DOLLAR TREE REPORTS EARNINGS OF $0.22 PER SHARE
FOR THE FIRST QUARTER OF 2000
CHESAPEAKE, VA -- April 25, 2000 -- Dollar Tree Stores, Inc. (Nasdaq: DLTR), the
nation's leading $1.00 price point retailer, reported that earnings per share
increased to $0.22 for the first quarter of 2000, compared to pro forma earnings
per share of $0.16 for the first quarter of 1999. Sales for the quarter
increased 28.4% to $291.6 million compared to sales of $227.0 million for the
first quarter of 1999. Net earnings increased 33.6% to $14.8 million compared to
pro forma net earnings of $11.1 million for the prior year quarter.
As previously reported, net sales were beneficially impacted by a 4.6%
increase in comparable store net sales as a result of our continually improving
merchandise offerings and a wider offering of consumer basic goods. Gross margin
was unchanged at 35.6% for the first quarter of 2000 compared to the first
quarter of 1999. Slight increases in merchandise costs, which include freight
costs, were offset by the leverage of occupancy costs. Selling, general and
administrative expenses were 24.7%, as a percent of net sales, which is
consistent with the same period in the prior year. Interest income of $0.2
million resulted from a stronger cash position in the first quarter of 2000
compared to the first quarter of 1999.
Macon Brock, President and CEO, stated "First quarter results are
excellent, especially given the shift in the timing of the Easter selling
season. We expect our strong sales results to continue into the second quarter
when we will realize the majority of our Easter sales. In addition, we continue
working on our integration plan with Dollar Express and expect to consummate the
merger in the next few weeks."
Dollar Tree Stores, Inc. is the nation's leading $1.00 discount variety
store chain. As of March 31, 2000, Dollar Tree operates 1,434 stores in 35
states, having opened 52 new stores and closed one store in the first quarter.
This news release contains "forward-looking statements", as that term is used in
the Private Securities Litigation Reform Act of 1995, regarding the consummation
of the merger between Dollar Tree and Dollar Express and net sales for future
periods. Such forward-looking statements are subject to certain risks and
uncertainties that may cause the Company's actual results to differ materially
from anticipated results or other expectations described in such statements,
including a variety of factors that may cause the merger not to be consummated
and the failure of the combined company to integrate successfully. Additionally,
forward-looking statements are subject to, 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
http://www.DollarTree.com
DOLLAR TREE STORES, INC.
Condensed Consolidated Income Statements
For the Three Months Ended March 31
(Amounts in thousands, except per share data)
(Unaudited)
First Quarter
2000 1999
---- ----
Net sales $291,599 $227,044
Cost of sales 187,657 146,179
Gross profit 103,942 80,865
35.6% 35.6%
SGA expenses 72,139 56,125
24.7% 24.7%
Depreciation/amortization 7,862 6,220
Net interest income(expense) 154 (482)
Earnings before
income taxes 24,095 18,038
8.3% 7.9%
Income tax expense* 9,276 6,945
Net earnings* $14,819 $11,093
5.1% 4.9%
Pro forma earnings per share*:
Basic $ 0.24 $ 0.18
Weighted average
number of shares 62,237 61,543
Diluted $ 0.22 $ 0.16
Weighted average
number of shares 68,589 67,909
<FN>
* Amounts include a pro forma adjustment for C-corporation income taxes relating
to ONLY $ONE of $234 for the first quarter of 1999.
</FN>
DOLLAR TREE STORES, INC.
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
March 31, Dec. 31, March 31,
2000 1999 1999
Cash and cash equivalents $ 81,166 $ 176,514 $ 20,997
Merchandise inventories 255,239 174,582 176,615
Other current assets 16,289 18,399 13,724
------- ------- -------
Total current assets 352,694 369,495 211,336
------- ------- -------
Property and equipment, net 152,867 144,023 126,551
Goodwill, net 41,890 42,394 42,069
Other assets, net 14,984 15,216 8,328
------- ------- -------
Total assets $562,435 $571,128 $388,284
======= ======= =======
Accounts payable $ 63,880 $ 63,170 $ 42,538
Income taxes payable 12,058 28,063 5,936
Other current liabilities 20,331 32,217 16,605
Current portion
of long-term debt 25,025 26,500 18,500
------- ------- -------
Total current liabilities 121,294 149,950 83,579
------- ------- -------
Long-term debt 24,000 24,000 30,000
Other liabilities 34,835 36,207 8,516
------- ------- -------
Total liabilities 180,129 210,157 122,095
------- ------- -------
Shareholders' equity 382,306 360,971 266,189
------- ------- -------
Total liabilities and
shareholders' equity $562,435 $571,128 $388,284
======= ======= =======
STORE DATA:
Number of stores open at
end of period 1,434 1,383 1,227
Total gross square footage
(in thousands) 7,056 6,675 5,742