Wal-Mart Stores, Inc. reported record earnings and sales for the quarter ended July 31, 2001. Net income for the quarter was $1.622 billion, up from $1.596 billion for the similar prior year quarter. Earnings per share were $0.36 flat with the $0.36 per share reported in the same prior year quarter. Total sales were $52.799 billion, an increase of 14.5 percent over the similar prior year quarter. Excluding the effect of the one-time charge for the reorganization resulting from the purchase of the minority interest in Walmart.com, earnings per share would have been $0.37 for the quarter ended July 31, 2001.


Company Profile:

Wal-Mart


Lee Scott, President and CEO said, "Thanks to our dedicated associates and loyal customers, it was another record quarter in sales and earnings. In a challenging retail environment, sales for the quarter increased by almost $6.7 billion, up 14.5% over the similar prior year quarter. Net income for the quarter topped $1.6 billion and for the first half of the year we earned over $3 billion. Although we were unable to convert all of our revenue growth to earnings growth, I am confident we will leverage our top line growth in future periods."

Sales were as follows: (Dollars in billions)

Quarter Ended July 31 Percent
Change
Six Months Ended July 31 Percent
Change
2001 2000 2001 2000  
         
Wal-Mart $33.870 $29.647 14.2% $64.621 $57.187 13.0%
SAM'S Club 7.270 6.665 9.1 13.805 12.744 8.3
International 8.362 7.404 12.9 15.998 14.601 9.6
Mclane 3.297 2.396 37.6 6.427 4.565 40.8
Total Company $52.799 $46.112 14.5% $100.851 $89.097 13.2

Total Company comparable sales for the quarter were up 5.7 percent. This is represented by a 5.6 percent comp increase for the Wal-Mart Stores and a 5.7 percent comp increase for SAM'S. For the six months ended July 31, 2001, total company comparable sales were up 4.7 percent. This is represented by a 4.6 percent increase for Wal-Mart Stores and a 5.4 percent comp increase for SAM'S.

Wal-Mart Stores Segment:
For the second quarter, the Wal-Mart Stores segment, including Supercenters, had operating profit (profit before interest, unallocated corporate expenses, and income taxes) of $2.618 billion, an increase of 4.1 percent compared with $2.516 billion for the similar period in the previous year. Operating profit for the first half of the fiscal year was $4.840 billion, an increase of 2.5 percent compared with $4.720 billion for the similar period in the previous year.

SAM'S CLUB Segment:
The SAM'S CLUB segment had an operating profit for the quarter of $267 million, an increase of 11.3 percent compared with $240 million for the similar period in the previous year. Sam's Operating profit for six months ended July 31, 2001 was $485 million, a 13.1 percent increase compared with the $429 million for the similar period in the previous year

International Segment:
The International segment had an operating profit of $315 million for the most recent quarter, an increase of 35.8 percent compared with $232 million for the similar period in the previous year. International operating profit for the six months ended July 31, 2001 was $530 million, a 39.1 percent increase, compared to operating profit of $381 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 July 31, 2001, the Company had 1667 Wal-Mart stores, 998 Supercenters, 486 SAM'S Clubs and 23 Neighborhood Markets in the United States. Internationally, the Company operated units in Argentina (11), Brazil (21), Canada (177), China (14), Germany (93), Korea (7), Mexico (520), Puerto Rico (17), and United Kingdom (246). 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 July 31,
    2001   % to Sales   2000   % to Sales
                 
Net sales   $ 52,799       $ 46,112    
Other income-net   470   0.89%   476   1.03%
    53,269   100.89%   46,588   101.03%
                 
Cost of sales   41,412   78.43%   36,044   78.17%
Operating, selling, and general                
  and administrative expenses   8,893   16.84%   7,625   16.54%
                 
Interest costs:                
  Debt   284   0.54%   273   0.59%
  Capital leases   67   0.13%   71   0.15%
    50,656   95.94%   44,013   95.45%
                 
Income before income taxes,                
  and minority interest   2,613   4.95%   2,575   5.58%
                 
Provision for income taxes   954   1.81%   948   2.06%
                 
Income before minority interest   1,659   3.14%   1,627   3.53%
                 
Minority interest   (37)   (0.07%)   (31)   (0.07%)
                 
Net income   $1,622   3.07%   $1,596   3.46%
                 
Net income per share:                
  Basic earnings per share   $0.36       $0.36    
                 
  Diluted earnings per share   $0.36       $0.36    
                 
Average number of common shares:                
  Basic   4,470       4,465    
  Dilutive   4,486       4,487    
                 
Lifo credit/(charge)   $10       ($10)    

 

WAL-MART STORES, INC., AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
                   
(Amounts in millions except per share data)
                 
    Six Months Ended July 31,
    2001   % to Sales   2000   % to Sales
                 
Net sales   $ 100,851       $ 89,097    
Other income-net   983   0.97%   938   1.05%
    $ 101,834   100.97%   $ 90,035   101.05%
                 
Cost of sales   79,262   78.59%   69,709   78.24%
Operating, selling, and general                
  and administrative expenses   17,036   16.89%   14,943   16.77%
                 
Interest costs:                
  Debt   569   0.56%   536   0.60%
  Capital leases   135   0.13%   138   0.15%
    97,002   96.18%   85,326   95.77%
                 
Income before income taxes,                
  and minority interest   4,832   4.79%   4,709   5.29%
                 
Provision for income taxes   1,764   1.75%   1,733   1.95%
                 
Income before minority interest   3,068   3.04%   2,976   3.34%
                 
Minority interest   (67)   (0.07%)   (54)   (0.06%)
                 
Net income   $3,001   2.98%   $2,922   3.28%
                 
Net income per share:                
  Basic earnings per share   $0.67       $0.66    
                 
  Diluted earnings per share   $0.67       $0.65    
                 
Average number of common shares:                
  Basic   4,472       4,460    
  Dilutive   4,488       4,482    
                 
Lifo credit/(charge)   $20       ($20)    

 

 

WAL-MART STORES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
SUBJECT TO RECLASSIFICATION
(Amounts in millions)
           
      July 31,   July 31,  
ASSETS   2001   2000  
Current assets        
  Cash and cash equivalents   $ 1,834   $ 1,310
  Receivables   1,751   1,249
  Inventories   23,034   21,093
  Prepaid expenses and other   1,377   1,593  
Total current assets   27,996   25,245  
           
Property, plant and equipment   51,275   43,937  
Accumulated depreciation   (11,418)   (9,048)  
Net property, plant and equipment   39,857   34,889  
           
Net property under capital leases   3,146   3,115  
           
Net goodwill and other acquired intangible assets   8,543   9,265  
Other assets and deferred charges   2,034   893  
Total assets   $ 81,576   $ 73,407  
           
LIABILITIES & SHAREHOLDERS' EQUITY        
Current liabilities        
  Commercial paper   $ 1,088   $ 5,940
  Accounts payable   15,422   12,634
  Accrued liabilities   6,172   5,806
  Other current liabilities   4,741   2,356
Total current liabilities   27,423   26,736  
           
Long-term debt   15,706   13,716  
           
Long-term obligations under capital leases   3,030   2,968  
           
Deferred income taxes and other   1,233   811  
           
Minority interest   1,106   1,080  
           
Shareholders' equity        
  Common stock & paid in capital   1,792   1,717
  Retained earnings   32,303   27,333
  Other accumulated comprehensive income   (1,017)   (954)
Total shareholders' equity   33,078   28,096  
           
Total liabilities and shareholders' equity   $ 81,576   $ 73,407  

 

WAL-MART STORES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED
(Unaudited)

SUBJECT TO RECLASSIFICATION
(Amounts in millions)
           
      July 31,   July 31,  
    2001   2000  
Cash flows from operating activities:        
         
  Net income   $ 3,001   $ 2,922
           
Adjustments to reconcile net income to        
  net cash provided by operating activities:        
  Depreciation and amortization   1,481   1,331  
  Increase in inventories   (1,631)   (1,413)  
  Increase/(decrease) in accounts payable   539   (336)  
  Other   (444)   (461)  
Net cash provided by operating activities   2,946   2,043  
           
Cash flows from investing activities          
  Payments for property plant and equipment   (3,874)   (3,724)  
  Investment in International operations   -   (617)  
  Other investing activities   (20)   95  
Net cash used in investing activities   (3,894)   (4,246)  
           
Cash flows from financing activities:          
  (Decrease)/increase in commercial paper   (1,197)   2,127  
  Dividends paid   (625)   (534)  
  Payment of long-term debt   (1,222)   (1,294)  
  Proceeds from issuance of long-term debt   4,141   1,017  
  Purchase of Company stock   (254)   (193)  
  Proceeds from issuance of common stock   -   582  
  Other financing activities   (115)   (48)  
Net cash provided by financing activities   728   1,657  
           
Net decrease in cash and cash equivalents   (220)   (546)  
Cash and cash equivalents at the beginning of year   2,054   1,856  
           
Cash and cash equivalents at end of period   $ 1,834   $ 1,310  


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