EXHIBIT 99.2
DOLLAR TREE STORES, INC.
AND SUBSIDIARIES
HISTORICAL FINANCIAL DATA
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
October 31, July 31, April 30,
2002 2002 2002
---- ---- ----
ASSETS
Current assets:
Cash and cash equivalents......................................... $ 99,030 $ 137,408 $ 136,958
Short-term investments............................................ 1,500 16,500 --
Merchandise inventories........................................... 546,373 435,015 404,424
Deferred tax asset................................................ 11,675 8,974 10,159
Income taxes receivable........................................... -- 3,660 --
Prepaid expenses and other current assets......................... 12,981 17,224 30,221
--------- ------- -------
Total current assets.......................................... 671,559 618,781 581,762
Property and equipment, net............................................ 337,783 310,781 296,389
Deferred tax asset..................................................... 8,684 8,165 7,686
Goodwill............................................................... 38,358 38,358 38,358
Other assets........................................................... 17,671 17,488 17,512
--------- ------- -------
TOTAL ASSETS.................................................. $ 1,074,055 $ 993,573 $ 941,707
========= ======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt................................. $ 25,000 $ 25,000 $ 25,000
Accounts payable.................................................. 134,401 114,809 105,067
Income taxes payable.............................................. 17,877 -- 1,947
Other current liabilities......................................... 57,874 49,189 46,605
Current installments of obligations under
capital leases.................................................. 4,046 3,983 3,922
--------- ------- -------
Total current liabilities..................................... 239,198 192,981 182,541
Long-term debt, excluding current portion.............................. 6,000 6,000 6,000
Obligations under capital leases, excluding current
installments......................................................... 18,013 19,049 20,067
Other liabilities ..................................................... 28,076 24,300 22,049
--------- ------- -------
Total liabilities............................................. 291,287 242,330 230,657
--------- ------- -------
Shareholders' equity:
Common stock...................................................... 1,142 1,141 1,135
Additional paid-in capital........................................ 216,729 215,757 199,727
Accumulated other comprehensive loss.............................. (1,322) (968) (486)
Unearned compensation............................................. (125) (137) (150)
Retained earnings................................................. 566,344 535,450 510,824
--------- ------- -------
Total shareholders' equity.................................... 782,768 751,243 711,050
Commitments............................................................ -- -- --
--------- ------- -------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY.................... $ 1,074,055 $ 993,573 $ 941,707
========= ======= =======
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DOLLAR TREE STORES, INC.
AND SUBSIDIARIES
HISTORICAL FINANCIAL DATA
CONDENSED CONSOLIDATED INCOME STATEMENTS
(In thousands, except per share and store data)
(Unaudited)
Three months ended
----------------------------------------------
October 31, July 31, April 30,
2002 2002 2002
---- ---- ----
Net sales.............................................................. $ 556,864 $ 512,444 $ 509,668
Cost of sales ......................................................... 351,681 329,321 325,159
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Gross Profit.................................................. 205,183 183,123 184,509
------- ------- -------
Selling, general and administrative
expenses............................................................. 153,906 141,883 138,793
------- ------- -------
Operating income.............................................. 51,277 41,240 45,716
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Other income (expense):
Interest income...................................................... 660 792 1,064
Interest expense..................................................... (1,068) (1,061) (1,228)
Changes in fair value of non-hedging
interest rate swaps............................................... (635) (929) 110
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Total other expense........................................... (1,043) (1,198) (54)
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Income before income taxes.................................... 50,234 40,042 45,662
Provision for income taxes............................................. 19,340 15,416 17,580
------- ------- -------
Net income.................................................... $ 30,894 $ 24,626 $ 28,082
======= ======= =======
Net income per share:
Basic......................................................... $ 0.27 $ 0.22 $ 0.25
Diluted....................................................... $ 0.27 $ 0.21 $ 0.25
Weighted average number of common shares outstanding................... 114,124 113,922 112,801
Weighted average number of common shares and dilutive
potential common shares outstanding........................... 114,570 115,139 114,035
Store Data:
Comparable store net sales increase........................... 0.43% 3.08% 0.89%
Number of stores open at end of quarter....................... 2,211 2,114 2,048
Total selling square footage (in thousands)................... 12,542 11,547 10,889
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DOLLAR TREE STORES, INC.
AND SUBSIDIARIES
HISTORICAL FINANCIAL DATA
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Year-to-Date
--------------------------------------------
October 31, July 31, April 30,
2002 2002 2002
---- ---- ----
Cash flows from operating activities:
Net income...................................................... $ 83,602 $ 52,708 $ 28,082
Adjustments to reconcile net income to net cash.....................
used in operating activities:
Depreciation and amortization................................... 53,168 34,487 16,601
Loss on disposal of property and equipment...................... 1,661 1,314 1,008
Change in fair value of non-hedging interest
rate swaps.................................................... 1,454 819 (109)
Provision for deferred income taxes............................. (3,164) (167) (1,178)
Tax benefit of stock option exercises........................... 9,627 9,567 5,155
Other non-cash adjustments to net income........................ 291 201 129
Changes in assets and liabilities increasing
(decreasing) cash and cash equivalents:
Merchandise inventories....................................... (182,630) (71,272) (40,681)
Prepaid expenses and other current assets..................... 8,432 4,189 (8,808)
Refundable income taxes....................................... -- (3,660) --
Other assets.................................................. (2,553) (2,169) (2,012)
Accounts payable.............................................. 7,267 (12,325) (22,067)
Income taxes payable.......................................... 5,172 (3,513) (6,097)
Other current liabilities..................................... (19,939) (37,816) (35,869)
Other liabilities............................................. 6,870 4,310 3,778
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Net cash used in operating activities.................. (30,742) (23,327) (62,068)
------- ------- -------
Cash flows from investing activities
Capital expenditures................................................ (107,867) (62,191) (29,762)
Purchase of short-term investments.................................. (16,500) (16,500) --
Proceeds from maturities of short-term investments.................. 15,000 -- --
Settlement of merger-related contingencies.......................... 75 75 42
Acquisition of favorable lease rights............................... 813 813 813
Proceeds from sale of property and equipment........................ (4) 223 252
------- ------- -------
Net cash used in investing activities...................... (108,483) (77,580) (28,655)
------- ------- -------
Cash flows from financing activities:
Repayment of long-term debt and facility fees....................... ( 6,025) (6,025) (6,025)
Principal payments under capital lease obligations.................. (2,870) (1,897) (940)
Proceeds from stock issued pursuant to stock-based
compensation plans................................................ 29,073 28,160 16,569
Repurchase of common stock.......................................... -- -- --
------- ------- -------
Net cash provided by (used in) financing ..................
activities............................................... 20,178 20,238 9,604
------- ------- -------
Net decrease in cash and cash equivalents................................ (119,047) (80,669) (81,119)
Cash and cash equivalents at beginning of period......................... 218,077 218,077 218,077
------- ------- -------
Cash and cash equivalents at end of period............................... $ 99,030 $ 137,408 $ 136,958
======= ======= =======
Supplemental disclosure of cash flow information: Cash paid for:
Interest........................................................ $ 3,063 $ 1,956 $ 1,314
Income taxes.................................................... $ 1,006 $ 15,587 $ 49,374
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