Advance Auto Parts Advances

ROANOKE, Va.--Advance Auto Parts is reporting record sales and operating income. The company’s strong financial results reflect continued growth in both do- it-yourself (DIY) and do-it-for-me (DIFM) segments and benefits from its previous acquisition of Western Auto .

With 1,701 stores in 37 states--primarily in the eastern and midwestern regions of the United States, Puerto Rico and the Virgin Islands--it is the second largest auto parts chain in the nation.

“Our sales and earnings have shown strong growth, and we continue to take steps to strengthen our presence in existing markets and streamline our operations,” said Larry Castellani, chief executive officer. “During the (past) nine-month period, the company opened 106 new stores and closed 21 existing locations,” he reported. “We have also begun to clearly see the planned benefits from the Western Auto acquisition and look forward to continuing to build on the strong foundation that we have put in place.”

Sales for the twelve-week period that ended Oct. 7 were $552.1 million, compared to $522.8 million reported last year. Retail sales, which rose 7.7 percent to $523.2 million from $485.8 million a year ago, were partially offset by sales declines in the wholesale business. Comparable store sales increased 4. percent for the fiscal 2000 third quarter over a strong 8.6 precent comparable store sales increase in the prior-year period. Both the DIY and DIFM businesses showed continued sales growth.

Operating income in the third quarter of 2000 rose substantially to $30.1 million from $14.9 million a year ago. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 17.5 percent to $46.3 million in the third quarter of 2000 from $39.4 million, as adjusted for integration expense, in the 1999 period. “This increase resulted primarily from the continued growth in retail sales and the improved gross margins achieved as a result of the Western Auto acquisition,” he said. Net income was $12.4 million for the 2000 third quarter, compared to $0.2 million reported in the third quarter last year. The third quarter net results include a $2.9 million gain from the buyback of about $30.6 million of the company’s senior subordinated notes.

On Sept. 1 the company’s e-commerce partner, PartsAmerica.com (http://www.partsamerica.com) launched its site. On Oct. 30, the company announced it had joined GlobalNetXchange (GNX), a global business-to-business retail on-line marketplace open to all retailers and suppliers.

Sales for the first three quarters of 2000 were $1.8 billion, flat with the prior-year period. Retail sales in the nine-month period rose 6.9 percent. Operating income was $81.5 million compared to $12.0 million lastyear. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 44.2 percent to $132.7 million for the nine-month period from $92 million, as adjusted for integration expense, in the comparable period of 1999. Net income was $21.9 million, reversing a loss of $22.7 million in the nine-month period of 1999.

For more information, contact www.advanceautoparts.com.