Dollar General 2006 Annual Report Download - page 30

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Results of Operations
The following discussion of our financial performance is based on the Consolidated
Financial Statements set forth herein. The following table contains results of operations data for
the 2006, 2005 and 2004 fiscal years, and the dollar and percentage variances among those years.
2006 vs. 2005 2005 vs. 2004
(amounts in millions, excluding
per share amounts) 2006 (a) 2005 (b) 2004
$
change
%
change
$
change
%
change
Net sales by category:
Highly consumable $ 6,022.0 $ 5,606.5 $ 4,825.1 $ 415.5 7.4% $ 781.4 16.2%
% of net sales 65.67% 65.33% 62.98%
Seasonal 1,510.0 1,348.8 1,264.0
161.2 12.0 84.8 6.7
% of net sales 16.47% 15.72% 16.50%
Home products 914.4 907.8 879.5 6.5 0.7 28.4 3.2
% of net sales 9.97% 10.58% 11.48%
Basic clothing 723.5 719.2 692.4 4.3 0.6 26.8 3.9
% of net sales 7.89% 8.38% 9.04%
Net sales $ 9,169.8 $ 8,582.2 $ 7,660.9 $ 587.6 6.8% $ 921.3 12.0%
Cost of goods sold 6,801.6 6,117.4 5,397.7
684.2 11.2 719.7 13.3
% of net sales 74.17% 71.28% 70.46%
Gross profit 2,368.2 2,464.8 2,263.2
(96.6) (3.9) 201.6 8.9
% of net sales 25.83% 28.72% 29.54%
Selling, general and administrative
expenses 2,119.9 1,903.0 1,706.2
217.0 11.4 196.7 11.5
% of net sales 23.12% 22.17% 22.27%
Operating profit 248.3 561.9 557.0
(313.6) (55.8) 4.9 0.9
% of net sales 2.71% 6.55% 7.27%
Interest income (7.0) (9.0) (6.6)
2.0 (22.2) (2.4) 36.9
% of net sales (0.08)% (0.10)% (0.09)%
Interest expense 34.9 26.2 28.8
8.7 33.1 (2.6) (8.9)
% of net sales 0.38% 0.31% 0.38%
Income before income taxes 220.4 544.6 534.8
(324.3) (59.5) 9.9 1.8
% of net sales 2.40% 6.35% 6.98%
Income taxes 82.4 194.5 190.6
(112.1) (57.6) 3.9 2.1
% of net sales 0.90% 2.27% 2.49%
Net income $ 137.9 $ 350.2 $ 344.2 $ (212.2) (60.6)% $ 6.0 1.7%
% of net sales 1.50% 4.08% 4.49%
Diluted earnings per share $ 0.44
$ 1.08 $ 1.04
$ (0.64) (59.3)% $ 0.04 3.8%
Weighted average diluted shares 313.5 324.1 332.1
(10.6) (3.3) (7.9) (2.4)
(a) Includes the impacts of certain strategic initiatives as more fully described in the “Executive Overview” above.
(b) The fiscal year ended February 3, 2006 was comprised of 53 weeks.
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