Advance Auto Parts Reports Fourth Quarter and Fiscal 2012 Results
ROANOKE, Va.--(BUSINESS WIRE)--
Advance Auto Parts, Inc. (NYSE: AAP), a leading retailer of automotive
aftermarket parts, accessories, batteries, and maintenance items, today
announced its financial results for the fourth quarter and fiscal year
ended December 29, 2012. Fourth quarter earnings per diluted share (EPS)
were $0.88 which was a 2.2% decrease versus the fourth quarter last
year. For fiscal 2012, EPS was $5.22 which was an increase of 2.2% over
the same period last year.
Fourth Quarter Performance Summary
Twelve Weeks Ended
Fifty-Two Weeks Ended
December 29,
December 31,
December 29,
December 31,
2012
2011
2012
2011
Sales(in millions)
$
1,329.2
$
1,327.6
$
6,205.0
$
6,170.5
Comp Store Sales %
(1.9
%)
2.9
%
(0.8
%)
2.2
%
Gross Profit %
49.9
%
49.0
%
49.9
%
49.7
%
SG&A %
41.4
%
40.6
%
39.3
%
39.0
%
Operating Income %
8.5
%
8.4
%
10.6
%
10.8
%
Diluted EPS
$
0.88
$
0.90
$
5.22
$
5.11
Avg Diluted Shares(in thousands)
74,002
73,807
74,062
77,071
“We are pleased that our fourth quarter profitability results exceeded
our expectations. Our comparable sales trends continued to improve
sequentially, after adjusting for the holiday shift in our fourth
quarter, as well as our operating profits,” said Darren R. Jackson,
President and Chief Executive Officer. “Overall fiscal 2012 was a
challenging environment, which is reflected in our results. Yet we
achieved many key milestones that position us for a strong future. Those
achievements include the launch of our in-house commercial credit
program, the opening of our new distribution center in Remington,
Indiana, improvements in our commercial customer satisfaction, the
market entry into the boroughs of New York and the acquisition of BWP
which closed after our fiscal year ended. These milestones are
significant steps which will allow us to more effectively compete in the
larger and faster growing Commercial market.”
Fourth Quarter and Fiscal 2012 Highlights
Total sales for the fourth quarter increased 0.1% to $1.33 billion, as
compared with total sales during the fourth quarter of fiscal 2011. The
sales increase reflected a comparable store sales decrease of 1.9%
versus a comparable store sales increase of 2.9% during the fourth
quarter of fiscal 2011, partially offset by the net addition of 132 new
stores over the past 12 months. For fiscal 2012, total sales increased
0.6% to $6.21 billion, compared with total sales of $6.17 billion during
fiscal 2011.
The Company's gross profit rate was 49.9% of sales during the fourth
quarter as compared to 49.0% during the fourth quarter last year. The 87
basis-point increase in gross profit rate was primarily due to
improvements in shrink and supply chain efficiencies. The supply chain
efficiencies, which were driven by an increase in the volume of
inventory handled during the quarter, more than offset the increase in
supply chain costs associated with the opening of the Company's new
distribution center and increased new store openings. For fiscal 2012,
the Company's gross profit rate was 49.9%, compared with 49.7% in fiscal
2011.
The Company's SG&A rate was 41.4% of sales during the fourth quarter as
compared to 40.6% during the same period last year. The 79 basis-point
increase was primarily due to expense deleverage as a result of the
Company's 1.9% comp store sales decline, increased new store openings
and costs associated with the Company's acquisition related activities
during the quarter, partially offset by lower incentive compensation.
For fiscal 2012, the Company's SG&A rate was 39.3% versus 39.0% during
fiscal 2011.
The Company's operating income during the fourth quarter of $113.2
million increased 1.1% versus the fourth quarter of fiscal 2011. On a
rate basis, operating income was 8.5% of total sales as compared to 8.4%
during the fourth quarter of fiscal 2011. For fiscal 2012, the Company's
operating income rate was 10.6% versus 10.8% during fiscal 2011.
Operating cash flow decreased 17.3% to $685.3 million from $828.8
million through the fourth quarter of fiscal 2011. Free cash flow was
$412.3 million versus $507.2 million through the fourth quarter of
fiscal 2011. Capital expenditures were $271.2 million as compared to
$268.1 million through the fourth quarter of fiscal 2011.
“2012 was a challenging year for our company primarily driven by the
ongoing softness in our colder weather markets and decreased consumer
demand for auto parts. While we are disappointed we did not achieve our
growth and profitability expectations for the year, we are encouraged by
our improved sales performance trends versus the market,” said Mike
Norona, Executive Vice President and Chief Financial Officer. “Our
decision to maintain our investment profile through the course of the
year is driven by our confidence in the long-term industry fundamentals
and provides us with a strong foundation to build upon as we head into
fiscal 2013.”
Comparable Key Financial Metrics and Statistics (1)
Twelve Weeks Ended
Fifty-Two Weeks Ended
December 29,
December 31,
2012
2011
FY 2012
FY 2011
FY 2010
Sales Growth %
0.1
%
4.5
%
0.6
%
4.1
%
9.5
%
Sales per Store (2)
$
1,664
$
1,708
$
1,664
$
1,708
$
1,697
Operating Income per Store (3)
$
176
$
184
$
176
$
184
$
168
Return on Invested Capital (4)
19.4
%
19.5
%
19.4
%
19.5
%
17.5
%
Gross Margin Return on Inventory (5)
9.3
6.6
9.3
6.6
5.1
Total Store Square Footage, end of period
27,806
26,663
27,806
26,663
25,950
Total Team Members, end of period
53,473
52,002
53,473
52,002
51,017
(1)
In thousands except for gross margin return on inventory and total
Team Members. The financial metrics presented are calculated on an
annual basis and accordingly reflect the last four quarters
completed, except for Sales Growth % and where noted.
(2)
Sales per store is calculated as net sales divided by an average of
beginning and ending store count.
(3)
Operating income per store is calculated as operating income divided
by an average of beginning and ending store count.
(4)
Return on invested capital (ROIC) is calculated in detail in the
supplemental financial schedules.
(5)
Gross margin return on inventory is calculated as gross profit
divided by an average of beginning and ending inventory, net of
accounts payable and financed vendor accounts payable.
Store Information
During the fourth quarter, the Company added 67 stores, including eight
Autopart International stores. For fiscal 2012, the Company added 137
stores, including 21 Autopart International stores. As of December 29,
2012, the Company's total store count was 3,794 including 218 Autopart
International stores. For the year, the Company closed five stores.
2013 Annual Financial Outlook
The Company has provided the following annual financial outlook and
certain key assumptions for fiscal 2013.
Fiscal 2013 Annual Financial Outlook and Key Assumptions
New Stores
170 - 190 (155 - 165 Advance Auto Parts stores, 10 - 15 Autopart
International stores); excludes 124 BWP stores acquired on December
31, 2012
Comparable Store Sales
Low-single digits
Operating EPS
$5.45 - $5.60; excludes BWP integration costs
Reported EPS
$5.30 - $5.45; includes BWP integration costs of $0.15 - $0.20
Capital Expenditures
$275 million - $300 million
Diluted Share Count
Approximately 74 million shares
In fiscal 2013, the Company anticipates a low-single digit increase in
comparable store sales driven by continued strong Commercial sales
growth. The Company expects a modest increase in gross profit rate. The
Company expects its rate of growth in SG&A dollars per store to increase
three to five percent.
As a result of the acquisition of BWP Distributors, Inc. (BWP), the
Company estimates that BWP will add roughly $170 million to $180 million
of revenue in fiscal 2013. The Company anticipates BWP will generate
positive operating income when excluding the impact of one-time
integration costs. Additionally, the Company anticipates free cash flow
will be a minimum of $375 million, excluding the net acquisition price
of BWP, which was approximately one times the anticipated additional
revenue from BWP in fiscal 2013.
“Our 2013 annual operating EPS outlook will be in the range of $5.45 to
$5.60 per share excluding one-time integration costs for BWP of
approximately $0.15 to $. 20 per share. On a reported basis, including
the BWP one-time integration costs, our EPS outlook is expected to be
$5.30 to $5.45,” said Mike Norona, Executive Vice President and Chief
Financial Officer. "Consistent with our historical practice, our outlook
does not reflect any anticipated share repurchase activity. However, we
plan to continue our historical practice of opportunistically
repurchasing shares in a disciplined manner, which could positively
impact our 2013 annual EPS outlook."
Share Repurchase Program
As of December 29, 2012, the Company had approximately $492 million
available on the Company's $500 million share repurchase program
authorized by the Company's Board of Directors on May 14, 2012.
Dividend
On February 5, 2013, the Company's Board of Directors declared a regular
quarterly cash dividend of $0.06 per share to be paid on April 5, 2013
to stockholders of record as of March 22, 2013.
Investor Conference Call
The Company will host a conference call on Thursday, February 7, 2013 at
10:00 a.m. Eastern Time to discuss its quarterly results. To listen to
the live call, please log on to the Company's website, www.AdvanceAutoParts.com,
or dial (866) 908-1AAP. The call will be archived on the Company's
website until February 7, 2014.
About Advance Auto Parts
Headquartered in Roanoke, Va., Advance Auto Parts, Inc., a leading
automotive aftermarket retailer of parts, accessories, batteries, and
maintenance items in the United States, serves both the do-it-yourself
and professional installer markets. As of December 29, 2012, the Company
operated 3,794 stores in 39 states, Puerto Rico, and the Virgin Islands.
Additional information about the Company, employment opportunities,
customer services, and online shopping for parts, accessories and other
offerings can be found on the Company's website at www.AdvanceAutoParts.com.
Certain statements contained in this release are forward-looking
statements, as that statement is used in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements address future
events or developments, and typically use words such as believe,
anticipate, expect, intend, plan, forecast, outlook or estimate. These
statements discuss, among other things, expected growth and future
performance, including store growth, capital expenditures, comparable
store sales, SG&A, operating income, gross profit rate, free cash flow,
profitability and earnings per diluted share for fiscal year 2013. These
forward-looking statements are subject to risks, uncertainties and
assumptions including, but not limited to, competitive pressures, demand
for the Company's products, the market for auto parts, the economy in
general, inflation, consumer debt levels, the weather, business
interruptions, information technology security, availability of suitable
real estate, dependence on foreign suppliers and other factors disclosed
in the Company's 10-K for the fiscal year ended December 31, 2011 on
file with the Securities and Exchange Commission. Actual results may
differ materially from anticipated results described in these
forward-looking statements. The Company intends these forward-looking
statements to speak only as of the time of this news release and does
not undertake to update or revise them as more information becomes
available.
Advance Auto Parts, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
December 29,
December 31,
2012
2011
Assets
Current assets:
Cash and cash equivalents
$
598,111
$
57,901
Receivables, net
229,866
140,007
Inventories, net
2,308,609
2,043,158
Other current assets
47,614
52,754
Total current assets
3,184,200
2,293,820
Property and equipment, net
1,291,759
1,223,099
Assets held for sale
788
615
Goodwill
76,389
76,389
Intangible assets, net
28,845
31,380
Other assets, net
31,833
30,451
$
4,613,814
$
3,655,754
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt
$
627
$
848
Accounts payable
2,029,814
1,653,183
Accrued expenses
379,639
385,746
Other current liabilities
149,558
148,098
Total current liabilities
2,559,638
2,187,875
Long-term debt
604,461
415,136
Other long-term liabilities
239,021
204,829
Total stockholders' equity
1,210,694
847,914
$
4,613,814
$
3,655,754
NOTE: These preliminary condensed consolidated balance sheets
have been prepared on a basis consistent with our previously
prepared balance sheets filed with the Securities and Exchange
Commission for our prior quarter and annual report, but do not
include the footnotes required by generally accepted accounting
principles, or GAAP, for complete financial statements.
Advance Auto Parts, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
Twelve Week Periods Ended
December 29, 2012 and December 31, 2011
(in thousands, except per share data)
(unaudited)
December 29,
December 31,
2012
2011
Net sales
$
1,329,201
$
1,327,572
Cost of sales, including purchasing and warehousing costs
666,046
676,834
Gross profit
663,155
650,738
Selling, general and administrative expenses
549,959
538,820
Operating income
113,196
111,918
Other, net:
Interest expense
(7,992
)
(5,073
)
Other (expense) income, net
(159
)
314
Total other, net
(8,151
)
(4,759
)
Income before provision for income taxes
105,045
107,159
Provision for income taxes
39,990
40,720
Net income
$
65,055
$
66,439
Basic earnings per share (a)
$
0.89
$
0.92
Diluted earnings per share (a)
$
0.88
$
0.90
Average common shares outstanding (a)
73,221
72,394
Average common shares outstanding - assuming dilution (a)
74,002
73,807
(a)
Average common shares outstanding is calculated based on the
weighted average number of shares outstanding during the quarter.
At December 29, 2012 and December 31, 2011, we had 73,383 and
72,799 shares outstanding, respectively.
NOTE: These preliminary condensed consolidated statements of
operations have been prepared on a basis consistent with our
previously prepared statements of operations filed with the
Securities and Exchange Commission for our prior quarter and
annual report, but do not include the footnotes required by GAAP
for complete financial statements.
Advance Auto Parts, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
Fifty-Two Week Periods Ended
December 29, 2012 and December 31, 2011
(in thousands, except per share data)
(unaudited)
December 29,
December 31,
2012
2011
Net sales
$
6,205,003
$
6,170,462
Cost of sales, including purchasing and warehousing costs
3,106,967
3,101,172
Gross profit
3,098,036
3,069,290
Selling, general and administrative expenses
2,440,721
2,404,648
Operating income
657,315
664,642
Other, net:
Interest expense
(33,841
)
(30,949
)
Other income (expense), net
600
(457
)
Total other, net
(33,241
)
(31,406
)
Income before provision for income taxes
624,074
633,236
Provision for income taxes
236,404
238,554
Net income
$
387,670
$
394,682
Basic earnings per share (a)
$
5.29
$
5.21
Diluted earnings per share (a)
$
5.22
$
5.11
Average common shares outstanding (a)
73,091
75,620
Average common shares outstanding - assuming dilution (a)
74,062
77,071
(a)
Average common shares outstanding is calculated based on the
weighted average number of shares outstanding during the year. At
December 29, 2012 and December 31, 2011, we had 73,383 and 72,799
shares outstanding, respectively.
NOTE: These preliminary condensed consolidated statements of
operations have been prepared on a basis consistent with our
previously prepared statements of operations filed with the
Securities and Exchange Commission for our prior quarter and
annual report, but do not include the footnotes required by GAAP
for complete financial statements.
Advance Auto Parts, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
Fifty-Two Week Periods Ended
December 29, 2012 and December 31, 2011
(in thousands)
(unaudited)
December 29,
December 31,
2012
2011
Cash flows from operating activities:
Net income
$
387,670
$
394,682
Depreciation and amortization
189,544
175,949
Share-based compensation
15,236
19,553
Provision for deferred income taxes
26,893
53,037
Excess tax benefit from share-based compensation
(23,099
)
(9,663
)
Other non-cash adjustments to net income
4,281
6,326
(Increase) decrease in:
Receivables, net
(89,482
)
(15,372
)
Inventories, net
(260,298
)
(179,288
)
Other assets
8,213
23,073
Increase (decrease) in:
Accounts payable
376,631
360,678
Accrued expenses
40,936
(15,901
)
Other liabilities
8,756
15,775
Net cash provided by operating activities
685,281
828,849
Cash flows from investing activities:
Purchases of property and equipment
(271,182
)
(268,129
)
Business acquisitions, net of cash acquired
(8,369
)
(23,133
)
Proceeds from sales of property and equipment
6,573
1,288
Net cash used in investing activities
(272,978
)
(289,974
)
Cash flows from financing activities:
(Decrease) increase in bank overdrafts
(7,459
)
6,625
Decrease in financed vendor accounts payable
—
(31,648
)
Net (payments) borrowings on credit facilities
(115,000
)
115,000
Issuance of senior unsecured notes
299,904
—
Payment of debt related costs
(2,942
)
(3,656
)
Dividends paid
(17,596
)
(18,554
)
Proceeds from the issuance of common stock, primarily exercise of
stock options
8,495
21,056
Tax withholdings related to the exercise of stock appreciation rights
(26,677
)
(6,582
)
Excess tax benefit from share-based compensation
23,099
9,663
Repurchase of common stock
(27,095
)
(631,149
)
Contingent consideration related to previous business acquisitions
(10,911
)
—
Other
4,089
(938
)
Net cash provided by (used in) financing activities
127,907
(540,183
)
Net increase (decrease) in cash and cash equivalents
540,210
(1,308
)
Cash and cash equivalents, beginning of period
57,901
59,209
Cash and cash equivalents, end of period
$
598,111
$
57,901
NOTE: These preliminary condensed consolidated statements of
cash flows have been prepared on a consistent basis with
previously prepared statements of cash flows filed with the
Securities and Exchange Commission for our prior quarter and
annual report, but do not include the footnotes required by GAAP
for complete financial statements.
Advance Auto Parts, Inc. and Subsidiaries
Supplemental Financial Schedules
Fifty-Two Week Periods Ended
December 29, 2012 and December 31, 2011
(in thousands)
(unaudited)
Reconciliation of Free Cash Flow:
December 29,
December 31,
2012
2011
Cash flows from operating activities
$
685,281
$
828,849
Cash flows used in investing activities
(272,978
)
(289,974
)
412,303
538,875
Decrease in financed vendor accounts payable
—
(31,648
)
Free cash flow
$
412,303
$
507,227
Note: Management uses free cash flow as a measure of our
liquidity and believes it is a useful indicator to stockholders of
our ability to implement our growth strategies and service our
debt. Free cash flow is a non-GAAP measure and should be
considered in addition to, but not as a substitute for,
information contained in our condensed consolidated statement of
cash flows.
Detail of Return on Invested Capital
(ROIC) Calculation:
(a) Capitalized lease obligation is estimated as annualized
rent expense for the applicable period times six years.
Note: Management uses ROIC to evaluate return on investments to
the business and believes it is a useful indicator to stockholders
given the future investments the Company plans to make in areas
including information technology, supply chain and stores. ROIC is
a non-GAAP measure and should be considered in addition to, but
not as a substitute for, information contained in our condensed
consolidated financial statements. Management believes our
comparable results of operations are a useful indicator to
stockholders for consistency purposes.
Press Release $AAP Advance Auto Parts Inc.
ROANOKE, Va.--(BUSINESS WIRE)-- Advance Auto Parts, Inc. (NYSE: AAP), a leading retailer of automotive aftermarket parts, accessories, batteries, and maintenance items, today announced its financial results for the fourth quarter and fiscal year ended December 29, 2012. Fourth quarter earnings per diluted share (EPS) were $0.88 which was a 2.2% decrease versus the fourth quarter last year. For fiscal 2012, EPS was $5.22 which was an increase of 2.2% over the same period last year.
“We are pleased that our fourth quarter profitability results exceeded our expectations. Our comparable sales trends continued to improve sequentially, after adjusting for the holiday shift in our fourth quarter, as well as our operating profits,” said Darren R. Jackson, President and Chief Executive Officer. “Overall fiscal 2012 was a challenging environment, which is reflected in our results. Yet we achieved many key milestones that position us for a strong future. Those achievements include the launch of our in-house commercial credit program, the opening of our new distribution center in Remington, Indiana, improvements in our commercial customer satisfaction, the market entry into the boroughs of New York and the acquisition of BWP which closed after our fiscal year ended. These milestones are significant steps which will allow us to more effectively compete in the larger and faster growing Commercial market.”
Fourth Quarter and Fiscal 2012 Highlights
Total sales for the fourth quarter increased 0.1% to $1.33 billion, as compared with total sales during the fourth quarter of fiscal 2011. The sales increase reflected a comparable store sales decrease of 1.9% versus a comparable store sales increase of 2.9% during the fourth quarter of fiscal 2011, partially offset by the net addition of 132 new stores over the past 12 months. For fiscal 2012, total sales increased 0.6% to $6.21 billion, compared with total sales of $6.17 billion during fiscal 2011.
The Company's gross profit rate was 49.9% of sales during the fourth quarter as compared to 49.0% during the fourth quarter last year. The 87 basis-point increase in gross profit rate was primarily due to improvements in shrink and supply chain efficiencies. The supply chain efficiencies, which were driven by an increase in the volume of inventory handled during the quarter, more than offset the increase in supply chain costs associated with the opening of the Company's new distribution center and increased new store openings. For fiscal 2012, the Company's gross profit rate was 49.9%, compared with 49.7% in fiscal 2011.
The Company's SG&A rate was 41.4% of sales during the fourth quarter as compared to 40.6% during the same period last year. The 79 basis-point increase was primarily due to expense deleverage as a result of the Company's 1.9% comp store sales decline, increased new store openings and costs associated with the Company's acquisition related activities during the quarter, partially offset by lower incentive compensation. For fiscal 2012, the Company's SG&A rate was 39.3% versus 39.0% during fiscal 2011.
The Company's operating income during the fourth quarter of $113.2 million increased 1.1% versus the fourth quarter of fiscal 2011. On a rate basis, operating income was 8.5% of total sales as compared to 8.4% during the fourth quarter of fiscal 2011. For fiscal 2012, the Company's operating income rate was 10.6% versus 10.8% during fiscal 2011.
Operating cash flow decreased 17.3% to $685.3 million from $828.8 million through the fourth quarter of fiscal 2011. Free cash flow was $412.3 million versus $507.2 million through the fourth quarter of fiscal 2011. Capital expenditures were $271.2 million as compared to $268.1 million through the fourth quarter of fiscal 2011.
“2012 was a challenging year for our company primarily driven by the ongoing softness in our colder weather markets and decreased consumer demand for auto parts. While we are disappointed we did not achieve our growth and profitability expectations for the year, we are encouraged by our improved sales performance trends versus the market,” said Mike Norona, Executive Vice President and Chief Financial Officer. “Our decision to maintain our investment profile through the course of the year is driven by our confidence in the long-term industry fundamentals and provides us with a strong foundation to build upon as we head into fiscal 2013.”
(1)
(2)
(3)
(4)
(5)
Store Information
During the fourth quarter, the Company added 67 stores, including eight Autopart International stores. For fiscal 2012, the Company added 137 stores, including 21 Autopart International stores. As of December 29, 2012, the Company's total store count was 3,794 including 218 Autopart International stores. For the year, the Company closed five stores.
2013 Annual Financial Outlook
The Company has provided the following annual financial outlook and certain key assumptions for fiscal 2013.
Fiscal 2013 Annual Financial Outlook and Key Assumptions
In fiscal 2013, the Company anticipates a low-single digit increase in comparable store sales driven by continued strong Commercial sales growth. The Company expects a modest increase in gross profit rate. The Company expects its rate of growth in SG&A dollars per store to increase three to five percent.
As a result of the acquisition of BWP Distributors, Inc. (BWP), the Company estimates that BWP will add roughly $170 million to $180 million of revenue in fiscal 2013. The Company anticipates BWP will generate positive operating income when excluding the impact of one-time integration costs. Additionally, the Company anticipates free cash flow will be a minimum of $375 million, excluding the net acquisition price of BWP, which was approximately one times the anticipated additional revenue from BWP in fiscal 2013.
“Our 2013 annual operating EPS outlook will be in the range of $5.45 to $5.60 per share excluding one-time integration costs for BWP of approximately $0.15 to $. 20 per share. On a reported basis, including the BWP one-time integration costs, our EPS outlook is expected to be $5.30 to $5.45,” said Mike Norona, Executive Vice President and Chief Financial Officer. "Consistent with our historical practice, our outlook does not reflect any anticipated share repurchase activity. However, we plan to continue our historical practice of opportunistically repurchasing shares in a disciplined manner, which could positively impact our 2013 annual EPS outlook."
Share Repurchase Program
As of December 29, 2012, the Company had approximately $492 million available on the Company's $500 million share repurchase program authorized by the Company's Board of Directors on May 14, 2012.
Dividend
On February 5, 2013, the Company's Board of Directors declared a regular quarterly cash dividend of $0.06 per share to be paid on April 5, 2013 to stockholders of record as of March 22, 2013.
Investor Conference Call
The Company will host a conference call on Thursday, February 7, 2013 at 10:00 a.m. Eastern Time to discuss its quarterly results. To listen to the live call, please log on to the Company's website, www.AdvanceAutoParts.com, or dial (866) 908-1AAP. The call will be archived on the Company's website until February 7, 2014.
About Advance Auto Parts
Headquartered in Roanoke, Va., Advance Auto Parts, Inc., a leading automotive aftermarket retailer of parts, accessories, batteries, and maintenance items in the United States, serves both the do-it-yourself and professional installer markets. As of December 29, 2012, the Company operated 3,794 stores in 39 states, Puerto Rico, and the Virgin Islands. Additional information about the Company, employment opportunities, customer services, and online shopping for parts, accessories and other offerings can be found on the Company's website at www.AdvanceAutoParts.com.
Certain statements contained in this release are forward-looking statements, as that statement is used in the Private Securities Litigation Reform Act of 1995. Forward-looking statements address future events or developments, and typically use words such as believe, anticipate, expect, intend, plan, forecast, outlook or estimate. These statements discuss, among other things, expected growth and future performance, including store growth, capital expenditures, comparable store sales, SG&A, operating income, gross profit rate, free cash flow, profitability and earnings per diluted share for fiscal year 2013. These forward-looking statements are subject to risks, uncertainties and assumptions including, but not limited to, competitive pressures, demand for the Company's products, the market for auto parts, the economy in general, inflation, consumer debt levels, the weather, business interruptions, information technology security, availability of suitable real estate, dependence on foreign suppliers and other factors disclosed in the Company's 10-K for the fiscal year ended December 31, 2011 on file with the Securities and Exchange Commission. Actual results may differ materially from anticipated results described in these forward-looking statements. The Company intends these forward-looking statements to speak only as of the time of this news release and does not undertake to update or revise them as more information becomes available.
Assets
Liabilities and Stockholders' Equity
NOTE: These preliminary condensed consolidated balance sheets have been prepared on a basis consistent with our previously prepared balance sheets filed with the Securities and Exchange Commission for our prior quarter and annual report, but do not include the footnotes required by generally accepted accounting principles, or GAAP, for complete financial statements.
Twelve Week Periods Ended
(a)
Average common shares outstanding is calculated based on the weighted average number of shares outstanding during the quarter. At December 29, 2012 and December 31, 2011, we had 73,383 and 72,799 shares outstanding, respectively.
NOTE: These preliminary condensed consolidated statements of operations have been prepared on a basis consistent with our previously prepared statements of operations filed with the Securities and Exchange Commission for our prior quarter and annual report, but do not include the footnotes required by GAAP for complete financial statements.
Average common shares outstanding is calculated based on the weighted average number of shares outstanding during the year. At December 29, 2012 and December 31, 2011, we had 73,383 and 72,799 shares outstanding, respectively.
NOTE: These preliminary condensed consolidated statements of operations have been prepared on a basis consistent with our previously prepared statements of operations filed with the Securities and Exchange Commission for our prior quarter and annual report, but do not include the footnotes required by GAAP for complete financial statements.
NOTE: These preliminary condensed consolidated statements of cash flows have been prepared on a consistent basis with previously prepared statements of cash flows filed with the Securities and Exchange Commission for our prior quarter and annual report, but do not include the footnotes required by GAAP for complete financial statements.
Reconciliation of Free Cash Flow:
Note: Management uses free cash flow as a measure of our liquidity and believes it is a useful indicator to stockholders of our ability to implement our growth strategies and service our debt. Free cash flow is a non-GAAP measure and should be considered in addition to, but not as a substitute for, information contained in our condensed consolidated statement of cash flows.
Detail of Return on Invested Capital (ROIC) Calculation:
(a) Capitalized lease obligation is estimated as annualized rent expense for the applicable period times six years.
Note: Management uses ROIC to evaluate return on investments to the business and believes it is a useful indicator to stockholders given the future investments the Company plans to make in areas including information technology, supply chain and stores. ROIC is a non-GAAP measure and should be considered in addition to, but not as a substitute for, information contained in our condensed consolidated financial statements. Management believes our comparable results of operations are a useful indicator to stockholders for consistency purposes.
Advance Auto Parts, Inc.
Media Contact
Shelly Whitaker, APR, 540-561-8452
shelly.whitaker@advanceautoparts.com
or
Investor Contact
Joshua Moore, 952-715-5076
joshua.moore@advanceautoparts.com
Source: Advance Auto Parts, Inc.