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Press release from CNW Group

The Home Depot Announces Fourth Quarter and Fiscal 2011 Results; Provides Fiscal Year 2012 Guidance

Tuesday, February 21, 2012

The Home Depot Announces Fourth Quarter and Fiscal 2011 Results; Provides Fiscal Year 2012 Guidance06:01 EST Tuesday, February 21, 2012ATLANTA, Feb. 21, 2012 /CNW/ - The Home Depot®, the world's largest home improvement retailer, today reported sales of $16.0 billion for the fourth quarter of fiscal 2011, a 5.9 percent increase from the fourth quarter of fiscal 2010. Comparable store sales for the fourth quarter of fiscal 2011 were positive 5.7 percent, and comp sales for U.S. stores were positive 6.1 percent.(Logo: http://photos.prnewswire.com/prnh/20030502/HOMEDEPOTLOGO )Net earnings for the fourth quarter were $774 million, or $0.50 per diluted share, compared with net earnings of $587 million, or $0.36 per diluted share, in the same period of fiscal 2010. For the fourth quarter of fiscal 2011, diluted earnings per share increased 38.9 percent from the prior year. Fiscal 2011Sales for fiscal 2011 were $70.4 billion, an increase of 3.5 percent from fiscal 2010. Total company comparable store sales for the year increased 3.4 percent, and comp sales for U.S. stores were positive 3.0 percent for the year.Earnings per diluted share in fiscal 2011 were $2.47, compared to $2.01 per diluted share in fiscal 2010, an increase of 22.9 percent. "We had a strong finish to 2011, and with favorable weather, our business delivered results that exceeded our expectations," said Frank Blake, chairman & CEO. "I'd like to thank our associates for their hard work and dedication."Fiscal 2012 Guidance The Company will have 53 weeks of operating results in fiscal 2012 and provided the following guidance for fiscal 2012:Sales growth of approximately 4 percent including the 53rd week53rd week projected to add approximately $1 billion to total salesLow single-digit comparable store sales growth for the 52-week period11 new storesModerate gross margin expansionOperating margin expansion of approximately 50 basis pointsTax rate of approximately 37%53rd week expected to contribute approximately 3 cents of diluted earnings per share53-week diluted earnings-per-share growth before share repurchases of approximately 10 percent to $2.7253-week diluted earnings-per-share growth after anticipated share repurchases of approximately 13 percent to $2.79Capital spending of approximately $1.325 billionDepreciation and amortization expense of approximately $1.65 billionCash flow from the business of approximately $6.6 billionShare repurchases of approximately $3.5 billionThe 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 fourth quarter, the Company operated a total of 2,252 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.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 positions, commodity price inflation and deflation, implementation of store and supply chain initiatives, continuation of reinvestment plans, net earnings performance, earnings per share, stock-based compensation expense, capital allocation and expenditures, liquidity, the effect of adopting certain accounting standards, return on invested capital, management of our purchasing or customer credit policies, the effect of accounting charges, the planned recapitalization of the Company and the timing of its completion, the ability to issue debt on terms and at rates acceptable to us, store openings and closures, expense leverage, guidance for fiscal 2012 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 30, 2011.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. THE HOME DEPOT, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF EARNINGS FOR THE THREE MONTHS AND FISCAL YEARS ENDED JANUARY 29, 2012 AND JANUARY 30, 2011(Unaudited)(Amounts in Millions Except Per Share Data and as Otherwise Noted)Three Months Ended% Increase Fiscal Year Ended% Increase 1-29-121-30-11(Decrease) 1-29-121-30-11(Decrease) NET SALES$ 16,014$ 15,1265.9%$ 70,395$ 67,9973.5%Cost of Sales10,4179,8835.446,13344,6933.2 GROSS PROFIT5,5975,2436.824,26223,3044.1Operating Expenses: Selling, General and Administrative3,8773,8071.816,02815,8491.1 Depreciation and Amortization390399(2.3)1,5731,616(2.7) Total Operating Expenses4,2674,2061.517,60117,4650.8 OPERATING INCOME1,3301,03728.36,6615,83914.1Interest and Other (Income) Expense: Interest and Investment Income(4)(4)-(13)(15)(13.3) Interest Expense1549169.260653014.3 Other----51(100.0) Interest and Other, net1508772.45935664.8EARNINGS BEFORE PROVISION FOR INCOME TAXES1,18095024.26,0685,27315.1Provision for Income Taxes40636311.82,1851,93512.9 NET EARNINGS $ 774$ 58731.9%$ 3,883$ 3,33816.3%Weighted Average Common Shares1,5251,614(5.5)%1,5621,648(5.2)%BASIC EARNINGS PER SHARE$ 0.51$ 0.3641.7$ 2.49$ 2.0322.7Diluted Weighted Average Common Shares1,5351,626(5.6)%1,5701,658(5.3)%DILUTED EARNINGS PER SHARE$ 0.50$ 0.3638.9$ 2.47$ 2.0122.9SELECTED HIGHLIGHTSThree Months Ended % Increase Fiscal Year Ended% Increase 1-29-121-30-11(Decrease) 1-29-121-30-11(Decrease) Number of Customer Transactions303.0292.43.6%1,317.51,305.70.9%Average Ticket (actual)$ 52.54$ 51.312.4$ 53.28$ 51.932.6Weighted Average Weekly Sales per Operating Store (in thousands)$ 544$ 5145.8$ 601$ 5813.4Square Footage at End of Period 235235-235235-Capital Expenditures$ 401$ 407(1.5)$ 1,221$ 1,09611.4Depreciation and Amortization (1)$ 417$ 426(2.1)%$ 1,682$ 1,718(2.1)%(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.THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF JANUARY 29, 2012 AND JANUARY 30, 2011 (Unaudited) (Amounts in Millions) 1-29-121-30-11 ASSETS Cash and Cash Equivalents $ 1,987$ 545 Receivables, net 1,2451,085 Merchandise Inventories 10,32510,625 Other Current Assets 9631,224 Total Current Assets 14,52013,479 Property and Equipment, net 24,44825,060 Goodwill 1,1201,187 Other Assets 430399 TOTAL ASSETS $ 40,518$ 40,125 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts Payable $ 4,856$ 4,717 Accrued Salaries and Related Expenses 1,3721,290 Current Installments of Long-Term Debt 301,042 Other Current Liabilities 3,1183,073 Total Current Liabilities 9,37610,122 Long-Term Debt 10,7588,707 Other Long-Term Liabilities 2,4862,407 Total Liabilities 22,62021,236 Total Stockholders' Equity 17,89818,889 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 40,518$ 40,125THE HOME DEPOT, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR FISCAL YEARS ENDED JANUARY 29, 2012 AND JANUARY 30, 2011 (Unaudited) (Amounts in Millions) Fiscal Year Ended1-29-121-30-11CASH FLOWS FROM OPERATING ACTIVITIES:Net Earnings $ 3,883$ 3,338Reconciliation of Net Earnings to Net Cash Provided by Operating Activities: Depreciation and Amortization 1,6821,718 Stock-Based Compensation Expense 215214 Changes in Working Capital and Other 871(685) Net Cash Provided by Operating Activities 6,6514,585CASH FLOWS FROM INVESTING ACTIVITIES:Capital Expenditures(1,221)(1,096)Proceeds from Sale of Business, net101-Payments for Business Acquired, net(65)-Proceeds from Sales of Property and Equipment5684 Net Cash Used in Investing Activities (1,129)(1,012)CASH FLOWS FROM FINANCING ACTIVITIES:Proceeds from Long-Term Borrowings, net of discount1,994998Repayments of Long-Term Debt(1,028)(1,029)Repurchases of Common Stock(3,470)(2,608)Cash Dividends Paid to Stockholders(1,632)(1,569)Other 88(243) Net Cash Used in Financing Activities(4,048)(4,451)Change in Cash and Cash Equivalents1,474(878)Effect of Exchange Rate Changes on Cash and Cash Equivalents(32)2Cash and Cash Equivalents at the Beginning of the Period5451,421Cash and Cash Equivalents at the End of the Period$ 1,987$ 545SOURCE The Home DepotFor further information: Financial Community, Diane Dayhoff, Vice President of Investor Relations, +1-770-384-2666, diane_dayhoff@homedepot.com, or News Media, Paula Drake Senior Manager of Corporate Communications, +1-770-384-3439, paula_drake@homedepot.comhttp://www.homedepot.comhttp://photos.prnewswire.com/prnh/20030502/HOMEDEPOTLOGOPRN Photo Desk, photodesk@prnewswire.com