01—Abstract
Summary
Summary of the 10-K filed March 25, 2013. Cited figures are marked; the original filing is the authoritative source.
Dollar General Corporation's 2013 10-K report highlights a strong fiscal year ending February 1, 2013, characterized by consistent growth and strategic expansion.
The company, the largest discount retailer in the U.S. by store count, demonstrated resilience by achieving its 23rd consecutive year of same-store sales growth. This performance underscores the effectiveness of its value and convenience-driven business model, which caters to a broad customer base, particularly during challenging economic times.
Key drivers of success included disciplined store growth, strategic remodels and relocations, and a focus on operational efficiencies. The company also advanced its financial health through debt management and share repurchases, positioning itself for continued growth and shareholder value creation.
02—Key points
Key Highlights
- Dollar General achieved its 23rd consecutive year of same-store sales growth, indicating a resilient business model.
- Net sales increased by 8.2% to $16.02 billion in fiscal year 2012, driven by a 4.7% same-store sales increase.
- The company expanded its store base to 10,557 locations across 40 states by March 1, 2013, with plans for further growth.
- Operating profit increased 11.0% to $1.66 billion, with operating profit margin improving to 10.3% of sales.
- Net income rose significantly by 24.3% to $952.7 million, resulting in diluted earnings per share of $2.85.
- The company continued to strengthen its financial position by repurchasing shares and refinancing debt, reducing interest expenses.
- Strategic initiatives included expanding cooler sections, introducing tobacco products, and enhancing private brand offerings.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2013, Dollar General Corp kept $0.06.
- Revenue$16.02B100.0%
- Cost of revenue−$10.94B68.3%
- Gross profit$5.09B31.7%
- Operating costs−$3.43B21.4%
- Operating income$1.66B10.3%
- Interest, other & tax−$702.6M4.4%
- Net income$952.7M5.9%
Where FY2013 revenue went
$16.02B- Cost of revenue: $10.94B, 68% of revenue
- SG&A: $3.43B, 21% of revenue
- Net income: $952.7M, 5.9% of revenue
- Interest, other & tax: $702.6M, 4.4% of revenue
Kept 5.9% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2013filed March 25, 2013Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $16.02B$14.81B | +8.2% |
| Cost of Revenue | $10.94B$10.11B | +8.2% |
| Gross Profit | $5.09B$4.70B | +8.2% |
| SG&A Expenses | $3.43B$3.21B | +7.0% |
| Operating Income | $1.66B$1.49B | +11.0% |
| Interest Expense | $127.93M$204.90M | −37.6% |
| Net Income | $952.66M$766.68M | +24.3% |
| EPS (Basic) | $2.87$2.25 | +27.6% |
| EPS (Diluted) | $2.85$2.22 | +28.4% |
| Shares Outstanding (Basic) | 332.25M341.23M | −2.6% |
| Shares Outstanding (Diluted) | 334.47M345.12M | −3.1% |
05—Questions
Frequently Asked Questions
What was Dollar General's overall financial performance in fiscal year 2012?
Dollar General reported a strong fiscal year 2012 with net sales increasing by 8.2% to $16.02 billion. Operating profit grew by 11.0% to $1.66 billion, and net income increased by 24.3% to $952.7 million, with diluted earnings per share of $2.85. This performance was driven by a 4.7% increase in same-store sales and disciplined store growth.
How is Dollar General planning to grow its business in the coming year?
Dollar General plans to continue its growth strategy by opening approximately 635 new stores and remodeling or relocating an additional 550 stores in fiscal year 2013. They also aim to increase same-store sales through merchandising initiatives, operational improvements, and expansion of offerings like frozen and refrigerated foods, tobacco products, and private brands.
What is Dollar General's approach to managing its debt and capital structure?
Dollar General actively manages its debt through refinancing and opportunistic repurchases. In 2012, they refinanced senior subordinated notes with new senior notes, reducing interest expenses. The company also repurchased approximately $671 million of its common stock in 2012 and had a substantial share repurchase authorization in place, indicating a focus on returning value to shareholders and optimizing its capital structure.
What are the key risks Dollar General faces, according to the 10-K?
Key risks identified include the impact of current economic conditions on consumer disposable income and spending, intense competition in the retail sector, rising fuel and commodity costs, potential disruptions to their supply chain, reliance on suppliers, and the ability to successfully manage inventory. Additionally, the company highlights risks related to litigation, governmental regulations, and the potential failure to attract and retain qualified employees.
06—Continue