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: January 26, 1999
Date of Earliest Event Reported: December 31, 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 January 25, 2000 Dollar Tree issued a press release reporting earnings
numbers for the fourth quarter and year ended December 31, 1999.
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: January 26, 2000
DOLLAR TREE STORES, INC.
By: /s/ Frederick C. Coble
-----------------------------------
Frederick C. Coble
Senior Vice President, Chief Financial Officer
PRESS RELEASE
DOLLAR TREE REPORTS 1999 EARNINGS PER SHARE OF $1.45 EXCLUDING MERGER RELATED
CHARGES
CHESAPEAKE, VA -- January 25, 2000 -- Dollar Tree Stores, Inc. (Nasdaq: DLTR),
the nation's leading $1.00 price point retailer, reported that 1999 pro forma
net earnings, excluding merger related charges, increased 32.2% to $98.8
million, resulting in pro forma earnings per share of $1.45 for the year. For
the fourth quarter of 1999, net earnings increased to $56.6 million, or $0.83
per share.
Net of merger related charges resulting from the merger with Only $One
in 1999 and from the merger with Step Ahead in 1998, pro forma earnings per
share for the year were $1.44, compared to pro forma earnings per share of $1.04
for the prior year.
Sales for the year increased 26.9% to a record $1,198.0 million and
sales in comparable stores rose 5.6%. Gross margin for the year, excluding
merger related costs, increased to 37.7% of net sales compared to 37.6% for
1998. The slight increase in gross margin is due in part to reductions in
merchandise and distribution costs, offset by an increase in freight costs.
Operating expenses, excluding depreciation, amortization and merger related
expenses, decreased as a percentage of net sales to 21.7% from 22.1% for the
prior year, primarily due to leverage on fixed costs and a slight improvement in
payroll related costs, also as a result of leverage.
Sales for the fourth quarter of 1999 increased 29.9% to $452.3 million
and sales at comparable stores increased 8.3%. Gross margin for the quarter
declined as a percentage of sales to 39.5% compared to 39.9%, excluding merger
related costs recognized in 1998. This decrease is a result of increased freight
costs related to seasonal merchandise. Operating expenses, excluding
depreciation, amortization and merger related expenses, decreased as a
percentage of net sales to 17.3% from 17.8% for the prior year period, primarily
due to leverage on fixed costs, including payroll related costs.
"We are proud to report another year of strong sales and earnings
growth, the result of what was a busy year for Dollar Tree," remarked Macon
Brock, President and CEO. "In 1999, we
o opened a net 204 stores, 35 of which were in our larger store
format;
o expanded or remodeled 59 stores;
o converted and remodeled the 66 acquired California stores and
integrated West Coast operations;
o acquired the Only $One stores in central New York;
o transitioned to a new, fully-automated distribution center in
Olive Branch, Mississippi; and
o completed a new distribution center in Stockton, California.
"We have already launched the new year by starting operations at our
newest distribution facility in Stockton on January 17 and by announcing the
construction of a facility in Savannah, Georgia. Our growth plans remain on
track with a 23% to 25% square footage growth target."
For 2000, Dollar Tree expects to open 225 to 235 stores, of which
approximately 40% to 50% will be in the larger store format, averaging
approximately 9,000 to 10,000 square feet. The Company also plans to relocate or
expand approximately 100 stores during 2000.
Dollar Tree Stores, Inc. is the nation's largest $1.00 discount store
chain, operating 1,383 stores in 33 states as of December 31, 1999.
This press release contains "forward-looking statements" as that term is
used in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements address future events, developments or results.
They include statements preceded by, followed by or including words such as
"believe," "anticipate," "expect," "intend," "plan" or "estimate." Our
forward-looking statements include statements regarding our anticipated new
store openings in 2000 and our growth plans. These forward-looking
statements are subject to numerous risks, uncertainties and assumptions
potentially affecting Dollar Tree, including the factors described under
"Risk Factors" in our latest prospectus filed with the SEC and in
Management's Discussion and Analysis of Financial Condition and Results of
Operations in our quarterly and annual reports. Our forward-looking
statements could turn out to be materially different from those we discuss
or imply in this press release. We have no obligation to publicly update or
revise our forward-looking statements after the date hereof.
CONTACT: Dollar Tree Stores, Inc., Chesapeake
Eric Coble or Erica Robb, 757/321-5000
http://www.DollarTree.com
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<CAPTION>
DOLLAR TREE STORES, INC.
Condensed Consolidated Income Statements
For the Three Months and Year Ended December 31
(Amounts in thousands, except per share data)
(Unaudited)
Fourth Quarter Year-to-Date
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Net sales $452,329 $348,307 $1,197,960 $944,123
Cost of Sales 273,435 209,327 746,463 589,081
Merger costs -- 1,301 443 1,301
Gross Profit 178,894 137,679 451,054 353,741
39.5% 39.5% 37.7% 37.5%
SGA expenses 78,066 62,010 259,917 208,782
17.3% 17.8% 21.7% 22.1%
Merger expenses -- 4,024 607 4,024
Depr./amort. 7,954 6,041 28,117 20,518
Net interest expense 866 1,041 2,805 4,331
Earnings before
income taxes 92,008 64,563 159,608 116,086
20.3% 18.5% 13.3% 12.3%
Income tax expense* 35,423 25,737 61,595 45,558
Pro forma net earnings* 56,585 38,826 98,013 70,528
12.5% 11.1% 8.2% 7.5%
Pro forma earnings per share*:
Basic $ 0.91 $ 0.63 $ 1.58 $ 1.15
Weighted average
number of shares 62,048 61,342 61,839 61,185
Diluted $ 0.83 $ 0.57 $ 1.44 $ 1.04
Weighted average
number of shares 68,384 67,787 68,135 67,626
<FN>
* Amounts include a pro forma adjustment for C-corporation income taxes relating
to ONLY $ONE of $519 for the fourth quarter of 1998, and $505 and $1,025 for
year-to-date 1999 and 1998, respectively.
</FN>
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<CAPTION>
DOLLAR TREE STORES, INC.
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
Dec. 31, Dec. 31,
1999 1998
<S> <C> <C>
Cash and cash equivalents $ 176,514 $ 74,644
Merchandise inventories 174,582 142,706
Other current assets 18,399 14,160
------ ------
Total current assets 369,495 231,510
------- -------
Net property and equipment 144,023 122,503
Goodwill, net 42,394 42,551
Other assets, net 15,216 8,623
------ -----
Total assets 571,128 405,187
======= =======
Accounts payable 63,170 53,030
Income taxes payable 28,063 21,353
Current portion of long-term debt 26,500 16,500
Other current liabilities 32,217 26,445
------ ------
Total current liabilities 149,950 117,328
------- -------
Long-term debt 24,000 30,000
Other liabilities 36,207 9,043
------ -----
Total liabilities 210,157 156,371
------- -------
Shareholders' equity 360,971 248,816
------- -------
Total liabilities and
shareholders' equity 571,128 405,187
======= =======
STORE DATA:
Number of stores open at
end of period 1,383 1,179
Total gross square footage
(in thousands) 6,675 5,376
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