Wal-Mart Reports Record Sales and Earnings for Second Quarter.
Wal-Mart Reports Record Sales and Earnings
BENTONVILLE, Ark., August 13, 2002 -- Wal-Mart Stores, Inc. reported record sales and earnings for the quarter ended July 31, 2002. Total sales were $59.694 billion, an increase of 13.1 percent over the similar prior year quarter. Net income for the quarter was $2.038 billion, up from $1.622 billion for the similar prior year quarter. Earnings per share were $0.46, up 27.8 percent from the $0.36 per share reported in the same prior year quarter. Adjusted for the change in accounting for goodwill, earnings per share would have been up 23.0%.
Net sales for the six months ended July 31, 2002, were $114.654 billion, an increase of 13.7 percent over the similar prior year period. Net income for the six months increased 23.0 percent to a record $3.690 billion or $0.83 earnings per share, up from $3.001 billion or $0.67 earnings per share.
Lee Scott, President and CEO said, "We are pleased to report another record quarter of sales and earnings. For the first time in our history, we generated over $2 billion in net income in a non-holiday quarter. Through the efforts of our associates and thanks to our loyal customers, we achieved nearly a 26% increase in net income for the quarter on a 13.1% increase in sales."
Sales were as follows: (Dollars in billions)
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(Dollars in Billons)
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Quarter Ended July 31
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Year Ended July 31
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2002
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2001
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Percent Change
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2002
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2001
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Percent Change
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Wal-Mart
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$38.641
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$33.870
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14.1%
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$74.058
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$64.621
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14.6%
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SAM’S CLUB
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$7.939
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$7.270
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9.2%
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$15.234
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$13.805
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10.4%
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International
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$9.691
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$8.362
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15.9%
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$18.683
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$15.998
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16.8%
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McLane
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$3.423
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$3.297
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3.8%
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$6.679
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$6.427
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3.9%
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Total Company
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$59.694
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$52.799
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13.1%
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$114.654
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$100.851
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13.7%
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Total company comparable sales for the quarter were up 6.4 percent. This is represented by a 7.1 percent comp increase for the Wal-Mart stores and a 3.4 percent comp increase for SAM’S. Total company comparable sales for the six months were up 7.3 percent. This is represented by a 7.8 percent comp increase for the Wal-Mart stores and a 4.7 percent comp increase for SAM’S.
Wal-Mart Stores Segment:
For the second quarter, the Wal-Mart Stores segment, including Supercenters, had operating profit (profit before interest, unallocated corporate expenses, and income taxes) of $3.046 billion, an increase of 17.2 percent compared with $2.600 billion for the similar period in the previous year. For the six months operating profit was $5.600 billion, an increase of 16.7 percent as compared with $4.799 billion for the similar period in the previous year.
SAM’S CLUB Segment:
The SAM’S CLUB segment had an operating profit for the quarter of $275 million, an increase of 3.0 percent compared with $267 million for the similar period in the previous year. SAM’S operating profit for the six months was $493 million, an increase of 1.6 percent as compared with operating profit of $485 million for the similar period in the previous year.
International Segment:
The International segment had an operating profit of $510 million for the most recent quarter, an increase of 61.9 percent compared with $315 million for the similar period in the previous year. For the six months, International operating profit was $891 million, an increase of 68.1 percent as compared with $530 million for the similar period in the previous year.
A pre-recorded call offering additional comments on the quarter will be available to all investors for approximately 36 hours from the time of the release. You may listen to this call by dialing 402-998-1748 after the earnings release appears on the newswire.
As of July 31, 2002, the Company had 1611 Wal-Mart stores, 1156 Supercenters, 512 SAM’S CLUBS and 34 Neighborhood Markets in the United States. Internationally, the Company operated units in Argentina (11), Brazil (22), Canada (196), China (20), Germany (96), Korea (12), Mexico (575), Puerto Rico (18) and United Kingdom (255).
Wal-Mart also owns a 6.1% interest in Seiyu, Ltd. with options to purchase up to 66.7% of that company. Seiyu operates over 400 stores located throughout Japan.
Wal-Mart employs more than 1 million associates in the United States and more than 300,000 internationally. Its securities are listed on the New York and Pacific stock exchanges under the symbol WMT.
Wal-Mart includes the following cautionary statement to take advantage of the "safe harbor" provisions of the PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 for any forward- looking statement made by, or on behalf of, Wal-Mart. You are referred to Wal-Mart’s SEC filings for additional information regarding the safe harbor. The factors which could cause actual results to differ materially from predicted results include, among other things, cost of goods, competitive pressures, inflation, consumer debt levels, interest rate fluctuations, and other risks set forth in the Company’s filings with the SEC.
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WAL-MART STORES, INC., AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
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(Amounts in millions except per share data)
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Quarter Ended July 31,
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2002
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% to Sales
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2001
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% to Sales
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Net sales
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$ 59,694
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100%
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$ 52,799
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100%
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Other income-net
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561
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0.94%
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470
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.89%
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60,255
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100.94%
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53,269
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100.89%
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Cost of sales
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46,639
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78.13%
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41,412
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78.43%
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Operating, selling, and general
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and administrative expenses
|
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10,147
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17%
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8,893
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16.84%
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Interest costs:
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Debt
|
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199
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0.33%
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284
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0.54%
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Capital leases
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63
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0.11%
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67
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0.13%
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57,048
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95.57%
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50,656
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95.94%
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Income before income taxes,
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and minority interest
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3,207
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5.37%
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2,613
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4.95%
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Provision for income taxes
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1,124
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1.88%
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|
954
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1.81%
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Income before minority interest
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2,083
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3.49%
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1,659
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3.14%
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Minority interest
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(45)
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(0.08%)
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(37)
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(0.07%)
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Net income
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$2,038
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3.41%
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|
$1,622
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3.07%
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Net income per share:
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Basic earnings per share
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$0.46
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$0.36
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Diluted earnings per share
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$0.46
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$0.36
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Average number of common shares:
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Basic
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4,438
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4,470
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Dilutive
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4,452
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4,486
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Lifo credit/(charge)
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($10)
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$10
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WAL-MART STORES, INC., AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
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(Amounts in millions except per share data)
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Six Months Ended July 31,
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2002
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% to Sales
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2001
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% to Sales
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Net sales
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$ 114,654
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100%
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$ 100,851
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100%
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Other income-net
|
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1,019
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0.89%
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|
983
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0.97%
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115,673
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100.89%
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101,834
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100.97%
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Cost of sales
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89,697
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78.23%
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79,262
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78.59%
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Operating, selling, and general
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and administrative expenses
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19,601
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17.10%
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17,036
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16.89%
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Interest costs:
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Debt
|
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415
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0.36%
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569
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0.56%
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Capital leases
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128
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0.11%
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135
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0.13%
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109,841
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95.80%
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97,002
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96.18%
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Income before income taxes,
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and minority interest
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5,832
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5.09%
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4,832
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4.79%
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Provision for income taxes
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2,056
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1.79%
|
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1,764
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1.75%
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Income before minority interest
|
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3,776
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3.29%
|
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3,068
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3.04%
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Minority interest
|
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(86)
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|
(0.08%)
|
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(67)
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(0.07%)
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|
|
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Net income
|
|
$3,690
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3.22%
|
|
$3,001
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2.98%
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Net income per share:
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Basic earnings per share
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$0.83
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$0.67
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Diluted earnings per share
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$0.83
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$0.67
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Average number of common shares:
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Basic
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4,445
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4,472
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Dilutive
|
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4,460
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4,488
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Lifo credit/(charge)
|
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($20)
|
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|
|
$20
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|
|
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WAL-MART STORES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
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SUBJECT TO RECLASSIFICATION
(Amounts in millions)
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July 31,
|
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July 31,
|
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|
ASSETS
|
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2002
|
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2001
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Current assets
|
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Cash and cash equivalents
|
|
$ 2,288
|
|
$ 1,834
|
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Receivables
|
|
1,934
|
|
1,751
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|
|
Inventories
|
|
24,270
|
|
23,034
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|
|
Prepaid expenses and other
|
|
1,304
|
|
1,377
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|
|
|
|
|
|
|
|
Total current assets
|
|
29,796
|
|
27,996
|
|
|
|
|
|
|
|
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|
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Property, plant and equipment
|
|
58,212
|
|
51,275
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|
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Accumulated depreciation
|
|
(12,801)
|
|
(11,418)
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|
|
|
|
|
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|
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Net property, plant and equipment
|
|
45,411
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|
39,857
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Net property under capital leases
|
|
3,057
|
|
3,146
|
|
|
|
|
|
|
|
|
|
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Net goodwill and other acquired intangible assets
|
|
9,031
|
|
8,543
|
|
|
Other assets and deferred charges
|
|
1,290
|
|
2,034
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ 88,585
|
|
$ 81,576
|
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LIABILITIES & SHAREHOLDERS’ EQUITY
|
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|
|
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Current liabilities
|
|
|
|
|
|
|
|
Commercial paper
|
|
$1,453
|
|
$ 1,088
|
|
|
|
Accounts payable
|
|
16,983
|
|
15,422
|
|
|
|
Accrued liabilities
|
|
7,773
|
|
6,172
|
|
|
|
Accrued income taxes
|
|
639
|
|
625
|
|
|
|
Long-term debt due within one year
|
|
3,031
|
|
3,974
|
|
|
|
Obligations under capial leases due within one year
|
|
155
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|
142
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|
|
|
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Total current liabilities
|
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30,034
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|
27,423
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|
|
|
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Long-term debt
|
|
16,201
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|
15,706
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|
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|
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Long-term obligations under capital leases
|
|
2,878
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|
3,030
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|
|
|
|
|
|
|
|
|
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Deferred income taxes and other
|
|
1,240
|
|
1,233
|
|
|
|
|
|
|
|
|
|
|
Minority interest
|
|
1,266
|
|
1,106
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity
|
|
|
|
|
|
|
|
Common stock & paid in capital
|
|
1,869
|
|
1,792
|
|
|
|
Retained earnings
|
|
35,874
|
|
32,303
|
|
|
|
Other accumulated comprehensive income
|
|
(777)
|
|
(1,017)
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’ equity
|
|
36.966
|
|
33,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity
|
|
$ 88,585
|
|
$ 81,576
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WAL-MART STORES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED
(Unaudited)
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|
SUBJECT TO RECLASSIFICATION
(Amounts in millions)
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|
|
|
|
|
|
|
|
|
|
July 31,
|
|
July 31 ,
|
|
|
|
|
2002
|
|
2001
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 3,690
|
|
$ 3,001
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to
|
|
|
|
|
|
|
|
net cash provided by operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
1,599
|
|
1,481
|
|
|
|
Increase in inventories
|
|
(1,679)
|
|
(1,631)
|
|
|
|
Increase/(decrease) in accounts payable
|
|
1,378
|
|
539
|
|
|
|
Other
|
|
(14)
|
|
(444)
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
4,974
|
|
2,946
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
Payments for property plant and equipment
|
|
(4,458)
|
|
(3,874)
|
|
|
|
Other investing activities
|
|
276
|
|