DOLLAR TREE STORES, INC. -- As Previously Reported
HISTORICAL QUARTERLY FINANCIAL DATA
BALANCE SHEET INFORMATION
(In thousands)
(Unaudited)
March 31, June 30, Sept. 30, Dec. 31,
1998 1998 1998 1998
--------- -------- --------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 8,002 $ 8,932 $ 9,355 $ 74,644
Merchandise inventories 150,399 179,237 210,747 142,706
Deferred tax asset 5,347 6,238 6,664 6,709
Prepaid expenses and other
current assets 7,249 6,079 9,379 7,451
------- ------- ------- -------
Total current assets 170,997 200,486 236,145 231,510
------- ------- ------- -------
Net property and equipment 93,060 98,459 114,055 122,503
Deferred tax asset 2,092 2,457 2,617 2,194
Goodwill, net 43,996 43,514 43,033 42,551
Other assets, net 2,515 2,355 2,279 6,429
------- ------- ------- -------
TOTAL ASSETS $312,660 $347,271 $398,129 $405,187
======= ======= ======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 49,359 $ 53,739 $ 63,836 $ 53,030
Income taxes payable 3,898 2,284 - 21,353
Other current liabilities 25,155 19,933 18,529 25,988
Current portion of long-term debt 10,880 20,964 53,982 16,500
Current installments of obligations
under capital leases 294 270 392 457
------- ------- ------- -------
Total current liabilities 89,586 97,190 136,739 117,328
------- ------- ------- -------
Long-term debt, excluding current portion 40,490 53,000 50,000 30,000
Obligations under capital leases,
excluding current installments 742 674 2,191 2,469
Other liabilities 5,920 5,971 5,849 6,574
------- ------- ------- -------
Total liabilities 136,738 156,835 194,779 156,371
------- ------- ------- -------
Shareholders' equity 175,922 190,436 203,350 248,816
------- ------- ------- -------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $312,660 $347,271 $398,129 $405,187
======= ======= ======= =======
SEE ACCOMPANYING FOOTNOTES.
1
DOLLAR TREE STORES, INC. -- As Previously Reported
HISTORICAL QUARTERLY FINANCIAL DATA
INCOME STATEMENT INFORMATION
(In thousands, except store and per share data)
(Unaudited)
Year
Quarter Ended Ended
March 31, June 30, Sept. 30, Dec. 31, Dec. 31,
1998 1998 1998 1998 1998
--------- -------- --------- -------- --------
Net sales $180,599 $205,209 $210,008 $348,306 $944,122
Cost of sales 116,610 131,130 132,014 209,326 589,080
Merger related costs - - - 1,301 1,301
------- ------- ------- ------- -------
Gross profit 63,989 74,079 77,994 137,679 353,741
------- ------- ------- ------- -------
Selling, general and administrative expenses:
Operating expenses 45,997 49,463 51,312 62,010 208,782
Merger related expenses - - - 4,024 4,024
Depreciation and amortization 4,414 4,889 5,174 6,041 20,518
------- ------- ------- ------- -------
Total selling, general and
administrative expenses 50,411 54,352 56,486 72,075 233,324
------- ------- ------- ------- -------
Operating income 13,578 19,727 21,508 65,604 120,417
Interest income 276 72 70 178 596
Interest expense (984) (1,123) (1,601) (1,219) (4,927)
------- ------- ------- ------- -------
Income before income taxes 12,870 18,676 19,977 64,563 116,086
Provision for income taxes 4,890 6,870 7,555 25,218 44,533
------- ------- ------- ------- -------
Net income $ 7,980 $ 11,806 $ 12,422 $ 39,345 $ 71,553
======= ======= ======= ======= =======
Net income per share:
Basic net income per share $ 0.13 $ 0.19 $ 0.20 $ 0.64 $ 1.17
======= ======= ======= ======= =======
Diluted net income per share $ 0.12 $ 0.17 $ 0.18 $ 0.58 $ 1.06
======= ======= ======= ======= =======
Pro forma income data:
Net income $ 7,980 $ 11,806 $ 12,422 $ 39,345 $ 71,553
Pro forma adjustment for
C-corporation income taxes 96 299 111 519 1,025
------- ------- ------- ------- -------
Pro forma net income $ 7,884 $ 11,507 $ 12,311 $ 38,826 $ 70,528
======= ======= ======= ======= =======
Pro forma basic net income
per share $ 0.13 $ 0.19 $ 0.20 $ 0.63 $ 1.15
======= ======= ======= ======= =======
Pro forma diluted net income
per share $ 0.12 $ 0.17 $ 0.18 $ 0.57 $ 1.04
======= ======= ======= ======= =======
Weighted average number of
common shares outstanding 60,920 61,182 61,296 61,342 61,185
======= ======= ======= ======= =======
Weighted average number of common
shares and dilutive potential
common shares outstanding 67,321 67,644 67,750 67,787 67,626
======= ======= ======= ======= =======
STORE DATA:
Comparable store net
sales increase (5) 6.4% 11.9% 5.5% 5.2% 6.8%
Number of stores open at end of
period 1,003 1,063 1,140 1,179 1,179
Total gross square footage
(in thousands) (4) 4,368 4,716 5,122 5,330 5,330
SEE ACCOMPANYING FOOTNOTES.
2
DOLLAR TREE STORES, INC. -- As Previously Reported
HISTORICAL QUARTERLY FINANCIAL DATA
BALANCE SHEET INFORMATION
(In thousands)
(Unaudited)
March 31, June 30, Sept. 30, Dec. 31, Mar. 31,
1999 1999 1999 1999 2000
--------- -------- --------- -------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 20,997 $ 36,502 $ 19,173 $176,514 $ 81,166
Merchandise inventories 176,615 187,247 252,472 174,582 255,239
Deferred tax asset 7,099 7,615 3,667 5,398 5,056
Prepaid expenses and other
current assets 6,625 7,656 8,627 13,001 11,233
------- ------- ------- ------- -------
Total current assets 211,336 239,020 283,939 369,495 352,694
------- ------- ------- ------- -------
Net property and equipment 126,551 134,195 139,933 144,023 152,867
Deferred tax asset 2,291 2,420 1,433 - -
Goodwill, net 42,069 41,587 41,106 42,394 41,890
Other assets, net 6,037 5,849 15,947 15,216 14,984
------- ------- ------- ------- -------
TOTAL ASSETS $388,284 $423,071 $482,358 $571,128 $562,435
======= ======= ======= ======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 42,538 $ 60,322 $ 71,950 $ 63,170 $ 63,880
Income taxes payable 5,936 4,936 1,206 28,063 12,058
Other current liabilities 16,139 17,645 19,668 29,034 17,067
Current portion of long-term debt 18,500 25,000 25,280 26,500 25,025
Current installments of obligations
under capital leases 466 479 3,114 3,183 3,264
------- ------- ------- ------- -------
Total current liabilities 83,579 108,382 121,218 149,950 121,294
------- ------- ------- ------- -------
Long-term debt, excluding current portion 30,000 24,000 25,120 24,000 24,000
Obligations under capital leases,
excluding current installments 2,289 2,185 29,197 28,375 27,591
Deferred tax liability - - - 1,182 1,010
Other liabilities 6,227 6,220 5,607 6,650 6,234
------- ------- ------- ------- -------
Total liabilities 122,095 140,787 181,142 210,157 180,129
------- ------- ------- ------- -------
Shareholders' equity 266,189 282,284 301,216 360,971 382,306
------- ------- ------- ------- -------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $388,284 $423,071 $482,358 $571,128 $562,435
======= ======= ======= ======= =======
SEE ACCOMPANYING FOOTNOTES.
3
DOLLAR TREE STORES, INC. -- As Previously Reported
HISTORICAL QUARTERLY FINANCIAL DATA
INCOME STATEMENT INFORMATION
(In thousands, except store and per share data)
(Unaudited)
Year Quarter
Quarter Ended Ended Ended
March 31, June 30, Sept. 30, Dec. 31, Dec. 31, March 31,
1999 1999 1999 1999 1999 2000
--------- -------- --------- -------- --------- ---------
Net sales $227,044 $253,216 $265,372 $452,328 $1,197,960 $291,599
Cost of sales 146,179 159,525 167,325 273,434 746,463 187,657
Merger related costs - 443 - - 443 -
------- ------- ------- ------- ------- -------
Gross profit 80,865 93,248 98,047 178,894 451,054 103,942
------- ------- ------- ------- ------- -------
Selling, general and administrative expenses:
Operating expenses 56,125 61,710 64,016 78,066 259,917 72,139
Merger related expenses - 607 - - 607 -
Depreciation and amortization 6,220 6,881 7,062 7,954 28,117 7,862
------- ------- ------- ------- ------- -------
Total selling, general and
administrative expenses 62,345 69,198 71,078 86,020 288,641 80,001
------- ------- ------- ------- ------- -------
Operating income 18,520 24,050 26,969 92,874 162,413 23,941
Interest income 414 256 205 842 1,717 1,776
Interest expense (896) (926) (992) (1,708) (4,522) (1,622)
------- ------- ------- ------- ------- -------
Income before income taxes 18,038 23,380 26,182 92,008 159,608 24,095
Provision for income taxes 6,711 8,876 10,080 35,423 61,090 9,276
------- ------- ------- ------- ------- -------
Net income $ 11,327 $ 14,504 $ 16,102 $ 56,585 $ 98,518 $ 14,819
======= ======= ======= ======= ======= =======
Net income per share:
Basic net income per share $ 0.18 $ 0.23 $ 0.26 $ 0.91 $ 1.59 $ 0.24
======= ======= ======= ======= ======= =======
Diluted net income per share $ 0.17 $ 0.21 $ 0.24 $ 0.83 $ 1.45 $ 0.22
======= ======= ======= ======= ======= =======
Pro forma income data:
Net income $ 11,327 $ 14,504 $ 16,102 $ 56,585 $ 98,518 14,819
Pro forma adjustment for
C-corporation income taxes 234 271 - - 505 -
------- ------- ------- ------- ------- -------
Pro forma net income $ 11,093 $ 14,233 $ 16,102 $ 56,585 $ 98,013 $ 14,819
======= ======= ======= ======= ======= =======
Pro forma basic net income
per share $ 0.18 $ 0.23 $ 0.26 $ 0.91 $ 1.58 $ 0.24
======= ======= ======= ======= ======= =======
Pro forma diluted net income
per share $ 0.16 $ 0.21 $ 0.24 $ 0.83 $ 1.54 $ 0.22
======= ======= ======= ======= ======= =======
Weighted average number of
common shares outstanding 61,543 61,815 61,959 62,048 61,839 62,237
======= ======= ======= ======= ======= =======
Weighted average number of common
shares and dilutive potential
common shares outstanding 67,909 68,035 68,221 68,384 68,135 68,589
======= ======= ======= ======= ======= =======
STORE DATA:
Comparable store net
sales increase (5) 5.2% 1.8% 5.6% 8.3% 5.6% 4.6%
Number of stores open at end of
period 1,227 1,291 1,344 1,383 1,383 1,434
Total gross square footage
(in thousands) (4) 5,589 5,962 6,390 6,675 6,675 7,056
SEE ACCOMPANYING FOOTNOTES.
4
DOLLAR EXPRESS, INC.
HISTORICAL QUARTERLY FINANCIAL DATA
BALANCE SHEET INFORMATION (1)
(In thousands)
(Unaudited)
March 31, June 30, Sept. 30, Dec. 31,
1998 1998 1998 1998
--------- -------- --------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 1,832 $ 2,530 $ 1,801 $10,070
Merchandise inventories 16,736 14,949 18,909 12,013
Prepaid expenses and other
current assets 325 580 822 481
------ ------ ------ ------
Total current assets 18,893 18,059 21,532 22,564
------ ------ ------ ------
Net property and equipment 7,787 8,193 8,358 8,958
Other assets, net 78 59 59 59
------ ------ ------ ------
TOTAL ASSETS $26,758 $26,311 $29,949 $31,581
====== ====== ====== ======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,979 $ 5,562 $ 6,597 $ 6,852
Other current liabilities 2,761 2,515 3,459 4,946
Current portion of long-term debt 72 70 70 138
Current installments of obligations
under capital leases 50 50 50 52
------ ------ ------ ------
Total current liabilities 10,862 8,197 10,176 11,988
------ ------ ------ ------
Long-term debt, excluding current portion 4,258 4,242 5,219 4,136
Obligations under capital leases,
excluding current installments 46 33 23 7
Other liabilities 2,194 2,115 1,999 1,691
------ ------ ------ ------
Total liabilities 17,360 14,587 17,417 17,822
------ ------ ------ ------
Shareholders' equity 9,398 11,724 12,532 13,759
------ ------ ------ ------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $26,758 $26,311 $29,949 $31,581
====== ====== ====== ======
SEE ACCOMPANYING FOOTNOTES.
5
DOLLAR EXPRESS, INC.
HISTORICAL QUARTERLY FINANCIAL DATA
INCOME STATEMENT INFORMATION (1)
(In thousands, except store data)
(Unaudited)
Year
Quarter Ended Ended
March 31, June 30, Sept. 30, Dec. 31, Dec. 31,
1998 1998 1998 1998 1998
--------- -------- --------- -------- --------
Net sales $25,042 $32,719 $27,844 $44,159 $129,764
Cost of sales 17,159 25,146 19,894 30,108 92,307
------ ------ ------ ------ -------
Gross profit 7,883 7,573 7,950 14,051 37,457
------ ------ ------ ------ -------
Selling, general and administrative expenses:
Operating expenses 6,524 4,728 5,930 8,233 25,415
Depreciation and amortization 473 426 509 537 1,945
------ ------ ------ ------ -------
Total selling, general and
administrative expenses 6,997 5,154 6,439 8,770 27,360
------ ------ ------ ------ -------
Operating income 886 2,419 1,511 5,281 10,097
Interest income 3 1 2 2 8
Interest expense (42) (75) (77) (96) (290)
------ ------ ------ ------ -------
Income before income taxes 847 2,345 1,436 5,187 9,815
Provision for income taxes 9 12 4 25 50
------ ------ ------ ------ -------
Net income $ 838 $ 2,333 $ 1,432 $ 5,162 $ 9,765
====== ====== ====== ====== =======
STORE DATA:
Comparable store net sales
increase(decrease) (5) (6.0%) 15.6% 3.9% 5.3% 4.4%
Number of stores open at end of
period 97 100 101 106 106
Total gross square footage
(in thousands) 614 640 663 721 721
SEE ACCOMPANYING FOOTNOTES.
6
DOLLAR EXPRESS, INC.
HISTORICAL QUARTERLY FINANCIAL DATA
BALANCE SHEET INFORMATION (1)
(In thousands)
(Unaudited)
April 1, July 1, Sept. 30, Dec. 30, March 30,
1999 1999 1999 1999 2000
-------- -------- -------- -------- -------
ASSETS
Current assets:
Cash and cash equivalents $ 3,664 $ 3,570 $ 2,907 $ 5,073 $ 2,545
Merchandise inventories 17,725 18,257 23,768 18,256 21,572
Deferred tax asset - - - 695 695
Income tax receivable - 516 1,583 - 1,556
Prepaid expenses and other
current assets 213 1,045 1,322 1,587 480
------ ------ ------ ------ ------
Total current assets 21,602 23,388 29,580 25,611 26,848
------ ------ ------ ------ ------
Net property and equipment 9,950 10,550 11,674 13,345 14,300
Deferred tax asset 2,090 2,090 2,090 1,652 1,652
Other assets, net 778 753 714 679 649
------ ------ ------ ------ ------
TOTAL ASSETS $34,420 $36,781 $44,058 $41,287 $43,449
====== ====== ====== ====== ======
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities:
Accounts payable $ 9,253 $ 6,986 $10,871 $ 10,708 $ 9,751
Income taxes payable 320 - - 1,130 -
Other current liabilities 3,533 5,379 4,487 5,908 6,195
Current portion of long-term debt 70 70 70 1,570 1,570
Current installments of obligations
under capital leases 46 33 23 7 -
------ ------ ------ ------ ------
Total current liabilities 13,222 12,468 15,451 19,323 17,516
------ ------ ------ ------ ------
Long-term debt, excluding current portion 29,938 31,922 35,902 25,138 30,930
Other liabilities 1,850 2,117 2,266 1,994 1,038
Accrued preferred stock dividends 440 1,182 1,933 2,751 3,537
Cumulative convertible redeemable
preferred stock 28,144 28,144 31,295 32,420 32,710
Common stock put warrants 4,012 4,012 4,294 4,394 4,394
Common shareholders' deficit (43,186) (43,064) (47,083) (44,733) (46,676)
------ ------ ------ ------ ------
TOTAL LIABILITIES AND
SHAREHOLDERS' DEFICIT $34,420 $36,781 $44,058 $41,287 $43,449
====== ====== ====== ====== ======
SEE ACCOMPANYING FOOTNOTES.
7
DOLLAR EXPRESS, INC.
HISTORICAL QUARTERLY FINANCIAL DATA
INCOME STATEMENT INFORMATION (1)
(In thousands except store data)
(Unaudited)
Year Quarter
Quarter Ended Ended Ended
April 1, July 1, Sept. 30, Dec. 30, Dec. 30, March 30,
1999 1999 1999 1999 1999 2000
-------- ------- --------- -------- -------- --------
Net sales $31,047 $34,932 $33,496 $54,385 $153,860 $35,512
Cost of sales 22,212 24,864 24,221 36,364 107,661 25,881
------ ------ ------ ------ ------- ------
Gross profit 8,835 10,068 9,275 18,021 46,199 9,631
------ ------ ------ ------ ------- ------
Selling, general and administrative expenses:
Operating expenses 6,392 7,144 7,507 9,281 30,324 9,522
Depreciation and amortization 512 741 817 622 2,692 831
------ ------ ------ ------ ------- ------
Total selling, general and
administrative expenses 6,904 7,885 8,324 9,903 33,016 10,353
------ ------ ------ ------ ------- ------
Operating income (loss) 1,931 2,183 951 8,118 13,183 (722)
Interest income 2 2 2 20 26 2
Accretion of common stock put
warrants to fair value - - (282) (100) (382) -
Interest expense (384) (657) (700) (784) (2,525) (656)
------ ------ ------ ------ ------- ------
Income(loss) before income taxes 1,549 1,528 (29) 7,254 10,302 (1,376)
Provision(benefit) for income taxes 754 664 88 2,961 4,467 (509)
Deferred income tax benefit resulting
from conversion from S to C
corporation (2,224) - - - (2,224) -
------ ------ ------ ------ ------- ------
Net income(loss) $ 3,019 $ 864 $ (117) $ 4,293 $ 8,059 $ (867)
====== ====== ====== ====== ======= ======
STORE DATA:
Comparable store net sales
increase(decrease) (5) 0.4% 1.5% (0.6%) 1.4% 1.1% (9.2%)
Number of stores open at end of
period 108 112 117 124 124 131
Total gross square footage
(in thousands) 760 807 884 963 963 1,041
SEE ACCOMPANYING FOOTNOTES.
8
DOLLAR TREE STORES, INC.
COMBINED QUARTERLY FINANCIAL DATA -- AFTER GIVING EFFECT TO THE POOLING
BALANCE SHEET INFORMATION
(In thousands)
(Unaudited)
March 31, June 30, Sept. 30, Dec. 31,
1998 1998 1998 1998
--------- -------- --------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 9,834 $ 11,462 $ 11,156 $ 84,714
Merchandise inventories 167,135 194,186 229,656 154,719
Deferred tax asset 5,347 6,238 6,664 6,709
Prepaid expenses and other
current assets 7,574 6,659 10,201 7,932
------- ------- ------- -------
Total current assets 189,890 218,545 257,677 254,074
------- ------- ------- -------
Net property and equipment 100,847 106,652 122,413 131,461
Deferred tax asset 2,092 2,457 2,617 2,194
Goodwill, net 43,996 43,514 43,033 42,551
Other assets, net 2,593 2,414 2,338 6,488
------- ------- ------- -------
TOTAL ASSETS $339,418 $373,582 $428,078 $436,768
======= ======= ======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 57,338 $ 59,301 $ 70,433 $ 59,882
Income taxes payable 3,898 2,284 0 21,353
Other current liabilities 27,916 22,448 21,988 30,934
Current portion of long-term debt 10,952 21,034 54,052 16,638
Current installments of obligations
under capital leases 344 320 442 509
------- ------- ------- -------
Total current liabilities 100,448 105,387 146,915 129,316
------- ------- ------- -------
Long-term debt, excluding current portion 44,748 57,242 55,219 34,136
Obligations under capital leases,
excluding current installments 788 707 2,214 2,476
Other liabilities 8,114 8,086 7,848 8,265
------- ------- ------- -------
Total liabilities 154,098 171,422 212,196 174,193
------- ------- ------- -------
Shareholders' equity 185,320 202,160 215,882 262,575
------- ------- ------- -------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $339,418 $373,582 $428,078 $436,768
======= ======= ======= =======
SEE ACCOMPANYING FOOTNOTES.
9
DOLLAR TREE STORES, INC.
COMBINED QUARTERLY FINANCIAL DATA -- AFTER GIVING EFFECT TO THE POOLING
INCOME STATEMENT INFORMATION
(In thousands, except store and per share data)
(Unaudited)
Year
Quarter Ended Ended
March 31, June 30, Sept. 30, Dec. 31, Dec. 31,
1998 1998 1998 1998 1998
--------- -------- --------- -------- --------
Net sales $205,641 $237,928 $237,852 $392,466 $1,073,887
Cost of sales 133,769 156,276 151,908 239,435 681,388
Merger related costs - - - 1,301 1,301
------- ------- ------- ------- -------
Gross profit 71,872 81,652 85,944 151,730 391,198
------- ------- ------- ------- -------
Selling, general and administrative expenses:
Operating expenses 52,521 54,191 57,242 70,243 234,197
Merger related expenses - - - 4,024 4,024
Depreciation and amortization 4,887 5,315 5,683 6,578 22,463
------- ------- ------- ------- -------
Total selling, general and
administrative expenses 57,408 59,506 62,925 80,845 260,684
------- ------- ------- ------- -------
Operating income 14,464 22,146 23,019 70,885 130,514
Interest income 279 73 72 180 604
Interest expense (1,026) (1,198) (1,678) (1,315) (5,217)
------- ------- ------- ------- -------
Income before income taxes 13,717 21,021 21,413 69,750 125,901
Provision for income taxes 4,899 6,882 7,559 25,243 44,583
------- ------- ------- ------- -------
Net income $ 8,818 $ 14,139 $ 13,854 $ 44,507 $ 81,318
======= ======= ======= ======= =======
Net income per share:
Basic net income per share $ 0.14 $ 0.22 $ 0.21 $ 0.68 $ 1.25
======= ======= ======= ======= =======
Diluted net income per share $ 0.12 $ 0.20 $ 0.19 $ 0.62 $ 1.14
======= ======= ======= ======= =======
Pro forma income data (3):
Net income $ 8,818 $ 14,139 $ 13,854 $ 44,507 $ 81,318
Pro forma adjustment for
C-corporation income taxes 422 1,202 664 2,516 4,804
------- ------- ------- ------- -------
Pro forma net income $ 8,396 $ 12,937 $ 13,190 $ 41,991 $ 76,514
======= ======= ======= ======= =======
Pro forma basic net income
per share $ 0.13 $ 0.20 $ 0.20 $ 0.64 $ 1.18
======= ======= ======= ======= =======
Pro forma diluted net income
per share $ 0.12 $ 0.18 $ 0.18 $ 0.59 $ 1.07
======= ======= ======= ======= =======
Weighted average number of
common shares outstanding 64,704 64,966 65,080 65,126 64,969
======= ======= ======= ======= =======
Weighted average number of common
shares and dilutive potential
common shares outstanding 71,105 71,428 71,534 71,571 71,410
======= ======= ======= ======= =======
STORE DATA:
Comparable store net sales
increase(decrease) (5) 4.6% 12.3% 5.3% 5.2% 6.5%
Number of stores open at end of
period 1,100 1,163 1,241 1,285 1,285
Total gross square footage 4,982 5,356 5,785 6,051 6,051
SEE ACCOMPANYING FOOTNOTES.
10
DOLLAR TREE STORES, INC.
COMBINED QUARTERLY FINANCIAL DATA -- AFTER GIVING EFFECT TO THE POOLING
BALANCE SHEET INFORMATION
(In thousands)
(Unaudited)
March 31, June 30, Sept. 30, Dec. 31, Mar. 31,
1999 1999 1999 1999 2000
--------- --------- --------- -------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 24,661 $ 40,072 $ 22,080 $181,587 $ 83,711
Merchandise inventories 194,340 205,504 276,240 192,838 276,811
Deferred tax asset 7,099 7,615 3,667 6,093 5,751
Income tax receivable - - 377 - -
Prepaid expenses and other
current assets 6,838 8,701 9,949 14,588 11,713
------- ------- ------- ------- -------
Total current assets 232,938 261,892 312,313 395,106 377,986
------- ------- ------- ------- -------
Net property and equipment 136,501 144,745 151,607 157,368 167,167
Deferred tax asset 4,381 4,510 3,523 470 642
Goodwill, net 42,069 41,587 41,106 42,394 41,890
Other assets, net 6,815 6,602 16,661 15,895 15,633
------- ------- ------- ------- -------
TOTAL ASSETS $422,704 $459,336 $525,210 $611,233 $603,318
======= ======= ======= ======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 51,791 $ 67,308 $ 82,821 $ 73,878 $ 73,631
Income taxes payable 6,256 4,420 - 29,193 10,502
Other current liabilities 19,672 23,024 24,155 34,942 23,262
Current portion of long-term debt 18,570 25,070 25,350 28,070 26,595
Current installments of obligations
under capital leases 512 512 3,137 3,190 3,264
------- ------- ------- ------- -------
Total current liabilities 96,801 120,334 135,463 169,273 137,254
------- ------- ------- ------- -------
Long-term debt, excluding current portion 59,938 55,922 61,022 49,138 54,930
Obligations under capital leases,
excluding current installments 2,289 2,185 29,197 28,375 27,591
Other liabilities 8,077 8,337 7,873 8,644 7,272
Accrued preferred stock dividends (2) 440 1,182 1,933 2,751 3,537
Cumulative convertible redeemable
preferred stock of Dollar Express (2) 28,144 28,144 31,295 32,420 32,710
Common stock put warrants of
Dollar Express (2) 4,012 4,012 4,294 4,394 4,394
Common shareholders' equity 223,003 239,220 254,133 316,238 335,630
------- ------- ------- ------- -------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $422,704 $459,336 $525,210 $611,233 $603,318
======= ======= ======= ======= =======
SEE ACCOMPANYING FOOTNOTES.
11
DOLLAR TREE STORES, INC.
COMBINED QUARTERLY FINANCIAL DATA -- AFTER GIVING EFFECT TO THE POOLING
INCOME STATEMENT INFORMATION
(In thousands, except store and per share data)
(Unaudited)
Year Quarter
Quarter Ended Ended Ended
March 31, June 30, Sept. 30, Dec. 31, Dec. 31, March 31,
1999 1999 1999 1999 1999 2000
--------- -------- --------- -------- --------- ---------
Net sales $258,091 $288,148 $298,868 $506,713 $1,351,820 $327,111
Cost of sales 168,391 184,389 191,546 309,798 854,124 213,538
Merger related costs - 443 - - 443 -
------- ------- ------- ------- ------- -------
Gross profit 89,700 103,316 107,322 196,915 497,253 113,573
------- ------- ------- ------- ------- -------
Selling, general and administrative expenses:
Operating expenses 62,517 68,854 71,523 87,347 290,241 81,661
Merger related expenses - 607 - - 607 -
Depreciation and amortization 6,732 7,622 7,879 8,576 30,809 8,693
------- ------- ------- ------- ------- -------
Total selling, general and
administrative expenses 69,249 77,083 79,402 95,923 321,657 90,354
------- ------- ------- ------- ------- -------
Operating income 20,451 26,233 27,920 100,992 175,596 23,219
Interest income 416 258 207 862 1,743 1,778
Accretion of common stock put
warrants to fair value - - (282) (100) (382) -
Interest expense (1,280) (1,583) (1,692) (2,492) (7,047) (2,278)
------- ------- ------- ------- ------- -------
Income before income taxes 19,587 24,908 26,153 99,262 169,910 22,719
Deferred income tax benefit
resulting from conversion from
S to C corporation (2,224) - - - (2,224) -
Provision for income taxes 7,465 9,540 10,168 38,384 65,557 8,767
------- ------- ------- ------- ------- -------
Net income $ 14,346 $ 15,368 $ 15,985 $ 60,878 $ 106,577 $ 13,952
------- ------- ------- ------- ------- -------
Less: Preferred stock dividends
and accretion 440 742 3,902 1,943 7,027 1,076
------- ------- ------- ------- ------- -------
Net income available to
common shareholders $ 13,906 $ 14,626 $ 12,085 $ 58,933 $ 99,550 $ 12,876
======= ======= ======= ======= ======= =======
Net income per common share:
Basic net income per common
share $ 0.21 $ 0.22 $ 0.18 $ 0.90 $ 1.52 $ 0.20
======= ======= ======= ======= ======= =======
Diluted net income per common
share $ 0.19 $ 0.20 $ 0.17 $ 0.82 $ 1.38 $ 0.18
======= ======= ======= ======= ======= =======
Pro forma income data:
Net income $ 13,906 $ 14,626 $ 12,085 $ 58,933 $99,550 $ 12,876
Pro forma adjustment for
C-corporation income taxes 234 271 - - 505 -
------- ------- ------- ------- ------- -------
Pro forma net income $ 13,672 $ 14,355 $ 12,085 $ 58,933 $ 99,045 $ 12,876
======= ======= ======= ======= ======= =======
Pro forma basic net income
per common share $ 0.21 $ 0.22 $ 0.18 $ 0.90 $ 1.51 $ 0.20
======= ======= ======= ======= ======= =======
Pro forma diluted net income
per common share $ 0.19 $ 0.20 $ 0.17 $ 0.82 $ 1.38 $ 0.18
======= ======= ======= ======= ======= =======
Weighted average number of
common shares outstanding 65,326 65,599 65,736 65,832 65,623 66,021
======= ======= ======= ======= ======= =======
Weighted average number of common
shares and dilutive potential
common shares outstanding 71,748 71,869 72,052 72,225 71,973 72,431
======= ======= ======= ======= ======= =======
STORE DATA:
Comparable store net sales
increase (5) 4.6% 1.7% 4.9% 7.5% 5.0% 3.0%
Number of stores open at end of
period 1,335 1,403 1,461 1,507 1,507 1,565
Total gross square footage
(in thousands) 6,349 6.769 7,274 7,638 7,638 8,097
SEE ACCOMPANYING FOOTNOTES.
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Footnotes
(1) Certain reclassifications have been made to the historical Dollar
Express, Inc. financial statements for comparability with the
presentation of Dollar Tree's historical financial statements and the
combined financial statements presented herein.
Effective January 1, 1999, Dollar Express, Inc. adopted a 52/53-week
fiscal year. As such, Dollar Express's fiscal quarters end on the
Thursday closest to each of March 31, June 30, September 30 and Dollar
Express's fiscal year ends on the Thursday closest to December 31.
(2) In connection with the completion of the merger on May 5, 2000, the
holders of the cumulative convertible redeemable preferred stock received
common stock of Dollar Tree based upon the conversion rate of .5848
Dollar Tree shares for each Dollar Express, Inc. share. Because of the
terms of the stock, the accrued cumulative dividends will not be paid to
the preferred stock holders.
(3) Represents pro forma adjustment for C-corporation income taxes relating
to Only $One and Dollar Express of $422 for March 31, 1998, $1,202 for
June 30, 1998, $664 for September 30, 1998, $2,516 for December 31, 1998
and $4,804 for the year ended December 31, 2000. Dollar Express, Inc. did
not convert to C-corporation status until February 5, 1999.
(4) Gross square footage for certain quarterly periods differ from previously
disclosed amounts; however, total square footage at December 31, 1999 and
March 31, 2000 remain the same as previously reported.
(5) Easter was observed on April 23, 2000, April 4, 1999, April 12, 1998
and March 30, 1997.
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