MEMPHIS, Tenn., Sep 25, 2001 /PRNewswire/ -- AutoZone, Inc. (NYSE:
AZO), today reported fourth quarter earnings per share of $1.07, before
non-recurring charges, a 27% increase from earnings per share of $0.84 in the
fourth quarter of fiscal 2000. Sales for the fourth fiscal quarter (16 weeks)
ended August 25, 2001, increased 10% to $1.64 billion from $1.49 billion
reported for the year ago quarter. Same store sales, or sales for domestic auto
parts stores open at least one year, increased 8% during the quarter.
AutoZone recorded total non-recurring charges in the fourth quarter of $92.6
million, after tax, or $0.83 per share. These charges include $68.4 million
relating to asset write-downs (including the anticipated loss on the sale of
TruckPro) and the accrual of lease obligations, primarily related to store
closings and projects under development that do not meet AutoZone's financial
return criteria. An additional $5.8 million includes the accrual of severance
agreements and costs related to the termination of various contracts. Cost of
goods sold includes non-recurring charges of $18.4 million, net of tax, relating
to excess or discontinued merchandise.
For the year, AutoZone reported diluted earnings per share of $2.38, before
non-recurring charges, an increase of 19% from $2.00 in fiscal 2000. For the
year, total non-recurring charges were $95.8 million, or $0.84 per share. Annual
sales rose 7% to $4.82 billion from $4.48 billion in the prior year, while same
store sales increased 4%.
"We are very pleased with the progress we made in the second half of our fiscal
year," said Steve Odland, chairman, president, and chief executive officer. "But
this is just the beginning of what we can do. We intend to continue to build
shareholder value over time through same store sales growth, tight expense
controls, and effective capital management."
For the year, AutoZone opened 107 new auto parts stores in the U.S., replaced 16
and closed three. In addition, eight new auto parts stores were opened in
Mexico. The fourth quarter non-recurring charge includes an adjustment related
to 35 stores the company has closed in the first quarter of fiscal 2002.
In addition, AutoZone's board of directors authorized the repurchase of an
additional $250 million of the company's common stock. The company has nearly
completed the repurchase of its previous authorization of $1.45 billion. As of
the end of the fourth quarter, aggregate share repurchases were $1.37 billion or
51.1 million shares, including $131 million or 3.9 million shares under forward
purchase contracts.
AutoZone will host a one-hour conference call Wednesday, September 26, 2001,
beginning at 9 a.m. (EDT) to discuss this press release and the outlook for
fiscal 2002. 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," or by going directly to
http://www.AutoZone.com/Investors . 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)
998-1504 through Wednesday October 3, 2001.
As of August 25, 2001, AutoZone sells auto and light truck parts, chemicals and
accessories through 3,019 AutoZone stores in 42 states plus the District of
Columbia in the U.S. and 21 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.
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, 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 4th Quarter - Fiscal 2001
Condensed Consolidated Statements
(in thousands, except per share data and selected operating data)
16 Weeks 16 Weeks 52 Weeks 52 Weeks
Ended Ended Ended Ended
August 25 August 26, August 25, August 26,
2001 2000 2001 2000
Net sales $1,640,663 $1,492,645 $4,818,185 $4,482,696
Cost of goods sold* 952,850 872,196 $2,804,896 2,602,386
Gross profit 687,813 620,449 2,013,289 1,880,310
Operating expenses 494,547 420,874 1,498,909 1,368,290
Restructuring and
impairment charges 121,489 126,689
Operating profit 71,777 199,575 387,691 512,020
Interest expense,net 28,300 28,355 100,665 76,830
Income before taxes 43,477 171,220 287,026 435,190
Taxes 17,000 66,000 111,500 167,600
Net income $26,477 $105,220 $175,526 $267,590
Net income per share:
Basic $0.24 $0.85 $1.56 $2.01
Basic, before
restructuring
charges $1.09 $0.85 $2.40 $2.01
Diluted $0.24 $0.84 $1.54 $2.00
Diluted, before
restructuring
charges $1.07 $0.84 $2.38 $2.00
Shares outstanding:
Basic 109,468 124,095 112,834 132,945
Diluted 111,415 124,900 113,801 133,869
* COGS includes $30.133 million of restructuring charges in the fourth
quarter.
Selected Balance Sheet Information
August 25, August 26,
2001 2000
Merchandise
inventories $1,242,896 $1,108,978
Current assets 1,328,511 1,186,780
Property & equipment,
net 1,710,443 1,758,440
Total assets 3,432,512 3,333,218
Accounts payable 945,666 788,825
Current liabilities 1,266,654 1,034,544
Stockholders' equity 866,213 992,179
Debt 1,225,402 1,249,937
Working capital 61,857 152,236
Selected Cash Flow Information
16 Weeks 16 Weeks 52 Weeks 52 Weeks
Ended Ended Ended Ended
August 25, August 26, August 25, August 26,
2001 2000 2001 2000
Capital spending $31,991 $69,513 $169,296 $249,657
Share repurchases $104,507 $263,417 $366,097 $639,925
Depreciation &
amortization $39,639 $38,719 $131,333 $126,800
AutoZone's 4th Quarter - Fiscal 2001
Selected Operating Highlights
Store Count & Square
Footage:
16 Weeks 16 Weeks 52 Weeks 52 Weeks
Ended Ended Ended Ended
August 25, August 26, August 25, August 26,
2001 2000 2001 2000
Domestic auto parts
stores:
Store count:
Stores opened 25 63 107 208
Stores closed -- 2 3 4
Replacement stores 3 11 16 30
Total domestic auto
parts stores 3,019 2,915
Square footage 19,377 18,719
Auto parts stores in
Mexico:
Stores opened 5 -- 8 7
Total auto parts
stores in Mexico 21 13
TruckPro stores:
Stores opened -- 1 -- 3
Replacement stores -- 1 -- 5
Total TruckPro
stores 49 49
Sales & Inventory
Statistics:
(Domestic auto parts)
16 Weeks 16 Weeks 52 Weeks 52 Weeks
Ended Ended Ended Ended
August 25, August 26, August 25, August 26,
2001 2000 2001 2000
Sales per average
store ($ in
thousands) $519 $493 $1,543 $1,517
Sales per average sq
foot $81 $77 $240 $236
Same store sales -
rolling 13 periods
Total 8% 3% 4% 5%
Organic vs
acquired:
Organic stores 6% 0% 3% 2%
Acquired 14% 22% 13% 27%
Retail vs
commercial:
Retail 7% 3% 4% 4%
Commercial 12% 7% 11% 8%
Inventory turns:
Based on average
inventories 2.4 X 2.3 X
Based on ending
inventories 2.2 X 2.3 X
Accounts
payable/inventory
(total) 76% 71%
AutoZone's 4th Quarter - Fiscal 2001
Condensed Consolidated Statements - Before Restructuring Charges
(in thousands, except per share data and selected operating data)
16 Weeks 16 Weeks 52 Weeks 52 Weeks
Ended Ended Ended Ended
August 25, August 26, August 25, August 26,
2001 2000 2001 2000
Net sales $1,640,663 $1,492,645 $4,818,185 $4,482,696
Cost of goods sold 922,717 872,196 $2,774,763 2,602,386
Gross profit 717,946 620,449 2,043,422 1,880,310
Operating expenses 494,547 420,874 1,498,909 1,368,290
Operating profit 223,399 199,575 544,513 512,020
Interest expense,net 28,300 28,355 100,665 76,830
Income before taxes 195,099 171,220 443,848 435,190
Taxes 76,000 66,000 172,500 167,600
Net income $119,099 $105,220 $271,348 $267,590
Net income per share:
Basic $1.09 $0.85 $2.40 $2.01
Diluted $1.07 $0.84 $2.38 $2.00
Shares outstanding:
Basic 109,468 124,095 112,834 132,945
Diluted 111,415 124,900 113,801 133,869
Selected Balance Sheet Information - Before Restructuring Charges
August 25, August 26,
2001 2000
Merchandise inventories $1,273,142 $1,108,978
Current assets 1,362,255 1,186,780
Property & equipment, net 1,764,691 1,758,440
Total assets 3,471,971 3,333,218
Accounts payable 945,666 788,825
Current liabilities 1,233,143 1,034,544
Stockholders' equity 962,032 992,179
Debt 1,225,402 1,249,937
Working capital 129,112 152,236
SOURCE AutoZone, Inc.
CONTACT: Emma Jo Kauffman of AutoZone, +1-901-495-7005