FDO

www.familydollar.com
As the economy limps along in mid-2009 and pushes more households into lower
incomes, Family Dollar Stores !"O #oward $. %e&ine is o&erseeing continued
e'pansion and growth. #is father, %eon %e&ine, founded the company when he
was in his early 20s in (9)9, and the elder %e&ine now sports the title chairman
emeritus. Family Dollar o*ers customers a &ariety of high-+uality, good-&alue
merchandise. ,he company caters to the low- to low-middle income group
-de.ned as households under /00,000 or /0),000 of annual income1 with
o*erings of competiti&ely priced merchandise in con&enient neigh2orhood
stores. Family Dollar Stores has 0( percent of its items priced at a dollar or less.
For 2003, the Dow 4ones A&erage was down 05 percent, the worst year since
(90(. Of the S67 )00 stoc8s inde', only 25 stoc8s were up in 2003. Family Dollar
Stores led the way with an increase of 0) percent. 9ill this solid performance
continue:
#istory
;n (9)9, when Family Dollar opened its .rst store in !harlotte, <orth !arolina,
%eon %e&ine o*ered customers a &aried of good-&alued merchandise for under
/2. ,he concept was simple, =,he customers are the 2oss, and you need to 8eep
them happy.> Family Dollar went pu2lic in (9?0, achie&ed annual sales of /(00
million with @ust under 000 stores 2y (9??, opened its (,)00th store in (939 and
its 2,)00th store in (99A, and grew to nearly ),000 stores and sales approaching
/) 2illion when he retired as chairman in 2000. ;n his high school and college
years, his son #oward %e&ine wor8ed for Family Dollar. #oward was named !"O
in (993, and when his father retired in 4anuary 2000, he 2ecame chairman and
!"O. At age 59, he continues today as chairman and !"O.
,odays Facts and Financials
Family Dollar operates more than A,A00 stores in 55 states plus the District of
!olum2ia. ,he company does ha&e a small role in international 2usiness 2ecause
a2out )( percent of its merchandise is procured from international
manufacturers often through agents 2ut also from direct importing from the
manufacturers. <o single supplier accounts for more than 3 percent of the
merchandise purchases. Family Dollar Stores is ran8ed num2er 0)9 on the
Fortune )00. Family Dollar continues its strategy of geographic e'pansion and
new store openings. #ead+uartered near !harlotte, <orth !arolina, Family Dollar
employs 55,000 people, a2out 2),000 full time and the others as part-timers.
Family Dollars re&enues of /A.935 2illion in FB2003Cthe (2 months ended
August 2003Cshowed an increase of 2.2 percent o&er the year ending August
200?. As indicated in "'hi2it (, the operating pro.ts during FB2003 were /0A)
million, a decrease of A percent from FB200?. ,he net pro.t in FB2003 was /200
million, a 5 percent decrease from FB200?.
Di&isions of the !ompany
For FB2003, Family Dollar Stores 2ro8e re&enues into four 2road product
categoriesD consuma2les, home products, apparel and accessories, and seasonal
and electronics. Ea8ing comparisons from FB200? to FB2003, three of the 2road
product categories had increased sales, 2ut apparel and accessories decreased.
!onsuma2les increased 2y A.( percent and represent A(.( percent of FB2003s
total re&enues of /A.935 2illion. #ome products increased 2y 0.2 percent and
ma8e up (5.0 percent of re&enues. Apparel and accessories decreased 2y A.9
percent and ma8e up (0.( percent of re&enues. Seasonal and electronics
increased 2y 0.3 percent and ma8e up ((.) percent of re&enues. "'hi2its ( and 2
re&eal Family Dollars recent
2alance sheets.
Since Eay (993, the company has pro&ided +uarterly cash di&idends to its
shareholders. ,he amount per share of these di&idends has increased each year
-from 5.) cents per share on 4uly (), (993, to (0.) cents per share on 4uly (),
20091. ,his latest di&idend yield is a2out a (.? percent return per year, well
ahead of the industry a&erage. family Dollar continues to see8 good locations
and contractors to 2uild and maintain stores. ,he company is in&ol&ed in real
estate management, construction, and store maintenance. Family Dollar has
a2out () to 20 percent of its stores up for lease renewal each year. On Fe2ruary
23, 2009, #oward %e&ine said that the company would de.nitely try to =le&erage
the current mar8et to negotiate 2etter rents.>
;n 2003, Family Dollar opened 20) new stores, closed A5 stores, relocated (?
stores within the same shopping area or mar8et area, and e'panded 30 stores. ;n
200?, the company opened 00( new stores and closed 50 stores.
"F#;G;, ( ;ncome Statements for Family Dollar
;ncome Statements for Bears "nding August 2003, 200?, 200A
-in millions, e'cept for "7S 6 Di&idends1
Aug 03 Aug 0? Aug 0A
$e&enue /A,930.A A,305.0 A,095.3
!ost of Hoods Sold 5,A0?.3 5,)(2.2 5,2?A.)
Hross 7ro.t 2,05).3 2,022.( 2,((3.0
Hross 7ro.t Eargin 00.AI 05.0I 00.(I
SH6A "'pense (,930.) (,900.5 (,?)A.0
Depreciation 6 AmortiJation (59.A (55.( (05.A
Operating ;ncome 0?A.0 099.0 025.2
Operating Eargin ).5I ).3I ).(I
<onoperating ;ncome 0.0 0.0 0.0
<onoperating "'penses -0.)1 K K
;ncome Gefore ,a'es 0A(.3 03(.9 0((.(
;ncome ,a'es (23.? (09.0 ((A.0
<et ;ncome After ,a'es 200.( 252.9 (9).(
!ontinuing Operations 200.( 252.9 (9).(
Discontinued Operations K K K
,otal Operations 200.( 252.9 (9).(
,otal <et ;ncome / 200.( 252.9 (9).(
<et 7ro.t Eargin 0.0I 0.AI 0.(I
Diluted "7S from ,otal <et ;ncome -/1 (.AA (.A2 (.2A
Di&idends per Share 0.59 0.5) 0.5
!ompetition and ;ndustry
,he small-2o' discount retailers industry reported strong performance in the last
half of 2003 and the .rst half of 2009. ,he three largest small-2o' discount
retailers are Dollar Heneral, Family Dollar, and Dollar ,ree. ,hese three dollar
stores realiJe that they are di*erent from the giant 9alEart in many ways,
including o*ering lower prices. All three of these small-2o' companies ha&e to
deal with many ri&als, including Freds, 99 !ents Only, 9al-Eart, Gig %ots, !LS,
4.!. 7enney, Mmart, Eei@er, Sears, ,arget, 9algreen, !ostco, Mroger, and many
other small regional chains and one-of-a-8ind retailers. "'hi2it 0 compares the
three largest small-2o' discount retailers.
Dollar Heneral
#ead+uartered in ,ennessee, Dollar Henerals stores are typically located in
small towns, 2ut 2ig-city stores -usually situated in lower-income neigh2orhoods1
account for 00 percent of its total. A2out 0) percent of its products are priced at
/( or less. Dollar Heneral was ta8en pri&ate 2y aNliates of MM$ and Holdman
Sachs in 200?.
Dollar ,ree
#ead+uartered in Lirginia, Dollar ,ree stresses the /( price points and o*ers a
range of merchandise including housewares, seasonal goods, food, toys,
personal accessories, health
"F#;G;, 2 Family Dollars Galance Sheets for Bears "nding
August 2003, 200?, 200A -in millions1
Assets Aug 03 Aug 0? Aug 0A
!urrent Assets
!ash / ()3.) 3?.2 ?9.?
<et $ecei&a2les ?.0 55.5 2.5
;n&entories (,002.? (,0A).9 (,00?.9
Other !urrent Assets (5).9 009.3 293.9
,otal !urrent Assets (,055.( (,)0?.0 (,5(3.3
<et Fi'ed Assets (,0?(.9 (,0A0.? (,0??.A
Other <oncurrent Assets 25).3 2A.2 2A.A
,otal Assets 2,AA(.3 2,A25.2 2,)20.0
%ia2ilities and Shareholders "+uity Aug 03 Aug 0? Aug 0A
!urrent %ia2ilities
Accounts 7aya2le / )?0.? A55.( ))A.)
Short-,erm De2t K K K
Other !urrent %ia2ilities 593.0 53A.2 529.A
,otal !urrent %ia2ilities (,0A9.0 (,(00.0 93A.(
%ong-,erm De2t 2)0.0 2)0.0 2)0.0
Other <oncurrent %ia2ilities 33.? A9.2 ?3.)
,otal %ia2ilities (,50?.? (,559.) (,0(5.A
Shareholders "+uity
7referred Stoc8 "+uity K 0.0 0.0
!ommon Stoc8 "+uity (,2)5.( (,(?5.A (,203.5
,otal "+uity (,2)5.( (,(?5.A (,203.5
Shares Outstanding -mil.1 (50.2 (50.2 (50.2
SourceD www.familydollar.com
"F#;G;, 0 ,he ,hree %argest Small-Go' Discount $etailers
Dollar Heneral Family Dollar Dollar ,ree
2003 Annual Sales /9,5)5 Eillion /A,935 Eillion /5,A5) Eillion
Sales Hrowth 2.9I 2.2I 9.)I
2003 <et ;ncome -/(0 Eillion1 /200 Eillion /200 Eillion
%ong-,erm De2t /5,(00 Eillion /2)0 Eillion /2A3 Eillion
O of Stores 3,500 A,A00 0,A00
Store SiJe -s+ ft1 ?,000 ?,)00 to 9,000 ),000 to (0,000
O of States 0) 55 53
O of "mployees ?(,)00 55,000 5A,000
O of Distri2ution
!enters 9 9 9
Bear Started (909 (9)9 (9)0
Fortune )00 $an8 0)9 599
SourceD !ompany Form (0M $eports.
and 2eauty care products, party goods, greeting cards, and 2oo8s, mostly for /(
e&en. Dollar ,ree operates stores called Dollar ,ree, Dollar Gill, Dollar "'press,
Only (.00, and Only One. A2out 50 percent of the companys merchandise is
imported, mostly from !hina. Dollar ,ree does o*er online sales. Dollar ,ree ;nc.
recently snea8ed into the latest Fortune )00, now at num2er 599.
Eission
Family Dollars mission statement is pro&ided in "'hi2it 5.
Operations
"&en compared to 9al-Eart, Family Dollar is considered to 2e a leader in 8eeping
costs low. ,he company continues to re&iew and impro&e each step in the supply
chain, from &endor selection to stoc8ing store shel&es. Family Dollar has
underta8en initiati&es to impro&e supply chain e*ecti&eness. <early all Family
Dollar stores range in siJe from ?,)00 to 9,000 s+uare feet and are operated in
leased facilities. ,he company pursues this strategy of relati&ely small stores as
a way to open new stores in rural areas, small towns, and large ur2an neigh2or-
hoods. 9hene&er feasi2le, Family Dollar li8es to ha&e a par8ing lot located
immediately near the stores entrance, and nearly all stores ha&e only one
entrance. ,he siJe of the stores -a2out (P22 the s+uare footage of a typical 9al-
Eart Supercenter1 has appeal to customers who li8e the con&enience and short
wal8, which cannot 2e matched 2y some of the large store chains. O&er the past
few years, Family Dollar has impro&ed its logistics networ8 and is mo&ing toward
a world-class distri2ution system. !"O #oward %e&ine said. =;ts a 9al-Eart
formula. 9e ha&e to deli&er goods eNciently to the stores, and we&e 2een a2le
to do that.>
"F#;G;, 5 Eission Statement and !"Os !omment
Family Dollars mission states the three most important relationships critical to
ma8ing our 2usiness successfulD our customers, our associates, and our
in&estors. For our customers, we o*er a compelling place to shop 2y pro&iding
con&enience and low pricesQ For our associates, we o*er a compelling place to
wor8 2y pro&iding e'ceptional opportunities and rewards for achie&ementQ For
our in&estors, we o*er a compelling place to in&est 2y pro&iding outstanding
returns. ,o support its retail operations, Family Dollar operates nine automated
fullser&ice distri2ution centers -each ranging in siJe from 3)0,000 s+uare feet to
90?,000 s+uare feet1 that ship directly to company stores. ,he company uses a
9e2-2ased transportation management system, &oice-recognition software,
radio-fre+uency technology and high-speed sorting systems for 2etter
distri2ution process eNciency. Family Dollar has a strong presence in the
southern Rnited States. Se&en of its nine distri2ution centers are located in the
South -northern Lirginia, western <orth !arolina, panhandle of Florida, eastern
Mentuc8y, eastern Ar8ansas, southwestern O8lahoma, and western ,e'as1Q the
other two are in upstate <ew Bor8 and eastern ;owa. ,he company operates few
stores in the $oc8y Eountain region and only the <e&ada stores in the 7aci.c
time Jone. "'hi2it ) shows the store locations.
"F#;G;, ) Family Dollar, 2y State and <um2er of Stores
<um2er of Stores per (00,000 population
O of Stores O of Stores per (00,000 7opulation
<O$,#"AS,
Eaine 5A 0.59
<ew #ampshire 22 (.A?
Lermont (2 (.90
Eassachusetts 99 (.)0
$hode ;sland 20 (.90
!onnecticut )( (.5A
<ew Bor8 290 (.59
7ennsyl&ania 2A5 2.((
<ew 4ersey 30 0.92
Delaware 2( 2.5(
Earyland 92 (.A5
District of !olum2ia 0 0.)0
SOR,#
Lirginia 2(5 2.?)
9est Lirginia (() A.05
<orth !arolina 0A5 0.9)
South !arolina (93 5.52
Heorgia 000 0.0?
Florida 0A0 (.93
Mentuc8y (3A 5.0A
,ennessee 205 0.23
Ala2ama (5) 0.(0
Eississippi ((3 5.02
Ar8ansas 93 0.50
%ouisiana 229 ).(9
E;D9"S,
Ohio 5(( 0.)3
;ndiana (9) 0.05
Eichigan 053 0.53
9isconsin (50 2.59
;llinois 203 (.35
"F#;G;, ) Family Dollar, 2y State and <um2er of StoresCcontinued
O of Stores O of Stores per (00,000 7opulation
Einnesota ?( (.0A
;owa 02 (.0?
Eissouri 9A (.A2
<orth Da8ota (( (.?(
South Da8ota 22 2.?0
<e2ras8a 0( (.?5
Mansas 0) (.2)
SOR,#9"S, 6 EOR<,A;<
O8lahoma (23 0.)(
,e'as 3(? 0.0A
9yoming 20 0.?)
!olorado (05 2.(5
<ew Ee'ico 90 5.)5
AriJona (00 2.00
Rtah A0 2.(9
;daho 0( 2.00
<e&ada 25 0.92
Aggregate ;nformation
55 S D! A,)?2 2.A( one store per 03,030 population
,here are no stores in Eontana, 9ashington, Oregon, !alifornia, Alas8a, and
#awaii.
SourceD Family Dollar Stores, Annual $eport -20031Q
www.infoplease.comPipaPA00593A.html. Family Dollars transportation
technologies include a 9e2-2ased ,ransportation Eanagement System -,ES1
that allows &endors to release purchase orders electronically. Family Dollar
,ruc8ing, ;nc. -FD,;1 pro&ides a pri&ate Teet of truc8s that ha&e recei&ed safety
rewards. Eore recently, Family Dollar is 2eginning to use some of these same
systems in international transportation.
Family Dollar is now using 7OS -point of ser&ice1 systems that pro&ide access to
2oth centraliJed and decentraliJed store applications, ena2ling higher employee
producti&ity, impro&ed customer ser&ice, and some new re&enue streams. Family
Dollar is wor8ing with ,oshi2a ,"! American on this. According to #oward %e&ine,
the company is =accelerating the completion of the 7OS rollout 2y 4anuary or
Fe2ruary of 20(0, which were well on trac8 of doing.> ;n these endea&ors, Family
Dollar continues to partner with ,oshi2a ,"! America and Eicrosoft. Family Dollar
recently hired Syl&ania %ighting Ser&ices -S%S1 to install new lighting to sa&e
energy, reduce maintenance, dri&e down operation costs, and impro&e store light
-2rightness1 le&els in all its stores. =,he new lighting program is a huge win for
Family Dollar, which yields a reduction in o&erall lighting maintenance costs,
2udget future lighting e'penses o&er four years at .'ed costs and allows them to
achie&e tremendous energy sa&ings while integrating en&ironmental
sustaina2ility,> said Scott Agnew, S%S e'ecuti&e account manager. ,he lighting
upgrades also ga&e Family Dollar some ta' 2rea8s.
Ear8eting
9hile other retailers ha&e courted a more upscale clientele 2y adding designer
clothes and .ne @ewelry, Family Dollar has stayed true to its roots. A typical
shopper earns @ust /0),000 per year. According to #oward %e&ine, =9e want our
customers to 8now they can a*ord anything in our store.> Geyond the four 2road
product categories, Family Dollars merchandise assortment are di&ided into ((
product classi.cations that include apparel, food, cleaning and paper products,
home decor, 2eauty and health aids, toys, pet products, automoti&e products,
domestics, seasonal goods, and electronics. Family Dollars merchandise includes
national 2rands, Family Dollar pri&ate la2els, and un2randed items that sell for
less than /(0. 9hereas some other discount retailers focus on factory closeouts,
these ma8e up only a2out 2 percent of Family Dollars sales. ,he com- pany
carries many name-2rand items found in supermar8ets, such as ,ide, !olgate,
and !loro'. Some analysts estimate that Family Dollars prices are 20 to 50
percent cheaper than those found in traditional supermar8ets and are roughly on
par with 2ig-2o' discoun- ters such as 9al-Eart and ,arget or lower.
Family Dollar emphasiJes con&enience for its customers. ;t sees the typical
scenario as 2ased on easy-to-shop neigh2orhood locations that allow =Eom to
get what she needs, close to home to ta8e care of her family.> ;n 2003, the
company introduced a new logo to facilitate achie&ing this emphasis. Along with
the new logo, Family Dollar has de&eloped a new tag lineD =Ey family. Ey family
dollar.> ,hese recent updates assist the company toward con&eying its
commitment to pro&iding &alue and con&enience with a family focus. Family
Dollar does not ma8e use of 9e2 site sales. ,he company has lagged 2ehind
many other retailers in accepting food stamps and other payment forms. Family
Dollar and its dollar store direct competitors still face an image pro2lem of a
perception of an old, cluttered, and dirty store. One customer complained that
one wee8 the store might carry Hreen Hiant canned corn and then %i22ys the
ne't. From the management of Family Dollars perspecti&e, this would 2e termed
=opportunistic 2uying.> Gy late 2009, Family Dollar plans to introduce 2)0 new
edi2le items, including ,riscuits and Dou2le Stuf Oreos as a way to attract more
customers. Some would categoriJe the companys increased emphasis on food
and slightly increased plan to put more stores in ur2an areas as a di*erentiation
strategy.
#uman $esources
A2out () percent of Family Dollars top 5( e'ecuti&es are women. Family Dollars
corporate 2oard of directors has (0 mem2ers ranging in age from 5? to ?3 -with
a mean and median age in the mid-A0s1, which includes three women 2ut only
one insider -#oward $. %e&ine1 with the other nine 2eing nonemployees of the
company. ;n 4uly 200A, Family Dollar lost a federal court case in ,uscaloosa,
Ala2ama, that amounted to /0).A million. ,his decision was upheld on Decem2er
(A, 2003, 2y the R.S. ((th !ircuit !ourt. ,he case in&ol&ed store managers not
2eing paid for o&ertime. ,he class action @udgment was on 2ehalf of (,525
managers. ,he a*ected managers were awarded 2ac8 pay. ,he managers had
argued that Family Dollar owed them o&ertime wages under the Fair %a2or
Standards Act -F%SA1. Family Dollars corporate management contended that the
managers held e'ecuti&e authority and were thus e'empt from the F%SA
re+uirements. 7artly 2ecause the store managers had no power to hire and .re
sta*, they reportedly often wor8ed A0 to ?0 hours per wee8 doing a &ariety of
nonmanagerial wor8 acti&ities such as operating cash registers and manual la2or
such as stoc8ing shel&es, unloading truc8s, and cleaning Toors. !onclusions and
the Future Family Dollar 2elie&es it can prosper in a limping R.S. economy and
perform e&en 2etter in a strong economy. Gut with issues such as litigation,
competition, increasing la2or costs, and eNciency issues in supply chain
management and elsewhere, Family Dollar faces challenges as it continues to
grow toward (0,000 stores.
;n April 2009 as the economic recession continued, Family Dollars 7u2lic
$elations Eanager 4osh Gra&erman said, =,hrift is in. Sa&ing money is in. And it
still will 2e e&en after the economy reco&ers.> Although penny-pinching moms
are important to Family Dollar, the future is not a sure thing. !an Family Dollar
perform well 2oth in good economic times and in 2ad economic times: ,o many
2usiness e'perts, it seems unreasona2le to 2e a2le to ha&e it 2oth ways. As
indicated in "'hi2its A and ?, Family Dollars third-+uarter -ending Eay 00, 20091
results were e'cellent. !ompared to one year earlier -Eay 0(, 20031, net sales
increased 2y 3.0 percent, net income increased 2y 0).A percent, net income per
common share increased from 5A cents to A0 cents. <et sales increased 2y (2.A
percent for consuma2les, dropped 2y ).0 percent for apparel and accessories,
rose 2y 0.) percent for home products, and increased 2y ).3 percent for seasonal
and electronics. ,he num2er of =stores in operation> was A,A)5 on Eay 00, 2009,
up from A,)5) on Eay 0(, 2003. Sales in com- para2le stores reported to
increase 2y A.2 percent. During the +uarter, Family Dollar repurchased
appro'imately (.2 million shares of its common stoc8 at a total cost of /03.)
million. "'hi2it 3 re&eals the companys recent store openingPclosing acti&ity.
"F#;G;, A Family Dollars !onsolidated Statements
of ;ncome -unaudited1
-in thousands, e'cept
For the ,hird Uuarter "nded
e'cept per share Eay 00, I of <et Eay 0(, I of <et
amounts1 2009 Sales 2003 Sales
<et sales /(,350,039 (00.0I /(,?02,(9? (00.0I
!ost of sales (,(?),39? A0.3I (,((2,?)) A).5I
Hross pro.t AA?,(92 0A.2I )39,552 05.AI
Selling, general and
administrati&e e'penses )23,()3 23.?I 53?,30) 23.?I
Operating pro.t (09,005 ?.)I (0(,A0? ).9I
;nterest income 3?9 0.0I 2,9?0 0.2I
;nterest e'pense 0,2(A 0.2I 0,0A( 0.2I
;ncome 2efore income
ta'es (0A,A9? ?.0I (0(,2(9 ).9I
;ncome ta'es 53,9?A 2.?I 0A,)5A 2.(I
<et income / 3?,?2( 5.AI / A5,A?0 0.3I
SourceD Family Dollar Stores, ;nc.
"F#;G;, ? Family Dollar Stores, ;nc., and Su2sidiaries Selected
Additional ;nformation
<et Sales 2y !ategory
For the ,hird Uuarter "nded
-in thousands1 Eay 00, 2009 Eay 0(, 2003 I !hange
!onsuma2les /(,20(,000 /(,0AA,A59 (2.AI
#ome products 20?,035 229,)23 0.5I
Apparel and accessories 2(9,(90 200,?35 -).0I
Seasonal and electronics (3),5?9 (?),20A ).3I
,O,A% /(,350,039 /(,?02,(9? 3.0I
For the ,hree Uuarters "nded
-in thousands1 Eay 00, 2009 Eay 0(, 2003 I !hange
!onsuma2les /0,)A),)52 /0,(09,)55 (0.AI
#ome products ??(,)?? ??5,)(3 -0.5I
Apparel and accessories A20,(?) A3A,05( -9.AI
Seasonal and electronics A0(,333 A(?,553 2.0I
,O,A% /),)39,(32 /),2(?,3)( ?.(I
SourceD Family Dollar Stores, ;nc.
"F#;G;, 3 Family Dollars Stores in Operation
For the ,hree Uuarters "nded
Stores in Operation Eay 00, 2009 Eay 0(, 2003
Geginning Store !ount A,)?( A,500
<ew Store Openings (53 (A)
Store !losings -A)1 -)01
"nding Store !ount A,A)5 A,)5)
,otal S+uare Footage -000s1 )A,)2? )),)?)
,otal Selling S+uare Footage -000s1 5?,0A0 5A,(95
SourceD Family Dollar Stores, ;nc.
$eferences
www.familydollar.com
www.hoo&ers.com
www.mar8etlineinfo.com
www.datamonitor.com
www..nance.yahoo.com
www.2iJ.yahoo.com
www.ws@online.com
www.reuters.com
www.fortune.com
www.for2es.com
www.usatoday.com
www.cnn.com
www.mar8etwatch.com
www.moneycentral.msn.com
www.mergentonline.com
www.dollargeneral.com
www.dollartree.com