Advance Auto Parts Reports Second Quarter 2024 Results
Advance Auto Parts (NYSE: AAP) reported its Q2 2024 results with flat net sales of $2.7 billion and a 0.4% increase in comparable store sales. The company's gross profit decreased 2.3% to $1.1 billion, with a margin of 41.5% compared to 42.5% in Q2 2023. Operating income fell to $71.8 million (2.7% of net sales) from 4.7% in Q2 2023. Diluted EPS dropped to $0.75 from $1.32 year-over-year.
AAP announced the sale of Worldpac for $1.5 billion to strengthen its balance sheet. The company declared a regular cash dividend of $0.25 per share. For the full year 2024, AAP projects net sales between $11,150 million and $11,250 million, with comparable store sales ranging from -1.0% to 0.0%.
Advance Auto Parts (NYSE: AAP) ha riportato i risultati del Q2 2024 con vendite nette stabili a 2,7 miliardi di dollari e un incremento del 0,4% delle vendite nei negozi comparabili. L'utile lordo è diminuito del 2,3% a 1,1 miliardi di dollari, con un margine del 41,5% rispetto al 42,5% del Q2 2023. Il reddito operativo è sceso a 71,8 milioni di dollari (2,7% delle vendite nette) dal 4,7% del Q2 2023. L'EPS diluito è diminuito a 0,75 dollari rispetto a 1,32 dollari anno su anno.
AAP ha annunciato la vendita di Worldpac per 1,5 miliardi di dollari per rafforzare il suo bilancio. L'azienda ha dichiarato un dividendo in contante regolare di 0,25 dollari per azione. Per l'intero anno 2024, AAP prevede vendite nette comprese tra 11.150 milioni e 11.250 milioni di dollari, con vendite nei negozi comparabili che variano da -1,0% a 0,0%.
Advance Auto Parts (NYSE: AAP) reportó sus resultados del Q2 2024 con ventas netas estables de 2.7 mil millones de dólares y un aumento del 0.4% en las ventas de tiendas comparables. La ganancia bruta de la compañía disminuyó un 2.3% a 1.1 mil millones de dólares, con un margen del 41.5% comparado con el 42.5% en el Q2 2023. Los ingresos operativos cayeron a 71.8 millones de dólares (2.7% de las ventas netas) desde el 4.7% en el Q2 2023. El EPS diluido cayó a 0.75 dólares desde 1.32 dólares en comparación con el año anterior.
AAP anunció la venta de Worldpac por 1.5 mil millones de dólares para fortalecer su balance. La empresa declaró un dividendo en efectivo regular de 0.25 dólares por acción. Para el año completo 2024, AAP proyecta ventas netas entre 11,150 millones y 11,250 millones de dólares, con ventas en tiendas comparables que oscilan entre -1.0% y 0.0%.
Advance Auto Parts (NYSE: AAP)는 2024년 2분기 실적을 보고하며 변동 없는 순매출 27억 달러와 비교 가능한 매장 매출이 0.4% 증가했다고 발표했습니다. 회사의 총 이익은 2.3% 감소하여 11억 달러에 도달했으며, 2023년 2분기의 42.5%에서 41.5%의 마진을 기록했습니다. 영업 이익은 감소했습니다 7180만 달러(순매출의 2.7%)로 2023년 2분기의 4.7%에서 감소했습니다. 희석 EPS는 작년 대비 1.32달러에서 0.75달러로 떨어졌습니다.
AAP는 재무 상태를 강화하기 위해 Worldpac을 15억 달러에 판매한다고 발표했습니다. 회사는 주당 0.25달러의 정기 현금 배당금을 선언했습니다. 2024년 전체 연도 동안 AAP는 순매출을 111억 5천만 달러에서 112억 5천만 달러 사이로 예상하며, 비교 가능한 매장 매출은 -1.0%에서 0.0% 사이로 예측하고 있습니다.
Advance Auto Parts (NYSE: AAP) a publié ses résultats du deuxième trimestre 2024 avec des ventes nettes stables de 2,7 milliards de dollars et une augmentation de 0,4% des ventes dans les magasins comparables. Le bénéfice brut de l'entreprise a diminué de 2,3% pour atteindre 1,1 milliard de dollars, avec une marge de 41,5% comparé à 42,5% au Q2 2023. Le revenu opérationnel a chuté à 71,8 millions de dollars (2,7% des ventes nettes) contre 4,7% au Q2 2023. Le BPA dilué a baissé à 0,75 dollar contre 1,32 dollar d'une année sur l'autre.
AAP a annoncé la vente de Worldpac pour 1,5 milliard de dollars pour renforcer son bilan. L'entreprise a déclaré un dividende en espèces régulier de 0,25 dollar par action. Pour l'année complète 2024, AAP projette des ventes nettes comprises entre 11 150 millions et 11 250 millions de dollars, avec des ventes comparables allant de -1,0% à 0,0%.
Advance Auto Parts (NYSE: AAP) berichtete über seine Ergebnisse für das zweite Quartal 2024 mit stabilen Nettoumsätzen von 2,7 Milliarden US-Dollar und einem Zuwachs von 0,4% bei den vergleichbaren Verkaufszahlen. Der Bruttogewinn des Unternehmens fiel um 2,3% auf 1,1 Milliarden US-Dollar, mit einer Marge von 41,5% im Vergleich zu 42,5% im Q2 2023. Der Betriebsertrag fiel auf 71,8 Millionen US-Dollar (2,7% des Nettoumsatzes) von 4,7% im Q2 2023. Der verwässerte EPS fiel von 1,32 US-Dollar auf 0,75 US-Dollar im Jahresvergleich.
AAP gab den Verkauf von Worldpac für 1,5 Milliarden US-Dollar bekannt, um die Bilanz zu stärken. Das Unternehmen erklärte eine reguläre Bardividende von 0,25 US-Dollar pro Aktie. Für das gesamte Jahr 2024 prognostiziert AAP Nettoumsätze zwischen 11.150 Millionen und 11.250 Millionen US-Dollar, bei vergleichbaren Verkaufszahlen von -1,0% bis 0,0%.
- Sale of Worldpac for $1.5 billion to strengthen balance sheet
- 0.4% increase in comparable store sales
- Declared regular cash dividend of $0.25 per share
- Improved free cash flow to an outflow of $4.6 million compared to $312.0 million outflow in the same period last year
- Gross profit decreased 2.3% to $1.1 billion
- Gross profit margin declined to 41.5% from 42.5% year-over-year
- Operating income fell to 2.7% of net sales from 4.7% in Q2 2023
- Diluted EPS dropped to $0.75 from $1.32 year-over-year
- SG&A expenses increased to 38.9% of net sales from 37.8% in Q2 2023
- Full year 2024 guidance projects flat to negative comparable store sales
Insights
Advance Auto Parts' Q2 2024 results paint a mixed picture. While comparable store sales increased by
The sale of Worldpac for
The automotive aftermarket sector is facing challenging demand conditions, as evidenced by Advance Auto Parts' modest
The projected flat to negative comparable store sales for the full year 2024 hints at industry-wide challenges. Investors should consider broader economic factors affecting consumer spending on auto maintenance and repairs. The company's emphasis on improving sales trajectory and asset productivity will be critical in navigating these market conditions and delivering value to shareholders.
“Our team delivered positive comparable sales growth while navigating a challenging demand environment during the second quarter. I would like to thank the team for their hard work and dedication to serving our customers,” said Shane O’Kelly, president and chief executive officer. “We continue to make progress on our decisive actions with an increased focus on the Advance blended box. This morning, we announced the sale of Worldpac for
Second Quarter 2024 Results (1,2)
Second quarter 2024 net sales totaled
The company's gross profit decreased
SG&A expenses were
The company's operating income was
The company's effective tax rate was
Net cash provided by operating activities was
Capital Allocation
On August 7, 2024, the company declared a regular cash dividend of
_______________________________
(1) All comparisons are based on the same time period in the prior year. The company calculates comparable store sales based on the change in store or branch sales starting once a location has been open for approximately one year and by including e-commerce sales and excluding sales fulfilled by distribution centers to independently owned Carquest locations. Acquired stores are included in the company's comparable store sales one year after acquisition. The company includes sales from relocated stores in comparable store sales from the original date of opening. |
(2) As reported in the company’s fourth quarter and full year 2023 earnings release, the company corrected non-material errors in certain previously reported financials. All comparisons are based on the corrected historical results as presented in the company’s prior earnings release dated February 29, 2024. |
Full Year 2024 Guidance
|
|
As of August 22, 2024 |
||||||
($ in millions, except per share data) |
|
Low |
|
High |
||||
Net sales |
|
$ |
11,150 |
|
|
$ |
11,250 |
|
Comparable store sales (1) |
|
|
(1.0 |
)% |
|
|
0.0 |
% |
Operating income margin |
|
|
2.1 |
% |
|
|
2.5 |
% |
Diluted EPS |
|
$ |
2.00 |
|
|
$ |
2.50 |
|
Capital expenditures |
|
$ |
200 |
|
|
$ |
250 |
|
Free cash flow (2) |
|
Minimum |
||||||
(1) |
The company calculates comparable store sales based on the change in store or branch sales starting once a location has been open for approximately one year and by including e-commerce sales and excluding sales fulfilled by distribution centers to independently owned Carquest locations. Acquired stores are included in the company's comparable store sales one year after acquisition. The company includes sales from relocated stores in comparable store sales from the original date of opening. |
(2) |
Free cash flow is a non-GAAP measure. For a better understanding of the company's non-GAAP adjustments, refer to the reconciliation of non-GAAP financial measures in the accompanying financial tables. |
Investor Conference Call
The company will detail its results for the second quarter ended July 13, 2024, via a webcast scheduled to begin at 8 a.m. Eastern Time on Thursday, August 22, 2024. The webcast will be accessible via the Investor Relations page of the company's website (ir.AdvanceAutoParts.com).
To join by phone, please pre-register online for dial-in and passcode information. Upon registering, participants will receive a confirmation with call details and a registrant ID. While registration is open through the live call, the company suggests registering a day in advance or at minimum 10 minutes before the start of the call. A replay of the conference call will be available on the company's Investor Relations website for one year.
About Advance Auto Parts
Advance Auto Parts, Inc. is a leading automotive aftermarket parts provider that serves both professional installers and do-it-yourself customers. As of July 13, 2024, Advance operated 4,776 stores and 321 Worldpac branches primarily within
Forward-Looking Statements
Certain statements herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are usually identifiable by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast, “guidance,” “intend,” “likely,” “may,” “plan,” “position,” “possible,” “potential,” “probable,” “project,” “should,” “strategy,” “will,” or similar language. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, statements about the company’s strategic initiatives, operational plans and objectives, statements about the sale of the company’s Worldpac business, including statements regarding the benefits of the sale and the anticipated timing of closing, statements regarding expectations for economic conditions, future business and financial performance, as well as statements regarding underlying assumptions related thereto. Forward-looking statements reflect the company’s views based on historical results, current information and assumptions related to future developments. Except as may be required by law, the company undertakes no obligation to update any forward-looking statements made herein. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements. They include, among others, the company’s ability to hire, train and retain qualified employees, the timing and implementation of strategic initiatives, deterioration of general macroeconomic conditions, geopolitical conflicts, the highly competitive nature of the industry, demand for the company’s products and services, the company’s ability to consummate the sale of Worldpac on a timely basis or at all, including failure to obtain the required regulatory approvals or to satisfy the other conditions to the closing, the company’s use of proceeds and ability to maintain credit ratings, access to financing on favorable terms, complexities in the company’s inventory and supply chain challenges with transforming and growing its business. Please refer to “Item 1A. Risk Factors” of the company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), as updated by the company’s subsequent filings with the SEC, for a description of these and other risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements.
Advance Auto Parts, Inc. and Subsidiaries |
|||||
Condensed Consolidated Balance Sheets |
|||||
(In thousands) |
|||||
|
|||||
|
July 13, 2024 |
|
December 30, 2023 |
||
|
(Unaudited) |
|
(Audited) |
||
Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
479,418 |
|
$ |
503,471 |
Receivables, net |
|
847,609 |
|
|
800,141 |
Inventories, net |
|
4,903,490 |
|
|
4,857,702 |
Other current assets |
|
229,623 |
|
|
215,707 |
Total current assets |
|
6,460,140 |
|
|
6,377,021 |
Property and equipment, net |
|
1,579,886 |
|
|
1,648,546 |
Operating lease right-of-use assets |
|
2,596,201 |
|
|
2,578,776 |
Goodwill |
|
990,266 |
|
|
991,743 |
Other intangible assets, net |
|
577,275 |
|
|
593,341 |
Other assets |
|
86,038 |
|
|
86,899 |
Total assets |
$ |
12,289,806 |
|
$ |
12,276,326 |
Liabilities and Stockholders' Equity |
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable |
$ |
4,048,321 |
|
$ |
4,177,974 |
Accrued expenses |
|
694,970 |
|
|
671,237 |
Other current liabilities |
|
513,483 |
|
|
458,194 |
Total current liabilities |
|
5,256,774 |
|
|
5,307,405 |
Long-term debt |
|
1,787,867 |
|
|
1,786,361 |
Noncurrent operating lease liabilities |
|
2,177,074 |
|
|
2,215,766 |
Deferred income taxes |
|
375,658 |
|
|
362,542 |
Other long-term liabilities |
|
85,681 |
|
|
84,524 |
Total stockholders' equity |
|
2,606,752 |
|
|
2,519,728 |
Total liabilities and stockholders’ equity |
$ |
12,289,806 |
|
$ |
12,276,326 |
Advance Auto Parts, Inc. and Subsidiaries |
|||||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||||
(In thousands, except per share data) (unaudited) |
|||||||||||||||
|
|
|
|
|
|||||||||||
|
Twelve Weeks Ended |
|
Twenty-Eight Weeks Ended |
||||||||||||
|
July 13, 2024 |
|
July 15, 2023 (1) |
|
July 13, 2024 |
|
July 15, 2023 (1) |
||||||||
Net sales |
$ |
2,683,053 |
|
|
$ |
2,686,066 |
|
|
$ |
6,089,307 |
|
|
$ |
6,103,659 |
|
Cost of sales, including purchasing and warehousing costs |
|
1,568,745 |
|
|
|
1,545,611 |
|
|
|
3,545,924 |
|
|
|
3,501,277 |
|
Gross profit |
|
1,114,308 |
|
|
|
1,140,455 |
|
|
|
2,543,383 |
|
|
|
2,602,382 |
|
Selling, general and administrative expenses |
|
1,042,557 |
|
|
|
1,014,495 |
|
|
|
2,385,610 |
|
|
|
2,378,484 |
|
Operating income |
|
71,751 |
|
|
|
125,960 |
|
|
|
157,773 |
|
|
|
223,898 |
|
Other, net: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(18,668 |
) |
|
|
(20,869 |
) |
|
|
(43,543 |
) |
|
|
(50,587 |
) |
Other income, net |
|
9,011 |
|
|
|
1,684 |
|
|
|
7,720 |
|
|
|
1,009 |
|
Total other, net |
|
(9,657 |
) |
|
|
(19,185 |
) |
|
|
(35,823 |
) |
|
|
(49,578 |
) |
Income before provision for income taxes |
|
62,094 |
|
|
|
106,775 |
|
|
|
121,950 |
|
|
|
174,320 |
|
Provision for income taxes |
|
17,103 |
|
|
|
28,198 |
|
|
|
36,947 |
|
|
|
47,420 |
|
Net income |
$ |
44,991 |
|
|
$ |
78,577 |
|
|
$ |
85,003 |
|
|
$ |
126,900 |
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common share |
$ |
0.75 |
|
|
$ |
1.32 |
|
|
$ |
1.43 |
|
|
$ |
2.14 |
|
Weighted-average common shares outstanding |
|
59,633 |
|
|
|
59,451 |
|
|
|
59,590 |
|
|
|
59,384 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per common share |
$ |
0.75 |
|
|
$ |
1.32 |
|
|
$ |
1.42 |
|
|
$ |
2.13 |
|
Weighted-average common shares outstanding |
|
59,905 |
|
|
|
59,604 |
|
|
|
59,868 |
|
|
|
59,570 |
|
(1) |
The condensed consolidated statement of operations for the twelve and twenty-eight weeks ended July 15, 2023, reflects the correction of non-material errors the company discovered in previously reported results. |
Advance Auto Parts, Inc. and Subsidiaries |
|||||||
Condensed Consolidated Statements of Cash Flows |
|||||||
(In thousands) (unaudited) |
|||||||
|
|
|
|
||||
|
Twenty-Eight Weeks Ended |
||||||
|
July 13, 2024 |
|
July 15, 2023 (1) |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
85,003 |
|
|
$ |
126,900 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
167,443 |
|
|
|
162,974 |
|
Share-based compensation |
|
27,653 |
|
|
|
26,791 |
|
(Gain) Loss and impairment of long-lived assets |
|
(15,645 |
) |
|
|
859 |
|
Provision for deferred income taxes |
|
13,634 |
|
|
|
21,497 |
|
Other, net |
|
2,076 |
|
|
|
1,628 |
|
Net change in: |
|
|
|
||||
Receivables, net |
|
(49,546 |
) |
|
|
(97,022 |
) |
Inventories, net |
|
(53,472 |
) |
|
|
(148,918 |
) |
Accounts payable |
|
(125,351 |
) |
|
|
(319,785 |
) |
Accrued expenses |
|
33,166 |
|
|
|
118,781 |
|
Other assets and liabilities, net |
|
2,853 |
|
|
|
(60,836 |
) |
Net cash provided by (used in) operating activities |
|
87,814 |
|
|
|
(167,131 |
) |
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(92,445 |
) |
|
|
(144,874 |
) |
Proceeds from sales of property and equipment |
|
12,820 |
|
|
|
1,532 |
|
Net cash used in investing activities |
|
(79,625 |
) |
|
|
(143,342 |
) |
Cash flows from financing activities: |
|
|
|
||||
Borrowings under credit facilities |
|
— |
|
|
|
4,327,000 |
|
Payments on credit facilities |
|
— |
|
|
|
(4,417,000 |
) |
Borrowings on senior unsecured notes |
|
— |
|
|
|
599,571 |
|
Dividends paid |
|
(29,920 |
) |
|
|
(179,347 |
) |
Purchases of noncontrolling interests |
|
(9,101 |
) |
|
|
— |
|
Proceeds from the issuance of common stock |
|
1,788 |
|
|
|
2,060 |
|
Repurchases of common stock |
|
(4,617 |
) |
|
|
(13,808 |
) |
Other, net |
|
(1,143 |
) |
|
|
(4,531 |
) |
Net cash (used in) provided by financing activities |
|
(42,993 |
) |
|
|
313,945 |
|
Effect of exchange rate changes on cash |
|
10,751 |
|
|
|
949 |
|
Net (decrease) increase in cash and cash equivalents |
|
(24,053 |
) |
|
|
4,421 |
|
Cash and cash equivalents, beginning of period |
|
503,471 |
|
|
|
270,805 |
|
Cash and cash equivalents, end of period |
$ |
479,418 |
|
|
$ |
275,226 |
|
(1) |
The condensed consolidated statement of cash flows for the twenty-eight weeks ended July 15, 2023, reflects the correction of non-material errors the company discovered in previously reported results. |
Restatement of Previously Issued Financial Statements
During the fiscal year ended December 30, 2023, the company identified errors primarily impacting cost of sales, selling, general and administrative costs and other income/expenses, net, incurred in prior years but not previously recognized. The company evaluated the errors and determined that the related impacts were not material to the previously issued consolidated financial statements for any prior period. A summary of the corrections to the impacted financial statement line items in the company's Consolidated Statement of Operations for the twelve and twenty-eight weeks ended July 15, 2023, and the company's Consolidated Statement of Cash Flows for the twenty-eight weeks ended July 15, 2023, included in the company's previously filed Annual Report on Form 10-K are presented below:
Condensed Consolidated Statement of Operations |
|||||||||||||||||||
|
July 15, 2023 |
||||||||||||||||||
|
Twelve Weeks Ended |
|
Twenty-Eight Weeks Ended |
||||||||||||||||
(in thousands) |
As Previously
|
|
Adjustments |
|
As Corrected |
|
As Previously
|
|
Adjustments |
|
As Corrected |
||||||||
Cost of sales |
$ |
1,537,997 |
|
$ |
7,614 |
|
|
$ |
1,545,611 |
|
$ |
3,484,927 |
|
$ |
16,350 |
|
|
$ |
3,501,277 |
Gross profit |
|
1,148,069 |
|
|
(7,614 |
) |
|
|
1,140,455 |
|
|
2,618,732 |
|
|
(16,350 |
) |
|
|
2,602,382 |
Selling, general and administrative expenses |
|
1,013,701 |
|
|
794 |
|
|
|
1,014,495 |
|
|
2,394,365 |
|
|
(15,881 |
) |
|
|
2,378,484 |
Operating income |
|
134,368 |
|
|
(8,408 |
) |
|
|
125,960 |
|
|
224,367 |
|
|
(469 |
) |
|
|
223,898 |
Income before provision for income taxes |
|
115,183 |
|
|
(8,408 |
) |
|
|
106,775 |
|
|
174,789 |
|
|
(469 |
) |
|
|
174,320 |
Provision for income taxes |
|
29,821 |
|
|
(1,623 |
) |
|
|
28,198 |
|
|
46,776 |
|
|
644 |
|
|
|
47,420 |
Net income |
$ |
85,362 |
|
$ |
(6,785 |
) |
|
$ |
78,577 |
|
$ |
128,013 |
|
$ |
(1,113 |
) |
|
$ |
126,900 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share |
$ |
1.44 |
|
$ |
(0.12 |
) |
|
$ |
1.32 |
|
$ |
2.16 |
|
$ |
(0.02 |
) |
|
$ |
2.14 |
Diluted earnings per common share |
$ |
1.43 |
|
$ |
(0.11 |
) |
|
$ |
1.32 |
|
$ |
2.15 |
|
$ |
(0.02 |
) |
|
$ |
2.13 |
Condensed Consolidated Statement of Cash Flows |
|||||||||||
Twenty-Eight Weeks Ended July 15, 2023 |
|||||||||||
(in thousands) |
As Previously
|
|
Adjustments |
|
As Corrected |
||||||
Net income |
$ |
128,013 |
|
|
$ |
(1,113 |
) |
|
$ |
126,900 |
|
Provision for deferred income taxes |
|
16,249 |
|
|
|
5,248 |
|
|
|
21,497 |
|
Other, net |
|
1,170 |
|
|
|
458 |
|
|
|
1,628 |
|
Net change in: |
|
|
|
|
|
||||||
Receivables, net |
|
(93,539 |
) |
|
|
(3,483 |
) |
|
|
(97,022 |
) |
Inventories, net |
|
(145,148 |
) |
|
|
(3,770 |
) |
|
|
(148,918 |
) |
Accounts payable |
|
(346,808 |
) |
|
|
27,023 |
|
|
|
(319,785 |
) |
Accrued expenses |
|
120,888 |
|
|
|
(2,107 |
) |
|
|
118,781 |
|
Other assets and liabilities, net |
|
(36,008 |
) |
|
|
(24,828 |
) |
|
|
(60,836 |
) |
Net cash used in operating activities |
|
(164,559 |
) |
|
|
(2,572 |
) |
|
|
(167,131 |
) |
Other, net (1) |
|
(4,073 |
) |
|
|
(458 |
) |
|
|
(4,531 |
) |
Net cash provided by financing activities |
|
314,403 |
|
|
|
(458 |
) |
|
|
313,945 |
|
Effect of exchange rate changes on cash |
|
1,280 |
|
|
|
(331 |
) |
|
|
949 |
|
Net increase in cash and cash equivalents |
|
7,782 |
|
|
|
(3,361 |
) |
|
|
4,421 |
|
Cash and cash equivalents, beginning of period |
|
269,282 |
|
|
|
1,523 |
|
|
|
270,805 |
|
Cash and cash equivalents, end of period |
$ |
277,064 |
|
|
$ |
(1,838 |
) |
|
$ |
275,226 |
|
(1) |
The summary of corrections table above inadvertently omitted disclosure for proceeds from the issuance of common stock as follows: |
Reconciliation of Non-GAAP Financial Measures
The company's financial results include certain financial measures not derived in accordance with accounting principles generally accepted in
Reconciliation of Free Cash Flow:(1) |
|
|
|
||||
|
Twenty-Eight Weeks Ended |
||||||
(in thousands) |
July 13, 2024 |
|
July 15, 2023 |
||||
Cash flows provided by operating activities |
$ |
87,814 |
|
|
$ |
(167,131 |
) |
Purchases of property and equipment |
|
(92,445 |
) |
|
|
(144,874 |
) |
Free cash flow |
$ |
(4,631 |
) |
|
$ |
(312,005 |
) |
Adjusted Debt to Adjusted EBITDAR: (1) |
|
|
|
||||
|
Four Quarters Ended |
||||||
(In thousands, except adjusted debt to adjusted EBITDAR ratio) |
July 13, 2024 |
|
December 30, 2023 |
||||
Total GAAP debt |
$ |
1,787,867 |
|
|
$ |
1,786,361 |
|
Add: Operating lease liabilities |
|
2,685,542 |
|
|
|
2,660,827 |
|
Adjusted debt |
$ |
4,473,409 |
|
|
$ |
4,447,188 |
|
|
|
|
|
||||
GAAP Net (loss) income |
$ |
(12,162 |
) |
|
$ |
29,735 |
|
Depreciation and amortization |
|
310,923 |
|
|
|
306,454 |
|
Interest expense |
|
81,012 |
|
|
|
88,055 |
|
Other expense, net |
|
(12,237 |
) |
|
|
(5,525 |
) |
Provision for income taxes |
|
(8,361 |
) |
|
|
2,112 |
|
Rent expense |
|
636,395 |
|
|
|
613,859 |
|
Share-based compensation |
|
46,509 |
|
|
|
45,647 |
|
Other nonrecurring charges (2) |
|
25,757 |
|
|
|
12,419 |
|
Transformation related charges |
|
40,293 |
|
|
|
29,719 |
|
Adjusted EBITDAR |
$ |
1,108,129 |
|
|
$ |
1,122,475 |
|
|
|
|
|
||||
Adjusted Debt to Adjusted EBITDAR |
|
4.0 |
|
|
|
4.0 |
|
(1) |
The four quarters ended July 13, 2024, includes the correction of non-material errors the company discovered in previously reported results. |
(2) |
The adjustments to the four quarters ended July 13, 2024, and December 30, 2023, include expenses associated with the company's material weakness remediation efforts and professional executive recruiting fees. |
NOTE: Management believes its Adjusted Debt to Adjusted EBITDAR ratio (“leverage ratio”) is a key financial metric for debt securities, as reviewed by rating agencies, and believes its debt levels are best analyzed using this measure. The company’s goal is to maintain an investment grade rating. The company's credit rating directly impacts the interest rates on borrowings under its existing credit facility and could impact the company's ability to obtain additional funding. If the company was unable to maintain its investment grade rating, this could negatively impact future performance and limit growth opportunities. Similar measures are utilized in the calculation of the financial covenants and ratios contained in the company's financing arrangements. The leverage ratio calculated by the company is a non-GAAP measure and should not be considered a substitute for debt to net earnings, as determined in accordance with GAAP. The company adjusts the calculation to remove rent expense and to add back the company’s existing operating lease liabilities related to their right-of-use assets to provide a more meaningful comparison with the company’s peers and to account for differences in debt structures and leasing arrangements. The company’s calculation of its leverage ratio may not be calculated in the same manner as other companies, and thus may not be comparable to similarly titled measures used by other companies.
Store Information
During the twenty-eight weeks ended July 13, 2024, 16 stores and branches were opened and 26 were closed, resulting in a total of 5,097 stores and branches as of July 13, 2024, compared with a total of 5,107 stores and branches as of December 30, 2023.
The below table summarizes the changes in the number of company-operated store and branch locations during the twelve and twenty-eight weeks ended July 13, 2024:
|
|
Twelve Weeks Ended |
||||||||||
|
|
AAP |
|
CARQUEST |
|
WORLDPAC (1) |
|
Total |
||||
April 20, 2024 |
|
4,483 |
|
|
294 |
|
|
320 |
|
5,097 |
|
|
New |
|
7 |
|
|
1 |
|
|
1 |
|
9 |
|
|
Closed |
|
(6 |
) |
|
(3 |
) |
|
— |
|
(9 |
) |
|
July 13, 2024 |
|
4,484 |
|
|
292 |
|
|
321 |
|
5,097 |
|
|
|
|
Twenty-Eight Weeks Ended |
||||||||||
|
|
AAP |
|
CARQUEST |
|
WORLDPAC (1) |
|
Total |
||||
December 30, 2023 |
|
4,484 |
|
|
302 |
|
|
321 |
|
|
5,107 |
|
New |
|
14 |
|
|
1 |
|
|
1 |
|
|
16 |
|
Closed |
|
(15 |
) |
|
(10 |
) |
|
(1 |
) |
|
(26 |
) |
Converted |
|
1 |
|
|
(1 |
) |
|
— |
|
|
— |
|
July 13, 2024 |
|
4,484 |
|
|
292 |
|
|
321 |
|
|
5,097 |
|
(1) |
Certain converted Autopart International ("AI") locations will remain branded as AI going forward. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240821458253/en/
Investor Relations Contact:
Lavesh Hemnani
T: (919) 227-5466
E: invrelations@advanceautoparts.com
Media Contact:
Darryl Carr
T: (984) 389-7207
E: AAPCommunications@advance-auto.com
Source: Advance Auto Parts, Inc.
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