SEC 873 (03/2003) Potential persons who are to respond to the collection of information contained in this form are not
required to respond unless the form displays a currently valid OMB control number.
|
|
OMB APPROVAL |
|
OMB Number: 3235-0060 |
Expires: March 31, 2018 |
Estimated average burden |
hours per response..............5.71 |
|
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 13, 2015
ADVANCE AUTO PARTS, INC.
(Exact name of registrant as specified in its charter)
|
| | |
Delaware | 001-16797 | 54-2049910 |
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |
|
| |
5008 Airport Road, Roanoke, Virginia | 24012 |
(Address of Principal Executive Offices) | (Zip Code) |
Registrant's telephone number, including area code (540) 362-4911
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
INFORMATION TO BE INCLUDED IN THE REPORT
Item 2.02 Results of Operations and Financial Condition.
On August 13, 2015, Advance Auto Parts, Inc. (the "Company") issued a press release setting forth its financial results for its second quarter and twenty-eight weeks ended July 18, 2015. This release includes forward looking statements including, but are not limited to, statements related to the Company's 2015 fiscal year.
The Company's financial results for the second quarter and twenty-eight weeks ended July 18, 2015 and July 12, 2014 include General Parts International, Inc. ("GPI") integration costs, store consolidation costs, and amortization of GPI acquired intangible assets. As a result of these expenses, the Company’s financial results for these periods are not comparable with prior periods. Thus, the Company’s financial results have been presented in this press release on both a generally accepted accounting principles ("GAAP") basis and on a comparable basis to exclude the integration costs, store consolidation costs and amortization recognized in the respective periods. The Company has provided the required reconciliation of the financial results reported on a comparable basis to the most directly comparable GAAP basis and has provided an explanation as to why the financial results presented on a non-GAAP basis are useful to investors.
The press release is attached as Exhibit 99.1 and incorporated by reference herein.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
|
| | |
| Exhibit Number | |
| | |
| 99.1 | Press Release, dated August 13, 2015, issued by Advance Auto Parts, Inc. |
Note: The information contained in this Current Report on Form 8-K (including Exhibit 99.1) shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
| | |
| | ADVANCE AUTO PARTS, INC. |
| | (Registrant) |
| | |
Date: August 13, 2015 | | /s/ Michael A. Norona |
| | (Signature)* |
| | Michael A. Norona |
| | Executive Vice President and Chief Financial Officer |
* Print name and title of the signing officer under his signature.
EXHIBIT INDEX
|
| |
Exhibit Number | |
99.1 | Press Release, dated August 13, 2015, issued by Advance Auto Parts, Inc. |
Exhibit 99.1
|
| |
News Release | Advance Auto Parts |
5008 Airport Road |
| Roanoke, VA 24012 |
| |
| Laurie Stacy |
| Media Contact |
| t: 540-561-8452 |
| e: laurie.stacy@advanceautoparts.com |
| |
| Zaheed Mawani |
| Investor Contact |
| t: 919-573-3848 |
| e: zaheed.mawani@advanceautoparts.com |
ADVANCE AUTO PARTS REPORTS SECOND QUARTER FISCAL 2015 COMPARABLE CASH EPS GROWTH OF 9.1% TO $2.27
ROANOKE, Va., August 13, 2015 - 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).
|
| | | | | | | | | | | | | | | | |
Comparable Second Quarter Performance Summary (1) |
| | | | | | | | |
| | Twelve Weeks Ended | | Twenty-Eight Weeks Ended |
| | July 18,
2015 | | July 12,
2014 | | July 18,
2015 | | July 12,
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 |
|
| | | | | | | | |
Comparable SG&A (in millions) | | $ | 801.8 |
| | $ | 799.4 |
| | $ | 1,887.5 |
| | $ | 1,868.2 |
|
| | | | | | | | |
Comparable Operating Income (in millions) | | $ | 285.5 |
| | $ | 262.7 |
| | $ | 593.8 |
| | $ | 547.1 |
|
| | | | | | | | |
Comparable Cash EPS | | $ | 2.27 |
| | $ | 2.08 |
| | $ | 4.65 |
| | $ | 4.33 |
|
| | | | | | | | |
Avg Diluted Shares (in thousands) | | 73,682 |
| | 73,399 |
| | 73,665 |
| | 73,374 |
|
| |
(1) | 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. |
“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.
|
| | | | | | | | | | | | | | | | | | |
| | AAP | | AI | | BWP | | CARQUEST | | WORLDPAC | | Total |
| | | | | | | | | | | | |
January 3, 2015 | | 3,888 |
| | 210 |
| | 38 |
| | 1,125 |
| | 111 |
| | 5,372 |
|
New | | 35 |
| | 1 |
| | — |
| | 21 |
| | 6 |
| | 63 |
|
Closed | | (7 | ) | | — |
| | — |
| | (1 | ) | | — |
| | (8 | ) |
Consolidated | | (1 | ) | | (25 | ) | | (2 | ) | | (30 | ) | | — |
| | (58 | ) |
Converted | | 57 |
| | (4 | ) | | (1 | ) | | (52 | ) | | — |
| | — |
|
July 18, 2015 | | 3,972 |
| | 182 |
| | 35 |
| | 1,063 |
| | 117 |
| | 5,369 |
|
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.
|
| | | | | | | | | | | | |
Advance Auto Parts, Inc. and Subsidiaries |
Condensed Consolidated Balance Sheets |
(in thousands) |
(unaudited) |
| | | | | | |
| | July 18,
2015 | | January 3,
2015 | | July 12,
2014 |
| | | | | | |
Assets | | | | | | |
| | | | | | |
Current assets: | | | | | | |
Cash and cash equivalents | | $ | 114,536 |
| | $ | 104,671 |
| | $ | 67,446 |
|
Receivables, net | | 653,309 |
| | 579,825 |
| | 621,702 |
|
Inventories, net | | 4,119,592 |
| | 3,936,955 |
| | 3,936,035 |
|
Other current assets | | 90,491 |
| | 119,589 |
| | 90,098 |
|
Total current assets | | 4,977,928 |
| | 4,741,040 |
| | 4,715,281 |
|
| | | | | | |
Property and equipment, net | | 1,400,342 |
| | 1,432,030 |
| | 1,422,083 |
|
Goodwill | | 991,742 |
| | 995,426 |
| | 1,000,456 |
|
Intangible assets, net | | 714,702 |
| | 748,125 |
| | 779,401 |
|
Other assets, net | | 83,161 |
| | 45,737 |
| | 52,052 |
|
| | $ | 8,167,875 |
| | $ | 7,962,358 |
| | $ | 7,969,273 |
|
| | | | | | |
Liabilities and Stockholders' Equity | | | | | | |
| | | | | | |
Current liabilities: | | | | | | |
Current portion of long-term debt | | $ | 591 |
| | $ | 582 |
| | $ | 70,694 |
|
Accounts payable | | 3,174,411 |
| | 3,095,365 |
| | 3,054,064 |
|
Accrued expenses | | 547,848 |
| | 520,673 |
| | 572,912 |
|
Other current liabilities | | 156,908 |
| | 126,446 |
| | 77,017 |
|
Total current liabilities | | 3,879,758 |
| | 3,743,066 |
| | 3,774,687 |
|
| | | | | | |
Long-term debt | | 1,453,044 |
| | 1,636,311 |
| | 1,797,795 |
|
Other long-term liabilities | | 545,944 |
| | 580,069 |
| | 582,266 |
|
Total stockholders' equity | | 2,289,129 |
| | 2,002,912 |
| | 1,814,525 |
|
| | $ | 8,167,875 |
| | $ | 7,962,358 |
| | $ | 7,969,273 |
|
| | | | | | |
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.
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Advance Auto Parts, Inc. and Subsidiaries |
Condensed Consolidated Statements of Operations |
Twelve Week Periods Ended |
July 18, 2015 and July 12, 2014 |
(in thousands, except per share data) |
(unaudited) |
| | | | | | | | | | | | |
| | Q2 2015 | | Q2 2014 |
| | As Reported | | Comparable Adjustments (a) | | Comparable | | As Reported | | Comparable Adjustments (a) | | Comparable |
| | | | | | | | | | | | |
Net sales | | $ | 2,370,037 |
| | $ | — |
| | $ | 2,370,037 |
| | $ | 2,347,697 |
| | $ | — |
| | $ | 2,347,697 |
|
Cost of sales | | 1,282,748 |
| | — |
| | 1,282,748 |
| | 1,285,589 |
| | — |
| | 1,285,589 |
|
Gross profit | | 1,087,289 |
| | — |
| | 1,087,289 |
| | 1,062,108 |
| | — |
| | 1,062,108 |
|
Selling, general and administrative expenses | | 830,240 |
| | (28,425 | ) | | 801,815 |
| | 821,435 |
| | (22,068 | ) | | 799,367 |
|
Operating income | | 257,049 |
| | 28,425 |
| | 285,474 |
| | 240,673 |
| | 22,068 |
| | 262,741 |
|
Other, net: | | | | | | | | | | | | |
Interest expense | | (15,438 | ) | | — |
| | (15,438 | ) | | (16,861 | ) | | — |
| | (16,861 | ) |
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,
2015 | | July 12,
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,
2015 | | January 3,
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,
2015 | | July 12,
2014 | | July 18,
2015 | | July 12,
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.
Advance Auto Parts (NYSE:AAP)
Historical Stock Chart
From Mar 2024 to Apr 2024
Advance Auto Parts (NYSE:AAP)
Historical Stock Chart
From Apr 2023 to Apr 2024
