MEMPHIS, Tenn., Dec 4, 2001 /PRNewswire via COMTEX/ -- AutoZone, Inc. (NYSE:
AZO), today reported diluted earnings per share of $0.76 for its first quarter
(12 weeks) ended November 17, 2001, a 65% increase from diluted earnings per
share of $0.46 in the first quarter of fiscal 2001. Sales for the quarter
increased 11% to $1.18 billion from $1.06 billion reported for the year ago
quarter. Same store sales, or sales for domestic auto parts stores open at least
one year, increased 9% during the quarter. Operating profits were up 40% to $156
million from $111 million, with operating margins of 13.2%, compared to 10.4%
last year.
"We had a great quarter," said Steve Odland, chairman, president, and chief
executive officer. "Our sales and gross margins indicate that our marketing and
merchandising initiatives are making an impact. We also showed good operating
expense leverage as we executed our operating plan. Our business is strong and
we continue to find new ways to serve our customers as we focus on increasing
shareholder value.
"We are in a dynamic and growing industry, and that growth is accelerating with
the increase in the population of cars and light trucks seven years and older,
the vehicles our typical customers drive. Moreover, growth in our industry is
not hurt by the economic slowdown. We believe the number of miles driven may
actually increase with lower gas prices and as people choose driving over
flying. As miles driven increase, vehicles need more maintenance.
"The addition of new merchandise, along with more effective advertising and
marketing have increased AutoZone's market share, and we believe, has helped
expand the size of the industry. Our profit margins are improving as we
implement our strategic plan. New merchandise, better product cost, strategic
pricing, and relentless expense discipline have helped us restore and to begin
to exceed our historically strong EBIT margins.
"Our cash flow and financial returns continue to improve. The strong, stable
cash flow provided by our hard parts business, when combined with increased
hurdle rates for new investments, should drive steady cash flow growth and
improving return on invested capital. Finally, our share buyback program is a
further boost to EPS. In the past three years, we have repurchased more than a
third of our shares at bargain prices. Our reduced share base will continue to
contribute significantly to shareholder value in the future."
Aggregate share repurchases under the currently authorized share repurchase
program at the end of the quarter were $1.48 billion or 53.2 million shares at
an average price of $28 per share, including $170 million or 3.8 million shares
at an average price of $44 per share under forward purchase contracts.
In the quarter, AutoZone signed an agreement to sell TruckPro, its heavy- duty
truck parts subsidiary, to an investment group. The transaction is subject to
standard closing conditions and satisfactory due diligence by the buyer.
AutoZone expects the sale to close in its second fiscal quarter.
AutoZone opened 15 new auto parts stores in the U.S., replaced 6 and, as
previously announced, closed 35. In addition, one new auto parts store was
opened in Mexico.
AutoZone will host a one-hour conference call Wednesday, December 5, 2001,
beginning at 10 a.m. (EST) to discuss this press release. Investors may listen
to the conference call live and review supporting slides on the AutoZone
website, www.AutoZone.com, by clicking "About Us," "Investor Relations,"
"Conference Calls." The call will also be available by dialing (712) 271-3887. A
replay of the call and slides will be available on AutoZone's website. In
addition, a replay of the call will be available by dialing (402) 998-1093
through Wednesday, December 12, 2001, at midnight (EST).
As of November 17, 2001, AutoZone sells auto and light truck parts, chemicals
and accessories through 2,999 AutoZone stores in 43 states plus the District of
Columbia in the U.S. and 22 AutoZone stores in Mexico, and automotive diagnostic
and repair software through ALLDATA, diagnostic and repair information through
alldatadiy.com, and auto and light truck parts through AutoZone.com. AutoZone
stock is traded on the New York Stock Exchange and is included in the Standard &
Poors 500 Index.
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, accuracy of
estimates, competition, product demand, the economy, inflation, gasoline prices,
the ability to hire and retain qualified employees, 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. 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.
AutoZone's 1st Quarter - Fiscal 2002
Condensed Consolidated Statements
(in thousands, except per share data and selected operating data)
12 Weeks Ended 12 Weeks Ended
November 17, 2001 November 18, 2000
(unaudited) (unaudited)
Net sales $1,176,052 $1,063,566
Cost of goods sold 659,916 618,001
Gross profit 516,136 445,565
Operating expenses 360,632 334,797
Operating profit 155,504 110,768
Interest expense, net 19,427 22,980
Income before taxes 136,077 87,788
Taxes 52,000 34,000
Net income $84,077 $53,788
Net income per share:
Basic $0.78 $0.46
Diluted $0.76 $0.46
Shares outstanding:
Basic 107,984 116,717
Diluted 110,605 117,050
Selected Balance Sheet Information
November 17, 2001 November 18, 2000 August 25, 2001
(unaudited) (unaudited)
Merchandise
inventories $1,325,437 $1,179,999 $1,242,896
Current assets 1,416,383 1,256,358 1,328,511
Property & equipment,
net 1,698,124 1,749,414 1,710,443
Total assets 3,504,852 3,409,708 3,432,512
Accounts payable 894,928 791,611 945,666
Current liabilities 1,241,770 1,047,374 1,266,654
Stockholders' equity 910,268 895,851 866,213
Debt 1,280,642 1,408,378 1,225,402
Working capital 174,613 208,984 61,857
Selected Cash Flow Information
12 Weeks Ended 12 Weeks Ended
November 17, 2001 November 18, 2000
(unaudited) (unaudited)
Capital spending $16,211 $55,048
Share repurchases $69,447 $154,640
Depreciation & amortization $28,169 $30,464
AutoZone's 1st Quarter - Fiscal 2002
Selected Operating Highlights
(unaudited)
Store Count & Square Footage:
12 Weeks Ended 12 Weeks Ended
November 17, 2001 November 18, 2000
Domestic auto parts stores:
Store count:
Stores opened 15 41
Stores closed 35 --
Replacement stores 6 5
Total domestic auto parts stores 2,999 2,956
Square footage (000's) 19,272 18,962
Auto parts stores in Mexico:
Stores opened 1 --
Total auto parts stores in
Mexico 22 13
TruckPro stores:
Stores opened -- --
Total TruckPro stores 49 49
Sales & Inventory Statistics:
(Domestic auto parts)
12 Weeks Ended 12 Weeks Ended
November 17, 2001 November 18, 2000
Sales per average store ($ in
thousands) $371 $345
Sales per average sq foot $58 $54
Same store sales - rolling 13 periods
Total 9% 2%
Organic vs acquired:
Organic stores 8% 0%
Acquired 14% 12%
Retail vs commercial:
Retail 8% 1%
Commercial 14% 10%
Inventory turns:
Based on average inventories 2.2 X 2.2 X
Based on ending inventories 2.1 X 2.2 X
Inventory turns, net of payables:
Based on average inventories 7.2 X 6.5 X
Based on ending inventories 6.9 X 7.1 X
Accounts payable/inventory (total) 68% 67%
SOURCE AutoZone, Inc.
CONTACT: Emma Jo Kauffman of AutoZone, Inc., +1-901-495-7005