Wal-Mart Stores, Inc. (NYSE: WMT), reported record sales for the third quarter of $45.676 billion and sales of $134.773 billion for the nine months ended Oct. 31, 2000, representing increases of 13.0 percent and 18.6 percent, respectively, compared to the same periods last year.

Net income for the third fiscal quarter was also a record at $1.369 billion, or $0.31 per share, and was up 5.8 percent compared to the $1.294 billion, or $0.29 per share, reported in the same quarter in the prior year. Net income for the nine months increased 24.0 percent to $4.291 billion, or $0.96 per share, compared to $3.461 billion, or $0.78 per basic share, reported in the same nine month period last year.

Lee Scott, president and chief executive officer of Wal-Mart Stores, Inc., said, "We are pleased that in a difficult quarter we were able to achieve record sales and earnings. We gained market share and generated good earnings growth in a challenging retail environment. This is a tribute to our associates around the world who remain completely focused on serving the local needs of their customers."

Sales for the periods were as follows:

(Dollars in millions)

Quarter Ended Oct. 31
Percent
Six Months Ended Oct. 31
Percent
2000
1999
Change
2000
1999
Change
Wal-Mart
$29,226
$26,460
10.5%
$86,413
$77,000
12.2%
SAM'S Club
6,573
6,011
9.3
19,317
17,747
8.8
International
7,437
5,910
25.8
22,038
12,883
71.1
Mclane
2,440
2,051
19.0
7,005
5,989
17.0
Total Company
$45,676
$40,432
13.0%
$134,773
$113,619
18.6%

Total company comparable sales for the quarter increased 4.9 percent. This is represented by a 4.5 percent comp increase for the Wal-Mart stores and a 6.6 percent increase for Sam's Clubs.

Wal-Mart Stores Segment:

For the third quarter the Wal-Mart Stores segment, including Supercenters, had operating profit (profit before interest, unallocated corporate expenses, and income taxes) of $2.249 billion, compared to $1.993 billion, in the same period last year, a 12.8 percent increase. Year to date operating profit was $6.969 billion, an increase of 16.6 percent compared to the $5.977 billion for the nine months ending Oct. 31, 1999.

Sam's Club Segment:

The Sam's Club segment had an operating profit for the quarter of $219 million, an increase of 12.9 percent compared to $194 million for the same period last year. Sam's operating profit for the nine-month period was $648 million, an increase of 11.9 percent compared to operating profit of $579 million in the same period last year.

International Segment:

The International segment had an operating profit of $241 million for the quarter, a 25.5 percent increase, compared to $192 million in the same period last year. Year to date, international operating profit was $622 million, a 69.5 percent increase, compared to $367 million in the nine months ending Oct. 31, 1999.

A pre-recorded call offering additional comments regarding the quarter will be available for approximately 36 hours from the time of this release. You may listen to this call by dialing 402-220-3103. If this number is busy, you can 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 Oct. 31, 2000, the Company had 1,723 Wal-Mart stores, 866 Supercenters, 469 Sam's Clubs and 15 Neighborhood Markets in the United States. Internationally, the Company operated units in Argentina (11), Brazil (18), Canada (169), China (8), Germany (95), Korea (6), Mexico (483), Puerto Rico (15) and United Kingdom (240). Wal-Mart employs more than 885,000 associates in the U.S. and 255,000 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) October 31, 2000 October 31,1999
ASSETS
Current assets
  Cash and cash equivalents $ 1,311 $ 1,435
  Receivables 1,468 1,630
  Inventories 24,975 22,373
  Prepaid expenses and other 1,675 1,517
Total current assets 29,429 26,955
Property, plant and equipment 45,833 40,322
Accumulated depreciation (9,619) (8,781)
Net property, plant and equipment 36,214 31,541
Net property under capital leases 3,112 3,216
Net goodwill and other acquired intangible assets 8,994 9,837
Other assets and deferred charges 1,302 820
Total assets $ 79,051 $ 72,369
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities
  Commercial paper $ 6,251 $ 6,459
  Accounts payable 15,872 14,081
  Accrued liabilities 6,373 7,270
  Other current liabilities 3,470 1,379
Total current liabilities 31,966 29,189
Long-term debt 12,912 13,532
Long-term obligations under capital leases 2,973 3,027
Deferred income taxes and other 884 793
Minority interest 1,082 1,746
Shareholders' equity
  Common stock & paid in capital 1,736 1,052
  Retained earnings 28,433 23,433
  Other accumulated comprehensive income (935) (403)
Total shareholders' equity 29,234 24,082
Total liabilities and shareholders' equity $ 79,051 $ 72,369
           
 		
                                   
 		
 
WAL-MART STORES, INC., AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
(Amounts in millions except per share data)
 
Quarter Ended October 31,
  2000 % to Sales 1999 % to Sales
Net sales $ 45,676   $ 40,432  
Other income-net 505 1.11% 466 1.15%
  46,181 101.11% 40,898 101.15%
         
Cost of sales 35,694 78.15% 31,606 78.17%
Operating, selling, and general
   and administrative expenses
7,918 17.34% 6,907 17.08%
         
Interest costs:        
  Debt 307 0.67% 251 0.62%
  Capital leases 68 0.15% 66 0.16%
  43,987 96.30% 38,830 96.04%
         
Income before income taxes, minority interest, equity in unconsolidated subsidiaries and cumulative effect of accounting change 2,194 4.80% 2,068 5.11%
         
Provision for income taxes 807 1.77% 757 1.87%
         
Income before minority interest, equity in unconsolidated subsidiaries and cumulative effect of accounting change 1,387 3.04% 1,311 3.24%
         
Minority interest and equity in unconsolidated subsidiaries (18) (0.04%) (17) (0.04%)
         
Income before cumulative effect of accounting change 1,369 3.00% 1,294 3.20%
         
Cumulative effect of accounting change, net of tax benefit of $119 --- 0.00% --- 0.00%
         
Net income $1,369 3.00% $1,294 3.20%
         
Net income per share:
Basic earnings per share Income before cumulative effect of accounting change
$0.31   $0.29  
Cumulative effect of accounting change, net of tax $0.00   $0.00  
         
Net income $0.31   $0.29  
         
Diluted earnings per share Income before cumulative effect of accounting change $0.31   $0.29  
Cumulative effect of accounting change, net of tax $0.00   $0.00  
         
Net income $0.31   $0.29  
         
Average number of common shares:        
 Basic 4,468   4,454  
 Dilutive 4,487   4,475  
         
Lifo credit/(charge) ($10)   $20  

 

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

(Amounts in millions except per share data)
 
Nine Months Ended October 31,
  2000 % to Sales 1999 % to Sales
Net sales $ 134,773   $ 113,619  
Other income-net 1,443 1.07% 1,322 1.16%
  136,216 101.07% 114,941 101.16%
         
Cost of sales 105,403 78.21% 88,970 78.31%
Operating, selling, and general and administrative expenses 22,862 16.96% 19,368 17.05%
         
Interest costs:        
  Debt 842 0.62% 502 0.44%
  Capital leases 206 0.15% 197 0.17%
  129,313 95.95% 109,037 95.97%
         
Income before income taxes, minority interest, equity in unconsolidated subsidiaries and cumulative effect of accounting change 6,903 5.12% 5,904 5.20%
         
Provision for income taxes 2,540 1.88% 2,161 1.90%
         
Income before minority interest, equity in unconsolidated subsidiaries and cumulative effect of accounting change 4,363 3.24% 3,743 3.29%
         
Minority interest and equity in unconsolidated subsidiaries (72) (0.05%) (84) (0.07%)
         
Income before cumulative effect of accounting change 4,291 3.18% 3,659 3.22%
         
Cumulative effect of accounting change, net of tax benefit of $119 --- 0.00% (198) (0.17%)
         
Net income $ 4,291 3.18% $ 3,461 3.05%
         
Net income per share:        
 Basic earnings per share        
  Income before cumulative effect of accounting change $0.96   $0.82  
  Cumulative effect of accounting change, net of tax $0.00   ($0.04)  
         
Net income $0.96   $0.78  
         
Diluted earnings per share        
  Income before cumulative effect of accounting change $0.96   $0.82  
  Cumulative effect of accounting change, net of tax $0.00   ($0.04)  
         
Net income $0.96   $0.77  
         
Average number of common shares:        
  Basic 4,463   4,451  
  Dilutive 4,484   4,473  
         
Lifo credit/(charge) ($30)   $60  
 
 
WAL-MART STORES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED
(Unaudited)
SUBJECT TO RECLASSIFICATION
(Amounts in millions)
October 31, October 31,
2000 1999
Cash flows from operating activities:
  Net Income $ 4,291 $ 3,461
Adjustments to reconcile net income to net cash provided by operating activities:
  Depreciation and amortization 2,014 1,612
  Increase in inventories (5,315) (4,621)
  Increase in accounts payable 3,007 2,699
  Other (184) 610
Net cash provided by operating activities 3,813 3,761
Cash flows from investing activities:
  Payments for property, plant, and equipment (5,846) (4,013)
  Investment in International operations (617) (10,653)
  Other investing activities 53 (179)
Net cash used in investing activities (6,410) (14,845)
Cash flows from financing activities:
  Increase in commercial paper 2,441 6,709
  Dividends paid (802) (668)
  Payment of long-term debt (1,292) (838)
  Proceeds from issuance of long-term debt 1,523 5,755
  Purchase of Company stock (193) (101)
  Proceeds from issuance of common stock 582 ---
  Other financing activities (207) (217)
Net cash provided by financing activities 2,052 10,640
Net decrease in cash and cash equivalents (545) (444)
Cash and cash equivalents at beginning of year 1,856 1,879
Cash and cash equivalents at end of period $ 1,311 $ 1,435