Wal-Mart Stores, Inc. reported record earnings and sales for the quarter ended Apr. 30, 2001. Net income for the quarter was $1.380 billion, up from $1.326 billion for the similar prior year quarter. Earnings per share were $0.31 up 3.3 percent from the $0.30 per share reported in the same prior year quarter. Total sales were $48.052 billion, an increase of 11.8 percent over the similar prior year quarter.
Lee Scott, President and CEO said, “In a challenging retail environment, we are pleased to report another quarter of record sales and earnings. Thanks to our Customers and Associates, sales were up 11.8% over the similar prior year quarter, an increase of more than $5 billion. Net income grew 4% to $1.380 billion. In a competitive market, we continued to maintain our price leadership and gain market share as demonstrated by our segment leading 6.1% comp in the Wal-Mart Stores division in April. In addition, we are pleased with the performance of our international division which reported an increase of 44.3% in operating income on a 6.1% increase in sales and our SAM’S CLUBS which generated an increase in operating income double its sales increase.”
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Additionally, the Board of Directors of Wal-Mart Stores, Inc., announced a significant addition to the Company’s previously approved share repurchase program to permit the acquisition of up to $3 billion of the Company’s outstanding shares. Purchases for the share repurchase program will be made from time to time in the open market and in privately negotiated transactions. Wal-Mart will consider a variety of methods to finance the repurchase program including cash generated from operations, sale of commercial paper and issuance of additional debt or convertible securities.
Sales were as follows: (Dollars in billions)
| Quarter Ended January 31 | Percent Change | ||
| 2001 | 2000 | ||
| Wal-Mart | $30.751 | $27.540 | 11.7% |
| SAM’S Club | 6.535 | 6.079 | 7.5 |
| International | 7.636 | 7.197 | 6.1 |
| Mclane | 3.130 | 2.169 | 44.3 |
 | |||
| Total Company | $48.052 | $42.985 | 11.8% |
Total Company comparable sales for the quarter were up 3.7 percent. This is represented by a 3.5 percent comp increase for the Wal-Mart stores and a 5.0 percent comp increase for SAM’S.
Wal-Mart Stores Segment: For the first quarter, the Wal-Mart Stores segment, including Supercenters, had operating profit (profit before interest, unallocated corporate expenses, and income taxes) of $2.222 billion, an increase of 0 .8 percent compared with $2.204 billion for the similar period in the previous year.
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By GlobalDataSAM’S CLUB Segment: The SAM’S CLUB segment had an operating profit for the quarter of $218 million, an increase of 15.3 percent compared with $189 million for the similar period in the previous year.
International Segment: The International segment had an operating profit of $215 million for the most recent quarter, an increase of 44.3 percent compared with $149 million for the similar period in the previous year.
A pre-recorded call offering additional comments on the quarter will be available to all investors for approximately 36 hours from the time of the release. You may listen to this call by dialing 402-220- 3103 after the earnings release appears on the newswire. If this number is busy, you may dial 973-633-1010.
Except for historical information, statements in this release are forward-looking and are subject to risks and uncertainties including, but not limited to, competitive pressures, inflation, consumer debt levels, currency exchange fluctuations and other risks listed in the Company’s filings with the Securities and Exchange Commission. Actual results may materially differ from anticipated results.
As of Apr. 30, 2001, the Company had 1702 Wal-Mart stores, 952 Supercenters, 479 SAM’S Clubs and 20 Neighborhood Markets in the United States. Internationally, the Company operated units in Argentina (11), Brazil (20), Canada (176), China (11), Germany (94), Korea (6), Mexico (509), Puerto Rico (17), and United Kingdom (244). Wal-Mart employs more than 962,000 associates in the U.S. and 282,000 internationally. Its securities are listed on the New York and Pacific stock exchanges.
| | | | | | | | | |
| WAL-MART STORES, INC., AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) | |||||||||
| (Amounts in millions except per share data) | |||||||||
| Quarter Ended April 30, | |||||||||
| 2001 | % to Sales | 2000 | % to Sales | ||||||
| Net sales | $ 48,052 | $ 42,985 | |||||||
| Other income-net | 513 | 1.07% | 462 | 1.07% | |||||
| | | | | | | | | |
| 48,565 | 101.07% | 43,447 | 101.07% | ||||||
| Cost of sales | 37,850 | 78.77% | 33,665 | 78.32% | |||||
| Operating, selling, and general | |||||||||
| and administrative expenses | 8,143 | 16.95% | 7,318 | 17.02% | |||||
| Interest costs: | |||||||||
| Debt | 284 | 0.59% | 263 | 0.61% | |||||
| Capital leases | 68 | 0.14% | 67 | 0.16% | |||||
| | | | | | | | | |
| 46,345 | 96.45% | 41,313 | 96.11% | ||||||
| | | | | | | | | |
| Income before income taxes, | |||||||||
| and minority interest | 2,220 | 4.62% | 2,134 | 4.96% | |||||
| Provision for income taxes | 810 | 1.69% | 785 | 1.83% | |||||
| | | | | | | | | |
| Income before minority interest | 1,410 | 2.93% | 1,349 | 3.14% | |||||
| Minority interest | (30) | (0.06%) | (23) | (0.05%) | |||||
| | | | | | | | | |
| Net income | $1,380 | 2.87% | $1,326 | 3.08% | |||||
| | | | | | | | | |
| Net income per share: | |||||||||
| Basic earnings per share | $0.31 | $0.30 | |||||||
| | | | | | | | | |
| Diluted earnings per share | $0.31 | $0.30 | |||||||
| | | | | | | | | |
| Average number of common shares: | |||||||||
| Basic | 4,471 | 4,457 | |||||||
| Dilutive | 4,487 | 4,478 | |||||||
| Lifo credit/(charge) | $10 | ($36) | |||||||
| | | | | | |
| WAL-MART STORES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||
| SUBJECT TO RECLASSIFICATION (Amounts in millions) | ||||||
| April 30, | April 30, | |||||
| ASSETS | 2001 | 2000 | ||||
| | | | | | |
| Current assets | ||||||
| Cash and cash equivalents | $ 1,477 | $ 1,360 | ||||
| Receivables | 1,761 | 1,265 | ||||
| Inventories | 22,748 | 20,971 | ||||
| Prepaid expenses and other | 1,295 | 1,505 | ||||
| | | | | | |
| Total current assets | 27,281 | 25,101 | ||||
| Property, plant and equipment | 49,273 | 42,464 | ||||
| Accumulated depreciation | (10,801) | (8,563) | ||||
| | | | | | |
| Net property, plant and equipment | 38,472 | 33,901 | ||||
| Net property under capital leases | 3,179 | 3,093 | ||||
| Net goodwill and other acquired intangible assets | 8,606 | 9,604 | ||||
| Other assets and deferred charges | 1,890 | 664 | ||||
| | | | | | |
| Total assets | $ 79,428 | $ 72,363 | ||||
| | | | | | |
| LIABILITIES & SHAREHOLDERS’ EQUITY | ||||||
| Current liabilities | ||||||
| Commercial paper | $ 3,879 | $ 4,759 | ||||
| Accounts payable | 14,765 | 13,160 | ||||
| Accrued liabilities | 5,505 | 5,913 | ||||
| Other current liabilities | 4,816 | 3,792 | ||||
| | | | | | |
| Total current liabilities | 28,965 | 27,624 | ||||
| Long-term debt | 13,209 | 12,778 | ||||
| Long-term obligations under capital leases | 3,095 | 2,928 | ||||
| Deferred income taxes and other | 1,110 | 817 | ||||
| Minority interest | 1,085 | 1,075 | ||||
| Shareholders’ equity | ||||||
| Common stock & paid in capital | 1,860 | 1,718 | ||||
| Retained earnings | 31,236 | 26,004 | ||||
| Other accumulated comprehensive income | (1,132) | (581) | ||||
| | | | | | |
| Total shareholders’ equity | 31,964 | 27,141 | ||||
| | | | | | |
| Total liabilities and shareholders’ equity | $ 79,428 | $ 72,363 | ||||
| | | | | | |
| | | | | | |
WAL-MART STORES, INC. | ||||||
| SUBJECT TO RECLASSIFICATION (Amounts in millions) | ||||||
| April 30, | April 30, | |||||
| 2001 | 2000 | |||||
| | | | | | |
| Cash flows from operating activities: | ||||||
| Net income | $ 1,380 | $ 1,326 | ||||
| Adjustments to reconcile net income to | ||||||
| net cash provided by operating activities: | ||||||
| Depreciation and amortization | 751 | 656 | ||||
| Increase in inventories | (1,374) | (1,217) | ||||
| Increase/(decrease) in accounts payable | (247) | 69 | ||||
| Other | (282) | 47 | ||||
| | | | | | |
| Net cash provided by operating activities | 228 | 881 | ||||
| Cash flows from investing activities | ||||||
| Payments for property plant and equipment | (1,886) | (1,730) | ||||
| Investment in International operations | – | (617) | ||||
| Other investing activities | (74) | 28 | ||||
| | | | | | |
| Net cash used in investing activities | (1,960) | (2,319) | ||||
| Cash flows from financing activities: | ||||||
| Increase in commercial paper | 1,792 | 446 | ||||
| Dividends paid | (313) | (267) | ||||
| Payment of long-term debt | (797) | (729) | ||||
| Proceeds from issuance of long-term debt | 525 | 997 | ||||
| Purchase of Company stock | – | (193) | ||||
| Proceeds from issuance of common stock | – | 582 | ||||
| Other financing activities | (52) | 106 | ||||
| | | | | | |
| Net cash provided by financing activities | 1,155 | 942 | ||||
| Net decrease in cash and cash equivalents | (577) | (496) | ||||
| Cash and cash equivalents at the beginning of year | 2,054 | 1,856 | ||||
| | | | | | |
| Cash and cash equivalents at end of period | $ 1,477 | $ 1,360 | ||||
