MIRA INFORM REPORT

 

 

Report Date :

14.08.2013

 

IDENTIFICATION DETAILS

 

Name :

DOLLAR GENERAL CORP. 

 

 

Registered Office :

Fortune 1000 Rank: 183, 100 Mission Ridge, Goodlettsville, TN 37072

 

 

Country :

United States 

 

 

Financials (as on) :

01.02.2013

 

 

Date of Incorporation :

29.05.1998

 

 

Legal Form :

Public Parent Company

 

 

Line of Business :

Subject is a discount retailer

 

 

No. of Employees :

90500

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

United States 

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

United States - ECONOMIC OVERVIEW

 

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $49,800. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income. Imported oil accounts for nearly 55% of US consumption. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more than doubled in the same period. Besides dampening the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008. The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, in October 2008 the US Congress established a $700 billion Troubled Asset Relief Program (TARP). The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009 the US Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP. In 2012 the federal government reduced the growth of spending and the deficit shrank to 7.6% of GDP. Wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the budget deficit and public debt. Through 2011, the direct costs of the wars totaled nearly $900 billion, according to US government figures. US revenues from taxes and other sources are lower, as a percentage of GDP, than those of most other countries. In March 2010, President OBAMA signed into law the Patient Protection and Affordable Care Act, a health insurance reform that will extend coverage to an additional 32 million American citizens by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on health care - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010. In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight. In December 2012, the Federal Reserve Board announced plans to purchase $85 billion per month of mortgage-backed and Treasury securities in an effort to hold down long-term interest rates, and to keep short term rates near zero until unemployment drops to 6.5% from the December rate of 7.8%, or until inflation rises above 2.5%. Long-term problems include stagnation of wages for lower-income families, inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and sizable current account and budget deficits - including significant budget shortages for state governments.

 

Source : CIA

 

 

Company name & address

 

Dollar General Corp.  

Fortune 1000 Rank: 183

100 Mission Ridge

Goodlettsville, TN 37072

United States

Tel:       615-855-4000

Fax:      615-386-9936

 

 Web:   www.dollargeneral.com

 

 

Synthesis     

 

Employees:                  90,500

Company Type:            Public Parent

Corporate Family:          9339 Companies

Traded:                         New York Stock Exchange:        DG

Incorporation Date:        29-May-1998

Auditor:                                   Ernst & Young LLP

Financials in:                 USD (Millions)

Fiscal Year End:            01-Feb-2013

Reporting Currency:       US Dollar

Annual Sales:                16,022.1  1

Net Income:                 952.7

Total Assets:                 10,367.7  2

Market Value:                16,462.1 (12-Apr-2013)

 

 

Business Description     

 

Dollar General Corporation is a discount retailer in the United States by number of stores, with 9,961 stores located in 39 states as of March 2, 2012, primarily in the southern, southwestern, midwestern and eastern United States. The Company offers a selection of merchandise, including consumables, seasonal, home products and apparel. The Company's merchandise includes national brands from manufacturers, as well as private brand selections with prices at substantial discounts to national brands. It offers its merchandise at everyday low prices through its convenient small-box (approximately 7,200 square feet) locations. During the fiscal year ended February 3, 2012 (fiscal 2011), it opened 625 stores and remodeled or relocated 575 stores, and closed 60 stores. Its small box stores offer consumable items, including packaged and refrigerated foods. For the fiscal year ended 01 February 2013, Dollar General Corp. revenues increased 8% to $16.02B. Net income increased 24% to $952.7M. Revenues reflect Highly consumable segment increase of 9% to $11.84B, Hardware and seasonal segment increase of 6% to $2.17B. Net income benefited from Interest expense decrease of 38% to $127.9M (expense), Others decrease of 51% to $30M (expense).


Industry            

Industry           Retail (Specialty)

ANZSIC 2006:   4279 - Other Store-Based Retailing Not Elsewhere Classified

NACE 2002:      5212 - Other retail sale in non-specialised stores

NAICS 2002:     45299 - All Other General Merchandise Stores

UK SIC 2003:    5212 - Other retail sale in non-specialised stores

UK SIC 2007:    4719 - Other retail sale in non-specialised stores

US SIC 1987:    5331 - Variety Stores

 

           

Key Executives  

(Emails Available)       

 

Name

Title

Richard W. Dreiling

Chairman and Chief Executive Officer

David M. Tehle

Chief Financial Officer, Executive Vice President

John W. Flanigan

Executive Vice President - Global Supply Chain

Jim Smits

SVP and General Merchandising Manager, with Oversight of Food, Beverage, Pet Care and Perishables

Susan S. Lanigan

Executive Vice President, General Counsel

 

 

Significant Developments

 

Topic

#*

Most Recent Headline

Date

Negative Earnings Pre-Announcement

1

Dollar General Corp Lowers High End Of Prior FY 2012 Revenue Guidance; Lowers FY 2012 Operating Profit Guidance; Revises FY 2012 Store Sales Guidance; Comments On Q4 2012 Store Sales Guidance

11-Dec-2012

Other Earnings Pre-Announcement

1

Dollar General Corp Issues FY 2013 Guidance In Line With Analysts' Estimates

25-Mar-2013

Equity Financing / Related

1

Dollar General Corp Announces 30.0 Million Share Secondary Offering

27-Sep-2012

Equity Investments

3

Dollar General Corp Announces Pricing of 30.0 Million Share Secondary Offering

27-Mar-2013

Debt Financing / Related

3

Dollar General Corp Announces Pricing of $1.3 Billion of Senior Notes

8-Apr-2013

 

* number of significant developments within the last 12 months

 

 


news

 

Title

Date

Odon residents continue to fight Dollar General
PredictWallStreet (261 Words)

27-Apr-2013

Tryon ABC store back in business
Tryon Daily Bulletin (167 Words)

26-Apr-2013

Richmond qualifying: Kenseth first for Toyota Owners 400
Examiner.com (35 Words)

26-Apr-2013

Richmond qualifying: Kenseth, Vickers make up front row for Cup race
Examiner.com (34 Words)

26-Apr-2013

KNS Exclusive | DA: No prosecution in fatal shooting of Dollar General robber
Knoxville News-Sentinel (TN) (251 Words)

26-Apr-2013

Pudgie's returns to Syracuse: What's in Store
NewsChannel 9 WSYR (67 Words)

26-Apr-2013

 

 

Financial Summary    

 

 

As of 1-Feb-2013

Key Ratios

Company

Industry

Current Ratio (MRQ)

1.54

2.11

Quick Ratio (MRQ)

0.16

0.61

Debt to Equity (MRQ)

0.56

0.58

Sales 5 Year Growth

11.03

9.32

Net Profit Margin (TTM) %

5.95

5.93

Return on Assets (TTM) %

9.50

8.25

Return on Equity (TTM) %

19.72

15.46

 

 

Stock Snapshot    

 

 

Traded: New York Stock Exchange: DG

 

As of 12-Apr-2013

   Financials in: USD

Recent Price

50.31

 

EPS

2.91

52 Week High

56.04

 

Price/Sales

1.03

52 Week Low

39.73

 

Price/Earnings

16.11

Avg. Volume (mil)

4.94

 

Price/Book

3.30

Market Value (mil)

16,462.05

 

Beta

0.12

 

Price % Change

Rel S&P 500%

4 Week

4.42%

2.57%

13 Week

16.08%

7.55%

52 Week

7.89%

-5.78%

Year to Date

14.11%

2.42%

 

Financial Data

Financials in:

USD(mil)

 

Revenue:

16,022.1

Net Income:

952.7

Assets:

10,367.7

Long Term Debt:

2,771.3

 

Total Liabilities:

5,382.4

 

Working Capital:

0.8

 

 

 

Date of Financial Data:

01-Feb-2013

 

1 Year Growth

8.2%

24.3%

7.0%

 

Market Data

Quote Symbol:

DG

Exchange:

New York Stock Exchange

Currency:

USD

Stock Price:

50.3

Stock Price Date:

04-12-2013

52 Week Price Change %:

7.9

Market Value (mil):

16,462,050.0

 

SEDOL:

B5B1S13

ISIN:

US2566771059

 

Equity and Dept Distribution:

Common Stock $0.875 Par, 03/11, 1B auth., 341,521,858 issd. Insiders owns 0.12%. PO 8/83, 1,100,000 shares @ $15.50 byLehman Brothers. 5/00, 5/99, 9/98, 3/98, 9/97, 2/97, 4/96, 3/95, 4/94, 9/93, 3/93, 4/92, 5-for-4 stock splits; 6/91, 3/82, 3/81, 3/80, 10% stock dividends. 07/07, Co. acq. by Buck Holdings, L.P. @ $20.00/sh.

 

 

Key Corporate Relationships

Auditor:

Ernst & Young LLP

Bank:

Crown Credit Co, Everbank Commercial Finance Inc, Greatamerica Leasing Corp, Us Bancorp, Crystal Art Gallery, Marlin Leasing Corp, Oce North America Inc, Platinum Disc Llc, City Group Business Credit Inc, American Greetings Corp, Marlin Business Bank, Sandor Development Co

 

Auditor:

Ernst & Young LLP

 

 

 

 

 

 

 

Additional Information

ABI Number:

435663703

 

 

Fortune 1000 Rank:

183

 

 

 

 

 

 


Strategic Initiatives

 

Sales and Distribution

In the year ended February 3, 2012, the consumables accounted for 73.2% of the company total sales, followed by seasonal (13.8 %), home products (6.8%), and apparel (6.2%). As a discount retailer the company offers everyday low prices on merchandise. The company’s ability to offer price advantage on merchandise receives support from its low-cost operating model and its strategy to maintain limited number of SKUs per category, which in turn helps DGC to maintain strong purchasing power.Sound Profitability IndicatorsThe company witnessed sound profitability in the year ended February 3, 2012 (fiscal 2011: consisting of 53 weeks). The company’s revenues increased from $13035m in 2011 to $14807.19m in 2012, the operating income of the company increased from $1274.07m in 2011 to $1490.80m in 2012, and the net income increased from $627.86m in 2011 to $766.68m in 2012. The increase in sales was due to the increment in stores sales and due to an increase in both customer traffic and average transaction amount.

 

 

Strengths/Weaknesses (SWOT)

 

 

Helpful 
to achieving the objective

Harmful 
to achieving the objective

Internal Origin
(attributes of the organization)

Strengths

·        Product Offerings

·        Sound Profitability Indicators

·        Store Network

Weaknesses

·        Legal Issues

·        Limited Liquidity Position

External Origin
(attributes of the environment)

Opportunities

·        Private Label Gaining Momentum

·        Business Expansion: E-Commerce

·        Key Business Initiatives

Threats

·        Dependence on Suppliers

·        Competitive Market

·        Substantial Debt Burden

 

 

Overview

 

DG is a discount retailer that focuses on convenience, quality brands and low prices. The company leverages its extensive store network across the US and its everyday low prices product offerings to fuel its business growth objectives. However, intense competitive factors in the retail domain and its substantial debt burden could have an adverse affect on its business growth objectives in the long run.

 

Strengths

 

Product Offerings

The company through its extensive network of stores offers a range of products to cater to the demand of its customers in an effective and efficient manner. The company’s stores offer broad selection of merchandise, including consumables, seasonal, home products and apparel, based on a focused assortment of daily necessities. The merchandise offered includes national brands from leading manufacturers, as well as, private brand selections at discounts as compared to the national brands. Its stores offer nearly 10,000 total Stock Keeping Units (SKUs) per store, which can vary based on store's size, geographic location, merchandising initiatives, and business seasonality. The company categorizes its merchandise in four categories, namely, consumables; seasonal; home products; and apparel. Under Consumables the company offers paper and cleaning products, food products, beverages and snacks, health and beauty products, and pet products. Seasonal products include decorations, greeting cards, stationery, toys, batteries, small electronics, prepaid cell phones and accessories, gardening supplies, hardware, automotive and home office supplies. Home products includes kitchen supplies, cookware, small appliances, candles, craft supplies, light bulbs, storage containers, frames, and kitchen, bed and bath soft goods. Apparel category include casual for infants, toddlers, girls, boys, women and men, as well as socks, underwear, disposable diapers, shoes and accessories. In the year ended February 3, 2012, the consumables accounted for 73.2% of the company total sales, followed by seasonal (13.8 %), home products (6.8%), and apparel (6.2%). As a discount retailer the company offers everyday low prices on merchandise. The company’s ability to offer price advantage on merchandise receives support from its low-cost operating model and its strategy to maintain limited number of SKUs per category, which in turn helps DGC to maintain strong purchasing power.

 

Sound Profitability Indicators

The company witnessed sound profitability in the year ended February 3, 2012 (fiscal 2011: consisting of 53 weeks). The company’s revenues increased from $13035m in 2011 to $14807.19m in 2012, the operating income of the company increased from $1274.07m in 2011 to $1490.80m in 2012, and the net income increased from $627.86m in 2011 to $766.68m in 2012. The increase in sales was due to the increment in stores sales and due to an increase in both customer traffic and average transaction amount. The sales of consumables increased from $9,332.1m in 2011 to $10,833.7m in 2012; the sales of seasonal product increased from $1,887.9m in 2011 to $2,051.1m in 2012; sales of home products increased from $917.6m in 2011 to $1,005.2m in 2012; and the sales of apparels increased from $897.3m in 2011 to $917.1m in 2012. The gross profits of the company increased from $4176.56m in 2011 to $4697.91m in 2012. As a result, the operating margin of the company increased from 9.77% in 2011 to 10.06% in 2012, net profit margin increased from 4.81% in 2011 to 5.17% in 2012, return on equity increased from 15.48% in 2011 to 16.42% in 2012, return on capital employed increased from 15.57%% in 2011 to 18.22% in 2012, return on assets increased from 6.57% in 2011 to 7.91% in 2012, return on fixed assets increased from 17.74% in 2010 to 20.10% in 2011, and return on working capital increased from 127.09% in 2011 to 194.83% in 2012.

 

Store Network

The company leverages its extensive store network to tap the immense market potential in the US retail domain. The company is among the largest discount retailer in the US with a network of nearly 10,000 stores in 40 states of the US, primarily in the Southern, Southwestern, Midwestern and Eastern US. The company’s average general stores hold an area of nearly 7,200 sq. ft. of selling space. Its store network consists of three store formats: traditional Dollar General, Dollar General Market and Dollar General Plus store formats. Its Dollar General Market and Dollar General Plus store formats offers a broader selection of perishable foods than its traditional format. The company follows an attractive store economics approach in terms of store size, design and location, for the establishment of new stores, which requires low initial capital investment and low maintenance expenditures. The company is also testing a larger format traditional store known as Dollar General Plus stores, with nearly 10,000 sq. ft. of selling space. Moreover, the company’s store selection strategy focuses on establishing stores at convenient locations in rural, suburban and urban communities, which provides closer proximity to customers. Closer proximity stores offer convenient shopping experience to customers and enhance company’s ability to deliver competitive prices on its products. The company’s market analysis, site selection process, store approval processes and store marketing programs help it to optimize its returns and minimize risks related to unprofitable stores.


Weaknesses

 

Legal Issues

The company has involvement in various legal issues and lawsuits which not only could affect the brand image of the company, but also needs significant commitments on the cost front in terms of fines imposed and penalties levied. In May 2011, a lawsuit was filed by Winn-Dixie Stores, Inc. against the subsidiary unit of DGCs subsidiary Dolgencorp, LLC in the Southern District of Florida. The Winn-Dixie alleged that the that the sale of food and other items in nearly 55 of the Dolgencorp stores was co-located in a shopping center with one of plaintiffs' stores, which violates restrictive covenants which are binding on the occupants of the shopping centers. In June 2010, the company was involved in a civil action lawsuit (Shaleka Gross, et al v. Dollar General Corporation) in US District Court for the Southern District of Mississippi. The plaintiffs in the case include three former non-exempt store employees alleged that they were not paid for all hours worked in violation of the FLSA. The company is also facing a similar case filed in 2006 by its former store manage in the US District Court for the Northern District of Alabama, alleging the company for paying less than the male store managers because of her sex, which was in violation of the Equal Pay Act and Title VII of the Civil Rights Act of 1964. The company is facing various other similar issues which put an additional burden on the cost structure of the company in terms of legal consultancy fees, fines imposed, penalties levied, and damages paid.

 

Limited Liquidity Position

The company witnessed limited liquidity position in the year ended February 3, 2012, which could have an adverse affect on its operations as the company could feel credit crunch in fulfilling its operational and working capital needs. The total current assets of the company declined from $2367.82m in 2011 to $2275.07m in 2012, however, its total current liabilities incremented from $1365.37m in 2011 to $1509.90m in 2012. Moreover, the cash and short term investments of the company substantially declined from $497.45m in 2011 to $126.13m in 2012. As a result, the company’s current ratio declined from 1.73 times in 2011 to 1.50 times in 2012, quick ratio declined from 0.44 times in 2011 to 0.17 times in 2012, and its cash ratio also substantially declined from 0.36 times in 2011 to 0.084 times in 2012.

 

Opportunities

 

Private Label Gaining Momentum

 

The company can benefit amidst the increasing demand of private label goods. It can foster its sales due to the growing preference of private label items, which offers lower cost products then the other established national brands. As a part of its strategic intent the company is focusing on nurturing and enhancing of its private-brand products. The private label brands witnessed increment in sales and dollar share in US retailing segment consisting of supermarkets, convenience stores, drug stores and discount stores in nearly all categories. According to industry experts, in 2011 the overall sales of private label in supermarkets witnessed an increment of 5.1% compared to the figures in 2010, and in drug stores also private labels reported a overall sales increment of 3.8% compared to previous year. Moreover, the private label food and non-food grocery sales in the US in 2011 were $120 billion, which also witnessed substantial growth and is further expected to follow similar growth trajectory in coming years. Private label goods are generally much cheaper to produce than branded goods, due to the lack of advertising and marketing expenses. This strong growth offers retailers an opportunity to invest in the development of their own private labels. Also, the retailers are now becoming increasingly established as brands themselves, marketing their private label products as alternatives to national brands. This increasing demand for the private label products creates huge opportunity for the company.

 

Business Expansion: E-Commerce

E-retailing, has been witnessing a strong growth in the recent years, mostly due to the rising internet penetration and the user-friendly shopping interface created by the retailers. The further enhance its position in convenience and value; the company in 2011 launched its ecommerce channel at dollargeneral.com. The company’s newly launched web store offers an extensive range of brand and private label merchandise, which include health and beauty products, cleaning supplies, baby items, holiday merchandise, home decor, stationery, and snacks among others. According to analysts, the online retail sales in the US are expected to reach $229 billion in 2013. The market is expected to grow at a compound average growth rate (CAGR) of 10% from 2009 to 2013. Moreover, according to Internet World Stats as on December 31, 2011, the internet penetration in the world population stood at 32.7%, compared to 28.7%. Besides, during 2000-2011, internet penetration recorded a growth of 528.1%. The rising popularity of e-retailing has encouraged more and more customers to shop online and place their orders through credit cards, thereby avoiding the time consuming journey and billing queues. Thus, the company's newly launched ecommerce channel could provide it with ample of opportunities to achieve its business growth prospects.

 

Key Business Initiatives

The company has taken various initiatives in the recent past, to fuel its business growth and to expand the scope of its business. In the year ended February 3, 2012, the company opened 625 new stores at various strategic locations which are expected to witness high demand of products, and closed 60 underperforming stores. The company opened 12 new Dollar General Market stores, which includes seven stores with its entry in Nevada. The company through the opening of its new stores entered the markets of Connecticut, New Hampshire, and Nevada. It also remodeled or relocated nearly 575 stores consisting of 550 traditional stores and 25 Dollar General Market stores. In the fiscal 2012, the company has plans to open 625 new stores and to remodel or relocate an additional 550 stores, which includes plans to open 40 new Dollar General Market stores. The company expects the capital expenditures during 2012 to be in the range of $600-$650m. The company also opened a new distribution center in Bessemer, Alabama which became operational in March 2012. The company also leased a distribution facility in Lebec, California which was expected to be operational in April 2012. In June 2012, the company announced its plans to build a distribution center in Bethel Township, in Berks County, Pennsylvania. Moreover, in the recent years, the company made significant investments in facilities, technological improvements and upgrades, which is expected to enhance its efficiency and ability to support merchandising and operational level initiatives. During the first half of 2012, the company opened 295 new stores, remodeled or relocated 416 stores, and closed 29 stores, resulting in total count of 10,203 stores. As per its expansion plans, the company opened 256 traditional Dollar General Stores, 21 new Dollar General Market stores, and 18 Dollar General Plus stores, as well as, remodeled or relocated 46 traditional Dollar General Stores to the Plus format.

 

Threats

 

Dependence on Suppliers

Dollar General sources and sells products from a wide variety of domestic and international suppliers. The company’s major suppliers Procter & Gamble, Kimberly Clark, Unilever, Kellogg's, General Mills, Nabisco, Coca-Cola and PepsiCo. In year ended February 2012, the company made nearly 8% and 7% of its purchases from its largest and second largest suppliers, respectively. Around 8.0% of its purchases were directly imported at cost. Apart from that, its domestic suppliers also import their products or components directly. Therefore, political and economic instability in foreign suppliers’ countries might have a major impact on Dollar General. Along with that, the company is also vulnerable to the financial instability of the suppliers, their failure to meet the standards and any labor problems faced by the suppliers. Disruptions due to labor stoppages, strikes or slowdowns, or other disruptions, involving its vendors or the transportation and handling industries also may negatively affect its ability to receive merchandise and thus may negatively affect its annual sales. This dependence on the third party suppliers/vendors to procure its supplies is fraught with grave country risk and foreign exchange risk.

 

Competitive Market

Being in the discount retail merchandise business, Dollar General faces stiff competition relating to price, store location, merchandise assortment, quality, and customer service. It directly competes with discount stores and mass merchandise retailers. The grocery, drug, convenience, variety and other specialty stores also competes in luring customers from the company. Apart from various local and independent operators, the direct competitors in the dollar store retail category include Family Dollar, Dollar Tree, Fred’s, 99 Cents Only. Other retail categories competing with Dollar General include Wal-Mart Walgreens, CVS, Rite Aid, Target and Costco. Having a greater financial arm, these firms have a competitive edge over Dollar General in terms of marketing, distribution, and other activities. They compete heavily through aggressive promotional activities, merchandise selection and availability, best customer service, right location, longer store hours, best in-store amenities and low price. Due to their large scale operations, extensive geographical markets and product and brand variety, they have better bargaining power from the suppliers compared to Dollar General. Thus the competition pressurizes the company to lower the prices to maintain its competitive position, thereby lowering the margins.

 

Substantial Debt Burden

Increasing debt could have a major impact on the operational performance of the company as a major portion of the company's earnings would be diverted to servicing its debt obligations. This could be of concern to the investors and make it difficult for the company to raise funds on favorable terms from the market. Although the company reduced its total debt burden in 2012 compared to 2011, however it still sustains on the higher side. For the year ended February 3, 2012, the company had total outstanding debt of $2.618 billion, which also includes the current portion of long-term obligations. The outstanding debt includes a $1.964 billion senior secured term loan facility which maturity in July 2014; nearly $450.7m principal amount of senior subordinated toggle notes due 2017; and borrowings of $184.7m under company’s senior secured asset-based revolving credit facility. The company in March 2012 amended its revolving credit facility and increased its maximum borrowing to $1.2 billion and extended the maturity date to July 2014, which was previously scheduled to mature at July 2013. The company incurred this debt to meet its working capital and capital expenditure needs. If it fails to comply with any of the debt service requirements, the debt could become due and payable prior to its scheduled maturity. The company needs to dedicate a significant portion of its cash flow from operations to service interest and principal payments. Any reduction in revenues and operating cash flows could hinder the company’s ability to repay interest and principal, resulting in default.

 

 

Credit Report as of 09/01/2012

 

Location

100 Mission Rdg
Goodlettsville, TN 37072-2171
United States

 

County:

Davidson

MSA:

Nashville, TN

 

Phone:

615-855-4000

Fax:

615-855-4249

URL:

http://dollargeneral.com

 

ABI©:

435663703

 

Annual Sales:

$14,807,188,000 (USD)

Employees:

90,000

 

Facility Size(ft2):

2,500 - 9,999

Facility Own/Lease:

Lease

 

Business Type:

Public

Location Type:

Headquarter

 

Ticker:

DG

Exchange:

NYSE

 

Primary Line of Business:

SIC:

5331-01 - Variety Stores

NAICS:

452990 - All Other General Merchandise Stores

Secondary Lines of Business:

NAICS:

541613 - Marketing Consulting Svcs

 

452112 - Discount Department Stores

SICs:

5311-04 - Retail Shops

 

8742-13 - Marketing Programs & Services

 

 

Corporate Family

Corporate Structure News:

 

Dollar General Corp.

Dollar General Corp. 
Total Corporate Family Members: 9339 
Excluded Small Branches and/or Trading Addresses: 9124 (Available via export) 

 

 

Company Name

Company Type

Location

Country

Industry

Sales
(USD mil)

Employees

Dollar General Corp.

Parent

Goodlettsville, TN

United States

Retail (Specialty)

16,022.1

90,500

Dollar General Dstrbtn Center

Branch

Fulton, MO

United States

Miscellaneous Capital Goods

1,566.1

650

Dollar General Dstrbtn Center

Branch

Indianola, MS

United States

Miscellaneous Capital Goods

1,548.8

650

Dollar General Dstrbtn Center

Branch

Alachua, FL

United States

Miscellaneous Capital Goods

1,546.4

600

Dollar General Dstrbtn Center

Branch

Ardmore, OK

United States

Miscellaneous Capital Goods

1,509.9

600

Dollar General Dstrbtn Center

Subsidiary

Scottsville, KY

United States

Miscellaneous Capital Goods

1,405.9

600

Dollar General Dstrbtn Center

Branch

South Boston, VA

United States

Miscellaneous Capital Goods

1,222.0

500

Dollar General

Branch

Bossier City, LA

United States

Retail (Specialty)

1.2

200

Dollar General

Branch

North Wilkesboro, NC

United States

Retail (Specialty)

15.2

92

Dollar General Market

Branch

Nashville, TN

United States

Retail (Department and Discount)

13.8

65

Dollar General Market

Branch

Nashville, TN

United States

Retail (Department and Discount)

12.1

57

Dollar General Global Sourcing Limited

Subsidiary

Kowloon Bay, Kowloon

Hong Kong

Personal and Household Products

 

55

Dollar General Market

Branch

Louisville, KY

United States

Retail (Department and Discount)

10.3

50

Dollar General

Branch

Bronson, FL

United States

Retail (Specialty)

1.2

50

Dollar General

Branch

Carrollton, OH

United States

Retail (Specialty)

6.8

43

Dollar General

Branch

Orlando, FL

United States

Retail (Specialty)

7.0

40

Dollar General Market

Branch

Pleasant View, TN

United States

Retail (Department and Discount)

7.4

35

Dollar General

Branch

Lakeland, FL

United States

Retail (Specialty)

6.1

35

Dollar General Market

Branch

Scottsville, KY

United States

Retail (Department and Discount)

6.6

32

Dollar General Market

Branch

Fort Oglethorpe, GA

United States

Retail (Department and Discount)

6.5

30

Dollar General Market

Branch

Jackson, GA

United States

Retail (Department and Discount)

6.5

30

Dollar General

Branch

Collinsville, VA

United States

Retail (Specialty)

4.9

30

Dollar General

Branch

Uhrichsville, OH

United States

Retail (Specialty)

4.7

30

Dollar General Market

Branch

Franklin, KY

United States

Retail (Department and Discount)

6.0

29

Dollar General Market

Branch

Louisville, KY

United States

Retail (Department and Discount)

5.8

28

Dollar General Market

Branch

Seymour, TN

United States

Retail (Department and Discount)

5.5

26

Dollar General Market

Branch

Bowling Green, KY

United States

Retail (Department and Discount)

5.3

26

Dollar General Market

Branch

Ardmore, TN

United States

Retail (Department and Discount)

5.3

25

Dollar General Market

Branch

Huntsville, AL

United States

Retail (Department and Discount)

5.3

25

Dollar General

Branch

Livonia, MI

United States

Retail (Specialty)

3.9

25

Dollar General Market

Branch

Edmonton, KY

United States

Retail (Department and Discount)

4.9

24

Dollar General Market

Branch

Crossville, TN

United States

Retail (Department and Discount)

4.9

23

Dollar General

Branch

Harriman, TN

United States

Retail (Specialty)

3.7

23

Dollar General

Branch

Greeneville, TN

United States

Retail (Specialty)

3.7

23

Dollar General Market

Branch

Cedartown, GA

United States

Retail (Grocery)

5.6

22

Dollar General Market

Branch

Livingston, TN

United States

Retail (Department and Discount)

4.7

22

Dollar General Market

Branch

White House, TN

United States

Retail (Department and Discount)

4.7

22

Dollar General

Branch

La Vergne, TN

United States

Retail (Specialty)

3.6

22

Dollar General

Branch

Clarksville, VA

United States

Retail (Specialty)

3.5

21

Dollar General Market

Branch

Powell, TN

United States

Retail (Department and Discount)

4.2

20

Dollar General Market

Branch

Hermitage, TN

United States

Retail (Department and Discount)

4.2

20

Dollar General Market

Branch

Knoxville, TN

United States

Retail (Department and Discount)

4.2

20

Dollar General Market

Branch

Lebanon, TN

United States

Retail (Department and Discount)

4.2

20

Dollar General Market

Branch

Hendersonville, TN

United States

Retail (Department and Discount)

4.2

20

Dollar General Market

Branch

Knoxville, TN

United States

Retail (Department and Discount)

4.2

20

Dollar General

Branch

Saddle Brook, NJ

United States

Retail (Specialty)

3.6

20

Dollar General

Branch

Bluefield, VA

United States

Retail (Specialty)

3.3

20

Dollar General

Branch

New Orleans, LA

United States

Retail (Specialty)

3.3

20

Dollar General

Branch

Montgomery, AL

United States

Retail (Specialty)

3.2

20

Dollar General Market

Branch

Madison, AL

United States

Retail (Department and Discount)

4.0

19

Dollar General

Branch

Merritt Island, FL

United States

Retail (Specialty)

3.3

19

Dollar General

Branch

Old Hickory, TN

United States

Retail (Specialty)

3.1

19

Dollar General Market

Branch

Lewisburg, TN

United States

Retail (Department and Discount)

3.8

18

Dollar General

Branch

Labelle, FL

United States

Retail (Specialty)

3.1

18

Dollar General

Branch

Winter Park, FL

United States

Retail (Specialty)

3.1

18

Dollar General

Branch

Halethorpe, MD

United States

Retail (Specialty)

3.1

18

Dollar General

Branch

Nashville, TN

United States

Retail (Specialty)

2.9

18

Dollar General

Branch

Redford, MI

United States

Retail (Specialty)

2.8

18

Dollar General

Branch

Grand Prairie, TX

United States

Retail (Specialty)

3.1

17

Dollar General

Branch

Azle, TX

United States

Retail (Specialty)

3.1

17

Dollar General

Branch

Nashville, TN

United States

Retail (Specialty)

2.8

17

Dollar General

Branch

Neosho, MO

United States

Retail (Specialty)

2.8

17

Dollar General Market

Branch

Cookeville, TN

United States

Retail (Department and Discount)

3.4

16

Dollar General Market

Branch

Bardstown, KY

United States

Retail (Department and Discount)

3.3

16

Dollar General

Branch

Amsterdam, NY

United States

Retail (Specialty)

2.8

16

Dollar General

Branch

Lake Butler, FL

United States

Retail (Specialty)

2.8

16

Dollar General

Branch

Oxford, PA

United States

Retail (Specialty)

2.7

16

Dollar General

Branch

Warren, PA

United States

Retail (Specialty)

2.7

16

Dollar General

Branch

Pittsburgh, PA

United States

Retail (Specialty)

2.7

16

Dollar General

Branch

Jackson, MO

United States

Retail (Specialty)

2.6

16

Dollar General

Branch

Doniphan, MO

United States

Retail (Specialty)

2.6

16

Dollar General

Branch

Boyle, MS

United States

Retail (Specialty)

2.6

16

Dollar General

Branch

Marshall, AR

United States

Retail (Specialty)

2.5

16

Dollar General Market

Branch

Fayetteville, TN

United States

Retail (Department and Discount)

3.2

15

Dollar General

Branch

Medina, NY

United States

Retail (Specialty)

2.6

15

Dollar General

Branch

Tallahassee, FL

United States

Retail (Specialty)

2.6

15

Dollar General

Branch

Palm Bay, FL

United States

Retail (Specialty)

2.6

15

Dollar General

Branch

Chestertown, MD

United States

Retail (Specialty)

2.6

15

Dollar General

Branch

Bryans Road, MD

United States

Retail (Specialty)

2.6

15

Dollar General

Branch

Cambridge, MD

United States

Retail (Specialty)

2.6

15

Dollar General

Branch

Walnutport, PA

United States

Retail (Specialty)

2.5

15

Dollar General

Branch

Troutville, VA

United States

Retail (Specialty)

2.5

15

Dollar General

Branch

Nashville, TN

United States

Retail (Specialty)

2.4

15

Dollar General

Branch

Camden, TN

United States

Retail (Specialty)

2.4

15

Dollar General

Branch

Winona, MS

United States

Retail (Specialty)

2.4

15

Dollar General

Branch

Jackson, MS

United States

Retail (Specialty)

2.4

15

Dollar General

Branch

New Castle, IN

United States

Retail (Specialty)

2.4

15

Dollar General

Branch

Cleveland, OH

United States

Retail (Specialty)

2.4

15

Dollar General

Branch

Maumee, OH

United States

Retail (Specialty)

2.4

15

Dollar General

Branch

Denmark, SC

United States

Retail (Specialty)

2.4

15

Dollar General

Branch

Beaufort, SC

United States

Retail (Specialty)

2.4

15

Dollar General

Branch

Lawrenceville, VA

United States

Retail (Department and Discount)

3.0

14

Dollar General

Branch

Mesquite, TX

United States

Retail (Specialty)

2.6

14

Dollar General

Branch

Duncanville, TX

United States

Retail (Specialty)

2.6

14

Dollar General

Branch

Binghamton, NY

United States

Retail (Specialty)

2.4

14

Dollar General

Branch

Glen Burnie, MD

United States

Retail (Specialty)

2.4

14

Dollar General

Branch

Smyrna, DE

United States

Retail (Specialty)

2.4

14

Dollar General

Branch

Clayton, OK

United States

Retail (Specialty)

2.4

14

Dollar General

Branch

Riverdale, GA

United States

Retail (Specialty)

2.3

14

Dollar General

Branch

Covington, GA

United States

Retail (Specialty)

2.3

14

Dollar General

Branch

Bonaire, GA

United States

Retail (Specialty)

2.3

14

Dollar General

Branch

Bainbridge, GA

United States

Retail (Specialty)

2.3

14

Dollar General

Branch

Graham, NC

United States

Retail (Specialty)

2.3

14

Dollar General

Branch

Victoria, VA

United States

Retail (Specialty)

2.3

14

Dollar General

Branch

Coushatta, LA

United States

Retail (Specialty)

2.3

14

Dollar General

Branch

Nashville, TN

United States

Retail (Specialty)

2.3

14

Dollar General

Branch

Batesville, AR

United States

Retail (Specialty)

2.2

14

Dollar General

Branch

Chillicothe, OH

United States

Retail (Specialty)

2.2

14

Dollar General

Branch

Munfordville, KY

United States

Retail (Specialty)

2.2

14

Dollar General

Branch

Westland, MI

United States

Retail (Specialty)

2.2

14

Dollar General Market

Branch

Mason, OH

United States

Retail (Department and Discount)

2.7

13

Dollar General

Branch

Edinburg, TX

United States

Retail (Specialty)

2.4

13

Dollar General

Branch

Houston, TX

United States

Retail (Specialty)

2.4

13

Dollar General

Branch

Auburn, IL

United States

Retail (Specialty)

2.3

13

Dollar General

Branch

Alden, NY

United States

Retail (Specialty)

2.3

13

Dollar General

Branch

Port St Joe, FL

United States

Retail (Specialty)

2.3

13

Dollar General

Branch

Phoenix, AZ

United States

Retail (Specialty)

2.2

13

Dollar General

Branch

Okemah, OK

United States

Retail (Specialty)

2.2

13

Dollar General

Branch

Pueblo, CO

United States

Retail (Specialty)

2.2

13

Dollar General

Branch

Turtle Creek, PA

United States

Retail (Specialty)

2.2

13

Dollar General

Branch

Irwin, PA

United States

Retail (Specialty)

2.2

13

Dollar General

Branch

Uniontown, PA

United States

Retail (Specialty)

2.2

13

Dollar General

Branch

Carmichaels, PA

United States

Retail (Specialty)

2.2

13

Dollar General

Branch

Springdale, PA

United States

Retail (Specialty)

2.2

13

Dollar General

Branch

Pine Mountain, GA

United States

Retail (Specialty)

2.2

13

Dollar General

Branch

Newnan, GA

United States

Retail (Specialty)

2.2

13

Dollar General

Branch

Cartersville, GA

United States

Retail (Specialty)

2.2

13

Dollar General

Branch

Moyock, NC

United States

Retail (Specialty)

2.1

13

Dollar General

Branch

Littleton, NC

United States

Retail (Specialty)

2.1

13

Dollar General

Branch

Jamestown, NC

United States

Retail (Specialty)

2.1

13

Dollar General

Branch

Franklinton, LA

United States

Retail (Specialty)

2.1

13

Dollar General

Branch

Blanchard, LA

United States

Retail (Specialty)

2.1

13

Dollar General

Branch

New Orleans, LA

United States

Retail (Specialty)

2.1

13

Dollar General

Branch

Hendersonville, TN

United States

Retail (Specialty)

2.1

13

Dollar General

Branch

Madison, TN

United States

Retail (Specialty)

2.1

13

Dollar General

Branch

Madison, TN

United States

Retail (Specialty)

2.1

13

Dollar General

Branch

Nashville, TN

United States

Retail (Specialty)

2.1

13

Dollar General

Branch

Mc Kenzie, TN

United States

Retail (Specialty)

2.1

13

Dollar General

Branch

Vicksburg, MS

United States

Retail (Specialty)

2.1

13

Dollar General

Branch

Gulfport, MS

United States

Retail (Specialty)

2.1

13

Dollar General

Branch

Mccomb, MS

United States

Retail (Specialty)

2.1

13

Dollar General

Branch

Mt Vernon, IN

United States

Retail (Specialty)

2.1

13

Dollar General

Branch

Indianapolis, IN

United States

Retail (Specialty)

2.1

13

Dollar General

Branch

Covington, IN

United States

Retail (Specialty)

2.1

13

Dollar General

Branch

Mitchell, IN

United States

Retail (Specialty)

2.1

13

Dollar General

Branch

Salem, IN

United States

Retail (Specialty)

2.1

13

Dollar General

Branch

Marietta, OH

United States

Retail (Specialty)

2.1

13

Dollar General

Branch

Owensboro, KY

United States

Retail (Specialty)

2.1

13

Dollar General

Branch

Barnwell, SC

United States

Retail (Specialty)

2.1

13

Dollar General

Branch

Florence, SC

United States

Retail (Specialty)

2.1

13

Dollar General

Branch

Kansas City, KS

United States

Retail (Specialty)

2.0

13

Dollar General

Branch

Indianapolis, IN

United States

Retail (Department and Discount)

2.5

12

Dollar General

Branch

El Paso, TX

United States

Retail (Specialty)

2.2

12

Dollar General

Branch

Dallas, TX

United States

Retail (Specialty)

2.2

12

Dollar General

Branch

Denton, TX

United States

Retail (Specialty)

2.2

12

Dollar General

Branch

Llano, TX

United States

Retail (Specialty)

2.2

12

Dollar General

Branch

Grand Prairie, TX

United States

Retail (Specialty)

2.2

12

Dollar General

Branch

Cedar Hill, TX

United States

Retail (Specialty)

2.2

12

Dollar General

Branch

Presidio, TX

United States

Retail (Specialty)

2.2

12

Dollar General

Branch

Fort Worth, TX

United States

Retail (Specialty)

2.2

12

Dollar General

Branch

San Antonio, TX

United States

Retail (Specialty)

2.2

12

Dollar General

Branch

San Antonio, TX

United States

Retail (Specialty)

2.2

12

Dollar General

Branch

Bethalto, IL

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

Hillsboro, IL

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

Savanna, IL

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

Braidwood, IL

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

Milan, IL

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

Belvidere, IL

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

Sauk Village, IL

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

North Tonawanda, NY

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

Honeoye, NY

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

Whitehall, NY

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

Flagler Beach, FL

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

Quincy, FL

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

Haines City, FL

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

North Port, FL

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

St Petersburg, FL

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

Jacksonville, FL

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

Live Oak, FL

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

Dade City, FL

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

Brigham City, UT

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

Elkton, MD

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

Salisbury, MD

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

Baltimore, MD

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

Dundalk, MD

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

Dover, DE

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

Newark, DE

United States

Retail (Specialty)

2.1

12

Dollar General

Branch

Ponca City, OK

United States

Retail (Specialty)

2.0

12

Dollar General

Branch

Chicora, PA

United States

Retail (Specialty)

2.0

12

Dollar General

Branch

Clymer, PA

United States

Retail (Specialty)

2.0

12

Dollar General

Branch

Erie, PA

United States

Retail (Specialty)

2.0

12

Dollar General

Branch

Brodheadsville, PA

United States

Retail (Specialty)

2.0

12

Dollar General

Branch

Hanover Twp, PA

United States

Retail (Specialty)

2.0

12

Dollar General

Branch

Canyon Lake, TX

United States

Retail (Specialty)

2.0

11

Dollar General

Branch

Houston, TX

United States

Retail (Specialty)

2.0

11

Dollar General

Branch

Mt Pleasant, TX

United States

Retail (Specialty)

2.0

11

Dollar General

Branch

Fort Worth, TX

United States

Retail (Specialty)

2.0

11

Dollar General

Branch

San Antonio, TX

United States

Retail (Specialty)

2.0

11

Dollar General

Branch

Mckinney, TX

United States

Retail (Specialty)

2.0

11

Dollar General

Branch

Bryan, TX

United States

Retail (Specialty)

2.0

11

Dollar General

Branch

Princeton, TX

United States

Retail (Specialty)

2.0

11

Dollar General

Branch

Manor, TX

United States

Retail (Specialty)

2.0

11

Dollar General

Branch

Garland, TX

United States

Retail (Specialty)

2.0

11

Dollar General

Branch

Del Valle, TX

United States

Retail (Specialty)

2.0

11

Dollar General

Branch

Bradenton, FL

United States

Retail (Department and Discount)

2.3

10

Dollar General

Branch

Norfolk, VA

United States

Retail (Department and Discount)

2.1

10

Dollar General

Branch

Sherman, TX

United States

Retail (Department and Discount)

2.2

9

Dollar General

Branch

Sarasota, FL

United States

Retail (Department and Discount)

2.0

9

Dollar General

Subsidiary

Citra, FL

United States

Retail (Department and Discount)

1.8

8

Dollar General

Subsidiary

Zephyrhills, FL

United States

Retail (Department and Discount)

1.8

8

Dollar General

Subsidiary

Gouverneur, NY

United States

Retail (Specialty)

1.4

8

Dollar General

Subsidiary

Fort Myers, FL

United States

Retail (Department and Discount)

1.4

6

Dollar General

Subsidiary

Live Oak, FL

United States

Retail (Department and Discount)

1.4

6

Dollar General

Subsidiary

Tarpon Springs, FL

United States

Retail (Department and Discount)

1.4

6

Dollar General

Subsidiary

Marysville, MI

United States

Retail (Specialty)

0.8

5

 

 

 

 

 


Competitors Report

 

Company Name

Location

Employees

Ownership

99 Cents Only Stores

City Of Commerce, California, United States

12,800

Private

Big Lots, Inc.

Columbus, Ohio, United States

13,100

Public

CVS Caremark Corporation

Woonsocket, Rhode Island, United States

203,000

Public

Dollar Tree, Inc.

Chesapeake, Virginia, United States

15,380

Public

Family Dollar Stores, Inc.

Matthews, North Carolina, United States

33,000

Public

Fred's, Inc.

Memphis, Tennessee, United States

5,135

Public

Minor Corporation PCL

Bangkok, Thailand

100

Public

Rite Aid Corporation

Camp Hill, Pennsylvania, United States

51,300

Public

Target Corporation

Minneapolis, Minnesota, United States

361,000

Public

Walgreen Company

Deerfield, Illinois, United States

171,000

Public

Wal-Mart Stores, Inc.

Bentonville, Arkansas, United States

2,200,000

Public

 

 

Executive report

 

Board of Directors

 

Name

Title

Function

 

Richard W. Dreiling

Chairman and Chief Executive Officer

Chairman

 

Biography:

Mr. Richard W. Dreiling is Chairman of the Board, Chief Executive Officer of Dollar General Corp. Mr. Dreiling joined Dollar General in January 2008 as Chief Executive Officer and a member of Company's Board. He was appointed Chairman of the Board on December 2, 2008. Prior to joining Dollar General, Mr. Dreiling served as Chief Executive Officer, President and a director of Duane Reade Holdings, Inc. and Duane Reade Inc., from November 2005 until January 2008 and as Chairman of the Board of Duane Reade from March 2007 until January 2008. Prior to that, beginning in March 2005, he served as Executive Vice President—Chief Operating Officer of Longs Drug Stores Corporation, an operator of a chain of retail drug stores on the West Coast and Hawaii, after having joined Longs in July 2003 as Executive Vice President and Chief Operations Officer. From 2000 to 2003, he served as Executive Vice President—Marketing, Manufacturing and Distribution at Safeway, Inc., a food and drug retailer. Prior to that, Mr. Dreiling served from 1998 to 2000 as President of Vons, a Southern California food and drug division of Safeway. He currently serves as the Vice Chairman of the Retail Industry Leaders Association (RILA). Mr. Dreiling is a director of Lowe's Companies, Inc.

 

Age: 59

 

Education:

Rockhurst University, B (Industrial Relations)

 

Compensation/Salary:$1,235,626

Compensation Currency: USD

 

Raj Kumar Agrawal

 

Director

Director/Board Member

 

 

Biography:

Mr. Raj Kumar Agrawal is Director of Dollar General Corp. Mr. Agrawal joined Kohlberg Kravis Roberts & Co., L.P. ("KKR") in May 2006 and is the North American head of KKR's Infrastructure business. He previously was a member of KKR's Retail and Energy and Natural Resources industry teams. From 2002 to May 2006, he was a Vice President with Warburg Pincus, where he was involved in the execution and oversight of a number of investments in the energy and infrastructure sector. Mr. Agrawal's prior experience also includes Thayer Capital Partners, where he played a role in the firm's business and manufacturing services investments, and McKinsey & Co., where he provided strategic and mergers and acquisitions advice to clients in a variety of industries. Mr. Agrawal is a director of Colonial Pipeline Company and Bayonne Water JV Parent, LLC.

 

Age: 40

 

Warren F. Bryant

 

Independent Director

Director/Board Member

 

 

Biography:

Mr. Warren F. Bryant is Independent Director of Dollar General Corp. Mr. Bryant served as the President and Chief Executive Officer of Longs Drug Stores Corporation, a retail drugstore chain on the West Coast and in Hawaii, from 2002 through 2008 and as its Chairman of the Board from 2003 through his retirement in 2008. Prior to joining Longs Drug Stores, he served as the Senior Vice President of The Kroger Co., a retail grocery chain, from 1999 to 2002. Mr. Bryant is a director of OfficeMax Incorporated and George Weston LTD of Canada.

 

Age: 67

 

Education:

Azusa Pacific University, MBA 
California State University, BS 

 

Michael M. Calbert

 

Director

Director/Board Member

 

 

Biography:

Mr. Michael M. Calbert is Director of Dollar General Corp. Mr. Calbert joined KKR in 2000 and has been directly involved with several portfolio companies. He heads the Retail industry team within KKR's Private Equity platform. He joined Randall's Food Markets beginning in 1994 and served as the Chief Financial Officer from 1997 until it was sold in September 1999. He joined KKR in January 2000. Mr. Calbert also previously worked as a certified public accountant and consultant with Arthur Andersen Worldwide from 1985-1994, where his primary focus was on the retail/consumer industry. Mr. Calbert is a director of Toys "R" Us, Inc., US Foods, Pets at Home, and Academy, Ltd.

 

Age: 50

 

Education:

Stephen F. Austin University, BA 
University of Houston, MBA 

 

Sandra B. Cochran

 

Independent Director

Director/Board Member

 

 

Biography:

Ms. Sandra B. Cochran is Independent Director of Dollar General Corporation. Cochran is the president and chief executive officer of Cracker Barrel Old Country Store, Inc. She joined Cracker Barrel in April 2009 as executive vice president and chief financial officer and was named president and chief operating officer in November 2010. Cochran was named to her current position in September of 2011. She was previously chief executive officer at book retailer Books-A-Million, Inc. from February 2004 to April 2009. She also served as that company's president, chief financial officer and vice president of finance. Cochran has 20 years of experience in the retail industry. Cochran is a director of Cracker Barrel Old Country Store, Inc. She served as a director of Books-A-Million, Inc. from 2006 to 2009.

 

Age: 54

 

Education:

Pacific Lutheran University, MBA 
Vanderbilt University (Chemical Engineering)

 

Pat Fili-Krushel

 

Director

Director/Board Member

 

 

Biography:

Ms. Patricia D. Fili-Krushel has been appointed as Independent Director of Dollar General Corp., effective October 15, 2012. Ms. Fili-Krushel has served as Chairman of NBCUniversal News Group, a division of NBCUniversal Media, LLC, composed of NBC News, CNBC, MSNBC and the Weather Channel, since July 2012. She previously served as Executive Vice President of NBCUniversal (January 2011—July 2012) with a broad portfolio of functions reporting to her, including Operations and Technical Services, Business Strategy, Human Resources and Legal. Prior to NBCUniversal, Ms. Fili-Krushel was Executive Vice President of Administration at Time Warner Inc. (July 2001—December 2010) where her responsibilities included oversight of philanthropy, corporate social responsibility, human resources, worldwide recruitment, employee development and growth, compensation and benefits, and security. Before joining Time Warner in July 2001, Ms. Fili-Krushel had been CEO of WebMD Health since April 2000. From July 1998 to April 2000, Ms. Fili-Krushel was President of the ABC Television Network, and from 1993 to 1998 she served as President of ABC Daytime. Before joining ABC, she had been with Lifetime Television since 1988. Prior to Lifetime, Ms. Fili-Krushel held several positions with Home Box Office. Before joining HBO, Ms. Fili-Krushel worked for ABC Sports in various positions.

 

Age: 59

 

Patricia Fili-Krushel

 

Board Member

Director/Board Member

 

 

Adrian M. Jones

Director

Director/Board Member

 

 

Biography:

Mr. Adrian M. Jones is Director of Dollar General Corp. Mr. Jones has been with Goldman, Sachs & Co. since 1994. He is a managing director in Principal Investment Area (PIA) in New York where he focuses on consumer-related and healthcare opportunities. Mr. Jones is a director of Biomet, Inc., Education Management Corporation, HealthMarkets, Inc. and Michael Foods Group, Inc. He also previously served on the board of directors of Burger King Holdings, Inc. from 2002 to 2008.

 

Age: 48

 

Education:

Harvard University, MBA 
University College of Dublin, M 
National University of Ireland, Galway, B 

 

 

William C. Rhodes

 

Independent Director

Director/Board Member

 

 

Biography:

Mr. William C. Rhodes, III, is Independent Director of Dollar General Corp. Mr. Rhodes was elected Chairman of AutoZone, a specialty retailer and distributor of automotive replacement parts and accessories, in June 2007. He has served as President and Chief Executive Officer and as a director of AutoZone since 2005. Prior to his appointment as President and Chief Executive Officer, Mr. Rhodes was Executive Vice President—Store Operations and Commercial. Prior to 2004, he had been Senior Vice President—Supply Chain and Information Technology since 2002, and prior thereto had been Senior Vice President—Supply Chain since 2001. Prior to that time, he served in various capacities with AutoZone, including Vice President—Stores in 2000, Senior Vice President—Finance and Vice President—Finance in 1999, and Vice President—Operations Analysis and Support from 1997 to 1999. Prior to 1994, Mr. Rhodes was a manager with Ernst & Young, LLP.

 

Age: 47

 

David B. Rickard

 

Independent Director

Director/Board Member

 

 

Biography:

Mr. David B. Rickard is Independent Director of Dollar General Corp. Mr. Rickard served as the Executive Vice President, Chief Financial Officer and Chief Administrative Officer of CVS Caremark Corporation, a retail pharmacy chain and provider of healthcare services and pharmacy benefits management, from September 1999 until his retirement in December 2009. Prior to joining CVS Caremark, Mr. Rickard was the Senior Vice President and Chief Financial Officer of RJR Nabisco Holdings Corporation from March 1997 to August 1999. Previously, he was Executive Vice President of International Distillers and Vintners Americas. Mr. Rickard is a director of Harris Corporation and Jones Lang LaSalle Incorporated. He served as a director of The May Companies from January 2005 to August 2005.

 

Age: 66

 

Education:

Harvard University, MBA 
Cornell University, BA 

 

 

 

 

 

Executives

 

Name

Title

Function

 

Richard W. Dreiling

Chairman and Chief Executive Officer

Chief Executive Officer

 

Biography:

Mr. Richard W. Dreiling is Chairman of the Board, Chief Executive Officer of Dollar General Corp. Mr. Dreiling joined Dollar General in January 2008 as Chief Executive Officer and a member of Company's Board. He was appointed Chairman of the Board on December 2, 2008. Prior to joining Dollar General, Mr. Dreiling served as Chief Executive Officer, President and a director of Duane Reade Holdings, Inc. and Duane Reade Inc., from November 2005 until January 2008 and as Chairman of the Board of Duane Reade from March 2007 until January 2008. Prior to that, beginning in March 2005, he served as Executive Vice President—Chief Operating Officer of Longs Drug Stores Corporation, an operator of a chain of retail drug stores on the West Coast and Hawaii, after having joined Longs in July 2003 as Executive Vice President and Chief Operations Officer. From 2000 to 2003, he served as Executive Vice President—Marketing, Manufacturing and Distribution at Safeway, Inc., a food and drug retailer. Prior to that, Mr. Dreiling served from 1998 to 2000 as President of Vons, a Southern California food and drug division of Safeway. He currently serves as the Vice Chairman of the Retail Industry Leaders Association (RILA). Mr. Dreiling is a director of Lowe's Companies, Inc.

 

Age: 59

 

Education:

Rockhurst University, B (Industrial Relations)

 

Compensation/Salary:$1,235,626

Compensation Currency: USD

 

Brian Hartshorn

Senior Director of Merchandising for Food and Pet Care

Division Head Executive

 

 

 

Jim Smits

 

SVP and General Merchandising Manager, with Oversight of Food, Beverage, Pet Care and Perishables

Division Head Executive

 

 

Jimmy Stegall

Senior Director of Merchandising over Beer,Wine, Cookies, Candles and Snacks

Division Head Executive

 

 

Todd J. Vasos

Executive Vice President, Division President and Chief Merchandising Officer

Division Head Executive

 

 

Biography:

Mr. Todd J. Vasos is Executive Vice President, Division President and Chief Merchandising Officer of Dollar General Corp. Prior to joining Dollar General, Mr. Vasos served in executive positions with Longs Drug Stores Corporation for 7 years, including Executive Vice President and Chief Operating Officer (February 2008 through November 2008) and Senior Vice President and Chief Merchandising Officer (2001-2008), where he was responsible for all pharmacy and front-end marketing, merchandising, procurement, supply chain, advertising, store development, store layout and space allocation, and the operation of three distribution centers. He also previously served in leadership positions at Phar-Mor Food and Drug Inc. and Eckerd Drug Corp.

 

Age: 51

 

Education:

Western Carolina University, B 

 

Compensation/Salary:$654,617

Compensation Currency: USD

 

 

Mike Wilkins

SVP and General Merchandising Manager for Health, Beauty, Paper and Cleaning, Retailer’s Private Brands

Division Head Executive

 

 

 

Ken Adler

Fleet Operations Manager

Operations Executive

 

 

Bobby Aflatooni

IT Operations & Architecture

Operations Executive

 

 

 

Mike Coltrane

Operations Manager

Operations Executive

 

 

Steven Flatt

Senior Manager, Fleet Operations

Operations Executive

 

 

 

Jeff Harpole

Senior Director Transportation Operations

Operations Executive

 

 

 

Sherry Ives

Transportation Operations Manager

Operations Executive

 

 

 

Doug Lauer

Operations Analyst

Operations Executive

 

 

Emmy Ozomaro

Senior Director, Supply Chain Operatio

Operations Executive

 

 

Jon Rogers

Senior Director-Store Operations

Operations Executive

 

 

 

Gregory A. Sparks

Executive Vice President - Store Operations

Operations Executive

 

 

Biography:

Mr. Gregory A. Sparks is Executive Vice President - Store Operations of Dollar General Corp. Prior to joining Dollar General, Mr. Sparks served as Division President, Seattle Division, for Safeway Inc., a food and drug retailer, a role he had held since 2001. As Division President of the Seattle Division, Mr. Sparks was responsible for the supervision of approximately 200 stores and approximately 23,000 employees in the northwest region and oversaw real estate, finance and operations of the Seattle Division. Mr. Sparks has 36 years of retail experience including a 34-year career with Safeway where he held roles of increasing responsibility including merchandising manager (1987), category manager (1987-1990), divisional director of merchandising, grocery and general merchandise (1990-1997) and divisional vice president of marketing (1997-2001).

 

Age: 52

 

Education:

University of Phoenix, MBA 
Phillips University, BS (Management)

 

Compensation/Salary:$523,618

Compensation Currency: USD

 

Rich Szellan

Senior Director Merchandise Operations

Operations Executive

 

 

 

Jennifer Wauthier

 

Information Technology Operations Analyst

Operations Executive

 

 

Roderick West

Vice President-Process Improvement

Operations Executive

 

 

Education:

Clark Atlanta University, BS (Mathematics)
Georgia Institute of Technology, Bachelor of Industrial Engineering 
Goizueta School of Business at Emory University, MBA 

 

 

Shelia Scull

Environmental Services Manager

Environment/Safety Executive

 

 

Tj Wood

Environmental Services Manager

Environment/Safety Executive

 

 

Patricia Carter

Business Manager

Administration Executive

 

 

Stephanie Lewis

Stock Plan Administrator

Administration Executive

 

 

Amy Neal

Lp Vice President Administration

Administration Executive

 

 

Prudence Neely

Rent Administration

Administration Executive

 

 

Jeff O'Neal

Technical Administrator

Administration Executive

 

 

John Orum

Technical Services Administrator

Administration Executive

 

 

Jennifer Patterson

Business Manager

Administration Executive

 

 

Amanda Petitt

Senior Rent Administration Coordinator

Administration Executive

 

 

John Spalding

Security Systems Administrator

Administration Executive

 

 

Laurie Wells

Administrative Services

Administration Executive

 

 

Larry Bricker

Senior Financial Analyst Fp and A

Finance Executive

 

 

Krista Campbell

Director Financial Planning and Analysis

Finance Executive

 

 

 

John Feray

Senior Vice President, Finance and Strategy

Finance Executive

 

 

Spencer Ferebee

 

Vice President-Internal Audit

Finance Executive

 

 

Education:

Lehigh University, BS (Industrial Engineering)
Duke University, MBA 

 

Preston Flowers

Manager, Financial Planning, Merchandising

Finance Executive

 

 

Clayton Klutts

Vp Financial Planning and Analysis

Finance Executive

 

 

John Parker

 

Finance

Finance Executive

 

 

David M. Tehle

Chief Financial Officer, Executive Vice President

Finance Executive

 

 

Biography:

Mr. David M. Tehle is Chief Financial Officer, Executive Vice President of Dollar General Corp. He served from 1997 to June 2004 as Executive Vice President and Chief Financial Officer of Haggar Corporation, a manufacturing, marketing and retail corporation. From 1996 to 1997, he was Vice President of Finance for a division of The Stanley Works, one of the world's manufacturers of tools, and from 1993 to 1996, he was Vice President and Chief Financial Officer of Hat Brands, Inc., a hat manufacturer. Earlier in his career, Mr. Tehle served in a variety of financial-related roles at Ryder System, Inc. and Texas Instruments. Mr. Tehle is a director of Jack in the Box, Inc.

 

Age: 56

 

Education:

University of Michigan, MBA 
University of Wisconsin, BS (Economics)

 

Compensation/Salary:$677,136

Compensation Currency: USD

 

Tara Wade

Financial Analyst, Financial Planning, Merchandising

Finance Executive

 

 

Bill Bell

Analyst, Inventory Accounting

Accounting Executive

 

 

Bill Bohon

Director-Accounts Payable

Accounting Executive

 

 

Jessica Bradberry

Tax Accountant

Accounting Executive

 

 

Sal Mazzola

Senior Manager, Internal Audit

Accounting Executive

 

 

Cristen Osborne

Internal Audit

Accounting Executive

 

 

 

Rindy Ridings

Manager Accounts Payable

Accounting Executive

 

 

Utonah Ruiz

Senior Ap Analyst, Auditor

Accounting Executive

 

 

James Bryant

Senior Tax Manager

Corporate Tax Executive

 

 

James Miller

Director - Tax

Corporate Tax Executive

 

 

 

Melinda Stewart

Payroll Tax Supervisor

Corporate Tax Executive

 

 

 

Wade Smith

 

Treasurer

Treasurer

 

 

Lee Carlisle

Assistant Controller

Controller

 

 

 

Anita C. Elliott

Senior Vice President, Controller

Controller

 

 

Biography:

Ms. Anita C. Elliott is Senior Vice President, Controller of Dollar General Corp. Prior to joining Dollar General, she served as Vice President and Controller of Big Lots, Inc., a closeout retailer, from May 2001 to August 2005. Overseeing a staff of 140 employees at Big Lots, she was responsible for accounting operations, financial reporting and internal audit. Prior to serving at Big Lots, she served as Vice President and Controller for Jitney-Jungle Stores of America, Inc., a grocery retailer, from April 1998 to March 2001. At Jitney-Jungle, Ms. Elliott was responsible for the accounting operations and the internal and external financial reporting functions. Prior to serving at Jitney-Jungle, she practiced public accounting for 12 years, 6 of which were with Ernst & Young LLP.

 

Age: 48

 

Education:

College of William and Mary, MBA 
College of William and Mary, BBA 

 

Jamison Blair

Benefits Team Leader

Benefits & Compensation Executive

 

 

 

Dianne Curtis

Senior Compensation Analyst

Benefits & Compensation Executive

 

 

Jenny Doss

Senior Benefits Specialist

Benefits & Compensation Executive

 

 

Charlotte Frakes

Payroll Manager

Benefits & Compensation Executive

 

 

 

Barbara Warren

Human Resources Benefits Manager

Benefits & Compensation Executive

 

 

Kyle Adkins

Senior Hris Analyst and Support Specialist

Human Resources Executive

 

 

 

Mark Coe

Senior Manager Field Human Resources

Human Resources Executive

 

 

 

Bill Connor

Comp, Bens, Hris

Human Resources Executive

 

 

Richard Crist

Hris Specialist

Human Resources Executive

 

 

 

Cindy Douglas

Senior Field Recruiter

Human Resources Executive

 

 

Dorothy Freeland

Director Hris and Employment Ctr

Human Resources Executive

 

 

Mary Green

Senior Manager Human Resources Systems Manager

Human Resources Executive

 

 

David Harbison

Director Dc Human Resources

Human Resources Executive

 

 

 

Charlotte Hutchins

Human Resources Director

Human Resources Executive

 

 

Shearon Ingram

Manager Human Resources

Human Resources Executive

 

 

Cindy Mccormack

Senior Field Recruiter

Human Resources Executive

 

 

 

Melissa Ousley

Hris Compliance Supervisor

Human Resources Executive

 

 

Kathy Reardon

Human Resources Director

Human Resources Executive

 

 

Jeffrey R Rice

 

Vice President-Human Resources

Human Resources Executive

 

 

Education:

Western Kentucky University, BS (Biology/Business)

 

 

Heather Robertson

Diversity Manager

Human Resources Executive

 

 

Chris Evans

Director Training

Training Executive

 

 

David Gouvion

Director Training

Training Executive

 

 

Jeff Kerst

Regional Trainer

Training Executive

 

 

 

Donna Turk

Director Field Training

Training Executive

 

 

Makia Moore

 

Senior Manager Customer Insight

Customer Service Executive

 

 

John W. Flanigan

Executive Vice President - Global Supply Chain

International Executive

NP*

 

Biography:

Mr. John W. Flanigan is Executive Vice President - Global Supply Chain of Dollar General Corp. He joined Dollar General as Senior Vice President, Global Supply Chain, in May 2008. He was promoted to Executive Vice President in March 2010. He has 25 years of management experience in retail logistics. Prior to joining Dollar General, he was group vice president of logistics and distribution for Longs Drug Stores Corporation from October 2005 to April 2008. In this role, he was responsible for overseeing warehousing, inbound and outbound transportation and facility maintenance to service over 500 retail outlets. From September 2001 to October 2005 he served as the Vice President of Logistics for Safeway Inc. where he oversaw distribution of food products from Safeway distribution centers to all retail outlets, inbound traffic and transportation. He also held distribution and logistics leadership positions at Vons—a Safeway company, Specialized Distribution Management Inc., and Crum & Crum Logistics.

 

Age: 61

 

Education:

Indiana University, M 
Washington State University, B 

 

Compensation/Salary:$403,156

Compensation Currency: USD

 

Liana Genovesi

Senior Director Global Sourcing

International Executive

 

 

Adam Hall

Director, International Logistics

International Executive

 

 

Nancy Parks

 

Global Compliance Manager

International Executive

 

 

 

Jason Brimingham

Autocad Manager - Store Design

Marketing Executive

 

 

Denise Coscolluela

 

Brand Manager

Marketing Executive

 

 

 

Greg Costa

 

Brand Manager

Marketing Executive

 

 

Angela Patton

Senior Marketing Manager

Marketing Executive

 

 

Dee Adams

Corporate Communications Manager

Corporate Communications Executive

 

 

Brett Luckett

Manager, Communications

Corporate Communications Executive

 

 

 

Rebecca Sanders

Communications Coordinator

Corporate Communications Executive

 

 

Kristen Collins

 

Graphic Designer

Advertising Executive

 

 

Trevor Adcock

Manager of Information Technology

Information Executive

 

 

Melody Alford

Programmer Analyst

Information Executive

 

 

Chris Beegle

Information Technology Manager

Information Executive

 

 

Cathy Burris

Information Technology Change Management Analyst

Information Executive

 

 

 

Pamela Campbell

Merchandising Systems

Information Executive

 

 

Jason Clapp

Senior Manager, Warehouse Management Systems, Dollar General Corp.

Information Executive

 

 

 

Patty Crews

 

Information Technology Project Manager

Information Executive

 

 

Kim Eden

Project Manager Merchandising Systems

Information Executive

 

 

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Jay Elder

 

Information Technology Project Manager

Information Executive

 

 

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Leonard English

Information Technology Programmer

Information Executive

 

 

Christy Oneal

Programmer Analyst

Information Executive

 

 

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Jeff Owen

Director Store Systems

Information Executive

 

 

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Carlos Pietragallo

Director, Merchandising Systems

Information Executive

 

 

Guy Reed

Manager, Pos Systems

Information Executive

 

 

John Wilcox

Information Technology Manager

Information Executive

 

 

Brian Williams

 

IT Technical Services

Information Executive

 

 

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Tony Zuazo

Senior Director Inventory and Planning Systems

Information Executive

 

 

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Richard Bruner

Network Manager

Network Management Executive

 

 

Jeremy Green

Network Engineer

Network Management Executive

 

 

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Tim Kirby

Logistics Analyst, Network Optimization

Network Management Executive

 

 

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Susan Porter

Logistics Analyst, Transportation and Network Optimization

Network Management Executive

 

 

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Rodger Reed

Systems Analyst

Network Management Executive

 

 

Troy Sloan

Network Administrator

Network Management Executive

 

 

Steve Burnside

 

Senior Network Engineer

Engineering/Technical Executive

 

 

Kenneth Meador

Manager, Database Services

Engineering/Technical Executive

 

 

Enrique Morales

Senior Director, Supply Chain Engineering

Engineering/Technical Executive

 

 

Steve Patterson

Senior Programmer

Engineering/Technical Executive

 

 

Craig Sewell

Senior Oracle Dba

Engineering/Technical Executive

 

 

Mike Siebert

Senior Network Engineer

Engineering/Technical Executive

 

 

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Anita Cartmel

Telecommunications Manager

Telecommunications Executive

 

 

Carol Nakauchi

Brand Manager- Food

Product Management Executive

 

 

Gayle Aertker

Senior Vice President-Real Estate & Store Development

Business Development Executive

 

 

Education:

Northwestern State University, bachelor's (Business/Finance)

 

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Scott Frank

Director of Merchandise Planning and Analysis

Planning Executive

 

 

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Kathleen R Guion

 

Executive Vice President Strategic Planning and Real Estate

Planning Executive

 

 

Biography:

At Dollar General Guion oversees more than 9300 stores in 35 states. Before assuming her current role in November 2005 Guion served as executive vice president of store operations. Prior to joining Dollar General in October 2003 she served as president and chief executive officer of Duke and Long Distributing Company a convenience store chain operator and wholesale distributor of petroleum products. Prior to that time she was an operating partner for Devon Partners (1999 to 2000) where she developed operating plans and assisted in the identification of acquisition targets in the convenience store industry. Additionally Guion served as president and chief operating officer of E-Z Serve Corporation (1997 to 1998) an owner/operator of convenience stores mini-marts and gas marts. From 1987 to 1997 Guion served as the vice president and general manager of the largest division (Chesapeake division) of company-owned stores at 7-Eleven Inc. a convenience store chain. Other positions held by Guion during her tenure at 7-Eleven include district manager zone manager operations manager and division manager (Midwest division).

 

Age: 60

 

Education:

Loyola University, BA 

 

Richard Mcrae

Director Real Estate Planning & Analysis

Planning Executive

 

 

Scott Miller

 

Senior Director of Space Planning

Planning Executive

 

 

Amanda Whited

Merchandise Planning Manager

Planning Executive

 

 

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Melanie Cook

Employment Attorney

Legal Executive

 

 

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Dana Francis

Compliance Manager

Legal Executive

 

 

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Tracy Loftis

Attorney

Legal Executive

 

 

Brian Parson

Gloabal Compliance, Senior Analyst

Legal Executive

 

 

Clay Stephens

Senior Corporate Counsel and Real Estate

Legal Executive

 

 

Suhas Sharma

Production and Qc Specialist

Manufacturing Executive

 

 

Mary White

Print Production Coordinator

Manufacturing Executive

 

 

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Lee Bandlow

Vice President, Transportation

Logistics Executive

 

 

Sherry Bozeman

Transportation Manager

Logistics Executive

 

 

Rita Combs

Senior Support Analyst & Warehouse Ms, Dollar General Corp.

Logistics Executive

 

 

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Tony Fung

Logistics Analyst

Logistics Executive

 

 

Lee Babin

Buyer

Merchandise Management Executive

 

 

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Nikki Bohleber

Assistant Buyer-Perishables

Merchandise Management Executive

 

 

Jeff Clifton

Store Manager

Merchandise Management Executive

 

 

Jennifer Dilts

Associate Buyer-Food and Pet

Merchandise Management Executive

 

 

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Valarie Edmonson

Senior Buyer Fixtures, Supplies

Merchandise Management Executive

 

 

Keri Edwards

Assistant Buyer-Socks, Under, Glasses

Merchandise Management Executive

 

 

Carole Ensley

Senior Buyer

Merchandise Management Executive

 

 

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Kathy Garmon

Exterior Sign Buyer

Merchandise Management Executive

 

 

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Amy Gillis

Buyer

Merchandise Management Executive

 

 

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Karen Giovenco

Senior Buyer Holiday Events

Merchandise Management Executive

 

 

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Eric Hedberg

Buyer - Toy

Merchandise Management Executive

 

 

Cynthia Henderson

Buyer - Domestics

Merchandise Management Executive

 

 

Tyler Hickman

Senior Buyer

Merchandise Management Executive

 

 

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Katie Johnson

Assistant Buyer - Food, Beverage

Merchandise Management Executive

 

 

Lindsey Korrect

Assistant Buyer - Domestics

Merchandise Management Executive

 

 

Jenny O'Neill

Assistant Buyer - Stationery

Merchandise Management Executive

 

 

Katie Pumper

Fixture, Supply Associate Buyer

Merchandise Management Executive

 

 

Melina Richardson

 

Buyer

Merchandise Management Executive

 

 

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Lesli Ridings

Assistant Buyer - Infant, Toddler, Girls

Merchandise Management Executive

 

 

Melissa Riss

Assistant Buyer

Merchandise Management Executive

 

 

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Shelly Robinson

Assistant Buyer, Dg Bargain Zone

Merchandise Management Executive

 

 

Beth Staliloins

Buyer - Socks, Under, Glasses

Merchandise Management Executive

 

 

Al Tenllado

Buyer - Paper Products

Merchandise Management Executive

 

 

Erica Ziegenhorn

Assistant Buyer - Giftware

Merchandise Management Executive

 

 

Robert Barnes

Plant Manager

Facilities Executive

 

 

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Tim Dearman

Vice President Real Estate

Facilities Executive

 

 

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David Elden

Real Estate Manager

Facilities Executive

 

 

Kevin Gromosaik

Real Estate Manager

Facilities Executive

 

 

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John Heisse

Facility Manager

Facilities Executive

 

 

Bob Lach

Real Estate Manager

Facilities Executive

 

 

Chuck Perkins

Real Estate Manager

Facilities Executive

 

 

Gary Smith

Regional Real Estate Director

Facilities Executive

 

 

Dale Stallings

Real Estate Manager

Facilities Executive

 

 

Kevin Whitehead

Georgia Real Estate Manager

Facilities Executive

 

 

Dennis Young

Real Estate Director - West Region

Facilities Executive

 

 

Dennis Thornton

Senior Procurement Manager, Supply Cha

Purchasing Executive

 

 

Todd Bracht

Senior Quality Assurance Manager

Quality Executive

 

 

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Donna Searby

Risk Manager

Insurance Executive

 

 

Jane Stutsman

Senior Director-Risk Management

Insurance Executive

 

 

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Rick Sumner

Director Risk Management

Insurance Executive

 

 

Deborah Crowder

Elearning Manager

Educational Leadership

 

 

Terry Cullom

Health and Welfare Manager Welfare Plans

Medical Specialist

 

 

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Nancy Abbott

Assistant To Todd Vasos

Other

 

 

Darryl Allen

Regional Loss Prevention Manager

Other

 

 

Mark Banister

Senior Director In Store Experience

Other

 

 

Diann Barnes

Manager

Other

 

 

Tim Beach

District Manager

Other

 

 

Sravani Borra

Project Lead

Other

 

 

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Venus Boston

Lease Renewals Representative

Other

 

 

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Stephen Brophy

Vice President

Other

IUSA 

 

Kimberly Brown

Senior Manager Expense Payable

Other

 

 

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Jesse Brown

Construction Coordinator

Other

 

 

Mendy Catron

Edi Analyst

Other

 

 

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Christopher Climer

Computer Operator

Other

 

 

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Stan Coats

Regional Loss Prevention Supervisor

Other

 

 

Christopher Collins

Project Manager

Other

 

 

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Justin Comer

Customer Relations Team Leader

Other

 

 

Steve Cowling

Project Manager - Construction

Other

 

 

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Troy Craig

IT Projects

Other

ACR NP*

 

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Patrick Crowe

Director New Store Development

Other

 

 

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Maribeth Dedmon

Customs Manager

Other

 

 

Tom Drugan

Vice President & Division Manager

Other

IUSA NP*

 

Education:

Northeastern Illinois University, psychology 

 

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Michelle Duran

Dispute Resolution Counsler

Other

 

 

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Randall Emmons

Manager Store Support

Other

 

 

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Ben Felts

Av Coordinator

Other

 

 

David Flowers

E Plan Coordinator

Other

 

 

Ben Francis

Refrigeration Team Leader

Other

 

 

Dotti Freeland

Senior Hirs

Other

 

 

Tammy Fudge

Field Employee Relationsanalyst

Other

 

 

Heather Gammon

Director, Analysis

Other

 

 

Larry Gatta

Vice President Dmm-Consumables

Other

 

 

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Steve Gibson

Manager

Other

 

 

Nelson Gonzalez

Construction Project Manager

Other

 

 

Tammy Harper

Leasing Coordinator Ii

Other

 

 

Melissa Heisse

 

Senior Manager Lease Renewals

Other

 

 

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Jessica Herrell

Utility Coordinator

Other

 

 

Carey Hill

Director of Merchandise Allocations

Other

 

 

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Joseph Hunter

Senior Manager of Lp Process Improvement

Other

 

 

Matthew Irwin

Regional Loss Prevention Manager

Other

 

 

Todd Johnson

District Manager

Other

 

 

Timothy Johnson

Claims Representative

Other

 

 

Kelly King

Special Projects Manager

Other

 

 

George Kirkpatrick

Construction Manager

Other

 

 

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Susan S. Lanigan

Executive Vice President, General Counsel

Other

 

 

Biography:

Ms. Susan S. Lanigan is no longer Executive Vice President, General Counsel of Dollar General Corp., effective May 31, 2013. She has served as Dollar General’s EVP and general counsel since 2005. She joined the company as vice president and general counsel in 2002 and was promoted to senior vice president in 2003. During that time, she has helped to guide the company through transformative transactions including the leveraged buyout by KKR in 2007 and the company’s return to the public markets in 2009. Before joining Dollar General, Lanigan was general cou

sel for Zale Corporation in Dallas, Texas. Prior to that, she was in-house counsel at Turner Broadcasting in Atlanta. She began her career as a litigation associate at Troutman Sanders law firm, also in Atlanta.

 

Age: 50

 

Education:

University of Georgia, JD 
University of Georgia

 

Compensation/Salary:$553,158

Compensation Currency: USD

 

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Lawrence Le Blanc

Vice President, Talent Management and ...

Other

 

 

Diane Lenning

Field Employee Relations Manager

Other

 

 

Jennifer Lopez

New Hire Coordinator

Other

 

 

Krys Mathis

Scs Business

Other

 

 

Mark Mccoy

Alachua, Fl Dc Maintenance Manager

Other

 

 

Bobby Mcdonald

Architectural Plan Coordinator

Other

 

 

Kristi Meacham

Dollar General Corporation

Other

 

 

Johnny Moore

Director- Daymon

Other

 

 

Kelly Moye

Regional Loss Prevention Investigator

Other

 

 

Trent Napier

Coordinator Construction

Other

 

 

David Nelson

District Manager

Other

 

 

Daniel Nieser

Vice President of Construction and Store Development

Other

 

 

David Odom

Manager, Workforce Analytics

Other

 

 

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Douglas Owen

District Manager

Other

 

 

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Jessica Payne

Talent Acquisition Specialist

Other

 

 

Jana Pedigo

 

Lease Renewals Specialist

Other

 

 

Patrica Pentecost

Copy Center Coordinator

Other

 

 

Robert D. Ravener

Executive Vice President and Chief People Officer

Other

 

 

Biography:

Mr. Robert D. Ravener, Jr., is Executive Vice President, Chief People Officer of Dollar General Corp. Mr. Ravener joined Dollar General as Senior Vice President and Chief People Officer in August 2008. He was promoted to Executive Vice President in March 2010. Prior to joining Dollar General, he served in human resources executive roles with Starbucks Coffee Company from September 2005 until August 2008 as the Senior Vice President of U.S. Partner Resources and, prior to that, as the Vice President, Partner Resources—Eastern Division. As the Senior Vice President of U.S. Partner Resources at Starbucks, Mr. Ravener oversaw all aspects of human resources activity for more than 10,000 stores. Prior to serving at Starbucks, Mr. Ravener held Vice President of Human Resources roles for The Home Depot's Store Support Center and a domestic field division from April 2003 to September 2005. Mr. Ravener also served in executive roles in both human resources and operations at Footstar, Inc. and roles of increasing leadership at PepsiCo.

 

Age: 54

 

Education:

New York University, MBA 
U.S. Naval Academy, B 

 

Compensation/Salary:$441,599

Compensation Currency: USD

 

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Construction Reps

Construction

Other

 

 

Karen Riddick

Autocad Department

Other

 

 

Brandon Russell

Audio Visual Coordinator

Other

 

 

Susanne Shanteau

Customs Analyst

Other

 

 

Ryan Smith

Senior Director, Process Improvement

Other

 

 

Derek Spillman

Senior Team Leader

Other

 

 

Jeff Steele

Bts Plan Manager

Other

 

 

Scott Strange

Representative

Other

 

 

Lindsey Sublett

Community Initiatives Specialist

Other

 

 

Teresa Summers

Senior Manager

Other

 

 

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Ron Tacker

Vice President

Other

 

 

Beverly Tate

Corporate Services Supervisor

Other

 

 

Jennifer Thomason

Regional Loss Prevention Manager

Other

 

 

Spencer Townsend

 

Senior Manager

Other

 

 

Enrique Vasquez

Senior Pricing Analyst

Other

 

 

Francisco Villasana

Region Manager

Other

 

 

Christi Vincent

Apc Supervisor

Other

 

 

John Vincent

District Manager

Other

 

 

Eric Vines

Ems, Store Services

Other

 

 

Vince Volz

Vice President, Shrink Improvement and Loss Prevention

Other

 

 

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Steve Watts

Senior Wms Manager

Other

 

 

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Janis Winchester

Assessment Coordinator

Other

 

 

Tracey Wiseman

Director of Child Care

Other

 

 

Janet Woods

Manager

Other

 

 

Tonya Yates

Stationeryhardwarebooksmagazinesand Toys

Other

 

 

David Yeager

Senior Manager, Pos Applications

Other

 

 

Lisa Young

Customs Specialist

Other

 

 

Warren Zendano

Senior P, A

Other

 

 

 

 

Significant Developments

 

Dollar General Corp Announces Pricing of $1.3 Billion of Senior Notes Apr 08, 2013

 

Dollar General Corp announced the pricing of an offering of $400.0 million of its 1.875% Senior Notes due 2018 (the 2018 Notes) and $900.0 million of its 3.25% Senior Notes due 2023 (the 2023 Notes and together with the 2018 Notes, the Notes). The 2018 Notes will pay interest at a rate of 1.875% per annum and mature on April 15, 2018. The 2023 Notes will pay interest at a rate of 3.25% per annum and mature on April 15, 2023. Dollar General will pay interest on the Notes semi-annually on April 15 and October 15 of each year, commencing October 15, 2013. Issuance of the Notes is expected to occur on April 11, 2013. The Company will use the net proceeds from the sale of the Notes, together with term loan borrowings under its new senior unsecured credit facilities, to repay all of the outstanding borrowings under the existing senior secured credit facilities, to pay related fees and expenses and for general corporate purposes. BofA Merrill Lynch, Citigroup, Goldman, Sachs & Co., J.P. Morgan, US Bancorp and Wells Fargo Securities are serving as joint book-running managers for the offering, with Fifth Third Securities, Inc., KKR and Regions Securities LLC acting as senior co-managers and BB&T Capital Markets, HSBC, KeyBanc Capital Markets, Mizuho Securities and PNC Capital Markets LLC acting as co-managers.

 

Dollar General Corp Announces Offering Of $1.3 Billion Of Senior Notes Apr 08, 2013

 

Dollar General Corp announced an offering of $1.3 billion of Senior Notes due 2018 and Senior Notes due 2023. Concurrently with and conditioned upon the issuance of the Notes, the Company expects to enter into new senior unsecured credit facilities consisting of a $1.0 billion five-year term loan facility and an $850 million five-year cash-flow based revolving credit facility which is expected to be undrawn at closing. The offering of the Notes is not conditioned upon completion of the new credit facilities and related refinancing. The Company will use the net proceeds from the sale of the Notes, together with term loan borrowings under new senior unsecured credit facilities, to repay all of the outstanding borrowings under the existing senior secured credit facilities, to pay related fees and expenses and for general corporate purposes. BofA Merrill Lynch, Citigroup, Goldman, Sachs & Co., J.P. Morgan, US Bancorp and Wells Fargo Securities are serving as joint book-running managers for the offering.


Dollar General Corp Announces Pricing of 30.0 Million Share Secondary Offering Mar 27, 2013

 

Nimplemented, including the rollout of tobacco products to substantially all stores and the completion of Phase Five. Diluted EPS for fiscal 2013, adjusted to exclude potential charges or expenses relating to amendments to or refinancing of any notes, loans or revolving credit facilities and any expenses resulting from potential secondary stock offerings, is expected to be approximately $3.15 to $3.30. The Company reported revenues of $16.02 billion in fiscal 2012. According to I/B/E/S estimates analysts' were expecting the Company to report revenues of $17.63 billion, EBIT of $1.823 billion and EPS of $3.27 for fiscal 2013.

 

Dollar General Corp Lowers High End Of Prior FY 2012 Revenue Guidance; Lowers FY 2012 Operating Profit Guidance; Revises FY 2012 Store Sales Guidance; Comments On Q4 2012 Store Sales Guidance Dec 11, 2012

 

Dollar General Corp updated its financial outlook to reflect the results of the third quarter and expectations for the remainder of 2012. The Company expects total sales for fiscal 2012 to increase by 8.0% to 8.5% over the 53-week fiscal 2011, or 10% to 10.5% on a comparable 52-week basis. Same-store sales, based on a comparable 52-week period, are now expected to increase 4.5% to 5.0%. For fiscal 2012, operating profit, excluding expenses resulting from secondary offerings of the Company's stock, is expected to be between $1.630 billion and $1.645 billion. For the fourth quarter, the Company expects comparable store sales to increase by 3% to 4%. Diluted EPS for the 52-week fiscal 2012, adjusted to exclude losses resulting from redemption of the senior subordinated notes, charges or expenses relating to amendments to or refinancing of any notes, loans or revolving credit facilities, the settlement of interest rate swaps and expenses resulting from secondary stock offerings, is expected to be approximately $2.82 to $2.85, including approximately $0.04 from the favorable resolution of tax audits in the second quarter. The Company reported revenues of $14.807 billion in fiscal 2011. According to I/B/E/S estimates analysts' were expecting the Company to report revenues of $16.122 billion, EBIT of $1.671 billion and EPS of $2.86 for fiscal 2012.

 

Dollar General Corp To Replace Cooper Industries plc On S&P 500 Index Nov 26, 2012

 

Dollar General Corp announced that it will replace Cooper Industries plc in the S&P 500 after the close of trading on November 30, 2012. S&P 500 constituent Eaton Corp. is acquiring Cooper Industries in a deal expected to be completed on or about that date pending final approvals. 

 

Dollar General Corp Announces Pricing of 36.0 Million Share Secondary Offering Sep 27, 2012

 

Dollar General Corp announced the pricing of an underwritten secondary public offering of 36.0 million common shares at a price to the public of $51.75 per share. The shares are being sold by certain existing shareholders. No shares are being sold by the Company in this offering, and it will not receive any proceeds from the offering. In connection with the offering, certain of the selling shareholders have granted to the underwriters an option to purchase up to 5.4 million additional shares. The offering is expected to close on October 3, 2012. Citigroup, Goldman, Sachs & Co. and KKR are serving as joint book running managers for the offering.

 

Dollar General Corp Announces 30.0 Million Share Secondary Offering Sep 27, 2012

 

Dollar General Corp announced an underwritten secondary public offering of 30.0 million common shares. The shares are being sold by certain existing shareholders. No shares are being sold by the Company in this offering, and it will not receive any proceeds from the offering. In connection with the offering, certain of the selling shareholders have granted to the underwriters an option to purchase up to 4.5 million additional shares.

 

Dollar General Corp Reaffirms FY 2012 Revenue Outlook; Raises FY 2012 EPS Outlook; Raises Low End Of Prior FY 2012 EBIT Outlook; Raises Low End Of Prior FY 2012 Same Store Sales Outlook Sep 05, 2012

 

Dollar General Corp announced that it continues to expect total sales for the 2012 fiscal year to increase 8%-9% over the 53-week 2011 fiscal year, or 10%-11% on a comparable 52-week basis. Same-store sales, based on a comparable 52-week period, are expected to increase 4%-5%, an increase from the previous expectation of the low end of 3%. For the year, operating profit, excluding expenses resulting from secondary offerings of the Company's stock, is expected to be between $1.64 billion and $1.66 billion, as compared to the Company's previous guidance of between $1.62 billion and $1.66 billion. Diluted EPS for the 52-week fiscal 2012 is expected to be approximately $2.77-$2.85, including approximately $0.04 from the favorable resolution of tax audits in the second quarter.

 

Dollar General Corp. Announces Pricing Of $500 Million of Senior Notes Jun 27, 2012

 

Dollar General Corp. announced the pricing of an offering of $500 million of its 4.125% Senior Notes due 2017 (the Notes). The Notes, which are fully and unconditionally guaranteed on a senior unsecured basis by each domestic subsidiary of Dollar General that guarantees its senior secured credit facilities, will pay interest at a rate of 4.125% per annum semi-annually on January 15 and July 15 of each year, commencing January 15, 2013. Issuance of the Notes is expected to occur on July 12, 2012 and the Notes will mature on July 15, 2017. Dollar General Corporation will use the net proceeds from the sale of the Notes, together with cash on hand, to redeem on July 15, 2012 all outstanding aggregate principal amount of its Senior Subordinated Notes and to pay related premium and accrued interest. Citigroup, Goldman, Sachs & Co. and KKR are serving as joint book running managers for the offering, with BofA Merrill Lynch, Barclays, J.P. Morgan, Wells Fargo Securities, Fifth Third Securities, Inc., HSBC, KeyBanc Capital Markets, and US Bancorp acting as co-managers.

 

Dollar General Corp. Reaffirms FY 2012 Revenue And Same Store Sales Guidance; Raises FY 2012 Earnings Guidance Jun 04, 2012

 

Dollar General Corp. announced that it continues to expect total sales for fiscal 2012 to increase 8% to 9% over the 53 week fiscal 2011, or 10% to 11% on a comparable 52-week basis. Same-store sales, based on a comparable 52-week period, are expected to increase 3% to 5%. Operating profit is expected to be between $1.62-$1.66 billion, as compared to the Company's previous guidance of between $1.60-$1.65 billion. Diluted EPS for the 52-week fiscal year, adjusted to exclude any losses resulting from redemption of the Senior Subordinated Notes, potential charges or expenses relating to amendments to or refinancing of any notes, loans or revolving credit facilities and any expenses resulting from secondary stock offerings, is expected to be approximately $2.68 to $2.78. This is an increase of $0.03 per share from the Company's previous guidance of $2.65 to $2.75 per share. According to I/B/E/S estimates analysts' were expecting the Company to report EBIT of $1.65 billion and EPS of $2.77 for fiscal 2012.

 

 

Annual Income Statement

 

Financials in: USD (mil) 

Except for share items (millions) and per share items (actual units)         

 

 

 

01-Feb-2013

03-Feb-2012

28-Jan-2011

29-Jan-2010

30-Jan-2009

Period Length

52 Weeks

52 Weeks

52 Weeks

52 Weeks

52 Weeks

UpdateType/Date

Updated Normal 
01-Feb-2013

Reclassified Normal 
01-Feb-2013

Reclassified Normal 
01-Feb-2013

Updated Normal 
29-Jan-2010

Updated Normal 
30-Jan-2009

Filed Currency

USD

USD

USD

USD

USD

Exchange Rate (Period Average)

1

1

1

1

1

Auditor

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

    Net Sales

16,022.1

14,807.2

13,035.0

11,796.4

10,457.7

Revenue

16,022.1

14,807.2

13,035.0

11,796.4

10,457.7

Total Revenue

16,022.1

14,807.2

13,035.0

11,796.4

10,457.7

 

 

 

 

 

 

    Cost of Revenue

10,936.7

10,109.3

8,858.4

8,106.5

7,396.6

Cost of Revenue, Total

10,936.7

10,109.3

8,858.4

8,106.5

7,396.6

Gross Profit

5,085.4

4,697.9

4,176.6

3,689.9

3,061.1

 

 

 

 

 

 

    Selling/General/Administrative Expense

3,430.1

3,207.1

2,902.5

2,736.6

2,448.6

Total Selling/General/Administrative Expenses

3,430.1

3,207.1

2,902.5

2,736.6

2,448.6

    Litigation

-

-

-

0.0

32.0

    Other Unusual Expense (Income)

-

-

-

0.0

0.0

Unusual Expense (Income)

-

-

-

0.0

32.0

Total Operating Expense

14,366.9

13,316.4

11,760.9

10,843.1

9,877.2

 

 

 

 

 

 

Operating Income

1,655.3

1,490.8

1,274.1

953.3

580.5

 

 

 

 

 

 

        Interest Expense - Non-Operating

-127.9

-204.9

-274.0

-345.7

-391.9

    Interest Expense, Net Non-Operating

-127.9

-204.9

-274.0

-345.7

-391.9

        Interest Income - Non-Operating

-

-

-

0.1

3.1

    Interest/Investment Income - Non-Operating

-

-

-

0.1

3.1

Interest Income (Expense) - Net Non-Operating Total

-127.9

-204.9

-274.0

-345.6

-388.9

    Other Non-Operating Income (Expense)

-30.0

-60.6

-15.1

-55.5

2.8

Other, Net

-30.0

-60.6

-15.1

-55.5

2.8

Income Before Tax

1,497.4

1,225.3

985.0

552.1

194.4

 

 

 

 

 

 

Total Income Tax

544.7

458.6

357.1

212.7

86.2

Income After Tax

952.7

766.7

627.9

339.4

108.2

 

 

 

 

 

 

Net Income Before Extraord Items

952.7

766.7

627.9

339.4

108.2

Net Income

952.7

766.7

627.9

339.4

108.2

 

 

 

 

 

 

Income Available to Common Excl Extraord Items

952.7

766.7

627.9

339.4

108.2

 

 

 

 

 

 

Income Available to Common Incl Extraord Items

952.7

766.7

627.9

339.4

108.2

 

 

 

 

 

 

Basic/Primary Weighted Average Shares

332.3

341.2

341.0

322.8

317.0

Basic EPS Excl Extraord Items

2.87

2.25

1.84

1.05

0.34

Basic/Primary EPS Incl Extraord Items

2.87

2.25

1.84

1.05

0.34

Dilution Adjustment

0.0

0.0

0.0

0.0

0.0

Diluted Net Income

952.7

766.7

627.9

339.4

108.2

Diluted Weighted Average Shares

334.5

345.1

344.8

324.8

317.5

Diluted EPS Excl Extraord Items

2.85

2.22

1.82

1.05

0.34

Diluted EPS Incl Extraord Items

2.85

2.22

1.82

1.05

0.34

Dividends per Share - Common Stock Primary Issue

0.00

0.00

0.00

0.00

0.00

Gross Dividends - Common Stock

0.0

0.0

0.0

239.7

0.0

Interest Expense, Supplemental

127.9

204.9

274.0

345.7

391.9

Interest Capitalized, Supplemental

-

-

-

0.0

0.0

Depreciation, Supplemental

302.9

275.4

254.9

201.1

190.5

Total Special Items

32.0

74.3

-

65.9

32.0

Normalized Income Before Tax

1,529.4

1,299.6

985.0

618.0

226.4

 

 

 

 

 

 

Effect of Special Items on Income Taxes

11.6

27.8

-

25.4

14.2

Inc Tax Ex Impact of Sp Items

556.4

486.4

357.1

238.1

100.4

Normalized Income After Tax

973.0

813.2

627.9

380.0

126.0

 

 

 

 

 

 

Normalized Inc. Avail to Com.

973.0

813.2

627.9

380.0

126.0

 

 

 

 

 

 

Basic Normalized EPS

2.93

2.38

1.84

1.18

0.40

Diluted Normalized EPS

2.91

2.36

1.82

1.17

0.40

Amort of Intangibles, Supplemental

16.9

21.0

27.4

41.3

45.0

Rental Expenses

614.3

542.3

489.3

428.6

389.6

Advertising Expense, Supplemental

61.7

50.4

46.9

41.5

27.8

Normalized EBIT

1,687.3

1,565.1

1,274.1

1,019.2

612.5

Normalized EBITDA

2,007.1

1,861.5

1,556.4

1,261.6

848.0

    Current Tax - Domestic

457.4

385.3

273.0

173.0

10.5

    Current Tax - Foreign

1.2

1.4

1.3

1.5

1.1

    Current Tax - Local

78.0

56.3

28.1

21.0

1.2

Current Tax - Total

536.6

443.0

302.3

195.5

12.8

    Deferred Tax - Domestic

9.7

8.3

42.0

12.4

64.4

    Deferred Tax - Foreign

-

-

-

0.0

0.0

    Deferred Tax - Local

-1.6

7.3

12.8

4.8

9.0

Deferred Tax - Total

8.1

15.6

54.8

17.2

73.4

Income Tax - Total

544.7

458.6

357.1

212.7

86.2

Defined Contribution Expense - Domestic

13.3

-

-

10.3

9.2

Total Pension Expense

13.3

-

-

10.3

9.2

 

 

Annual Balance Sheet

Financials in: USD (mil)

 

 

 

01-Feb-2013

03-Feb-2012

28-Jan-2011

29-Jan-2010

30-Jan-2009

UpdateType/Date

Updated Normal 
01-Feb-2013

Reclassified Normal 
01-Feb-2013

Updated Normal 
28-Jan-2011

Updated Normal 
29-Jan-2010

Updated Normal 
30-Jan-2009

Filed Currency

USD

USD

USD

USD

USD

Exchange Rate

1

1

1

1

1

Auditor

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

    Cash & Equivalents

140.8

126.1

497.4

222.1

378.0

    Short Term Investments

-

-

-

-

0.0

Cash and Short Term Investments

140.8

126.1

497.4

222.1

378.0

    Other Receivables

-

-

0.0

7.5

6.4

Total Receivables, Net

-

-

0.0

7.5

6.4

Total Inventory

2,397.2

2,009.2

1,765.4

1,519.6

1,415.0

Prepaid Expenses

139.1

139.7

104.9

96.3

66.2

    Deferred Income Tax - Current Asset

-

-

-

0.0

4.6

Other Current Assets, Total

-

-

-

0.0

4.6

Total Current Assets

2,677.1

2,275.1

2,367.8

1,845.4

1,870.1

 

 

 

 

 

 

        Buildings

1,053.2

836.7

749.1

651.6

636.8

        Land/Improvements

257.7

204.6

174.4

137.9

137.8

        Construction in Progress

87.4

139.5

17.9

10.4

5.0

        Other Property/Plant/Equipment

1,828.6

1,500.3

1,235.8

992.4

781.4

    Property/Plant/Equipment - Gross

3,226.9

2,681.0

2,177.3

1,792.4

1,561.0

    Accumulated Depreciation

-1,138.2

-886.0

-652.7

-464.0

-292.0

Property/Plant/Equipment - Net

2,088.7

1,795.0

1,524.6

1,328.4

1,269.0

Goodwill, Net

4,338.6

4,338.6

4,338.6

4,338.6

4,338.6

    Intangibles - Gross

1,306.6

1,321.4

1,340.4

1,395.7

1,396.1

    Accumulated Intangible Amortization

-87.1

-85.4

-83.5

-111.4

-70.5

Intangibles, Net

1,219.5

1,236.0

1,256.9

1,284.3

1,325.6

    Other Long Term Assets

43.8

43.9

58.3

66.8

86.0

Other Long Term Assets, Total

43.8

43.9

58.3

66.8

86.0

Total Assets

10,367.7

9,688.5

9,546.2

8,863.5

8,889.2

 

 

 

 

 

 

Accounts Payable

1,261.6

1,064.1

953.6

831.0

678.4

Accrued Expenses

357.4

397.1

347.7

342.3

375.0

Notes Payable/Short Term Debt

0.0

0.0

0.0

0.0

0.0

Current Portion - Long Term Debt/Capital Leases

0.9

0.6

1.2

3.7

14.2

    Income Taxes Payable

95.4

44.4

26.0

4.5

7.6

    Deferred Income Tax - Current Liability

23.2

3.7

36.9

25.1

0.0

Other Current liabilities, Total

118.6

48.2

62.8

29.6

7.6

Total Current Liabilities

1,738.5

1,509.9

1,365.4

1,206.5

1,075.2

 

 

 

 

 

 

    Long Term Debt

2,763.6

2,612.8

3,280.7

3,399.7

4,123.0

    Capital Lease Obligations

7.7

5.1

6.4

-

-

Total Long Term Debt

2,771.3

2,617.9

3,287.1

3,399.7

4,123.0

Total Debt

2,772.2

2,618.5

3,288.2

3,403.4

4,137.1

 

 

 

 

 

 

    Deferred Income Tax - LT Liability

647.1

657.0

598.6

546.2

556.1

Deferred Income Tax

647.1

657.0

598.6

546.2

556.1

    Other Long Term Liabilities

225.4

229.1

240.7

320.8

303.2

Other Liabilities, Total

225.4

229.1

240.7

320.8

303.2

Total Liabilities

5,382.4

5,013.9

5,491.7

5,473.2

6,057.5

 

 

 

 

 

 

    Convertible Preferred Stock - Non Redeemable

0.0

0.0

0.0

0.0

0.0

Preferred Stock - Non Redeemable, Net

0.0

0.0

0.0

0.0

0.0

    Common Stock

286.2

295.8

298.8

298.0

278.1

Common Stock

286.2

295.8

298.8

298.0

278.1

Additional Paid-In Capital

2,991.4

2,967.0

2,945.0

2,923.4

2,489.6

Retained Earnings (Accumulated Deficit)

1,710.7

1,416.9

830.9

203.1

103.4

    Other Comprehensive Income

-2.9

-5.2

-20.3

-34.2

-39.4

Other Equity, Total

-2.9

-5.2

-20.3

-34.2

-39.4

Total Equity

4,985.3

4,674.6

4,054.5

3,390.3

2,831.7

 

 

 

 

 

 

Total Liabilities & Shareholders’ Equity

10,367.7

9,688.5

9,546.2

8,863.5

8,889.2

 

 

 

 

 

 

    Shares Outstanding - Common Stock Primary Issue

327.1

338.1

341.5

340.6

317.8

Total Common Shares Outstanding

327.1

338.1

341.5

340.6

317.8

Treasury Shares - Common Stock Primary Issue

0.0

0.0

0.0

0.0

0.0

Employees

90,500

-

85,900

79,800

72,500

Number of Common Shareholders

1,511

-

1,044

466

188

Accumulated Intangible Amort, Suppl.

87.1

85.4

83.5

111.4

70.5

Total Long Term Debt, Supplemental

2,764.5

-

3,299.4

3,418.1

4,157.0

Long Term Debt Maturing within 1 Year

0.0

-

1.2

3.6

14.2

Long Term Debt Maturing in Year 2

685.2

-

0.7

1.2

26.4

Long Term Debt Maturing in Year 3

685.2

-

0.3

0.8

23.8

Long Term Debt Maturing in Year 4

690.1

-

1,963.8

0.3

23.3

Long Term Debt Maturing in Year 5

690.1

-

864.8

1,963.8

23.3

Long Term Debt Maturing in 2-3 Years

1,370.4

-

1.0

2.0

50.2

Long Term Debt Maturing in 4-5 Years

1,380.3

-

2,828.6

1,964.1

46.6

Long Term Debt Matur. in Year 6 & Beyond

13.9

-

468.6

1,448.4

4,046.1

    Interest Costs

-

-

-2.6

-3.1

-3.5

Total Capital Leases, Supplemental

7.7

-

6.4

8.3

9.9

Capital Lease Payments Due in Year 1

0.9

-

1.5

2.3

3.1

Capital Lease Payments Due in Year 2

1.0

-

1.0

1.6

2.1

Capital Lease Payments Due in Year 3

1.0

-

0.6

1.1

1.1

Capital Lease Payments Due in Year 4

1.1

-

0.6

0.6

0.6

Capital Lease Payments Due in Year 5

1.1

-

0.6

0.6

0.6

Capital Lease Payments Due in 2-3 Years

2.0

-

1.6

2.7

3.2

Capital Lease Payments Due in 4-5 Years

2.1

-

1.2

1.2

1.2

Cap. Lease Pymts. Due in Year 6 & Beyond

2.7

-

4.6

5.2

5.9

Total Operating Leases, Supplemental

4,535.2

-

3,003.3

2,325.0

1,671.9

Operating Lease Payments Due in Year 1

611.6

-

481.9

423.8

358.4

Operating Lease Payments Due in Year 2

568.0

-

444.8

391.0

308.5

Operating Lease Payments Due in Year 3

509.7

-

394.8

342.8

260.5

Operating Lease Payments Due in Year 4

452.8

-

338.8

283.5

211.0

Operating Lease Payments Due in Year 5

399.7

-

275.3

226.2

160.9

Operating Lease Pymts. Due in 2-3 Years

1,077.7

-

839.6

733.8

569.0

Operating Lease Pymts. Due in 4-5 Years

852.5

-

614.1

509.7

372.0

Oper. Lse. Pymts. Due in Year 6 & Beyond

1,993.4

-

1,067.8

657.7

372.6

 

 

Annual Cash Flows

Financials in: USD (mil)

 

 

 

01-Feb-2013

03-Feb-2012

28-Jan-2011

29-Jan-2010

30-Jan-2009

Period Length

52 Weeks

52 Weeks

52 Weeks

52 Weeks

52 Weeks

UpdateType/Date

Updated Normal 
01-Feb-2013

Reclassified Normal 
01-Feb-2013

Reclassified Normal 
01-Feb-2013

Reclassified Normal 
28-Jan-2011

Updated Normal 
30-Jan-2009

Filed Currency

USD

USD

USD

USD

USD

Exchange Rate (Period Average)

1

1

1

1

1

Auditor

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

Net Income/Starting Line

952.7

766.7

627.9

339.4

108.2

    Depreciation

302.9

275.4

254.9

256.8

247.9

Depreciation/Depletion

302.9

275.4

254.9

256.8

247.9

Deferred Taxes

-2.6

10.2

51.0

14.9

73.4

    Unusual Items

30.6

60.3

14.6

55.3

-

    Other Non-Cash Items

-59.3

36.3

15.6

20.5

62.1

Non-Cash Items

-28.7

96.6

30.2

75.7

62.1

    Inventories

-391.4

-291.5

-251.8

-100.2

-173.0

    Prepaid Expenses

5.6

-34.6

-10.2

-7.3

-0.6

    Accounts Payable

194.0

104.4

123.4

106.0

140.4

    Accrued Expenses

-36.7

71.8

-42.4

-12.6

68.7

    Taxes Payable

138.7

51.6

42.9

1.2

34.0

    Other Assets & Liabilities, Net

-3.1

-0.2

-1.2

-1.0

14.1

Changes in Working Capital

-92.9

-98.5

-139.3

-14.0

83.6

Cash from Operating Activities

1,131.4

1,050.5

824.7

672.8

575.2

 

 

 

 

 

 

    Purchase of Fixed Assets

-571.6

-514.9

-420.4

-250.7

-205.5

Capital Expenditures

-571.6

-514.9

-420.4

-250.7

-205.5

    Acquisition of Business

-

-

-

-

0.0

    Sale of Fixed Assets

1.8

1.0

1.4

2.7

1.3

    Sale/Maturity of Investment

-

-

-

0.0

61.5

    Purchase of Investments

-

-

-

0.0

-9.9

Other Investing Cash Flow Items, Total

1.8

1.0

1.4

2.7

52.9

Cash from Investing Activities

-569.8

-513.8

-418.9

-248.0

-152.6

 

 

 

 

 

 

    Other Financing Cash Flow

72.5

33.1

13.9

5.4

-1.6

Financing Cash Flow Items

72.5

33.1

13.9

5.4

-1.6

    Cash Dividends Paid - Common

-

-

-

-239.7

0.0

Total Cash Dividends Paid

-

-

-

-239.7

0.0

        Sale/Issuance of Common

-

-

-

443.8

4.2

        Repurchase/Retirement of Common

-742.9

-213.8

-13.1

-5.9

-0.5

    Common Stock, Net

-742.9

-213.8

-13.1

437.8

3.7

    Options Exercised

-

-

-

-

0.0

Issuance (Retirement) of Stock, Net

-742.9

-213.8

-13.1

437.8

3.7

        Short Term Debt Issued

2,286.7

1,157.8

0.0

0.0

-

        Short Term Debt Reduction

-2,184.9

-973.1

0.0

0.0

-102.5

    Short Term Debt, Net

101.8

184.7

0.0

0.0

-102.5

        Long Term Debt Issued

500.0

0.0

0.0

1.1

0.0

        Long Term Debt Reduction

-478.3

-912.0

-131.2

-785.3

-44.4

    Long Term Debt, Net

21.7

-912.0

-131.2

-784.2

-44.4

Issuance (Retirement) of Debt, Net

123.5

-727.3

-131.2

-784.2

-146.9

Cash from Financing Activities

-546.8

-908.0

-130.4

-580.7

-144.8

 

 

 

 

 

 

Net Change in Cash

14.7

-371.3

275.4

-155.9

277.8

 

 

 

 

 

 

Net Cash - Beginning Balance

126.1

497.4

222.1

378.0

100.2

Net Cash - Ending Balance

140.8

126.1

497.4

222.1

378.0

Cash Interest Paid

121.7

209.4

244.8

328.4

377.0

Cash Taxes Paid

422.3

382.3

314.1

188.0

7.1

 

 

Annual Income Statement

 

Financials in: USD (mil) 

Except for share items (millions) and per share items (actual units)         

 

 

 

01-Feb-2013

03-Feb-2012

28-Jan-2011

29-Jan-2010

30-Jan-2009

Period Length

52 Weeks

52 Weeks

52 Weeks

52 Weeks

52 Weeks

UpdateType/Date

Updated Normal
01-Feb-2013

Reclassified Normal 
01-Feb-2013

Reclassified Normal 
01-Feb-2013

Updated Normal
29-Jan-2010

Updated Normal
30-Jan-2009

Filed Currency

USD

USD

USD

USD

USD

Exchange Rate (Period Average)

1

1

1

1

1

Auditor

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

    Net Sales

16,022.1

14,807.2

13,035.0

11,796.4

10,457.7

Total Revenue

16,022.1

14,807.2

13,035.0

11,796.4

10,457.7

 

 

 

 

 

 

    Cost of Goods Sold

10,936.7

10,109.3

8,858.4

8,106.5

7,396.6

    Sell./Gen./Admin.

3,430.1

3,207.1

2,902.5

2,736.6

2,448.6

    Transaction and related costs

-

-

-

0.0

0.0

    Litigation Settle.

-

-

-

0.0

32.0

Total Operating Expense

14,366.9

13,316.4

11,760.9

10,843.1

9,877.2

 

 

 

 

 

 

    Others

-30.0

-60.6

-15.1

-55.5

2.8

    Interest Income

-

-

-

0.1

3.1

    Interest expense

-127.9

-204.9

-274.0

-345.7

-391.9

Net Income Before Taxes

1,497.4

1,225.3

985.0

552.1

194.4

 

 

 

 

 

 

Provision for Income Taxes

544.7

458.6

357.1

212.7

86.2

Net Income After Taxes

952.7

766.7

627.9

339.4

108.2

 

 

 

 

 

 

Net Income Before Extra. Items

952.7

766.7

627.9

339.4

108.2

Net Income

952.7

766.7

627.9

339.4

108.2

 

 

 

 

 

 

Income Available to Com Excl ExtraOrd

952.7

766.7

627.9

339.4

108.2

 

 

 

 

 

 

Income Available to Com Incl ExtraOrd

952.7

766.7

627.9

339.4

108.2

 

 

 

 

 

 

Basic Weighted Average Shares

332.3

341.2

341.0

322.8

317.0

Basic EPS Excluding ExtraOrdinary Items

2.87

2.25

1.84

1.05

0.34

Basic EPS Including ExtraOrdinary Item

2.87

2.25

1.84

1.05

0.34

Dilution Adjustment

0.0

0.0

0.0

0.0

0.0

Diluted Net Income

952.7

766.7

627.9

339.4

108.2

Diluted Weighted Average Shares

334.5

345.1

344.8

324.8

317.5

Diluted EPS Excluding ExtraOrd Items

2.85

2.22

1.82

1.04

0.34

Diluted EPS Including ExtraOrd Items

2.85

2.22

1.82

1.04

0.34

DPS-Common Stock

0.00

0.00

0.00

0.00

0.00

Gross Dividends - Common Stock

0.0

0.0

0.0

239.7

0.0

Normalized Income Before Taxes

1,529.4

1,299.6

985.0

618.0

226.4

 

 

 

 

 

 

Inc Tax Ex Impact of Sp Items

556.4

486.4

357.1

238.1

100.4

Normalized Income After Taxes

973.0

813.2

627.9

380.0

126.0

 

 

 

 

 

 

Normalized Inc. Avail to Com.

973.0

813.2

627.9

380.0

126.0

 

 

 

 

 

 

Basic Normalized EPS

2.93

2.38

1.84

1.18

0.40

Diluted Normalized EPS

2.91

2.36

1.82

1.17

0.40

Interest expense

127.9

204.9

274.0

-

-

Interest Expense

-

-

-

345.7

391.9

Interest Capitalized

-

-

-

0.0

0.0

Rental Expense

614.3

542.3

489.3

428.6

389.6

Advertising Costs

61.7

50.4

46.9

41.5

27.8

BC - Depreciation of Fixed Assets

302.9

275.4

254.9

-

-

Depreciation

-

-

-

201.1

190.5

Total Amortization of Intangible Assets

16.9

21.0

27.4

-

-

Amortization

-

-

-

41.3

45.0

    Current Tax - Domestic

457.4

385.3

273.0

-

-

    Federal

-

-

-

173.0

10.5

    Current Tax - Foreign

1.2

1.4

1.3

-

-

    Foreign

-

-

-

1.5

1.1

    Current Tax - Local

78.0

56.3

28.1

-

-

    State

-

-

-

21.0

1.2

Current Tax - Total

536.6

443.0

302.3

195.5

12.8

    Deferred Tax - Domestic

9.7

8.3

42.0

-

-

    Federal

-

-

-

12.4

64.4

    Foreign

-

-

-

0.0

0.0

    Deferred Tax - Local

-1.6

7.3

12.8

-

-

    State

-

-

-

4.8

9.0

Deferred Tax - Total

8.1

15.6

54.8

17.2

73.4

Income Tax - Total

544.7

458.6

357.1

212.7

86.2

401(k) Savings & Retirement Plan

11.9

-

-

8.4

8.0

Supplemental Retirement Plan

1.4

-

-

1.9

1.2

Total Pension Expense

13.3

-

-

10.3

9.2

 

 

Annual Balance Sheet

Financials in: USD (mil)

 

 

 

01-Feb-2013

03-Feb-2012

28-Jan-2011

29-Jan-2010

30-Jan-2009

UpdateType/Date

Updated Normal 
01-Feb-2013

Reclassified Normal 
01-Feb-2013

Updated Normal 
28-Jan-2011

Updated Normal 
29-Jan-2010

Updated Normal 
30-Jan-2009

Filed Currency

USD

USD

USD

USD

USD

Exchange Rate

1

1

1

1

1

Auditor

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

    Cash & Equiv.

140.8

126.1

497.4

222.1

378.0

    Short Term Investments

-

-

-

-

0.0

    Deferred Income Taxes

-

-

-

0.0

4.6

    Inventories

2,397.2

2,009.2

1,765.4

1,519.6

1,415.0

    Prepaid expenses and other current asset

139.1

139.7

-

-

-

    Prepaid expenses and other current asset

-

-

104.9

96.3

66.2

    Income Taxes Receivable

-

-

0.0

7.5

6.4

Total Current Assets

2,677.1

2,275.1

2,367.8

1,845.4

1,870.1

 

 

 

 

 

 

    Land

257.7

204.6

174.4

137.9

137.8

    Buildings

773.8

622.8

575.3

520.9

518.9

    Leasehold Improv

279.4

213.9

173.8

130.8

117.8

    Furn./Fixt/Equip

1,828.6

1,500.3

1,235.8

992.4

781.4

    Constr. in Prog.

87.4

139.5

17.9

10.4

5.0

    Depreciation

-1,138.2

-886.0

-652.7

-464.0

-292.0

    Goodwill

4,338.6

4,338.6

4,338.6

4,338.6

4,338.6

    Leasehold Intersts

106.9

122.2

-

-

-

    Trade Names & Trademarks- Gross

1,199.7

1,199.2

-

-

-

    Intangible assets

-

-

1,340.4

1,395.7

1,396.1

    Leasehold Intersts

-87.1

-85.4

-

-

-

    Trade Names & Trademarks- Amort

0.0

0.0

-

-

-

    Amortization

-

-

-83.5

-111.4

-70.5

    Other assets, net

43.8

43.9

58.3

66.8

86.0

Total Assets

10,367.7

9,688.5

9,546.2

8,863.5

8,889.2

 

 

 

 

 

 

    Cur.Mat.LT Debt

0.9

0.6

1.2

3.7

14.2

    Accounts Pybl.

1,261.6

1,064.1

953.6

831.0

678.4

    Accrued Exps.

357.4

397.1

347.7

342.3

375.0

    Deferred income taxes

23.2

3.7

36.9

25.1

0.0

    Income Taxes

95.4

44.4

26.0

4.5

7.6

Total Current Liabilities

1,738.5

1,509.9

1,365.4

1,206.5

1,075.2

 

 

 

 

 

 

    Capital lease obligations

7.7

5.1

6.4

-

-

    Long-term obligations

2,763.6

2,612.8

3,280.7

3,399.7

4,123.0

Total Long Term Debt

2,771.3

2,617.9

3,287.1

3,399.7

4,123.0

 

 

 

 

 

 

    Derivatives

-

-

-

-

63.5

    Deferred income taxes

647.1

657.0

598.6

546.2

556.1

    Other liabilities

225.4

229.1

231.6

302.3

225.8

    Redeemable common stock

-

-

9.2

18.5

13.9

Total Liabilities

5,382.4

5,013.9

5,491.7

5,473.2

6,057.5

 

 

 

 

 

 

    Preferred stock, 1,000 shares authorized

0.0

0.0

0.0

0.0

0.0

    Common Stock

286.2

295.8

298.8

298.0

278.1

    Additional Paid in Capital

2,991.4

2,967.0

2,945.0

2,923.4

2,489.6

    Retained Erngs.

1,710.7

1,416.9

830.9

203.1

103.4

    Other Comp. Inc.

-2.9

-5.2

-20.3

-34.2

-39.4

Total Equity

4,985.3

4,674.6

4,054.5

3,390.3

2,831.7

 

 

 

 

 

 

Total Liabilities & Shareholders' Equity

10,367.7

9,688.5

9,546.2

8,863.5

8,889.2

 

 

 

 

 

 

    S/O-Common Stock

327.1

338.1

341.5

340.6

317.8

Total Common Shares Outstanding

327.1

338.1

341.5

340.6

317.8

T/S-Common Stock

0.0

0.0

0.0

0.0

0.0

Leasehold Intersts

87.1

85.4

-

-

-

Trade Names & Trademarks- Amort

0.0

0.0

-

-

-

Amortization

-

-

83.5

111.4

70.5

Full-Time Employees (Last Reported)

90,500

-

-

-

-

Full-Time Employees

-

-

85,900

79,800

72,500

Number of Common Shareholders

1,511

-

1,044

466

188

Long Term Debt Maturing within 1 Year

0.0

-

1.2

3.6

14.2

Long Term Debt Maturing within 2 Year

-

-

0.7

1.2

26.4

Long Term Debt Maturing within 3 Years

1,370.4

-

0.3

0.8

23.8

Long Term Debt Maturing within 4 Year

-

-

1,963.8

0.3

23.3

Long Term Debt Maturing within 5 Years

1,380.3

-

864.8

1,963.8

23.3

Long Term Debt Maturing After 5 Years

13.9

-

468.6

1,448.4

4,046.1

Total Long Term Debt, Supplemental

2,764.5

-

3,299.4

3,418.1

4,157.0

Capital Leases Maturing within 1 Year

0.9

-

1.5

2.3

3.1

Capital Leases Maturing within 2 Years

-

-

1.0

1.6

2.1

Capital Leases Maturing within 3 Years

2.0

-

0.6

1.1

1.1

Capital Leases Maturing within 4 Years

-

-

0.6

0.6

0.6

Capital Leases Maturing within 5 Years

2.1

-

0.6

0.6

0.6

Capital Leases Remaining Maturities

2.7

-

4.6

5.2

5.9

Interest

-

-

-2.6

-3.1

-3.5

Total Capital Leases

7.7

-

6.4

8.3

9.9

Operating Leases Maturing within 1 Year

611.6

-

481.9

423.8

358.4

Operating Leases Maturing within 2 Years

568.0

-

444.8

391.0

308.5

Operating Leases Maturing within 3 Years

509.7

-

394.8

342.8

260.5

Operating Leases Maturing within 4 Years

452.8

-

338.8

283.5

211.0

Operating Leases Maturing within 5 Years

399.7

-

275.3

226.2

160.9

Operating Leases Remaining Maturities

1,993.4

-

1,067.8

657.7

372.6

Total Operating Leases

4,535.2

-

3,003.3

2,325.0

1,671.9

 

 

Annual Cash Flows

Financials in: USD (mil)

 

 

 

01-Feb-2013

03-Feb-2012

28-Jan-2011

29-Jan-2010

30-Jan-2009

Period Length

52 Weeks

52 Weeks

52 Weeks

52 Weeks

52 Weeks

UpdateType/Date

Updated Normal 
01-Feb-2013

Reclassified Normal 
01-Feb-2013

Reclassified Normal 
01-Feb-2013

Reclassified Normal 
28-Jan-2011

Updated Normal 
30-Jan-2009

Filed Currency

USD

USD

USD

USD

USD

Exchange Rate (Period Average)

1

1

1

1

1

Auditor

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

Net Income

952.7

766.7

627.9

339.4

108.2

    Depreciation

302.9

275.4

254.9

256.8

247.9

    Noncash share based compensation

21.7

15.3

16.0

17.3

10.0

    Deferred Taxes

-2.6

10.2

51.0

14.9

73.4

    Tax benefit of stock options

-87.8

-33.1

-13.9

-5.4

-1.0

    Loss on debt retirement, net

30.6

60.3

14.6

55.3

-

    Noncash inventory adjustments and asset

-

-

-

0.6

50.7

    Other noncash gains and losses

6.8

54.2

13.5

7.9

2.4

    Inventories

-391.4

-291.5

-251.8

-100.2

-173.0

    Prepaid expenses and other current asset

5.6

-34.6

-10.2

-7.3

-0.6

    Trade Acct. Pybl.

194.0

104.4

123.4

106.0

140.4

    Accrued expenses and other liabilities

-36.7

71.8

-42.4

-12.6

68.7

    Income taxes

138.7

51.6

42.9

1.2

34.0

    Other

-3.1

-0.2

-1.2

-1.0

14.1

Cash from Operating Activities

1,131.4

1,050.5

824.7

672.8

575.2

 

 

 

 

 

 

    Merger, net of cash acquired

-

-

-

-

0.0

    Capital Expenditures

-571.6

-514.9

-420.4

-250.7

-205.5

    Purchases of Short Term Investments

-

-

-

0.0

-9.9

    Sales of Short Term Investments

-

-

-

0.0

61.5

    Proceeds from sales of property and equi

1.8

1.0

1.4

2.7

1.3

    Purchases of Long -Term Investments

-

-

-

-

0.0

    Purchases of promissory notes

-

-

-

-

0.0

Cash from Investing Activities

-569.8

-513.8

-418.9

-248.0

-152.6

 

 

 

 

 

 

    Issuance of common stock

-

-

-

443.8

4.2

    Equity transactions with employees, net

-71.4

-27.2

-13.1

-

-

    Equity settlements with employees, net o

-

-

-

-5.9

-

    Borrowings under revolving credit facili

2,286.7

1,157.8

0.0

0.0

-

    Repayments of borrowings under revolving

-2,184.9

-973.1

0.0

0.0

-102.5

    Issuance of long term obligations

500.0

0.0

0.0

-

-

    LT Borrowings-Issue

-

-

-

1.1

0.0

    LT Borrowings-Repay.

-478.3

-912.0

-131.2

-785.3

-44.4

    Cash Dividends

-

-

-

-239.7

0.0

    Repurchase of common stock from principa

-671.5

-186.6

0.0

0.0

-

    Debt issuance costs

-15.3

0.0

0.0

-

0.0

    Tax benefit of stock options

87.8

33.1

13.9

5.4

1.0

    Treasury Stock

-

-

-

-

-0.5

    Other

-

-

-

-

-2.5

    Options

-

-

-

-

0.0

Cash from Financing Activities

-546.8

-908.0

-130.4

-580.7

-144.8

 

 

 

 

 

 

Net Change in Cash

14.7

-371.3

275.4

-155.9

277.8

 

 

 

 

 

 

Net Cash - Beginning Balance

126.1

497.4

222.1

378.0

100.2

Net Cash - Ending Balance

140.8

126.1

497.4

222.1

378.0

    Cash Interest Paid

121.7

209.4

244.8

328.4

377.0

    Cash Taxes Paid

422.3

382.3

314.1

188.0

7.1

 

 

Financial Health

 

Financials in: USD (mil) 

Except for share items (millions) and per share items (actual units)         

Key Indicators USD (mil)

 

Quarter
Ending
01-Feb-2013

Quarter
Ending
Yr Ago

Annual
Year End
01-Feb-2013

1 Year
Growth

3 Year
Growth

5 Year
Growth

Total Revenue 

4,207.6

0.54%

16,022.1

8.21%

10.74%

11.03%

Operating Income 

522.3

2.78%

1,655.3

11.03%

20.20%

45.32%

Income Available to Common Excl Extraord Items 

317.4

8.52%

952.7

24.26%

41.06%

-

Basic EPS Excl Extraord Items 

0.97

12.62%

2.87

27.62%

39.70%

-

Capital Expenditures 

571.6

11.02%

571.6

11.02%

31.61%

32.53%

Cash from Operating Activities 

1,131.4

7.70%

1,131.4

7.70%

18.91%

20.70%

Free Cash Flow 

559.8

4.51%

559.8

4.51%

9.87%

13.15%

Total Assets 

10,367.7

7.01%

10,367.7

7.01%

5.36%

3.67%

Total Liabilities 

5,382.4

7.35%

5,382.4

7.35%

-0.56%

-1.99%

Total Long Term Debt 

2,771.3

5.86%

2,771.3

5.86%

-6.59%

-8.32%

Employees 

-

-

90500

-

4.28%

4.83%

Total Common Shares Outstanding 

327.1

-3.26%

327.1

-3.26%

-1.34%

0.60%

Market Cap 

15,156.4

6.58%

15,156.4

6.58%

23.74%

-

Key Ratios

 

01-Feb-2013

03-Feb-2012

28-Jan-2011

29-Jan-2010

30-Jan-2009

Profitability

Gross Margin 

31.74%

31.73%

32.04%

31.28%

29.27%

Operating Margin 

10.33%

10.07%

9.77%

8.08%

5.55%

Pretax Margin 

9.35%

8.28%

7.56%

4.68%

1.86%

Net Profit Margin 

5.95%

5.18%

4.82%

2.88%

1.03%

Financial Strength

Current Ratio 

1.54

1.51

1.73

1.53

1.74

Long Term Debt/Equity 

0.56

0.56

0.81

1.00

1.46

Total Debt/Equity 

0.56

0.56

0.81

1.00

1.46

Management Effectiveness

Return on Assets 

9.50%

7.97%

6.82%

3.82%

1.23%

Return on Equity 

19.72%

17.57%

16.87%

10.91%

3.91%

Efficiency

Inventory Turnover 

4.96

5.36

5.39

5.52

5.47

Asset Turnover 

1.60

1.54

1.42

1.33

1.19

Receivables Turnover 

-

-

-

1,693.06

537.77

Market Valuation USD (mil)

P/E (TTM

17.63

.

Enterprise Value 

19,093.5

Price/Sales (TTM

1.03

.

Enterprise Value/Revenue (TTM

1.19

Price/Book (MRQ

3.30

.

Enterprise Value/EBITDA (TTM

9.67

Market Cap as of 12-Apr-2013 

16,462.1

.

 

 

 

 

Ratio Comparisons

 

 

Company

Industry

Sector

S&P 500

Valuation Ratios

P/E Excluding Extraordinary (TTM

17.63

21.45

26.53

19.68

P/E High Excluding Extraordinary - Last 5 Yrs 

22.48

25.00

28.03

32.79

P/E Low Excluding Extraordinary - Last 5 Yrs 

15.60

10.32

11.18

10.71

Beta 

0.12

1.18

0.91

1.00

Price/Revenue (TTM

1.03

1.27

2.87

2.57

Price/Book (MRQ

3.30

3.31

4.17

3.67

Price to Tangible Book (MRQ

-

3.85

6.61

5.21

Price to Cash Flow Per Share (TTM

13.11

14.06

14.95

14.22

Price to Free Cash Flow Per Share (TTM

29.41

24.90

25.61

26.26

 

 

 

 

 

Dividends

Dividend Yield 

-

1.57%

2.91%

2.26%

Dividend Per Share - 5 Yr Avg 

0.00

0.64

1.96

1.99

Dividend 5 Yr Growth 

-

-21.00%

-1.39%

0.08%

Payout Ratio (TTM

0.00%

8.41%

11.60%

25.98%

 

 

 

 

 

Growth Rates (%)

Revenue (MRQ) vs Qtr 1 Yr Ago 

0.54%

12.43%

-0.77%

15.58%

Revenue (TTM) vs TTM 1 Yr Ago 

8.21%

10.84%

-4.27%

17.69%

Revenue 5 Yr Growth 

11.03%

9.32%

23.25%

8.97%

EPS (MRQ) vs Qtr 1 Yr Ago 

13.45%

30.89%

12.66%

19.49%

EPS (TTM) vs TTM 1 Yr Ago 

28.39%

37.83%

17.36%

32.55%

EPS 5 Yr Growth 

-

10.63%

8.65%

9.86%

Capital Spending 5 Yr Growth 

32.53%

-3.85%

-14.30%

-2.04%

 

 

 

 

 

Financial Strength

Quick Ratio (MRQ

0.16

0.61

0.63

1.24

Current Ratio (MRQ

1.54

2.11

0.97

1.79

LT Debt/Equity (MRQ

0.56

0.51

1.48

0.64

Total Debt/Equity (MRQ

0.56

0.58

1.73

0.73

Interest Coverage (TTM

12.94

13.90

4.20

13.80

 

 

 

 

 

Profitability Ratios (%)

Gross Margin (TTM

31.74%

37.85%

37.46%

45.21%

Gross Margin - 5 Yr Avg 

31.32%

37.91%

39.96%

44.91%

EBITD Margin (TTM

12.22%

12.91%

8.34%

24.43%

EBITD Margin - 5 Yr Avg 

11.09%

11.51%

13.48%

22.84%

Operating Margin (TTM

10.33%

10.63%

10.36%

20.63%

Operating Margin - 5 Yr Avg 

9.00%

8.93%

2.67%

18.28%

Pretax Margin (TTM

9.35%

9.35%

6.99%

17.95%

Pretax Margin - 5 Yr Avg 

6.74%

8.10%

5.24%

17.10%

Net Profit Margin (TTM

5.95%

5.93%

4.44%

13.65%

Net Profit Margin - 5 Yr Avg 

4.23%

5.06%

2.82%

12.10%

Effective Tax Rate (TTM

36.38%

36.81%

29.02%

28.45%

Effective Tax rate - 5 Yr Avg 

37.25%

36.54%

28.67%

29.92%

 

 

 

 

 

Management Effectiveness (%)

Return on Assets (TTM

9.50%

8.25%

0.41%

8.54%

Return on Assets - 5 Yr Avg 

6.01%

7.58%

3.69%

8.40%

Return on Investment (TTM

11.34%

9.88%

3.14%

7.90%

Return on Investment - 5 Yr Avg 

6.98%

8.99%

4.63%

8.27%

Return on Equity (TTM

19.72%

15.46%

-2.30%

19.72%

Return on Equity - 5 Yr Avg 

14.87%

12.04%

14.07%

20.06%

 

 

 

 

 

Efficiency

Revenue/Employee (TTM

177,040.10

316,828.32

764,536.05

927,613.77

Net Income/Employee (TTM

10,526.65

17,978.12

144,529.55

116,121.92

Receivables Turnover (TTM

-

35.53

16.95

13.25

Inventory Turnover (TTM

4.96

3.95

17.44

14.53

Asset Turnover (TTM

1.60

1.64

1.00

0.93

 

 

Annual Ratios

 

Financials in: USD (mil) 

Except for share items (millions) and per share items (actual units)         

 

01-Feb-2013

03-Feb-2012

28-Jan-2011

29-Jan-2010

30-Jan-2009

Financial Strength

Current Ratio 

1.54

1.51

1.73

1.53

1.74

Quick/Acid Test Ratio 

0.08

0.08

0.36

0.19

0.36

Working Capital 

938.6

765.2

1,002.5

638.9

794.9

Long Term Debt/Equity 

0.56

0.56

0.81

1.00

1.46

Total Debt/Equity 

0.56

0.56

0.81

1.00

1.46

Long Term Debt/Total Capital 

0.36

0.36

0.45

0.50

0.59

Total Debt/Total Capital 

0.36

0.36

0.45

0.50

0.59

Payout Ratio 

0.00%

0.00%

0.00%

0.00%

0.00%

Effective Tax Rate 

36.38%

37.43%

36.26%

38.52%

44.35%

Total Capital 

7,757.6

7,293.1

7,342.7

6,793.7

6,968.8

 

 

 

 

 

 

Efficiency

Asset Turnover 

1.60

1.54

1.42

1.33

1.19

Inventory Turnover 

4.96

5.36

5.39

5.52

5.47

Days In Inventory 

73.53

68.14

67.68

66.06

66.71

Receivables Turnover 

-

-

-

1,693.06

537.77

Days Receivables Outstanding 

-

-

-

0.22

0.68

Revenue/Employee 

177,040

-

151,746

147,824

144,244

Operating Income/Employee 

18,290

-

14,832

11,946

8,007

EBITDA/Employee 

21,824

-

18,119

14,983

11,255

 

 

 

 

 

 

Profitability

Gross Margin 

31.74%

31.73%

32.04%

31.28%

29.27%

Operating Margin 

10.33%

10.07%

9.77%

8.08%

5.55%

EBITDA Margin 

12.33%

12.07%

11.94%

10.14%

7.80%

EBIT Margin 

10.33%

10.07%

9.77%

8.08%

5.55%

Pretax Margin 

9.35%

8.28%

7.56%

4.68%

1.86%

Net Profit Margin 

5.95%

5.18%

4.82%

2.88%

1.03%

COGS/Revenue 

68.26%

68.27%

67.96%

68.72%

70.73%

SG&A Expense/Revenue 

21.41%

21.66%

22.27%

23.20%

23.41%

 

 

 

 

 

 

Management Effectiveness

Return on Assets 

9.50%

7.97%

6.82%

3.82%

1.23%

Return on Equity 

19.72%

17.57%

16.87%

10.91%

3.91%

 

 

 

 

 

 

Valuation

Free Cash Flow/Share 

1.71

1.58

1.18

1.24

1.16

Operating Cash Flow/Share  

3.46

3.11

2.41

1.98

1.81

 

Current Market Multiples

Market Cap/Earnings (TTM

17.64

Market Cap/Equity (MRQ

3.30

Market Cap/Revenue (TTM

1.03

Market Cap/EBIT (TTM

9.95

Market Cap/EBITDA (TTM

8.41

Enterprise Value/Earnings (TTM

20.46

Enterprise Value/Equity (MRQ

3.83

Enterprise Value/Revenue (TTM

1.19

Enterprise Value/EBIT (TTM

11.53

Enterprise Value/EBITDA (TTM

9.75

 

 

Stock Report

  

                             Stock Snapshot      

 

Traded: New York Stock Exchange: DG  

As of 12-Apr-2013    US Dollars

Recent Price                $50.31                EPS                       $2.91

52 Week High               $56.04                Price/Sales            1.03

52 Week Low                $39.73                Price/Earnings      16.11

Avg. Volume (mil)        4.94                    Price/Book            3.30

Market Value (mil)        $16,462.05          Beta                       0.12

 

                              Price % Change              Rel S&P 500%

4 Week                   4.42%                             2.57%

13 Week                 16.08%                           7.55%

52 Week                 7.89%                             -5.78%

Year to Date           14.11%                           2.42%

 

 

                        2 Year Weekly End Price & Volume

 

                            Stock History    

 

 

Market Cap History

 

1-Feb-13

% Chg

2-Nov-12

% Chg

3-Aug-12

% Chg

4-May-12

% Chg

3-Feb-12

% Chg

Total Common Shares Outstanding

327

-0.5

329

-1.5

334

0.4

332

-1.7

338

-1.2

Market Cap

15,156.4

-7.8

16,435.6

-3.6

17,041.8

4.8

16,254.1

14.3

14,220.0

4.8

Yearly Price History

 

2013

% Chg

2012

% Chg

2011

% Chg

2010

% Chg

2009

% Chg

High Price

52.91

-5.6

56.04

33.1

42.10

24.8

33.73

36.2

24.77

-

Low Price

39.73

-0.3

39.83

49.5

26.65

25.1

21.30

-2.1

21.75

-

Year End Price

50.31

14.1

44.09

7.2

41.14

34.1

30.67

36.7

22.43

-

Monthly Price History

Price Ending Date

Open

High

Low

Close

Volume

 

12-Apr-13

50.77

51.34

49.76

50.31

42,424,182

 

28-Mar-13

46.26

52.91

45.84

50.58

114,058,513

 

28-Feb-13

46.46

47.50

43.35

46.34

103,387,429

 

31-Jan-13

44.41

47.24

39.73

46.22

99,188,410

 

31-Dec-12

50.04

50.24

42.25

44.09

134,351,437

 

30-Nov-12

48.40

50.80

46.45

50.00

141,449,376

 

31-Oct-12

52.00

52.46

45.58

48.62

106,691,754

 

28-Sep-12

51.32

53.36

48.51

51.54

88,344,448

 

31-Aug-12

51.38

52.97

48.19

51.07

61,564,296

 

31-Jul-12

54.61

56.04

49.42

51.01

63,504,821

 

29-Jun-12

48.42

55.30

46.45

54.39

116,673,614

 

31-May-12

47.51

49.50

45.37

48.91

55,333,530

 

30-Apr-12

46.38

48.74

45.34

47.46

43,873,781

 

 

 

 

 

Standard & Poor’s

United States of America Long-Term Rating Lowered To 'AA+' Due To Political Risks, Rising Debt Burden; Outlook Negative

Publication date: 05-Aug-2011 20:13:14 EST


 

·         We have also removed both the short- and long-term ratings from CreditWatch negative.

·         The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics.

·         More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.

·         Since then, we have changed our view of the difficulties in bridging the gulf between the political parties over fiscal policy, which makes us pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics any time soon.

·         The outlook on the long-term rating is negative. We could lower the long-term rating to 'AA' within the next two years if we see that less reduction in spending than agreed to, higher interest rates, or new fiscal pressures during the period result in a higher general government debt trajectory than we currently assume in our base case.

 

TORONTO (Standard & Poor's) Aug. 5, 2011--Standard & Poor's Ratings Services said today that it lowered its long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA'. Standard & Poor's also said that the outlook on the long-term rating is negative. At the same time, Standard & Poor's affirmed its 'A-1+' short-term rating on the U.S. In addition, Standard & Poor's removed both ratings from CreditWatch, where they were placed on July 14, 2011, with negative implications.

 

The transfer and convertibility (T&C) assessment of the U.S.--our assessment of the likelihood of official interference in the ability of U.S.-based public- and private-sector issuers to secure foreign exchange for

debt service--remains 'AAA'.

 

We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process. We also believe that the fiscal consolidation plan that Congress and the Administration agreed to this week falls short of the amount that we believe is necessary to stabilize the general government debt burden by the middle of the decade.

 

Our lowering of the rating was prompted by our view on the rising public debt burden and our perception of greater policymaking uncertainty, consistent with our criteria (see "Sovereign Government Rating Methodology and Assumptions ," June 30, 2011, especially Paragraphs 36-41). Nevertheless, we view the U.S. federal government's other economic, external, and monetary credit attributes, which form the basis for the sovereign rating, as broadly unchanged.

 

We have taken the ratings off CreditWatch because the Aug. 2 passage of the Budget Control Act Amendment of 2011 has removed any perceived immediate threat of payment default posed by delays to raising the government's debt ceiling. In addition, we believe that the act provides sufficient clarity to allow us to evaluate the likely course of U.S. fiscal policy for the next few years.

 

The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy. Despite this year's wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently. Republicans and Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures. It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements,

the containment of which we and most other independent observers regard as key to long-term fiscal sustainability.

 

Our opinion is that elected officials remain wary of tackling the structural issues required to effectively address the rising U.S. public debt burden in a manner consistent with a 'AAA' rating and with 'AAA' rated sovereign peers (see Sovereign Government Rating Methodology and Assumptions," June 30, 2011, especially Paragraphs 36-41). In our view, the difficulty in framing a consensus on fiscal policy weakens the government's ability to manage public finances and diverts attention from the debate over how to achieve more balanced and dynamic economic growth in an era of fiscal stringency and private-sector deleveraging (ibid). A new political consensus might (or might not) emerge after the 2012 elections, but we believe that by then, the government debt burden will likely be higher, the needed medium-term fiscal adjustment potentially greater, and the inflection point on the U.S. population's demographics and other age-related spending drivers closer at hand (see "Global Aging 2011: In The U.S., Going Gray Will Likely Cost Even More Green, Now," June 21, 2011).

 

Standard & Poor's takes no position on the mix of spending and revenue measures that Congress and the Administration might conclude is appropriate for putting the U.S.'s finances on a sustainable footing.

 

The act calls for as much as $2.4 trillion of reductions in expenditure growth over the 10 years through 2021. These cuts will be implemented in two steps: the $917 billion agreed to initially, followed by an additional $1.5 trillion that the newly formed Congressional Joint Select Committee on Deficit Reduction is supposed to recommend by November 2011. The act contains no measures to raise taxes or otherwise enhance revenues, though the committee could recommend them.

 

The act further provides that if Congress does not enact the committee's recommendations, cuts of $1.2 trillion will be implemented over the same time period. The reductions would mainly affect outlays for civilian discretionary spending, defense, and Medicare. We understand that this fall-back mechanism is designed to encourage Congress to embrace a more balanced mix of expenditure savings, as the committee might recommend.

 

We note that in a letter to Congress on Aug. 1, 2011, the Congressional Budget Office (CBO) estimated total budgetary savings under the act to be at least $2.1 trillion over the next 10 years relative to its baseline assumptions. In updating our own fiscal projections, with certain modifications outlined below, we have relied on the CBO's latest "Alternate Fiscal Scenario" of June 2011, updated to include the CBO assumptions contained in its Aug. 1 letter to Congress. In general, the CBO's "Alternate Fiscal Scenario" assumes a continuation of recent Congressional action overriding existing law.

 

We view the act's measures as a step toward fiscal consolidation. However, this is within the framework of a legislative mechanism that leaves open the details of what is finally agreed to until the end of 2011, and Congress and the Administration could modify any agreement in the future. Even assuming that at least $2.1 trillion of the spending reductions the act envisages are implemented, we maintain our view that the U.S. net general government debt burden (all levels of government combined, excluding liquid financial assets) will likely continue to grow. Under our revised base case fiscal scenario--which we consider to be consistent with a 'AA+' long-term rating and a negative outlook--we now project that net general government debt would rise from an estimated 74% of GDP by the end of 2011 to 79% in 2015 and 85% by 2021. Even the projected 2015 ratio of sovereign indebtedness is high in relation to those of peer credits and, as noted, would continue to rise under the act's revised policy settings.

 

Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act. Key macroeconomic assumptions in the base case scenario include trend real GDP growth of 3% and consumer price inflation near 2% annually over the decade.

 

Our revised upside scenario--which, other things being equal, we view as consistent with the outlook on the 'AA+' long-term rating being revised to stable--retains these same macroeconomic assumptions. In addition, it incorporates $950 billion of new revenues on the assumption that the 2001 and 2003 tax cuts for high earners lapse from 2013 onwards, as the Administration is advocating. In this scenario, we project that the net general government debt would rise from an estimated 74% of GDP by the end of 2011 to 77% in 2015 and to 78% by 2021.

 

Our revised downside scenario--which, other things being equal, we view as being consistent with a possible further downgrade to a 'AA' long-term rating--features less-favorable macroeconomic assumptions, as outlined below and also assumes that the second round of spending cuts (at least $1.2 trillion) that the act calls for does not occur. This scenario also assumes somewhat higher nominal interest rates for U.S. Treasuries. We still believe that the role of the U.S. dollar as the key reserve currency confers a government funding advantage, one that could change only slowly over time, and that Fed policy might lean toward continued loose monetary policy at a time of fiscal tightening. Nonetheless, it is possible that interest rates could rise if investors re-price relative risks. As a result, our alternate scenario factors in a 50 basis point (bp)-75 bp rise in 10-year bond yields relative to the base and upside cases from 2013 onwards. In this scenario, we project the net public debt burden would rise from 74% of GDP in 2011 to 90% in 2015 and to 101% by 2021.

 

Our revised scenarios also take into account the significant negative revisions to historical GDP data that the Bureau of Economic Analysis announced on July 29. From our perspective, the effect of these revisions underscores two related points when evaluating the likely debt trajectory of the U.S. government. First, the revisions show that the recent recession was deeper than previously assumed, so the GDP this year is lower than previously thought in both nominal and real terms. Consequently, the debt burden is slightly higher. Second, the revised data highlight the sub-par path of the current economic recovery when compared with rebounds following previous post-war recessions. We believe the sluggish pace of the current economic recovery could be consistent with the experiences of countries that have had financial crises in which the slow process of debt deleveraging in the private sector leads to a persistent drag on demand. As a result, our downside case scenario assumes relatively modest real trend GDP growth of 2.5% and inflation of near 1.5% annually going forward.

 

When comparing the U.S. to sovereigns with 'AAA' long-term ratings that we view as relevant peers--Canada, France, Germany, and the U.K.--we also observe, based on our base case scenarios for each, that the trajectory of the U.S.'s net public debt is diverging from the others. Including the U.S., we estimate that these five sovereigns will have net general government debt to GDP ratios this year ranging from 34% (Canada) to 80% (the U.K.), with the U.S. debt burden at 74%. By 2015, we project that their net public debt to GDP ratios will range between 30% (lowest, Canada) and 83% (highest, France), with the U.S. debt burden at 79%. However, in contrast with the U.S., we project that the net public debt burdens of these other sovereigns will begin to decline, either before or by 2015.

 

Standard & Poor's transfer T&C assessment of the U.S. remains 'AAA'. Our T&C assessment reflects our view of the likelihood of the sovereign restricting other public and private issuers' access to foreign exchange needed to meet debt service. Although in our view the credit standing of the U.S. government has deteriorated modestly, we see little indication that official interference of this kind is entering onto the policy agenda of either Congress or the Administration. Consequently, we continue to view this risk as being highly remote.

 

The outlook on the long-term rating is negative. As our downside alternate fiscal scenario illustrates, a higher public debt trajectory than we currently assume could lead us to lower the long-term rating again. On the other hand, as our upside scenario highlights, if the recommendations of the Congressional Joint Select Committee on Deficit Reduction--independently or coupled with other initiatives, such as the lapsing of the 2001 and 2003 tax cuts for high earners--lead to fiscal consolidation measures beyond the minimum mandated, and we believe they are likely to slow the deterioration of the government's debt dynamics, the long-term rating could stabilize at 'AA+'.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.43

UK Pound

1

Rs.95.07

Euro

1

Rs.81.77

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.