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      Vice Grip Vocabulators w/ Derek Bieri | O'Reilly Auto Parts
    • By Auto Musketeers
      link hidden, please login to viewis a premier automotive company that specializes in providing high-quality parts, and accessories to customers all over the world. Our mission is to provide our customers with exceptional products and services that exceed their expectations and contribute to their overall satisfaction. With years of experience in the automotive industry, we have developed a reputation for excellence and reliability. We offer a wide range of products, replacement parts, and accessories from top manufacturers. Our team of knowledgeable and experienced professionals is always available to provide expert advice and answer any questions you may have.
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    • By Partsguy23
      Why would a parts person who works at Advance have to call another parts place like WorldPac to look up a part? . Do they not know what they are doing? Just knowing what a car is just not good enough to be a parts person. It's a joke and sad. They have no clue.
    • By Advance Auto Parts
      Q1 Net Sales Increased 1.3% to $3.4 Billion; Comparable Store Sales Decreased 0.4%
      Operating Income of $90.0 Million; Operating Income Margin of 2.6%
      RALEIGH, N.C.--(BUSINESS WIRE)-- Advance Auto Parts, Inc. (NYSE: AAP), a leading automotive aftermarket parts provider in North America, that serves both professional installer and do-it-yourself customers, announced its financial results for the first quarter ended April 22, 2023.
      Tom Greco, president and chief executive officer, said, “I want to thank our Advance team members and independent partners for their continued hard work and focus on serving our customers. While we anticipated the first quarter would be challenging, our results were below our expectations. Net sales grew 1.3% in the quarter. Our operating margin rate of 2.6% in the quarter was well below expectations due to higher than planned investments to narrow competitive price gaps in the professional sales channel as well as unfavorable product mix.”
      Mr. Greco continued, “We remain focused on improving inventory availability while sustaining competitive price targets to improve topline sales. We expect the competitive dynamics we faced in the first quarter to continue, resulting in a shortfall to our 2023 expectations. We have reduced our full-year guidance and our board of directors made the difficult decision to reduce our quarterly dividend. In addition, in connection with my pending retirement, our board’s independent chair, Gene Lee, has assumed an expanded role as interim executive chair. Gene will be providing additional operational oversight and support to our management team to enable a seamless CEO transition. He has helped me immensely during my time as CEO and I look forward to working with him to improve the trajectory of our business in the months ahead.”
      First Quarter 2023 Results ( 1)
      First quarter of 2023 Net sales totaled $3.4 billion, a 1.3% increase compared with the first quarter of the prior year, primarily driven by new store openings. This was partially offset by a decline of comparable store sales of 0.4%.
      Gross profit decreased 2.4% to $1.5 billion. Gross profit margin of 43.0% of Net sales decreased 162 basis points compared with the first quarter of the prior year. This was primarily driven by inflationary product costs that were not fully covered by pricing actions. In addition, unfavorable product mix and supply chain headwinds also contributed to gross margin deleverage in the quarter.
      SG&A expenses were $1.4 billion, which was 40.4% of Net sales compared with 38.6% in the first quarter of 2022. This was primarily driven by inflation in labor and benefit-related expenses as well as costs associated with new store openings. This was partially offset by a decrease in startup costs related to the company's California expansion.
      The company's Operating income was $90.0 million or 2.6% of Net sales, compared with 6.0% in the first quarter of 2022.
      The company's effective tax rate was 28.4%, compared with 23.7% in the first quarter of 2022. The higher effective income tax rate reflects the impact associated with share based compensation. The company's Diluted EPS was $0.72, compared with $2.26 in the first quarter of 2022.
      Net cash used in operating activities was $378.9 million through the first quarter of 2023 versus $54.9 million used in operating activities in the same period of the prior year. The increase was primarily driven by lower Net income and an increase in cash used in working capital, primarily in accounts payable. Free cash flow through the first quarter of 2023 was an outflow of $468.9 million compared with an outflow of $169.8 million in the same period of the prior year.
      _______________________
      (1) All comparisons are based on the same time period in the prior year. Comparable store sales include locations open for 13 complete accounting periods and excludes sales to independently owned Carquest locations.
      Capital Allocation
      On May 30, 2023, the company declared a cash dividend of $0.25 per share to be paid on July 28, 2023 to all common stockholders of record as of July 14, 2023.
      Full Year 2023 Guidance
      Jeff Shepherd, executive vice president and chief financial officer, commented, “Given the shortfall experienced this quarter, along with our revised outlook for the balance of the year, we are reducing our full-year 2023 guidance. In addition, our board of directors made the decision to reduce our quarterly cash dividend to provide enhanced financial flexibility. We are committed to improving our operational performance and driving increased profitability."
       
      Prior FY 2023 Outlook
       
      Updated FY 2023 Outlook
       
      As of February 28, 2023
       
      As of May 31, 2023
      ($ in millions, except per share data)
      Low
       
      High
       
      Low
       
      High
      Net sales
      $
      11,400
       
       
      $
      11,600
       
       
      $
      11,200
       
       
      $
      11,300
       
      Comparable store sales (1)
       
      1.0
      %
       
       
      3.0
      %
       
       
      (1.0
      )%
       
       
      0.0
      %
      Operating income margin
       
      7.8
      %
       
       
      8.2
      %
       
       
      5.0
      %
       
       
      5.3
      %
      Income tax rate
       
      24.0
      %
       
       
      25.0
      %
       
       
      24.0
      %
       
       
      25.0
      %
      Diluted EPS
      $
      10.20
       
       
      $
      11.20
       
       
      $
      6.00
       
       
      $
      6.50
       
      Capital expenditures
      $
      300
       
       
      $
      350
       
       
      $
      250
       
       
      $
      300
       
      Free cash flow (2)
      Minimum $400
       
      $
      200
       
       
      $
      300
       
      New store and branch openings
       
      60
       
       
       
      80
       
       
       
      40
       
       
       
      60
       
      (1)
        Comparable store sales include locations open for 13 complete accounting periods and excludes sales to independently owned Carquest locations.
      (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 included herein.
      Investor Conference Call
      The company will detail its results for the first quarter ended April 22, 2023 via a webcast scheduled to begin at 8 a.m. Eastern Time on Wednesday, May 31, 2023. The webcast will be accessible via the Investor Relations page of the company's website (
      link hidden, please login to view). To join by phone, please 
      link hidden, please login to view 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 installer and do-it-yourself customers. As of April 22, 2023 Advance operated 4,778 stores and 318 Worldpac branches primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. The company also served 1,315 independently owned Carquest branded stores across these locations in addition to Mexico and various Caribbean islands. Additional information about Advance, including employment opportunities, customer services, and online shopping for parts, accessories and other offerings can be found at 
      link hidden, please login to view. 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 our strategic initiatives, operational plans and objectives, expectations for economic conditions and recovery and future business and financial performance, as well as statements regarding underlying assumptions related thereto. Forward-looking statements reflect our views based on historical results, current information and assumptions related to future developments. Except as may be required by law, we undertake 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, factors related to the company’s leadership transition, the timing and implementation of strategic initiatives, including with respect to labor shortages or disruptions and the impact on our ability to complete store openings, deterioration of general macroeconomic conditions, the highly competitive nature of our industry, demand for our products and services, complexities in our inventory and supply chain and challenges with transforming and growing our business. Please refer to “
      link hidden, please login to view” of our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), as updated by our 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) (unaudited)
       
       
      April 22, 2023(1)
       
      December 31, 2022(2)
      Assets
       
       
       
      Current assets:
       
       
       
      Cash and cash equivalents
      $
      226,499
       
      $
      269,282
      Receivables, net
       
      782,093
       
       
      698,613
      Inventories, net
       
      5,015,973
       
       
      4,915,262
      Other current assets
       
      177,127
       
       
      163,695
      Total current assets
       
      6,201,692
       
       
      6,046,852
      Property and equipment, net
       
      1,694,337
       
       
      1,690,139
      Operating lease right-of-use assets
       
      2,628,899
       
       
      2,607,690
      Goodwill
       
      990,573
       
       
      990,471
      Other intangible assets, net
       
      612,104
       
       
      620,901
      Other assets
       
      54,633
       
       
      62,429
      Total assets
      $
      12,182,238
       
      $
      12,018,482
      Liabilities and Stockholders' Equity
       
       
       
      Current liabilities:
       
       
       
      Accounts payable
      $
      3,682,749
       
      $
      4,123,462
      Accrued expenses
       
      718,290
       
       
      634,447
      Current portion of long-term debt
       
      116,000
       
       
      185,000
      Other current liabilities
       
      466,416
       
       
      427,480
      Total current liabilities
       
      4,983,455
       
       
      5,370,389
      Long-term debt
       
      1,784,596
       
       
      1,188,283
      Noncurrent operating lease liabilities
       
      2,269,280
       
       
      2,278,318
      Deferred income taxes
       
      422,984
       
       
      415,997
      Other long-term liabilities
       
      85,762
       
       
      87,214
      Total stockholders' equity
       
      2,636,161
       
       
      2,678,281
      Total liabilities and stockholders’ equity
      $
      12,182,238
       
      $
      12,018,482
      (1)   This preliminary condensed consolidated balance sheet has been prepared on a basis consistent with the company's previously prepared consolidated balance sheets filed with the Securities and Exchange Commission (“SEC”), but does not include the footnotes required by accounting principles generally accepted in the United States of America (“GAAP”).
      (2)   The balance sheet at December 31, 2022 has been derived from the audited consolidated financial statements at that date, but does not include the footnotes required by GAAP.
      Advance Auto Parts, Inc. and Subsidiaries
      Condensed Consolidated Statements of Operations
      (In thousands, except per share data) (unaudited)
       
       
      Sixteen Weeks Ended
       
      April 22, 2023(1)
       
      April 23, 2022(1)
      Net sales
      $
      3,417,594
       
       
      $
      3,374,210
       
      Cost of sales, including purchasing and warehousing costs
       
      1,946,931
       
       
       
      1,867,690
       
      Gross profit
       
      1,470,663
       
       
       
      1,506,520
       
      Selling, general and administrative expenses (2)
       
      1,380,664
       
       
       
      1,303,250
       
      Operating income
       
      89,999
       
       
       
      203,270
       
      Other, net:
       
       
       
      Interest expense
       
      (29,718
      )
       
       
      (12,868
      )
      Loss on early redemptions of senior unsecured notes
       

       
       
       
      (7,408
      )
      Other (expense) income, net
       
      (674
      )
       
       
      136
       
      Total other, net
       
      (30,392
      )
       
       
      (20,140
      )
      Income before provision for income taxes
       
      59,607
       
       
       
      183,130
       
      Provision for income taxes
       
      16,956
       
       
       
      43,339
       
      Net income
      $
      42,651
       
       
      $
      139,791
       
       
       
       
       
      Basic earnings per common share
      $
      0.72
       
       
      $
      2.28
       
      Weighted-average common shares outstanding
       
      59,334
       
       
       
      61,261
       
       
       
       
       
      Diluted earnings per common share
      $
      0.72
       
       
      $
      2.26
       
      Weighted-average common shares outstanding
       
      59,544
       
       
       
      61,732
       
      (1)   These preliminary condensed consolidated statements of operations have been prepared on a basis consistent with the company's previously prepared consolidated statements of operations filed with the SEC, but do not include the footnotes required by GAAP.
      (2)   The sixteen weeks ended April 22, 2023 included an out-of-period charge of approximately $17 million related to costs incurred in prior years but not expensed in the corresponding periods. The company determined the cumulative impact was not material to the current period or any previously issued financial statements.
      Advance Auto Parts, Inc. and Subsidiaries
      Condensed Consolidated Statements of Cash Flows
      (In thousands) (unaudited)
       
       
       
       
       
      Sixteen Weeks Ended
       
      April 22, 2023(1)
       
      April 23, 2022(1)
      Cash flows from operating activities:
       
       
       
      Net income
      $
      42,651
       
       
      $
      139,791
       
      Adjustments to reconcile net income to net cash used in operating activities:
       
       
       
      Depreciation and amortization
       
      92,554
       
       
       
      85,581
       
      Share-based compensation
       
      16,524
       
       
       
      16,978
       
      Loss on property and equipment, net
       
      90
       
       
       
      1,237
       
      Loss on early redemptions of senior unsecured notes
       

       
       
       
      7,408
       
      Provision for deferred income taxes
       
      6,899
       
       
       
      9,681
       
      Other, net
       
      391
       
       
       
      1,020
       
      Net change in:
       
       
       
      Receivables, net
       
      (83,370
      )
       
       
      (174,895
      )
      Inventories, net
       
      (100,178
      )
       
       
      (119,550
      )
      Accounts payable
       
      (440,995
      )
       
       
      20,225
       
      Accrued expenses
       
      85,035
       
       
       
      (98,978
      )
      Other assets and liabilities, net
       
      1,534
       
       
       
      56,562
       
      Net cash used in operating activities
       
      (378,865
      )
       
       
      (54,940
      )
      Cash flows from investing activities:
       
       
       
      Purchases of property and equipment
       
      (89,996
      )
       
       
      (114,854
      )
      Proceeds from sales of property and equipment
       
      325
       
       
       
      828
       
      Net cash used in investing activities
       
      (89,671
      )
       
       
      (114,026
      )
      Cash flows from financing activities:
       
       
       
      Borrowings under credit facilities
       
      2,886,000
       
       
       
      275,000
       
      Payments on credit facilities
       
      (2,955,000
      )
       
       
      (275,000
      )
      Borrowings on senior unsecured notes
       
      599,571
       
       
       
      348,618
       
      Payments on senior unsecured notes
       

       
       
       
      (201,081
      )
      Dividends paid
       
      (89,487
      )
       
       
      (154,796
      )
      Repurchases of common stock
       
      (12,605
      )
       
       
      (264,469
      )
      Other, net
       
      (2,819
      )
       
       
      (2,007
      )
      Net cash provided by (used in) financing activities
       
      425,660
       
       
       
      (273,735
      )
      Effect of exchange rate changes on cash
       
      93
       
       
       
      (19,994
      )
      Net decrease in cash and cash equivalents
       
      (42,783
      )
       
       
      (462,695
      )
      Cash and cash equivalents, beginning of period
       
      269,282
       
       
       
      601,428
       
      Cash and cash equivalents, end of period
      $
      226,499
       
       
      $
      138,733
       
      (1)   These preliminary condensed consolidated statements of cash flows have been prepared on a consistent basis with the company's previously prepared statements of cash flows filed with the SEC, but do not include the footnotes required by GAAP.
      Reconciliation of Non-GAAP Financial Measure
      The company's financial results include certain financial measures not derived in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management uses Free cash flow as a measure of its liquidity and believes it is a useful indicator to investors or potential investors of the company's ability to implement growth strategies and service 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 the company's condensed consolidated statement of cash flows as a measure of liquidity.
      Reconciliation of Free Cash Flow:
       
       
       
       
      Sixteen Weeks Ended
      (in thousands)
      April 22, 2023
       
      April 23, 2022
      Cash flows used in operating activities
      $
      (378,865
      )
       
      $
      (54,940
      )
      Purchases of property and equipment
       
      (89,996
      )
       
       
      (114,854
      )
      Free cash flow
      $
      (468,861
      )
       
      $
      (169,794
      )
      Adjusted Debt to EBITDAR: (1)
       
       
       
       
      Four Quarters Ended
      (In thousands, except adjusted debt to EBITDAR ratio)
      April 22, 2023
       
      December 31, 2022
      Total GAAP debt
      $
      1,900,596
       
      $
      1,373,283
      Add: Operating lease liabilities
       
      2,726,880
       
       
      2,692,861
      Adjusted debt
      $
      4,627,476
       
      $
      4,066,144
       
       
       
       
      GAAP Net income
      $
      404,732
       
      $
      501,872
      Depreciation and amortization
       
      291,032
       
       
      283,800
      Provision for income taxes
       
      120,432
       
       
      146,815
      Interest expense
       
      67,910
       
       
      51,060
      Share-based compensation
       
      50,524
       
       
      50,978
      Other expense, net
       
      7,806
       
       
      6,996
      Rent expense
       
      595,208
       
       
      594,838
      EBITDAR
      $
      1,537,644
       
      $
      1,636,359
       
       
       
       
      Adjusted Debt to EBITDAR
       
      3.0
       
       
      2.5
      (1)
        Beginning in first quarter 2023, the company no longer excludes transformation-related activities in non-GAAP measures. Prior period has been recast to conform to current year presentation.
      NOTE: Management believes its Adjusted Debt to 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, net earnings or debt 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 might not be calculated in the same manner as, and thus might not be comparable to, similarly titled measures by other companies.
      Store Information
      During the sixteen weeks ended April 22, 2023, 21 stores and branches were opened and 11 were closed or consolidated, resulting in a total of 5,096 stores and branches as of April 22, 2023, compared with a total of 5,086 stores and branches as of December 31, 2022.
      The below table summarizes the changes in the number of company-operated store and branch locations during the sixteen weeks ended April 22, 2023:
       
       
      AAP
       
      CARQUEST
       
      WORLDPAC (1)
       
      Total
      December 31, 2022
       
      4,440
       
       
      330
       
       
      316
       
      5,086
       
      New
       
      19
       
       

       
       
      2
       
      21
       
      Closed
       
      (3
      )
       
      (8
      )
       

       
      (11
      )
      Consolidated
       

       
       

       
       

       

       
      Converted
       

       
       

       
       

       

       
      Relocated
       

       
       

       
       

       

       
      April 22, 2023
       
      4,456
       
       
      322
       
       
      318
       
      5,096
       
      (1)
        Certain converted Autopart International ("AI") locations will remain branded as AI going forward.
       

      View source version on  link hidden, please login to view:  link hidden, please login to view
      Investor Relations Contact:
      Elisabeth Eisleben
      T: (919) 227-5466
      E: [email protected]
      Media Contact:
      Darryl Carr
      T: (984) 389-7207
      E: [email protected]
      Source: Advance Auto Parts, Inc.

      link hidden, please login to view
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