MEMPHIS, Tenn., Feb. 27 /PRNewswire/ -- AutoZone, Inc. (NYSE: AZO) today
reported diluted earnings per share of $0.28 for its second fiscal quarter
(12 weeks) ended February 10, 2001, flat with the year ago quarter. Sales
were $974 million for the quarter, an increase of 5% from $924 million in
fiscal 2000. Same store sales, or sales for domestic auto parts stores open
at least one year, increased 2% during the quarter, including 1% for retail
sales and 11% for commercial sales, with same store sales up 1% at internally
developed AutoZone stores and up 10% in the acquired stores. Same store sales
at TruckPro were flat for the quarter, while stores in Mexico continue to
report high same store sales increases. Earnings before interest and taxes of
$77.3 million decreased 3% from $80.0 million last year. Net income for the
quarter decreased 19% to $31.7 million from $39.1 million in the prior year.
On a year-to-date basis, diluted earnings per share for the 24-week period
increased 9% to $0.74 from $0.68. Year-to-date sales rose 6% to $2.04 billion
from $1.93 billion in the prior year. Year-to-date comparable store sales
increased 2%, with flat comparable store sales at internally developed
AutoZone stores and 11% at the acquired stores. Year-to-date earnings before
interest and taxes of $188.0 million increased 1% from $185.8 million last
year. Year-to-date net income of $85.5 million decreased 10% from
$95.1 million in fiscal 2000.
"It was a difficult quarter for us with lower than anticipated sales,
which we believe is attributable to high energy and gasoline prices and weaker
economic conditions," said Steve Odland, chairman and chief executive officer.
"We also had some unusual expense items in the quarter, which prevented us
from meeting our operating profit goals.
"But looking ahead, we are really encouraged by all of the opportunities
at AutoZone. We are developing some new and exciting ideas for merchandising
and marketing in the do-it-yourself business. We believe AutoZone has some
unique opportunities in the commercial business, and we are convinced of the
demand for auto and truck parts in Mexico. I look forward to working with Tim
Vargo, our president and chief operating officer, and a great team of
committed AutoZoners as we move this company forward."
During the quarter, AutoZone opened 18 new, replaced 3, and closed 2 auto
parts stores in the U.S. Year-to-date, AutoZone has opened 59 new, replaced
8, and closed 2 auto parts stores in the U.S.
Aggregate share repurchases under the currently authorized $1.35 billion
share repurchase program are $1.25 billion or 48.1 million shares at the end
of the second quarter, including $170.1 million or 7.5 million shares under
forward purchase contracts.
AutoZone is comfortable with current estimates of $0.55 for the third
quarter and $2.25 for the year, assuming the company meets its same store
sales goal of 2-4%.
AutoZone will host a one-hour conference call beginning at 4 p.m. (CST)
today to discuss the results of the quarter. 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 (630) 395-0173. A replay of the call and
slides will be available on the website. In addition, a replay of the call
will be available by dialing (402) 220-9795 through Tuesday, March 6, 2001, at
5 p.m.(CST).
AutoZone sells auto and light truck parts, chemicals and accessories
through 2,972 AutoZone stores in 42 states plus the District of Columbia in
the U.S. and 13 AutoZone stores in Mexico. AutoZone also sells heavy-duty
truck parts through 49 TruckPro stores in 15 states, and automotive diagnostic
and repair software through ALLDATA. On the web, AutoZone provides diagnostic
and repair information and sells 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, expected growth,
domestic and international development and expansion strategy, business
strategies and future performance. These forward-looking statements are
subject to risks, uncertainties and assumptions, including without limitation,
competition, product demand, domestic and international economies, inflation,
the ability to hire and retain qualified employees, consumer debt levels and
the weather. Actual results may materially differ from anticipated results.
Please refer to the Risk Factors section of Form 10-K for the year ended
August 26, 2000, for more details.
AutoZone's 2nd Quarter Highlights- Fiscal 2001
Condensed Consolidated Statement of Operations
(in thousands, except per share data and selected operating data)
12 Weeks 12 Weeks 24 Weeks 24 Weeks
Ended Ended Ended Ended
February 10 February 12, February 10, February 12,
2001 2000 2001 2000
Net sales $973,999 $924,164 $2,037,565 $1,930,636
Cost of goods sold 576,666 535,737 1,194,667 1,120,693
Gross profit 397,333 388,427 842,898 809,943
Operating expenses 320,053 308,414 654,850 624,182
Operating profit 77,280 80,013 188,048 185,761
Interest expense, net 25,544 16,452 48,524 31,056
Income before taxes 51,736 63,561 139,524 154,705
Taxes 20,000 24,500 54,000 59,600
Net income $31,736 $39,061 $85,524 $95,105
Net income per share:
Basic $0.28 $0.28 $0.74 $0.69
Diluted $0.28 $0.28 $0.74 $0.68
Shares outstanding:
Basic 113,908 138,056 115,312 138,659
Diluted 114,496 139,085 115,773 139,570
Selected Balance Sheet Information
(in thousands)
February 10, February 12, August, 26
2001 2000 2000
Merchandise inventories $1,159,161 $1,147,429 $1,108,978
Current assets 1,238,392 1,231,135 1,186,780
Property, plant &
equipment, net 1,756,108 1,699,860 1,758,440
Total assets 3,391,125 3,344,331 3,333,218
Accounts payable 659,284 691,236 788,825
Current liabilities 937,163 954,330 1,034,544
Stockholders' equity 878,573 1,200,170 992,179
Debt 1,520,045 1,122,271 1,249,937
Selected Cash Flow
Information
(in thousands)
12 Weeks 12 Weeks 24 Weeks 24 Weeks
Ended Ended Ended Ended
February 10, February 12, February 10, February 12,
2001 2000 2001 2000
Capital spending $38,023 $60,758 $93,071 $126,008
Depreciation &
amortization $30,779 $30,832 $61,243 $60,956
Other Selected Financial
Information
(in thousands) February 10, February 12, August 26,
2001 2000 2000
Working Capital* $301,229 $276,805 $152,236
Cumulative share
repurchases:
On balance sheet $1,075,626 $482,628 $870,915
Forward contracts $170,107 $146,342 $280,465
Total $1,245,733 $628,970 $1,151,380
Store Count & Square Footage
12 Weeks 12 Weeks 24 Weeks 24 Weeks
Ended Ended Ended Ended
February 10, February 12, February 10, February 12,
2001 2000 2001 2000
Domestic auto parts stores:
Store count:
Stores opened 18 41 59 128
Stores closed 2 -- 2 2
Replacement stores 3 3 8 16
Total domestic auto
parts stores 2,972 2,837 2,972 2,837
Square footage (in
thousands) 19,063 18,169
Auto parts stores in Mexico:
Stores opened -- 3 -- 5
Total auto parts
stores in Mexico 13 11 13 11
TruckPro stores:
Stores opened -- 1 -- 1
Replacement stores -- 2 -- 3
Total TruckPro stores 49 47 49 47
Sales & Inventory Statistics (Domestic auto parts):
12 Weeks 12 Weeks 24 Weeks 24 Weeks
Ended Ended Ended Ended
February 10, February 12, February 10, February 12,
2001 2000 2001 2000
Sales per average store ($ in
thousands) $311 $312 $656 $663
Sales per average sq
foot $48 $49 $102 $103
Same store sales - rolling 13 periods
Domestic auto
parts - total 2% 4% 2% 6%
Organic 1% 0% 0% 3%
Acquired 10% 31% 11% 28%
Retail 1% 3% 1% 5%
Commercial 11% 9% 10% 9%
Annual inventory turns:
Based on average
inventories 2.3 X 2.3 X
Based on ending
inventories 2.3 X 2.1 X
Accounts payable/
inventory(total
company) 57% 60%
http://www.autozone.com
SOURCE AutoZone, Inc.
CONTACT: Andrew Burns, 901-495-7313, or Emma Jo Kauffman,
901-495-7005, both of AutoZone, Inc./