GOOD NEWS! AutoZone Same Store Sales UP

MEMPHIS -- AutoZone has announced that sales for the fourth fiscal quarter ended Aug. 25, 2001, increased 10 percent to $1.64 billion from the $1.49 billion reported for the year-ago quarter. Same-store sales, or sales for domestic auto parts stores open at least one year, increased 8 percent during the quarter.

Steve Odland, chairman, president and CEO, said he is pleased with the progress AutoZone made in the second half of its fiscal year. "This is just the beginning of what we can do," Odland asserted. "We intend to continue to build shareholder value over time through same-store sales growth, tight expense controls and effective capital management."

Before non-recurring charges, AutoZone's fourth quarter per-share earnings of $1.07 were in line with Wall Street expectations and were able to beat out per-share earnings of $0.84 for last year's fourth quarter. But, the auto parts retailer recorded non-recurring charges in the 2001 fourth quarter of $92.6 million, after tax, or $0.83 per share. This reduced AutoZone's per-share earnings to $0.24. These charges include $68.4 million relating to asset write-downs -- including the anticipated loss on the sale of TruckPro -- and the accrual of lease obligations, primarily related to store closings and projects under development that do not meet AutoZone's financial return criteria. An additional $5.8 million includes the accrual of severance agreements and costs related to the termination of various contracts. Cost of goods sold includes non-recurring charges of $18.4 million, net of tax, relating to excess or discontinued merchandise.

For the year, AutoZone reported diluted earnings per share of $2.38, before non-recurring charges, which represents an increase of 19 percent from the $2.00 reported in fiscal 2000.

For the year, total non-recurring charges were $95.8 million, or $0.84 per share. This reduced AutoZone's per-share earnings to $1.54. Annually, sales rose 7 percent to $4.82 billion from $4.48 billion in the prior year, while same store sales increased 4 percent.

For the year, AutoZone opened 107 new auto parts stores in the United States, replaced 16 and closed three. In addition, eight new auto parts stores were opened in Mexico. As of Aug. 25, 2001, AutoZone has 3,019 U.S. stores in 42 states plus the District of Columbia.