Advance Auto Parts, Inc. (NYSE: AAP), the largest automotive aftermarket
parts provider in North America, serving both do-it-yourself and
professional installer customers, today announced its financial results
for the second quarter ended July 12, 2014. Second quarter comparable
cash earnings per diluted share (EPS) were $2.08, an increase of 30.0%
versus the second quarter last year. These second quarter comparable
results exclude $0.08 of amortization of acquired intangible assets,
integration costs of $0.08 associated with the acquisition of General
Parts International, Inc. (General Parts) and $0.02 of integration costs
associated with the integration of B.W.P. Distributors, Inc. (BWP).
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Comparable Second Quarter Performance Summary (1,2)
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Twelve Weeks Ended
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Twenty-Eight Weeks Ended
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July 12,
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July 13,
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July 12,
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July 13,
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2014
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2013
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2014
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2013
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Sales (in millions)
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$
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2,347.7
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$
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1,549.6
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$
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5,317.2
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$
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3,564.9
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Comp Store Sales %
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2.6
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%
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(0.3
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%)
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2.5
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%
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(2.0
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%)
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Gross Profit (in millions)
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$
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1,062.1
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$
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779.2
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$
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2,415.2
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$
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1,787.4
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Comparable SG&A (in millions)
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$
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799.4
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$
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583.2
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$
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1,868.2
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$
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1,385.6
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Comparable Operating Income (in millions)
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$
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262.7
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$
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196.1
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$
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547.1
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$
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401.8
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Comparable Cash EPS
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$
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2.08
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$
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1.60
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$
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4.33
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$
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3.26
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Avg Diluted Shares (in thousands)
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73,399
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73,343
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73,374
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73,607
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(1)
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The Comparable SG&A, Comparable Operating Income and Comparable Cash
EPS for the twelve and twenty-eight weeks ended July 12, 2014 have
been reported on a comparable basis to exclude BWP integration costs
of $2.8 million and $6.8 million, respectively, General Parts
integration costs of $9.4 million and $20.9 million, respectively,
and General Parts amortization of acquired intangible assets of $9.9
million and $22.9 million, respectively. The Comparable SG&A,
Comparable Operating Income and Comparable Cash EPS for the twelve
and twenty-eight weeks ended July 13, 2013 have been reported on a
comparable basis to exclude BWP integration costs of $1.4 million
and $3.1 million, respectively. Refer to the presentation of the
respective financial measures on a GAAP basis and reconciliation of
the financial results reported on a comparable basis to the GAAP
basis in the accompanying financial tables in this press release.
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(2)
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Consistent with its comparable store sales policy, the Company will
not include the sales from General Parts in its comparable store
sales results in 2014.
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"We are pleased with our second quarter performance led by strong
execution from our Team Members delivering Comparable Cash EPS growth of
30% and an increase in comparable store sales of 2.6% in the quarter,"
said Darren R. Jackson, Chief Executive Officer. "We remain on pace
against our base business expectations, integration milestones and with
our financial performance.”
Second Quarter 2014 Highlights
Total sales for the second quarter increased 51.5% to $2.35 billion, as
compared with total sales during the second quarter of fiscal 2013 of
$1.55 billion. The sales increase was driven by the acquisition of
General Parts, solid execution delivering a comparable store sales
increase of 2.6% and the addition of new stores over the past 12 months.
Year-to-date, total sales increased 49.2% to $5.32 billion, compared
with total sales of $3.56 billion over the same period last year.
The Company's gross profit rate was 45.2% of sales during the second
quarter as compared to 50.3% during the second quarter last year. The
505 basis-point decrease in gross profit rate was primarily due to the
higher mix of commercial sales which has a lower gross margin rate
resulting from the acquisition of General Parts partially offset by
synergy savings in the quarter. Year-to-date, the Company's gross profit
rate was 45.4%, a 472 basis-point decrease over the same period last
year.
The Company's Comparable SG&A rate was 34.0% of sales during the second
quarter as compared to 37.6% during the same period last year. The 358
basis-point decrease was the result of the acquired General Parts
business having a lower SG&A costs and fixed cost leverage from the
positive sales performance, partially offset by higher incentive
compensation due to our better sales performance. On a GAAP basis, the
Company's SG&A rate was 35.0% of sales during the second quarter as
compared to 37.7% during the same period last year. Year-to-date, the
Company's Comparable SG&A rate was 35.1% versus 38.9% during the same
period last year. Year-to-date, the Company's GAAP SG&A rate was 36.1%
versus 39.0% during the same period last year.
The Company's Comparable Operating Income was $262.7 million during the
second quarter, an increase of 34.0% versus the second quarter of fiscal
2013. As a percentage of sales, Comparable Operating Income in the
second quarter was 11.2% compared to 12.7% during the second quarter of
fiscal 2013. On a GAAP basis, the Company's operating income during the
second quarter of $240.7 million increased 23.6% versus the second
quarter of fiscal 2013. On a GAAP basis, the Operating Income rate was
10.3% during the second quarter as compared to 12.6% during the second
quarter of fiscal 2013. Year-to-date, the Company's Comparable Operating
Income rate was 10.3% versus 11.3% during the same period last year.
Year-to-date, the Company's GAAP Operating Income rate was 9.3% versus
11.2% during the same period last year.
Operating cash flow increased approximately 3% to $320.6 million from
$310.1 million through the second quarter of fiscal 2013. Free cash flow
increased approximately 8% to $214.3 million from $198.2 million through
the second quarter of fiscal 2013. Capital expenditures through the
second quarter were $106.3 million as compared to $111.9 million through
the second quarter of fiscal 2013.
“We are pleased with the continued progress made during our second
quarter delivering positive sales performance and approximately 34%
growth in Comparable Operating Income dollars,” said Mike Norona,
Executive Vice President and Chief Financial Officer. “We continue to
stay focused on our base business while meeting our integration
milestones to date and remain confident in achieving our full year
synergy estimates. Given our performance in the first half of the year
and the execution and integration momentum we continue to build, we are
raising our full year guidance for Comparable Cash EPS to be in the
range of $7.50 - $7.60.”
Store Information
As of July 12, 2014, the Company operated 5,289 company-operated stores
and 106 Worldpac branches, and served approximately 1,400
independently-owned Carquest stores. The below table summarizes the
changes in the number of the company-operated stores and branches during
the twenty-eight weeks ended July 12, 2014.
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AAP
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AI
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BWP
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CARQUEST
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WORLDPAC
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Total
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December 28, 2013
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3,741
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217
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91
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—
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—
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4,049
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New
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34
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4
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—
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10
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3
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51
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Closed
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(2
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(1
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—
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(10
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—
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(13
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Acquired
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—
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—
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—
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1,233
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103
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1,336
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Consolidated
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—
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—
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(28
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—
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—
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(28
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Converted
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19
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—
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(19
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)
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—
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—
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—
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July 12, 2014
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3,792
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220
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44
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1,233
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106
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5,395
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Dividend
On August 13, 2014, the Company's Board of Directors declared a regular
quarterly cash dividend of $0.06 per share to be paid on October 3, 2014
to stockholders of record as of September 19, 2014.
Investor Conference Call
The Company will host a conference call on Thursday, August 14, 2014, at
10:00 a.m. Eastern Time to discuss its quarterly results. To listen to
the live call, please log on to the Company's website, www.AdvanceAutoParts.com,
or dial (866) 908-1AAP. The call will be archived on the Company's
website until August 14, 2015.
About Advance Auto Parts
Headquartered in Roanoke, Va., Advance Auto Parts, Inc., the largest
automotive aftermarket parts provider in North America, serves both
do-it-yourself and professional installer customers. As of July 12, 2014
Advance operated 5,289 stores, 106 Worldpac branches, and served
approximately 1,400 independently owned Carquest branded stores in 49
states, Puerto Rico, the Virgin Islands and Canada. Advance employs
approximately 74,000 Team Members. Additional information about the
Company, employment opportunities, customer services, and on-line
shopping for parts, accessories and other offerings can be found on the
Company's website at www.AdvanceAutoParts.com.
Forward Looking Statements
Certain statements contained in this release are forward-looking
statements, as that term is used in the Private Securities Litigation
Reform Act of 1995. Forward-looking statements address future events or
developments, and typically use words such as believe, anticipate,
expect, intend, plan, forecast, outlook or estimate. These forward
looking statements include, but are not limited to, statements regarding
the benefits and other effects of the acquisition of General Parts; the
combined company’s plans, objectives and expectations; expected growth
and future performance of AAP, including store growth, capital
expenditures, comparable store sales, SG&A, operating income, gross
profit rate, free cash flow, integration costs for BWP and General
Parts, synergies, expenses to achieve synergies, comparable cash
earnings per diluted share for fiscal year 2014; earnings per share
impact for the 53rd week of fiscal 2014 and other statements that are
not historical facts. These forward-looking statements are subject to
significant risks, uncertainties and assumptions, and actual future
events or results may differ materially from such forward-looking
statements. Such differences may result from, among other things, the
risk that the benefits of the General Parts acquisition, including
synergies, may not be fully realized or may take longer to realize than
expected; the possibility that the General Parts acquisition may not
advance AAP’s business strategy; the risk that AAP may experience
difficulty integrating General Part’s employees, business systems and
technology; the potential diversion of AAP’s management’s attention from
AAP’s other businesses resulting from the General Parts acquisition; the
impact of the General Parts acquisition on third-party relationships,
including customers, wholesalers, independently owned and jobber stores
and suppliers; changes in regulatory, social and political conditions,
as well as general economic conditions; competitive pressures; demand
for AAP’s and General Part’s products; the market for auto parts; the
economy in general; inflation; consumer debt levels; the weather;
business interruptions; information technology security; availability of
suitable real estate; dependence on foreign suppliers; and other factors
disclosed in AAP’s 10-K for the fiscal year ended December 28, 2013 and
other filings made by AAP with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these
forward-looking statements. AAP intends these forward-looking statements
to speak only as of the time of this communication and does not
undertake to update or revise them as more information becomes available.
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Advance Auto Parts, Inc. and Subsidiaries
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Condensed Consolidated Balance Sheets
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(in thousands)
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(unaudited)
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July 12,
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December 28,
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July 13,
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2014
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2013
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2013
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Assets
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Current assets:
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Cash and cash equivalents
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$
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67,446
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$
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1,112,471
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$
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520,969
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Receivables, net
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622,432
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277,595
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281,714
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Inventories, net
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3,935,157
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2,556,557
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2,407,041
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Other current assets
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89,741
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42,761
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66,555
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Total current assets
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4,714,776
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3,989,384
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3,276,279
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Property and equipment, net
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1,422,083
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1,283,970
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1,285,029
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Assets held for sale
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615
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2,064
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2,237
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Goodwill
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1,001,213
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199,835
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199,791
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Intangible assets, net
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779,401
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49,872
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56,155
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Other assets, net
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51,437
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39,649
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32,797
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$
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7,969,525
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$
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5,564,774
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$
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4,852,288
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Liabilities and Stockholders' Equity
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Current liabilities:
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Current portion of long-term debt
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$
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70,694
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$
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916
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$
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878
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Accounts payable
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3,054,340
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2,180,614
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2,048,202
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Accrued expenses
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579,199
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428,625
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450,253
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Other current liabilities
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69,940
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|
154,630
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|
140,332
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Total current liabilities
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3,774,173
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|
2,764,785
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2,639,665
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Long-term debt
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1,797,795
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1,052,668
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604,117
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Other long-term liabilities
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583,032
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231,116
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|
239,527
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Total stockholders' equity
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1,814,525
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|
1,516,205
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|
1,368,979
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|
|
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$
|
7,969,525
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$
|
5,564,774
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$
|
4,852,288
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|
|
|
|
|
|
|
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NOTE: These preliminary condensed consolidated balance sheets have
been prepared on a basis consistent with our previously prepared balance
sheets filed with the Securities and Exchange Commission for our prior
quarter and annual report, but do not include the footnotes required by
generally accepted accounting principles, or GAAP, for complete
financial statements.
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Advance Auto Parts, Inc. and Subsidiaries
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Condensed Consolidated Statements of Operations
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Twelve Week Periods Ended
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July 12, 2014 and July 13, 2013
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(in thousands, except per share data)
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(unaudited)
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Q2 2014
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Q2 2013
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Comparable
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Comparable
|
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As Reported
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Adjustments (a)
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Comparable
|
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As Reported
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Adjustments (a)
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Comparable
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Net sales
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$
|
2,347,697
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|
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$
|
—
|
|
|
$
|
2,347,697
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|
|
$
|
1,549,553
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|
|
$
|
—
|
|
|
$
|
1,549,553
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|
|
Cost of sales
|
|
1,285,589
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|
|
—
|
|
|
1,285,589
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|
|
770,330
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|
|
—
|
|
|
770,330
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|
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Gross profit
|
|
1,062,108
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|
|
—
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|
|
1,062,108
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|
|
779,223
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|
|
—
|
|
|
779,223
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|
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Selling, general and administrative expenses
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|
821,435
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|
|
(22,068
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)
|
|
799,367
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|
|
584,541
|
|
|
(1,390
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)
|
|
583,151
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|
|
Operating income
|
|
240,673
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|
|
22,068
|
|
|
262,741
|
|
|
194,682
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|
|
1,390
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|
|
196,072
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|
|
Other, net:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Interest expense
|
|
(16,861
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)
|
|
—
|
|
|
(16,861
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)
|
|
(8,024
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)
|
|
—
|
|
|
(8,024
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)
|
|
Other income, net
|
|
208
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|
|
—
|
|
|
208
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|
|
365
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|
|
—
|
|
|
365
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|
|
Total other, net
|
|
(16,653
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)
|
|
—
|
|
|
(16,653
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)
|
|
(7,659
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)
|
|
—
|
|
|
(7,659
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)
|
|
Income before provision for income taxes
|
|
224,020
|
|
|
22,068
|
|
|
246,088
|
|
|
187,023
|
|
|
1,390
|
|
|
188,413
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|
|
Provision for income taxes
|
|
84,532
|
|
|
8,386
|
|
|
92,918
|
|
|
70,152
|
|
|
528
|
|
|
70,680
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|
|
Net income
|
|
$
|
139,488
|
|
|
$
|
13,682
|
|
|
$
|
153,170
|
|
|
$
|
116,871
|
|
|
$
|
862
|
|
|
$
|
117,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (b)
|
|
$
|
1.91
|
|
|
$
|
0.19
|
|
|
$
|
2.09
|
|
|
$
|
1.60
|
|
|
$
|
0.01
|
|
|
$
|
1.61
|
|
|
Diluted earnings per share (b)
|
|
$
|
1.89
|
|
|
$
|
0.19
|
|
|
$
|
2.08
|
|
|
$
|
1.59
|
|
|
$
|
0.01
|
|
|
$
|
1.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares outstanding (b)
|
|
72,930
|
|
|
72,930
|
|
|
72,930
|
|
|
72,930
|
|
|
72,930
|
|
|
72,930
|
|
|
Average diluted common shares outstanding (b)
|
|
73,399
|
|
|
73,399
|
|
|
73,399
|
|
|
73,343
|
|
|
73,343
|
|
|
73,343
|
|
|
|
|
|
|
(a)
|
|
The comparable adjustments to Selling, general and
administrative expenses for Q2 2014 includes BWP integration costs
of $2.8 million, General Parts integration costs of $9.4 million
and General Parts amortization of $9.9 million related to the
acquired intangible assets. The comparable adjustments to Selling,
general and administrative expenses for Q2 2013 includes BWP
integration costs of $1.4 million.
|
|
|
|
|
|
(b)
|
|
Average common shares outstanding is calculated based on the
weighted average number of shares outstanding during the quarter.
At July 12, 2014 and July 13, 2013, we had 72,976 and 72,835
shares outstanding, respectively.
|
|
|
|
|
NOTE: These preliminary condensed consolidated statements of
operations have been prepared on a basis consistent with our previously
prepared statements of operations filed with the Securities and Exchange
Commission for our prior quarter and annual report, with the exception
of the footnotes required by GAAP for complete financial statements and
inclusion of certain non-GAAP adjustments and measures as described in
footnote (a) above. Management believes the reporting of comparable
results is important in assessing the overall performance of the
business and is therefore useful for investors and prospective investors.
|
|
|
Advance Auto Parts, Inc. and Subsidiaries
|
|
Condensed Consolidated Statements of Operations
|
|
Twenty-Eight Week Periods Ended
|
|
July 12, 2014 and July 13, 2013
|
|
(in thousands, except per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
Comparable
|
|
|
|
|
|
Comparable
|
|
|
|
|
|
As Reported
|
|
Adjustments (a)
|
|
Comparable
|
|
As Reported
|
|
Adjustments (a)
|
|
Comparable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
5,317,196
|
|
|
$
|
—
|
|
|
$
|
5,317,196
|
|
|
$
|
3,564,857
|
|
|
$
|
—
|
|
|
$
|
3,564,857
|
|
|
Cost of sales
|
|
2,901,966
|
|
|
—
|
|
|
2,901,966
|
|
|
1,777,428
|
|
|
—
|
|
|
1,777,428
|
|
|
Gross profit
|
|
2,415,230
|
|
|
—
|
|
|
2,415,230
|
|
|
1,787,429
|
|
|
—
|
|
|
1,787,429
|
|
|
Selling, general and administrative expenses
|
|
1,918,755
|
|
|
(50,605
|
)
|
|
1,868,150
|
|
|
1,388,679
|
|
|
(3,091
|
)
|
|
1,385,588
|
|
|
Operating income
|
|
496,475
|
|
|
50,605
|
|
|
547,080
|
|
|
398,750
|
|
|
3,091
|
|
|
401,841
|
|
|
Other, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(40,503
|
)
|
|
—
|
|
|
(40,503
|
)
|
|
(18,684
|
)
|
|
—
|
|
|
(18,684
|
)
|
|
Other income, net
|
|
811
|
|
|
—
|
|
|
811
|
|
|
1,323
|
|
|
—
|
|
|
1,323
|
|
|
Total other, net
|
|
(39,692
|
)
|
|
—
|
|
|
(39,692
|
)
|
|
(17,361
|
)
|
|
—
|
|
|
(17,361
|
)
|
|
Income before provision for income taxes
|
|
456,783
|
|
|
50,605
|
|
|
507,388
|
|
|
381,389
|
|
|
3,091
|
|
|
384,480
|
|
|
Provision for income taxes
|
|
169,569
|
|
|
19,230
|
|
|
188,799
|
|
|
142,728
|
|
|
1,175
|
|
|
143,903
|
|
|
Net income
|
|
$
|
287,214
|
|
|
$
|
31,375
|
|
|
$
|
318,589
|
|
|
$
|
238,661
|
|
|
$
|
1,916
|
|
|
$
|
240,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (b)
|
|
$
|
3.93
|
|
|
$
|
0.43
|
|
|
$
|
4.36
|
|
|
$
|
3.26
|
|
|
$
|
0.03
|
|
|
$
|
3.28
|
|
|
Diluted earnings per share (b)
|
|
$
|
3.90
|
|
|
$
|
0.43
|
|
|
$
|
4.33
|
|
|
$
|
3.23
|
|
|
$
|
0.03
|
|
|
$
|
3.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares outstanding (b)
|
|
72,895
|
|
|
72,895
|
|
|
72,895
|
|
|
73,081
|
|
|
73,081
|
|
|
73,081
|
|
|
Average diluted common shares outstanding (b)
|
|
73,374
|
|
|
73,374
|
|
|
73,374
|
|
|
73,607
|
|
|
73,607
|
|
|
73,607
|
|
|
|
|
|
|
(a)
|
|
The comparable adjustments to Selling, general and
administrative expenses for year-to-date 2014 includes BWP
integration costs of $6.8 million, General Parts integration costs
of $20.9 million and General Parts amortization of $22.9 million
related to the acquired intangible assets. The comparable
adjustments to Selling, general and administrative expenses for
year-to-date 2013 includes BWP integration costs of $3.1 million.
|
|
|
|
|
|
(b)
|
|
Average common shares outstanding is calculated based on the
weighted average number of shares outstanding during the
year-to-date period. At July 12, 2014 and July 13, 2013, we had
72,976 and 72,835 shares outstanding, respectively.
|
|
|
|
|
NOTE: These preliminary condensed consolidated statements of
operations have been prepared on a basis consistent with our previously
prepared statements of operations filed with the Securities and Exchange
Commission for our prior quarter and annual report, with the exception
of the footnotes required by GAAP for complete financial statements and
inclusion of certain non-GAAP adjustments and measures as described in
footnote (a) above. Management believes the reporting of comparable
results is important in assessing the overall performance of the
business and is therefore useful for investors and prospective investors.
|
|
|
Advance Auto Parts, Inc. and Subsidiaries
|
|
Condensed Consolidated Statements of Cash Flows
|
|
Twenty-Eight Week Periods Ended
|
|
July 12, 2014 and July 13, 2013
|
|
(in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
July 12,
|
|
July 13,
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
287,214
|
|
|
$
|
238,661
|
|
|
Depreciation and amortization
|
|
152,703
|
|
|
112,072
|
|
|
Share-based compensation
|
|
12,363
|
|
|
4,593
|
|
|
Provision (benefit) for deferred income taxes
|
|
12,201
|
|
|
(5,893
|
)
|
|
Excess tax benefit from share-based compensation
|
|
(5,138
|
)
|
|
(14,570
|
)
|
|
Other non-cash adjustments to net income
|
|
2,391
|
|
|
1,281
|
|
|
Increase in:
|
|
|
|
|
|
|
|
Receivables, net
|
|
(87,365
|
)
|
|
(33,266
|
)
|
|
Inventories, net
|
|
(217,372
|
)
|
|
(53,997
|
)
|
|
Other assets
|
|
(39,048
|
)
|
|
(13,965
|
)
|
|
Increase (decrease) in:
|
|
|
|
|
|
|
|
Accounts payable
|
|
169,352
|
|
|
(18,915
|
)
|
|
Accrued expenses
|
|
32,181
|
|
|
93,683
|
|
|
Other liabilities
|
|
1,079
|
|
|
406
|
|
|
Net cash provided by operating activities
|
|
320,561
|
|
|
310,090
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
(106,270
|
)
|
|
(111,904
|
)
|
|
Business acquisitions, net of cash acquired
|
|
(2,059,184
|
)
|
|
(187,211
|
)
|
|
Sale of certain assets of acquired business
|
|
—
|
|
|
16,798
|
|
|
Proceeds from sales of property and equipment
|
|
130
|
|
|
148
|
|
|
Net cash used in investing activities
|
|
(2,165,324
|
)
|
|
(282,169
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Increase (decrease) in bank overdrafts
|
|
6,221
|
|
|
(8,724
|
)
|
|
Net borrowings (payments) on credit facilities
|
|
815,000
|
|
|
—
|
|
|
Dividends paid
|
|
(13,178
|
)
|
|
(13,193
|
)
|
|
Proceeds from the issuance of common stock, primarily exercise of
stock options
|
|
4,208
|
|
|
3,029
|
|
|
Tax withholdings related to the exercise of stock appreciation rights
|
|
(4,120
|
)
|
|
(19,891
|
)
|
|
Excess tax benefit from share-based compensation
|
|
5,138
|
|
|
14,570
|
|
|
Repurchase of common stock
|
|
(757
|
)
|
|
(75,788
|
)
|
|
Contingent consideration related to previous business acquisitions
|
|
(10,047
|
)
|
|
(4,726
|
)
|
|
Other
|
|
(406
|
)
|
|
(340
|
)
|
|
Net cash provided by (used in) financing activities
|
|
802,059
|
|
|
(105,063
|
)
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
(2,321
|
)
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents
|
|
(1,045,025
|
)
|
|
(77,142
|
)
|
|
Cash and cash equivalents, beginning of period
|
|
1,112,471
|
|
|
598,111
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
67,446
|
|
|
$
|
520,969
|
|
|
|
|
|
|
|
|
|
|
|
NOTE: These preliminary condensed consolidated statements of
cash flows have been prepared on a consistent basis with previously
prepared statements of cash flows filed with the Securities and Exchange
Commission for our prior quarter and annual report, but do not include
the footnotes required by GAAP for complete financial statements.
|
|
|
Advance Auto Parts, Inc. and Subsidiaries
|
|
Supplemental Financial Schedules
|
|
Twenty-Eight Week Periods Ended
|
|
July 12, 2014 and July 13, 2013
|
|
(in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 12,
|
|
July 13,
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
$
|
320,561
|
|
|
$
|
310,090
|
|
|
Purchases of property and equipment
|
|
(106,270
|
)
|
|
(111,904
|
)
|
|
Free cash flow
|
|
$
|
214,291
|
|
|
$
|
198,186
|
|
|
|
|
|
|
|
|
|
|
|
NOTE: Management uses free cash flow as a measure of our
liquidity and believes it is a useful indicator to stockholders of our
ability to implement our growth strategies and service our debt. Free
cash flow is a non-GAAP measure and should be considered in addition to,
but not as a substitute for, information contained in our condensed
consolidated statement of cash flows.
|
|
|
Second Quarter Performance Summary on a
GAAP Basis(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Weeks Ended
|
|
Twenty-Eight Weeks Ended
|
|
|
|
July 12,
|
|
July 13,
|
|
July 12,
|
|
July 13,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales (in millions)
|
|
$
|
2,347.7
|
|
|
$
|
1,549.6
|
|
|
$
|
5,317.2
|
|
|
$
|
3,564.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comp Store Sales %
|
|
|
2.6
|
%
|
|
|
(0.3
|
%)
|
|
|
2.5
|
%
|
|
|
(2.0
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit (in millions)
|
|
$
|
1,062.1
|
|
|
$
|
779.2
|
|
|
$
|
2,415.2
|
|
|
$
|
1,787.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A (in millions)
|
|
$
|
821.4
|
|
|
$
|
584.5
|
|
|
$
|
1,918.8
|
|
|
$
|
1,388.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (in millions)
|
|
$
|
240.7
|
|
|
$
|
194.7
|
|
|
$
|
496.5
|
|
|
$
|
398.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
$
|
1.89
|
|
|
$
|
1.59
|
|
|
$
|
3.90
|
|
|
$
|
3.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Avg Diluted Shares (in thousands)
|
|
|
73,399
|
|
|
|
73,343
|
|
|
|
73,374
|
|
|
|
73,607
|
|
|
|
|
|
|
(1)
|
|
These financial measures for the twelve and twenty-eight weeks
ended July 12, 2014 have been reported on a GAAP basis which
includes the impact of BWP integration costs of $2.8 million and
$6.8 million, respectively, General Parts integration costs of
$9.4 million and $20.9 million, respectively, and General Parts
amortization of acquired intangible assets of $9.9 million and
$22.9 million, respectively. These financial measures for the
twelve and twenty-eight weeks ended July 13, 2013 have been
reported on a GAAP basis which includes the impact of BWP
integration costs of $1.4 million and $3.1 million, respectively.
These financial measures should be read in conjunction with our
financial measures presented on a comparable basis earlier in this
press release. Management believes the reporting of financial
results on a non-GAAP basis to remain comparable is important in
assessing the overall performance of the business and is therefore
useful for investors and prospective investors.
|
|
|
|
|
Copyright Business Wire 2014