ATLANTA, Nov. 17 /PRNewswire-HISPANIC PR
WIRE/ -- The Home Depot(R), the world's largest home improvement retailer,
today reported third quarter of fiscal 2009 net earnings of $689 million, or
$0.41 per diluted share, compared with net earnings of $756 million, or $0.45
per diluted share, in the same period in fiscal 2008.
(Logo: www.newscom.com/cgi-bin/prnh/20030502/HOMEDEPOTLOGO )
Sales for the third quarter totaled $16.4
billion, an 8.0 percent decrease from the third quarter of fiscal 2008.
Comparable store sales for the third quarter were negative 6.9 percent, and
comp sales for U.S. stores were negative 7.1 percent.
"There is still a great deal of pressure
in the housing and home improvement markets, though there are some positive
signs of stabilization," said Frank Blake, chairman and CEO. style="mso-spacerun: yes"> "Our business continues to perform well
in a difficult environment. We grew
market share in the quarter, continued to transform our business and improved
customer service. I want to thank our
associates for their hard work and dedication."
Updated Fiscal 2009 Guidance
Based
on its year-to-date performance, the Company continues to expect sales to be down
approximately 9 percent for the year.
The Company updated its fiscal 2009 EPS guidance and now expects diluted
earnings per share from continuing operations of approximately $1.50, up 9.5 percent from fiscal 2008. style="mso-spacerun: yes"> On an adjusted basis, the Company now
expects diluted earnings per share from continuing operations of approximately
$1.55 for the year, a decline from fiscal 2008 of approximately 13 percent.
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 third quarter, the
Company operated a total of 2,242 retail stores, which included 1,975 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), 179 stores
in Canada, 77 stores in Mexico and 11 stores in 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.
To provide
clarity, internally and externally, about the Company's operating performance
for the recently completed fiscal quarter, the Company supplemented its
reporting with non-GAAP financial measures to reflect the impact of the store
rationalization charge, business rationalization charges and related
restructuring charges. The Company
believes that these non-GAAP financial measures better enable management and
investors to understand and analyze the Company's performance by providing them
with meaningful information relevant to events of unusual nature or
frequency. However, this supplemental
information should not be considered in isolation or as a substitute for the
related GAAP measures. A reconciliation
of the non-GAAP financial measures to the corresponding GAAP measures can be
found in the attached schedule.
Certain statements
contained herein constitute "forward-looking statements" as defined
in the Private Securities Litigation Reform Act of 1995. style="mso-spacerun: yes"> Forward-looking statements may relate to,
among other things, the demand for our products and services, net sales growth,
comparable store sales, store openings and closures, 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, commodity price inflation and deflation, implementation of
store 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 the Company's purchasing or customer credit
policies, the effect of accounting charges, the planned recapitalization of the
Company, timing of the completion of such recapitalization, the ability to
issue debt on terms and at rates acceptable to us and financial outlook. style="mso-spacerun: yes"> Such forward-looking statements are based on
currently available information and current assumptions, expectations and
projections about future events. You
are cautioned not to place undue reliance on our forward-looking
statements. Such 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. style="mso-spacerun: yes"> Such 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 February
1, 2009, and in Part II, Item 1A, "Risk Factors" and elsewhere in our
Quarterly Report on Form 10-Q for the fiscal quarter ended August 2, 2009. style="mso-spacerun: yes">
style='mso-bidi-font-size:11.0pt;font-family:"Roman 10cpi";mso-bidi-font-style:
italic'>Forward-looking statements speak only as of the date they are made, and
we do not undertake to update such 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 SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR
THE THREE MONTHS AND NINE MONTHS ENDED
NOVEMBER 1, 2009 AND NOVEMBER 2, 2008
(Unaudited) style="mso-spacerun: yes">
(Amounts in Millions
Except Per Share Data and as Otherwise Noted)
Three Months style="mso-spacerun: yes"> Nine Months
Ended % Increase style="mso-spacerun: yes"> Ended % Increase
11-1-09 11-2-08 style="mso-spacerun: yes"> (Decrease)
11-1-09 11-2-08 (Decrease)
NET SALES
$16,361 $17,784 style="mso-spacerun: yes"> (8.0)%
$51,607 $56,681 style="mso-spacerun: yes"> (9.0)%
Cost of Sales
10,800 11,790 style="mso-spacerun: yes"> (8.4)
34,208 37,651 style="mso-spacerun: yes"> (9.1)
GROSS PROFIT style="mso-spacerun: yes"> 5,561
5,994 (7.2)17,399
19,030 (8.6)
Operating
Expenses: style="mso-spacerun: yes">
Selling,
General
and
Administra-
tive style="mso-spacerun: yes"> 3,870 4,225 (8.4)12,033
13,595 (11.5)
Depreciation
and
Amortiza-
tion style="mso-spacerun: yes"> 428 446 (4.0) style="mso-spacerun: yes"> 1,290
1,342 (3.9)
Total
Operating
Expenses style="mso-spacerun: yes"> 4,298
4,671 (8.0)13,323
14,937 (10.8)
OPERATING
INCOME style="mso-spacerun: yes"> 1,263 1,323 (4.5) style="mso-spacerun: yes"> 4,076
4,093 (0.4)
Interest (Income)
Expense: style="mso-spacerun: yes">
Interest and
Investment
Income style="mso-spacerun: yes"> (4) (6) (33.3) style="mso-spacerun: yes"> (15) (13) 15.4
Interest
Expense style="mso-spacerun: yes"> 168 157 7.0 style="mso-spacerun: yes"> 515 485 6.2
Interest, net
164 151 8.6 500 style="mso-spacerun: yes"> 472 5.9
EARNINGS BEFORE
PROVISION FOR
INCOME TAXES1,099
1,172 (6.2) style="mso-spacerun: yes"> 3,576
3,621 (1.2)
Provision for
Income Taxes style="mso-spacerun: yes"> 410
416 style="mso-spacerun: yes"> (1.4) 1,257 1,307 style="mso-spacerun: yes"> (3.8)
NET EARNINGS$689
$756 (8.9)% style="mso-spacerun: yes"> $2,319
$2,314 0.2%
Weighted Average
Common Shares style="mso-spacerun: yes"> 1,682
1,681 0.1% style="mso-spacerun: yes"> 1,684
1,681 0.2%
BASIC EARNINGS
PER SHARE style="mso-spacerun: yes"> $0.41 $0.45 (8.9) style="mso-spacerun: yes"> $1.38
$1.38 -
Diluted Weighted
Average Common
Shares style="mso-spacerun: yes"> 1,693 1,687 0.4% style="mso-spacerun: yes"> 1,692
1,686 0.4%
DILUTED EARNINGS
PER SHARE style="mso-spacerun: yes"> $0.41 $0.45 (8.9) style="mso-spacerun: yes"> $1.37
$1.37 -
SELECTED Three
Months Nine Months
HIGHLIGHTS style="mso-spacerun: yes"> Ended % Increase
Ended % Increase
11-1-09 11-2-08 style="mso-spacerun: yes"> (Decrease)
11-1-09 11-2-08 style="mso-spacerun: yes"> (Decrease)
Number of
Customer
Transactions style="mso-spacerun: yes"> 314 315 (0.3)% style="mso-spacerun: yes"> 986 989 (0.3)%
Average Ticket
(actual) style="mso-spacerun: yes"> $51.89 $55.86 (7.1)$52.27
$56.97 (8.2) style="mso-spacerun: yes">
Weighted Average
Weekly Sales style="mso-spacerun: yes">
per Operating
Store (in
thousands) style="mso-spacerun: yes"> $558 $597 (6.5) style="mso-spacerun: yes"> $586 $640 (8.4) style="mso-spacerun: yes">
Square Footage
at End of Period style="mso-spacerun: yes"> 235
238 (1.3) style="mso-spacerun: yes"> 235 238 (1.3) style="mso-spacerun: yes">
Capital
Expenditures style="mso-spacerun: yes"> $215
$451 (52.3) style="mso-spacerun: yes"> $568
$1,411 (59.7) style="mso-spacerun: yes">
Depreciation and
Amortization (1)
$453 $476 (4.8)% $1,364$1,432
(4.7)%
(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 NOVEMBER 1,
2009, NOVEMBER 2, 2008 AND FEBRUARY 1, 2009
(Amounts in Millions)
11-1-09 style="mso-spacerun: yes"> 11-2-08 2-1-09
(Unaudited) style="mso-spacerun: yes"> (Unaudited) (Audited)
ASSETS style="mso-spacerun: yes">
Cash and Short-Term Investments style="mso-spacerun: yes"> $2,725 $874
$525
Receivables, net style="mso-spacerun: yes"> 1,188 style="mso-spacerun: yes"> 1,490 972
Merchandise
Inventories 10,817 style="mso-spacerun: yes"> 11,869 10,673
Other Current
Assets 1,169 style="mso-spacerun: yes"> 1,374 1,192 style="mso-spacerun: yes">
Total Current
Assets 15,899 style="mso-spacerun: yes"> 15,607 13,362
Property and
Equipment, net 25,581 style="mso-spacerun: yes"> 26,782 26,234
Goodwill style="mso-spacerun: yes"> 1,163 1,175
1,134
Other Assets style="mso-spacerun: yes"> 407 style="mso-spacerun: yes"> 598 434
TOTAL ASSETS style="mso-spacerun: yes"> $43,050 style="mso-spacerun: yes"> $44,162 $41,164
LIABILITIES AND
STOCKHOLDERS' EQUITY
Accounts Payable style="mso-spacerun: yes"> $5,829 style="mso-spacerun: yes"> $6,773 $4,822
Accrued Salaries and
Related Expenses 1,069 style="mso-spacerun: yes"> 1,044 1,129
Current Installments
of Long-Term Debt 1,769 style="mso-spacerun: yes"> 1,016 1,767
Other Current
Liabilities 3,788 style="mso-spacerun: yes"> 4,048 3,435
Total Current
Liabilities 12,455 style="mso-spacerun: yes"> 12,881 11,153
Long-Term Debt style="mso-spacerun: yes"> 8,656 style="mso-spacerun: yes"> 10,353 9,667
Other Long-Term
Liabilities 2,559 style="mso-spacerun: yes"> 2,532 2,567
Total
Liabilities
23,670 25,766 style="mso-spacerun: yes"> 23,387
Total Stockholders'
Equity 19,380
18,396 17,777 style="mso-spacerun: yes">
TOTAL LIABILITIES
AND STOCKHOLDERS'
EQUITY style="mso-spacerun: yes"> $43,050 style="mso-spacerun: yes"> $44,162 $41,164
THE
HOME DEPOT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS ITEMS
EXCLUDING CERTAIN ADJUSTMENTS (NON-GAAP)
FOR THE
THREE MONTHS AND NINE MONTHS ENDED
NOVEMBER 1, 2009 AND NOVEMBER 2,
2008
(Unaudited)
(Amounts
in Millions Except Per Share Data)
Three
Months Ended 11-1-09 Nine Months
Ended 11-1-09
Adjust- As Adjusted style="mso-spacerun: yes"> Adjust- As Adjusted
Actuals ments(1) (Non-GAAP)
Actuals ments(1) (Non-GAAP)
Net Sales $16,361 style="mso-spacerun: yes"> $-
$16,361 $51,607 style="mso-spacerun: yes"> $221
$51,386
Gross Profit 5,561 style="mso-spacerun: yes"> - 5,561 17,399 style="mso-spacerun: yes"> 28
17,371
Total
Operating
Expenses style="mso-spacerun: yes"> 4,298 9 4,28913,323 174 13,149
Operating
Income style="mso-spacerun: yes"> 1,263 (9) 1,272 style="mso-spacerun: yes"> 4,076
(146) 4,222
Net Earnings $689 style="mso-spacerun: yes"> $(6) $695 $2,319 style="mso-spacerun: yes"> $(90)
$2,409
Diluted
Earnings Per
Share style="mso-spacerun: yes"> $0.41 $- style="mso-spacerun: yes"> $0.41 $1.37 $(0.05) style="mso-spacerun: yes"> $1.42
Three
Months Ended 11-2-08 Nine Months Ended
11-2-08
Adjust- As Adjusted style="mso-spacerun: yes"> Adjust- As Adjusted
Actuals ments(1) (Non-GAAP)
Actuals ments(1) (Non-GAAP)
Net Sales $17,784 style="mso-spacerun: yes"> $-
$17,784 $56,681 style="mso-spacerun: yes"> $-
$56,681
Gross Profit 5,994 style="mso-spacerun: yes"> - 5,994 19,030 style="mso-spacerun: yes"> (10)
19,040
Total
Operating
Expenses style="mso-spacerun: yes"> 4,671 3 4,66814,937 554 14,383
Operating
Income style="mso-spacerun: yes"> 1,323 (3) 1,326 style="mso-spacerun: yes"> 4,093
(564) 4,657
Net Earnings $756 style="mso-spacerun: yes"> $(4) $760 $2,314$(355)
$2,669
Diluted
Earnings Per
Share style="mso-spacerun: yes"> $0.45 $- $0.45 style="mso-spacerun: yes"> $1.37
$(0.21) $1.58
(1) Adjustments are comprised of store rationalization charges
related to the closing of 15 stores and the removal of 50 stores from our
future growth pipeline, business rationalization charges related to the exit of
EXPO, THD Design Center, Yardbirds and HD Bath businesses, as well as net
sales, gross profit and operating expenses of those exited businesses during
the period from closing announcement to actual closing, and charges related to
restructuring of support functions.
FUENTE style="mso-spacerun: yes"> The Home Depot
