-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, NQFwheQ41Yu3a33XiNTZ8fgnYr+Cnvqe93J/O2VafsGr4OZFztemOJULUOxHrOJ2 E2pAVRFFXPDsAYhirnqWUA== 0000354950-94-000004.txt : 19940902 0000354950-94-000004.hdr.sgml : 19940902 ACCESSION NUMBER: 0000354950-94-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940731 FILED AS OF DATE: 19940830 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HOME DEPOT INC CENTRAL INDEX KEY: 0000354950 STANDARD INDUSTRIAL CLASSIFICATION: 5211 IRS NUMBER: 953261426 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-08207 FILM NUMBER: 94547133 BUSINESS ADDRESS: STREET 1: 2727 PACES FERRY RD CITY: ATLANTA STATE: GA ZIP: 30339 BUSINESS PHONE: 4044338211 10-Q 1 THE HOME DEPOT FY 1995 2QTR 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 1994 - - - OR - TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-8207 THE HOME DEPOT, INC. (Exact name of registrant as specified in its charter) Delaware 95-3261426 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 2727 Paces Ferry Road Atlanta, Georgia 30339 (Address of principal executive offices) (Zip Code) (404) 433-8211 (Registrant's telephone number, including area code) (Former name, former address and former fiscal year, if changed since last report.) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. $.05 par value 451,958,275 Shares, as of 8/17/94 Page 1 of 15 PAGE THE HOME DEPOT, INC. AND SUBSIDIARIES INDEX TO FORM 10-Q July 31, 1994 Page Part I. Financial Information: Item 1. Financial Statements CONSOLIDATED STATEMENTS OF EARNINGS - Three-Month and Six-Month Periods Ended July 31, 1994 and August 1,1993........... 3 CONSOLIDATED CONDENSED BALANCE SHEETS - As of July 31, 1994 and January 30, 1994......... 4 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - Six-Month Period Ended July 31, 1994 and August 1, 1993........... 5 NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS............................. 6 Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition..........................................8-11 Part II. Other Information: Item 4. Submission of Matters to a Vote on Security Holders...................................... 12 Item 6. Exhibits and Reports on 8-K.................. 12 Signature Page........................................ 13 Index to Exhibits...................................... 14 Page 2 of 15 PAGE PART I. FINANCIAL INFORMATION THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (In Thousands, Except Per Share Data)
Three Months Ended Six Months Ended July 31, August 1, July 31, August 1, 1994 1993 1994 1993 Net Sales $3,287,036 $2,453,756 $6,159,165 $4,633,974 Cost of Merchandise Sold 2,391,219 1,791,922 4,454,591 3,370,440 Gross Profit 895,817 661,834 1,704,574 1,263,534 Operating Expenses: Selling and Store Operating 538,610 405,336 1,057,999 794,581 Pre-opening 10,066 4,822 19,779 10,320 General and Administrative 55,893 45,257 107,784 91,872 Total Operating Expenses 604,569 455,415 1,185,562 896,773 Operating Income 291,248 206,419 519,012 366,761 Interest Income (Expense): Interest Income 8,325 16,927 16,722 32,697 Interest Expense (9,649) (8,132) (18,216) (16,765) Interest, Net (1,324) 8,795 (1,494) 15,932 Earnings Before Income Taxes 289,924 215,214 517,518 382,693 Income Taxes 111,910 80,710 199,700 141,390 Net Earnings $ 178,014 $ 134,504 $ 317,748 $ 241,303 Earnings Per Common and Common Equivalent Share (Note 4) $ .39 $ .30 $ .69 $ .53 Dividends Per Share $ .04 $ .03 $ .07 $ .05 Weighted Average Number of Common and Common Equivalent Shares (Note 4) 475,900 453,147 475,360 452,854
See accompanying notes to consolidated condensed financial statements. Page 3 of 15 PAGE THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (In Thousands)
July 31, January 30, 1994 1994 ASSETS Current Assets: Cash and Cash Equivalents $ 344,062 $ 99,997 Short-Term Investments 97,023 330,976 Accounts Receivable, Net 223,409 198,431 Merchandise Inventories 1,570,235 1,293,477 Other Current Assets 53,796 43,720 Total Current Assets 2,288,525 1,966,601 Property and Equipment, at cost 3,185,023 2,618,428 Less: Accumulated Depreciation and Amortization (295,614) (247,524) Net Property and Equipment 2,889,409 2,370,904 Long-Term Investments held Available for Sale 88,389 281,623 Cost in Excess of the Fair Value of Net Assets Acquired, Net 86,713 19,503 Other 39,163 62,258 $5,392,199 $4,700,889 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts Payable $ 721,781 $ 521,246 Accrued Salaries and Related Expenses 213,949 167,489 Sales Taxes Payable 85,545 57,590 Other Accrued Expenses 232,968 184,462 Income Taxes Payable 34,768 40,303 Current Installments of Long-Term Debt 1,564 1,548 Total Current Liabilities 1,290,575 972,638 Convertible Subordinated Debt 804,990 804,990 Long-Term Debt, Net of Current Maturities 36,503 37,002 Other Long-Term Liabilities 95,702 44,332 Deferred Income Taxes 20,401 27,827 Stockholders' Equity: Common Stock - 451,928,000 shares outstanding at 07/31/94 and 449,364,000 shares outstanding at 01/30/94 22,596 22,468 Paid-in Capital 1,486,058 1,436,029 Retained Earnings 1,686,735 1,400,575 Cumulative Translation Adjustments (5,900) (121) Unrealized Holding Loss on Investments (610) --- 3,188,879 2,858,951 Less: Notes Receivable from ESOP 44,851 44,851 Total Stockholders' Equity 3,144,028 2,814,100 $5,392,199 $4,700,889
See accompanying notes to consolidated condensed financial statements. Page 4 of 15 PAGE THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (In Thousands)
Six Months Ended July 31, August 1, 1994 1993 Cash Provided from Operations: Net Earnings $ 317,748 $ 241,303 Reconciliation of Net Earnings to Net Cash Provided by Operations: Depreciation and Amortization 60,425 42,025 Increase in Accounts Payable and Accrued Expenses 294,667 193,352 Increase in Merchandise Inventories (223,441) (186,177) Increase in Income Taxes Payable 2,969 27,108 Increase in Receivables, Net (17,642) (9,865) Other, Net 2,954 (3,998) Total 119,932 62,445 Net Cash Provided by Operations 437,680 303,748 Cash Flows From Investing Activities: Capital Expenditures (524,213) (385,642) Initial Acquisition of Canadian Partnership Interest (161,548) --- Sale (Purchases) of Short-Term Investments, Net 49,558 102,196 Purchase of Long-Term Investments (67,710) (618,429) Proceeds from Maturities of Long-Term Investments 39,509 66,222 Proceeds from Sales of Long-Term Investments 404,941 478,038 Proceeds from Sale of Property and Equipment 15,760 24,761 Repayments of Advances Secured by Real Estate, Net 40,532 13,222 Net Cash Used in Investing Activities $ (203,171) $ (319,632) Cash Flows From Financing Activities: Proceeds from Sales of Common Stock, Net 41,653 44,762 Cash Received from ESOP --- 179 Principal Repayments of Long-Term Debt (510) (745) Cash Dividends Paid to Stockholders (31,587) (23,442) Net Cash Provided by Financing Activities 9,556 20,754 Increase in Cash and Cash Equivalents 224,065 4,870 Cash and Cash Equivalents, Beginning of Period 99,997 121,744 Cash and Cash Equivalents, End of Period $ 344,062 $ 126,614
See accompanying notes to consolidated condensed financial statements. Page 5 of 15 THE HOME DEPOT, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Unaudited) 1. Summary of Significant Accounting Policies: Basis of Presentation The accompanying consolidated condensed financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal reoccurring accruals) considered necessary for a fair presentation have been included. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended January 30, 1994 as filed with the Securities and Exchange Commission (File No. 1-8207). 2. Acquisition of Interest in Canadian Company Effective February 28, 1994, the Company entered into a partnership and, as a result, acquired 75% of Aikenhead's Home Improvement Warehouse, now known as The Home Depot Canada, which was operating seven warehouse-style home improvement stores at the time of the acquisition in Toronto, London and Kitchener, Ontario, Canada. Subsequent to the acquisition, the partnership has opened three stores located in Edmonton and Calgary, Alberta and Vancouver, British Columbia. At any time after the sixth anniversary of the purchase, the Company has the option to purchase, or the other partner has the right to cause the Company to purchase, the remaining 25% of The Home Depot Canada. The option price is based on the lesser of fair market value or a value to be determined by an agreed-upon formula as of the option exercise date. The purchase price paid for the 75% interest in The Home Depot Canada was approximately $162,000,000 and is being accounted for by the purchase method of accounting. The excess purchase price over the estimated fair value of the net assets as of the acquisition date has been recorded as goodwill and will be amortized over 40 years. 3. Accounting for Investments In the first quarter of fiscal 1994, the Company implemented Statement of Financial Accounting Standards No. 115, "Accounting for Certain Investments in Debt and Equity Securities" (SFAS 115). This standard addresses the accounting and reporting for investments in equity securities that have readily determinable fair values and for all investments in debt securities. Under SFAS 115, the Company is required to classify its debt and marketable equity securities in one of three categories: trading, available for sale, or held to maturity. Trading securities are bought and held primarily for the purpose of selling them in the near term. Held to maturity securities are securities that the Company has the ability and intent to hold until maturity. All other securities not included in trading or held to maturity are classified as available for sale. Trading securities are recorded at fair value with unrealized gains and losses included in earnings. Held to maturity securities are recorded at amortized cost, adjusted for amortization or accretion of premiums or discounts. Unrealized gains and losses on securities available for sale are excluded from earnings and are reported as a separate component of stockholders' equity until realized. SFAS 115 has not had a significant impact on the Company's results of operations. Page 6 of 15 PAGE THE HOME DEPOT, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Unaudited) 4. Earnings Per Share Earnings per common and common equivalent share are based on the weighted average number of shares and equivalent shares outstanding. Common equivalent shares used in the calculation of earnings per share for the three and six month period ended August 1, 1993 represent options to purchase shares granted under the Company's employee stock option and stock purchase plans. The Company's 4.5% Convertible Subordinated Notes (Notes), due in 1997, issued in 1992, are common stock equivalents. For the three and six month periods ended July 31, 1994, the Notes were dilutive and are assumed to be converted as of the beginning of the respective accounting periods for purposes of calculating earnings per share. Earnings per share is calculated by dividing net earnings, adjusted for tax effected net interest and issue costs on the Notes, by weighted average shares. Weighted average number of common and common equivalent shares include shares issuable under the stock plans mentioned above and the 20,774,000 shares issuable upon conversion of the Notes. For the three and six month periods ended July 31, 1993 the Notes were not dilutive and therefore were excluded from the earnings per share calculation. Page 7 of 15 PAGE THE HOME DEPOT, INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION The data below reflect selected sales data and the percentage relationship between sales and major categories in the Consolidated Statements of Earnings and the percentage change in the dollar amounts of each of the items.
Percentage 3 Months Ended 6 Months Ended Increase(Decrease) Jul 31, Aug 1, Jul 31, Aug 1, in Dollar Amounts 1994 1993 1994 1993 3 Months 6 Months Selected Consolidated Statements of Earnings Data Net Sales 100.0% 100.0% 100.0% 100.0% 34.0% 32.9% Gross Profit 27.2 27.0 27.7 27.3 35.4 34.9 Operating Expenses: Selling and Store Operating 16.4 16.5 17.2 17.2 32.9 33.2 Pre-Opening .3 .2 .3 .2 108.8 91.7 General and Administrative 1.7 1.9 1.8 2.0 23.5 17.3 Total Operating Expenses 18.4 18.6 19.3 19.4 32.8 32.2 Operating Income 8.8 8.4 8.4 7.9 41.1 41.5 Interest Income (Expense): Interest Income .3 .7 .3 .7 (50.8) (48.9) Interest Expense (.3) (.3) (.3) (.4) 18.7 8.7 Interest, Net .0 .4 .0 .3 N/A N/A Earnings Before Income Tax 8.8 8.8 8.4 8.2 34.7 35.2 Income Taxes 3.4 3.3 3.2 3.0 38.7 41.3 Net Earnings 5.4% 5.5% 5.2% 5.2% 32.3% 31.7% Selected Consolidated Sales Data Number of Customer Transactions 78,771,000 62,240,000 149,631,000 118,110,000 26.6% 26.7% Average Amount of Sales Per Transaction $ 41.73 $ 39.42 $ 41.16 $ 39.23 5.9 4.9 Weighted Average Weekly Sales Per Operating Store $869,000 $838,000 $833,000 $802,000 3.7 3.9 Weighted Average Sales Per Square Foot $ 442 $ 442 $ 424 $ 423 0.0 0.2
Page 8 of 15 THE HOME DEPOT, INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION (CONTINUED) RESULTS OF OPERATIONS Sales for the second quarter of fiscal 1994 increased 34% to $3,287,036,000 compared to sales of $2,453,756,000 for the second quarter of fiscal 1993. For the first six months of fiscal 1994 sales increased 33% to $6,159,165,000 compared to sales of $4,633,974,000 for the comparable period of fiscal 1993. This sales increase was attributable to new stores (298 at the end of the second quarter of fiscal 1994 compared to 230 at the end of the second quarter of fiscal 1993) and a comparable store-for-store sales increase of 6%. The percentage increase in comparable store sales would have been 7% for the quarter after excluding all sales from the ten stores in southern Florida that were significantly affected by Hurricane Andrew. For the first six months of fiscal 1994, comparable store-for-store sales increased 7% but would have been 9% without the ten southern Florida stores referred to above. Gross profit as a percent of sales was 27.2% for the second quarter of fiscal 1994 compared to 27.0% for the comparable period of fiscal 1993. For the first six months of fiscal 1994, gross profit as a percent of sales was 27.7% compared to 27.3% for the comparable period of fiscal 1993. These increases were attributable to, among other things, changes in merchandise mix and higher vendor volume rebates. Operating expenses as a percent of sales decreased to 18.4% and 19.3% for the second quarter and first six months of fiscal 1994, respectively, compared to 18.6% and 19.4% for the second quarter and first six months of fiscal 1993, respectively. Selling and store operating expenses as a percent of sales decreased to 16.4% for the second quarter of fiscal 1994 compared to 16.5% for the same period of fiscal 1993. This decrease was due to, among other things, no relocations for the second quarter of fiscal 1994 compared to one relocation during the same period of fiscal 1993 and efficiencies in advertising and other operating expenses due to higher sales volumes. For the first six months of both fiscal 1994 and fiscal 1993, selling and store operating expenses were 17.2%. Pre-opening expenses as a percent of sales increased to 0.3% for both the second quarter and first six months of fiscal 1994 compared to 0.2% for both comparable periods of fiscal 1993. The increase for the quarter was attributable to 12 new store openings in fiscal 1994 compared to six new store openings and one relocation in the same period of fiscal 1993. The increase for the first six months of fiscal 1994 was attributable to 28 new store openings plus five relocations compared to 16 new store openings plus three relocations in the same period of fiscal 1993. General and administrative expenses as a percent of sales decreased to 1.7% and 1.8% for the second quarter and first six months of fiscal 1994, respectively, compared to 1.9% and 2.0% for the second quarter and first six months of fiscal 1993, respectively. These decreases were attributable to economies from increased sales volumes and continued focus on cost controls. Interest income as a percent of sales decreased to 0.3% for the second quarter and first six months of fiscal 1994 from 0.7% for the second quarter and first six months of fiscal 1993. This decrease was attributable to a lower investment base and lower effective yields due to shorter maturities. Interest expense as a percent of sales was 0.3% for both the second quarter of fiscal 1994 and fiscal 1993. For the first six months of fiscal 1994, interest expense as a percent of sales decreased to 0.3% from 0.4% for the same period of fiscal 1993. This decrease was attributable to higher capitalized interest due to having more owned stores under construction partially offset by interest on capitalized leases. Page 9 of 15 PAGE THE HOME DEPOT, INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION (CONTINUED) RESULTS OF OPERATIONS--(Continued) The Company's combined Federal and state effective income tax rate increased to 38.6% for the second quarter of fiscal 1994 compared to 37.5% for the same period of fiscal 1993 due to the implementation of the Omnibus Budget Reconciliation Act of 1993 and fewer tax advantaged investments. For the first six months of fiscal 1994, the Company's combined Federal and state effective income tax rate increased to 38.6% from 36.9% for the same period of fiscal 1993. This increase was attributable to the reasons noted above and in addition, the Federal and state combined effective rate for the first six months of fiscal 1993 would have been 37.5%, however Statement of Financial Accounting Standards No. 109 "Accounting for Income Taxes" was implemented in first quarter of fiscal 1993 which reduced the Federal and state effective rate to 36.9%. Net earnings as a percent of sales was 5.4% for the second quarter of fiscal 1994 compared to 5.5% for the same period of fiscal 1993. This decrease was attributable to lower net interest income and higher taxes, offset partially by higher gross profits and lower operating expenses, as described above. For the first six months of both fiscal 1994 and fiscal 1993, net earnings as a percent sales was 5.2%. Earnings per share was $.39 and $.69 for the second quarter and first six months of fiscal 1994, respectively, compared to $.30 and $.53 for the second quarter and first six months of fiscal 1993, respectively. Weighted average shares were 5% higher for both the second quarter and first six months of fiscal 1994 compared to the same periods of fiscal 1993 due to the dilution attributable to the Company's outstanding 4.5% Convertible Notes as discussed in Exhibit 11.1 and footnote No. 4. LIQUIDITY AND CAPITAL RESOURCES Cash flow generated from store operations provides the Company with a significant source of liquidity. Additionally, a significant portion of the Company's inventory is financed under vendor credit terms. During the first six months of fiscal 1994, the Company opened 28 stores, acquired seven stores in Canada, relocated five of its existing stores and closed one store. During the remainder of fiscal 1994, the Company plans to open approximately 42 additional new stores and relocate four existing stores. Of the 70 new stores and nine relocations planned for fiscal 1994, it is expected that 69 will be owned and 10 will be leased. The Company currently plans to open approximately 85 new stores and may relocate 10 stores during fiscal 1995. Although some of these locations will be leased directly, it is expected that many may be obtained through the purchase of pre-existing leasehold interests, the acquisition of land parcels and the construction or purchase of buildings during fiscal 1994. While the cost of new stores to be constructed and owned by the Company varies widely, principally due to land costs, new store costs (including land, building and fixtures) are currently estimated to average approximately $12,700,000 per location. The Company may purchase leasehold interests at varying amounts depending upon the value of such properties. The cost to remodel (including leasehold interests) and fixture stores to be leased is expected to average approximately $4,000,000 per store. In addition, each new store will require approximately $2,500,000 to finance inventories, net of vendor financing. Page 10 of 15 PAGE THE HOME DEPOT, INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION (CONTINUED) LIQUIDITY AND CAPITAL RESOURCES--(Continued) In addition, the Company paid approximately $162,000,000 on February 28, 1994 in conjunction with the acquisition of a 75% interest in Aikenhead's Home Improvement Warehouse (now known as The Home Depot Canada) in Canada. After six years, the Company has the option to purchase, or the other partner has the right to cause the Company to purchase, the remaining 25% of The Home Depot Canada. At the time of acquisition, Aikenhead's was operating seven stores and the Company anticipates having 12 stores in Canada by the end of fiscal 1994. These Canadian stores have been included in the planned store totals discussed above. As of July 31, 1994, the Company had $441,085,000 in cash and short-term investments as well as $88,389,000 in long-term investments. Management believes that its current cash position, the proceeds from short-term and long-term investments, internally generated funds, and/or the ability to obtain alternate sources of financing should enable the Company to complete its capital expenditure programs, including store expansion and renovation, through the next several fiscal years. IMPACT OF INFLATION AND CHANGING PRICES Although the Company cannot accurately determine the precise effect of inflation on its operations, it does not believe inflation has had a material effect on sales or results of operations. Page 11 of 15 PART II. OTHER INFORMATION Item 4. Submission of Matters to a Vote of Security Holders On May 25, 1994, at the Company's Annual Meeting of Stockholders, the stockholders elected the slate of nominees for election as director with votes cast as follows: Col. Frank Borman had 384,703,738 shares for and 2,883,098 shares withheld; Mr. Ronald M. Brill had 385,263,152 shares for and 2,323,684 shares withheld; and Mr. Berry R. Cox had 385,422,126 shares for and 2,164,710 shares withheld. There were no abstentions or broker non-votes applicable to the election of directors. The stockholders also adopted the proposal to approve the Senior Officers' Bonus Pool Plan with votes cast as follows: 361,061,626 shares for; 23,172,405 shares against; 3,352,804 shares abstained; and 63,076,253 shares of non-votes. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits 11.1 Computation of Earnings per Common and Common Equivalent Share (b) Reports on Form 8-K No reports on Form 8-K were filed during the quarter ended July 31, 1994. Page 12 of 15 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. THE HOME DEPOT, INC. (Registrant) By: /s/ Arthur M. Blank Arthur M. Blank President /s/ Ronald M. Brill Ronald M. Brill Executive Vice President Chief Financial Officer (Date) Page 13 of 15 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. THE HOME DEPOT, INC. (Registrant) By: Arthur M. Blank President Ronald M. Brill Executive Vice President Chief Financial Officer (Date) Page 13 of 15 THE HOME DEPOT, INC. AND SUBSIDIARIES INDEX TO EXHIBITS Exhibit Description Page 11.1 Computation of Earnings per Common and Common Equivalent Share............................... 15 Page 14 of 15 EX-99 2 THE HOME DEPOT FY 1995 2QTR 10-Q EXHIBIT 1.11 Exhibit 11.1 THE HOME DEPOT, INC. AND SUBSIDIARIES Computation of Earnings Per Common and Common Equivalent Share (In Thousands, Except Per Share Data)
Three Months Ended Six Months Ended July 31, August 1, July 31, August 1, 1994 1993 1994 1993 Net earnings applicable to common and common equivalent shares $178,014 $134,504 $317,748 $241,303 Tax effected interest expense, net of interest capitalized, attributable to convertible subordinated notes 5,209 - 10,340 - $183,223 $134,504 $328,088 $241,303 Shares: Weighted average number of common and common equivalent shares assuming higher of ending or average market price 455,126 453,176 454,586 452,683 Additional shares from conversion of notes 20,774 - 20,774 - 475,900 453,176 475,360 452,683 Primary earnings per common and common equivalent share $ .385 $ .297 $ .690 $ .533
(1) Common equivalent shares represent shares granted under three stock option plans and an employee stock purchase plan. (2) The Company's 4.5% Convertible Subordinated Notes, issued in 1992, are common stock equivalents. For the three and six month periods ended August 1, 1993, shares issuable upon their conversion were anti-dilutive and, therefore, were excluded from the earnings per share calculation. For the three and six month periods ended July 31, 1994, the Notes are dilutive and, accordingly, are assumed to be converted as of the beginning of the accounting periods for purposes of calculating earnings per share. Page 15 of 15 -----END PRIVACY-ENHANCED MESSAGE-----