Attached files
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| 8-K - FORM 8-K - HOME DEPOT, INC. | hd_8kx07292012.htm |
Exhibit 99.1
THE HOME DEPOT ANNOUNCES SECOND QUARTER RESULTS;
UPDATES FISCAL YEAR 2012 GUIDANCE
ATLANTA, August 14, 2012 -- The Home Depot®, the world's largest home improvement retailer, today reported second quarter of fiscal 2012 net earnings of $1.5 billion, or $1.01 per diluted share, compared with net earnings of $1.4 billion, or $0.86 per diluted share, in the same period of fiscal 2011. For the second quarter of fiscal 2012, diluted earnings per share increased 17.4 percent from the same period in the prior year.
Sales for the second quarter totaled $20.6 billion, a 1.7 percent increase from the second quarter of fiscal 2011. Comparable store sales for the second quarter of fiscal 2012 were positive 2.1 percent, and comp sales for U.S. stores were positive 2.6 percent.
“As expected, second-quarter sales reflected the pull forward of seasonal activity into the first quarter. But we saw continued demand for core products and delivered second-quarter earnings above our expectations,” said Frank Blake, chairman & CEO. “I would like to thank our associates for their hard work and commitment to our customers.”
Updated Fiscal 2012 Guidance
The Company confirmed that it expects fiscal 2012 sales will be up approximately 4.6 percent from the prior year on a 53-week basis. Based on its year-to-date performance, the Company raised its fiscal 2012 diluted earnings-per-share guidance and now expects diluted earnings per share to be up approximately 19 percent to $2.95 for the year. This earnings-per-share guidance includes the benefit of the Company's year-to-date share repurchases and the Company's intent to repurchase $1.4 billion in additional shares over the remainder of the year.
The Home Depot will conduct a conference call today at 9 a.m. ET to discuss information included in this news release and related matters. The conference call will be available in its entirety through a webcast and replay at earnings.homedepot.com.
At the end of the second quarter, the Company operated a total of 2,255 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces, Mexico and China. The Company employs more than 300,000 associates. The Home Depot's stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones industrial average and Standard & Poor's 500 index.
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Certain statements contained herein constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may relate to, among other things, the demand for our products and services, net sales growth, comparable store sales, state of the economy, state of the residential construction, housing and home improvement markets, state of the credit markets, including mortgages, home equity loans and consumer credit, inventory and in-stock
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positions, commodity price inflation and deflation, implementation of store and supply chain initiatives, continuation of stock repurchase programs, net earnings performance, earnings per share, capital allocation and expenditures, liquidity, return on invested capital, management of our purchasing or customer credit policies, stock-based compensation expense, the effect of accounting charges, the effect of adopting certain accounting standards, the ability to issue debt on terms and at rates acceptable to us, store openings and closures, expense leverage, guidance for fiscal 2012 and beyond and financial outlook. Forward-looking statements are based on currently available information and our current assumptions, expectations and projections about future events. You should not rely on our forward-looking statements. These statements are not guarantees of future performance and are subject to future events, risks and uncertainties - many of which are beyond our control or are currently unknown to us - as well as potentially inaccurate assumptions that could cause actual results to differ materially from our expectations and projections. These risks and uncertainties include but are not limited to those described in Item 1A, “Risk Factors,” and elsewhere in our Annual Report on Form 10-K for our fiscal year ended January 29, 2012 and in our subsequent Quarterly Reports on Form 10-Q.
Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements other than as required by law. You are advised, however, to review any further disclosures we make on related subjects in our periodic filings with the Securities and Exchange Commission.
For more information, contact: | ||
Financial Community | News Media | |
Diane Dayhoff | Paula Drake | |
Vice President of Investor Relations | Senior Manager of Corporate Communications | |
770-384-2666 | 770-384-3439 | |
diane_dayhoff@homedepot.com | paula_drake@homedepot.com | |
THE HOME DEPOT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS AND SIX MONTHS ENDED JULY 29, 2012 AND JULY 31, 2011
(Unaudited)
(Amounts in Millions Except Per Share Data and as Otherwise Noted)
Three Months Ended | Six Months Ended | ||||||||||||||||||||
July 29, 2012 | July 31, 2011 | % Increase (Decrease) | July 29, 2012 | July 31, 2011 | % Increase (Decrease) | ||||||||||||||||
NET SALES | $ | 20,570 | $ | 20,232 | 1.7 | % | $ | 38,378 | $ | 37,055 | 3.6 | % | |||||||||
Cost of Sales | 13,544 | 13,356 | 1.4 | 25,169 | 24,351 | 3.4 | |||||||||||||||
GROSS PROFIT | 7,026 | 6,876 | 2.2 | 13,209 | 12,704 | 4.0 | |||||||||||||||
Operating Expenses: | |||||||||||||||||||||
Selling, General and Administrative | 4,066 | 4,186 | (2.9 | ) | 8,152 | 8,195 | (0.5 | ) | |||||||||||||
Depreciation and Amortization | 391 | 396 | (1.3 | ) | 774 | 793 | (2.4 | ) | |||||||||||||
Total Operating Expenses | 4,457 | 4,582 | (2.7 | ) | 8,926 | 8,988 | (0.7 | ) | |||||||||||||
OPERATING INCOME | 2,569 | 2,294 | 12.0 | 4,283 | 3,716 | 15.3 | |||||||||||||||
Interest and Other (Income) Expense: | |||||||||||||||||||||
Interest and Investment Income | (4 | ) | (3 | ) | 33.3 | (9 | ) | (5 | ) | 80.0 | |||||||||||
Interest Expense | 155 | 149 | 4.0 | 311 | 290 | 7.2 | |||||||||||||||
Other | — | — | — | (67 | ) | — | N/A | ||||||||||||||
Interest and Other, net | 151 | 146 | 3.4 | 235 | 285 | (17.5 | ) | ||||||||||||||
EARNINGS BEFORE PROVISION FOR INCOME TAXES | 2,418 | 2,148 | 12.6 | 4,048 | 3,431 | 18.0 | |||||||||||||||
Provision for Income Taxes | 886 | 785 | 12.9 | 1,481 | 1,256 | 17.9 | |||||||||||||||
NET EARNINGS | $ | 1,532 | $ | 1,363 | 12.4 | % | $ | 2,567 | $ | 2,175 | 18.0 | % | |||||||||
Weighted Average Common Shares | 1,501 | 1,568 | (4.3 | )% | 1,513 | 1,585 | (4.5 | )% | |||||||||||||
BASIC EARNINGS PER SHARE | $ | 1.02 | $ | 0.87 | 17.2 | $ | 1.70 | $ | 1.37 | 24.1 | |||||||||||
Diluted Weighted Average Common Shares | 1,512 | 1,577 | (4.1 | )% | 1,525 | 1,595 | (4.4 | )% | |||||||||||||
DILUTED EARNINGS PER SHARE | $ | 1.01 | $ | 0.86 | 17.4 | $ | 1.68 | $ | 1.36 | 23.5 | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
SELECTED HIGHLIGHTS | July 29, 2012 | July 31, 2011 | % Increase (Decrease) | July 29, 2012 | July 31, 2011 | % Increase(Decrease) | |||||||||||||||
Number of Customer Transactions | 374.9 | 372.7 | 0.6 | % | 703.9 | 689.2 | 2.1 | % | |||||||||||||
Average Ticket (actual) | $ | 55.02 | $ | 54.04 | 1.8 | $ | 54.78 | $ | 53.72 | 2.0 | |||||||||||
Weighted Average Weekly Sales per Operating Store (in thousands) | $ | 704 | $ | 690 | 2.0 | $ | 658 | $ | 634 | 3.8 | |||||||||||
Square Footage at End of Period | 236 | 235 | 0.4 | 236 | 235 | 0.4 | |||||||||||||||
Capital Expenditures | $ | 323 | $ | 270 | 19.6 | $ | 551 | $ | 469 | 17.5 | |||||||||||
Depreciation and Amortization (1) | $ | 423 | $ | 425 | (0.5 | )% | $ | 833 | $ | 849 | (1.9 | )% | |||||||||
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(1) | Includes depreciation of distribution centers and tool rental equipment included in Cost of Sales and amortization of deferred financing costs included in Interest Expense. |
N/A - Not Applicable
THE HOME DEPOT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF JULY 29, 2012, JULY 31, 2011 AND JANUARY 29, 2012
(Unaudited)
(Amounts in Millions)
July 29, 2012 | July 31, 2011 | January 29, 2012 | |||||||||
ASSETS | |||||||||||
Cash and Cash Equivalents | $ | 2,810 | $ | 2,551 | $ | 1,987 | |||||
Receivables, net | 1,505 | 1,332 | 1,245 | ||||||||
Merchandise Inventories | 10,910 | 10,756 | 10,325 | ||||||||
Other Current Assets | 1,006 | 1,218 | 963 | ||||||||
Total Current Assets | 16,231 | 15,857 | 14,520 | ||||||||
Property and Equipment, net | 24,154 | 24,798 | 24,448 | ||||||||
Goodwill | 1,157 | 1,177 | 1,120 | ||||||||
Other Assets | 441 | 445 | 430 | ||||||||
TOTAL ASSETS | $ | 41,983 | $ | 42,277 | $ | 40,518 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Accounts Payable | $ | 6,137 | $ | 5,890 | $ | 4,856 | |||||
Accrued Salaries and Related Expenses | 1,370 | 1,262 | 1,372 | ||||||||
Current Installments of Long-Term Debt | 34 | 44 | 30 | ||||||||
Other Current Liabilities | 3,693 | 3,751 | 3,118 | ||||||||
Total Current Liabilities | 11,234 | 10,947 | 9,376 | ||||||||
Long-Term Debt | 10,771 | 10,731 | 10,758 | ||||||||
Other Long-Term Liabilities | 2,344 | 2,366 | 2,486 | ||||||||
Total Liabilities | 24,349 | 24,044 | 22,620 | ||||||||
Total Stockholders' Equity | 17,634 | 18,233 | 17,898 | ||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 41,983 | $ | 42,277 | $ | 40,518 | |||||
THE HOME DEPOT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JULY 29, 2012 AND JULY 31, 2011
(Unaudited)
(Amounts in Millions)
Six Months Ended | |||||||
July 29, 2012 | July 31, 2011 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Earnings | $ | 2,567 | $ | 2,175 | |||
Reconciliation of Net Earnings to Net Cash Provided by Operating Activities: | |||||||
Depreciation and Amortization | 833 | 849 | |||||
Stock-Based Compensation Expense | 107 | 108 | |||||
Changes in Working Capital and Other | 754 | 1,355 | |||||
Net Cash Provided by Operating Activities | 4,261 | 4,487 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Capital Expenditures | (551 | ) | (469 | ) | |||
Payment for Business Acquired, net | (45 | ) | — | ||||
Proceeds from Sales of Property and Equipment | 15 | 27 | |||||
Net Cash Used in Investing Activities | (581 | ) | (442 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds from Long-Term Borrowings, net of discount | — | 1,994 | |||||
Repayments of Long-Term Debt | (16 | ) | (1,014 | ) | |||
Repurchases of Common Stock | (2,630 | ) | (2,251 | ) | |||
Proceeds from Sales of Common Stock | 553 | 83 | |||||
Cash Dividends Paid to Stockholders | (880 | ) | (798 | ) | |||
Other | 122 | (54 | ) | ||||
Net Cash Used in Financing Activities | (2,851 | ) | (2,040 | ) | |||
Change in Cash and Cash Equivalents | 829 | 2,005 | |||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (6 | ) | 1 | ||||
Cash and Cash Equivalents at the Beginning of the Period | 1,987 | 545 | |||||
Cash and Cash Equivalents at the End of the Period | $ | 2,810 | $ | 2,551 | |||