$2.40 billion compared to $2.01 billion as of February 3, 2012, an
increase of 13 percent on a per-store basis. Annual inventory turns were
5.0 times in 2012. The increase in per-store inventories was due to
several factors including new items introduced in 2012, improved
presentation levels of select categories and early receipt of items
related to the Company's 2013 planogram changes, including the "Phase
Five" initiative to increase productivity in older format stores.
Total additions to property and equipment in 2012 were $572 million, including: $155 million for new leased stores; $132 million for stores purchased or built by the Company; $83 million for distribution centers; $80 million for remodels and relocations of existing stores; $71 million for improvements and upgrades to existing stores; $27 million for information systems upgrades and technology-related projects; and $17 million for transportation-related capital.
During 2012, the Company opened 625 new stores and remodeled or relocated 592 stores.
In 2012, the Company repurchased $671 million, or 14.4 million shares, under its share repurchase program, including $75 million, or 1.7 million shares, repurchased in the 2012 fourth quarter. Since the inception of the program in December 2011, the Company has repurchased 19.3 million shares totaling $856 million. Including an additional $500 million authorization by the Company's board of directors on March 19, 2013, $644 million remains available for repurchase under the Company's share repurchase program.
Fiscal 2013 Financial Outlook
For the 2013 fiscal year, the Company expects total sales to increase 10 to 12 percent over the 2012 fiscal year. Same-store sales are expected to increase 4 to 6 percent. Operating profit for 2013 is expected to be in the range of $1.780 billion to $1.845 billion. The Company expects sales and EPS growth to be stronger in the second half of the year as merchandising initiatives are implemented, including the rollout of tobacco products to substantially all stores and the completion of "Phase Five." In particular, the first quarter sales comparison is very challenging as the Company laps a very strong 6.7 percent same-store sales increase in the 2012 first quarter.
The Company expects full year interest expense to be in the range of $100 million to $110 million. Diluted EPS for the fiscal year, adjusted to exclude potential charges or expenses relating to amendments to or refinancing of any notes, loans or revolving credit facilities and any expenses resulting from potential secondary stock offerings, is expected to be approximately $3.15 to $3.30, based on approximately 327 million weighted average diluted shares, assuming share repurchases. The full year 2013 effective tax rate is expected to be approximately 38 percent.
Capital expenditures are expected to be in the range of $575 million to $625 million in 2013. Approximately 50 percent of planned capital spending is for investment in store growth and development, including new stores, remodels, relocations and purchases of existing store locations; approximately 30 percent is planned for transportation, distribution and special projects; and the remaining 20 percent is expected to be spent on maintenance capital. The Company plans to open approximately 635 new stores, including approximately 20 Dollar General Market stores and 40 Dollar General Plus stores. In addition, the Company plans to remodel or relocate a total of approximately 550 stores. Square footage is again expected to increase by approximately 7 percent. The Company expects its new Pennsylvania distribution center to be fully operational in the first quarter of fiscal 2014.
The Company plans to utilize a portion of its cash flows in 2013 to repurchase common stock under its share repurchase program, while targeting a ratio of adjusted debt, which includes an adjustment to estimate capitalized rent based on rent expense times 8, to adjusted EBITDAR (defined as earnings before interest, income taxes, depreciation, amortization and rent) at or below 3.0 to 1.
The volatility of the macroeconomic environment continues to pressure the consumer and impact the Company's cost of purchasing and delivering merchandise to its stores. Management continues to closely monitor customers' responses to the economic and competitive climates.
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