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AutoZone 3rd Quarter Same Store Sales Increase 1.9%; EPS Increases to $34.12
来源: Nasdaq GlobeNewswire / 23 5月 2023 05:55:45 America/Chicago
MEMPHIS, Tenn., May 23, 2023 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO) today reported net sales of $4.1 billion for its third quarter (12 weeks) ended May 6, 2023, an increase of 5.8% from the third quarter of fiscal 2022 (12 weeks). Domestic same store sales, or sales for stores open at least one year, increased 1.9% for the quarter.
“I would like to congratulate and thank our entire organization for delivering solid earnings in our third fiscal quarter. The hard work of our AutoZoners and their dedication to providing superior customer service, again drove our quarterly performance. While weaker than expected sales for the month of March meaningfully affected our results this quarter, we are excited about our initiatives and believe we are well positioned for future growth,” said Bill Rhodes, Chairman, President and Chief Executive Officer.
For the quarter, gross profit, as a percentage of sales, was 52.5%, an increase of 56 basis points versus the prior year. The increase in gross margin was impacted by a 42 basis point ($17 million) non-cash LIFO benefit, with the remaining leverage primarily from higher merchandise margins. Operating expenses, as a percentage of sales, were 31.5% versus last year at 31.6%.
Operating profit increased 9.3% to $858.5 million. Net income for the quarter increased 9.3% over the same period last year to $647.7 million, while diluted earnings per share increased 17.5% to $34.12 from $29.03 in the year-ago quarter.
Under its share repurchase program, AutoZone repurchased 356 thousand shares of its common stock for $908.2 million during the third quarter, at an average price of $2,551 per share. At the end of the third quarter, the Company had $843.6 million remaining under its current share repurchase authorization.
The Company’s inventory increased 7.4% over the same period last year, driven by inflation and its growth initiatives. Net inventory, defined as merchandise inventories less accounts payable, on a per store basis, was negative $215 thousand versus negative $216 thousand last year and negative $227 thousand last quarter.
During the quarter ended May 6, 2023, AutoZone opened 22 new stores in the U.S., six in Mexico and two in Brazil. As of May 6, 2023, the Company had 6,248 stores in the U.S., 713 in Mexico and 83 in Brazil for a total store count of 7,044.
AutoZone is the leading retailer and distributor of automotive replacement parts and accessories in the Americas. Each store carries an extensive product line for cars, sport utility vehicles, vans and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. Many stores also have a commercial sales program that provides commercial credit and prompt delivery of parts and other products to local, regional and national repair garages, dealers, service stations and public sector accounts. We also have commercial programs in the majority of our stores in Mexico and Brazil. AutoZone also sells the ALLDATA brand automotive diagnostic, repair and shop management software through www.alldata.com. Additionally, we sell automotive hard parts, maintenance items, accessories and non-automotive products through www.autozone.com, and our commercial customers can make purchases through www.autozonepro.com. We also provide product information on our Duralast branded products through www.duralastparts.com. AutoZone does not derive revenue from automotive repair or installation services.AutoZone will host a conference call this morning, Tuesday, May 23, 2023, beginning at 10:00 a.m. (ET) to discuss its third quarter results. This call is being web cast and can be accessed, along with supporting slides, at AutoZone’s website at www.autozone.com and clicking on Investor Relations. Investors may also listen to the call by dialing (888) 506-0062, passcode AUTOZONE. In addition, a telephone replay will be available by dialing (877) 481-4010, replay passcode 48303 through June 6, 2023.
This release includes certain financial information not derived in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP measures include adjustments to reflect return on invested capital, adjusted debt and adjusted debt to EBITDAR. The Company believes that the presentation of these non-GAAP measures provides information that is useful to investors as it indicates more clearly the Company’s comparative year-to-year operating results, but this information should not be considered a substitute for any measures derived in accordance with GAAP. Management targets the Company’s capital structure in order to maintain its investment grade credit ratings. The Company believes this is important information for the management of its debt levels and share repurchases. We have included a reconciliation of this additional information to the most comparable GAAP measures in the accompanying reconciliation tables.
Certain statements contained herein constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically use words such as “believe,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy,” “seek,” “may,” “could” and similar expressions. These are based on assumptions and assessments made by our management in light of experience and perception of historical trends, current conditions, expected future developments and other factors that we believe to be appropriate. These forward-looking statements are subject to a number of risks and uncertainties, including without limitation: product demand, due to changes in fuel prices, miles driven or otherwise; energy prices; weather, including extreme temperatures, natural disasters and general weather conditions; competition; credit market conditions; cash flows; access to available and feasible financing; future stock repurchases; the impact of recessionary conditions; consumer debt levels; changes in laws or regulations; risks associated with self-insurance; war and the prospect of war, including terrorist activity; the impact of public health issues; inflation, including wage inflation; the ability to hire, train and retain qualified employees; construction delays; failure or interruption of our information technology systems; issues relating to the confidentiality, integrity or availability of information, including due to cyber-attacks; historic growth rate sustainability; downgrade of our credit ratings; damage to our reputation; challenges associated with doing business and expanding into international markets; origin and raw material costs of suppliers; inventory availability; disruption in our supply chain; impact of tariffs; impact of new accounting standards; our ability to execute our growth initiatives; and other business interruptions. Certain of these risks and uncertainties are discussed in more detail in the “Risk Factors” section contained in Item 1A under Part 1 of the Company’s Annual Report on Form 10-K for the year ended August 27, 2022, and Part II, Item 1A, of our Quarterly Report on Form 10-Q for the quarterly period ended November 19, 2022. These Risk Factors should be read carefully. Forward-looking statements are not guarantees of future performance and actual results, developments and business decisions may differ from those contemplated by such forward-looking statements. Events described above and in the “Risk Factors” could materially and adversely affect our business. However, it should be understood that it is not possible to identify or predict all such risks and other factors that could affect these forward-looking statements. Forward-looking statements speak only as of the date made. Except as required by applicable law, we undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact Information:
Financial: Brian Campbell at (901) 495-7005, brian.campbell@autozone.com
Media: David McKinney at (901) 495-7951, david.mckinney@autozone.comAutoZone's 3rd Quarter Highlights - Fiscal 2023 Condensed Consolidated Statements of Operations 3rd Quarter, FY2023 (in thousands, except per share data) GAAP Results 12 Weeks Ended 12 Weeks Ended May 6, 2023 May 7, 2022 Net sales $ 4,090,541 $ 3,865,222 Cost of sales 1,944,415 1,858,808 Gross profit 2,146,126 2,006,414 Operating, SG&A expenses 1,287,645 1,220,744 Operating profit (EBIT) 858,481 785,670 Interest expense, net 74,313 41,888 Income before taxes 784,168 743,782 Income tax expense 136,445 151,211 Net income $ 647,723 $ 592,571 Net income per share: Basic $ 35.22 $ 29.93 Diluted $ 34.12 $ 29.03 Weighted average shares outstanding: Basic 18,389 19,798 Diluted 18,983 20,414 Year-To-Date 3rd Quarter, FY2023 (in thousands, except per share data) GAAP Results 36 Weeks Ended 36 Weeks Ended May 6, 2023 May 7, 2022 Net sales $ 11,766,591 $ 10,903,875 Cost of sales 5,695,840 5,187,075 Gross profit 6,070,751 5,716,800 Operating, SG&A expenses 3,819,261 3,549,885 Operating profit (EBIT) 2,251,490 2,166,915 Interest expense, net 197,645 127,642 Income before taxes 2,053,845 2,039,273 Income tax expense 390,260 419,712 Net income $ 1,663,585 $ 1,619,561 Net income per share: Basic $ 88.96 $ 79.26 Diluted $ 86.10 $ 76.90 Weighted average shares outstanding: Basic 18,700 20,433 Diluted 19,322 21,060 Selected Balance Sheet Information (in thousands) May 6, 2023 May 7, 2022 August 27, 2022 Cash and cash equivalents $ 274,916 $ 263,044 $ 264,380 Merchandise inventories 5,703,688 5,313,114 5,638,004 Current assets 6,708,872 6,254,721 6,627,984 Property and equipment, net 5,334,023 4,971,626 5,170,419 Operating lease right-of-use assets 2,959,488 2,764,631 2,918,817 Total assets 15,597,922 14,520,565 15,275,043 Accounts payable 7,215,566 6,793,205 7,301,347 Current liabilities 8,464,947 8,064,076 8,588,393 Operating lease liabilities, less current portion 2,862,152 2,659,535 2,837,973 Total debt 7,340,484 6,057,444 6,122,092 Stockholders' deficit (4,301,577 ) (3,387,230 ) (3,538,913 ) Working capital (1,756,075 ) (1,809,355 ) (1,960,409 ) AutoZone's 3rd Quarter Highlights - Fiscal 2023 Condensed Consolidated Statements of Operations Adjusted Debt / EBITDAR (in thousands, except adjusted debt to EBITDAR ratio) Trailing 4 Quarters May 6, 2023 May 7, 2022 Net income $ 2,473,628 $ 2,405,332 Add: Interest expense 261,641 185,762 Income tax expense 620,035 619,851 EBIT 3,355,304 3,210,945 Add: Depreciation and amortization 479,945 431,004 Rent expense(1) 403,412 360,076 Share-based expense 83,943 67,109 EBITDAR $ 4,322,604 $ 4,069,134 Debt $ 7,340,484 $ 6,057,444 Financing lease liabilities 284,896 288,483 Add: Rent x 6(1) 2,420,472 2,160,456 Adjusted debt $ 10,045,852 $ 8,506,383 Adjusted debt to EBITDAR 2.3 2.1 Adjusted Return on Invested Capital (ROIC) (in thousands, except ROIC) Trailing 4 Quarters May 6, 2023 May 7, 2022 Net income $ 2,473,628 $ 2,405,332 Adjustments: Interest expense 261,641 185,762 Rent expense(1) 403,412 360,076 Tax effect(2) (133,010 ) (111,896 ) Adjusted after-tax return $ 3,005,671 $ 2,839,274 Average debt(3) $ 6,578,133 $ 5,541,462 Average stockholders' deficit(3) (3,849,963 ) (2,442,077 ) Add: Rent x 6(1) 2,420,472 2,160,456 Average financing lease liabilities(3) 296,772 268,111 Invested capital $ 5,445,414 $ 5,527,952 Adjusted After-Tax ROIC 55.2 % 51.4 % (1)The table below outlines the calculation of rent expense and reconciles rent expense to total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the trailing four quarters ended May 6, 2023 and May 7, 2022 Trailing 4 Quarters (in thousands) May 6, 2023 May 7, 2022 Total lease cost, per ASC 842 $ 513,857 $ 451,601 Less: Financing lease interest and amortization (81,871 ) (65,128 ) Less: Variable operating lease components, related to insurance and common area maintenance (28,574 ) (26,397 ) Rent expense $ 403,412 $ 360,076 (2)Effective tax rate over trailing four quarters ended May 6, 2023 and May 7, 2022 was 20.0% and 20.5%, respectively (3)All averages are computed based on trailing five quarter balances Other Selected Financial Information (in thousands) May 6, 2023 May 7, 2022 Cumulative share repurchases ($ since fiscal 1998) $ 32,806,437 $ 29,092,425 Remaining share repurchase authorization ($) 843,563 2,057,575 Cumulative share repurchases (shares since fiscal 1998) 153,629 152,035 Shares outstanding, end of quarter 18,225 19,576 12 Weeks Ended 12 Weeks Ended 36 Weeks Ended 36 Weeks Ended May 6, 2023 May 7, 2022 May 6, 2023 May 7, 2022 Depreciation and amortization $ 116,123 $ 102,083 $ 339,087 $ 301,365 Cash flow from operations 724,715 843,368 1,872,776 1,983,114 Capital spending 171,207 161,207 430,441 369,350
AutoZone's 3rd Quarter Highlights - Fiscal 2023 Condensed Consolidated Statements of Operations Selected Operating Highlights Store Count & Square Footage 12 Weeks Ended 12 Weeks Ended 36 Weeks Ended 36 Weeks Ended May 6, 2023 May 7, 2022 May 6, 2023 May 7, 2022 Domestic: Beginning stores 6,226 6,091 6,168 6,051 Stores opened 22 24 80 65 Stores closed - - - (1 ) Ending domestic stores 6,248 6,115 6,248 6,115 Relocated stores 1 4 5 8 Stores with commercial programs 5,526 5,276 5,526 5,276 Square footage (in thousands) 41,253 40,230 41,253 40,230 Mexico: Beginning stores 707 669 703 664 Stores opened 6 4 10 9 Ending Mexico stores 713 673 713 673 Brazil: Beginning stores 81 55 72 52 Stores opened 2 3 11 6 Ending Brazil stores 83 58 83 58 Total 7,044 6,846 7,044 6,846 Square footage (in thousands) 47,191 45,680 47,191 45,680 Square footage per store 6,699 6,673 6,699 6,673 Sales Statistics ($ in thousands, except sales per average square foot) 12 Weeks Ended 12 Weeks Ended Trailing 4 Quarters Trailing 4 Quarters Total AutoZone Stores (Domestic, Mexico and Brazil) May 6, 2023 May 7, 2022 May 6, 2023 May 7, 2022 Sales per average store $ 571 $ 556 $ 2,421 $ 2,301 Sales per average square foot $ 85 $ 83 $ 362 $ 346 Total Auto Parts (Domestic, Mexico and Brazil) Total auto parts sales $ 4,016,692 $ 3,795,290 $ 16,811,885 $ 15,537,156 % Increase vs. LY 5.8 % 5.7 % 8.2 % 10.8 % Domestic Commercial Total domestic commercial sales $ 1,110,476 $ 1,044,293 $ 4,541,729 $ 3,970,727 % Increase vs. LY 6.3 % 26.0 % 14.4 % 26.5 % Average sales per program per week $ 16.8 $ 16.6 $ 16.2 $ 14.7 % Increase vs. LY 1.2 % 23.0 % 10.2 % 22.5 % All Other, including ALLDATA All other sales $ 73,849 $ 69,932 $ 303,061 $ 280,203 % Increase vs. LY 5.6 % 15.1 % 8.2 % 18.0 % 12 Weeks Ended 12 Weeks Ended 36 Weeks Ended 36 Weeks Ended May 6, 2023 May 7, 2022 May 6, 2023 May 7, 2022 Domestic same store sales 1.9 % 2.6 % 4.2 % 9.5 % Inventory Statistics (Total Stores) as of as of May 6, 2023 May 7, 2022 Accounts payable/inventory 126.5 % 127.9 % ($ in thousands) Inventory $ 5,703,688 $ 5,313,114 Inventory per store 810 776 Net inventory (net of payables) (1,511,878 ) (1,480,091 ) Net inventory/per store (215 ) (216 ) Trailing 5 Quarters May 6, 2023 May 7, 2022 Inventory turns 1.5 x 1.5 x 
