Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, midwestern, and eastern United States. The company offers consumable products, including paper and cleaning products comprising paper towels, bath tissues, paper dinnerware, trash and storage bags, and laundry and other home cleaning supplies; packaged food products, such as cereals, canned soups and vegetables, condiments, spices, sugar, and flour; perishables consisting of milk, eggs, bread, frozen meals, beer, and wine; snacks that comprise candies, cookies, crackers, salty snacks, and carbonated beverages; health and beauty products, such as over-the-counter medicines, as...
100 Mission Ridge
Goodlettsville, TN 37072
Founded in 1939
Dollar General Corporation Announces Retirement of David Tehle as Executive Vice President and Chief Financial Officer
Mar 12 15
Dollar General Corporation announced that David Tehle, executive vice president and chief financial officer, will retire from Dollar General effective July 1, 2015.
Dollar General Corporation Reports Unaudited Consolidated Financial Results for the Fourth Quarter and Full Year Ended Dec. 31, 2014; Announces Initiation of First Quarter Dividend, Payable on April 22, 2015; Provides Earnings Guidance for Fiscal 2015; Plans to Open 730 New Stores in 2015
Mar 12 15
Dollar General Corporation reported unaudited consolidated financial results for the fourth quarter and full year ended Dec. 31, 2014. The company's net income for the 2014 fourth quarter was $355 million, or diluted earnings per share of $1.17, compared to net income of $322 million, or diluted EPS of $1.01, in the 2013 fourth quarter. Net sales increased 9.9% to $4.94 billion in the 2014 fourth quarter compared to $4.49 billion in the 2013 fourth quarter. Same-store sales increased 4.9%, resulting from increases in both customer traffic and average transaction amount. Same-store sales increases were driven by strength across all categories with strong growth across candy and snacks, tobacco, perishables and health care. Operating profit was $566,716,000 against $538,122,000 for the same period of last year. Income before income taxes was $545,184,000 against $515,809,000 for the same period of last year.
Full year 2014 net sales increased 8.0% to $18.9 billion compared to net sales of $17.5 billion in 2013. Same-store sales increased 2.8%, including increases in both customer traffic and average transaction amount resulting from the refinement of the company's merchandise offerings, including tobacco products and perishables, and increased utilization of store square footage. In addition, both home and apparel categories contributed to same-store sales growth. The company reported net income of $1.065 billion, or diluted EPS of $3.49, for fiscal year 2014 compared to net income of $1.025 billion, or diluted EPS of $3.17, for fiscal year 2013. Adjusted net income increased 3% to $1.069 billion in fiscal 2014 compared to adjusted net income of $1.037 billion in fiscal 2013. Adjusted EPS increased 9% to $3.50 in fiscal 2014 compared to adjusted EPS of $3.20 in fiscal 2013. Total capital expenditures were $374 million. Significant components of property and equipment purchases in 2014 included the following approximate amounts: $127 million for improvements, upgrades, remodels and relocations of existing stores; $102 million for new leased stores; $64 million for distribution and transportation related projects; $38 million for stores built by the Company; and $35 million for information systems upgrades and technology-related projects. Operating profit was $1,769,093,000 against $1,736,185,000 for the same period of last year. Income before income taxes was $1,680,861,000 against $1,628,330,000 for the same period of last year. The company generated significant cash flow from operations of $1.3 billion, an increase of more than 8%.
On March 10, 2015, the Board of Directors approved the initiation of a regular quarterly cash dividend to shareholders. The first quarter dividend of $0.22 per share will be payable on April 22, 2015 to shareholders of record of the company's common stock on April 8, 2015. While the Board of Directors intends to continue regular quarterly cash dividends, the declaration and payment of future cash dividends are subject to the Board's discretion.
For the 2015 fiscal year, the company expects total sales to increase 8 to 9% over the 2014 fiscal year. Same-store sales are expected to increase 3 to 3.5%. Operating profit for 2015 is expected to increase 7 to 9% over the 2014 adjusted operating profit. The company expects full year interest expense to be approximately $90 million. The full year 2015 effective tax rate of approximately 37 to 38% assumes the reenactment of the WOTC, consistent with 2014. Diluted EPS for the fiscal year is expected to be approximately $3.85 to $3.95, based on approximately 295 million weighted average diluted shares, assuming share repurchases of approximately $1.3 billion. Capital expenditures are expected to be in the range of $500 million to $550 million in 2015. Approximately 35% will be for improvements, upgrades, remodels and relocations of existing stores; 30% for new leased stores or stores built by us; 25% for distribution center and transportation-related items; and 10% for information systems upgrades and technology-related projects.
The company plans to open approximately 730 new stores in 2015, or 6% square footage growth, and relocate or remodel 875 stores. Given the company's strong new store returns that have been consistently proven over the last six years, Dollar General plans to accelerate new store openings to 7% square footage growth in 2016.