 1,022.2  
                 

 

DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Dollars in millions)
           
           
Senior Secured Incurrence Test
           
    April 30,     May 1,
    2010     2009
Senior secured debt   $ 1,985.9     $ 2,323.5
Less: cash     222.7       434.6
Senior secured debt, net of cash   $ 1,763.2     $ 1,888.9
Adjusted EBITDA   $ 1,355.8     $ 1,022.2

Ratio of senior secured debt, net of cash, to Adjusted EBITDA

  1.3x     1.8x
           
           
           
Calculation of Ratio of Long-Term Obligations to Adjusted EBITDA
           
    April 30,     May 1,
    2010     2009
Total long-term obligations   $ 3,403.4     $ 4,136.7
Adjusted EBITDA   $ 1,355.8     $ 1,022.2
Ratio of long-term obligations to Adjusted EBITDA   2.5x     4.0x
           
           
           
Calculation of Ratio of Long-Term Obligations, net of Cash, to Adjusted EBITDA
           
    April 30,     May 1,
    2010     2009
Total long-term obligations   $ 3,403.4     $ 4,136.7
Less: cash     222.7       434.6
Total long-term obligations, net of cash   $ 3,180.7     $ 3,702.1
Adjusted EBITDA   $ 1,355.8     $ 1,022.2

Ratio of long-term obligations, net of cash, to Adjusted EBITDA

  2.3x     3.6x
           

 

DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(in millions, except per share amounts)
                     
    For the Year (52 Weeks) Ended        
    January 28, 2011   January 29, 2010   Forecasted
    Forecast of Range       Percent Increase
    Low End   High End   Actual   Low End High End
                     
                     
Operating profit   $ 1,191.0     $ 1,227.0     $ 953.3     25 %   29 %
Sponsor advisory fee termination     -       -       58.8          
Acceleration of equity-based compensation     14.3       14.3       9.4          
Secondary offering expenses     0.7       0.7       -          
Adjusted operating profit   $ 1,206.0     $ 1,242.0     $ 1,021.5     18 %   22 %
                     
Net income   $ 544.6     $ 570.6     $ 339.4     60 %   68 %
Sponsor advisory fee termination     -       -       58.8          
Acceleration of equity-based compensation     14.3       14.3       9.4          
Secondary offering expenses     0.7       0.7       -          
Repurchase of long-term obligations     6.5       6.5       55.3          
Total adjustments     21.5       21.5       123.5          
Income tax effect of adjustments     (8.1 )     (8.1 )     (37.8 )        
Net adjustments     13.4       13.4       85.7          
Adjusted net income   $ 558.0     $ 584.0     $ 425.1     31 %   37 %
                     
Diluted earnings per share:                    
As reported   $ 1.58     $ 1.65     $ 1.04     52 %   59 %
Adjusted   $ 1.62     $ 1.69     $ 1.31     24 %   29 %
Impact of net adjustments   $ 0.04     $ 0.04     $ 0.26          
                     
Weighted average diluted shares outstanding     345.0       345.0       324.8          
                     
                     
                     
NOTE: Adjustments included in the range of forecasts for the year (52 weeks) ended January 28, 2011 included items incurred through the first quarter ended April 30, 2010 and an estimated pretax loss of $6.5 million ($4.0 million, net of tax) resulting from the repurchase of $50 million of the Company's Senior Notes on May 6, 2010.

 

Contact(s):

Dollar General Corporation
Investor Contact:
Mary Winn Gordon, 615-855-5536
or
Emma Jo Kauffman, 615-855-5525
or
Media Contact:
Tawn Miller, 615-855-5209


About Dollar General Corporation
Dollar General Corporation has been delivering value to shoppers for over 75 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, clothing for the family, housewares and seasonal items at low everyday prices in convenient neighborhood locations. Dollar General operated 14,000 stores in 44 states as of August 19, 2017. In addition to high quality private brands, Dollar General sells products from America's most-trusted brands such as Procter & Gamble, Kimberly-Clark, Unilever, Kellogg's, General Mills, Nabisco, Hanes, PepsiCo and Coca-Cola. Learn more about Dollar General at www.dollargeneral.com.

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