11/14/2024 | Press release | Distributed by Public on 11/14/2024 05:37
As of November 14, 2024 | ||||
($ in millions, except per share data) | Low | High | ||
Net sales from continuing operations | Approx. $9,000 | |||
Comparable store sales (1)
|
Approx. (1.0%) | |||
Adjusted operating income margin from continuing operations
|
0.25 | % | 0.75 | % |
Adjusted diluted EPS from continuing operations
|
$ | (0.60) | $ | 0.00 |
Capital expenditures | $ | 175 | $ | 225 |
Free cash flow (2)
|
Approx. flat (including strategic costs) |
Preliminary FY 2025 Guidance (53 weeks)
|
FY 2027 Objectives
|
|
Net sales ($ in millions) | $8,400 - $8,600 |
Approx. $9,000
|
Comparable sales growth | 0.50% - 1.50% |
Positive low-single-digit %
|
New store growth | 30 new stores | 50 to 70 new stores |
Adjusted operating income margin (1)
|
2.00% - 3.00% |
Approx. 7.00%
|
Leverage Ratio (Adj. debt/ Adj. EBITDAR) (1)
|
3.0x - 4.0x |
Approx. 2.5x
|
Investor Relations Contact:
|
Media Contact: |
Lavesh Hemnani
|
Darryl Carr |
T: (919) 227-5466 | T: (984) 389-7207 |
Advance Auto Parts, Inc. and Subsidiaries | ||||
Condensed Consolidated Balance Sheets | ||||
(In thousands) (unaudited)
|
||||
October 5, 2024 | December 30, 2023 | |||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | $ | 464,492 | $ | 488,049 |
Receivables, net | 668,937 | 609,528 | ||
Inventories, net
|
4,042,200 | 3,893,569 | ||
Other current assets | 180,448 | 180,402 | ||
Current assets held for sale | 2,137,690 | 1,205,473 | ||
Total current assets | 7,493,767 | 6,377,021 | ||
Property and equipment, net | 1,479,738 | 1,555,985 | ||
Operating lease right-of-use assets | 2,399,630 | 2,347,073 | ||
Goodwill | 600,182 | 601,159 | ||
Other intangible assets, net | 409,501 | 419,161 | ||
Other noncurrent assets
|
85,366 | 85,988 | ||
Noncurrent assets held for sale | - | 889,939 | ||
Total assets | $ | 12,468,184 | $ | 12,276,326 |
Liabilities and Stockholders' Equity | ||||
Current liabilities: | ||||
Accounts payable | $ | 3,498,460 | $ | 3,526,079 |
Accrued expenses | 641,914 | 616,067 | ||
Other current liabilities | 458,343 | 396,408 | ||
Current liabilities held for sale | 994,824 | 768,851 | ||
Total current liabilities | 5,593,541 | 5,307,405 | ||
Long-term debt | 1,788,513 | 1,786,361 | ||
Noncurrent operating lease liabilities | 2,018,383 | 2,039,908 | ||
Deferred income taxes | 380,118 | 355,635 | ||
Other long-term liabilities | 89,949 | 83,538 | ||
Noncurrent liabilities held for sale | - | 183,751 | ||
Total stockholders' equity | 2,597,680 | 2,519,728 | ||
Total liabilities and stockholders' equity | $ | 12,468,184 | $ | 12,276,326 |
Advance Auto Parts, Inc. and Subsidiaries | ||||||||
Condensed Consolidated Statements of Operations | ||||||||
(In thousands, except per share data) (unaudited) | ||||||||
Twelve Weeks Ended | Forty Weeks Ended | |||||||
October 5, 2024 |
October 7, 2023(1)
|
October 5, 2024 |
October 7, 2023(1)
|
|||||
Net sales | $ | 2,147,991 | $ | 2,218,205 | $ | 7,098,302 | $ | 7,194,670 |
Cost of sales, including purchasing and warehousing costs
|
1,240,093 | 1,400,638 | 4,036,898 | 4,154,190 | ||||
Gross profit | 907,898 | 817,567 | 3,061,404 | 3,040,480 | ||||
Selling, general and administrative expenses
|
907,495 | 896,145 | 2,954,707 | 2,959,238 | ||||
Operating income (loss)
|
403 | (78,578) | 106,697 | 81,242 | ||||
Other, net: | ||||||||
Interest expense | (18,805) | (19,375) | (62,127) | (69,948) | ||||
Other income (expense), net
|
2,393 | (305) | 12,769 | 232 | ||||
Total other, net | (16,412) | (19,680) | (49,358) | (69,716) | ||||
(Loss) income before provision for income taxes
|
(16,009) | (98,258) | 57,339 | 11,526 | ||||
Provision for income taxes | 9,354 | (24,072) | 34,763 | 6,360 | ||||
Net (loss) income from continuing operations
|
(25,363) | (74,186) | 22,576 | 5,166 | ||||
Net income from discontinued operations
|
19,349 | 12,149 | 56,413 | 59,696 | ||||
Net (loss) income
|
$ | (6,014) | $ | (62,037) | $ | 78,989 | $ | 64,862 |
Basic (loss) earnings per common share from continuing operations
|
$ | (0.42) | $ | (1.25) | $ | 0.38 | $ | 0.09 |
Basic earnings per common share from discontinued operations
|
0.32 | 0.20 | 0.95 | 1.00 | ||||
Basic (loss) earnings per common share
|
$ | (0.10) | $ | (1.05) | $ | 1.33 | $ | 1.09 |
Basic weighted-average common shares outstanding
|
59,684 | 59,474 | 59,618 | 59,411 | ||||
Diluted (loss) earnings per common share from continuing operations
|
$ | (0.42) | $ | (1.24) | $ | 0.38 | $ | 0.09 |
Diluted earnings per common share from discontinued operations
|
0.32 | 0.20 | 0.94 | 1.00 | ||||
Diluted (loss) earnings per common share
|
$ | (0.10) | $ | (1.04) | $ | 1.32 | $ | 1.09 |
Diluted weighted-average common shares outstanding
|
59,902 | 59,630 | 59,878 | 59,588 |
Advance Auto Parts, Inc. and Subsidiaries | ||||
Condensed Consolidated Statements of Cash Flows | ||||
(In thousands) (unaudited) | ||||
Forty Weeks Ended | ||||
October 5, 2024 | October 7, 2023 | |||
Cash flows from operating activities: | ||||
Net income | $ | 78,989 | $ | 64,862 |
Net income from discontinued operations
|
56,413 | 59,696 | ||
Net income from continuing operations
|
22,576 | 5,166 | ||
Adjustments to reconcile net income to net cash used in operating activities:
|
||||
Depreciation and amortization | 217,197 | 206,658 | ||
Share-based compensation | 33,810 | 33,777 | ||
(Gain) Loss on sale and impairment of long-lived assets
|
(14,273) | 1,886 | ||
Provision for deferred income taxes | 24,289 | (27,811) | ||
Other, net | 2,986 | 2,436 | ||
Net change in: | ||||
Receivables, net | (60,383) | (161,629) | ||
Inventories, net
|
(152,229) | (110,871) | ||
Accounts payable | (25,225) | (77,336) | ||
Accrued expenses | 30,794 | 171,117 | ||
Other assets and liabilities, net | 1,477 | (71,707) | ||
Net cash provided by (used in) operating activities from continuing operations | 81,019 | (28,314) | ||
Net cash provided by operating activities from discontinued operations
|
76,917 | 57,148 | ||
Net cash provided by operating activities
|
157,936 | 28,834 | ||
Cash flows from investing activities: | ||||
Purchases of property and equipment | (129,714) | (174,186) | ||
Proceeds from sales of property and equipment | 13,232 | 2,001 | ||
Net cash used in investing activities of continuing operations
|
(116,482) | (172,185) | ||
Net cash used in investing activities of discontinued operations
|
(7,988) | (13,015) | ||
Net cash used in investing activities | (124,470) | (185,200) | ||
Cash flows from financing activities: | ||||
Borrowings under credit facilities | - | 4,805,000 | ||
Payments on credit facilities | - | (4,990,000) | ||
Borrowings on senior unsecured notes | - | 599,571 | ||
Dividends paid | (44,882) | (194,322) | ||
Purchases of noncontrolling interests | (9,101) | - | ||
Proceeds from the issuance of common stock | 2,995 | 3,045 | ||
Repurchases of common stock | (5,601) | (14,237) | ||
Other, net | (1,143) | (5,010) | ||
Net cash (used in) provided by financing activities | (57,732) | 204,047 |
Forty Weeks Ended | ||||
October 5, 2024 | October 7, 2023 | |||
Effect of exchange rate changes on cash | 11,766 | (1,932) | ||
Net (decrease) increase in cash and cash equivalents
|
(12,500) | 45,749 | ||
Cash and cash equivalents, beginning of period
|
503,471 | 270,805 | ||
Cash and cash equivalents, end of period
|
$ | 490,971 | $ | 316,554 |
Summary of cash and cash equivalents: | ||||
Cash and cash equivalents of continuing operations, end of period | $ | 464,492 | $ | 308,804 |
Cash and cash equivalents of discontinued operations, end of period | 26,479 | 7,750 | ||
Cash and cash equivalents, end of period
|
$ | 490,971 | $ | 316,554 |
Condensed Consolidated Statement of Operations | ||||||||||
October 7, 2023 | ||||||||||
Twelve Weeks Ended | ||||||||||
(in thousands)
|
As Previously Reported | Adjustments | As Corrected |
Discontinued Operations
|
As Corrected, after Discontinued Operations
|
|||||
Cost of sales | $ | 1,732,420 | $ | 16,379 | $ | 1,748,799 | $ | 348,161 | $ | 1,400,638 |
Gross profit | 986,659 | (16,379) | 970,280 | 152,713 | 817,567 | |||||
Selling, general and administrative expenses | 1,030,355 | 878 | 1,031,233 | 135,088 | 896,145 | |||||
Operating (loss) income
|
(43,696) | (17,257) | (60,953) | 17,625 | (78,578) | |||||
(Loss) Income before provision for income taxes
|
(64,319) | (17,257) | (81,576) | 16,682 | (98,258) | |||||
Provision for income taxes | (15,686) | (3,853) | (19,539) | 4,533 | (24,072) | |||||
Net (loss) income
|
$ | (48,633) | $ | (13,404) | $ | (62,037) | $ | 12,149 | $ | (74,186) |
Basic (loss) earnings per share
|
$ | (0.82) | $ | (0.23) | $ | (1.05) | $ | 0.20 | $ | (1.25) |
Diluted (loss) earnings per common share
|
$ | (0.82) | $ | (0.22) | $ | (1.04) | $ | 0.20 | $ | (1.24) |
Condensed Consolidated Statement of Operations | ||||||||||
October 7, 2023 | ||||||||||
Forty Weeks Ended | ||||||||||
(in thousands)
|
As Previously Reported | Adjustments | As Corrected |
Discontinued Operations
|
As Corrected, after Discontinued Operations
|
|||||
Cost of sales | $ | 5,220,200 | $ | 29,877 | $ | 5,250,077 | $ | 1,095,887 | $ | 4,154,190 |
Gross profit | 3,602,538 | (29,877) | 3,572,661 | 532,181 | 3,040,480 | |||||
Selling, general and administrative expenses | 3,407,445 | 2,272 | 3,409,717 | 450,479 | 2,959,238 | |||||
Operating income (loss)
|
195,093 | (32,149) | 162,944 | 81,702 | 81,242 | |||||
Income (loss) before provision for income taxes
|
124,894 | (32,149) | 92,745 | 81,219 | 11,526 | |||||
Provision for income taxes | 34,649 | (6,766) | 27,883 | 21,523 | 6,360 | |||||
Net income (loss)
|
$ | 90,245 | $ | (25,383) | $ | 64,862 | $ | 59,696 | $ | 5,166 |
Basic earnings (loss) per share
|
$ | 1.52 | $ | (0.43) | $ | 1.09 | $ | 1.00 | $ | 0.09 |
Diluted earnings (loss) per common share
|
$ | 1.51 | $ | (0.42) | $ | 1.09 | $ | 1.00 | $ | 0.09 |
Condensed Consolidated Statement of Cash Flows | ||||||||||
Forty Weeks Ended October 7, 2023
|
||||||||||
(in thousands)
|
As Previously Reported | Adjustments | As Corrected |
Discontinued Operations
|
As Corrected, after Discontinued Operations
|
|||||
Net income | $ | 90,245 | $ | (25,383) | $ | 64,862 | $ | 59,696 | $ | 5,166 |
Provision for deferred income taxes
|
(33,059) | 5,248 | (27,811) | - | (27,811) | |||||
Other, net | 1,499 | 937 | 2,436 | - | 2,436 | |||||
Net change in: | ||||||||||
Receivables, net | (170,371) | (9,519) | (179,890) | (18,261) | (161,629) | |||||
Inventories, net | (41,025) | 15,442 | (25,583) | 85,288 | (110,871) | |||||
Accounts payable
|
(191,871) | 28,500 | (163,371) | (86,035) | (77,336) | |||||
Accrued expenses | 145,704 | 21,521 | 167,225 | (3,892) | 171,117 | |||||
Other assets and liabilities, net | (45,015) | (38,316) | (83,331) | (11,624) | (71,707) | |||||
Net cash provided by (used in) operating activities
|
30,404 | (1,570) | 28,834 | 57,148 | (28,314) | |||||
Other, net (1)
|
(4,073) | (937) | (5,010) | - | (5,010) | |||||
Net cash provided by financing activities
|
204,984 | (937) | 204,047 | |||||||
Effect of exchange rate changes on cash | (1,942) | 10 | (1,932) | |||||||
Net increase (decrease) in cash and cash equivalents
|
48,246 | (2,497) | 45,749 | |||||||
Cash and cash equivalents, beginning of period | 269,282 | 1,523 | 270,805 | 50,670 | 220,135 | |||||
Cash and cash equivalents, end of period | $ | 317,528 | $ | (974) | $ | 316,554 | $ | 7,750 | $ | 308,804 |
Reconciliation of Adjusted Net Income and Adjusted EPS: | ||||||||
Twelve Weeks Ended | Forty Weeks Ended | |||||||
(in thousands, except per share data) | October 5, 2024 | October 7, 2023 | October 5, 2024 | October 7, 2023 | ||||
Net (loss) income from continuing operations (GAAP)
|
$ | (25,363) | $ | (74,186) | $ | 22,576 | $ | 5,166 |
Selling, general and administrative
adjustments:
|
||||||||
Transformation expenses: | ||||||||
Distribution network optimization
|
8,909 | - | 13,943 | - | ||||
Third-party professional services
|
3,582 | 50 | 5,301 | 320 | ||||
Other charges:
|
||||||||
Executive turnover
|
87 | 3,799 | 1,561 | 5,360 | ||||
Material weakness remediation
|
1,293 | 429 | 3,649 | 429 | ||||
Other significant costs(1)
|
2,394 | - | 3,491 | - | ||||
Provision for income taxes on adjustments(2)
|
(4,066) | (1,070) | (6,986) | (1,527) | ||||
Nonrecurring tax expense
|
10,000 | - | 10,000 | - | ||||
Adjusted net (loss) income (Non-GAAP)
|
$ | (3,164) | $ | (70,978) | $ | 53,535 | $ | 9,748 |
Diluted (loss) earnings per share from continuing operations (GAAP)
|
$ | (0.42) | $ | (1.24) | $ | 0.38 | $ | 0.09 |
Adjustments, net of tax | 0.38 | 0.05 | 0.52 | 0.08 | ||||
Adjusted EPS (Non-GAAP) | $ | (0.04) | $ | (1.19) | $ | 0.90 | $ | 0.17 |
Reconciliation of Adjusted Operating Income: | ||||||||
Twelve Weeks Ended | Forty Weeks Ended | |||||||
(in thousands)
|
October 5, 2024 | October 7, 2023 | October 5, 2024 | October 7, 2023 | ||||
Operating income (GAAP) | $ | 403 | $ | (78,578) | $ | 106,697 | $ | 81,242 |
SG&A adjustments | 16,265 | 4,278 | 27,945 | 6,109 | ||||
Adjusted operating income (Non-GAAP) | $ | 16,668 | $ | (74,300) | $ | 134,642 | $ | 87,351 |
Reconciliation of Free Cash Flow: (1)
|
||||
Forty Weeks Ended | ||||
(in thousands) | October 5, 2024 | October 7, 2023 | ||
Cash flows provided by operating activities of continuing operations | $ | 81,019 | $ | (28,314) |
Purchases of property and equipment | (129,714) | (174,186) | ||
Free cash flow | $ | (48,695) | $ | (202,500) |
Adjusted Debt to Adjusted EBITDAR: (1)
|
||||
Four Quarters Ended | ||||
(In thousands, except adjusted debt to adjusted EBITDAR ratio) | October 5, 2024 | December 30, 2023 | ||
Total GAAP debt | $ | 1,788,513 | $ | 1,786,361 |
Add: Operating lease liabilities | 2,711,578 | 2,660,827 | ||
Adjusted debt | $ | 4,500,091 | $ | 4,447,188 |
GAAP Net income
|
$ | 50,819 | $ | 29,735 |
Depreciation and amortization | 309,566 | 306,454 | ||
Interest expense | 80,559 | 88,055 | ||
Other expense, net
|
(16,174) | (5,525) | ||
Provision for income taxes | 23,843 | 2,112 | ||
Rent expense | 638,232 | 613,859 | ||
Share-based compensation | 46,557 | 45,647 | ||
Other charges (2)
|
40,091 | 12,419 | ||
Transformation related charges | 27,131 | 29,719 | ||
Adjusted EBITDAR | $ | 1,200,624 | $ | 1,122,475 |
Adjusted Debt to Adjusted EBITDAR | 3.7 | 4.0 |
Twelve Weeks Ended | |||
AAP | CARQUEST | Total | |
July 15, 2024 | 4,484 | 292 | 4,776 |
New | 9 | - | 9 |
Closed | (2) | (2) | (4) |
Converted | 1 | (1) | - |
October 5, 2024 | 4,492 | 289 | 4,781 |
Forty Weeks Ended | |||
AAP | CARQUEST | Total | |
December 30, 2023 | 4,484 | 302 | 4,786 |
New | 23 | - | 23 |
Closed | (17) | (12) | (29) |
Converted | 2 | (1) | 1 |
October 5, 2024 | 4,492 | 289 | 4,781 |