FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: April 27, 1999
Date of Earliest Event Reported: April 22, 1999
DOLLAR TREE STORES, INC.
(Exact name of registrant as specified in its charter)
COMMISSION FILE NUMBER: 0-25464
VIRGINIA 54-1387365
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
500 Volvo Parkway
Chesapeake, VA 23320
(Address of principal executive offices)
Registrant's telephone number, including area code: (757) 321-5000
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ITEM 5: OTHER EVENTS
On April 22, 1999, Dollar Tree issued the following press release regarding its
first quarter earnings.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
DATE: April 27, 1999
DOLLAR TREE STORES, INC.
By: /s/ Frederick C. Coble
-----------------------------------
Frederick C. Coble
Senior Vice President, Chief Financial Officer
DOLLAR TREE STORES, INC. REPORTS
EARNINGS PER SHARE OF $0.16 FOR THE FIRST QUARTER ENDING MARCH 31, 1999
CHESAPEAKE, Virginia -- April 22, 1999 -- Dollar Tree Stores, Inc. (Nasdaq:
DLTR), the nation's largest $1.00 discount variety store chain, reported net
earnings for the quarter ended March 31, 1999, of $10.7 million on sales of
$221.2 million, compared to net earnings of $7.7 million on sales of $175.5
million reported for the first quarter of 1998. Earnings per share increased to
$0.16 in the first quarter of 1999 from $0.12 in the same period last year.
Sales increased $45.7 million over sales for the first quarter of 1998,
primarily due to new store openings. In addition, sales in comparable stores
increased by 5.4%, largely as a result of increased Easter sales during the
quarter due to the shift in timing of this holiday.
Gross margin for the quarter was unchanged at 35.7% for the first quarter
of 1999 compared to the first quarter of 1998. Operating expenses decreased as a
percentage of net sales to 27.6% for the first quarter of 1999 from 28.1%
reported for the first quarter of 1998. This decrease resulted primarily from
reductions in corporate expenses and the leveraging of fixed costs, due to the
5.4% comparable store sales increase.
As previously disclosed, shipping rates from Asia are expected to increase
on May 1, 1999. The proposed rates could increase costs by up to $4 million in
1999, which management believes will be substantially offset by other cost
savings, as anticipated in the Company's current business plan.
Dollar Tree Stores, Inc., is a discount variety store chain offering a wide
assortment of quality everyday general merchandise, in many traditional variety
store categories, at the $1.00 price point. As of March 31, 1999, Dollar Tree
Stores operates 1,203 stores in 32 states, having opened 48
new stores and closed one store in the first quarter.
This news release contains forward-looking statements regarding Dollar Tree,
such as estimated or expected increases in shipping costs and other
substantially offsetting cost savings. Such forward-looking statements are
subject to risks and uncertainties, including various factors that may cause the
Company's actual results to differ materially from anticipated results or other
expectations described in such statements. Additionally, forward-looking
statements are subject, but not limited, to the risks indicated in the Company's
filings with the Securities and Exchange Commission.
CONTACT: Dollar Tree Stores, Inc., Chesapeake
Eric Coble or Erica Robb, 757/321-5000
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DOLLAR TREE STORES, INC.
Condensed Consolidated Income Statements
For the Three Months Ended March 31
(Amounts in thousands, except per share data)
(Unaudited)
<CAPTION>
First Quarter
1999 1998
<S> <C> <C>
Net sales $221,202 $175,531
Cost of Sales 142,125 112,867
Gross Profit 79,077 62,664
35.7% 35.7%
SGA expenses 54,941 44,910
24.8% 25.6%
Depr./amort. 6,211 4,398
2.8% 2.5%
Interest 496 735
0.2% 0.4%
Earnings before
income taxes 17,429 12,621
7.9% 7.2%
Income tax expense 6,711 4,890
Net earnings 10,718 7,731
4.8% 4.4%
Earnings per share:
Basic $ 0.18 $ 0.13
Weighted average
number of shares 61,041 60,418
Diluted $ 0.16 $ 0.12
Weighted average
number of shares 67,407 66,819
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DOLLAR TREE STORES, INC.
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
<CAPTION>
March 31, Dec. 31, March 31,
1999 1998 1998
<S> <C> <C> <C>
Cash and cash equivalents $ 17,799 $ 71,119 $ 5,828
Merchandise inventories 174,100 140,949 148,913
Other current assets 13,538 13,996 12,589
------ ------ ------
Total current assets 205,437 226,064 167,330
------- ------- -------
Net property and equipment 126,442 122,385 92,938
Goodwill, net 42,069 42,551 43,996
Other assets, net 8,328 8,621 4,607
----- ----- -----
Total assets $382,276 $399,621 $308,871
======= ======= =======
Current portion
of long-term debt $ 18,500 $ 16,500 $ 10,880
Accounts payable and
accrued expenses 57,986 78,501 74,322
Income taxes payable 5,936 21,353 3,898
----- ------ -----
Total current liabilities 82,422 116,354 89,100
------ ------- ------
Long-term debt 30,000 30,000 40,490
Other liabilities 8,516 9,043 6,662
----- ----- -----
Total liabilities 120,938 155,397 136,252
------- ------- -------
Shareholders' equity 261,338 244,224 172,619
------- ------- -------
Total liabilities and
shareholders' equity $382,276 $399,621 $308,871
======= ======= =======
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