Dollar General Falls After Reporting 25 Million Secondary Offering
On Monday evening Dollar General (NYSE: DG) reported earnings. Yet, perhaps more interesting was the company's announcement that it would put up 25 million common shares in a secondary public offering. None of the company's shares are being offered and the company will not be receiving any of the proceeds.
Currently, shares of Dollar General are trading near $47, down about 3% on the session.
Dollar General also reported earnings of $0.63 per share, slightly higher than the $0.60 estimate, and quarterly sales of $3.9B.
Reported net income is up 36%, and company raised the 2012 full-year financial outlook because of the adjusted earnings per share. Overall the Company expects total sales to increase between 8 to 9% in the next 53-week period.
The company expects to repurchase its outstanding senior subordinated notes through a refinancing at the first scheduled call date in July 2012.
Lastly, “the Company plans to open approximately 625 new stores, including 40 Dollar General Market stores in 2012. In addition, the Company plans to remodel or relocate a total of approximately 550 stores.” Dollar General sets aside approximately 65 percent of capital spending for investment in store growth and development.
Dollar General specializes in low cost items for households who feel the recession crunch.
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