ROANOKE, Va.–(BUSINESS WIRE)–
Advance Auto Parts, Inc. (AAP), a heading tradesman of automotive
aftermarket parts, accessories, batteries, and upkeep items, today
announced a financial formula for a initial entertain finished April 20,
2013. First entertain gain per diluted share (EPS) were $1.65 which
was a 7.8% diminution contra a initial entertain final year.
First Quarter Performance Summary
Sixteen Weeks Ended
April 20,
April 21,
2013
2012
Sales (in millions)
$
2,015.3
$
1,957.3
Comp Store Sales %
(3.2
%)
2.1
%
Gross Profit %
50.0
%
50.1
%
SGA %
39.9
%
38.6
%
Operating Income %
10.1
%
11.5
%
Diluted EPS
$
1.65
$
1.79
Avg Diluted Shares (in thousands)
73,806
74,223
“During a initial quarter, as anticipated, a business continued to be
compelled by a unseasonably comfortable continue final year that had
deferred a upkeep on vehicles. Additionally, due to a impact of
payroll taxation increases on a core consumer, behind income taxation refunds
and a really delayed start to a open offered season, a business was
softer than approaching with a comp store sales disappearing 3.2%,” said
Darren R. Jackson, Chief Executive Officer. “However, we had a best
opening a final dual weeks of a initial quarter. During that period
we saw a initial week of certain transaction expansion and strength across
a vital categories. We are speedy by a fact that we have
continued to beget certain comp store sales expansion so distant through
a second quarter. This is a transparent pointer that a marketplace stays strong
and consumers still have a eagerness to deposit in reliable
transportation.”
First Quarter Highlights
Total sales for a initial entertain increasing 3.0% to $2.02 billion, as
compared with sum sales during a initial entertain of mercantile 2012. The
sales boost was driven by a merger of BWP and a net addition
of 163 new stores over a past 12 months, partially equivalent by a
allied store sales diminution of 3.2% contra a allied store sales
boost of 2.1% during a initial entertain of mercantile 2012.
The Company’s sum distinction rate was 50.0% of sales during a first
entertain as compared to 50.1% during a initial entertain final year. The 8
basis-point diminution in sum distinction rate was essentially due to planned
increases in supply sequence costs associated to a full operations of the
Company’s new placement core and a impact of BWP sales, which
have a reduce sum domain rate as a outcome of a most aloft brew of
their sales to blurb customers. The diminution was partially offset
by softened cringe rates.
The Company’s SGA rate was 39.9% of sales during a initial entertain as
compared to 38.6% during a same duration final year. The 127 basis-point
boost was essentially due to responsibility deleverage as a outcome of the
Company’s 3.2% allied store sales diminution and increasing new store
openings. The SGA rate boost was partially equivalent by lower
promotion responsibility and a diminution in credit label fees as a outcome of
a insourcing of a Company’s blurb credit program.
The Company’s handling income during a initial entertain of $204.1
million decreased 9.1% contra a initial entertain of mercantile 2012. On a
rate basis, handling income was 10.1% of sum sales as compared to
11.5% during a initial entertain of mercantile 2012.
Operating money upsurge decreased 42.5% to $135.3 million from $235.4
million by a initial entertain of mercantile 2012. The $105.6 million
use of giveaway money upsurge contra a $153.1 million of giveaway money flow
supposing by a initial entertain of mercantile 2012 was essentially due to
a Company’s merger of BWP that occurred during a commencement of the
mercantile year. Capital expenditures were $63.1 million as compared to
$82.5 million by a initial entertain of mercantile 2012.
“While we are never confident when we don’t grasp a expectations, we
were gratified with a team’s trained concentration on responsibility management
during a entertain to respond to a softer sales environment. This
authorised us to broach a improved bottom-line opening than we
approaching and communicated during a commencement of April,” pronounced Mike
Norona, Executive Vice President and Chief Financial Officer. “It is
still early adequate in a year that we are progressing a annual
outlook, though given a density in a initial entertain and a delayed start
to spring, we now design to be during a reduce finish of a formerly shared
annual opinion of $5.30 to $5.45.”
Comparable Key Financial Metrics and Statistics (1)
Sixteen Weeks Ended
Fifty-Two Weeks Ended
April 20,
April 21,
2013
2012
FY 2012
FY 2011
Sales Growth %
3.0
%
3.1
%
0.6
%
4.1
%
Sales per Store (2)
$
1,637
$
1,711
$
1,664
$
1,708
Operating Income per Store (3)
$
166
$
193
$
176
$
184
Return on Invested Capital (4)
18.1
%
20.3
%
19.4
%
19.5
%
Gross Margin Return on Inventory (5)
9.0
6.8
9.3
6.6
Total Store Square Footage, finish of period
29,021
26,843
27,806
26,663
Total Team Members, finish of period
54,280
54,038
53,473
52,002
(1)
In thousands solely for sum domain lapse on register and total
Team Members. The financial metrics presented are distributed on an
annual basement and accordingly simulate a final 4 quarters
completed, solely for Sales Growth % and where noted.
(2)
Sales per store is distributed as net sales divided by an normal of
commencement and finale store count.
(3)
Operating income per store is distributed as handling income divided
by an normal of commencement and finale store count.
(4)
Return on invested collateral (ROIC) is distributed in fact in the
supplemental financial schedules.
(5)
Gross domain lapse on register is distributed as sum profit
divided by an normal of commencement and finale inventory, net of
accounts payable and financed businessman accounts payable.
Store Information
During a initial quarter, a Company acquired 124 BWP stores, non-stop 56
stores, including 7 Autopart International stores and sealed 5 stores.
As of April 20, 2013, a Company’s sum store count was 3,969
including 223 Autopart International stores.
Share Repurchase Program
During a initial quarter, a Company repurchased approximately 767
thousand shares of a common batch during an sum cost of $58.8
million, or an normal cost of $76.72 per share. As of April 20,
2013, a Company had approximately $434 million accessible on the
Company’s $500 million share repurchase module certified by the
Company’s Board of Directors on May 14, 2012.
Dividend
On May 21, 2013, a Company’s Board of Directors announced a regular
quarterly money division of $0.06 per share to be paid on July 5, 2013 to
stockholders of record as of June 21, 2013.
Annual Stockholders’ Meeting Announcements
The Company hold a annual assembly of stockholders on May 22, 2013.
During a meeting, a following people were inaugurated to offer on
a Company’s Board of Directors for a subsequent year: John F. Bergstrom,
John C. Brouillard, Fiona P. Dias, Darren R. Jackson, William S.
Oglesby, J. Paul Raines, Gilbert T. Ray, Carlos A. Saladrigas and Jimmie
L. Wade.
The Company’s stockholders voted to approve a remuneration of the
Company’s named executive officers, authorized a offer to rectify the
Company’s certificate of union to discharge supermajority voting
mandate and authorized a offer to rectify a Company’s certificate
of union to assent stockholders who have owned during slightest 25
percent of a Company’s superb shares of common batch continuously
for one year, to call a special meeting. The stockholders also ratified
a appointment by a Company’s Audit Committee of Deloitte Touche
LLP as a eccentric purebred open accounting organisation for 2013.
Investor Conference Call
The Company will horde a discussion call on Thursday, May 23, 2013, at
10:00 a.m. Eastern Time to plead a quarterly results. To listen to
a live call, greatfully record on to a Company’s website, www.AdvanceAutoParts.com,
or dial (866) 908-1AAP. The call will be archived on a Company’s
website until May 23, 2014.
About Advance Auto Parts
Headquartered in Roanoke, Va., Advance Auto Parts, Inc., a leading
automotive aftermarket tradesman of parts, accessories, batteries, and
upkeep apparatus in a United States, serves both a do-it-yourself
and veteran installer markets. As of April 20, 2013, a Company
operated 3,969 stores in 39 states, Puerto Rico, and a Virgin Islands.
Additional information about a Company, practice opportunities,
patron services, and online selling for parts, accessories and other
offerings can be found on a Company’s website during www.AdvanceAutoParts.com.
Certain statements contained in this recover are forward-looking
statements, as that matter is used in a Private Securities
Litigation Reform Act of 1995. Forward-looking statements residence future
events or developments, and typically use difference such as believe,
anticipate, expect, intend, plan, forecast, opinion or estimate. These
statements discuss, among other things, approaching expansion and future
performance, including store growth, collateral expenditures, comparable
store sales, SGA, handling income, sum distinction rate, giveaway money flow,
profitability and gain per diluted share for mercantile year 2013. These
forward-looking statements are theme to risks, uncertainties and
assumptions including, though not singular to, rival pressures, demand
for a Company’s products, a marketplace for automobile parts, a economy in
general, inflation, consumer debt levels, a weather, business
interruptions, information record security, accessibility of suitable
genuine estate, coherence on unfamiliar suppliers and other factors disclosed
in a Company’s 10-K for a mercantile year finished Dec 29, 2012 on
record with a Securities and Exchange Commission. Actual formula may
differ materially from approaching formula described in these
forward-looking statements. The Company intends these forward-looking
statements to pronounce usually as of a time of this news recover and does
not commence to refurbish or correct them as some-more information becomes
available.
Advance Auto Parts, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
April 20,
December 29,
April 21,
2013
2012
2012
Assets
Current assets:
Cash and money equivalents
$
407,724
$
598,111
$
364,084
Receivables, net
272,208
229,866
146,228
Inventories, net
2,423,772
2,308,609
2,106,944
Other stream assets
59,170
47,614
52,578
Total stream assets
3,162,874
3,184,200
2,669,834
Property and equipment, net
1,284,805
1,291,759
1,233,689
Assets hold for sale
2,237
788
788
Goodwill
201,789
76,389
76,389
Intangible assets, net
57,994
28,845
30,288
Other assets, net
37,786
31,833
34,124
$
4,747,485
$
4,613,814
$
4,045,112
Liabilities and Stockholders’ Equity
Current liabilities:
Current apportionment of long-term debt
$
689
$
627
$
807
Accounts payable
2,101,549
2,029,814
1,737,339
Accrued expenses
381,315
379,639
376,807
Other stream liabilities
140,588
149,558
133,761
Total stream liabilities
2,624,141
2,559,638
2,248,714
Long-term debt
604,265
604,461
599,841
Other long-term liabilities
248,632
239,021
217,908
Total stockholders’ equity
1,270,447
1,210,694
978,649
$
4,747,485
$
4,613,814
$
4,045,112
NOTE: These rough precipitated combined change sheets have
been prepared on a basement unchanging with a formerly prepared balance
sheets filed with a Securities and Exchange Commission for a prior
entertain and annual report, though do not embody a footnotes compulsory by
generally supposed accounting principles, or GAAP, for complete
financial statements.
Advance Auto Parts, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
Sixteen Week Periods Ended
April 20, 2013 and Apr 21, 2012
(in thousands, solely per share data)
(unaudited)
April 20,
April 21,
2013
2012
Net sales
2,015,304
1,957,292
Cost of sales, including purchasing and warehousing costs
1,007,098
976,619
Gross profit
1,008,206
980,673
Selling, ubiquitous and executive expenses
804,138
756,109
Operating income
204,068
224,564
Other, net:
Interest expense
(10,660
)
(9,854
)
Other income, net
958
502
Total other, net
(9,702
)
(9,352
)
Income before sustenance for income taxes
194,366
215,212
Provision for income taxes
72,576
81,706
Net income
121,790
133,506
Basic gain per share (a)
$
1.66
$
1.83
Diluted gain per share (a)
$
1.65
$
1.79
Average common shares superb (a)
73,194
72,888
Average common shares superb – presumption dilution (a)
73,806
74,223
NOTE: These rough precipitated combined statements of
operations have been prepared on a basement unchanging with a previously
prepared statements of operations filed with a Securities and Exchange
Commission for a before entertain and annual report, though do not include
a footnotes compulsory by GAAP for finish financial statements.
Advance Auto Parts, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
Sixteen Week Periods Ended
April 20, 2013 and Apr 21, 2012
(in thousands)
(unaudited)
April 20,
April 21,
2013
2012
Cash flows from handling activities:
Net income
$
121,790
$
133,506
Depreciation and amortization
64,027
55,799
Share-based compensation
2,664
5,590
Provision for deferred income taxes
(3,249
)
294
Excess taxation advantage from share-based compensation
(11,971
)
(17,386
)
Other non-cash adjustments to net income
589
863
(Increase) diminution in:
Receivables, net
(19,247
)
(6,221
)
Inventories, net
(70,728
)
(63,786
)
Other assets
(11,228
)
95
Increase in:
Accounts payable
35,363
84,156
Accrued expenses
19,240
35,946
Other liabilities
8,035
6,561
Net money supposing by handling activities
135,285
235,417
Cash flows from investing activities:
Purchases of skill and equipment
(63,124
)
(82,463
)
Business acquisition, net of money acquired
(186,859
)
—
Sale of certain resources of acquired business
9,004
—
Proceeds from sales of skill and equipment
136
188
Net money used in investing activities
(240,843
)
(82,275
)
Cash flows from financing activities:
Decrease in bank overdrafts
(8,711
)
(16,147
)
Net (payments) borrowings on credit facilities
—
(115,000
)
Issuance of comparison unsecured notes
—
299,904
Payment of debt associated costs
—
(2,648
)
Dividends paid
(8,800
)
(8,784
)
Proceeds from a distribution of common stock, essentially practice of
batch options
2,434
4,545
Tax withholdings associated to a practice of batch appreciation rights
(16,910
)
(20,768
)
Excess taxation advantage from share-based compensation
11,971
17,386
Repurchase of common stock
(59,918
)
(5,174
)
Contingent care associated to before business acquisitions
(4,726
)
—
Other
(169
)
(273
)
Net money (used in) supposing by financing activities
(84,829
)
153,041
Net (decrease) boost in money and money equivalents
(190,387
)
306,183
Cash and money equivalents, commencement of period
598,111
57,901
Cash and money equivalents, finish of period
$
407,724
$
364,084
NOTE: These rough precipitated combined statements of
money flows have been prepared on a unchanging basement with previously
prepared statements of money flows filed with a Securities and Exchange
Commission for a before entertain and annual report, though do not include
a footnotes compulsory by GAAP for finish financial statements.
Advance Auto Parts, Inc. and Subsidiaries
Supplemental Financial Schedules
Sixteen Week Periods Ended
April 20, 2013 and Apr 21, 2012
(in thousands)
(unaudited)
Reconciliation of Free Cash Flow:
April 20,
April 21,
2013
2012
Cash flows from handling activities
$
135,285
$
235,417
Cash flows used in investing activities
(240,843
)
(82,275
)
Free money flow
(105,558
)
153,142
Note: Management uses giveaway money upsurge as a magnitude of a liquidity
and believes it is a useful indicator to stockholders of a ability to
exercise a expansion strategies and use a debt. Free money upsurge is
a non-GAAP magnitude and should be deliberate in further to, though not as a
surrogate for, information contained in a precipitated consolidated
matter of money flows.
Detail of Return on Invested Capital
(ROIC) Calculation
Last Four Quarters Ended
April 20, 2013
April 21, 2012
Net income
$
375,954
$
418,605
Add:
After-tax seductiveness responsibility and other, net
20,927
19,369
After-tax franchise expense
208,188
194,609
After-Tax Operating Earnings
605,069
632,583
Average resources (less cash)
4,010,394
3,600,371
Less: Average liabilities (excluding sum debt)
(2,668,949
)
(2,361,779
)
Add: Capitalized franchise requirement (rent responsibility * 6) (a)
2,004,384
1,874,484
Total Invested Capital
3,345,829
3,113,076
ROIC
18.1
%
20.3
%
Rent expense
$
334,064
$
312,414
Interest responsibility and other, net
$
33,591
$
31,093
NOTE: Management uses ROIC to weigh lapse on investments
to a business and believes it is a useful indicator to stockholders
given a destiny investments a Company skeleton to make in areas
including information technology, supply sequence and stores. ROIC
is a non-GAAP magnitude and should be deliberate in further to, though not
as a surrogate for, information contained in a precipitated consolidated
financial statements. Management believes a allied formula of
operations are a useful indicator to stockholders for consistency
purposes.
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