Family Dollar Stores Inc. (FDO, Financial) filed Quarterly Report for the period ended 2011-02-26.
Family Dollar Stores Inc has a market cap of $6.56 billion; its shares were traded at around $51.94 with a P/E ratio of 18 and P/S ratio of 0.8. The dividend yield of Family Dollar Stores Inc stocks is 1.4%. Family Dollar Stores Inc had an annual average earning growth of 8.1% over the past 10 years. GuruFocus rated Family Dollar Stores Inc the business predictability rank of 4-star.
On January 28, 2011, we issued $300 million of 5.00% unsecured senior notes due February 1, 2021 (the 2021 Notes), through a public offering. Our proceeds were approximately $298.5 million and were net of an issuance discount of $1.5 million. In addition, we incurred issuance costs of approximately $3.3 million. Both the discount and issuance costs are being amortized to interest expense over the term of the 2021 Notes. Interest on the 2021 Notes is payable semi-annually in arrears on the 1st day of February and August of each year, commencing on August 1, 2011. The 2021 Notes rank pari passu in right of payment with our other unsecured senior indebtedness and will be senior in right of payment to any subordinated indebtedness. We may redeem the 2021 Notes in whole at any time or in part from time to time, at our option, subject to a make-whole premium. In addition, upon the occurrence of certain change of control triggering events, we may be required to repurchase the 2021 Notes, at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the date of repurchase. The proceeds of the issuance are available to fund our $750 million share repurchase program and for general corporate purposes.
Capital expenditures for the first half of fiscal 2011 were $139.0 million compared with $82.9 million for the first half of fiscal 2010. The increase in capital expenditures during the first half of fiscal 2011 was due primarily to the investments we are making related to our comprehensive store renovation program and new store growth. We also purchased more of our existing stores from our landlords during the first half of fiscal 2011 as compared to the first half of fiscal 2010. Capital expenditures for fiscal 2011 are expected to be between $300 and $350 million and relate primarily to the investments we are making to drive revenue growth, including the acceleration of our new store growth and the launch of our comprehensive store renovation program. The remaining expected expenditures relate primarily to technology-related projects and costs to begin construction of our tenth distribution center.
On November 18, 2009, we announced that the Board of Directors authorized the purchase of up to $400 million of our outstanding common stock from time to time as market conditions warrant. On September 29, 2010, we announced that the Board of Directors authorized the purchase of up to $750 million of our outstanding common stock. The remaining amount under the previous authorization was cancelled. During the first half of fiscal 2011, we purchased 8.9 million shares of our common stock at a cost of $408.0 million, including the accelerated share repurchase agreement we entered into during the first quarter of fiscal 2011. During the first half of fiscal 2010, we purchased 3.8 million shares at a cost of $116.0 million. See Note 4 to the Consolidated Condensed Financial Statements in this Report for more information on our share repurchases. As of February 26, 2011, we had outstanding authorizations to purchase a total of $349.8 million of our common stock.
During the first half of fiscal 2011, we had a cash outflow of $259.9 million compared to a cash outflow of $113.9 million in the first half of fiscal 2010. The change was due primarily to a net increase in purchases of investment securities during the first half of fiscal 2011 related to the proceeds of the issuance of $300 million of senior notes during the second quarter of 2011. Additionally, during the first half of fiscal 2011, we had capital expenditures totaling $139.0 million, compared to $82.9 million in the first half of fiscal 2010 as a result of accelerating our new store growth and continuing to execute our comprehensive store renovation program.
During the first half of fiscal 2011, we had a cash outflow from financing activities of $151.8 million compared to a cash outflow of $139.0 million during the first half of fiscal 2010. During the first half of fiscal 2011, we issued $300 million of 5.00% unsecured senior notes, creating a significant cash inflow from financing activities as compared to the first half of fiscal 2010. This cash inflow was offset by increased share repurchases of $242.0 million in the first half of fiscal 2011 as compared to the first half of fiscal 2010. We purchased $408.0 million of our common stock during the first half of fiscal 2011 compared to $166.0 million in the first half of fiscal 2010.
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Family Dollar Stores Inc has a market cap of $6.56 billion; its shares were traded at around $51.94 with a P/E ratio of 18 and P/S ratio of 0.8. The dividend yield of Family Dollar Stores Inc stocks is 1.4%. Family Dollar Stores Inc had an annual average earning growth of 8.1% over the past 10 years. GuruFocus rated Family Dollar Stores Inc the business predictability rank of 4-star.
Highlight of Business Operations:
On November 17, 2010, we also amended our existing five-year $350 million unsecured revolving credit facility maturing on August 24, 2011, and terminated our 364-day $250 million unsecured revolving credit facility maturing on December 15, 2010. The amendment of the five-year facility reduces the borrowing capacity from $350 million to $200 million and limits its usage to stand-by letters of credit only ($137.0 million as of February 26, 2011). The amendment also eliminates our ability to extend the facility beyond its current maturity date of August 24, 2011, and removes all subsidiary co-borrowers and guarantors.On January 28, 2011, we issued $300 million of 5.00% unsecured senior notes due February 1, 2021 (the 2021 Notes), through a public offering. Our proceeds were approximately $298.5 million and were net of an issuance discount of $1.5 million. In addition, we incurred issuance costs of approximately $3.3 million. Both the discount and issuance costs are being amortized to interest expense over the term of the 2021 Notes. Interest on the 2021 Notes is payable semi-annually in arrears on the 1st day of February and August of each year, commencing on August 1, 2011. The 2021 Notes rank pari passu in right of payment with our other unsecured senior indebtedness and will be senior in right of payment to any subordinated indebtedness. We may redeem the 2021 Notes in whole at any time or in part from time to time, at our option, subject to a make-whole premium. In addition, upon the occurrence of certain change of control triggering events, we may be required to repurchase the 2021 Notes, at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the date of repurchase. The proceeds of the issuance are available to fund our $750 million share repurchase program and for general corporate purposes.
Capital expenditures for the first half of fiscal 2011 were $139.0 million compared with $82.9 million for the first half of fiscal 2010. The increase in capital expenditures during the first half of fiscal 2011 was due primarily to the investments we are making related to our comprehensive store renovation program and new store growth. We also purchased more of our existing stores from our landlords during the first half of fiscal 2011 as compared to the first half of fiscal 2010. Capital expenditures for fiscal 2011 are expected to be between $300 and $350 million and relate primarily to the investments we are making to drive revenue growth, including the acceleration of our new store growth and the launch of our comprehensive store renovation program. The remaining expected expenditures relate primarily to technology-related projects and costs to begin construction of our tenth distribution center.
On November 18, 2009, we announced that the Board of Directors authorized the purchase of up to $400 million of our outstanding common stock from time to time as market conditions warrant. On September 29, 2010, we announced that the Board of Directors authorized the purchase of up to $750 million of our outstanding common stock. The remaining amount under the previous authorization was cancelled. During the first half of fiscal 2011, we purchased 8.9 million shares of our common stock at a cost of $408.0 million, including the accelerated share repurchase agreement we entered into during the first quarter of fiscal 2011. During the first half of fiscal 2010, we purchased 3.8 million shares at a cost of $116.0 million. See Note 4 to the Consolidated Condensed Financial Statements in this Report for more information on our share repurchases. As of February 26, 2011, we had outstanding authorizations to purchase a total of $349.8 million of our common stock.
During the first half of fiscal 2011, we had a cash outflow of $259.9 million compared to a cash outflow of $113.9 million in the first half of fiscal 2010. The change was due primarily to a net increase in purchases of investment securities during the first half of fiscal 2011 related to the proceeds of the issuance of $300 million of senior notes during the second quarter of 2011. Additionally, during the first half of fiscal 2011, we had capital expenditures totaling $139.0 million, compared to $82.9 million in the first half of fiscal 2010 as a result of accelerating our new store growth and continuing to execute our comprehensive store renovation program.
During the first half of fiscal 2011, we had a cash outflow from financing activities of $151.8 million compared to a cash outflow of $139.0 million during the first half of fiscal 2010. During the first half of fiscal 2011, we issued $300 million of 5.00% unsecured senior notes, creating a significant cash inflow from financing activities as compared to the first half of fiscal 2010. This cash inflow was offset by increased share repurchases of $242.0 million in the first half of fiscal 2011 as compared to the first half of fiscal 2010. We purchased $408.0 million of our common stock during the first half of fiscal 2011 compared to $166.0 million in the first half of fiscal 2010.
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