MEMPHIS, Tenn., May 23 /PRNewswire/ -- AutoZone, Inc. (NYSE: AZO), today
reported diluted earnings per share of $0.56 for its third fiscal quarter
(12 weeks) ended May 5, 2001, an increase of 12% from $0.50 reported for the
year ago quarter. Sales were $1.140 billion for the quarter, an increase of
8% from $1.059 billion in fiscal 2000. Same store sales, or sales for
domestic auto parts stores open at least one year, increased 5% during the
quarter, including 4% for retail sales and 11% for commercial sales. Earnings
before interest and taxes of $127.9 million increased 1% from $126.7 million
last year. Net income for the quarter decreased 6% to $63.5 million from
$67.3 million in the prior year. Operating expenses for the quarter include a
charge of $5.2 million relating to real estate sites dropped as a result of
the previously announced decrease in planned new store openings. Management
expects to complete a review of all under-performing assets prior to the end
of the fiscal year.
On a year-to-date basis, diluted earnings per share for the 36-week period
increased 10% to $1.30 from $1.18 in fiscal 2000. Year-to-date sales rose 6%
to $3.178 billion from $2.990 billion in the prior year. Year-to-date same
store sales increased 3%, including 2% for retail sales and 11% for commercial
sales. Year-to-date earnings before interest and taxes of $315.9 million
increased 1% from $312.4 million last year. Year-to-date net income of $149.0
million decreased 8% from $162.4 in fiscal 2000.
During the quarter, AutoZone opened 23 new auto parts stores in the U.S.,
replaced five and closed one. In addition, three new auto parts stores were
opened in Mexico. Year-to-date, AutoZone has opened 82 new, replaced 13, and
closed three auto parts stores in the U.S., and opened three stores in Mexico.
Aggregate share repurchases under the currently authorized $1.350 billion
share repurchase program are $1.263 billion or 43.0 million shares at the end
of the third quarter, including $130.8 million or 5.8 million shares under
forward purchase contracts.
"We are encouraged by the results of the third quarter," said Steve
Odland, chairman and chief executive officer. "In addition to strength in the
industry, we are pleased with the impact of our recent marketing and
merchandising initiatives, which led to very strong performance in the last
half of the quarter."
Separately, Timothy D. Vargo, announced his intention to step down from
his daily responsibilities as president and chief operating officer and as a
director in order to more closely attend to health matters in his family.
Mr.Vargo will continue his involvement with AutoZone at a less time-consuming
level. Mr. Odland will assume the title and responsibilities of president.
Robert J. Hunt, executive vice president and chief financial officer, has
also announced his intention to retire from the day-to-day duties of CFO. Mr.
Hunt has stepped down as a director, but will remain as CFO until a successor
is named. He will then continue to assist the company in other capacities.
"I have enjoyed working with Tim Vargo and Bob Hunt, so this is very
difficult," said Steve Odland. "Both Tim and Bob have asked to step away from
their daily responsibilities, but the timing is a coincidence. Each of them
has different personal or family reasons for requesting a decrease in their
daily work demands. Tim and Bob have made great contributions to AutoZone,
and I am very pleased that both of them will continue as AutoZoners, allowing
us the ongoing benefit of their wisdom and experience.
"For now, the senior vice presidents responsible for store operations,
supply chain, and merchandising will report to me. I am confident in the
strong management team that Tim has built and I look forward to the
opportunity to engage even more directly in the business."
AutoZone will host a one-hour conference call Thursday, May 24, 2001,
beginning at 9 a.m. (EDT), 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," or by going directly to
http://www.AutoZone.com/Investors. The call will also be available by dialing
(312) 470-0014. 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) 998-1196 through Thursday, May 31, 2001, at 4 p.m. (EDT).
As of May 5, 2001, AutoZone sells auto and light truck parts, chemicals
and accessories through 2,994 AutoZone stores in 42 states plus the District
of Columbia in the U.S. and 16 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, diagnostic and repair
information through alldatadiy.com, and auto and light truck parts through
AutoZone.com.
AutoZone's 3rd Quarter Highlights- Fiscal 2001
Condensed Consolidated Statement of Operations
(in thousands, except per share data and selected operating data)
12 Weeks 12 Weeks 36 Weeks 36 Weeks
Ended Ended Ended Ended
May 5, 2001 May 6, 2000 May 5, 2001 May 6, 2000
Net sales $1,139,957 $1,059,415 $3,177,522 $2,990,051
Cost of goods sold 657,379 609,497 1,852,046 1,730,190
Gross profit 482,578 449,918 1,325,476 1,259,861
Operating expenses 354,712 323,234 1,009,562 947,416
Operating profit 127,866 126,684 315,914 312,445
Interest expense, net 23,841 17,419 72,365 48,475
Income before taxes 104,025 109,265 243,549 263,970
Taxes 40,500 42,000 94,500 101,600
Net income $63,525 $67,265 $149,049 $162,370
Net income per share:
Basic $0.57 $0.50 $1.30 $1.19
Diluted $0.56 $0.50 $1.30 $1.18
Shares outstanding:
Basic 112,364 133,322 114,330 136,880
Diluted 113,037 134,424 114,861 137,855
Selected Consolidated Balance Sheet Information
(in thousands)
May 5, 2001 May 6, 2000 August 26, 2000
Merchandise inventories $1,214,942 $1,133,182 $1,108,978
Current assets 1,293,616 1,208,339 1,186,780
Property, plant &
equipment, net 1,770,310 1,720,274 1,758,440
Total assets 3,447,166 3,342,809 3,333,218
Accounts payable 782,007 659,019 788,825
Current liabilities 1,111,820 919,170 1,034,544
Stockholders' equity 889,646 1,145,572 992,179
Debt 1,392,729 1,215,411 1,249,937
Selected Consolidated Cash Flow Information
(in thousands)
12 Weeks 12 Weeks 36 Weeks 36 Weeks
Ended Ended Ended Ended
May 5, 2001 May 6, 2000 May 5, 2001 May 6, 2000
Capital spending $44,234 $54,136 $137,305 $180,144
Depreciation &
amortization $30,451 $27,125 $91,694 $88,081
Other Selected Financial Information
(in thousands) May 5, 2001 May 6, 2000 August 26, 2000
Working Capital $181,796 $289,169 $152,236
Cumulative share repurchases:
On balance sheet $1,132,504 $607,390 $870,915
Forward contracts $130,765 $300,144 $280,465
Total $1,263,269 $907,534 $1,151,380
AutoZone's 3rd Quarter Fiscal 2001
Selected Operating Highlights
Store Count & Square Footage
12 Weeks 12 Weeks 36 Weeks 36 Weeks
Ended Ended Ended Ended
May 5, 2001 May 6, 2000 May 5, 2001 May 6, 2000
Domestic auto parts stores:
Store count:
Stores opened 23 17 82 145
Stores closed 1 -- 3 2
Replacement stores 5 3 13 19
Total domestic auto
parts stores 2,994 2,854 2,994 2,854
Square footage
(in thousands) 19,223 18,269 19,223 18,269
Auto parts stores in Mexico:
Stores opened 3 2 3 7
Total auto parts
stores in Mexico 16 13 16 13
TruckPro stores:
Stores opened -- 1 -- 2
Replacement stores -- 1 -- 4
Total TruckPro stores 49 48 49 48
Sales & Inventory Statistics (Domestic auto parts):
12 Weeks 12 Weeks 36 Weeks 36 Weeks
Ended Ended Ended Ended
May 5, 2001 May 6, 2000 May 5, 2001 May 6, 2000
Sales per average store ($ in
thousands) $362 $354 $1,021 $1,023
Sales per average
sq foot $57 $55 $159 $160
Same store sales -
rolling 13 periods
Domestic auto parts
- total 5% 6% 3% 6%
Organic 3% 2% 1% 2%
Acquired 13% 33% 12% 30%
Retail 4% 5% 2% 5%
Commercial 11% 8% 11% 9%
Annual inventory turns:
Based on average
inventories 2.3 X 2.2 X
Based on ending
inventories 2.2 X 2.2 X
Accounts payable/inventory
(total company) 64% 58%
SOURCE AutoZone, Inc.
CONTACT: media, Andrew Burns, 901-495-7313, or financial, Emma Jo
Kauffman, 901-495-7005, both of AutoZone, Inc./