TRACTOR SUPPLY COMPANY REPORTS RECORD
FOURTH QUARTER AND FULL YEAR 2009 RESULTS
~ Earnings per Share of $1.04 for Fourth Quarter and $3.15 for Full Year ~
~ Fourth Quarter Sales Increase 7.9% and Same-Store Sales Increase 0.7% ~

Brentwood, Tennessee, January 27, 2010 – Tractor Supply Company (NASDAQ: TSCO)

, the largest retail farm and ranch store chain in the United States, today announced record financial results for its fourth fiscal quarter and fiscal year ended December 26, 2009. Additionally, the Company provided its current outlook for fiscal 2010.

Fourth Quarter Results
For fourth quarter 2009, net sales increased 7.9% to $862.5 million from $799.5 million and same-store sales increased 0.7% compared to a 1.3% increase for the prior year’s fourth quarter. The Company continued to experience solid sales performance in core consumable categories, including animal and pet-related products, as well as key seasonal products.

Gross margin increased 16.6% to $285.7 million, or 33.1% of sales, compared to $245.0 million, or 30.7% of sales, in the prior year’s fourth quarter. The increase in gross margin percentage resulted primarily from a substantial decrease in the LIFO provision and lower transportation costs.

Selling, general and administrative expenses, including depreciation and amortization, increased 10.6% to $226.3 million, or 26.2% of sales, compared to $204.7 million, or 25.6% of sales, in the prior year’s fourth quarter. This increase as a percent of sales was primarily attributable to the deleveraging related to the lower same-store sales increase and higher occupancy costs, partially offset by reduced marketing costs.

The Company’s effective income tax rate decreased to 35.0% compared to 38.2% in the prior year’s fourth quarter. This reduction in the tax rate resulted from the favorable impact of certain federal tax credits and a lower percentage of permanent tax differences relative to income before taxes.

For fourth quarter 2009, net income increased 54.8% to $38.3 million from $24.7 million and earnings per share increased 55.2% to $1.04 per diluted share from $0.67 per diluted share in the fourth quarter of the prior year.

The Company opened 18 new stores in the quarter compared to 21 new store openings and one relocation in the prior year’s fourth quarter.

Jim Wright, Chairman and Chief Executive Officer, stated, “We are delighted that we achieved stronger-than-expected financial results for the year based on our fourth quarter performance. Our team worked closely together to deliver compelling value to our customers for their everyday basic needs. For the ninth consecutive quarter, we have reduced year-over-year inventory levels per store while maintaining outstanding in-stock levels and improving inventory turns. Throughout the year, the resiliency of our business model was demonstrated as we continued differentiating our company in the market and executing our retail strategy.”

Full Year Results
For fiscal 2009, net sales increased 6.6% to $3.21 billion from $3.01 billion and same-store sales decreased 1.1% compared to a 1.4% increase for fiscal 2008.

Gross margin increased 13.4% to $1,035.0 million, or 32.3% of sales, compared to $912.3 million, or 30.3% of sales, in 2008. The increase in gross margin resulted primarily from a substantial decrease in the LIFO provision and lower transportation costs.

Selling, general and administrative expenses, including depreciation and amortization, increased 9.5% to $850.3 million, or 26.5% of sales, compared to $776.7 million, or 25.8% of sales, in 2008. This increase as a percent to sales was primarily attributable to the deleveraging related to the same-store sales decrease and higher occupancy costs, partially offset by reduced marketing costs.

The Company’s effective income tax rate decreased to 36.9% compared to 38.6% in the prior year. This reduction in the tax rate resulted from the favorable impact of certain federal tax credits and a lower percentage of permanent tax differences relative to income before taxes.

For fiscal 2009, net income increased 40.9% to $115.5 million from $81.9 million and earnings per share increased 43.8% to $3.15 per diluted share from $2.19 per diluted share for fiscal 2008.

During fiscal 2009, the Company opened 76 new stores, closed one store and relocated two stores. This compares to 91 new store openings and one relocated store in fiscal 2008.

Fiscal 2010 Outlook
The Company anticipates net sales for fiscal 2010 will be approximately $3.42 billion to $3.48 billion, with same-store sales expected to increase approximately 0.5% to 2.5%. The Company projects 2010 full year net earnings to range from $3.30 to $3.42 per diluted share. Exclusive of the LIFO provision, the Company projects full year net earnings to range from $3.50 to $3.62 per diluted share.

For the full year, the Company expects approximately 70 to 80 new store openings.

Mr. Wright concluded, “We expect the retail environment to remain challenging and we will maintain a relentless focus on serving our customers and managing our business proactively this year. We have a solid capital structure, with a very strong balance sheet and no long-term debt. As a result of our strategies and financial strength, we are well positioned to achieve top- and bottom-line growth while continuing to deliver strong cash flows in 2010.”

Conference Call Information
Tractor Supply Company will be hosting a conference call at 5:00 p.m. Eastern Time today to discuss the financial results. The call will be simultaneously webcast over the Internet on the Company’s homepage at TractorSupply.com and can be accessed under the subheading “Investor Relations.” The webcast will be archived shortly after the conference call concludes through February 10, 2010.

About Tractor Supply Company
At December 26, 2009, Tractor Supply Company operated 930 stores in 44 states. The Company’s stores are focused on supplying the lifestyle needs of recreational farmers and ranchers. The Company also serves the maintenance needs of those who enjoy the rural lifestyle, as well as tradesmen and small businesses. Stores are located in towns outlying major metropolitan markets and in rural communities. The Company offers the following comprehensive selection of merchandise: (1) equine, pet and animal products, including items necessary for their health, care, growth and containment; (2) maintenance products for agricultural and rural use; (3) hardware and tool products; (4) seasonal products, including lawn and garden power equipment; (5) truck and towing products; and (6) work/recreational clothing and footwear for the entire family.

Forward Looking Statements

As with any business, all phases of the Company’s operations are subject to influences outside its control. This press release contains certain forward-looking statements, including statements regarding estimated results of operations in future periods. These forward-looking statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to the finalization of the Company’s year-end financial and accounting procedures, and may be affected by certain risks and uncertainties, any one, or a combination, of which could materially affect the results of the Company’s operations. These factors include general economic conditions affecting consumer spending, the timing and acceptance of new products in the stores, the mix of goods sold, purchase price volatility (including inflationary and deflationary pressures), the ability to increase sales at existing stores, the ability to manage growth and identify suitable locations and negotiate favorable lease agreements on new and relocated stores, the availability of favorable credit sources, capital market conditions in general, failure to open new stores in the manner currently contemplated, the impact of new stores on our business, competition, weather conditions, the seasonal nature of our business, effective merchandising initiatives and marketing emphasis, the ability to retain vendors, reliance on foreign suppliers, the ability to attract, train and retain qualified employees, product liability and other claims, potential legal proceedings, management of our information systems, effective tax rate changes and results of examination by taxing authorities, and the ability to maintain an effective system of internal control over financial reporting. Forward-looking statements made by or on behalf of the Company are based on knowledge of its business and the environment in which it operates, but because of the factors listed above, actual results could differ materially from those reflected by any forward-looking statements. Consequently, all of the forward-looking statements made are qualified by these cautionary statements and those contained in the Company’s Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. There can be no assurance that the results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company or its business and operations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

(Financial tables to follow)

1

Consolidated Statements of Income
(Unaudited)
(in thousands, except per share amounts)

                                                                 
    FOURTH QUARTER ENDED                   FISCAL YEAR ENDED            
    December 26, 2009   December 27, 2008   December 26, 2009           December 27, 2008
Net sales
  $ 862,532       100.0 %   $ 799,496       100.0 %   $ 3,206,937       100.0 %   $ 3,007,949       100.0 %
Cost of merchandise sold
    576,847       66.9       554,456       69.3       2,171,980       67.7       2,095,688       69.7  
 
                                                               
Gross margin
    285,685       33.1       245,040       30.7       1,034,957       32.3       912,261       30.3  
Selling, general and administrative expenses
    208,827       24.2       188,659       23.6       784,066       24.4       715,961       23.8  
Depreciation and amortization
    17,501       2.0       16,006       2.0       66,258       2.1       60,731       2.0  
 
                                                               
Income from operations
    59,357       6.9       40,375       5.1       184,633       5.8       135,569       4.5  
Interest expense, net
    505       0.1       406       0.1       1,644       0.1       2,133       0.1  
 
                                                               
Income before income taxes
    58,852       6.8       39,969       5.0       182,989       5.7       133,436       4.4  
Income tax expense
    20,599       2.4       15,257       1.9       67,523       2.1       51,506       1.7  
 
                                                               
Net income
  $ 38,253       4.4 %   $ 24,712       3.1 %   $ 115,466       3.6 %   $ 81,930       2.7 %
 
                                                               
Net income per share:
                                                               
Basic
  $ 1.06             $ 0.68             $ 3.21             $ 2.22          
 
                                                               
Diluted
  $ 1.04             $ 0.67             $ 3.15             $ 2.19          
 
                                                               
Weighted average shares outstanding (000’s):
                                                               
Basic
    36,090               36,185               35,990               36,830          
Diluted
    36,815               36,824               36,649               37,464          

2

Consolidated Balance Sheets
(Unaudited)
(in thousands)

                 
    December 26,   December 27,
    2009   2008 *
ASSETS
               
Current assets:
               
Cash and cash equivalents
  $ 172,851     $ 36,989  
Inventories
    601,249       603,435  
Prepaid expenses and other current assets
    42,320       41,902  
Deferred income taxes
    17,909       1,676  
 
               
Total current assets
    834,329       684,002  
Property and equipment, net
    370,245       362,033  
Goodwill
    10,258       10,258  
Deferred income taxes
    11,091       13,727  
Other assets
    4,922       5,977  
 
               
TOTAL ASSETS
  $ 1,230,845     $ 1,075,997  
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
               
Accounts payable
  $ 273,208     $ 286,828  
Accrued expenses
    137,375       113,465  
Current portion of capital lease obligations
    392       550  
Income taxes currently payable
    7,605        
 
               
Total current liabilities
    418,580       400,843  
Revolving credit loan
           
Capital lease obligations
    1,407       1,797  
Straight line rent liability
    45,515       38,016  
Other long-term liabilities
    32,140       25,211  
 
               
Total liabilities
    497,642       465,867  
 
               
Stockholders’ equity:
               
Common stock
    330       327  
Additional paid-in capital
    190,938       168,045  
Treasury stock
    (219,204 )     (203,915 )
Retained earnings
    761,139       645,673  
 
               
Total stockholders’ equity
    733,203       610,130  
 
               
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
  $ 1,230,845     $ 1,075,997  
 
               
* Cash and cash equivalents and prepaid expenses and other current assets have been reclassified to
conform to the current period presentation.
               

3

Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)

                 
    FISCAL YEAR ENDED    
    December 26,   December 27,
    2009   2008 *
Cash flows from operating activities:
               
Net income
  $ 115,466     $ 81,930  
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation and amortization
    66,258       60,731  
Loss (gain) on disposition of property and equipment
    213       (425 )
Stock compensation expense
    12,130       12,257  
Deferred income taxes
    (13,597 )     1,566  
Change in assets and liabilities:
               
Inventories
    2,186       32,553  
Prepaid expenses and other current assets
    (409 )     1,007  
Accounts payable
    (13,620 )     28,482  
Accrued expenses
    23,910       (2,136 )
Income taxes currently payable
    7,605       (5,928 )
Other
    15,175       7,689  
 
               
Net cash provided by operating activities
    215,317       217,726  
 
               
Cash flows from investing activities:
               
Capital expenditures
    (73,974 )     (91,759 )
Proceeds from sale of property and equipment
    97       3,324  
 
               
Net cash used in investing activities
    (73,877 )     (88,435 )
 
               
Cash flows from financing activities:
               
Borrowings under revolving credit agreement
    274,033       853,903  
Repayments under revolving credit agreement
    (274,033 )     (908,903 )
Tax benefit of stock options exercised
    4,281       1,085  
Principal payments under capital lease obligations
    (548 )     (851 )
Repurchase of common stock
    (15,289 )     (53,866 )
Net proceeds from issuance of common stock
    5,978       3,150  
 
               
Net cash used in financing activities
    (5,578 )     (105,482 )
 
               
Net increase in cash and equivalents
    135,862       23,809  
Cash and cash equivalents at beginning of year
    36,989       13,180  
 
               
Cash and cash equivalents at end of year
  $ 172,851     $ 36,989  
 
               
Supplemental disclosures of cash flow information:
               
Cash paid during the year for:
               
Interest
  $ 838     $ 3,890  
Income taxes
    66,888       55,476  
* Reclassified to conform to the current period presentation.
       

4

Selected Financial and Operating Information

                                 
    FOURTH QUARTER ENDED   FISCAL YEAR ENDED    
    December 26, 2009   December 27, 2008   December 26, 2009   December 27, 2008
    (Unaudited)   (Unaudited)
Sales Information:
                               
 
                               
Same-store sales increase (decrease)
    0.7 %     1.3 %     (1.1 )%     1.4 %
Non-comp sales (% of total sales)
    6.6 %     8.2 %     7.2 %     8.9 %
Average transaction value
  $ 42.24     $ 43.90     $ 42.06     $ 44.55  
Comp average transaction/value increase (decrease)
    (4.1 )%     0.3 %     (6.0 )%     1.3 %
Comp average transaction count increase
    5.1 %     1.0 %     5.3 %     0.1 %
Store Count Information:
                               
 
                               
Beginning of period
    912       834       855       764  
New stores opened
    18       21       76       91  
Stores closed/sold
                (1 )      
 
                               
End of year
    930       855       930       855  
 
                               
Relocated stores
          1       2       1  
Pre-opening costs (000’s)
  $ 1,209     $ 1,720     $ 7,455     $ 8,712  
Balance Sheet Information:
                               
 
                               
Average inventory per store (000’s) (a)
  $ 706.5     $ 759.0     $ 706.5     $ 759.0  
Inventory turns
    3.02       2.89       2.88       2.79  
Financed inventory (a)
    39.1 %     43.0 %     39.1 %     43.0 %
Treasury shares:
                               
Shares purchased (000’s)
    98       318       419       1,598  
Cost (000’s)
  $ 4,515     $ 11,367     $ 15,289     $ 53,866  
(a) Assumes average inventory cost, excluding inventory in transit.
               

5

Supplemental LIFO Information
(Unaudited)
(in thousands, except per share amounts)

                                 
    Fourth Quarter Ended   Fiscal Year Ended    
    December 26,   December 27,   December 26,   December 27,
    2009   2008   2009   2008
LIFO provision, pre tax
  $ (1,501 )   $ 20,288     $ 6,932     $ 42,795  
Net income
  $ 38,253     $ 24,712     $ 115,466     $ 81,930  
LIFO provision, net of tax
    (976 )     12,544       4,374       26,291  
 
                               
Net income without LIFO
  $ 37,277     $ 37,256     $ 119,840     $ 108,221  
 
                               
Earnings Per Diluted Share:
                               
Net income
  $ 1.04     $ 0.67     $ 3.15     $ 2.19  
LIFO provision, net of tax
    (0.03 )     0.34       0.12       0.70  
 
                               
Net income without LIFO
  $ 1.01     $ 1.01     $ 3.27     $ 2.89  
 
                               

The non-GAAP financial information presented herein should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. However, we believe that non-GAAP reporting, giving effect to the adjustments shown in the reconciliation above, provides meaningful information and therefore we use it to supplement our GAAP guidance. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non-GAAP adjustments shown in the above reconciliations and to provide an additional measure of performance.

6


The following information was filed by Tractor Supply Co (TSCO) on Wednesday, January 27, 2010 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one year to another to evaluate Tractor Supply Co's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Tractor Supply Co.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account