BENTONVILLE, Ark., Feb. 17 -- Wal-Mart Stores, Inc. (NYSE: WMT) reported record fourth quarter sales and earnings for the quarter ended January 31, 2005. Net sales were $82.2 billion, an increase of 10.4 percent over the fourth quarter of fiscal 2004. Income from continuing operations for the quarter was $3.2 billion, an increase of 16.2 percent from $2.7 billion in the fourth quarter of fiscal 2004. Earnings per share from continuing operations were $0.75, up from $0.63 per share in the same prior year quarter.
Net sales for the year ended January 31, 2005, were $285.2 billion, an increase of 11.3 percent over the year ended January 31, 2004. Income from continuing operations for fiscal 2005 increased 15.9 percent to a record $10.3 billion, up from $8.9 billion in fiscal 2004. Earnings per share from continuing operations for the year ended January 31, 2005, were $2.41, up from $2.03 in the prior year.
Lee Scott, President and CEO said, "In the year just completed, we added almost $29 billion in sales and topped $10 billion in net income for the first time in our history. It was a solid performance, but we can do better. With the help of our Associates, we can look forward to even better results in the current year."
Net sales were as follows (dollars in billions): Quarter Ended January 31, Year Ended January 31, Percent Percent 2005 2004 Change 2005 2004 Change Wal-Mart Stores $55.452 $50.646 9.5% $191.826 $174.220 10.1% SAM'S CLUB 9.980 9.555 4.4% 37.119 34.537 7.5% International 16.784 14.293 17.4% 56.277 47.572 18.3% Total Company $82.216 $74.494 10.4% $285.222 $256.329 11.3%
Total U.S. comparable sales for the fourth quarter of fiscal 2005 increased 1.5 percent, which is represented by a 1.4 percent comp increase for Wal-Mart Stores and a 2.0 percent comp increase for SAM'S CLUB. Total U.S. comparable sales for fiscal 2005 were up 3.3 percent, which is comprised of a 2.9 percent comp increase for Wal-Mart Stores and a 5.8 percent comp increase for SAM'S CLUB.
Wal-Mart Stores Segment:
For the fourth quarter of fiscal 2005, the Wal-Mart Stores segment, including Supercenters and Neighborhood Markets, had operating income (income from continuing operations before unallocated corporate expenses, net interest expense, income taxes and minority interest) of $4.242 billion, an increase of 9.3 percent compared with $3.880 billion in the fourth quarter of fiscal 2004.
For fiscal 2005, the Wal-Mart Stores segment had operating income of $14.163 billion, an increase of 9.7 percent as compared with operating income of $12.916 billion in fiscal 2004.
SAM'S CLUB Segment:
The SAM'S CLUB segment had operating income for the fourth quarter of fiscal 2005 of $355 million, an increase of 3.5 percent compared with $343 million in the fourth quarter of fiscal 2004.
For fiscal 2005, the SAM'S CLUB segment had operating income of $1.280 billion, an increase of 13.7 percent as compared with operating income of $1.126 billion in fiscal 2004.
The International segment had operating income of $978 million for the most recent quarter, an increase of 13.5 percent compared with $862 million in the fourth quarter of fiscal 2004.
The International segment had operating income of $2.988 billion for fiscal 2005, an increase of 26.1 percent compared with $2.370 billion for fiscal 2004.
After this earnings release has been furnished to the SEC, a pre-recorded call offering additional comments on the quarter will be available to all investors. You may listen to this call by dialing 203-369-1090. The information included in this release and our pre-recorded phone call will be available on our web site at http://www.walmartstores.com, news, news releases, earnings and dividends.
Wal-Mart Stores, Inc. operates Wal-Mart Stores, Supercenters, Neighborhood Markets and SAM'S CLUB locations in the United States. Internationally, the Company operates in Argentina, Brazil, Canada, China, Germany, Japan, Mexico, Puerto Rico, South Korea and the United Kingdom. The Company's securities are listed on the New York and Pacific stock exchanges under the symbol WMT. More information about Wal-Mart can be found by visiting http://www.walmartfacts.com. Online merchandise sales are available at http://www.walmart.com.
This release contains a statement as to the view of our Chief Executive Officer regarding the balance of fiscal 2006 that Wal-Mart believes is a "forward-looking statement" within the meaning of the Private Securities Litigation Reform Act of 1995, and intended to enjoy the protection of the safe harbor for forward-looking statements provided by that Act. This forward-looking statement is subject to risks, uncertainties and other factors, domestically and internationally, including the cost of goods, competitive pressures, geopolitical conditions, inflation, consumer spending patterns and debt levels, currency exchange fluctuations, trade restrictions, changes in tariff and freight rates, changes in the cost of energy, labor and insurance, interest rate fluctuations and other capital market conditions and other risks. We discuss certain of these factors more fully in other of our filings with the SEC, including our last Annual Report on Form 10-K filed with the SEC, and this release should be read in conjunction with that Annual Report on Form 10-K, and together with all our other filings, including current reports on Form 8-K, made with the SEC through the date of this report. We urge you to consider all of these risks, uncertainties and other factors carefully in evaluating the forward-looking statement contained in this release. As a result of these matters, including changes in facts, assumptions not being realized or other circumstances, our actual results may differ materially from historical results or from anticipated results implied in the forward-looking statement contained in this release. That forward- looking statement is made only as of the date of this report and we undertake no obligation to update it to reflect subsequent events or circumstances.
WAL-MART STORES, INC. Consolidated Statements of Income (Unaudited) (Amounts in millions except per share data) Three Months Ended Year Ended January 31, January 31, 2005 2004 2005 2004 Revenues: Net sales $82,216 $74,494 $285,222 $256,329 Other income, net 802 696 2,967 2,352 83,018 75,190 288,189 258,681 Costs and expenses: Cost of sales 63,723 58,239 219,793 198,747 Operating, selling, general and administrative expenses 13,997 12,205 51,305 44,909 Operating income 5,298 4,746 17,091 15,025 Interest: Debt 284 217 934 729 Capital leases 65 65 253 267 Interest income (52) (81) (201) (164) Interest, net 297 201 986 832 Income from continuing operations before income taxes and minority interest 5,001 4,545 16,105 14,193 Provision for income taxes 1,735 1,741 5,589 5,118 Income from continuing operations before minority interest 3,266 2,804 10,516 9,075 Minority interest (102) (82) (249) (214) Income from continuing operations 3,164 2,722 10,267 8,861 Income from discontinued operation, net of tax --- --- --- 193 Net income $3,164 $2,722 $10,267 $9,054 Basic net income per common share: Net income per common share from continuing operations $0.75 $0.63 $2.41 $2.03 Net income per common share from discontinued operation --- --- --- 0.05 Basic net income per common share $0.75 $0.63 $2.41 $2.08 Diluted net income per common share: Net income per common share from continuing operations $0.75 $0.63 $2.41 $2.03 Net income per common share from discontinued operation --- --- --- 0.04 Diluted net income per common share $0.75 $0.63 $2.41 $2.07 Weighted-average number of common shares: Basic 4,235 4,325 4,259 4,363 Diluted 4,242 4,334 4,266 4,373
Certain reclassifications have been made to the prior periods to conform to the current presentation.
WAL-MART STORES, INC. Condensed Consolidated Balance Sheets (Unaudited) (Amounts in millions) SUBJECT TO RECLASSIFICATION January 31, January 31, 2005 2004 ASSETS Cash and cash equivalents $5,488 $5,199 Receivables 1,715 1,254 Inventories 29,447 26,612 Prepaid expenses and other 1,814 1,356 Total current assets 38,464 34,421 Property, plant and equipment, at cost 84,473 72,454 Less accumulated depreciation (18,637) (15,684) Property, plant and equipment, net 65,836 56,770 Property under capital leases 4,997 4,286 Less accumulated amortization (1,838) (1,673) Property under capital leases, net 3,159 2,613 Goodwill 10,803 9,882 Other assets and deferred charges 2,362 2,079 Total assets $120,624 $105,765 LIABILITIES AND SHAREHOLDERS' EQUITY Commercial paper $3,812 $3,267 Accounts payable 22,099 19,785 Accrued liabilities 12,155 10,671 Accrued income taxes 1,224 1,377 Long-term debt due within one year 3,759 2,904 Obligations under capital leases due within one year 210 196 Total current liabilities 43,259 38,200 Long-term debt 20,087 17,102 Long-term obligations under capital leases 3,582 2,997 Deferred income taxes and other 2,977 2,359 Minority interest 1,502 1,484 Common stock and capital in excess of par value 2,848 2,566 Retained earnings 43,854 40,206 Other accumulated comprehensive income 2,515 851 Total shareholders' equity 49,217 43,623 Total liabilities and shareholders' equity $120,624 $105,765
Certain reclassifications have been made to the prior period to conform to the current presentation.
WAL-MART STORES, INC. Condensed Consolidated Statements of Cash Flows (Unaudited) (Amounts in millions) SUBJECT TO RECLASSIFICATION Year Ended January 31, 2005 2004 Cash flows from operating activities: Income from continuing operations $10,267 $8,861 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 4,630 3,852 Other operating activities 473 350 Changes in certain assets and liabilities, net of effects of acquisitions: Decrease (increase) in accounts receivable (304) 373 Increase in inventories (2,635) (1,973) Increase in accounts payable 1,694 2,587 Increase in accrued liabilities 919 1,896 Net cash provided by operating activities of continuing operations 15,044 15,946 Net cash provided by operating activities of discontinued operation --- 50 Net cash provided by operating activities 15,044 15,996 Cash flows from investing activities: Payments for property, plant and equipment (12,893) (10,308) Disposal of assets 953 481 Proceeds from sale of McLane --- 1,500 Investment in international operations (315) (38) Other investing activities (96) 78 Net cash used in investing activities of continuing operations (12,351) (8,287) Net cash used in investing activities of discontinued operation --- (25) Net cash used in investing activities (12,351) (8,312) Cash flows from financing activities: Increase (decrease) in commercial paper 544 (812) Proceeds from issuance of long-term debt 5,832 5,599 Dividends paid (2,214) (1,569) Payment of long-term debt (2,131) (3,541) Purchase of Company stock (4,549) (5,046) Other financing activities (91) (194) Net cash used in financing activities (2,609) (5,563) Effect of exchange rates on cash 205 320 Net increase in cash and cash equivalents 289 2,441 Cash and cash equivalents at beginning of year * 5,199 2,758 Cash and cash equivalents at end of period $5,488 $5,199 * Includes cash and cash equivalents of discontinued operation of $22 million at January 31, 2003.
Certain reclassifications have been made to the prior period to conform to the current presentation.
SOURCE Wal-Mart Stores, Inc.
CONTACT: investor relations, Jay Fitzsimmons, +1-479-273-6445, or Pauline Tureman, +1-479-277-9558, or Investor Relations, +1-479-273-8446, or media relations, Gus Whitcomb, +1-479-273-4314, or Pre-recorded Conference Call, +1-203-369-1090, all of Wal-Mart Stores, Inc.
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