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By AutoZone
MEMPHIS, Tenn. , Nov. 16, 2022 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE:AZO), announced it will hold its Annual Meeting of Stockholders on December 14, 2022 , at the J.R. Hyde III Store Support Center in Memphis, Tennessee . The meeting will begin at 9:00 a.m. (ET) .
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By AutoZone
MEMPHIS, Tenn. , Nov. 16, 2022 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO), the leading retailer and distributor of automotive replacement parts and accessories in the Americas , will release results for its first quarter ended Saturday, November 19, 2022 , before market open on Tuesday,
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By Advance Auto Parts
Q3 Net Sales Increased 0.8% to $2.6 Billion; Year to Date Increased 1.0%
Returned $167 Million to Shareholders in Q3; Year to Date Returned $860 Million
Reiterates Net Sales, Comparable Store Sales and Adjusted Operating Income Margin Guidance
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 third quarter ended October 8, 2022.
"I want to thank the entire family of Advance team members as well as our growing network of independent partners for their continued dedication,” said Tom Greco, president and chief executive officer. “We continue to execute our strategy to drive full year net sales growth and adjusted operating income margin expansion while returning excess cash to shareholders. In the third quarter, net sales grew 0.8% which benefited from improvements in strategic pricing and new stores, while comparable store sales declined by 0.7% in-line with previous guidance. Our deliberate move to increase owned brand penetration, which carries a lower price point, reduced net sales by approximately 80 basis points and comp sales by approximately 90 basis points. We also continued to invest in our business while returning approximately $860 million in cash to our shareholders through the first three quarters of 2022.
“We’re reiterating our full year guidance that implies 20 to 40 basis points of adjusted operating income margin expansion, despite margins contracting in the third quarter. 2022 will be the second consecutive year that we have grown adjusted operating income margins in a highly inflationary environment. Our industry has proven to be resilient, and the fundamental drivers of demand remain positive. While we continue to execute against our long-term strategic plan, we’re not satisfied with our relative topline performance versus the industry this year and are taking measured, deliberate actions to accelerate growth.”
Third Quarter 2022 Results (1)
Net sales increased 0.8% to $2.6 billion Comparable store sales (2) decreased 0.7% Gross profit decreased 0.2% to $1.2 billion; Adjusted gross profit (3) increased 2.9% to $1.2 billion Gross profit margin decreased 44 basis points to 44.7% of Net sales; Adjusted gross profit margin (3) increased 98 basis points to 47.2% of Net sales SG&A increased 5.2% to $1.0 billion; Adjusted SG&A (3) increased 5.4% to $989.3 million SG&A was 38.0% of Net sales compared with 36.4% of Net sales; Adjusted SG&A (3) was 37.5% of Net sales compared with 35.8% of Net sales Operating income decreased 22.7% to $177.2 million; Adjusted operating income (3) decreased 5.8% to $258.0 million Operating income margin was 6.7% of Net sales compared with 8.7% of Net sales; Adjusted operating income margin (3) was 9.8% of Net sales compared with 10.4% of Net sales Diluted EPS decreased 31.3% to $1.84; Adjusted diluted EPS (3) decreased 11.5% to $2.84 Net cash provided by operating activities through the third quarter was $483.1 million; Free cash flow (3) through the third quarter was an inflow of $149.5 million Opened 37 new store and branch locations in the third quarter Third quarter of 2022 Net sales totaled $2.6 billion, a 0.8% increase compared with the third quarter of the prior year, primarily driven by strategic pricing and new store openings. Comparable store sales for the third quarter of 2022 decreased 0.7%, which was impacted by increased owned brand penetration, which has a lower price point than national brands.
The company's GAAP Gross profit decreased 0.2% to $1.2 billion. Adjusted gross profit increased 2.9% to $1.2 billion. The company's GAAP Gross profit margin of 44.7% of Net sales decreased 44 basis points compared with the third quarter of the prior year. Adjusted gross profit margin increased 98 basis points to 47.2% of Net sales, compared with 46.2% in the third quarter of 2021. This was primarily driven by improvements in strategic pricing and product mix as well as owned brand expansion. These headwinds were partially offset by continued inflationary product costs and unfavorable channel mix.
The company's GAAP SG&A was 38.0% of Net sales compared with 36.4% in the third quarter of 2021. Adjusted SG&A increased to $989.3 million from $938.2 million in the third quarter of the prior year. On an adjusted basis, SG&A was 37.5% of Net sales, which deleveraged 166 basis points compared with the third quarter of 2021. This was primarily driven by inflation in store labor, medical and fuel costs.
On a GAAP basis, the company's Operating income was $177.2 million, or 6.7% of Net sales, compared with 8.7% in the third quarter of 2021. The company's Adjusted operating income was $258.0 million, a decrease of 5.8% versus the third quarter of the prior year. Adjusted operating income margin decreased 68 basis points to 9.8% of Net sales compared with 10.4% of Net sales in the third quarter of the prior year.
The company's effective tax rate was 24.7%, compared with 23.7% in the third quarter of 2021. On a GAAP basis, the company's Diluted EPS was $1.84, a decrease of 31.3% from $2.68 in the third quarter of 2021. The company's Adjusted Diluted EPS was $2.84, a decrease of 11.5% from $3.21 in the third quarter of the prior year. On both a GAAP and adjusted basis, the company’s diluted EPS was negatively affected by approximately $0.20 as a result of foreign currency impact in the quarter.
Net cash provided by operating activities was $483.1 million through the third quarter of 2022 versus $924.9 million in the same period of the prior year. The decrease was primarily driven by lower Net income and working capital. Free cash flow through the third quarter of 2022 was $149.5 million compared with $734.0 million in the same period of the prior year.
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(1) All comparisons are based on the same time period in the prior year.
(2) Comparable store sales include locations open for 13 complete accounting periods and excludes sales to independently owned Carquest locations.
(3) For a better understanding of the company's adjusted results, refer to the reconciliation of non-GAAP adjustments in the accompanying financial tables included herein.
Capital Allocation
During the third quarter of 2022, the company repurchased 0.4 million shares of its common stock at an aggregate cost of $75.0 million, or an average price of $168.93 per share, in connection with its share repurchase program. At the end of the third quarter of 2022, the company had $1.0 billion remaining under the share repurchase program.
On November 7, 2022, the company declared a regular cash dividend of $1.50 per share to be paid on January 3, 2023 to all common stockholders of record as of December 16, 2022.
Full Year 2022 Guidance
Jeff Shepherd, executive vice president and chief financial officer, commented, “As we begin the final quarter of 2022, we’re reiterating our full year guidance for net sales growth, comparable store sales and adjusted operating income margin expansion. In addition, we’re updating our adjusted diluted EPS guidance range to reflect the impact of foreign currency. Finally, getting more parts closer to our customers is a top priority. Therefore, we’re making strategic inventory investments to improve our availability, which is an important step to accelerate growth in 2023. Inventory is the primary driver of our reduced free cash flow guidance.”
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By Counterman
First Brands Group has released a new Raybestos product online catalog that will be available on a USB drive for those attending the AAPEX in Las Vegas.
In addition, Raybestos has released 32 new part numbers covering more than 11 million vehicles in operation (VIO). New brake-pad coverage is available for late-model passenger and transport vehicles, including the Buick Enclave, Cadillac CT4 and CT5, Ford F-150 and Mercedes-Benz Sprinter.
“We look forward to participating in Joe’s Garage at AAPEX this year and having the opportunity to talk with show attendees about our updated Raybestos catalog and the new coverage that’s been added to ensure that we are continuously meeting the needs of our customers,” said Lou Kafantaris, director of marketing, braking, First Brands Group. “Be sure your AAPEX plans include a visit to our Booth A3638 and stop by Joe’s Garage to be one of the first to get a copy of the new catalog.”
Raybestos representatives also will be conducting onsite technical and product training at the Joe’s Garage booth. Brake-clinic topics include “Today’s Rotor Technology,” “Preventing Costly Brake Comebacks” and “Tips and Tricks Diagnosing Brake Issues,” to name a few.
Product training sessions include “Pick the Right Friction for Your Vehicle” and “Rotors – the Foundation Brake Component.” The brake clinics run 30 minutes in length while the training sessions are 10 minutes. Visit Raybestos in Joe’s Garage to see the complete training schedule.
First Brands Group will exhibit at AAPEX in the Venetian Expo, Level 2, booth A3638 and in Joe’s Garage, Level 1, Bay 1. To obtain the Raybestos USB drive, visit First Brands Group in Joe’s Garage.
The complete family of Raybestos brake products include disc pads and shoes, drums and rotors, master cylinders, wheel cylinders, calipers, hoses and hardware. To learn more about new part numbers and their applications, customers should contact their First Brands Group representative.
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