Dollar General Expects to Restate Earnings; Maintains Current Year Guidance

Apr 30, 2001, 01:00 ET from Dollar General Corporation

    GOODLETTSVILLE, Tenn., April 30 /PRNewswire/ -- Dollar General Corporation
 (NYSE:   DG) announced today that it expects to delay the filing of its annual
 report on Form 10-K for the fiscal year 2000 in anticipation of restating its
 audited financial statements for fiscal years 1998 and 1999 as well as
 restating the unaudited financial information for the fiscal year 2000 as
 previously released.  The Company has become aware of certain accounting
 irregularities, and the audit committee of the Company's board of directors is
 conducting an investigation of these irregularities.  The audit committee has
 engaged the law firm of Dechert Price & Rhoads to assist with its
 investigation, and Dechert Price & Rhoads, on behalf of the audit committee,
 has retained the independent accounting firm Arthur Andersen, LLP.  In the
 investigative process, the Company and the audit committee are reviewing
 allegations of fraudulent behavior in connection with certain of the
 accounting irregularities and are reviewing the Company's internal accounting
 controls and financial reporting processes.
     Based on management's preliminary investigation, management currently
 estimates a reduction in aggregate earnings of approximately $0.07 per share
 over the three-year period from the previously reported total earnings of
 $1.81 per share over the same three-year period.  Specifically, management's
 preliminary investigation reflects the possibility of a material adverse
 effect on the previously announced earnings for fiscal 1998 and 1999 and a
 minor positive effect on the previously reported results for fiscal 2000.
 Management further cautions that the final restatements as audited could
 result in an increase or decrease in the aggregate earnings effect and a
 further shifting of results among the specified years within the three-year
 period.
     In making the announcement, Dollar General Chairman and CEO Cal Turner,
 Jr., said, "This action is unprecedented in the history of our Company and is
 certainly regrettable.  I am confident that our investigation of these matters
 will result in a thorough review of our previously released financial
 statements for each period and will also establish the leadership and
 processes that will prevent these accounting irregularities from recurring.
     "The anticipated restatements are not expected to have a material effect
 on the future earnings of the Company.  In fact, our performance during the
 first quarter of the year reinforces our belief that our strategy has
 exceptional potential for growth," Turner said.  "We remain confident about
 our prospects and we continue to have an expectation that earnings, excluding
 non-recurring costs that may be incurred with any restatement, will be between
 $0.71 and $0.73 per share for the full year."
     In commenting on the current year, Turner noted:
 
     * Same-store sales for April are expected to increase 8 to 9 percent, and
       for the first quarter we believe same-store sales will be between 6 and
       7 percent.  Customers have reacted enthusiastically to the layout
       changes we made and to the highly consumable items we added to the
       assortment last year.
     * We are achieving strong sales increases while simultaneously controlling
       our inventory better.  Our stores are doing a much better job of placing
       consistent orders on the consumable basics, resulting in improved in-
       stock levels for our customers.
     * We are on target to open between 200 and 250 stores in the first
       quarter, a great start toward our goal of opening 600 to 700 stores for
       the full year.
     * Our Zanesville, Ohio distribution center opened successfully and on time
       in April, providing additional capacity for an efficient flow of
       merchandise to our stores.
     * Our technology agenda is on track and will lay the foundation for
       increased inventory productivity.
 
     The Company expects to reschedule its annual meeting of shareholders from
 June 4 to a date yet to be determined.  The Company will also delay the
 reporting of first quarter fiscal 2001 earnings from the previously announced
 release date of Monday, May 14, 2001.
     This press release contains historical and forward-looking information.
 The forward-looking statements are made pursuant to the safe harbor provisions
 of the Private Securities Litigation Reform Act of 1995.  The Company believes
 the assumptions underlying these forward-looking statements are reasonable;
 however, any of the assumptions could be inaccurate, and therefore, actual
 results may differ materially from those projected in the forward-looking
 statements as a result of certain risks and uncertainties, including, but not
 limited to, general transportation and distribution delays or interruptions,
 inventory risks due to shifts in market demand, changes in product mix,
 interruptions in suppliers' business, fuel price and interest rate
 fluctuations, costs and delays associated with building, opening and operating
 new distribution centers and stores, the results of the restatement process
 and the audit of any anticipated restatement of company financial statements,
 and the impact of any litigation and regulatory process related to such
 potential restatements.  The Company undertakes no obligation to publicly
 release any revisions to any forward-looking statements contained herein to
 reflect events or circumstances occurring after the date of this report or to
 reflect the occurrence of unanticipated events.
     Dollar General operates more than 5,000 neighborhood stores in 25 states.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X32524107
 
 

SOURCE Dollar General Corporation
    GOODLETTSVILLE, Tenn., April 30 /PRNewswire/ -- Dollar General Corporation
 (NYSE:   DG) announced today that it expects to delay the filing of its annual
 report on Form 10-K for the fiscal year 2000 in anticipation of restating its
 audited financial statements for fiscal years 1998 and 1999 as well as
 restating the unaudited financial information for the fiscal year 2000 as
 previously released.  The Company has become aware of certain accounting
 irregularities, and the audit committee of the Company's board of directors is
 conducting an investigation of these irregularities.  The audit committee has
 engaged the law firm of Dechert Price & Rhoads to assist with its
 investigation, and Dechert Price & Rhoads, on behalf of the audit committee,
 has retained the independent accounting firm Arthur Andersen, LLP.  In the
 investigative process, the Company and the audit committee are reviewing
 allegations of fraudulent behavior in connection with certain of the
 accounting irregularities and are reviewing the Company's internal accounting
 controls and financial reporting processes.
     Based on management's preliminary investigation, management currently
 estimates a reduction in aggregate earnings of approximately $0.07 per share
 over the three-year period from the previously reported total earnings of
 $1.81 per share over the same three-year period.  Specifically, management's
 preliminary investigation reflects the possibility of a material adverse
 effect on the previously announced earnings for fiscal 1998 and 1999 and a
 minor positive effect on the previously reported results for fiscal 2000.
 Management further cautions that the final restatements as audited could
 result in an increase or decrease in the aggregate earnings effect and a
 further shifting of results among the specified years within the three-year
 period.
     In making the announcement, Dollar General Chairman and CEO Cal Turner,
 Jr., said, "This action is unprecedented in the history of our Company and is
 certainly regrettable.  I am confident that our investigation of these matters
 will result in a thorough review of our previously released financial
 statements for each period and will also establish the leadership and
 processes that will prevent these accounting irregularities from recurring.
     "The anticipated restatements are not expected to have a material effect
 on the future earnings of the Company.  In fact, our performance during the
 first quarter of the year reinforces our belief that our strategy has
 exceptional potential for growth," Turner said.  "We remain confident about
 our prospects and we continue to have an expectation that earnings, excluding
 non-recurring costs that may be incurred with any restatement, will be between
 $0.71 and $0.73 per share for the full year."
     In commenting on the current year, Turner noted:
 
     * Same-store sales for April are expected to increase 8 to 9 percent, and
       for the first quarter we believe same-store sales will be between 6 and
       7 percent.  Customers have reacted enthusiastically to the layout
       changes we made and to the highly consumable items we added to the
       assortment last year.
     * We are achieving strong sales increases while simultaneously controlling
       our inventory better.  Our stores are doing a much better job of placing
       consistent orders on the consumable basics, resulting in improved in-
       stock levels for our customers.
     * We are on target to open between 200 and 250 stores in the first
       quarter, a great start toward our goal of opening 600 to 700 stores for
       the full year.
     * Our Zanesville, Ohio distribution center opened successfully and on time
       in April, providing additional capacity for an efficient flow of
       merchandise to our stores.
     * Our technology agenda is on track and will lay the foundation for
       increased inventory productivity.
 
     The Company expects to reschedule its annual meeting of shareholders from
 June 4 to a date yet to be determined.  The Company will also delay the
 reporting of first quarter fiscal 2001 earnings from the previously announced
 release date of Monday, May 14, 2001.
     This press release contains historical and forward-looking information.
 The forward-looking statements are made pursuant to the safe harbor provisions
 of the Private Securities Litigation Reform Act of 1995.  The Company believes
 the assumptions underlying these forward-looking statements are reasonable;
 however, any of the assumptions could be inaccurate, and therefore, actual
 results may differ materially from those projected in the forward-looking
 statements as a result of certain risks and uncertainties, including, but not
 limited to, general transportation and distribution delays or interruptions,
 inventory risks due to shifts in market demand, changes in product mix,
 interruptions in suppliers' business, fuel price and interest rate
 fluctuations, costs and delays associated with building, opening and operating
 new distribution centers and stores, the results of the restatement process
 and the audit of any anticipated restatement of company financial statements,
 and the impact of any litigation and regulatory process related to such
 potential restatements.  The Company undertakes no obligation to publicly
 release any revisions to any forward-looking statements contained herein to
 reflect events or circumstances occurring after the date of this report or to
 reflect the occurrence of unanticipated events.
     Dollar General operates more than 5,000 neighborhood stores in 25 states.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X32524107
 
 SOURCE  Dollar General Corporation