AutoZone Announces Q2 Results
4 March 1998
AutoZone's 2nd Quarter Net Income Up 17%; EPS Up 16% To $.22 vs. $.19; 52 New Stores Open In Quarter
MEMPHIS, Tenn., March 3 -- AutoZone, Inc. , today
reported net income for the 12 weeks ended February 14, 1998, of $34.4
million, an increase of 17% from $29.4 million for the fiscal second quarter
of 1997. Diluted earnings per share increased 16% to 22 cents from 19 cents.
Sales for the quarter rose 13% to $607.1 million from $538.0 million a year
earlier. Comparable store sales, or sales of stores opened prior to the start
of fiscal 1997, rose 2%.
On a year-to-date basis, AutoZone reported net income for the 24 weeks
ended February 14, 1998, of $81.9 million, an increase of 22% from $67.4
million for the year earlier period. Diluted earnings per share increased 20%
to 53 cents from 44 cents. Sales for the 24 weeks rose 16% to $1.28 billion
from $1.11 billion a year earlier. Comparable store sales rose 5%.
"The weather was tough on sales this quarter, but we think 5% comparable
store sales on a year-to-date basis following an 8% prior year is still good
performance. We continue to show good leverage on expenses and are
particularly pleased with our successful inventory management," said John C.
Adams Jr., AutoZone's chairman and chief executive officer. "Inventories are
only up 8% from the prior year."
On February 17, AutoZone successfully completed its acquisition of Auto
Palace. "Less than 1O days after completing the purchase of 112 Auto Palace
stores, we had installed our parts lookup and warranty systems in every store.
Most importantly, the new AutoZoners have embraced our culture with
enthusiasm."
Yesterday AutoZone announced it will enter the heavy-duty truck parts
industry with its plans to acquire Little Rock, AR based TruckPro, L.P.
TruckPro is a leader in the industry with 43 stores.
During the second quarter, AutoZone opened 52 new stores and one
replacement store. For the 24 weeks, AutoZone opened 96 new stores and 3
replacement stores.
AutoZone sells auto and light truck parts, chemicals and accessories.
AutoZone ended the quarter with 1,824 retail stores in 33 states. Upon
completion of the Auto Palace acquisition, the company operated 1,936 stores
in 38 states.
Certain statements contained in this 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 2ND QUARTER FINANCIAL HIGHLIGHTS
(In Thousands, Except Per-Share Data)
12 Weeks Ended 12 Weeks Ended
February 14, 1998 February 15, 1997
Net Sales $607,097 $538,012
Gross profit $253,681 $226,956
Operating profit $58,082 $49,217
Income before
income taxes $55,054 $47,107
Net income $34,354 $29,407
Net income per share:
Basic $0.23 $0.20
Diluted $0.22 $O.19
Average number of
common and common
equivalent shares 153,701 152,251
24 Weeks Ended 24 Weeks Ended
February 14, 1998 February 15, 1997
Net sales $1,282,371 $1,107,157
Gross profit $534,122 $467,254
Operating profit $136,730 $111,115
Income before
income taxes $131,200 $107,832
Net income $81,900 $67,382
Net income per share:
Basic $0.54 $0.45
Diluted $0.53 $0.44
Average number of
common and common
equivalent shares 153,762 152,264
SOURCE AutoZone Inc.