Dollar Tree, Inc. (NASDAQ:DLTR) Q4 2014 Earnings Conference Call - Final Transcript

Feb 25, 2015 • 09:00 am ET

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Dollar Tree, Inc. (NASDAQ:DLTR) Q4 2014 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day everyone and welcome to the Dollar Tree, Inc.'s Fourth Quarter Earnings conference call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Mr. Randy Guiler, Vice President, Investor Relations. Please go ahead, sir.

Executive
Randy Guiler

Thank you, Diana. Good morning and welcome to our conference call to discuss Dollar Tree's performance for the fourth quarter and full year of fiscal 2014. Our call today will be led by our CEO, Bob Sasser, who will share insights on our performance and an update on our business initiatives. Kevin Wampler, our CFO will then provide a more detailed review of our financial performance and details related to our initial outlook for 2015.

Before we begin, I would like to remind everyone that various remarks that we will make about future expectations, plans and prospects for the company constitute forward-looking statements for the purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, included in our most recent press release, most recent current report on Form 8-K, quarterly report on Form 10-Q and annual report on Form 10-K, which are on file with the SEC. We have no obligation to update our forward-looking statements and you should not expect us to do so.

Unless otherwise noted, all margin, net income and earnings comparisons presented today exclude the impact of the Family Dollar Stores acquisition-related costs for the fourth quarter and full year. Acquisition-related cost for the fourth quarter and full year are included in the Adjustments column of our income statement included in today's earnings release. At the end of our prepared remarks, we will open the call to your questions. Please limit your questions to one and one follow-up question, if necessary.

Now I will turn the call over to Bob Sasser, Dollar Tree's Chief Executive Officer.

Executive
Bob Sasser

Thanks Randy. Good morning everyone. This morning we announced Dollar Tree's results for the fourth quarter and full year fiscal 2014. For the quarter, same-store sales on a constant currency basis increased 5.6%, total sales grew 10.8% to $2.48 billion. Operating income increased by $42.1 million or 12.1% and operating margin for the quarter was 15.8%, a 20 basis point improvement from the prior year's fourth quarter.

Net income increased 12.2% to $239 million and adjusted earnings per diluted share increased 13.7% to $1.16 compared with fourth quarter 2013 earnings of $1.02 per diluted share. For the full year fiscal 2014, total sales increased 9.7% to $8.6 billion. Same-store sales on a constant currency basis increased 4.4% as a result of the 3.4% increase in traffic and a 90 basis point increase in average ticket.

Operating income increased by $98.4 million to nearly $1.07 billion. Operating margin was a sector leading 12.4%, a four basis point increase versus the prior year. Net income was $645.6 million compared with $596.7 million last year and adjusted