MEMPHIS, Tenn., Dec. 12 /PRNewswire-FirstCall/ -- AutoZone, Inc.
(NYSE: AZO), today reported sales of $1.219 billion for its first fiscal
quarter (12 weeks) ended November 23, 2002, an increase of 4% from fiscal
2002. Excluding the sales of the TruckPro subsidiary which was sold in
December, 2001, sales increased 7%. Same store sales, or sales for domestic
auto parts stores open at least one year, increased 4.5% during the quarter.
Gross margin for the quarter improved by more than one percentage point, while
operating expenses, as a percent of sales, declined by more than one
percentage point, resulting in a 15.5% operating margin. Net income for the
quarter increased 25% to $105 million, while diluted earnings per share
increased 37% to $1.04 from $0.76 reported in the year-ago quarter. Return on
invested capital for the trailing twelve months increased to 20.6%.
"We are very pleased with our continuing strong performance through the
first quarter, even as we anniversary our strong improvements in the prior
year," said Steve Odland, Chairman, President and Chief Executive Officer.
"We are very encouraged by the 30% sales increase in our AZ Commercial
business reflecting our commercial customers' positive response to our high
level of service and extensive product offering.
"Our continued focus on controlling costs through relentless expense
discipline continues to drive shareholder value. Operating expenses as a
percent of sales declined to 29.6% in the first quarter. This rate is the
lowest first quarter rate achieved since 1995. The strong, growing cash flow
provided by our business, when combined with our high hurdle rates for new
investments, should continue to drive improved return on invested capital and
shareholder value."
During the quarter, AutoZone opened 31 new stores, replaced one store and
closed one store in the U.S. and opened one new store in Mexico. As of
November 23, 2002, AutoZone operates 3,098 stores in the U.S. and 40 stores in
Mexico.
At the end of the quarter, total share repurchases under the share
repurchase program were $2.134 billion, or 62.5 million shares at an average
price of $34.14 per share, including $119.8 million, or 1.6 million shares
under forward purchase contracts.
In conjunction with its Annual Meeting of Stockholders, AutoZone will host
a conference beginning at 8 a.m. (EST) today to discuss the results of the
first quarter and the last fiscal year. Investors may listen to the Annual
Meeting live and review supporting slides on the AutoZone website,
www.autozone.com, by clicking "Investor Relations," and "Conference Calls."
The call will also be available by dialing (712) 271-3887. A replay of the
Annual Meeting, investor conference and slides will be available on AutoZone's
website until January 10, 2003. In addition, a replay will be available by
dialing (402) 220-3902 through Thursday, December 19, 2002, at midnight (EST).
As of November 23, 2002, AutoZone sells auto and light truck parts,
chemicals and accessories through 3,098 AutoZone stores in 44 states plus the
District of Columbia in the U.S. and 40 AutoZone stores in Mexico and also
sells the ALLDATA brand automotive diagnostic and repair software. On the
web, AutoZone sells diagnostic and repair information through alldatadiy.com,
and auto and light truck parts through AutoZone.com.
Certain statements contained in this press release are forward-looking
statements. These statements discuss, among other things, business strategies
and future performance. These forward-looking statements are subject to risks,
uncertainties and assumptions, including, without limitation, competition,
product demand, the economy, inflation, gasoline prices, consumer debt levels,
war and the prospect of war, including terrorist activity, and availability of
commercial transportation. Actual results may materially differ from
anticipated results. Please refer to the Risk Factors section of AutoZone's
Form 10-K for the fiscal year ended August 31, 2002, for more information
related to those risks. AutoZone undertakes no obligation to publicly release
any revisions to any forward-looking statements contained in this press
release to reflect events or circumstances occurring after the date of this
release or to reflect the occurrence of unanticipated events.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
12 Weeks Trailing 12 Trailing 12
Ended 12 Weeks Ended months months
November 23, November 17, November 23, November 17,
2002 2001 2002 2001
Net sales $1,218,635 $1,176,052 $5,368,093 $4,930,671
Cost of goods sold 669,245 659,916 2,959,452 2,846,811
Gross profit 549,390 516,136 2,408,641 2,083,860
Operating expenses 361,064 360,632 1,604,811 1,524,744
Restructuring and
impairment charges -- -- -- 126,689
Operating profit 188,326 155,504 803,830 432,427
Interest expense,
net 19,105 19,427 79,538 97,112
Income before taxes 169,221 136,077 724,292 335,315
Taxes 64,310 52,000 275,310 129,500
Net income $104,911 $84,077 $448,982 $205,815
Net income per
share:
Basic $1.06 $0.78 $4.39 $1.86
Diluted $1.04 $0.76 $4.28 $1.83
Shares outstanding:
Basic 98,808 107,984 102,327 110,818
Diluted 101,206 110,605 104,942 112,313
Selected Balance Sheet Information
(in thousands)
November 23, November 17, August 31,
2002 2001 2002
Merchandise
inventories $1,484,699 $1,325,437 $1,375,584
Current assets 1,565,845 1,416,383 1,450,128
Property and
equipment, net 1,663,684 1,698,124 1,661,728
Total assets 3,612,513 3,504,852 3,477,791
Accounts payable 1,120,748 894,928 1,145,533
Current liabilities 1,485,123 1,241,770 1,533,571
Stockholders' equity 753,842 910,268 689,127
Debt 1,313,092 1,280,642 1,194,517
Working capital 80,722 174,613 (83,443)
Selected Cash Flow Information
(in thousands)
12 Weeks Trailing 12 Trailing 12
Ended 12 Weeks Ended months months
November 23, November 17, November 23, November 17,
2002 2001 2002 2001
Depreciation &
amortization $25,593 $28,169 $115,679 $129,038
Capital spending $30,465 $16,211 $131,493 $130,459
Cash flow before
share repurchases $(40,052) $14,207 $675,609 $408,640
Share repurchases $ 78,523 $69,447 $708,059 $280,904
Other Selected Financial Information
(in thousands)
November 23, November 17,
2002 2001
Cumulative share
repurchases ($):
On balance sheet $2,014,220 $1,306,180
Forward contracts 119,801 170,444
Total $2,134,021 $1,476,624
Cumulative share
repurchases
(shares):
On balance sheet 60,871 49,397
Forward contracts 1,646 3,846
Total 62,517 53,243
Shares outstanding,
end of quarter 98,962 108,054
After-tax return on
invested capital 20.6% 14.5%
AutoZone's 1st Quarter Fiscal 2003
Selected Operating Highlights
Store Count & Square Footage
12 Weeks Ended 12 Weeks Ended
November 23, November 17, 2001
2002
Domestic auto parts stores:
Store count:
Stores opened 31 15
Stores closed 1 35
Replacement stores 1 6
Total domestic auto parts
stores 3,098 2,999
Stores with commercial sales 2,001 1,633
Square footage (in thousands): 19,852 19,272
Auto parts stores in Mexico:
Stores opened 1 1
Total auto parts stores in
Mexico 40 22
TruckPro stores: -- 49
| Note: |
TruckPro was sold on |
| |
Dec. 19, 2001 |
Sales & Inventory Statistics (Domestic
auto parts):
12 Weeks Ended, 12 Weeks Ended
November 23, November 17,
2002 2001
Sales per average store ($ in
thousands) $385 $371
Sales per average square foot $60 $58
Same store sales - rolling 13 periods
Total 4.5 % 8.6 %
Retail vs. commercial
Retail 1.9 % 8.1 %
Commercial 28.2 % 13.8 %
Inventory turns:
Based on average inventories 2.2 X 2.2 X
Based on ending inventories 2.0 X 2.1 X
Inventory turns, net of payables:
Based on average inventories 8.5 X 7.2 X
Based on ending inventories 8.5 X 6.9 X
Accounts payable/inventory (total
company) 75 % 68 %
SOURCE AutoZone, Inc.
/CONTACT: Media, Ray Pohlman, +1-901-495-7962, or
ray.pohlman@autozone.com, or Financial, Jay Cook, +1-901-495-7005,
jay.cook@autozone.com, both of AutoZone, Inc./
/Web site: http://www.alldatadiy.com /