Auto Zone's Financial Position to Continue to Flourish
27 May 1998
AutoZone's 3rd Quarter Net Income And EPS Up 17%; 65 Net New Stores Open In Quarter; Two Acquisitions Completed
MEMPHIS, Tenn., May 26 -- AutoZone, Inc. , today
reported net income for the 12 weeks ended May 9, 1998, of $53.9 million, an
increase of 17% from $46.1 million for the fiscal third quarter of 1997.
Diluted earnings per share increased 17% to 35 cents from 30 cents. Sales for
the quarter also rose 17% to $744 million from $638 million a year earlier.
Comparable store sales, or sales at stores opened prior to the start of fiscal
1997, rose 2%.
On a year to date basis, AutoZone reported net income for the 36 weeks
ended May 9, 1998, of $135.8 million, an increase of 20% from $113.5 million
for the year earlier period. Diluted earnings per share increased 19% to 88
cents from 74 cents. Sales for the 36 week period rose 16% to $2.03 billion
from $1.75 billion a year earlier. Comparable store sales rose 4%.
"It has been an eventful quarter," said John C. Adams, Jr., chairman and
chief executive officer. "We completed the Auto Palace and TruckPro
acquisitions, opened our 2,000th AutoZone store and announced plans to acquire
Chief Auto Parts. Although weather related sales softness continued through
most of the quarter, expenses and inventories were closely managed."
"For the seasonally important fourth quarter, we expect TruckPro and the
former Auto Palace stores to be accretive to earnings." Mr. Adams added.
"We're also encouraged that the recent hot, dry weather throughout most of our
trade area has given a good start to this quarter's sales."
The company completed its acquisition of 112 Auto Palace stores on
February 17, establishing a strong presence in New England. May 1 marked the
company's entrance into the heavy-duty truck parts business with the
completion of its acquisition of TruckPro, which operates 43 stores in 14
states. In addition to these acquisitions, AutoZone opened 65 net new stores
and six replacement stores during the quarter. For the 36 weeks, AutoZone
opened 161 net new stores and nine replacement stores.
AutoZone sells auto and light truck parts, chemicals and accessories
through 2,001 stores in 38 states. AutoZone also sells heavy-duty truck parts
through 43 TruckPro stores in 14 states and automotive diagnostic and repair
software through ALLDATA.
Certain statements contained in this release are forward-looking
statements. They 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 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 3RD QUARTER FINANCIAL HIGHLIGHTS
(In Thousands, Except Per-Share Data)
12 Weeks Ended 12 Weeks Ended
May 9, 1998 May 10, 1997
Net Sales $743,661 $637,895
Gross profit $311,080 $268,975
Operating profit $90,457 $76,775
Income before
income taxes $86,240 $74,103
Net income $53,940 $46,103
Net income per share:
Basic $0.35 $0.31
Diluted $0.35 $0.30
Weighted average shares:
Basic 152,366 150,879
Diluted 154,324 152,602
36 Weeks Ended 36 Weeks Ended
May 9, 1998 May 10, 1997
Net sales $2,026,032 $1,745,052
Gross profit $845,202 $736,229
Operating profit $227,187 $187,890
Income before
income taxes $217,440 $181,935
Net income $135,840 $113,485
Net income per share:
Basic $0.89 $0.75
Diluted $0.88 $0.74
Weighted average shares:
Basic 152,042 150,548
Diluted 153,949 152,389