Advance Auto Parts, Inc. (NYSE: AAP), the largest automotive aftermarket
parts provider in North America, serving both professional installer and
do-it-yourself customers, today announced its financial results for the
second quarter ended July 18, 2015. Second quarter comparable cash
earnings per diluted share (Comparable Cash EPS) were $2.27, which
included a $0.03 unfavorable impact from foreign currency and was an
increase of 9.1% versus the second quarter last year. These second
quarter comparable results exclude $0.08 of amortization of acquired
intangible assets and integration costs of $0.16 primarily associated
with the acquisition of General Parts International, Inc. (General
Parts).
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Comparable Second Quarter Performance Summary (1)
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Twelve Weeks Ended
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Twenty-Eight Weeks Ended
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July 18,
2015
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July 12,
2014
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July 18,
2015
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July 12,
2014
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Sales (in millions)
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$
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2,370.0
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$
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2,347.7
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$
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5,408.3
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$
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5,317.2
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Comp Store Sales %
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1.0
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%
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2.6
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%
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0.8
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%
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2.5
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%
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Gross Profit (in millions)
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$
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1,087.3
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$
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1,062.1
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$
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2,481.2
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$
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2,415.2
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Comparable SG&A (in millions)
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$
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801.8
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$
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799.4
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$
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1,887.5
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$
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1,868.2
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Comparable Operating Income (in millions)
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$
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285.5
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$
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262.7
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$
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593.8
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$
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547.1
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Comparable Cash EPS
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$
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2.27
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$
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2.08
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$
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4.65
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$
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4.33
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Avg Diluted Shares (in thousands)
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73,682
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73,399
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73,665
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73,374
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(1)
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Fiscal 2015 and 2014 include certain non-comparable expenses.
The Comparable SG&A, Comparable Operating Income and Comparable
Cash EPS for the twelve weeks ended July 18, 2015 and July 12,
2014, respectively, have been reported on a comparable basis to
exclude General Parts integration and store consolidation costs of
$18.6 million and $12.2 million, respectively, and General Parts
amortization of acquired intangible assets of $9.8 million and
$9.9 million, respectively. The Comparable SG&A, Comparable
Operating Income and Comparable Cash EPS for the twenty-eight
weeks ended July 18, 2015 and July 12, 2014, respectively, have
been reported on a comparable basis to exclude General Parts
integration and store consolidation costs of $51.3 million and
$27.7 million, respectively, and General Parts amortization of
acquired intangible assets of $22.9 million and $22.9 million,
respectively. For a better understanding of the Company's
comparable results, 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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“I would like to thank all our Team Members for their hard work during
the second quarter of 2015,” said Darren R. Jackson, Chief Executive
Officer. “Our second quarter comparable store sales increased 1.0% and
Comparable Cash EPS grew 9.1% to $2.27. These results were in-line with
our expectations given the continuing demands of the General Parts
integration. Our integration continues to be on-track overall along with
our sales and profitability.”
Second Quarter 2015 Highlights
Total sales for the second quarter increased 1.0% to $2.37 billion, as
compared with total sales during the second quarter of fiscal 2014 of
$2.35 billion. The sales increase was driven by the addition of new
stores over the past 12 months and a comparable store sales increase of
1.0% partially offset by changes in our independent store count. Our
comparable store sales were negatively impacted by 34 basis points due
to foreign currency fluctuations from our Canadian operations.
The Company's Gross Profit rate was 45.9% of sales during the second
quarter as compared to 45.2% during the second quarter last year. The 64
basis-point increase in gross profit rate was primarily the result of
lower product acquisition costs, inclusive of the Company's ongoing
merchandise cost synergy savings.
The Company's Comparable SG&A rate was 33.8% of sales during the second
quarter as compared to 34.0% during the same period last year. The 22
basis-point decrease was primarily the result of lower insurance costs
and overall lower administrative costs driven by synergy savings
partially offset by expense de-leverage as a result of our low
comparable store sales growth. On a GAAP basis, the Company's SG&A rate
was 35.0% of sales during the second quarter as compared to 35.0% during
the same period last year.
The Company's Comparable Operating Income was $285.5 million during the
second quarter, an increase of 8.7% versus the second quarter of fiscal
2014. As a percentage of sales, Comparable Operating Income in the
second quarter was 12.0% compared to 11.2% during the second quarter of
fiscal 2014. On a GAAP basis, the Company's operating income during the
second quarter of $257.0 million increased 6.8% versus the second
quarter of fiscal 2014. On a GAAP basis, the Operating Income rate was
10.8% during the second quarter as compared to 10.3% during the second
quarter of fiscal 2014.
Operating cash flow increased approximately 3.2% to $330.8 million
through the second quarter of fiscal 2015 from $320.6 million through
the second quarter of fiscal 2014. Free cash flow increased to $216.3
million through the second quarter of fiscal 2015 from $214.3 million
through the second quarter of fiscal 2014. Capital expenditures through
the second quarter of fiscal 2015 were $114.5 million as compared to
$106.3 million through the second quarter of fiscal 2014.
“Our teams once again delivered on our synergy expectations, expanded
our core gross margins and demonstrated expense discipline to grow our
Comparable Operating Income 8.7% in the quarter,” said Mike Norona,
Executive Vice President and Chief Financial Officer. “We continue to
stay focused on our base business while meeting our integration
milestones and remain on pace to deliver against our full-year guidance
for Comparable Cash EPS in the range of $8.10 to $8.30 including
achievement of our full-year synergy targets.”
2015 Full-Year Outlook
The Company is maintaining its full-year guidance for Comparable Cash
EPS of $8.10 to $8.30. As part of its on-going process of store
evaluations, the Company has identified, and is subsequently planning to
close 50 stores in the latter part of 2015 in line with the Company's
accelerated efforts to achieve its 12% comparable operating profit
target in 2016. The one-time expense impact of these closures is
expected to be between $16 and $20 million in 2015. This effectively
increases the 2015 full-year estimates for one-time expenses from the
original outlook of $75 to $85 million disclosed in the Company's fourth
quarter 2014 earnings release to now be between $91 to $105 million.
Store Information
As of July 18, 2015, the Company operated 5,252 stores and 117 Worldpac
branches and served approximately 1,300 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 18, 2015.
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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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January 3, 2015
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3,888
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210
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38
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1,125
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111
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5,372
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New
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35
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1
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—
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21
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6
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63
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Closed
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(7
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—
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—
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(1
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)
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—
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(8
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Consolidated
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(1
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(25
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)
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(2
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(30
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—
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(58
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Converted
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57
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(4
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(1
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(52
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—
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—
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July 18, 2015
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3,972
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182
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35
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1,063
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117
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5,369
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Dividend
On August 12, 2015, the Company's Board of Directors declared a regular
quarterly cash dividend of $0.06 per share to be paid on October 2, 2015
to stockholders of record as of September 18, 2015.
Investor Conference Call
The Company will host a conference call on Thursday, August 13, 2015, 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 13, 2016.
About Advance Auto Parts
Headquartered in Roanoke, Va., Advance Auto Parts, Inc., the largest
automotive aftermarket parts provider in North America, serves both the
professional installer and do-it-yourself customers. As of July 18, 2015
Advance operated 5,252 stores and 117 Worldpac branches and served
approximately 1,300 independently-owned Carquest branded stores in the
United States, Puerto Rico, the U.S. Virgin Islands and Canada. Advance
employs approximately 76,000 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, guidance for 2015
financial performance, 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, gross profit rate, SG&A, operating income, free
cash flow, income tax rate, General Parts integration costs and store
consolidation costs, synergies, expenses to achieve synergies,
comparable cash earnings per diluted share for fiscal year 2015,
comparable operating income rate targets 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 Parts' 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 January 3, 2015 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 18,
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January 3,
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July 12,
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2015
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2015
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2014
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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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114,536
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$
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104,671
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$
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67,446
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Receivables, net
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653,309
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579,825
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621,702
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Inventories, net
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4,119,592
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3,936,955
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3,936,035
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Other current assets
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90,491
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119,589
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|
90,098
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Total current assets
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4,977,928
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|
4,741,040
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4,715,281
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Property and equipment, net
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1,400,342
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|
1,432,030
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1,422,083
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Goodwill
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991,742
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|
995,426
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1,000,456
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Intangible assets, net
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714,702
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748,125
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779,401
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Other assets, net
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83,161
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45,737
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52,052
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$
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8,167,875
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$
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7,962,358
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$
|
7,969,273
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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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591
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$
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582
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$
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70,694
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Accounts payable
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|
3,174,411
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3,095,365
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3,054,064
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Accrued expenses
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547,848
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520,673
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572,912
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Other current liabilities
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156,908
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|
|
126,446
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|
|
77,017
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Total current liabilities
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3,879,758
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|
3,743,066
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|
|
3,774,687
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Long-term debt
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|
1,453,044
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|
|
1,636,311
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|
|
1,797,795
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Other long-term liabilities
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|
545,944
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|
|
580,069
|
|
|
582,266
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Total stockholders' equity
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|
2,289,129
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|
|
2,002,912
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|
|
1,814,525
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|
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$
|
8,167,875
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|
|
$
|
7,962,358
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|
|
$
|
7,969,273
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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. Certain balance sheet lines as of July 12, 2014
have been adjusted for opening balance sheet entries made subsequent to
our second quarter ended July 12, 2014.
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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 18, 2015 and July 12, 2014
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(in thousands, except per share data)
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(unaudited)
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Q2 2015
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Q2 2014
|
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As Reported
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Comparable
Adjustments (a)
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Comparable
|
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As Reported
|
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Comparable
Adjustments (a)
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Comparable
|
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Net sales
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$
|
2,370,037
|
|
|
$
|
—
|
|
|
$
|
2,370,037
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|
|
$
|
2,347,697
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|
|
$
|
—
|
|
|
$
|
2,347,697
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|
|
Cost of sales
|
|
1,282,748
|
|
|
—
|
|
|
1,282,748
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|
|
1,285,589
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|
|
—
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|
|
1,285,589
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Gross profit
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|
1,087,289
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|
|
—
|
|
|
1,087,289
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|
|
1,062,108
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|
|
—
|
|
|
1,062,108
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|
|
Selling, general and administrative expenses
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|
830,240
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|
|
(28,425
|
)
|
|
801,815
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|
|
821,435
|
|
|
(22,068
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)
|
|
799,367
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|
|
Operating income
|
|
257,049
|
|
|
28,425
|
|
|
285,474
|
|
|
240,673
|
|
|
22,068
|
|
|
262,741
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|
|
Other, net:
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|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(15,438
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)
|
|
—
|
|
|
(15,438
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)
|
|
(16,861
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)
|
|
—
|
|
|
(16,861
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)
|
|
Other (expense) income, net
|
|
(3,808
|
)
|
|
—
|
|
|
(3,808
|
)
|
|
208
|
|
|
—
|
|
|
208
|
|
|
Total other, net
|
|
(19,246
|
)
|
|
—
|
|
|
(19,246
|
)
|
|
(16,653
|
)
|
|
—
|
|
|
(16,653
|
)
|
|
Income before provision for income taxes
|
|
237,803
|
|
|
28,425
|
|
|
266,228
|
|
|
224,020
|
|
|
22,068
|
|
|
246,088
|
|
|
Provision for income taxes
|
|
87,805
|
|
|
10,801
|
|
|
98,606
|
|
|
84,532
|
|
|
8,386
|
|
|
92,918
|
|
|
Net income
|
|
$
|
149,998
|
|
|
$
|
17,624
|
|
|
$
|
167,622
|
|
|
$
|
139,488
|
|
|
$
|
13,682
|
|
|
$
|
153,170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (b)
|
|
$
|
2.04
|
|
|
$
|
0.24
|
|
|
$
|
2.28
|
|
|
$
|
1.91
|
|
|
$
|
0.19
|
|
|
$
|
2.09
|
|
|
Diluted earnings per share (b)
|
|
$
|
2.03
|
|
|
$
|
0.24
|
|
|
$
|
2.27
|
|
|
$
|
1.89
|
|
|
$
|
0.19
|
|
|
$
|
2.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares outstanding (b)
|
|
73,183
|
|
|
73,183
|
|
|
73,183
|
|
|
72,930
|
|
|
72,930
|
|
|
72,930
|
|
|
Average diluted common shares outstanding (b)
|
|
73,682
|
|
|
73,682
|
|
|
73,682
|
|
|
73,399
|
|
|
73,399
|
|
|
73,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
The comparable adjustments to Selling, general and
administrative expenses for Q2 2015 include General Parts
integration and store consolidation costs of $18.6 million and
General Parts amortization of acquired intangible assets of $9.8
million. The comparable adjustments to Selling, general and
administrative expenses for Q2 2014 include General Parts
integration and store consolidation costs of $12.2 million and
General Parts amortization of acquired intangible assets of $9.9
million.
|
|
|
|
|
|
(b)
|
|
Average common shares outstanding is calculated based on the
weighted average number of shares outstanding during the quarter.
At July 18, 2015 and July 12, 2014, we had 73,204 and 72,976
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 18, 2015 and July 12, 2014
|
|
(in thousands, except per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
As Reported
|
|
Comparable
Adjustments (a)
|
|
Comparable
|
|
As Reported
|
|
Comparable
Adjustments (a)
|
|
Comparable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
5,408,270
|
|
|
$
|
—
|
|
|
$
|
5,408,270
|
|
|
$
|
5,317,196
|
|
|
$
|
—
|
|
|
$
|
5,317,196
|
|
|
Cost of sales
|
|
2,927,057
|
|
|
—
|
|
|
2,927,057
|
|
|
2,901,966
|
|
|
—
|
|
|
2,901,966
|
|
|
Gross profit
|
|
2,481,213
|
|
|
—
|
|
|
2,481,213
|
|
|
2,415,230
|
|
|
—
|
|
|
2,415,230
|
|
|
Selling, general and administrative expenses
|
|
1,961,636
|
|
|
(74,176
|
)
|
|
1,887,460
|
|
|
1,918,755
|
|
|
(50,605
|
)
|
|
1,868,150
|
|
|
Operating income
|
|
519,577
|
|
|
74,176
|
|
|
593,753
|
|
|
496,475
|
|
|
50,605
|
|
|
547,080
|
|
|
Other, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(37,215
|
)
|
|
—
|
|
|
(37,215
|
)
|
|
(40,503
|
)
|
|
—
|
|
|
(40,503
|
)
|
|
Other (expense) income, net
|
|
(5,716
|
)
|
|
—
|
|
|
(5,716
|
)
|
|
811
|
|
|
—
|
|
|
811
|
|
|
Total other, net
|
|
(42,931
|
)
|
|
—
|
|
|
(42,931
|
)
|
|
(39,692
|
)
|
|
—
|
|
|
(39,692
|
)
|
|
Income before provision for income taxes
|
|
476,646
|
|
|
74,176
|
|
|
550,822
|
|
|
456,783
|
|
|
50,605
|
|
|
507,388
|
|
|
Provision for income taxes
|
|
178,536
|
|
|
28,187
|
|
|
206,723
|
|
|
169,569
|
|
|
19,230
|
|
|
188,799
|
|
|
Net income
|
|
$
|
298,110
|
|
|
$
|
45,989
|
|
|
$
|
344,099
|
|
|
$
|
287,214
|
|
|
$
|
31,375
|
|
|
$
|
318,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (b)
|
|
$
|
4.06
|
|
|
$
|
0.62
|
|
|
$
|
4.69
|
|
|
$
|
3.93
|
|
|
$
|
0.43
|
|
|
$
|
4.36
|
|
|
Diluted earnings per share (b)
|
|
$
|
4.03
|
|
|
$
|
0.62
|
|
|
$
|
4.65
|
|
|
$
|
3.90
|
|
|
$
|
0.43
|
|
|
$
|
4.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares outstanding (b)
|
|
73,148
|
|
|
73,148
|
|
|
73,148
|
|
|
72,895
|
|
|
72,895
|
|
|
72,895
|
|
|
Average diluted common shares outstanding (b)
|
|
73,665
|
|
|
73,665
|
|
|
73,665
|
|
|
73,374
|
|
|
73,374
|
|
|
73,374
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
The comparable adjustments to Selling, general and
administrative expenses for year-to-date 2015 include General
Parts integration and store consolidation costs of $51.3 million
and General Parts amortization of acquired intangible assets of
$22.9 million. The comparable adjustments to Selling, general and
administrative expenses for year-to-date 2014 include General
Parts integration and store consolidation costs of $27.7 million
and General Parts amortization of acquired intangible assets of
$22.9 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 18, 2015 and July 12, 2014, we had
73,204 and 72,976 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 18, 2015 and July 12, 2014
|
|
(in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
July 18,
|
|
July 12,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
298,110
|
|
|
$
|
287,214
|
|
|
Depreciation and amortization
|
|
145,860
|
|
|
152,703
|
|
|
Share-based compensation
|
|
17,726
|
|
|
12,363
|
|
|
(Benefit) provision for deferred income taxes
|
|
(8,481
|
)
|
|
12,201
|
|
|
Excess tax benefit from share-based compensation
|
|
(8,435
|
)
|
|
(5,138
|
)
|
|
Other non-cash adjustments to net income
|
|
8,459
|
|
|
2,391
|
|
|
Increase in:
|
|
|
|
|
|
Receivables, net
|
|
(76,124
|
)
|
|
(87,365
|
)
|
|
Inventories, net
|
|
(182,504
|
)
|
|
(217,372
|
)
|
|
Other assets
|
|
(10,498
|
)
|
|
(39,048
|
)
|
|
Increase in:
|
|
|
|
|
|
Accounts payable
|
|
85,907
|
|
|
169,352
|
|
|
Accrued expenses
|
|
55,741
|
|
|
32,181
|
|
|
Other liabilities
|
|
5,055
|
|
|
1,079
|
|
|
Net cash provided by operating activities
|
|
330,816
|
|
|
320,561
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Purchases of property and equipment
|
|
(114,535
|
)
|
|
(106,270
|
)
|
|
Business acquisitions, net of cash acquired
|
|
(16,431
|
)
|
|
(2,059,184
|
)
|
|
Proceeds from sales of property and equipment
|
|
477
|
|
|
130
|
|
|
Net cash used in investing activities
|
|
(130,489
|
)
|
|
(2,165,324
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Increase in bank overdrafts
|
|
9,880
|
|
|
6,221
|
|
|
Net (payments) borrowings on credit facilities
|
|
(183,400
|
)
|
|
815,000
|
|
|
Dividends paid
|
|
(13,227
|
)
|
|
(13,178
|
)
|
|
Proceeds from the issuance of common stock, primarily for employee
stock purchase plan
|
|
2,512
|
|
|
4,208
|
|
|
Tax withholdings related to the exercise of stock appreciation rights
|
|
(9,589
|
)
|
|
(4,120
|
)
|
|
Excess tax benefit from share-based compensation
|
|
8,435
|
|
|
5,138
|
|
|
Repurchase of common stock
|
|
(1,734
|
)
|
|
(757
|
)
|
|
Contingent consideration related to previous business acquisitions
|
|
—
|
|
|
(10,047
|
)
|
|
Other
|
|
(207
|
)
|
|
(406
|
)
|
|
Net cash (used in) provided by financing activities
|
|
(187,330
|
)
|
|
802,059
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
(3,132
|
)
|
|
(2,321
|
)
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
9,865
|
|
|
(1,045,025
|
)
|
|
Cash and cash equivalents, beginning of period
|
|
104,671
|
|
|
1,112,471
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
114,536
|
|
|
$
|
67,446
|
|
|
|
|
|
|
|
|
|
|
|
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 18, 2015 and July 12, 2014
|
|
(in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 18,
2015
|
|
July 12,
2014
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
$
|
330,816
|
|
|
$
|
320,561
|
|
|
Purchases of property and equipment
|
|
(114,535
|
)
|
|
(106,270
|
)
|
|
Free cash flow
|
|
$
|
216,281
|
|
|
$
|
214,291
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
Adjusted Debt to EBITDAR:
|
|
|
|
|
|
(In thousands, except adjusted debt to EBITDAR ratio)
|
|
Four Quarters Ended
|
|
|
|
July 18,
|
|
January 3,
|
|
|
|
2015
|
|
2015
|
|
|
|
(Four Quarters Ended)
|
|
(53 Weeks Ended)
|
|
Total debt
|
|
$
|
1,453,635
|
|
|
$
|
1,636,893
|
|
Add: Capitalized lease obligation (rent expense * 6)
|
|
3,155,292
|
|
|
3,038,904
|
|
Adjusted debt
|
|
4,608,927
|
|
|
4,675,797
|
|
|
|
|
|
|
|
Operating income
|
|
874,812
|
|
|
851,710
|
|
Add: Comparable adjustments (a)
|
|
105,827
|
|
|
82,234
|
|
Depreciation and amortization
|
|
277,859
|
|
|
284,693
|
|
EBITDA
|
|
1,258,498
|
|
|
1,218,637
|
|
Rent expense (less favorable lease amortization of $4,923 and
$4,972, respectively)
|
|
525,882
|
|
|
506,484
|
|
EBITDAR
|
|
$
|
1,784,380
|
|
|
$
|
1,725,121
|
|
|
|
|
|
|
|
Adjusted Debt to EBITDAR
|
|
2.6
|
|
|
2.7
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
The comparable adjustments to the four quarters ended July 18,
2015 include General Parts integration and store consolidation
costs of $105.8 million. The comparable adjustments to Fiscal 2014
include General Parts integration and store consolidation costs of
$82.2 million.
|
|
|
|
|
NOTE: Management believes its Adjusted Debt to EBITDAR ratio
(“leverage ratio”) is a key financial metric and believes its debt
levels are best analyzed using this measure. The Company’s goal is to
quickly pay down debt resulting from the GPI acquisition, get back to a
2.5 times leverage ratio and to maintain an investment grade rating. The
leverage ratio calculated by the Company is a non-GAAP measure and
should not be considered a substitute for debt to net earnings, net
earnings or debt as determined in accordance with GAAP. The Company’s
calculation of its leverage ratio might not be calculated in the same
manner as, and thus might not be comparable to, similarly titled
measures by other companies.
|
|
|
|
|
|
|
|
|
|
|
Second Quarter Performance Summary on a
GAAP Basis(a):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Weeks Ended
|
|
Twenty-Eight Weeks Ended
|
|
|
|
July 18,
|
|
July 12,
|
|
July 18,
|
|
July 12,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Sales (in millions)
|
|
$
|
2,370.0
|
|
|
$
|
2,347.7
|
|
|
$
|
5,408.3
|
|
|
$
|
5,317.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Comp Store Sales %
|
|
1.0
|
%
|
|
2.6
|
%
|
|
0.8
|
%
|
|
2.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit (in millions)
|
|
$
|
1,087.3
|
|
|
$
|
1,062.1
|
|
|
$
|
2,481.2
|
|
|
$
|
2,415.2
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A (in millions)
|
|
$
|
830.2
|
|
|
$
|
821.4
|
|
|
$
|
1,961.6
|
|
|
$
|
1,918.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (in millions)
|
|
$
|
257.0
|
|
|
$
|
240.7
|
|
|
$
|
519.6
|
|
|
$
|
496.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
$
|
2.03
|
|
|
$
|
1.89
|
|
|
$
|
4.03
|
|
|
$
|
3.90
|
|
|
|
|
|
|
|
|
|
|
|
|
Avg Diluted Shares (in thousands)
|
|
73,682
|
|
|
73,399
|
|
|
73,665
|
|
|
73,374
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
These financial measures for the twelve weeks ended July 18,
2015 have been reported on a GAAP basis which includes the impact
of General Parts integration and store consolidation costs of
$18.6 million and General Parts amortization of acquired
intangible assets of $9.8 million. These financial measures for
the twelve weeks ended July 12, 2014 have been reported on a GAAP
basis which includes the impact of General Parts integration and
store consolidation costs of $12.2 million and General Parts
amortization of acquired intangible assets of $9.9 million. These
financial measures for the twenty-eight weeks ended July 18, 2015
have been reported on a GAAP basis which includes the impact of
General Parts integration and store consolidation costs of $51.3
million and General Parts amortization of acquired intangible
assets of $22.9 million. These financial measures for the
twenty-eight weeks ended July 12, 2014 have been reported on a
GAAP basis which includes the impact of General Parts integration
and store consolidation costs of $27.7 million and General Parts
amortization of acquired intangible assets of $22.9 million. 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 our base business and is
therefore useful for investors and prospective investors.
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150813005348/en/
Copyright Business Wire 2015