ATLANTA - The Home Depot®, the world's largest home improvement retailer, today reported first quarter of fiscal 2014 net earnings of $1.4 billion, or $1.00 per diluted share, compared with net earnings of $1.2 billion, or $0.83 per diluted share, in the same period of fiscal 2013. For the first quarter of fiscal 2014, diluted earnings per share increased 20.5 percent from the same period in the prior year.

First quarter of fiscal 2014 results reflect a benefit to earnings, net of tax, of $61 million, or $0.04 per diluted share, related to the sale of a portion of the company's equity ownership in HD Supply Holdings, Inc.

Total sales for the first quarter of fiscal 2014 were $19.7 billion, a 2.9 percent increase from the first quarter of fiscal 2013. Comparable store sales for the first quarter of fiscal 2014 were positive 2.6 percent, and comp sales for the U.S. stores were positive 3.3 percent.

"The first quarter was impacted by a slow start to the spring selling season. But we had solid results in non-weather impacted markets and expect our sales for the year to grow in line with the guidance we previously provided," said Frank Blake, chairman and CEO. "I would like to thank our associates for their hard work and dedication."

Updated Fiscal 2014 Guidance

The Company reaffirmed that it expects fiscal 2014 sales will be up approximately 4.8 percent from fiscal 2013. The Company raised its fiscal 2014 diluted earnings-per-share guidance and now expects diluted earnings-per-share to be up approximately 17.6 percent to $4.42 for the year. This earnings-per-share guidance includes the $0.04 per diluted share benefit related to the sale of HD Supply common stock, the benefit of the Company's year-to-date share repurchases and the Company's intent to repurchase $3.75 billion in additional shares over the remainder of 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 2,263 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 4, 2014 AND MAY 5, 2013

(Unaudited)

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

Three Months Ended

May 4,
 2014

May 5,
 2013

% Increase

(Decrease)

NET SALES

$

19,687

$

19,124

2.9

%

Cost of Sales

12,802

12,445

2.9

GROSS PROFIT

6,885

6,679

3.1

 

Operating Expenses:

Selling, General and Administrative

4,194

4,183

0.3

Depreciation and Amortization

414

402

3.0

Total Operating Expenses

4,608

4,585

0.5

 

OPERATING INCOME

 

2,277

2,094

8.7

Interest and Other (Income) Expense:

Interest and Investment Income

(100)

(3)

N/M

Interest Expense

191

164

16.5

Interest and Other, net

91

161

(43.5)

 

EARNINGS BEFORE PROVISION FOR

INCOME TAXES

2,186

1,933

13.1

Provision for Income Taxes

807

707

14.1

NET EARNINGS

$

1,379

$

1,226

12.5

%

Weighted Average Common Shares

1,367

1,468

(6.9)

%

BASIC EARNINGS PER SHARE

$

1.01

$

0.84

20.2

Diluted Weighted Average Common Shares

1,376

1,478

(6.9)

%

DILUTED EARNINGS PER SHARE

$

1.00

$

0.83

20.5

Three Months Ended

SELECTED HIGHLIGHTS

May 4,
 2014

May 5,
 2013

% Increase

(Decrease)

Number of Customer Transactions

344.5

337.1

2.2

%

Average Ticket (actual)

$

57.59

$

57.24

0.6

Sales per Square Foot (actual)

$

334.01

$

328.17

1.8

N/M – Not Meaningful

 

THE HOME DEPOT, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF MAY 4, 2014, MAY 5, 2013 AND FEBRUARY 2, 2014

(Unaudited)

(Amounts in Millions)

May 4,
 2014

May 5,
 2013

February 2,
 2014

ASSETS

Cash and Cash Equivalents

$

2,511

$

4,337

$

1,929

Receivables, net

1,831

1,658

1,398

Merchandise Inventories

12,343

11,825

11,057

Other Current Assets

830

800

895

Total Current Assets

17,515

18,620

15,279

Property and Equipment, net

23,238

23,906

23,348

Goodwill

1,293

1,187

1,289

Other Assets

583

482

602

TOTAL ASSETS

$

42,629

$

44,195

$

40,518

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts Payable

$

7,739

$

7,384

$

5,797

Accrued Salaries and Related Expenses

1,233

1,264

1,428

Current Installments of Long-Term Debt

34

1,332

33

Other Current Liabilities

4,259

4,038

3,491

Total Current Liabilities

13,265

14,018

10,749

Long-Term Debt, excluding current installments

14,707

11,460

14,691

Other Long-Term Liabilities

2,511

2,324

2,556

Total Liabilities

30,483

27,802

27,996

Total Stockholders' Equity

12,146

16,393

12,522

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

42,629

$

44,195

$

40,518

 

THE HOME DEPOT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MAY 4, 2014 AND MAY 5, 2013

(Unaudited)

(Amounts in Millions)

Three Months Ended

May 4,
 2014

May 5,
 2013

CASH FLOWS FROM OPERATING ACTIVITIES:

Net Earnings

$

1,379

$

1,226

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

Depreciation and Amortization

447

435

Stock-Based Compensation Expense

67

65

Changes in Working Capital and Other

675

971

Net Cash Provided by Operating Activities

2,568

2,697

 

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital Expenditures

(287)

(278)

Payments for Businesses Acquired, net

(13)

Proceeds from Sales of Property and Equipment

7

15

Net Cash Used in Investing Activities

(280)

(276)

 

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from Long-Term Borrowings, net of discount

1,994

Repayments of Long-Term Debt

(12)

(8)

Repurchases of Common Stock

(1,250)

(2,196)

Proceeds from Sales of Common Stock

69

64

Cash Dividends Paid to Stockholders

(646)

(577)

Other Financing Activities

133

134

Net Cash Used in Financing Activities

(1,706)

(589)

 

Change in Cash and Cash Equivalents

 

582

1,832

Effect of Exchange Rate Changes on Cash and Cash Equivalents

11

Cash and Cash Equivalents at Beginning of Period

1,929

2,494

 

Cash and Cash Equivalents at End of Period

$

2,511

$

4,337

SOURCE: The Home Depot

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