The Home Depot Announces First Quarter Results

The Home Depot Announces First Quarter Results



SHARE THIS ARTICLE

–FAX BACK–

PRN Editor
PRN XP DESKTOP
2
61
2008-05-19T22:35:00Z
2008-05-20T13:25:00Z
2008-05-20T13:25:00Z
4
1309
7516
Sent
PR Newswire
37888
220
118
11744
9.2720

1

3 pt
2
2

ATLANTA,
May 20 /PRNewswire-HISPANIC PR WIRE/ — The Home Depot(R), the world’s largest
home improvement retailer, today reported fiscal 2008 first quarter
consolidated net earnings of $356 million, or $0.21 per diluted share, compared
with $1.0 billion, or $0.53 per diluted share, in the same period in fiscal
2007.  These results reflect a nonrecurring
charge of $543 million due to the recently announced closing of 15 stores and
removal of 50 stores from the future growth pipeline.  Excluding this nonrecurring charge, the Company reported
consolidated net earnings of $697 million, or $0.41 per diluted share.

(Logo:  http://www.newscom.com/cgi-bin/prnh/20030502/HOMEDEPOTLOGO
)

 

Sales
for the first quarter totaled $17.9 billion, a 3.4 percent decrease from the
first quarter of fiscal 2007, reflecting negative comparable store sales of 6.5
percent, offset in part by sales from new stores.  Due to the 14th week in the fourth quarter of 2007, first quarter
benefited from a seasonal timing change that added approximately $536 million
to sales.   

 

“The
housing and home improvement markets remained difficult in the first quarter;
in fact, conditions worsened in many areas of the country,” said Frank
Blake, chairman & CEO.  “I want
to thank our associates for their hard work in a tough environment.  We will continue to invest wisely in our
core retail business to earn our customers’ confidence and ensure the long-term
health of our business.”

In
addition, our decision to close stores and remove planned stores from our
pipeline demonstrates our commitment to disciplined capital allocation. This
discipline and reinvestment in our existing stores will benefit our
shareholders, associates and customers,” said Blake.

 

On
June 5th at 8 a.m. ET, the Company will hold its Investor and Analyst Conference
to update the investment community on key areas of the business.  All presentations will be webcast live at
homedepot.com in the Investor Relations section.

 

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 homedepot.com in the Investor
Relations section.

 

At
the end of the first quarter, the Company operated a total of 2,258 retail
stores, which included 1,970 The Home Depot stores in the United States (including
the Commonwealth of Puerto Rico, the territory of the U.S. Virgin Islands and
the territory of Guam), 166 stores in Canada, 69 stores in Mexico, 12 stores in
China, as well as 2 THD Design Centers, 5 Yardbirds stores and 34 EXPO Design
Center locations.  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. HDE

 

To
provide clarity about the Company’s operating performance for the recently
completed fiscal quarter, the Company has supplemented its reporting with
non-GAAP measurements to reflect the store rationalization charge.  This supplemental information should not be
considered in isolation or as a substitute for the related GAAP
measurements.  The Company believes that
such non-GAAP measures provide management and investors with meaningful
information to understand and analyze the Company’s performance.

 

Certain
statements contained herein, including any statements related to the state of
the home improvement market, the state of the construction and housing markets,
and our reinvestment plans, constitute “forward-looking statements”
as defined in the Private Securities Litigation Reform Act of 1995. While these
statements are based on currently available information and current
expectations and projections about future events, such forward-looking
statements may prove to be incorrect. Risks and uncertainties include but are
not limited to: economic conditions in North America; changes in our cost
structure; our ability to attract, train and retain highly qualified
associates; conditions affecting customer transactions and average ticket,
including, but not limited to, weather conditions, improving and streamlining
operations, and customers’ in-store experience. Undue reliance should not be
placed on such forward-looking statements as they speak only as of the date
hereof, and we undertake no obligation to update these statements to reflect subsequent
events or circumstances except as may be required by law.  Additional information regarding these and
other risks and uncertainties is contained in our periodic filings with the
SEC, including our Annual Report on Form 10-K for the fiscal year ended
February 3, 2008.

 

 

 

                     
THE
HOME DEPOT, INC. AND SUBSIDIARIES

                      

CONSOLIDATED STATEMENTS OF EARNINGS

           
FOR THE THREE
MONTHS ENDED MAY 4, 2008 AND APRIL 29, 2007

                                  

(Unaudited)

       
(Amounts in
Millions Except Per Share Data and as Otherwise Noted)

    

                                              
Three Months
Ended   % Increase

                                              
5-4-08     4-29-07  
(Decrease)

      
                                               

   
NET SALES                                 $17,907     $18,545       (3.4)%

   
Cost of Sales                              11,835      12,282       (3.6)

     
GROSS PROFIT                              6,072       6,263       (3.0)

    

   
Operating
Expenses:                              

     
Selling, General and
Administrative       4,900       4,186       17.1

     
Depreciation and
Amortization               444         405        9.6

       
Total Operating
Expenses                5,344       4,591       16.4

    

     
OPERATING INCOME                            728       1,672      (56.5)

    

   
Interest (Income)
Expense:                       

     
Interest and
Investment Income               (3)        (11)     (72.7)

     
Interest Expense                            167         171       (2.3)

       
Interest, net                             164         160        2.5

    

   
EARNINGS FROM
CONTINUING OPERATIONS              

    
BEFORE PROVISION FOR
INCOME TAXES            564       1,512      (62.7)

    

   
Provision for Income
Taxes                    208         565      (63.2)

    

   
EARNINGS FROM
CONTINUING OPERATIONS           356         947      (62.4)

    

    EARNINGS FROM DISCONTINUED OPERATIONS,

    
NET OF TAX                                               99     (100.0)

    

     
NET EARNINGS                               $356      $1,046      (66.0)%

    

    

   
Weighted Average Common
Shares              1,679      
1,959      (14.3)%

    

   
BASIC EARNINGS PER
SHARE FROM CONTINUING

    
OPERATIONS                                 $0.21       $0.48      (56.3)

                                                     

   
BASIC EARNINGS PER SHARE
FROM DISCONTINUED

    
OPERATIONS                                    $-       $0.05     (100.0)

                                                     

   
BASIC EARNINGS PER
SHARE                    $0.21       $0.53      (60.4)

    

   
Diluted Weighted
Average Common Shares      1,683       1,969      (14.5)%

    

   
DILUTED EARNINGS PER
SHARE FROM CONTINUING

    
OPERATIONS                                 $0.21       $0.48      (56.3)

                                                     

   
DILUTED EARNINGS PER
SHARE FROM

    
DISCONTINUED
OPERATIONS                       $-       $0.05     (100.0)

                                                     

   
DILUTED EARNINGS PER
SHARE                  $0.21       $0.53      (60.4)

    

    

    SELECTED HIGHLIGHTS (1)                    Three Months Ended   % Increase

                                              
5-4-08     4-29-07  
(Decrease)

 

   
Number of Customer
Transactions               314         318       (1.3)%

   
Average Ticket                             $57.36      $59.01       (2.8)

   
Weighted Average Weekly
Sales per

    
Operating Store                             $616        $665       (7.4)

   
Square Footage at End
of Period               237         228        3.9

   
Capital
Expenditures                        
$530        $641      (17.3)

   
Depreciation and
Amortization (2)            $474        $435        9.0

    

   
(1) Includes continuing
operations only.         

   
(2) Includes
depreciation of distribution centers and tool rental

       
equipment included
in Cost of Sales and amortization of deferred

       
financing costs
included in Interest Expense. 

 

 

                    
THE HOME DEPOT, INC.
AND SUBSIDIARIES

                                                                
CONSOLIDATED BALANCE
SHEETS

                               
AS OF MAY 4, 2008, APRIL
29, 2007 AND FEBRUARY 3, 2008

                                                                                    
(Amounts
in Millions)

    

                                              
5-4-08     4-29-07     2-3-08

                                           
(Unaudited)
(Unaudited)  (Audited)

    

   
ASSETS                                            

     
Cash and Short-Term
Investments            $779      $2,081       $457

     
Receivables, net                          1,571       3,529      1,259

     
Merchandise
Inventories                  12,637      14,413     11,731

     
Other Current
Assets                      1,353       1,496      1,227

       
Total Current
Assets                   16,340      21,519     14,674

    

     
Property and
Equipment, net              27,113      26,889     27,476

     
Goodwill                                  1,210       6,357      1,209

     
Other Assets                                933       1,316        965

       
TOTAL ASSETS                          $45,596     $56,081    $44,324

    

   
LIABILITIES AND
STOCKHOLDERS’ EQUITY             

     
Short-Term Debt                            $495          $-     $1,747

     
Accounts Payable                          7,861       9,706      5,732

     
Accrued Salaries and
Related Expenses     1,029       1,175      1,094

     
Current Installments
of Long-Term Debt      300          19        300

     
Other Current
Liabilities                 4,434       4,943      3,833

       
Total Current
Liabilities              14,119      15,843     12,706

    

     
Long-Term Debt                           11,339      11,640     11,383

     
Other Long-Term
Liabilities               2,432       2,925      2,521

       
Total
Liabilities                     
27,890      30,408     26,610

    

     
Total Stockholders’
Equity               17,706      25,673     17,714

       
TOTAL LIABILITIES
AND STOCKHOLDERS’

        
EQUITY                               $45,596     $56,081    $44,324

 

 

The Home Depot Announces First Quarter Results