Exhibit 99.1
DOLLAR TREE STORES, INC.
Condensed Consolidated Income Statements
For the Three Months and Six Months Ended June 30
(Amounts in thousands, except per share data)
Second Quarter Year-to-Date
-------------- ------------
2001 2000 2001 2000
------------ ------------- ------------- -------------
(unaudited) (unaudited) (unaudited) (unaudited)
Net sales $ 440,361 $ 384,503 $ 827,680 $ 711,614
Cost of sales 283,274 246,458 539,132 459,996
Merger-related costs (a) - 1,100 - 1,100
Gross profit 157,087 136,945 288,548 250,518
35.7% 35.6% 34.9% 35.2%
Operating expenses 108,854 87,697 210,545 169,358
24.7% 22.8% 25.4% 23.8%
Merger-related expenses (a) - 3,266 - 3,266
Depreciation/amortization 12,988 9,556 24,819 18,249
Operating income 35,245 36,426 53,184 59,645
8.0% 9.5% 6.4% 8.4%
Interest income (expense), net (204) (618) 183 (1,118)
Other income (expense) 197 - (595) -
Earnings before income taxes 35,238 35,808 52,772 58,527
8.0% 9.3% 6.4% 8.2%
Income tax expense 13,580 14,273 20,331 23,040
Net earnings before extraordinary item 21,658 21,535 32,441 35,487
Loss on debt extinguishment,
net of tax benefit of $242 - 387 - 387
Net earnings 21,658 21,148 32,441 35,100
4.9% 5.5% 3.9% 4.9%
Net earnings available to common shareholders (b) 21,658 20,811 32,441 33,687
4.9% 5.4% 3.9% 4.7%
Net earnings per common share:
Basic $ 0.19 $ 0.20 $ 0.29 $ 0.34
Weighted average number of shares 112,182 101,615 112,140 100,323
Diluted $ 0.19 $ 0.19 $ 0.29 $ 0.31
Weighted average number of shares 112,852 111,748 112,808 110,197
<FN>
(a) Merger related costs and expenses, net of taxes, were $3,134 for the second quarter
and six months ended June 30, 2000.
(b) Amounts include accretion of the cumulative preferred stock to redemption value,
accrued preferred stock dividends and amortization of the discount on preferred stock.
The amounts deducted from net earnings available to common shareholders are $337 for the
quarter ended June 30, 2000, and $1,413 for the six months ended June 30, 2000.
</FN>
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DOLLAR TREE STORES, INC.
Condensed Consolidated Balance Sheets
(Dollars in thousands)
June 30, December 31, June 30,
2001 2000 2000
------------- -------------- -------------
(unaudited) (unaudited)
Cash and cash equivalents $ 90,672 $ 181,166 $ 55,417
Merchandise inventories 334,614 258,687 284,517
Other current assets 39,113 37,661 21,207
--------- --------- ---------
Total current assets 464,399 477,514 361,141
--------- --------- ---------
Property and equipment, net 250,001 211,632 184,374
Goodwill, net 39,367 40,376 41,385
Other assets, net 18,507 17,337 15,879
--------- --------- ---------
Total assets $ 772,274 $ 746,859 $ 602,779
========= ========= =========
Accounts payable $ 94,692 $ 75,404 $ 76,846
Income taxes payable 10,661 23,448 4,768
Other current liabilities 38,391 50,453 28,960
Current portion of long-term debt 25,000 25,000 25,025
--------- --------- ---------
Total current liabilities 168,744 174,305 135,599
--------- --------- ---------
Long-term debt, excluding current portion 12,000 18,000 18,000
Other liabilities 37,257 35,896 36,710
--------- --------- ---------
Total liabilities 218,001 228,201 190,309
--------- --------- ---------
Shareholders' equity 554,273 518,658 412,470
--------- --------- ---------
Total liabilities and
shareholders' equity $ 772,274 $ 746,859 $ 602,779
========= ========= =========
STORE DATA:
Number of stores open at
end of period 1,863 1,729 1,634
Total gross square footage
(in thousands) 11,463 9,832 8,799
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DOLLAR TREE STORES, INC.
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
Six months ended Year ended Six months ended
June 30, December 31, June 30,
2001 2000 2000
----------------- -------------- --------------
(unaudited) (unaudited)
Cash flows from operating activities:
Net income $ 32,441 $ 121,622 $ 35,100
-------- --------- ---------
Adjustments to reconcile net income to net cash provided by
(used in) operating activities:
Depreciation and amortization 24,819 41,971 18,249
Other non-cash adjustments (1,032) 14,813 9,075
Changes in working capital (78,317) (71,141) (121,473)
-------- --------- ---------
Total adjustments (54,530) (14,357) (94,149)
-------- --------- ---------
Net cash provided by (used in) operating activities (22,089) 107,265 (59,049)
-------- --------- ---------
Cash flows from investing activities:
Capital expenditures (62,833) (95,038) (44,532)
Proceeds from sale of property and equipment 34 271 142
-------- --------- ---------
Net cash used in investing activities (62,799) (94,767) (44,390)
-------- --------- ---------
Cash flows from financing activities:
Net change in revolving credit facilities - (6,500) (6,500)
Repayment of long-term debt and facility fees (6,239) (27,708) (27,683)
Principal payments under capital lease obligations (1,755) (3,274) (1,567)
Proceeds from stock issued pursuant to stock-based
compensation plans 2,388 24,563 13,019
-------- --------- ---------
Net cash used in financing activities (5,606) (12,919) (22,731)
-------- --------- ---------
Net decrease in cash and cash equivalents (90,494) (421) (126,170)
Cash and cash equivalents at beginning of period 181,166 181,587 181,587
-------- --------- ---------
Cash and cash equivalents at end of period $ 90,672 $ 181,166 $ 55,417
======== ========= =========
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