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  




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