MEMPHIS, Tenn., March 11 /PRNewswire-FirstCall/ -- AutoZone, Inc.
(NYSE: AZO) today announced the filing of its Form 10-Q for the fiscal second
quarter ended February 12, 2005.
As previously announced, based upon recent SEC clarification, these
financial statements include an adjustment associated with its accounting for
leases and related leasehold improvements. The non-cash adjustment expensed in
the quarter was $25.4 million net of tax ($0.31 per share), substantially all
of which related to prior years. For the remainder of fiscal 2005, the
Company expects this change in accounting to have an immaterial impact on its
results of operations.
As of February 12, 2005, AutoZone sells auto and light truck parts,
chemicals and accessories through 3,474 AutoZone stores in 48 states plus the
District of Columbia in the U.S. and 67 AutoZone stores in Mexico and also
sells the ALLDATA brand diagnostic and repair software. On the web, AutoZone
sells diagnostic and repair information and auto and light truck parts
through http://www.autozone.com .
Certain statements contained in this press release are forward-looking
statements. Forward-looking statements typically use words such as "believe,"
"anticipate," "should," "intend," "plan," "will," "expect," "estimate,"
"project," "positioned," "strategy," and similar expressions. These are based
on assumptions and assessments made by our management in light of experience
and perception of historical trends, current conditions, expected future
developments and other factors that we believe to be appropriate. These
forward-looking statements are subject to a number of risks and uncertainties,
including without limitation: competition; product demand; the economy; the
ability to hire and retain qualified employees; consumer debt levels;
inflation; raw material costs of our suppliers; gasoline prices; war and the
prospect of war, including terrorist activity; availability of consumer
transportation; construction delays; access to available and feasible
financing; and our ability to continue to negotiate pay-on-scan and other
arrangements with our vendors. Forward-looking statements are not guarantees
of future performance and actual results; developments and business decisions
may differ from those contemplated by such forward-looking statements, and
such events could materially and adversely affect our business. Forward-
looking statements speak only as of the date made. Except as required by
applicable law, we undertake no obligation to update publicly any forward-
looking statements, whether as a result of new information, future events or
otherwise. 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 28, 2004, for more information related to those
risks.
AutoZone's 2nd Quarter Highlights - Fiscal 2005
Condensed Consolidated Statements of Operations
2nd Quarter
(in thousands, except per share data)
GAAP Results
12 Weeks Ended 12 Weeks Ended
February 12, 2005 February 14, 2004
Net sales $1,204,055 $1,159,236
Cost of sales 621,684 594,925
Gross profit 582,371 564,311
Operating SG&A expenses 433,652 395,785
Operating profit (EBIT) 148,719 168,526
Interest expense, net 23,645 21,922
Income before taxes 125,074 146,604
Income taxes 30,981 54,950
Net income $94,093 $91,654
Net income per share:
Basic $1.18 $1.06
Diluted $1.16 $1.04
Weighted average shares outstanding:
Basic 79,692 86,618
Diluted 80,860 88,028
AutoZone's 2nd Quarter Highlights - Fiscal 2005
Condensed Consolidated Statements of Operations
2nd Quarter
(in thousands, except per share data)
Adjustments Adjusted
12 Weeks 12 Weeks 12 Weeks 12 Weeks
Ended Ended Ended Ended
Feb. 12, Feb. 14, Feb. 12, Feb. 14,
2005* 2004 2005* 2004
Net sales $- $- $1,204,055 $1,159,236
Cost of sales - - 621,684 594,925
Gross profit - - 582,371 564,311
Operating SG&A expenses (40,321) - 393,331 395,785
Operating profit (EBIT) 40,321 - 189,040 168,526
Interest expense, net - - 23,645 21,922
Income before taxes 40,321 - 165,395 146,604
Income taxes 30,219 - 61,200 54,950
Net income $10,102 $- $104,195 $91,654
Net income per share:
Basic $0.13 $- $1.31 $1.06
Diluted $0.12 $- $1.29 $1.04
Weighted average shares
outstanding:
Basic 79,692 86,618 79,692 86,618
Diluted 80,860 88,028 80,860 88,028
* Fiscal year 2005 includes a non-cash adjustment, substantially all of
which relates to prior years, of $25.4 million (net of tax) associated
with accounting for leases and leasehold improvements.
Additionally, fiscal year 2005 income taxes include a $15.3 million
benefit primarily from the planned one-time repatriation from foreign
subsidiaries.
Year-to-date 2nd Quarter, F2005
GAAP Results
24 Weeks Ended 24 Weeks Ended
February 12, 2005 February 14, 2004
Net sales $2,490,258 $2,441,276
Cost of sales 1,287,086 1,263,875
Gross profit 1,203,172 1,177,401
Operating SG&A expenses 838,140 793,771
Operating profit (EBIT) 365,032 383,630
Interest expense, net 45,435 42,182
Income before taxes 319,597 341,448
Income taxes 102,981 128,050
Net income $216,616 $213,398
Net income per share:
Basic $2.72 $2.43
Diluted $2.68 $2.39
Weighted average shares outstanding:
Basic 79,702 87,679
Diluted 80,803 89,219
Year-to-date 2nd Quarter, F2005
Adjustments Adjusted
24 Weeks 24 Weeks 24 Weeks 24 Weeks
Ended Ended Ended Ended
Feb. 12, Feb. 14, Feb. 12, Feb. 14,
2005* 2004** 2005* 2004**
Net sales $- $- $2,490,258 $2,441,276
Cost of sales - 16,000 1,287,086 1,279,875
Gross profit - (16,000) 1,203,172 1,161,401
Operating SG&A expenses (40,321) - 797,819 793,771
Operating profit (EBIT) 40,321 (16,000) 405,353 367,630
Interest expense, net - - 45,435 42,182
Income before taxes 40,321 (16,000) 359,918 325,448
Income taxes 30,219 (6,003) 133,200 122,048
Net income $10,102 $(9,997) $226,718 $203,400
Net income per share:
Basic $0.13 $(0.11) $2.84 $2.32
Diluted $0.13 $(0.11) $2.81 $2.28
Weighted average shares
outstanding:
Basic 79,702 87,679 79,702 87,679
Diluted 80,803 89,219 80,803 89,219
* Fiscal year 2005 includes a non-cash adjustment, substantially all of
which relates to prior years, of $25.4 million (net of tax) associated
with accounting for leases and leasehold improvements.
Additionally, fiscal year 2005 income taxes include a $15.3 million
benefit primarily from the planned one-time repatriation from foreign
subsidiaries.
** Fiscal 2004 cost of sales includes a $16 million pre-tax gain from
warranty.
SOURCE AutoZone, Inc.
03/11/2005
CONTACT: Financial, Brian Campbell, +1-901-495-7005, or
brian.campbell@autozone.com , or Media, Ray Pohlman, +1-901-495-7962, or
ray.pohlman@autozone.com , both of AutoZone, Inc.
Web site: http://www.autozone.com
(AZO)