Dollar Tree 2008 Annual Report Download - page 50

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48
DOLLAR TREE, INC. • 2008 ANNUAL REPORT
Notes to Consolidated Financial Statements continued
Company’s operating results in 2006. This acquisition
is immaterial to the Company’s operations as a whole
and therefore no proforma disclosure of financial
information has been presented. The following table
summarizes the allocation of the purchase price to
the fair value of the assets acquired.
(in millions)
Inventory $22.1
Other current assets 0.1
Property and equipment 15.1
Goodwill 14.6
Other intangibles 2.2
$54.1
NOTE 11 – INVESTMENT
The Company has a $4.0 million investment which
represents a 10.5% fully diluted interest in Ollie's
Holdings, Inc. (Ollie's), a multi-price point discount
retailer located in the mid-Atlantic region. In addi-
tion, the SKM Equity Fund III, L.P. (SKM Equity)
and SKM Investment Fund (SKM Investment)
acquired a combined fully diluted interest in Ollie's
of 53.1%. One of the Company's current directors,
Thomas Saunders, is a principal member of SKM
Partners, L.L.C., which serves as the general partner of
SKM Equity. The $4.0 million investment in Ollie's is
accounted for under the cost method and is included
in "other assets" in the accompanying consolidated bal-
ance sheets.
NOTE 12 – QUARTERLY FINANCIAL INFORMATION
(UNAUDITED)
The following table sets forth certain items from the
Company's unaudited consolidated statements of
operations for each quarter of fiscal year 2008 and
2007. The unaudited information has been prepared
on the same basis as the audited consolidated financial
statements appearing elsewhere in this report and
includes all adjustments, consisting only of normal
recurring adjustments, which management considers
necessary for a fair presentation of the financial data
shown. The operating results for any quarter are not
necessarily indicative of results for a full year or for
any future period.
First Second Third Fourth
Quarter(1) Quarter Quarter Quarter
Fiscal 2008:
Net sales $1,051.3 $1,093.1 $ 1,114.0 $ 1,386.5
Gross profit $356.5 $ 363.1 $379.4 $ 493.2
Operating income $ 69.7 $ 61.6 $ 69.3 $ 165.2
Net income $ 43.6 $ 37.6 $ 43.1 $ 105.2
Diluted net income per share $0.48 $0.42 $0.47 $ 1.15
Stores open at end of quarter 3,474 3,517 3,572 3,591
Comparable store net sales change 2.1% 6.5% 6.2% 2.2%
Fiscal 2007:
Net sales $ 975.0 $ 971.2 $ 997.8 $1,298.6
Gross profit $ 325.3 $ 326.6 $ 343.9 $ 465.3
Operating income $ 62.3 $ 53.4 $ 60.2 $ 154.4
Net income $ 38.1 $ 32.6 $ 35.9 $ 94.7
Diluted net income per share $ 0.38 $ 0.33 $ 0.38 $ 1.04
Stores open at end of quarter 3,280 3,334 3,401 3,411
Comparable store net sales change 5.8% 4.4% 1.9% (0.8%)
(1) Easter was observed on March 23, 2008 and April 8, 2007.