On Friday, Shares of Frontier Communications Corporation (NASDAQ:FTR), lost -2.36% to $5.39.
Frontier Communications Corporation applauded today’s decision by the Federal Communications Commission (FCC) approving its projected acquisition of Verizon’s wireline, broadband and video operations, counting the FiOS® network, in California, Florida and Texas. The company is presently also seeking approval from the California Public Utilities Commission and the Public Utilities Commission of Texas, and has received Hart-Scott-Rodino federal antitrust clearance. Pending commission approval in Texas and California, the company anticipates closing the transaction at the end of the first quarter of 2016.
Daniel J. McCarthy, Frontier’s President and Chief Executive Officer said, “We are happy the FCC moved swiftly and smartly to approve this acquisition, releasing an Order in advance of the FCC’s internal deadline for review of such transactions. The FCC views this transaction as being in the public interest and benefiting customers in the three attained states. We agree, and believe it will further benefit those across the rest of the Frontier footprint as well. By doubling our size, we will add scale and scope to our operations, strengthen our product and service offerings, and improve the customer experience. We look forward to demonstrating our commitment to broadband investment and deployment in California, Florida and Texas. Soon, consumers and businesses in these states will benefit from our extensive experience, our high-touch local engagement administration model, the focused use of the fiber-rich network, and our active involvement in the communities we serve.” McCarthy added, “Our aim is to deliver the life-changing benefits of broadband to an additional 750,000 households at speeds of 25Mbps/2-3Mbps across the entire Frontier multi-state footprint, counting California, Florida and Texas, by the end of 2020.”
Frontier Communications Corporation, a communications company, provides regulated and unregulated voice, data, and video services to residential, business, and wholesale customers in the United States.
Finally, Dollar Tree, Inc. (NASDAQ:DLTR), ended its last trade with 1.63% gain, and closed at $68.09.
Dollar Tree stated results for its second fiscal quarter ended August 1, 2015.
Merger Integration
On July 6, 2015, Dollar Tree accomplished its acquisition of Family Dollar Stores, Inc. Since that date, the Company has been executing its integration plan.
Sasser added, “We are very happy to have successfully accomplished the acquisition. We are now an organization with annual sales surpassing $19 billion, more than 13,800 stores across North America and a network of more than 145,000 associates. We remain confident in our ability to deliver $300 million in annual run-rate synergies by the end of the third year post-acquisition. This combination provides us with the unique opportunity to leverage our multiple banners to better serve a broader range of customers, while enhancing our ability to deliver long-term profitable growth for our shareholders.”
Second Quarter Results
Net sales raised 48.3% to $3.01 billion from $2.03 billion in the preceding year’s second quarter. The improvement was the result of $811.6 million in sales from the Family Dollar segment since closing on the acquisition, and a same-store sales improvement of 2.7% on a constant currency basis for the Dollar Tree segment. Same-store sales raised 4.5% in the preceding-year period for the Dollar Tree segment. Adjusted for the impact of Canadian currency fluctuations, the same-store sales improvement was 2.4%. The positive same-store sales were driven by improvements in customer count and average ticket.
Gross profit raised by $161.1 million, or 23.2%, to $855.2 million in the second quarter contrast to $694.1 million in the preceding year’s second quarter. The dollar improvement was primarily driven by $105.9 million of gross profit for Family Dollar in addition to higher sales at Dollar Tree. As a percent of sales, gross margin reduced to 28.4% contrast to 34.2% in the preceding year. The primary contributors to the decrease were $60 million of markdown expense for Family Dollar related to SKU rationalization and planned liquidations, $11.1 million for Family Dollar related to the amortization of the stepped up inventory basis and the impact of the overall lower-margin product mix for the Family Dollar business.
Selling, general, and administrative expenses were 24.3% of sales contrast to 24.1% of sales in the preceding year’s second quarter. Acquisition-related costs were $17.7 million in the second quarter of 2015 and $7.5 million in the second quarter of 2014. Not Taking Into Account acquisition-related costs, selling, general and administrative expenses were flat at 23.7% of sales for both years.
Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise at the fixed price of $1.00. The company’s stores provide consumable merchandise, which comprises candy and food, and health and beauty care products; and everyday consumables, such as paper and chemicals, and frozen and refrigerated food.
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