AutoZone's 4th Qtr Net Income Up 21%; EPS Up 20% To 53 Cents Vs. 44 Cents; FY 1997 Net Income Up 17%; EPS Up 15% To $1.28 Vs. $1.11
29 September 1997
AutoZone's 4th Qtr Net Income Up 21%; EPS Up 20% To 53 Cents Vs. 44 Cents; FY 1997 Net Income Up 17%; EPS Up 15% To $1.28 Vs. $1.11
MEMPHIS, Tenn., Sept. 29 -- Johnston C. Adams Jr., chairman
and chief executive officer of AutoZone Inc. , announced AutoZone's
net income for its fiscal fourth quarter ended August 30, 1997, increased
21% to $81.5 million from $67.4 million in the year-ago quarter. Earnings per
share increased 20% to 53 cents from 44 cents a year earlier.
Fiscal 1997's fourth quarter included 16 weeks, compared to 17 weeks in
the fourth quarter of fiscal 1996.
Sales for the 16-week quarter increased 14% to $946.4 million from
$829.6 million in the prior year's 17-week quarter. Comparable store sales,
or sales at stores open prior to the start of fiscal 1996, rose 8% on a
comparable 16-week basis.
"Posting a 21% earnings gain, despite one less week and 150 net new store
openings in the quarter, demonstrates how strongly we finished the year,"
Mr. Adams said. He attributed the results to strengthening sales in
AutoZone's core do-it-yourself business, improving profitability in its
commercial sales program, and continued focus on controlling expenses and
inventories.
AutoZone's commercial sales program, which offers delivery and credit to
automotive repair shops, turned profitable in the third quarter after
experiencing start-up losses in the second half of fiscal 1996 and the first
half of fiscal 1997.
For fiscal 1997, net income increased 17% to $195.0 million from
$167.2 million a year earlier. Earnings per share rose 15% to $1.28 from
$1.11 in the prior year. Fiscal 1997 included 52 weeks, compared to 53 weeks
in fiscal 1996.
Sales for the 52-week fiscal year rose 20% to $2.69 billion from
$2.24 billion in the prior year's 53-week period. Comparable store sales rose
8% on a comparable 52-week basis.
AutoZone plans to open 350 new stores in fiscal 1998, Mr. Adams said. As
previously reported, AutoZone opened 305 net new stores during fiscal 1997,
including 150 net new stores during the fourth quarter. During the year,
AutoZone expanded into five new states: California, Iowa, Maryland, Nevada and
New York.
AutoZone sells auto parts, chemicals and accessories through its chain of
1,728 stores in 32 states.
Certain statements contained in this release which are not historical
facts are forward-looking statements that involve risks, uncertainties, and
assumptions including, but not limited to, the activities of our competitors,
demand for our products, the success of our do-it-yourself (DIY) and
commercial programs, the market for auto parts, the economy in general and the
weather. In light of these risks, uncertainties and assumptions, there can be
no assurance that any forward-looking statement made herein will in fact be
realized.
AUTOZONE FISCAL 4TH QUARTER FINANCIAL HIGHLIGHTS
(In Thousands, Except Per-Share Data)
16 Weeks Ended 17 Weeks Ended
August 30, 1997 August 31, 1996
Net sales $946,388 $829,591
Gross profit $395,915 $350,211
Operating profit $133,461 $109,681
Income before income taxes $130,573 $108,439
Net income $ 81,523 $ 67,439
Net income per share $ 0.53 $ 0.44
Average number of common and
common equivalent shares 152,891 152,889
52 Weeks Ended 53 Weeks Ended
August 30, 1997 August 31, 1996
Net sales $2,691,440 $2,242,633
Gross profit $1,132,144 $ 934,995
Operating profit $ 321,351 $ 268,934
Income before income taxes $ 312,508 $ 266,965
Net income $ 195,008 $ 167,165
Net income per share $ 1.28 $ 1.11
Average number of common and
common equivalent shares 152,535 151,238
SOURCE AutoZone Inc.