Delaware
|
71-0415188
|
(State
or other jurisdiction of
incorporation
or organization)
|
(I.R.S.
Employer
Identification
No.)
|
702
S.W. Eighth Street
Bentonville,
Arkansas
|
72716
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Three
Months Ended
April
30,
|
|||||||
2006
|
2005
|
||||||
Revenues:
|
|||||||
Net
sales
|
$
|
79,613
|
$
|
70,908
|
|||
Other
income, net
|
855
|
772
|
|||||
80,468
|
71,680
|
||||||
Costs
and expenses:
|
|||||||
Cost
of
sales
|
60,851
|
54,571
|
|||||
Operating,
selling, general and administrative expenses
|
15,166
|
13,168
|
|||||
Operating
income
|
4,451
|
3,941
|
|||||
Interest:
|
|||||||
Debt
|
367
|
199
|
|||||
Capital
leases
|
70
|
53
|
|||||
Interest
income
|
(69
|
)
|
(52
|
)
|
|||
Interest,
net
|
368
|
200
|
|||||
Income
before income taxes and minority interest
|
4,083
|
3,741
|
|||||
Provision
for income taxes
|
1,388
|
1,212
|
|||||
Income
before minority interest
|
2,695
|
2,529
|
|||||
Minority
interest
|
(80
|
)
|
(68
|
)
|
|||
Net
income
|
$
|
2,615
|
$
|
2,461
|
|||
Basic
and diluted net income per common share
|
$
|
0.63
|
$
|
0.58
|
|||
Weighted-average
number of common shares:
|
|||||||
Basic
|
4,167
|
4,228
|
|||||
Diluted
|
4,170
|
4,234
|
|||||
Dividends
declared per common share
|
$
|
0.67
|
$
|
0.60
|
April
30,
2006
|
April
30,
2005
|
January
31,
2006
|
||||||||
ASSETS
|
||||||||||
Cash
and cash equivalents
|
$
|
5,858
|
$
|
4,955
|
$
|
6,414
|
||||
Receivables
|
2,507
|
1,520
|
2,662
|
|||||||
Inventories
|
32,206
|
31,349
|
32,191
|
|||||||
Prepaid
expenses and other
|
2,961
|
1,817
|
2,557
|
|||||||
Total
current assets
|
43,532
|
39,641
|
43,824
|
|||||||
Property
and equipment, at cost
|
100,456
|
85,954
|
97,302
|
|||||||
Less
accumulated depreciation
|
(22,505
|
)
|
(19,579
|
)
|
(21,427
|
)
|
||||
Property
and
equipment, net
|
77,951
|
66,375
|
75,875
|
|||||||
Property
under capital leases, net
|
3,507
|
2,928
|
3,415
|
|||||||
Goodwill
|
12,902
|
10,786
|
12,188
|
|||||||
Other
assets and deferred charges
|
2,593
|
2,485
|
2,885
|
|||||||
Total
assets
|
$
|
140,485
|
$
|
122,215
|
$
|
138,187
|
||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||||
Commercial
paper
|
$
|
3,653
|
$
|
7,017
|
$
|
3,754
|
||||
Accounts
payable
|
25,383
|
22,910
|
25,373
|
|||||||
Dividends
payable
|
2,305
|
1,946
|
—
|
|||||||
Accrued
liabilities
|
12,779
|
11,056
|
13,465
|
|||||||
Accrued
income taxes
|
1,969
|
1,971
|
1,340
|
|||||||
Long-term
debt due within one year
|
5,528
|
4,040
|
4,595
|
|||||||
Obligations
under capital leases due within one year
|
248
|
228
|
299
|
|||||||
Total
current liabilities
|
51,865
|
49,168
|
48,826
|
|||||||
Long-term
debt
|
25,036
|
18,232
|
26,429
|
|||||||
Long-term
obligations under capital leases
|
4,000
|
3,396
|
3,742
|
|||||||
Deferred
income taxes and other
|
4,730
|
2,867
|
4,552
|
|||||||
Minority
interest
|
1,540
|
1,361
|
1,467
|
|||||||
Commitments
and contingencies
|
||||||||||
Common
stock and capital in excess of par value
|
3,070
|
2,827
|
3,013
|
|||||||
Retained
earnings
|
49,020
|
42,153
|
49,105
|
|||||||
Other
accumulated comprehensive income
|
1,224
|
2,211
|
1,053
|
|||||||
Total
shareholders’ equity
|
53,314
|
47,191
|
53,171
|
|||||||
Total
liabilities and shareholders’ equity
|
$
|
140,485
|
$
|
122,215
|
$
|
138,187
|
Three
Months Ended
April
30,
|
|||||||
2006
|
2005
|
||||||
Cash
flows from operating activities:
|
|||||||
Net
income
|
$
|
2,615
|
$
|
2,461
|
|||
Adjustments
to
reconcile net income to net cash provided by operating
activities:
|
|||||||
Depreciation
and amortization
|
1,311
|
1,132
|
|||||
Other
|
(83
|
)
|
(44
|
)
|
|||
Changes
in certain assets and liabilities, net of effects of
acquisitions:
|
|||||||
Decrease
in
accounts receivable
|
231
|
185
|
|||||
Decrease
(increase) in inventories
|
242
|
(1,917
|
)
|
||||
Increase
(decrease) in accounts payable
|
(455
|
)
|
1,040
|
||||
Decrease
in
accrued liabilities
|
(121
|
)
|
(344
|
)
|
|||
Net
cash provided by operating activities
|
3,740
|
2,513
|
|||||
Cash
flows from investing activities:
|
|||||||
Payments
for
property, plant and equipment
|
(3,220
|
)
|
(2,772
|
)
|
|||
Proceeds
from
disposal of assets
|
258
|
301
|
|||||
Investment
in
international operations, net of cash acquired
|
(68
|
)
|
—
|
||||
Other
investing activities
|
67
|
(25
|
)
|
||||
Net
cash used in investing activities
|
(2,963
|
)
|
(2,496
|
)
|
|||
Cash
flows from financing activities:
|
|||||||
Increase
(decrease) in commercial paper
|
(112
|
)
|
3,205
|
||||
Proceeds
from
issuance of long-term debt
|
1,284
|
—
|
|||||
Payment
of long-term debt
|
(1,757
|
)
|
(1,508
|
)
|
|||
Dividends
paid
|
(698
|
)
|
(635
|
)
|
|||
Purchase
of
Company stock
|
—
|
(1,415
|
)
|
||||
Other
financing activities
|
(87
|
)
|
(156
|
)
|
|||
Net
cash used in financing activities
|
(1,370
|
)
|
(509
|
)
|
|||
Effect
of exchange rates on cash
|
37
|
(41
|
)
|
||||
Net
decrease in cash and cash equivalents
|
(556
|
)
|
(533
|
)
|
|||
Cash
and cash equivalents at beginning of year
|
6,414
|
5,488
|
|||||
Cash
and cash equivalents at end of period
|
$
|
5,858
|
$
|
4,955
|
|||
Supplemental
disclosure of cash flow information:
|
|||||||
Income
taxes paid
|
$
|
777
|
$
|
810
|
|||
Interest
paid
|
$
|
510
|
$
|
339
|
Quarter
Ended
April
30,
|
|||||||
2006
|
2005
|
||||||
Wal-Mart
Stores
|
$
|
52,499
|
$
|
47,641
|
|||
SAM’S
CLUB
|
9,775
|
9,155
|
|||||
International
|
17,339
|
14,112
|
|||||
Total
net sales
|
$
|
79,613
|
$
|
70,908
|
Quarter
Ended
April
30,
|
|||||||
2006
|
2005
|
||||||
Wal-Mart
Stores
|
$
|
3,981
|
$
|
3,307
|
|||
SAM’S
CLUB
|
319
|
295
|
|||||
International
|
713
|
667
|
|||||
Other
|
(562
|
)
|
(328
|
)
|
|||
Operating
income
|
4,451
|
3,941
|
|||||
Interest
expense, net
|
368
|
200
|
|||||
Income
before income taxes and minority interest
|
$
|
4,083
|
$
|
3,741
|
April
30,
2006
|
April
30,
2005
|
January
31,
2006
|
||||||||
International
|
$
|
12,597
|
$
|
10,481
|
$
|
11,883
|
||||
SAM’S
CLUB
|
305
|
305
|
305
|
|||||||
Total
goodwill
|
$
|
12,902
|
$
|
10,786
|
$
|
12,188
|
· |
Net
sales for the first quarter of fiscal 2007 increased 12.3% to $79.6
billion from $70.9 billion in the first quarter of fiscal
2006.
|
· |
Net
income increased 6.3% to $2.615 billion, or $0.63 per share, in the
first
quarter of fiscal 2007 from $2.461 billion, or $0.58 per share, in
the
first quarter of fiscal 2006. Net income for the first quarter of
fiscal
2006 included the favorable impact of two items amounting to $145
million
after tax, or $0.03 per share: $77 million from favorable tax resolutions
and positive legal developments of $68 million after
tax.
|
· |
Total
assets increased 14.9% to $140.5 billion at April 30, 2006 when compared
to April 30, 2005. During the first quarter of fiscal 2007, we made
$3.2
billion of capital expenditures.
|
· |
Inventory
management initiatives for the Company were successful, primarily
at our
Wal-Mart Stores and SAM’S CLUB segments. At April 30, 2006, consolidated
inventories were $32.2 billion, slightly higher than January 31,
2006
inventories. Despite increases in inventory resulting from acquisitions,
our internal goal of growing inventory at a rate less than half the
growth
rate of sales was met for the first quarter of fiscal 2007. Additionally,
our inventory management initiatives contributed to an increase in
cash
provided by operating activities, which was $3.7 billion in the first
quarter of fiscal 2007, a 48.8% increase over the first quarter of
fiscal
2006.
|
· |
Comparative
store sales in the United States increased 3.9% for the quarter ended
April 30, 2006. Comparative store sales at our Wal-Mart Stores segment
increased 3.8% for the first quarter of fiscal 2007, while SAM’S CLUB’s
comparative store sales increased 4.8%, including 0.5% from the impact
of
fuel sales, in the first quarter of fiscal
2007.
|
· |
Net
sales at our International segment increased 22.9% when compared
with the
first quarter of fiscal 2006. Fiscal 2007 sales in the International
segment include sales from the consolidation of Seiyu, Ltd., and
CARHCO
and the acquisition of Sonae.
These entities contributed 15.3 percentage points to the increase
in the
International segment net sales.
|
· |
When
compared with the first quarter of fiscal 2006, our segment operating
income for the Wal-Mart Stores and SAM’S CLUB segments for the first
quarter of fiscal 2007 increased 20.4% and 8.1%, respectively. Segment
operating income in these segments grew faster than segment net sales.
Our
International segment operating income grew 6.9% which was slower
than the
growth in segment net sales.
|
· |
Our
Board of Directors declared an annual dividend of $0.67 per share
for
fiscal 2007, payable in equal quarterly installments. This dividend
represents an increase of 11.7% over fiscal year
2006.
|
Quarter
ended
April
30, 2006
|
Quarter
ended
April
30, 2005
|
|||||||||||||||
Net
sales
|
Percent
of
total
|
Net
sales
|
Percent
of
total
|
Percent
increase
|
||||||||||||
Wal-Mart
Stores
|
$
|
52,499
|
65.9
|
%
|
$
|
47,641
|
67.2
|
%
|
10.2
|
%
|
||||||
SAM’S
CLUB
|
9,775
|
12.3
|
%
|
9,155
|
12.9
|
%
|
6.8
|
%
|
||||||||
International
|
17,339
|
21.8
|
%
|
14,112
|
19.9
|
%
|
22.9
|
%
|
||||||||
Total
net sales
|
$
|
79,613
|
100.0
|
%
|
$
|
70,908
|
100.0
|
%
|
12.3
|
%
|
Quarter
ended
April
30,
|
Segment
net
sales
(in
millions)
|
Segment
net
sales
increase
from
prior
fiscal
year
first
quarter
|
Segment
operating
income
(in
millions)
|
Segment
operating
income
increase
from
prior fiscal
year
first
quarter
|
Segment
operating
income
as a
percentage
of
segment
net
sales
|
2006
|
$ 52,499
|
10.2%
|
$ 3,981
|
20.4%
|
7.6%
|
2005
|
$ 47,641
|
9.3%
|
$ 3,307
|
6.0%
|
6.9%
|
Quarter
ended
April
30,
|
Segment
net
sales
(in
millions)
|
Segment
net
sales
increase
from
prior
fiscal
year
first
quarter
|
Segment
operating
income
(in
millions)
|
Segment
operating
income
increase
from
prior fiscal
year
first
quarter
|
Segment
operating
income
as a
percentage
of
segment
net
sales
|
2006
|
$ 9,775
|
6.8%
|
$ 319
|
8.1%
|
3.3%
|
2005
|
$ 9,155
|
5.9%
|
$ 295
|
10.5%
|
3.2%
|
Quarter
ended
April
30,
|
Segment
net
sales
(in
millions)
|
Segment
net
sales
increase
from
prior
fiscal
year
first
quarter
|
Segment
operating
income
(in
millions)
|
Segment
operating
income
increase
from
prior fiscal
year
first
quarter
|
Segment
operating
income
as a
percentage
of
segment
net
sales
|
2006
|
$ 17,339
|
22.9%
|
$ 713
|
6.9%
|
4.1%
|
2005
|
$ 14,112
|
12.4%
|
$ 667
|
18.5%
|
4.7%
|
Exhibit
3(i)
|
Restated
Certificate of Incorporation of the Company, is incorporated herein
by
reference to Exhibit 3(a) to the Annual Report on Form 10-K of the
Company
for the year ended January 31, 1989 (which document may be found
and
reviewed in the SEC’s Public Reference Room at 100 F Street, NE, Room
1580, Washington, D.C. 20549, in the files therein relating to the
Company, whose SEC file number is No. 1-6991), the Certificate of
Amendment to the Restated Certificate of Incorporation is incorporated
herein by reference to Registration Statement on Form S-8 (File Number
33-43315) and the Certificate of Amendment to the Restated Certificate
of
Incorporation is incorporated hereby by reference to the Current
Report on
Form 8-K of the Company, dated August 11, 1999 (which document may be
found and reviewed in the SEC’s Public Reference Room at 100 F Street, NE,
Room 1580, Washington, D.C. 20549, in the files therein relating
to the
Company, whose SEC file number is No. 1-6991).
|
Exhibit
3(ii)
|
Amended
and Restated Bylaws of the Company are incorporated herein by reference
to
Exhibit 3.1 to the Current Report on Form 8-K of the Company dated
March
8, 2005.
|
Exhibit
12*
|
Ratio
of Earnings to Fixed Charges
|
Exhibit
31.1*
|
Chief
Executive Officer Section 302 Certification
|
Exhibit
31.2*
|
Chief
Financial Officer Section 302 Certification
|
Exhibit
32.1**
|
Chief
Executive Officer Section 906 Certification
|
Exhibit
32.2**
|
Chief
Financial Officer Section 906 Certification
|
Exhibit
99
|
All
information incorporated by reference in Part I, Item 3, of this
Quarterly
Report on Form 10-Q from the Annual Report on Form 10-K of the Company
for
the year ended January 31, 2006.
|
WAL-MART
STORES, INC.
|
||
Date:
June 2, 2006
|
By:
|
/s/
H. Lee Scott, Jr.
|
President
and
Chief
Executive Officer
|
||
Date:
June 2, 2006
|
By:
|
/s/
Thomas M. Schoewe
|
Executive
Vice President and
Chief
Financial Officer
|
||
Date:
June 2, 2006
|
By:
|
/s/
Charles M. Holley, Jr.
|
Senior
Vice President, Finance
(Principal
Accounting Officer)
|