Quantcast
Jump to content

  • Welcome to Auto Parts Forum

    Whether you are a veteran automotive parts guru or just someone looking for some quick auto parts advice, register today and start a new topic in our forum. Registration is free and you can even sign up with social network platforms such as Facebook, Twitter, Google, and LinkedIn. 

     

O’Reilly Reports 7% Increase In Q1 Sales


Recommended Posts

O’Reilly Automotive reported first-quarter sales of $3.3 billion, a 7% year-over-year increase.

Comparable-store sales were up 4.8%, on top of the record 24.8% year-over-year increase in first-quarter 2021.

“Historically, our first quarter can be volatile, as we see weather impacts from winter conditions early in the quarter and the timing of the onset of spring at the end,” CEO Greg Johnson said in a news release. “This year was no exception, and we saw choppiness in our business that coincided with inclement weather at the beginning of our quarter and the slow start to spring, along with other macroeconomic pressures. However, we continue to be pleased with the core, underlying strength of our business and our solid first-quarter comparable-store sales results, which, on top of last year’s performance, are clear indicators of our team’s ability to grow our business and take market share.”

The emergence of the coronavirus Omicron variant put some pressure on O’Reilly’s DIFM sales early in the quarter, but  “outside of this short period, our professional business in the quarter was consistent and in line with our expectations, with comp strongly positive in each month of the quarter,” Johnson explained during the company’s first-quarter conference call.

“We’re encouraged by the resiliency and consistency of our professional-customer demand, and still anticipate this side of the business to be the larger driver of our growth in 2022 as we grow share and consolidate the market,” Johnson added.

In February, O’Reilly rolled out targeted, companywide price cuts for DIFM customers, which contributed to an expected year-over-year decline in the company’s gross profit margin. Johnson pointed out that the competitive response to O’Reilly’s pricing initiative “has been muted, as expected, and pricing remains rational.”

The DIY side of the business was much more volatile, according to Johnson.

“Early in the quarter, in addition to the headwind from inclement weather and Omicron, we also faced headwinds to DIY traffic from macroeconomic pressures stemming from the spike in gas prices and global instability,” Johnson explained.

Over the last eight weeks of the quarter, which ended on March 31, DIY volumes stabilized, “though still hampered by less-than-ideal spring weather as our business benefits when we see an early start to spring.”

“Our DIY customers often perform their routine jobs outside in their driveways and will take advantage when warmer weather hits to catch up on the repair, maintenance and tuneup items that have been temporarily on hold at the end of winter,” Johnson added. “This year, we have seen cold, wet weather persist through much of spring in many of our markets. However, the corresponding impact to demand matches up to what we have historically seen in similar environments, and we have been encouraged that DIY results have stabilized from volatility earlier in the quarter.”

Along with reporting its first-quarter financial results, O’Reilly announced that Tom McFall will step down as chief financial officer effective May 9, although he will stay with the company in the role of executive vice president. At that time, Jeremy Fletcher, O’Reilly’s senior vice president of finance and controller, will be promoted to CFO.

“After 16 years of dedicated service, Tom has communicated his desire to transition into a different role with the Company,” Johnson said. “Tom has provided exceptional leadership to our company since joining Team O’Reilly in 2006, and we are pleased he will continue to provide valuable guidance and mentorship as he shifts to this new role. Tom will retain his existing responsibilities in the areas of information technology, real estate, legal and risk management, and will continue to provide key strategic and executive leadership. Succession planning has always been an important component of our culture, and Tom has done an extraordinary job preparing Jeremy for his new role.”

Fletcher, 45, has been an O’Reilly team member for 16 years. Upon joining the company in 2005, Mr. Fletcher served as financial reporting and budgeting manager and progressed through the roles of director of finance, vice president of finance and controller and has served in his current role as senior vice president of finance and controller for more than five years.

The post

link hidden, please login to view
appeared first on
link hidden, please login to view
.

link hidden, please login to view

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Similar Topics

    • By Counterman
      AutoZone reported net sales of $5.7 billion for its fiscal-2023 fourth quarter, a 6.4% year-over-year increase.
      Domestic same-store sales for the fourth quarter, which ended Aug. 26, were up 1.7%.
      Operating profit increased 10.8% to $1.2 billion. Net income for the quarter increased 6.8% to $864.8 million, while diluted earnings per share increased 14.7% to $46.46, according to the company.
      “While we started this quarter slowly, we saw improvements in the back half of our quarter,” AutoZone CEO Bill Rhodes said in a news release. “Despite lower-than-expected growth in domestic commercial, we believe that the initiatives we have in place and are implementing will drive stronger growth in fiscal 2024. Additionally, we continued to be pleased with our international stores’ performance and we are excited about future growth prospects across both Mexico and Brazil.”
      Same-store sales in Mexico and Brazil were up 4.5% on a year-over-year basis.
      During the quarter, AutoZone opened 53 new stores and closed one in the United States, and opened 27 new stores in Mexico and 17 in Brazil for a total of 96 net new stores. For the fiscal year, the company opened 197 net new stores.
      As of Aug. 26, the company had 6,300 stores in the United States, 740 in Mexico and 100 in Brazil for a total store count of 7,140.
      The post
      link hidden, please login to view appeared first on link hidden, please login to view.
      link hidden, please login to view
    • By AutoZone
      MEMPHIS, Tenn. , Sept. 19, 2023 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO) today reported net sales of $5.7 billion for its fourth quarter (16 weeks) ended August 26, 2023 , an increase of 6.4% from the fourth quarter of fiscal 2022 (16 weeks). Same store sales, or sales for our domestic and
      link hidden, please login to view
    • By Advance Auto Parts
      ADVANCE AUTO PARTS REPORTS SECOND QUARTER 2023 RESULTS
        Q2 Net Sales Increased 0.8% to $2.7 Billion; Comparable Store Sales Decreased 0.6%
      Operating Income of $134.4 Million; Operating Income Margin of 5.0%
      Separately Announces Leadership Appointments
      Initiated Comprehensive Operational and Strategic Review
      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 second quarter ended July 15, 2023. The company also announced that it has initiated a comprehensive operational and strategic review.
      Tom Greco, president and chief executive officer, said, “I want to thank the entire Advance family for their dedication and focus on serving our customers in the second quarter while we continued to execute against our priorities to improve operational performance. Profitability in the quarter was below expectations, primarily related to our inability to price to cover inflation. However, we began to see early signs that the strategic investments we are making are beginning to drive an improvement in topline sales and transactions. This is evidenced by positive comparable store sales growth in the final four weeks of the second quarter, which has continued into the third quarter.”
      Gene Lee, interim executive chair, continued, “Since expanding my role to serve as interim executive chair and partnering more closely with Tom and the leadership team, I have taken a deeper dive into the business and our strategy. As we look to the balance of 2023, we are updating our full-year guidance. We recognize that there is significant work to be done to improve execution across the business and are conducting a comprehensive operational and strategic review to position Advance for long-term success and increase shareholder value. Importantly, as announced separately today, we have identified Advance’s next CEO and look forward to welcoming Shane O’Kelly, an accomplished executive with extensive operational and supply chain experience. The board will work with Shane and the management team to ensure Advance is taking the right steps to build a stronger, more resilient business for the benefit of all stakeholders.”
      Second Quarter 2023 Results (1)
      Second quarter of 2023 Net sales totaled $2.7 billion, a 0.8% increase compared with the second quarter of the prior year, primarily driven by new store openings. This was partially offset by a decline of comparable store sales of 0.6%.
      Gross profit decreased 3.2% to $1.1 billion. Gross profit margin was 42.7% of Net sales compared with 44.5% of Net sales in the second quarter of the prior year. This was primarily driven by higher product costs and supply chain deleverage that were not fully covered by pricing actions, partially offset by a reduction in LIFO-related expenses.
      SG&A expenses were $1.0 billion, which were 37.7% of Net sales compared with 36.9% in the second quarter of the prior year. This was primarily driven by inflation within labor and benefit-related expenses.
      The company's Operating income was $134.4 million, or 5.0% of Net sales, compared with 7.6% in the second quarter of the prior year.
      The company's effective tax rate was 25.9%, compared with 24.3% in the second quarter of the prior year. The company's Diluted EPS was $1.43, compared with $2.38 in the second quarter of the prior year.
      Net cash used in operating activities was $164.6 million through the second quarter of 2023 versus $308.5 million provided by operating activities in the same period of the prior year. The decrease 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 second quarter of 2023 was an outflow of $309.4 million compared with an inflow of $97.3 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 August 7, 2023, the company declared a regular cash dividend of $0.25 per share to be paid on October 27, 2023 to all common stockholders of record as of October 13, 2023.
      Full Year 2023 Guidance
      Tony Iskander, interim chief financial officer, said, “We are updating our full-year guidance, which considers a modest step up in net and comparable store sales growth driven by strengthening of our professional business. However, we are reducing our outlook for operating income margin rate, diluted earnings per share and free cash flow. This reflects additional headwinds anticipated in the back half of the year driven by our ongoing commitment to maintain competitive price targets, impacts from a shift in channel mix and investments in our team to help retain top talent.”
       
      Prior FY 2023 Outlook
       
      Updated FY 2023 Outlook
       
      As of May 31, 2023
       
      As of August 23, 2023
      ($ in millions, except per share data)
      Low
       
      High
       
      Low
       
      High
      Net sales
      $
      11,200
       
       
      $
      11,300
       
       
      $
      11,250
       
       
      $
      11,350
       
      Comparable store sales (1)
       
      (1.0
      )%
       
       

      %
       
       
      (0.5
      )%
       
       
      0.5
      %
      Operating income margin
       
      5.0
      %
       
       
      5.3
      %
       
       
      4.0
      %
       
       
      4.3
      %
      Income tax rate
       
      24.0
      %
       
       
      25.0
      %
       
       
      25.0
      %
       
       
      25.0
      %
      Diluted EPS
      $
      6.00
       
       
      $
      6.50
       
       
      $
      4.50
       
       
      $
      5.10
       
      Capital expenditures
      $
      250
       
       
      $
      300
       
       
      $
      200
       
       
      $
      250
       
      Free cash flow (2)
      $
      200
       
       
      $
      300
       
       
      $
      150
       
       
      $
      250
       
      New store and branch openings
       
      40
       
       
       
      60
       
       
       
      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 second quarter ended July 15, 2023 via a webcast scheduled to begin at 8 a.m. Eastern Time on Wednesday, August 23, 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 July 15, 2023 Advance operated 4,790 stores and 319 Worldpac branches primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. The company also served 1,307 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 leadership transition, strategic initiatives, operational plans and objectives, our planned strategic and operational review and expectations for economic conditions, future business results and future 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, our ability to hire, train and retain qualified employees, 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 “Item 1A. Risk Factors” 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)
       
       
      July 15,
      2023 (1)
       
      December 31, 2022 (2)
      Assets
       
       
       
      Current assets:
       
       
       
      Cash and cash equivalents
      $
      277,064
       
      $
      269,282
      Receivables, net
       
      793,772
       
       
      698,613
      Inventories, net
       
      5,067,467
       
       
      4,915,262
      Other current assets
       
      188,169
       
       
      163,695
      Total current assets
       
      6,326,472
       
       
      6,046,852
      Property and equipment, net
       
      1,688,891
       
       
      1,690,139
      Operating lease right-of-use assets
       
      2,618,822
       
       
      2,607,690
      Goodwill
       
      991,871
       
       
      990,471
      Other intangible assets, net
       
      606,450
       
       
      620,901
      Other assets
       
      71,870
       
       
      62,429
      Total assets
      $
      12,304,376
       
      $
      12,018,482
      Liabilities and Stockholders' Equity
       
       
       
      Current liabilities:
       
       
       
      Accounts payable
      $
      3,780,215
       
      $
      4,123,462
      Accrued expenses
       
      685,191
       
       
      634,447
      Current portion of long-term debt
       
      95,000
       
       
      185,000
      Other current liabilities
       
      465,972
       
       
      427,480
      Total current liabilities
       
      5,026,378
       
       
      5,370,389
      Long-term debt
       
      1,785,074
       
       
      1,188,283
      Noncurrent operating lease liabilities
       
      2,249,994
       
       
      2,278,318
      Deferred income taxes
       
      432,680
       
       
      415,997
      Other long-term liabilities
       
      87,063
       
       
      87,214
      Total stockholders' equity
       
      2,723,187
       
       
      2,678,281
      Total liabilities and stockholders’ equity
      $
      12,304,376
       
      $
      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)
       
       
       
       
       
       
      Twelve Weeks Ended
       
      Twenty-Eight Weeks Ended
       
      July 15, 2023 (1)
       
      July 16, 2022 (1)
       
      July 15, 2023 (1)
       
      July 16, 2022 (1)
      Net sales
      $
      2,686,066
       
       
      $
      2,665,426
       
       
      $
      6,103,659
       
       
      $
      6,039,636
       
      Cost of sales, including purchasing and warehousing costs
       
      1,537,997
       
       
       
      1,479,707
       
       
       
      3,484,927
       
       
       
      3,347,397
       
      Gross profit
       
      1,148,069
       
       
       
      1,185,719
       
       
       
      2,618,732
       
       
       
      2,692,239
       
      Selling, general and administrative expenses (2)
       
      1,013,701
       
       
       
      984,037
       
       
       
      2,394,365
       
       
       
      2,287,287
       
      Operating income
       
      134,368
       
       
       
      201,682
       
       
       
      224,367
       
       
       
      404,952
       
      Other, net:
       
       
       
       
       
       
       
      Interest expense
       
      (20,869
      )
       
       
      (10,207
      )
       
       
      (50,587
      )
       
       
      (23,075
      )
      Loss on early redemption of senior unsecured notes
       

       
       
       

       
       
       

       
       
       
      (7,408
      )
      Other income (expense), net
       
      1,684
       
       
       
      (711
      )
       
       
      1,009
       
       
       
      (575
      )
      Total other, net
       
      (19,185
      )
       
       
      (10,918
      )
       
       
      (49,578
      )
       
       
      (31,058
      )
      Income before provision for income taxes
       
      115,183
       
       
       
      190,764
       
       
       
      174,789
       
       
       
      373,894
       
      Provision for income taxes
       
      29,821
       
       
       
      46,362
       
       
       
      46,776
       
       
       
      89,701
       
      Net income
      $
      85,362
       
       
      $
      144,402
       
       
      $
      128,013
       
       
      $
      284,193
       
       
       
       
       
       
       
       
       
      Basic earnings per common share
      $
      1.44
       
       
      $
      2.39
       
       
      $
      2.16
       
       
      $
      4.67
       
      Weighted-average common shares outstanding
       
      59,451
       
       
       
      60,452
       
       
       
      59,384
       
       
       
      60,914
       
       
       
       
       
       
       
       
       
      Diluted earnings per common share
      $
      1.43
       
       
      $
      2.38
       
       
      $
      2.15
       
       
      $
      4.63
       
      Weighted-average common shares outstanding
       
      59,604
       
       
       
      60,782
       
       
       
      59,570
       
       
       
      61,328
       
      (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 twenty-eight weeks ended July 15, 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)
       
       
       
       
       
      Twenty-Eight Weeks Ended
       
      July 15, 2023 (1)
       
      July 16, 2022 (1)
      Cash flows from operating activities:
       
       
       
      Net income
      $
      128,013
       
       
      $
      284,193
       
      Adjustments to reconcile net income to net cash used in operating activities:
       
       
       
      Depreciation and amortization
       
      162,974
       
       
       
      148,691
       
      Share-based compensation
       
      26,791
       
       
       
      29,345
       
      Loss and impairment on property and equipment, net
       
      859
       
       
       
      2,970
       
      Loss on early redemption of senior unsecured notes
       

       
       
       
      7,408
       
      Provision for deferred income taxes
       
      16,249
       
       
       
      8,779
       
      Other, net
       
      1,170
       
       
       
      1,575
       
      Net change in:
       
       
       
      Receivables, net
       
      (93,539
      )
       
       
      (149,255
      )
      Inventories, net
       
      (145,148
      )
       
       
      (176,300
      )
      Accounts payable
       
      (346,808
      )
       
       
      168,219
       
      Accrued expenses
       
      120,888
       
       
       
      (46,887
      )
      Other assets and liabilities, net
       
      (36,008
      )
       
       
      29,805
       
      Net cash (used in) provided by operating activities
       
      (164,559
      )
       
       
      308,543
       
      Cash flows from investing activities:
       
       
       
      Purchases of property and equipment
       
      (144,874
      )
       
       
      (211,212
      )
      Proceeds from sales of property and equipment
       
      1,532
       
       
       
      830
       
      Net cash used in investing activities
       
      (143,342
      )
       
       
      (210,382
      )
      Cash flows from financing activities:
       
       
       
      Borrowings under credit facilities
       
      4,327,000
       
       
       
      743,000
       
      Payments on credit facilities
       
      (4,417,000
      )
       
       
      (643,000
      )
      Borrowings on senior unsecured notes
       
      599,571
       
       
       
      348,618
       
      Payments on senior unsecured notes
       

       
       
       
      (201,081
      )
      Dividends paid
       
      (179,347
      )
       
       
      (245,599
      )
      Repurchases of common stock
       
      (13,808
      )
       
       
      (466,169
      )
      Other, net
       
      (2,013
      )
       
       
      (1,329
      )
      Net cash provided by (used in) financing activities
       
      314,403
       
       
       
      (465,560
      )
      Effect of exchange rate changes on cash
       
      1,280
       
       
       
      6,522
       
      Net increase (decrease) in cash and cash equivalents
       
      7,782
       
       
       
      (360,877
      )
      Cash and cash equivalents, beginning of period
       
      269,282
       
       
       
      601,428
       
      Cash and cash equivalents, end of period
      $
      277,064
       
       
      $
      240,551
       
      (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:
       
      Twenty-Eight Weeks Ended
      (in thousands)
      July 15, 2023
       
      July 16, 2022
      Cash flows (used in) provided by operating activities
      $
      (164,559
      )
       
      $
      308,543
       
      Purchases of property and equipment
       
      (144,874
      )
       
       
      (211,212
      )
      Free cash flow
      $
      (309,433
      )
       
      $
      97,331
       
      Adjusted Debt to Adjusted EBITDAR: (1)
       
         
       
         
      Four Quarters Ended
        (In thousands, except adjusted debt to adjusted EBITDAR ratio)
      July 15,
      2023
         
      December 31, 2022
        Total GAAP debt
      $
      1,880,074
         
      $
      1,373,283
        Add: Operating lease liabilities
       
      2,705,388
         
       
      2,692,861
        Adjusted debt
      $
      4,585,462
         
      $
      4,066,144
         
       
         
       
        GAAP Net income
      $
      345,692
         
      $
      501,872
        Depreciation and amortization
       
      298,083
         
       
      283,800
        Interest expense
       
      78,572
         
       
      51,060
        Other expense, net
       
      5,412
         
       
      6,996
        Provision for income taxes
       
      103,890
         
       
      146,815
        Rent expense
       
      596,537
         
       
      594,838
        Share-based compensation
       
      48,424
         
       
      50,978
        Other non-cash charges
       
      17,725
         
       

        Adjusted EBITDAR
      $
      1,494,335
         
      $
      1,636,359
         
       
         
       
        Adjusted Debt to Adjusted EBITDAR
       
      3.1
         
       
      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 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, 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 twenty-eight weeks ended July 15, 2023, 39 stores and branches were opened and 16 were closed or consolidated, resulting in a total of 5,109 stores and branches as of July 15, 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 twelve and twenty-eight weeks ended July 15, 2023:
       
       
      Twelve Weeks Ended
       
       
      AAP
       
      CARQUEST
       
      WORLDPAC (1)
       
      Total
      April 22, 2023
       
      4,456
       
      322
       
      318
       
      5,096
      New
       
      17
       

       
      1
       
      18
      Closed
       
      (2)
       
      (3)
       

       
      (5)
      July 15, 2023
       
      4,471
       
      319
       
      319
       
      5,109
       
       
      Twenty-Eight Weeks Ended
       
       
      AAP
       
      CARQUEST
       
      WORLDPAC (1)
       
      Total
      December 31, 2022
       
      4,440
       
      330
       
      316
       
      5,086
      New
       
      36
       

       
      3
       
      39
      Closed
       
      (5)
       
      (11)
       

       
      (16)
      July 15, 2023
       
      4,471
       
      319
       
      319
       
      5,109
      There were no consolidated, converted or relocated stores during the twelve and twenty-eight weeks ended July 15, 2023. (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
    • By Counterman
      Genuine Parts Co. (GPC) reported second-quarter sales of $5.9 billion, up 5.6% compared to second-quarter 2022.
      GPC reported a 4.9% increase in comparable sales. A 1.8% benefit from acquisitions contributed to the quarterly results, the company noted.
      Net income jumped 10% to $344 million. On a per-share diluted basis, net income was $2.44, an increase of nearly 11% compared to adjusted diluted earnings per share of $2.20 last year.
      “We are pleased to report another solid quarter, which includes record sales and double-digit adjusted earnings growth,” said Paul Donahue, chairman and CEO. “Our second-quarter performance, once again, highlights the value and benefit of our global Automotive and Industrial business mix and geographic diversity, which we believe are competitive advantages that differentiate GPC in the marketplace.”
      Sales for the Automotive Parts Group, which includes NAPA Auto Parts, increased 5.4% to $3.7 billion. The results include a 4.3% increase in comparable sales and a 2.6% benefit from acquisitions, according to the company.
      “Global Automotive sales continue to benefit from our global diversification, as our businesses outside the U.S. posted mid-single-digit to double-digit growth in local currency in the second quarter,” said Will Stengel, president and chief operating officer.
      “Our Industrial sales growth was broad based, with all product categories and major industries served growing from the prior year, allowing the Industrial team to post its 12th consecutive quarter of margin expansion. The global GPC team delivered a solid second quarter and our teams remain focused on the consistent execution of our strategic initiatives. We believe our investments in our people, customer solutions, technology, supply chain and emerging technology will continue to enhance our capabilities and leadership positions.”
      The post
      link hidden, please login to view appeared first on link hidden, please login to view.
      link hidden, please login to view
    • 30% OFF all service and repair manuals
    • By Counterman
      O’Reilly Automotive reported record revenue and earnings for its second quarter, which ended June 30.
      Second-quarter sales were $4.07 billion, up 11% from second-quarter 2022. Gross profit increased 11% to nearly $2.1 billion.
      Diluted earnings per common share increased 16% to $10.22 on 61 million shares, versus $8.78 on 66 million shares for second-quarter 2022.
      Comparable-store sales jumped 9% year-over-year.
      “Team O’Reilly’s commitment to providing consistently excellent customer service drove robust double-digit professional and solid DIY comparable-store sales growth in the quarter,” O’Reilly CEO Greg Johnson said in a news release. “I want to congratulate our over 88,000 dedicated team members on their incredible performance in the second quarter and express my sincere appreciation for their relentless focus on delivering industry-leading service to our customers each and every day.”
      Sales for the first six months of 2023 increased 12% to $7.78 billion compared to the first six months of 2022.
      “The strong top-line performance we delivered through the first half of the year exceeded our expectations, and we remain pleased with our performance thus far in July,” Johnson said. “We believe the core underlying demand drivers of our industry remain solid, and more importantly, we remain confident in our team’s ability to consistently execute our proven dual market strategy and expand our market share.”
      The year-to-date results “and continued robust sales trends” prompted O’Reilly to boost its full-year comparable-store sales guidance from a range of 4% to 6% to a range of 5% to 7%.
      New DC in Mexico
      So far in 2023, O’Reilly has opened 100 net new stores across 34 U.S. states, Puerto Rico and Mexico and is on pace to meet the company’s goal of opening 180 to 190 net new store openings this year, according to Johnson.
      In July, O’Reilly opened its first distribution center in Mexico.
      “This new, 370,000-square-foot facility strengthens our existing store network with enhanced inventory availability, empowering higher service levels and establishing the critical foundation for long-term store growth in Mexico,” Johnson said.
      The post
      link hidden, please login to view appeared first on link hidden, please login to view.
      link hidden, please login to view

×
  • Create New...