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The Home Depot Announces Fourth Quarter and Fiscal 2012 Results; Announces $17 Billion Share Repurchase Authorization; Increases

The Home Depot Announces Fourth Quarter and Fiscal 2012 Results; Announces $17 
Billion Share Repurchase Authorization; Increases Quarterly Dividend by 34 
Percent and Provides Fiscal Year 2013 Guidance 
ATLANTA, Feb. 26, 2013 /CNW/ - The Home Depot(®), the world's largest home 
improvement retailer, today reported sales of $18.2 billion for the fourth 
quarter of fiscal 2012, a 13.9 percent increase from the fourth quarter of 
fiscal 2011. Comparable store sales for the fourth quarter of fiscal 2012 
increased 7.0 percent, and comp sales for U.S. stores were 7.1 percent. 
(Logo: http://photos.prnewswire.com/prnh/20030502/HOMEDEPOTLOGO ) 
The fourth quarter of fiscal 2012 consisted of 14 weeks compared with 13 weeks 
for the prior year. The 14th week added approximately $1.2 billion in sales 
for the quarter and the year. Excluding the 14th week, fourth quarter sales 
increased by 6.3 percent compared to the fourth quarter of fiscal 2011. The 
additional week is not included in comparable store sales results for the 
quarter or the year. 
Net earnings for the fourth quarter were $1.0 billion, or $0.68 per diluted 
share, compared with net earnings of $774 million, or $0.50 per diluted share, 
in the same period of fiscal 2011. These results reflect a favorable 
adjustment to a previously announced China store closing charge of 
approximately $20 million, net of tax, or $0.01 per diluted share. The 14th 
week increased earnings per diluted share by approximately $0.07 for the 
quarter and the year. 
Fiscal 2012 
Sales for fiscal 2012 were $74.8 billion, an increase of 6.2 percent from 
fiscal 2011. Total company comparable store sales for the year increased 4.6 
percent, and comp sales for U.S. stores were 4.9 percent for the year. 
Excluding the 53rd week, sales for fiscal 2012 increased by 4.5 percent from 
fiscal 2011. 
Earnings per diluted share in fiscal 2012 were $3.00, compared to $2.47 per 
diluted share in fiscal 2011, an increase of 21.5 percent. These results 
reflect a nonrecurring charge of approximately $145 million, net of tax, or 
$0.10 per diluted share, associated with the China store closings. On an 
adjusted basis, earnings per diluted share in fiscal 2012 were $3.10, compared 
to $2.47 per diluted share in fiscal 2011, an increase of 25.5 percent. 
"We ended the year with a strong performance as our business benefited from a 
continued recovery in the housing market coupled with sales related to repairs 
in the areas impacted by Hurricane Sandy," said Frank Blake, chairman & CEO. 
"I'd like to thank our associates for their hard work and dedication." 
Capital Allocation Strategy 
The Company today announced that its board of directors declared a 34 percent 
increase in its quarterly dividend to $0.39 cents per share. "The board 
increased the dividend for the fourth time in as many years. In line with our 
targeted dividend payout of 50 percent, the dividend increase is a testament 
to our commitment to create value for our shareholders," said Blake. The 
dividend is payable on March 28, 2013, to shareholders of record on the close 
of business on March 14, 2013. This is the 104th consecutive quarter the 
Company has paid a cash dividend. 
The board of directors also authorized a $17.0 billion share repurchase 
program replacing its previous authorization. Since 2002 and through February 
3, 2013, the Company has returned more than $37.5 billion of cash to 
shareholders through repurchases, repurchasing approximately 1 billion shares. 
Combined with today's announcements, the Company reiterated its capital 
allocation principles: 


    --  Dividend Principle: Targeting a dividend payout ratio of
        approximately 50 percent.
    --  Share Repurchase Principle: After meeting the needs of the
        business, will use excess cash to repurchase shares, with the
        intent of completing $17.0 billion of share repurchases by the
        end of fiscal 2015.
    --  Return on Invested Capital Principle: Maintain a high return on
        invested capital, with a goal of reaching 24 percent by the end
        of fiscal 2015.

Fiscal 2013 Guidance

The Company provided the following guidance for fiscal 2013, a 52-week year 
compared to fiscal 2012, a 53-week year:
    --  Sales growth of approximately 2 percent
    --  Comparable store sales growth of approximately 3 percent
    --  Nine new stores
    --  Moderate gross margin expansion
    --  Operating margin expansion of approximately 65 basis points
    --  Tax rate of approximately 37 percent
    --  Share repurchases of approximately $4.5 billion
    --  Diluted earnings-per-share growth after anticipated share
        repurchases of approximately 12 percent to $3.37
    --  Capital spending of approximately $1.5 billion
    --  Depreciation and amortization expense of approximately $1.7
        billion
    --  Cash flow from the business of approximately $7.2 billion

The Home Depot will conduct a conference call today at 9 a.m. ET to discuss 
information included in this news release and related matters. The conference 
call will be available in its entirety through a webcast and replay at 
earnings.homedepot.com.

At the end of the fourth quarter, the Company operated a total of 2,256 retail 
stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin 
Islands, Guam, 10 Canadian provinces and Mexico. The Company employs more than 
300,000 associates. The Home Depot's stock is traded on the New York Stock 
Exchange (NYSE: HD) and is included in the Dow Jones industrial average and 
Standard & Poor's 500 index.

To provide clarity, internally and externally, about the Company's operating 
performance for recently completed fiscal periods, the Company has 
supplemented its reporting with non-GAAP financial measures to reflect the 
impact of the closing of seven stores in China. The Company believes that 
these non-GAAP financial measures better enable management and investors to 
understand and analyze the Company's performance by providing them with 
meaningful information relevant to events of unusual nature or frequency that 
impact the comparability of underlying business results from period to period. 
However, this supplemental information should not be considered in isolation 
or as a substitute for the related GAAP measures. A reconciliation of the 
non-GAAP financial measures to the comparable GAAP measures can be found 
attached to this press release and at http://earnings.homedepot.com.

Certain statements contained herein constitute "forward-looking statements" as 
defined in the Private Securities Litigation Reform Act of 1995. 
Forward-looking statements may relate to, among other things, the demand for 
our products and services, net sales growth, comparable store sales, state of 
the economy, state of the residential construction, housing and home 
improvement markets, state of the credit markets, including mortgages, home 
equity loans and consumer credit, inventory and in-stock positions, commodity 
price inflation and deflation, implementation of store and supply chain 
initiatives, continuation of share repurchase programs, net earnings 
performance, earnings per share, capital allocation and expenditures, 
liquidity, return on invested capital, management of relationships with our 
suppliers and vendors, stock-based compensation expense, the effect of 
accounting charges, the effect of adopting certain accounting standards, the 
ability to issue debt on terms and at rates acceptable to us, store openings 
and closures, expense leverage, guidance for fiscal 2013 and beyond and 
financial outlook. Forward-looking statements are based on currently available 
information and our current assumptions, expectations and projections about 
future events. You should not rely on our forward-looking statements. These 
statements are not guarantees of future performance and are subject to future 
events, risks and uncertainties – many of which are beyond our control or 
are currently unknown to us – as well as potentially inaccurate assumptions 
that could cause actual results to differ materially from our expectations and 
projections. These risks and uncertainties include but are not limited to 
those described in Item 1A, "Risk Factors," and elsewhere in our Annual Report 
on Form 10-K for our fiscal year ended January 29, 2012 and in our subsequent 
Quarterly Reports on Form 10-Q.

Forward-looking statements speak only as of the date they are made, and we do 
not undertake to update these statements other than as required by law. You 
are advised, however, to review any further disclosures we make on related 
subjects in our periodic filings with the Securities and Exchange Commission.

THE HOME DEPOT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE THREE MONTHS AND FISCAL YEARS ENDED FEBRUARY 3, 2013 AND JANUARY 29, 2012

(Unaudited)

(Amounts in Millions Except Per Share Data and as Otherwise Noted)
                Three Months Ended(               Fiscal Year Ended((2))
                (1))                  % Increase                               % Increase
                February   January    February 3,      January                 (Decrease)
                3, 2013    29, 2012   2013             29, 2012


NET SALES       $ 18,246   $ 16,014   13.9    %   $    74,754   $     70,395   6.2     %

Cost of Sales   11,880     10,417     14.0        48,912        46,133         6.0

GROSS PROFIT    6,366      5,597      13.7        25,842        24,262         6.5

Operating
Expenses:

Selling,
General and     4,217      3,877      8.8         16,508        16,028         3.0
Administrative

Depreciation
and             399        390        2.3         1,568         1,573          (0.3)
Amortization

Total
Operating       4,616      4,267      8.2         18,076        17,601         2.7
Expenses

OPERATING       1,750      1,330      31.6        7,766         6,661          16.6
INCOME

Interest and
Other (Income)
Expense:

Interest and
Investment      (6)        (4)        50.0        (20)          (13)           53.8
Income

Interest        166        154        7.8         632           606            4.3
Expense

Other           —    —    —     (67)          —        N/A

Interest and    160        150        6.7         545           593            (8.1)
Other, net

EARNINGS
BEFORE          1,590      1,180      34.7        7,221         6,068          19.0
PROVISION FOR
INCOME TAXES

Provision for   569        406        40.1        2,686         2,185          22.9
Income Taxes



NET EARNINGS    $ 1,021    $ 774      31.9    %   $    4,535    $     3,883    16.8    %



Weighted
Average Common  1,479      1,525      (3.0)   %   1,499         1,562          (4.0)   %
Shares

BASIC EARNINGS  $ 0.69     $ 0.51     35.3        $    3.03     $     2.49     21.7
PER SHARE

Diluted
Weighted        1,491      1,535      (2.9)   %   1,511         1,570          (3.8)   %
Average Common
Shares

DILUTED
EARNINGS PER    $ 0.68     $ 0.50     36.0        $    3.00     $     2.47     21.5
SHARE
                Three Months Ended(               Fiscal Year Ended((2))
                (1))                  % Increase                               % Increase

SELECTED        February   January    (DecreasFebruary        January          (Decrease)
HIGHLIGHTS      3, 2013    29, 2012           3, 2013         29,
                                                              2012

Number of
Customer        329.1      303.0      8.6     %   1,364.0       1,317.5        3.5     %
Transactions

Average Ticket  $ 55.46    $ 52.54    5.6         $    54.89    $     53.28    3.0
(actual)

Weighted
Average Weekly
Sales


            $ 580      $ 544      6.6         $    627      $     601      4.3
per Operating
Store (in
thousands) 
Square Footage
at End of       235        235        —     235           235            —
Period 
Capital         $ 425      $ 401      6.0         $    1,312    $     1,221    7.5
Expenditures 
Depreciation
and             $ 427      $ 417      2.4     %   $    1,684    $     1,682    0.1     %
Amortization(
(3)) 
(1) Three months ended February 3, 2013 includes 14 weeks. Three months ended January 29,
2012 includes 13 weeks. 
(2) Fiscal year ended February 3, 2013 includes 53 weeks. Fiscal year ended January 29,
2012 includes 52 weeks. 
(3) Includes depreciation of distribution centers and tool rental equipment included in
Cost of Sales and amortization of deferred financing costs included in Interest Expense. 
N/A - Not Applicable 
THE HOME DEPOT, INC. AND SUBSIDIARIES 
CONSOLIDATED STATEMENTS OF EARNINGS ITEMS EXCLUDING CERTAIN
ADJUSTMENTS (NON-GAAP) 
FOR THE THREE MONTHS AND FISCAL YEAR ENDED FEBRUARY 3, 2013 
(Unaudited) 
(Amounts in Millions Except Per Share Data) 


                           Three Months Ended February 3, 2013((1))
                                      China Store    As Adjusted
                           Actuals    Closings((3))
                                                     (Non-GAAP)

Gross Profit               $ 6,366    $ —      $ 6,366

Total Operating Expenses   4,616      (20)           4,636

Operating Income           1,750      20             1,730

Net Earnings               1,021      20             1,001

Diluted Earnings Per Share $ 0.68     $ 0.01         $ 0.67
                           Fiscal Year Ended February 3, 2013((2))
                                      China Store    As Adjusted
                           Actuals    Closings((3))
                                                     (Non-GAAP)

Gross Profit               $ 25,842   $ (10)         $ 25,852

Total Operating Expenses   18,076     135            17,941

Operating Income           7,766      (145)          7,911

Net Earnings               4,535      (145)          4,680

Diluted Earnings Per Share $ 3.00     $ (0.10)       $ 3.10



(1) Three months ended February 3, 2013 includes 14 weeks.

(2) Fiscal year ended February 3, 2013 includes 53 weeks.

(3) Adjustments are related to the closing of seven stores in
China.

THE HOME DEPOT, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF FEBRUARY 3, 2013 AND JANUARY 29, 2012

(Unaudited)

(Amounts in Millions)
                                            February 3,  January 29,
                                            2013         2012

ASSETS

Cash and Cash Equivalents                   $ 2,494      $ 1,987

Receivables, net                            1,395        1,245

Merchandise Inventories                     10,710       10,325

Other Current Assets                        773          963

Total Current Assets                        15,372       14,520

Property and Equipment, net                 24,069       24,448

Goodwill                                    1,170        1,120

Other Assets                                473          430

TOTAL ASSETS                                $ 41,084     $ 40,518



LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts Payable                            $ 5,376      $ 4,856

Accrued Salaries and Related Expenses       1,414        1,372

Current Installments of Long-Term Debt      1,321        30

Other Current Liabilities                   3,351        3,118

Total Current Liabilities                   11,462       9,376

Long-Term Debt                              9,475        10,758

Other Long-Term Liabilities                 2,370        2,486

Total Liabilities                           23,307       22,620

Total Stockholders' Equity                  17,777       17,898

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $ 41,084     $ 40,518

THE HOME DEPOT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR FISCAL YEARS ENDED FEBRUARY 3, 2013 AND JANUARY 29, 2012

(Unaudited)

(Amounts in Millions)
                                               Fiscal Year Ended((1))
                                               February 3,  January 29,
                                               2013         2012

CASH FLOWS FROM OPERATING ACTIVITIES:

Net Earnings                                   $ 4,535      $ 3,883

Reconciliation of Net Earnings to Net Cash
Provided by Operating Activities:

Depreciation and Amortization                  1,684        1,682

Stock-Based Compensation Expense               218          215

Changes in Working Capital and Other           538          871

Net Cash Provided by Operating Activities      6,975        6,651

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital Expenditures                           (1,312)      (1,221)

Payments for Businesses Acquired, net          (170)        (65)

Proceeds from Sale of Business, net            —      101

Proceeds from Sales of Property and Equipment  50           56

Net Cash Used in Investing Activities          (1,432)      (1,129)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from Long-Term Borrowings, net of     —      1,994
discount

Repayments of Long-Term Debt                   (32)         (1,028)

Repurchases of Common Stock                    (3,984)      (3,470)

Proceeds from Sales of Common Stock            784          306

Cash Dividends Paid to Stockholders            (1,743)      (1,632)

Other                                          (59)         (218)

Net Cash Used in Financing Activities          (5,034)      (4,048)

Change in Cash and Cash Equivalents            509          1,474

Effect of Exchange Rate Changes on Cash and    (2)          (32)
Cash Equivalents

Cash and Cash Equivalents at the Beginning of  1,987        545
the Period

Cash and Cash Equivalents at the End of the    $ 2,494      $ 1,987
Period



(1) Fiscal year ended February 3, 2013 includes 53 weeks. Fiscal year
ended January 29, 2012 includes 52 weeks.





Financial Community, Diane Dayhoff, Vice President of Investor  Relations, 
+1-770-384-2666, diane_dayhoff@homedepot.com ; News Media,  Paula Drake, 
Director of Corporate Communications, +1-770-384-3439,  
paula_drake@homedepot.com

http://www.homedepot.com

http://photos.prnewswire.com/prnh/20030502/HOMEDEPOTLOGO

SOURCE: The Home Depot

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/February2013/26/c8429.html

CO: The Home Depot
ST: Georgia
NI: RET CST ERN CONF DIV 

-0- Feb/26/2013 11:27 GMT


 
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