USA: Wal-Mart reports record sales and earnings for quarter and year

Wal-Mart Stores, Inc. reported record earnings and sales for the quarter ended Jan. 31, 2001. Net income for the quarter was $2.004 billion, up from $1.917 billion for the similar prior year quarter. Earnings per share were $0.45 up 4.7 percent from the $0.43 per share reported in the same prior year quarter. Total sales were $56.556 billion, an increase of 10.0 percent over the similar prior year quarter.

Net sales for the year ended Jan. 31, 2001, were $191.329 billion, an increase of 15.9 percent over the prior fiscal year. Net income for the fiscal year increased 17.1 percent to a record $6.295 billion or $1.40 diluted earnings per share, up from $5.377 billion or $1.20 diluted earnings per share, for the prior fiscal year.

Lee Scott, president and CEO said, “In a challenging retail environment, I am pleased to report our first year with net earnings in excess of $6 billion and our first ever quarter with earnings over $2 billion. Thanks to our customers and the hard work of our associates, we added over $26 billion in sales and over $900 million in net income in the year. Revenues grew by almost 16 percent while net income grew by more than 17 percent. Adjusting for the prior year accounting change, earnings would have grown by almost 13 percent.

“It was a good year but a year that was not quite up to our high Wal-Mart expectations. In a difficult economic environment, we will spend almost $9 billion in capital expenditures and add approximately 8 percent to our retail square footage.”

Sales were as follows:

	Quarter Ended January 31		Percent Change	Year Ended January 31		Percent Change
	2001	2000		2001	2000

Wal-Mart	$35.476	$31.721	11.8%	$121.889	$108.721	12.1%
SAM’S Club	7.481	7.054	6.1	26.798	24.801	8.1
International	10.062	9.845	2.2	32.100	22.728	41.2
Mclane	3.537	2.774	27.5	10.542	8.763	20.3

Total Company	$56.556	$51.394	10.0%	$191.329	$165.013	15.9%

Total company comparable sales for the quarter were up 3.1 percent. This is represented by a 3.0 percent comp increase for the Wal-Mart stores and a 3.3 percent comp increase for SAM’S.

Wal-Mart Stores Segment: For the fourth quarter, the Wal-Mart Stores segment, including Supercenters, had operating profit (profit before interest, unallocated corporate expenses, and income taxes) of $2.765 billion, an increase of 1.5 percent compared with $2.724 billion for the similar period in the previous year. Fiscal year operating profit was $9.734 billion, an increase of 11.9 percent as compared with $8.701 billion for the prior fiscal year.

SAM’S CLUB Segment: The SAM’S CLUB segment had an operating profit for the quarter of $294 million, an increase of 8.5 percent compared with $271 million for the similar period in the previous year. SAM’S operating profit for the year ended Jan. 31, 2001 was $942 million, an increase of 10.8 percent as compared with operating profit of $850 million for the prior fiscal year.

International Segment: The International segment had an operating profit of $490 million for the most recent quarter, an increase of 8.9 percent compared with $450 million for the similar period in the previous year. For the year ended Jan. 31, 2001, International operating profit was $1.112 billion, an increase of 36.1 percent as compared with $817 million for the prior fiscal year.

During the fiscal year, the Company:

Opened 41 discount stores, closed 2, and expanded / relocated 1 additional store.
Opened 167 Supercenters (including 104 discount store replacements).
Opened 12 Neighborhood Markets
Opened or acquired 77 international units Ð Argentina (1), Brazil (6), Canada (20), China (5), Korea (1), Mexico (39), and United Kingdom (5).
Opened 13 new SAM’S CLUBS, and relocated 4 additional clubs.
Opened 4 regional and 6 food distribution centers.

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 Jan. 31, 2001, the Company had 1736 Wal-Mart stores, 888 Supercenters, 475 SAM’S CLUBS and 19 Neighborhood Markets in the United States. Internationally, the Company operated units in Argentina (11), Brazil (20), Canada (174), China (11), Germany (95), Korea (6), Mexico (499), Puerto Rico (15), and United Kingdom (241). 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. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
SUBJECT TO RECLASSIFICATION (Amounts in millions)

		January 31,	January 31,
ASSETS		2001	2000

Current assets
	Cash and cash equivalents	$ 2,054	$ 1,856
	Receivables	1,768	1,341
	Inventories	21,442	19,793
	Prepaid expenses and other	1,291	1,366

Total current assets		26,555	24,356

Property, plant and equipment		47,813	41,063
Accumulated depreciation		(10,196)	(8,224)

Net property, plant and equipment		37,617	32,839

Net property under capital leases		3,317	3,130

Net goodwill and other acquired intangible assets		9,059	9,392
Other assets and deferred charges		1,347	632

Total assets		$ 77,895	$ 70,349


LIABILITIES & SHAREHOLDERS’ EQUITY
Current liabilities
	Commercial paper	$ 2,286	$ 3,323
	Accounts payable	15,092	13,105
	Accrued liabilities	6,355	6,161
	Other current liabilities	5,216	3,214

Total current liabilities		28,949	25,803

Long-term debt		12,501	13,672

Long-term obligations under capital leases		3,154	3,002

Deferred income taxes and other		1,043	759

Minority interest		1,140	1,279

Shareholders’ equity
	Common stock & paid in capital	1,858	1,160
	Retained earnings	30,169	25,129
	Other accumulated comprehensive income	(919)	(455)

Total shareholders’ equity		31,108	25,834


Total liabilities and shareholders’ equity		$ 77,895	$ 70,349


WAL-MART STORES, INC., AND SUBSIDIARIES Consolidated Statements of Income (Unaudited)

(Amounts in millions except per share data)

		Quarter Ended January 31,
		2001	% to Sales	2000	% to Sales

Net sales		$ 56,556		$ 51,394
Other income-net		522	0.92%	475	0.92%

		57,078	100.92%	51,869	100.92%

Cost of sales		44,852	79.31%	40,694	79.18%
Operating, selling, and general
	and administrative expenses	8,688	15.36%	7,673	14.93%

Interest costs:
	Debt	253	0.45%	253	0.49%
	Capital leases	72	0.13%	69	0.13%

		53,865	95.24%	48,689	94.74%


Income before income taxes,
	minority interest, equity in unconsolidated
	subsidiaries and cumulative effect of
	accounting change	3,213	5.68%	3,180	6.19%

Provision for income taxes		1,152	2.04%	1,177	2.29%


Income before minority interest, equity
	in unconsolidated subsidiaries and
	cumulative effect of accounting
	change	2,061	3.64%	2,003	3.90%

Minority interest and equity
	in unconsolidated subsidiaries	(57)	(0.10%)	(86)	(0.17%)


Income before cumulative effect of
	accounting change	2,004	3.54%	1,917	3.73%

Cumulative effect of accounting
	change, net of tax benefit of $119	–	0.00%	–	(0.00%)


Net income		$2,004	3.54%	$1,917	3.73%


Net income per share:
	Basic earnings per share
	Income before cumulative effect of
	accounting change	$0.45		$0.43
	Cumulative effect of accounting
	change, net of tax	$0.00		$0.00

	Net income	$0.45		$0.43


	Diluted earnings per share
	Income before cumulative effect of
	accounting change	$0.45		$0.43
	Cumulative effect of accounting
	change, net of tax	$0.00		$0.00

	Net income	$0.45		$0.43


Average number of common shares:
	Basic	4,469		4,455
	Dilutive	4,487		4,479

Lifo credit/(charge)		$206		$36


WAL-MART STORES, INC., AND SUBSIDIARIES Consolidated Statements of Income (Unaudited)

(Amounts in millions except per share data)

		Twelve Months Ended January 31,
		2001	% to Sales	2000	% to Sales

Net sales		$ 191,329		$ 165,013
Other income-net		1,966	1.03%	1,796	1.09%

		193,295	101.03%	166,809	101.09%

Cost of sales		150,255	78.53%	129,664	78.58%
Operating, selling, and general
	and administrative expenses	31,550	16.49%	27,040	16.39%

Interest costs:
	Debt	1,095	0.57%	756	0.46%
	Capital leases	279	0.15%	266	0.16%

		183,179	95.74%	157,726	95.58%


Income before income taxes,
	minority interest, equity in unconsolidated
	subsidiaries and cumulative effect of
	accounting change	10,116	5.29%	9,083	5.50%

Provision for income taxes		3,692	1.93%	3,338	2.02%


Income before minority interest, equity
	in unconsolidated subsidiaries and
	cumulative effect of accounting
	change	6,424	3.36%	5,745	3.48%

Minority interest and equity
	in unconsolidated subsidiaries	(129)	(0.07%)	(170)	(0.10%)


Income before cumulative effect of
	accounting change	6.295	3.29%	5.575	3.38%

Cumulative effect of accounting
	change, net of tax benefit of $119	–	0.00%	(198)	(0.12%)


Net income		$6,295	3.29%	$5,377	3.26%


Net income per share:
	Basic earnings per share
	Income before cumulative effect of
	accounting change	$1.41		$1.25
	Cumulative effect of accounting
	change, net of tax	$0.00		($0.04)

	Net income	$1.41		$1.21


	Diluted earnings per share
	Income before cumulative effect of
	accounting change	$1.40		$1.25
	Cumulative effect of accounting
	change, net of tax	$0.00		($0.04)

	Net income	$1.40		$1.20


Average number of common shares:
	Basic	4,465		4,451
	Dilutive	4,484		4,474

Lifo credit/(charge)		$176		$96


WAL-MART STORES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS TWELVE MOTHS ENDED (Unaudited)
SUBJECT TO RECLASSIFICATION (Amounts in millions)

		January 31,	January 31,
		2001	2000

Cash flows from operating activities:

	Net income	$ 6,295	$ 5,377

Adjustments to reconcile net income to
	net cash provided by operating activities:
	Depreciation and amortization	2,868	2,375
	Increase in inventories	(1,795)	(2,088)
	Increase in accounts payable	2,061	1,849
	Other	301	681

Net cash provided by operating divisions		9,730	8,194

Cash flows from investing activities
	Payments for property plant and equipment	(8,042)	(6,183)
	Investment in International operations	(627)	(10,419)
	Other investing activities	(45)	(244)

Net cash used in investing activities		(8,714)	(16,846)

Cash flows from financing activities:
	Increase/(decrease) in commercial paper	(2,022)	4,316
	Dividends paid	(1,070)	(890)
	Payment of long-term debt	(1,519)	(863)
	Proceeds from issuance of long-term debt	3,778	6,000
	Purchase of Company stock	(193)	(101)
	Proceeds from issuance of common stock	582	–
	Other financing activities	(374)	167

Net cash provided by (used in) financing activities		(818)	$ 8,629

Net increase/(decrease) in cash and cash equivalents		198	(23)
Cash and cash equivalents at the beginning of year		1,856	1,879


Cash and cash equivalents at end of year		$ 2,054	$ 1,856