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EXHIBIT 99.1
NEWS FROM:
FOR IMMEDIATE RELEASE DOLLAR GENERAL CORPORATION
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CONTACT: Dollar General Corporation, Goodlettsville TN 37072-2170
TELEPHONE (615) 855-4000 Investor Contact Kiley Fleming, 615/855-5525
MEDIA CONTACT: Karen Moss, 615/855-5210 http://www.dollargeneral.com
DOLLAR GENERAL REPORTS SECOND QUARTER SALES AND EARNINGS
GOODLETTSVILLE, Tenn.--August 8, 2000--Dollar General Corporation (NYSE: DG)
today reported earnings per diluted share of $0.12 for the second quarter ended
July 28, 2000, flat when compared with the second quarter last year. Total sales
increased 11.2% to $1,017.4 million from $915.2 million last year. Same-store
sales for the 13-week period decreased 2.6%.
"In the past four months, we have done a significant reset of all stores to
position higher customer flow and inventory turn. All aisles have been widened
by approximately 25% while also providing 50% more selling area to seasonal and
opportunistic merchandise," said Cal Turner, Jr., Chairman and CEO. "Core
merchandise has also been enhanced by adding 600 new items including select
national brands desired by our customers. New scanning technology has been
placed at the checkout and new shelf ordering processes instituted. This is a
bunch of work, but it gets us ready for higher sales per square foot in the
future."
For the quarter, gross margin equaled $282.0 million compared with $249.6 in
1999. As a percentage of sales, gross margin was 27.71% compared with 27.27%
last year. Operating expenses for the quarter equaled $216.0 million, or 21.23%
of sales, compared with $182.4 million, or 19.93% of sales, in the same period a
year ago. Net income for the quarter decreased 5.5% to $39.3 million, compared
with $41.6 million last year.
Year-to-date, capital expenditures equaled $142.0 million, compared with $73.4
million in the same period last year. Capital expenditures for the quarter
included investments in new store openings and distribution center projects. The
company opened 220 new stores, remodeled or relocated 36 stores and closed 11
stores during the quarter. At quarter end, the company operated 4,719 stores.
Total LIFO merchandise inventories increased 11.7% to $1,062.2 million from
$951.1 million as a result of operating 721 more stores and operating one
additional distribution center. For the quarter, interest expense increased to
$4.3 million compared with $1.9 million.
Dollar General operates more than 4,719 neighborhood stores in 25 states with
distribution centers in Florida, Georgia, Kentucky, Mississippi, Missouri,
Oklahoma and Virginia.
This press release contains historical and forward-looking information. The
forward-looking statements are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. The Company believes the
assumptions underlying these forward-looking statements are reasonable; however,
any of the assumptions could be inaccurate, and therefore, actual results may
differ materially from those projected in the forward-looking statements as a
result of certain risks and uncertainties, including, but not limited to,
general transportation and distribution delays or interruptions, inventory risks
due to shifts in market demand, changes in product mix, interruptions in
suppliers' business, fuel price and interest rate fluctuations, and costs and
delays associated with building, opening and operating new distribution centers
("DCs") and stores. The Company undertakes no obligation to publicly release any
revisions to any forward-looking statements contained herein to reflect events
or circumstances occurring after the date of this report or to reflect the
occurrence of unanticipated events.
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DOLLAR GENERAL CORPORATION
INCOME STATEMENTS
(000's)
(UNAUDITED)
<TABLE>
<CAPTION>
-- FOR THE SECOND QUARTER ENDED --
JULY 28, 2000 JULY 30, 1999
------------- -------------
<S> <C> <C> <C> <C>
Sales $1,017,418 100.00% $915,210 100.00%
Cost of Sales 735,445 72.29 665,628 72.73
---------- ------ -------- ------
Gross Margin 281,973 27.71 249,582 27.27
Operating Expenses 215,985 21.23 182,407 19.93
---------- ------ -------- ------
Operating Income 65,988 6.48 67,175 7.34
Interest Expense 4,326 0.42 1,897 0.21
---------- ------ -------- ------
Pre-Tax Income 61,662 6.06 65,278 7.13
Taxes 22,352 2.20 23,663 2.59
---------- ------ -------- ------
Net Income $ 39,310 3.86% $ 41,615 4.55%
========== ====== ======== ======
Diluted earnings per share $ 0.12 $ 0.12
Weighted average diluted
shares 333,038 338,836
</TABLE>
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DOLLAR GENERAL CORPORATION
INCOME STATEMENTS
(000's)
(UNAUDITED)
<TABLE>
<CAPTION>
-- FOR THE YEAR-TO-DATE --
JULY 28, 2000 JULY 30, 1999
------------- -------------
<S> <C> <C> <C> <C>
Sales $2,014,497 100.00% $1,759,803 100.00%
Cost of Sales 1,459,815 72.47 1,284,274 72.98
---------- ------ ---------- ------
Gross Margin 554,682 27.53 475,529 27.02
Operating Expenses 417,863 20.74 350,458 19.91
---------- ------ --------- ------
Operating Income 136,819 6.48 125,071 7.11
Interest Expense 5,604 0.42 2,776 0.16
---------- ------ --------- ------
Pre-Tax Income 131,215 6.51 122,295 6.95
Taxes 47,565 2.36 44,332 2.52
---------- ------ --------- ------
Net Income $ 83,650 4.15% $ 77,963 4.43%
========== ====== ========= ======
Diluted earnings per share $ 0.25 $ 0.23
Weighted average diluted
shares 333,885 337,514
</TABLE>
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DOLLAR GENERAL CORPORATION
CONSOLIDATED BALANCE SHEETS
($000'S)
(UNAUDITED)
<TABLE>
<CAPTION>
JULY 28 JULY 30
2000 1999
---- ----
<S> <C> <C>
Current Assets:
Cash and cash equivalents $ 14,040 $ 25,303
Merchandise inventories 1,062,175 951,109
Deferred income taxes 6,936 2,664
Other current assets 81,205 49,767
----------- -----------
TOTAL CURRENT ASSETS 1,164,356 1,028,843
Property & equipment, at cost 736,444 523,601
Less: Accumulated depreciation 286,774 219,978
----------- -----------
449,670 303,623
Other assets 12,936 9,617
----------- -----------
TOTAL ASSETS $ 1,626,962 $ 1,342,083
=========== ===========
Current Liabilities:
Current portion of long-term debt $ 2,334 $ 1,420
Short-term borrowings 21,992 148,494
Accounts payable 277,815 209,868
Accrued expenses 121,420 104,405
Income taxes 0 21,142
----------- -----------
TOTAL CURRENT LIABILITIES 423,561 485,329
Long-term obligations 205,369 1,507
Deferred income taxes 51,673 18,089
----------- -----------
TOTAL LIABILITIES 680,603 504,925
Shareholders' Equity:
Preferred stock 0 858
Common stock 164,548 133,116
Additional paid-in capital 245,341 440,482
Retained earnings 536,470 463,229
----------- -----------
946,359 1,037,685
Less: Treasury stock 0 200,527
----------- -----------
TOTAL SHAREHOLDERS' EQUITY 946,359 837,158
----------- -----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 1,626,962 $ 1,342,083
=========== ===========
</TABLE>
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DOLLAR GENERAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(000'S)
(UNAUDITED)
<TABLE>
<CAPTION>
-- For the Year-to-Date --
July 28 July 30
2000 1999
---- ----
<S> <C> <C>
Cash flows provided by (used in) operating activities:
Net income $ 83,650 $ 77,963
Adjustments to reconcile net income to net cash
provided by (used in) operating activities
Depreciation and amortization 37,952 30,296
Deferred income taxes (791) (12,155)
Change in operating assets and liabilities:
Merchandise inventories (76,460) (139,387)
Other Current Assets (36,169) (7,389)
Accounts payable (56,739) (47,891)
Accrued expenses 45 (68,420)
Income taxes (15,135) (2,683)
Other (3,216) 823
--------- ---------
Net cash provided by (used in)
operating activities (66,863) (168,843)
--------- ---------
Cash flows provided by (used in) investing activities:
Purchase of property and equipment (142,044) (73,433)
Proceeds from sale of property and equipment 117 61,941
--------- ---------
Net cash provided by (used in)
investing activities (141,927) (11,492)
--------- ---------
Cash flows provided by (used in) financing activities:
Issuance of short-term borrowings 249,595 222,814
Repayments of short-term borrowings (227,603) (74,320)
Issuance of long-term debt 206,677 2,086
Repayments of long-term debt (1,416) (670)
Payment of cash dividend (21,079) (17,004)
Proceeds from exercise of stock options 15,926 26,523
Repurchase of common stock (65,548) 0
Tax effect of stock options 7,489 23,915
Other 0 0
--------- ---------
Net cash provided by (used in)
financing activities 164,041 183,344
--------- ---------
Net increase (decrease) in cash and cash
equivalents (44,749) 3,009
Cash and cash equivalents beginning of period 58,789 22,294
--------- ---------
Cash and cash equivalents end of period $ 14,040 $ 25,303
========= =========
</TABLE>
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