Exhibit 99.1
WAL-MART
STORES, INC.
479/273-4314 www.walmartstores.com/news/
FOR IMMEDIATE RELEASE | Investor Relations Contacts | |
| Investor Relations 479/273-8446 | ||
| Jay Fitzsimmons 479/273-6445 | ||
| Pauline Tureman 479/277-9558 | ||
| Media Relations Contact | ||
| Gus Whitcomb 479/273-4314 | ||
| Pre-recorded Conference Call | ||
| 402/998-1748 |
Wal-Mart Reports Record Sales and Earnings
BENTONVILLE, Ark., May 13, 2004 — Wal-Mart Stores, Inc. reported record first quarter earnings and sales for the quarter ended April 30, 2004. Net sales were $64.8 billion, an increase of 14.2 percent over the first quarter of fiscal 2004. Income from continuing operations for the quarter was $2.2 billion, an increase of 18.4 percent from $1.8 billion in the first quarter of fiscal 2004. Earnings per share from continuing operations were $0.50, up from $0.41 per share in the same prior year quarter.
Lee Scott, President and CEO said, “I am encouraged by the strengthening economy and the improving apparel environment. Although I remain concerned about the impact higher gasoline and petroleum prices will have on our customers, I am still optimistic about the balance of the year.”
Net sales were as follows:
(Dollars in billions)
| Quarter Ended April 30, | |||||||||
| 2004 | 2003 | Percent Change | |||||||
Wal-Mart Stores | $ | 43.571 | $ | 38.618 | 12.8 | % | |||
SAM’S CLUB | 8.641 | 7.822 | 10.5 | % | |||||
International | 12.551 | 10.278 | 22.1 | % | |||||
Total Company | $ | 64.763 | $ | 56.718 | 14.2 | % | |||
1
Total U.S. comparable sales for the quarter increased 6.4 percent, which is represented by a 5.9 percent comp increase for Wal-Mart Stores and 8.8 percent comp increase for SAM’S CLUB.
Wal-Mart Stores Segment:
For the first quarter, the Wal-Mart Stores segment, including Supercenters, had operating profit (profit before interest, unallocated corporate expenses, and income taxes) of $3.121 billion, an increase of 13.4 percent compared with $2.752 billion in the first quarter of fiscal 2004.
SAM’S CLUB Segment:
The SAM’S CLUB segment had an operating profit for the quarter of $267 million, an increase of 30.9 percent compared with $204 million in the first quarter of fiscal 2004.
International Segment:
The International segment had an operating profit of $563 million for the most recent quarter, an increase of 46.6 percent compared with $384 million in the first quarter of fiscal 2004.
After this earnings release has been furnished to the SEC, a pre-recorded call offering additional comments on the quarter will be available to all investors. You may listen to this call by dialing 402-998-1748. The information included in this release and our pre-recorded phone call will be available on our web site at www.walmartstores.com, news, news releases, earnings and dividends.
Wal-Mart Stores, Inc. operates in all fifty states. Internationally, the Company operates in Puerto Rico, Canada, China, Mexico, Brazil, Germany, the United Kingdom, Argentina and South Korea. Wal-Mart also owns a 37.8% interest in Seiyu, Ltd. with options to purchase up to 69.4% of that company by the end of December 2007. Seiyu operates over 400 stores located throughout Japan.
On May 23, 2003, Wal-Mart Stores, Inc. completed the sale of McLane Company, Inc. (“McLane”), then a wholly-owned subsidiary, to Berkshire Hathaway Inc. McLane has been accounted for as a discontinued operation.
The Company’s securities are listed on the New York and Pacific stock exchanges under the symbol WMT. Last year, Wal-Mart Stores, Inc. contributed more than $150 million to support communities and local non-profit organizations. Customers and associates raised an additional $70 million at Stores and Clubs. View additional information about the Company on our website at www.walmartstores.com or shop with us on-line at www.walmart.com and www.samsclub.com.
This release contains a statement as to the view of our Chief Executive Officer regarding the balance of the year and his concerns about the impact of gasoline and petroleum prices on Wal-Mart’s customers that Wal-Mart believes is a “forward-looking statement” within the meaning of the Private Securities Litigation Reform Act of 1995, and intended to enjoy the protection of the safe harbor for forward-looking statements provided by that Act. This forward-looking statement is subject to risks, uncertainties and other factors, domestically and internationally, including, the cost of goods, competitive pressures, geopolitical conditions, inflation, consumer spending patterns and debt levels, currency exchange fluctuations, trade restrictions, changes in tariff and freight rates, changes in the cost of energy, labor and insurance, interest rate fluctuations and other capital market conditions and other risks. We discuss certain of these factors more fully in other of our filings with the SEC, including our last Annual Report on Form 10-K filed with the SEC, and this release should be read in conjunction with that Annual Report on Form 10-K, and together with all our other filings, including current reports on Form 8-K, made with the SEC
2
through the date of this report. We urge you to consider all of these risks, uncertainties and other factors carefully in evaluating the forward-looking statement contained in this release. As a result of these matters, including changes in facts, assumptions not being realized or other circumstances, our actual results may differ materially from historical results or from anticipated results implied in the forward-looking statement contained in this release. That forward-looking statement is made only as of the date of this report, and we undertake no obligation to update it to reflect subsequent events or circumstances.
3
WAL-MART STORES, INC.
Consolidated Statements of Income
(Unaudited)
(Amounts in millions except per share data)
| Three Months Ended April 30, | ||||||||||||||
| 2004 | % of Net Sales | 2003 | % of Net Sales | |||||||||||
Net sales | $ | 64,763 | 100.00 | % | $ | 56,718 | 100.00 | % | ||||||
Other income, net | 680 | 1.05 | % | 506 | 0.89 | % | ||||||||
| 65,443 | 101.05 | % | 57,224 | 100.89 | % | |||||||||
Cost of sales | 49,969 | 77.16 | % | �� | 43,918 | 77.43 | % | |||||||
Operating, selling, general and administrative expenses | 11,869 | 18.33 | % | 10,216 | 18.01 | % | ||||||||
Interest: | ||||||||||||||
Debt | 201 | 0.31 | % | 175 | 0.31 | % | ||||||||
Capital leases | 65 | 0.10 | % | 75 | 0.13 | % | ||||||||
Interest income | (58 | ) | (0.09 | %) | (38 | ) | (0.07 | %) | ||||||
| 208 | 0.32 | % | 212 | 0.37 | % | |||||||||
Income from continuing operations before income taxes and minority interest | 3,397 | 5.24 | % | 2,878 | 5.07 | % | ||||||||
Provision for income taxes | 1,189 | 1.83 | % | 1,006 | 1.77 | % | ||||||||
Income from continuing operations before minority interest | 2,208 | 3.41 | % | 1,872 | 3.30 | % | ||||||||
Minority interest | (42 | ) | (0.07 | %) | (42 | ) | (0.07 | %) | ||||||
Income from continuing operations | 2,166 | 3.34 | % | 1,830 | 3.23 | % | ||||||||
Income from discontinued operation, net of tax | — | 0.00 | % | 31 | 0.05 | % | ||||||||
Net income | $ | 2,166 | 3.34 | % | $ | 1,861 | 3.28 | % | ||||||
Net income per common share: | ||||||||||||||
Basic net income per common share | ||||||||||||||
Income from continuing operations | $ | 0.50 | $ | 0.41 | ||||||||||
Income from discontinued operation | — | 0.01 | ||||||||||||
Basic net income per common share | $ | 0.50 | $ | 0.42 | ||||||||||
Diluted net income per common share | ||||||||||||||
Income from continuing operations | $ | 0.50 | $ | 0.41 | ||||||||||
Income from discontinued operation | — | 0.01 | ||||||||||||
Diluted net income per common share | $ | 0.50 | $ | 0.42 | ||||||||||
Weighted-average number of common shares: | ||||||||||||||
Basic | 4,294 | 4,386 | ||||||||||||
Diluted | 4,302 | 4,395 | ||||||||||||
Certain reclassifications have been made to the prior period to conform to the current presentation.
4
WAL-MART STORES, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(Amounts in millions)
SUBJECT TO RECLASSIFICATION
| April 30, 2004 | April 30, 2003 | January 31, 2004 | ||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 3,828 | $ | 2,468 | $ | 5,199 | ||||||
Receivables | 1,230 | 989 | 1,254 | |||||||||
Inventories | 28,320 | 26,004 | 26,612 | |||||||||
Prepaid expenses and other | 1,375 | 961 | 1,356 | |||||||||
Current assets of discontinued operation | — | 1,144 | — | |||||||||
Total current assets | 34,753 | 31,566 | 34,421 | |||||||||
Property, plant and equipment | 73,619 | 62,898 | 70,795 | |||||||||
Accumulated depreciation | (16,511 | ) | (13,843 | ) | (15,594 | ) | ||||||
Property, plant and equipment, net | 57,108 | 49,055 | 55,201 | |||||||||
Property under capital leases, net | 3,359 | 3,211 | 3,329 | |||||||||
Goodwill and other acquired intangible assets, net | 10,134 | 9,317 | 9,882 | |||||||||
Other assets and deferred charges | 2,226 | 2,687 | 2,079 | |||||||||
Other assets of discontinued operation | — | 740 | — | |||||||||
Total assets | $ | 107,580 | $ | 96,576 | $ | 104,912 | ||||||
LIABILITIES & SHAREHOLDERS’ EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Commercial paper | $ | 4,161 | $ | 857 | $ | 3,267 | ||||||
Accounts payable | 19,001 | 17,408 | 18,932 | |||||||||
Accrued liabilities | 9,937 | 8,669 | 10,742 | |||||||||
Accrued income taxes | 1,588 | 1,143 | 1,377 | |||||||||
Long-term debt due within one year | 4,548 | 3,545 | 2,904 | |||||||||
Obligations under capital leases due within one year | 189 | 160 | 196 | |||||||||
Current liabilities of discontinued operation | — | 299 | — | |||||||||
Total current liabilities | 39,424 | 32,081 | 37,418 | |||||||||
Long-term debt | 17,468 | 17,939 | 17,102 | |||||||||
Long-term obligations under capital leases | 3,032 | 3,000 | 2,997 | |||||||||
Deferred income taxes and other | 2,171 | 1,971 | 2,288 | |||||||||
Long-term liabilities of discontinued operation | — | 12 | — | |||||||||
Minority interest | 1,459 | 1,373 | 1,484 | |||||||||
Shareholders’ equity: | ||||||||||||
Common stock and capital in excess of par value | 2,613 | 2,405 | 2,566 | |||||||||
Retained earnings | 39,934 | 38,400 | 40,206 | |||||||||
Other accumulated comprehensive income | 1,479 | (605 | ) | 851 | ||||||||
Total shareholders’ equity | 44,026 | 40,200 | 43,623 | |||||||||
Total liabilities and shareholders’ equity | $ | 107,580 | $ | 96,576 | $ | 104,912 | ||||||
Certain reclassifications have been made to prior periods to conform to the current presentation.
5
WAL-MART STORES, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(Amounts in millions)
SUBJECT TO RECLASSIFICATION
| Three Months Ended April 30, | ||||||||
| 2004 | 2003 | |||||||
Cash flows from operating activities: | ||||||||
Net Income from continuing operations | $ | 2,166 | $ | 1,830 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 1,037 | 888 | ||||||
Decrease in accounts receivable | 137 | 554 | ||||||
Increase in inventories | (1,630 | ) | (1,521 | ) | ||||
Increase/(decrease) in accounts payable | (7 | ) | 1,005 | |||||
Decrease in accrued liabilities | (983 | ) | (134 | ) | ||||
Other | 147 | (8 | ) | |||||
Net cash provided by operating activities of continuing operations | 867 | 2,614 | ||||||
Net cash provided by operating activities of discontinued operation | — | 39 | ||||||
Net cash provided by operating activities | 867 | 2,653 | ||||||
Cash flows from investing activities: | ||||||||
Payments for property, plant and equipment | (2,645 | ) | (1,996 | ) | ||||
Disposal of assets | 242 | 79 | ||||||
Investment in international operations | (315 | ) | — | |||||
Other investing activities | 20 | 104 | ||||||
Net cash used in investing activities of continuing operations | (2,698 | ) | (1,813 | ) | ||||
Net cash used in investing activities of discontinued operation | — | (41 | ) | |||||
Net cash used in investing activities | (2,698 | ) | (1,854 | ) | ||||
Cash flows from financing activities: | ||||||||
Increase/(decrease) in commercial paper | 894 | (1,723 | ) | |||||
Dividends paid | (558 | ) | (395 | ) | ||||
Payment of long-term debt | (37 | ) | (996 | ) | ||||
Proceeds from issuance of long-term debt | 2,015 | 3,039 | ||||||
Purchase of Company stock | (1,943 | ) | (816 | ) | ||||
Other financing activities | 22 | (69 | ) | |||||
Net cash provided by/(used in) financing activities | 393 | (960 | ) | |||||
Effect of exchange rates on cash | 67 | (109 | ) | |||||
Net decrease in cash and cash equivalents | (1,371 | ) | (270 | ) | ||||
Cash and cash equivalents at beginning of period* | 5,199 | 2,758 | ||||||
Cash and cash equivalents at end of period ** | $ | 3,828 | $ | 2,488 | ||||
| * | Includes cash and cash equivalents of discontinued operation of $22 million at January 31, 2003 |
| ** | Includes cash and cash equivalents of discontinued operation of $20 million at April 30, 2003 |
Certain reclassifications have been made to the prior period to conform to the current presentation.
6
