AutoZone Announces 1st Qtr Net Income
9 December 1997
AutoZone's 1st Qtr Net Income Up 25%; EPS Up 24% To 31 cents vs. 25 cents; Sales Up 19%; Comparable Store Sales Increase 7%
MEMPHIS, Dec. 8 -- John C. Adams Jr., chairman and chief
executive officer of AutoZone Inc. , announced AutoZone's net
income for its fiscal first quarter ended November 22, 1997, increased 25% to
$47.5 million from $38.0 million in the year-ago quarter. Earnings per share
increased 24% to 31 cents from 25 cents a year earlier.
Sales for the quarter increased 19% to $675.3 million from $569.1 million
in the prior year's quarter. Comparable store sales, or sales at stores open
prior to the start of fiscal 1997, rose 7%.
"We're off to a good start in fiscal 1998," Mr. Adams said. "Our ability
to increase profits at a faster rate than sales in the quarter demonstrates
that our efforts to leverage expenses as we grow are paying off." In addition
to a continued focus on managing expenses, Mr. Adams attributed the quarter's
results to strong sales in AutoZone's core do-it-yourself business, improving
sales and profitability in its commercial sales program and improvements in
inventory performance.
AutoZone's commercial sales program, which offers delivery and credit to
automotive repair shops, turned profitable in the third quarter of fiscal 1997
after experiencing start-up losses in the second half of fiscal 1996 and the
first half of fiscal 1997.
During the quarter, AutoZone opened 44 new stores and two replacement
stores toward its goal of opening 350 net new stores in fiscal 1998, Mr. Adams
said. AutoZone sells auto parts, chemicals and accessories through its chain
of 1,772 stores in 32 states.
Certain statements contained in this press release are forward-looking
statements. These statements discuss, among other things, expected growth,
store development and expansion strategy, business strategies, future revenues
and future performance. The forward-looking statements are subject to risks,
uncertainties and assumptions including, but not limited to, competitive
pressures, demand for the company's products, the market for auto parts, the
economy in general, inflation, consumer debt levels and the weather. Actual
results may materially differ from anticipated results described in these
forward-looking statements.
AUTOZONE FISCAL 1ST QUARTER FINANCIAL HIGHLIGHTS
(In Thousands, Except Per-Share Data)
12 Weeks Ended 12 Weeks Ended
November 22, 1997 November 23, 1996
Net sales $675,274 $569,145
Gross profit $280,441 $240,298
Operating profit $78,648 $61,898
Income before income taxes $76,146 $60,725
Net income $47,546 $37,975
Net income per share $0.31 $0.25
Average number of common and
common equivalent shares 153,823 152,394
SOURCE AutoZone Inc.
