Dollar Tree 2006 Annual Report Download - page 50

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First Second Third Fourth
Quarter(1) Quarter Quarter Quarter(2)
Fiscal 2006:
Net sales $856.5 $883.6 $910.4 $1,318.9
Gross profit 286.1 293.3 307.5 470.3
Operating income 53.5 48.2 53.5 155.6
Net income 32.9 29.0 32.5 97.6
Diluted net income per share 0.31 0.28 0.32 0.96
Stores open at end of quarter 3,119 3,156 3,192 3,219
Comparable store net sales change 4.0% 4.2% 4.0% 5.5%
Fiscal 2005:
Net sales $749.1 $769.0 $796.8 $1,079.0
Gross profit 254.2 261.5 276.3 380.4
Operating income 48.2 46.8 52.3 136.6
Net income 29.0 27.3 31.1 86.5
Diluted net income per share 0.26 0.25 0.29 0.81
Stores open at end of quarter 2,791 2,856 2,899 2,914
Comparable store net sales change (3.7%) (1.5%) (1.0%) 1.0%
(1) Easter was observed on April 16, 2006 and March 27, 2005.
(2) Fiscal 2006 contains 14 weeks ended February 3, 2007 while Fiscal 2005 contains 13 weeks ended January 28, 2006.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
48 DOLLAR TREE STORES, INC. • 2006 ANNUAL REPORT
of SKM Equity. John Megrue is also a principal mem-
ber of Apax Partners, L.P., which serves as the general
partner for SKM Investment. The $4.0 million invest-
ment in Ollie’s is accounted for under the cost method
of accounting and is included in “other assets” in the
accompanying consolidated balance sheets.
NOTE 12 – SUBSEQUENT EVENT
On March 29, 2007, the Company entered into an
agreement with a third party to repurchase approxi-
mately $150.0 million of the Company’s common
shares under an Accelerated Share Repurchase
Agreement. The entire $150.0 million was executed
under a “collared” agreement. Within two weeks of
the March 29, 2007 execution date, the Company
will receive the minimum number of shares. Up to
four months after the initial execution date, the
Company will receive additional shares from the third
party depending on the volume weighted average
price of the Company’s common shares during that
period, subject to the maximum share delivery
provisions of the agreement.
NOTE 13 – 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 2006 and
2005. The unaudited information has been prepared
on the same basis as the audited consolidated finan-
cial 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.