Dollar Tree Q4 Profit Down, But Adj. EPS Tops Estimates - Quick Facts

(RTTNews) - Dollar Tree Inc. (DLTR) reported that its fourth-quarter net income declined to $206.6 million or $1.00 per share from $213.0 million or $1.02 per share in the same quarter last year.

Excluding acquisition-related costs, net income increased approximately $26.0 million to $239.0 million and diluted earnings per share increased 13.7% to $1.16. Analysts polled by Thomson Reuters expected the company to report earnings of $1.15 per share for the quarter. Analysts' estimates typically exclude special items.

Consolidated net sales increased 10.8% to $2.48 billion from $2.23 billion in the prior year's fourth quarter. Wall Street expected revenues of $2.47 billion.

Consolidated same-store sales increased 5.6% on a constant currency basis, compared to a 1.2% increase in the prior-year period. Adjusted for the impact of Canadian currency fluctuations, the same-store sales increase was 5.5%.

The Company estimates consolidated net sales for the first quarter of 2015 to range from $2.15 billion to $2.20 billion, based on a low to mid single-digit increase in same-store sales and 6.9% square footage growth. Earnings per share, excluding acquisition-related costs, are expected to range from $0.69 to $0.74. This range includes a $0.01 per share non-recurring, non-cash charge related to a change in inventory accounting for Canadian operations. Analysts expect the company to report earnings of $0.77 per share and revenues of $2.21 billion for the first-quarter.

Consolidated net sales for the full year are estimated to range from $9.21 billion to $9.45 billion. This estimate is based on a low to low-mid single-digit increase in same-store sales, and 7.2% square footage growth. Fiscal year 2015 earnings per share, excluding acquisition-related costs, are expected to range from $3.30 to $3.50. Wall Street currently is looking for fiscal year 2015 earnings of $3.57 per share on annual revenues of $9.40 billion.

The company said it continues to make progress in its effort to obtain clearance from the Federal Trade Commission or "FTC" to complete the Company's pending acquisition of Family Dollar. The Company remains confident in its belief that the FTC will require the divestiture of no more than roughly 300 stores. Given the number of stores that the FTC continues to analyze, the Company now hopes to reach agreement with the FTC on the stores to be divested in early March and will work to close the acquisition by April 27, 2015.