ATLANTA - The Home Depot®, the world's largest home improvement retailer, today reported sales of $19.1 billion for the first quarter of fiscal 2013, a 7.4 percent increase from the first quarter of fiscal 2012. Due to the 14th week in the fourth quarter of fiscal 2012, first quarter sales benefited from a seasonal timing change that added approximately $574 million to sales. On a like for like basis, comparable store sales for the first quarter of fiscal 2013 were positive 4.3 percent, and comp sales for U.S. stores were positive 4.8 percent.

Net earnings for the first quarter were $1.2 billion, or $0.83 per diluted share, compared with net earnings of $1.0 billion, or $0.68 per diluted share, in the same period of fiscal 2012. For the first quarter of fiscal 2013, diluted earnings per share increased 22.1 percent from the same period in the prior year.

"In the first quarter, we saw less favorable weather compared to last year, but we continue to see benefit from a recovering housing market that drove a stronger-than-expected start to the year for our business," said Frank Blake, chairman & CEO. "I would like to thank our associates for their hard work and commitment to our customers."

Updated Fiscal 2013 Guidance

Based on its year-to-date performance and outlook for the balance of the year, the Company raised its fiscal 2013 sales guidance and now expects sales to be up approximately 2.8 percent with comparable store sales up approximately 4.0 percent for the year. The Company raised its fiscal 2013 diluted earnings-per-share guidance and now expects diluted earnings per share to be up approximately 17 percent to $3.52 for the year. The Company's fiscal 2013 sales and earnings-per-share guidance is based on a 52-week year compared to fiscal 2012, a 53-week year.

The Company's earnings-per-share guidance includes the benefit of its year-to-date share repurchases and intent to repurchase $4.4 billion in additional shares over the remainder of the year, which will bring the total dollar amount of shares repurchased to $6.5 billion for the year.

The Home Depot will conduct a conference call today at 9 a.m. ET to discuss information included in this news release and related matters. The conference call will be available in its entirety through a webcast and replay at earnings.homedepot.com.

At the end of the first quarter, the Company operated a total of 2,257 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Company employs more than 300,000 associates. The Home Depot's stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones industrial average and Standard & Poor's 500 index.

THE HOME DEPOT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE THREE MONTHS ENDED MAY 5, 2013 AND APRIL 29, 2012

(Unaudited)

(Amounts in Millions Except Per Share Data and as Otherwise Noted)

Three Months Ended

May 5,

2013

April 29,

2012

% Increase

(Decrease)

NET SALES

$

19,124

$

17,808

7.4%

Cost of Sales

12,445

11,625

7.1

GROSS PROFIT

6,679

6,183

8.0

Operating Expenses:

Selling, General and Administrative

4,183

4,086

2.4

Depreciation and Amortization

402

383

5.0

Total Operating Expenses

4,585

4,469

2.6

OPERATING INCOME

2,094

1,714

22.2

Interest and Other (Income) Expense:

Interest and Investment Income

(3)

(5)

(40.0)

Interest Expense

164

156

5.1

Other

(67)

(100.0)

Interest and Other, net

161

84

91.7

EARNINGS BEFORE PROVISION FOR INCOME TAXES

1,933

1,630

18.6

Provision for Income Taxes

707

595

18.8

NET EARNINGS

$

1,226

$

1,035

18.5%

Weighted Average Common Shares

1,468

1,522

(3.5)%

BASIC EARNINGS PER SHARE

$

0.84

$

0.68

23.5

Diluted Weighted Average Common Shares

1,478

1,531

(3.5)%

DILUTED EARNINGS PER SHARE

$

0.83

$

0.68

22.1

Three Months Ended

SELECTED HIGHLIGHTS

May 5,

2013

April 29,

2012

% Increase

(Decrease)

Number of Customer Transactions

337.1

328.9

2.5%

Average Ticket (actual)

$

57.24

$

54.51

5.0

Weighted Average Weekly Sales per Operating Store (in thousands)

$

658

$

612

7.5

Square Footage at End of Period

235

236

(0.4)

Capital Expenditures

$

278

$

228

21.9

Depreciation and Amortization (1)

$

435

$

410

6.1%

—————

(1) Includes depreciation of distribution centers and tool rental equipment included in Cost of Sales and amortization of deferred financing costs included in Interest Expense.

THE HOME DEPOT, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF MAY 5, 2013, APRIL 29, 2012 AND FEBRUARY 3, 2013

(Unaudited)

(Amounts in Millions)

May 5,

2013

April 29,

2012

February 3,

2013

ASSETS

Cash and Cash Equivalents

$

4,337

$

3,191

$

2,494

Receivables, net

1,658

1,519

1,395

Merchandise Inventories

11,825

11,582

10,710

Other Current Assets

800

1,060

773

Total Current Assets

18,620

17,352

15,372

Property and Equipment, net

23,906

24,371

24,069

Goodwill

1,187

1,139

1,170

Other Assets

482

438

473

TOTAL ASSETS

$

44,195

$

43,300

$

41,084

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts Payable

$

7,384

$

7,135

$

5,376

Accrued Salaries and Related Expenses

1,264

1,263

1,414

Current Installments of Long-Term Debt

1,332

33

1,321

Other Current Liabilities

4,038

3,668

3,351

Total Current Liabilities

14,018

12,099

11,462

Long-Term Debt, excluding current installments

11,460

10,792

9,475

Other Long-Term Liabilities

2,324

2,434

2,370

Total Liabilities

27,802

25,325

23,307

Total Stockholders' Equity

16,393

17,975

17,777

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

44,195

$

43,300

$

41,084

THE HOME DEPOT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MAY 5, 2013 AND APRIL 29, 2012

(Unaudited)

(Amounts in Millions)

Three Months Ended

May 5,

2013

April 29,

2012

CASH FLOWS FROM OPERATING ACTIVITIES:

Net Earnings

$

1,226

$

1,035

Reconciliation of Net Earnings to Net Cash Provided by Operating Activities:

Depreciation and Amortization

435

410

Stock-Based Compensation Expense

65

58

Changes in Working Capital and Other

971

987

Net Cash Provided by Operating Activities

2,697

2,490

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital Expenditures

(278)

(228)

Payments for Business Acquired, net

(13)

Proceeds from Sales of Property and Equipment

15

7

Net Cash Used in Investing Activities

(276)

(221)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from Long-Term Borrowings, net of discount

1,994

Repayments of Long-Term Debt

(8)

(7)

Repurchases of Common Stock

(2,196)

(1,131)

Proceeds from Sales of Common Stock

64

412

Cash Dividends Paid to Stockholders

(577)

(444)

Other

134

87

Net Cash Used in Financing Activities

(589)

(1,083)

Change in Cash and Cash Equivalents

1,832

1,186

Effect of Exchange Rate Changes on Cash and Cash Equivalents

11

18

Cash and Cash Equivalents at the Beginning of the Period

2,494

1,987

Cash and Cash Equivalents at the End of the Period

$

4,337

$

3,191

Source: The Home Depot

 

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