Board of Directors Authorizes the Repurchase of up to
Sales for the quarter increased 1.8 percent to
"Our fourth quarter results, including sales and earnings that exceeded our guidance, suggest the worst of the economic cycle is likely behind us," commented
"Our advancing customer service scores, driven by our knowledgeable and engaged workforce, have been a key factor in
During the quarter, the company repurchased
During the quarter,
A conference call to discuss fourth quarter 2009 operating results is scheduled for today (
Lowe's Business Outlook
First Quarter 2010 (comparisons to first quarter 2009)
-- The company expects to open approximately 11 new stores reflecting
square footage growth of approximately 3 percent
-- Total sales are expected to increase 1 to 3 percent
-- The company expects comparable store sales to range between a 2 percent
decline and flat
-- Earnings before interest and taxes as a percentage of sales (operating
margin) is expected to decline 90 to 100 basis points
-- Depreciation expense is expected to be approximately $400 million
-- Diluted earnings per share of $0.27 to $0.29 are expected
-- Lowe's first quarter ends on April 30, 2010 with operating results to be
publicly released on Monday, May 17, 2010
Fiscal Year 2010 (comparisons to fiscal year 2009)
-- The company expects to open 40 to 45 stores in 2010 reflecting total
square footage growth of approximately 2 percent
-- Total sales are expected to increase 4 to 6 percent
-- The company expects comparable store sales to increase 1 to 3 percent
-- Earnings before interest and taxes as a percentage of sales (operating
margin) is expected to increase 40 to 50 basis points
-- Depreciation expense is expected to be approximately $1.62 billion
-- Diluted earnings per share of $1.30 to $1.42 are expected for the fiscal
year ending January 28, 2011
Disclosure Regarding Forward-Looking Statements
This news release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Statements of the company's expectations for sales growth, comparable store sales, earnings and performance, capital expenditures, store openings, the housing market, the home improvement industry, demand for services, share repurchases and any statement of an assumption underlying any of the foregoing, constitute "forward-looking statements" under the Act. Although the company believes that the expectations, opinions, projections, and comments reflected in its forward-looking statements are reasonable, it can give no assurance that such statements will prove to be correct. A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results expressed or implied by our forward-looking statements including, but not limited to, changes in general economic conditions, such as rising unemployment, interest rate and currency fluctuations, higher fuel and other energy costs, slower growth in personal income, changes in consumer spending, the availability and increasing regulation of consumer credit and mortgage financing, changes in the rate of housing turnover, inflation or deflation of commodity prices and other factors which can negatively affect our customers, as well as our ability to: (i) respond to adverse trends in the housing industry and the level of repairs, remodeling, and additions to existing homes, as well as general reduction in commercial building activity; (ii) secure, develop, and otherwise implement new technologies and processes designed to enhance our efficiency and competitiveness; (iii) attract, train, and retain highly-qualified associates; (iv) locate, secure, and successfully develop new sites for store development particularly in major metropolitan markets; (v) respond to fluctuations in the prices and availability of services, supplies, and products; (vi) respond to the growth and impact of competition; (vii) address legislative and regulatory developments; and (viii) respond to unanticipated weather conditions that could adversely affect sales. In addition, we could experience impairment losses if the actual results of our operating stores are not consistent with the assumptions and judgments we have made in estimating future cash flows and determining asset fair values. For more information about these and other risks and uncertainties that we are exposed to, you should read the "Risk Factors" and "Critical Accounting Policies and Estimates" included in our Annual Report on Form 10-K to the
The forward-looking statements contained in this news release speak only as of the date of this release and the company does not assume any obligation to update any such statements.
With fiscal year 2009 sales of
Lowe's Companies , Inc. Consolidated Statements of Current and Retained Earnings (Unaudited) In Millions, Except Per Share Data Three Months Ended Years Ended January 29, 2010 January 30, 2009 January 29, 2010 January 30, 2009 Current Amount Percent Amount Percent Amount Percent Amount Percent Earnings Net sales $ 10,168 100.00 $ 9,984 100.00 $ 47,220 100.00 $ 48,230 100.00 Cost of sales 6,614 65.05 6,616 66.27 30,757 65.14 31,729 65.79 Gross margin 3,554 34.95 3,368 33.73 16,463 34.86 16,501 34.21 Expenses: Selling, general and 2,763 27.18 2,610 26.15 11,688 24.75 11,074 22.96 administrative Store opening 12 0.11 32 0.32 49 0.10 102 0.21 costs Depreciation 401 3.95 397 3.97 1,614 3.42 1,539 3.19 Interest - net 56 0.55 70 0.70 287 0.61 280 0.58 Total expenses 3,232 31.79 3,109 31.14 13,638 28.88 12,995 26.94 Pre-tax 322 3.16 259 2.59 2,825 5.98 3,506 7.27 earnings Income tax 117 1.14 97 0.97 1,042 2.20 1,311 2.72 provision Net earnings $ 205 2.02 $ 162 1.62 $ 1,783 3.78 $ 2,195 4.55 Weighted average common shares 1,455 1,462 1,462 1,457 outstanding - basic Basic earnings per common $ 0.14 $ 0.11 $ 1.21 $ 1.50 share Weighted average common shares 1,458 1,463 1,464 1,468 outstanding - diluted Diluted earnings per $ 0.14 $ 0.11 $ 1.21 $ 1.49 common share Cash dividends $ 0.090 $ 0.085 $ 0.355 $ 0.335 per share Retained Earnings Balance at beginning of $ 18,236 $ 17,012 $ 17,049 $ 15,345 period Net earnings 205 162 1,783 2,195 Cash dividends (131 ) (125 ) (522 ) (491 ) Share (3 ) - (3 ) - repurchases Balance at end $ 18,307 $ 17,049 $ 18,307 $ 17,049 of period
Lowe's Companies , Inc. Consolidated Balance Sheets In Millions, Except Par Value Data (Unaudited) January 29, 2010 January 30, 2009 Assets Current assets: Cash and cash equivalents $ 632 $ 245 Short-term investments 425 416 Merchandise inventory - net 8,249 8,209 Deferred income taxes - net 208 105 Other current assets 218 215 Total current assets 9,732 9,190 Property, less accumulated 22,499 22,722 depreciation Long-term investments 277 253 Other assets 497 460 Total assets $ 33,005 $ 32,625 Liabilities and Shareholders' Equity Current liabilities: Short-term borrowings $ - $ 987 Current maturities of long-term debt 552 34 Accounts payable 4,287 4,109 Accrued compensation and employee 577 434 benefits Deferred revenue 683 674 Other current liabilities 1,256 1,322 Total current liabilities 7,355 7,560 Long-term debt, excluding current 4,528 5,039 maturities Deferred income taxes - net 598 599 Other liabilities 1,455 1,372 Total liabilities 13,936 14,570 Shareholders' equity: Preferred stock - $5 par value, none - - issued Common stock -$.50 par value; Shares issued and outstanding January 29, 2010 1,459 January 30, 2009 1,470 729 735 Capital in excess of par value 6 277 Retained earnings 18,307 17,049 Accumulated other comprehensive 27 (6 ) income (loss) Total shareholders' equity 19,069 18,055 Total liabilities and shareholders' $ 33,005 $ 32,625 equity
Lowe's Companies , Inc. Consolidated Statements of Cash Flows (Unaudited) In Millions Years Ended January 29, 2010 January 30, 2009 Cash flows from operating activities: Net earnings $ 1,783 $ 2,195 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 1,733 1,667 Deferred income taxes (123 ) 69 Loss on property and other assets - net 193 89 Loss on redemption of long-term debt - 8 Share-based payment expense 102 95 Net changes in operating assets and liabilities: Merchandise inventory - net (28 ) (611 ) Other operating assets 7 31 Accounts payable 175 402 Other operating liabilities 212 177 Net cash provided by operating activities 4,054 4,122 Cash flows from investing activities: Purchases of short-term investments (344 ) (210 ) Proceeds from sale/maturity of short-term 624 431 investments Purchases of long-term investments (1,483 ) (1,148 ) Proceeds from sale/maturity of long-term 1,160 994 investments Increase in other long-term assets (62 ) (56 ) Property acquired (1,799 ) (3,266 ) Proceeds from sale of property and other 18 29 long-term assets Net cash used in investing activities (1,886 ) (3,226 ) Cash flows from financing activities: Net decrease in short-term borrowings (1,007 ) (57 ) Proceeds from issuance of long-term debt 10 15 Repayment of long-term debt (37 ) (573 ) Proceeds from issuance of common stock under 75 76 employee stock purchase plan Proceeds from issuance of common stock from 53 98 stock options exercised Cash dividend payments (391 ) (491 ) Repurchases of common stock (504 ) (8 ) Excess tax benefits of share-based payments - 1 Net cash used in financing activities (1,801 ) (939 ) Effect of exchange rate changes on cash 20 7 Net increase (decrease) in cash and cash 387 (36 ) equivalents Cash and cash equivalents, beginning of 245 281 period Cash and cash equivalents, end of period $ 632 $ 245
Source: Lowe's Companies , Inc.