Item 6. . Selected Financial Data

10K characters. Original on sec.gov · Markdown

Item 6. . Selected Financial Data

FIVE YEAR SELECTED FINANCIAL AND OPERATING HIGHLIGHTS (a)(b)

The following selected financial data is derived from the Consolidated Financial Statements of Tractor Supply Company and provides summary historical financial information for the fiscal periods ended and as of the dates indicated (in thousands, except per share amounts and selected operating and other data):


	2020			2019			2018			2017			2016
	(52 weeks)			(52 weeks)			(52 weeks)			(52 weeks)			(53 weeks)
Operating Results:
Net sales	$	10,620,352		$	8,351,931		$	7,911,046		$	7,256,382		$	6,779,579
Gross profit	3,761,549			2,871,770			2,702,528			2,491,965			2,325,202
Selling, general and administrative expenses	2,478,524			1,932,572			1,823,440			1,639,749			1,488,164
Depreciation and amortization	217,124			195,978			177,351			165,834			142,958
Impairment of goodwill and other intangible assets	68,973			—			—			—			—
Operating income	996,928			743,220			701,737			686,382			694,080
Interest expense, net	28,781			19,843			18,352			13,859			5,810
Income before income taxes	968,147			723,377			683,385			672,523			688,270
Income tax expense	219,189			161,023			151,028			249,924			251,150
Net income	$	748,958		$	562,354		$	532,357		$	422,599		$	437,120
Net income per share – basic (c)	$	6.44		$	4.70		$	4.34		$	3.31		$	3.29
Net income per share – diluted (c)	$	6.38		$	4.66		$	4.31		$	3.30		$	3.27
Weighted average shares – diluted (c)	117,436			120,743			123,471			128,204			133,813
Dividends declared per common share outstanding	$	1.50		$	1.36		$	1.20		$	1.05		$	0.92
Operating Data (percent of net sales):
Gross margin	35.4		%	34.4		%	34.2		%	34.3		%	34.3		%
Selling, general and administrative expenses	23.3		%	23.1		%	23.0		%	22.6		%	22.0		%
Operating income	9.4		%	8.9		%	8.9		%	9.4		%	10.2		%
Net income	7.1		%	6.7		%	6.7		%	5.8		%	6.4		%
Store, Sales, and Other Data:
Stores open at end of year	2,105			2,024			1,940			1,853			1,738
Comparable store sales increase (d)	23.1		%	2.7		%	5.1		%	2.7		%	1.6		%
New store sales (as a % of net sales) (e)	3.3		%	2.8		%	3.8		%	5.6		%	5.6		%
Average transaction value	$	51.90		$	46.89		$	45.85		$	44.61		$	44.42
Comparable store average transaction value increase (decrease) (c)	12.2		%	2.4		%	2.8		%	0.5		%	(0.9)		%
Comparable store average transaction count increase (d)	10.9		%	0.3		%	2.2		%	2.2		%	2.6		%
Total selling square footage (000’s)	32,139			30,854			29,571			28,180			26,511
Total team members	42,500			33,500			30,500			29,300			26,000
Capital expenditures (000’s)	$	294,002		$	217,450		$	278,530		$	250,401		$	226,017
Balance Sheet Data (at end of period):
Average inventory per store (f)	$	793.7		$	751.3		$	766.8		$	735.4		$	741.7
Inventory turns	3.92			3.23			3.27			3.24			3.19
Working capital	$	1,514,887		$	540,287		$	856,292		$	806,154		$	740,615
Total assets (g)	$	7,049,116		$	5,289,268		$	3,085,262		$	2,868,769		$	2,674,942
Long-term debt, less current portion (h)	$	1,017,420		$	396,869		$	410,370		$	433,686		$	289,769
Operating lease liabilities, less current portion (g)	$	2,220,904		$	2,001,162		$	—		$	—		$	—
Stockholders’ equity	$	1,923,840		$	1,567,123		$	1,561,820		$	1,418,673		$	1,453,218

(a) Our fiscal year includes 52 or 53 weeks and ends on the last Saturday of the calendar year. References to fiscal year mean the year in which that fiscal year ended. Fiscal year 2016 consisted of 53 weeks while all other fiscal years presented consisted of 52 weeks.

(b) Beginning in the fourth quarter ended December 31, 2016, selected financial and operating information includes the consolidation of Petsense, unless otherwise noted.

(c) Basic net income per share is calculated based on the weighted average number of common shares outstanding applied to net income. Diluted net income per share is calculated using the treasury stock method for stock options, restricted stock units, and performance-based restricted share units.

(d) Comparable store metrics are calculated on an annual basis using sales generated from all stores open at least one year and all online sales, excluding certain adjustments to net sales. Stores closed during the year are removed from our comparable store metrics calculations. Stores relocated during the years being compared are not removed from our comparable store metrics as they are immaterial. If the effect of relocated stores on our comparable store metrics becomes material, we would remove relocated stores from the calculations. Acquired Petsense stores are considered comparable stores beginning in the fourth quarter of fiscal 2017.

(e) New stores sales metrics are based on stores open for less than one year.

(f) Assumes average inventory cost, excluding inventory in-transit.

(g) As a result of the adoption of new lease accounting guidance in the first quarter of fiscal 2019, we recognized lease assets and liabilities for operating leases. Prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting policies. For additional information related to the impact of adopting this new accounting guidance, see Note 1 and Note 6 to the Consolidated Financial Statements.

(h) Long-term debt includes amounts outstanding under the Company’s debt facilities and finance lease obligations, excluding the current portions.

Index

Previous: Item 5. . Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities · Next: Item 7. . Management’s Discussion and Analysis of Financial Condition and Results of Operations