10-KPeriod: FY2013

DOLLAR GENERAL CORP Annual Report, Year Ended Feb 1, 2013

Filed March 25, 2013For Securities:DG

Summary

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.

Financial Highlights

44 data points
Beta

Revenue

$16.02B

31.7% Gross Margin

Net Income

$952.66M

5.9% Net Margin

EPS (Diluted)

$2.85

Total Assets

$10.37B

Cash & Equivalents

$140.81M

Free Cash Flow

$1.13B

Financial Statements
Beta
Revenue$16.02B
Cost of Revenue$10.94B
Gross Profit$5.09B
SG&A Expenses$3.43B
Operating Income$1.66B
Interest Expense$127.93M
Net Income$952.66M
EPS (Basic)$2.87
EPS (Diluted)$2.85
Shares Outstanding (Basic)332.25M
Shares Outstanding (Diluted)334.47M

Key Highlights

  • 1Dollar General achieved its 23rd consecutive year of same-store sales growth, indicating a resilient business model.
  • 2Net sales increased by 8.2% to $16.02 billion in fiscal year 2012, driven by a 4.7% same-store sales increase.
  • 3The company expanded its store base to 10,557 locations across 40 states by March 1, 2013, with plans for further growth.
  • 4Operating profit increased 11.0% to $1.66 billion, with operating profit margin improving to 10.3% of sales.
  • 5Net income rose significantly by 24.3% to $952.7 million, resulting in diluted earnings per share of $2.85.
  • 6The company continued to strengthen its financial position by repurchasing shares and refinancing debt, reducing interest expenses.
  • 7Strategic initiatives included expanding cooler sections, introducing tobacco products, and enhancing private brand offerings.

Frequently Asked Questions

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.

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.

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.

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.