AutoZone's 2nd Quarter Sales Up 40%; Same Store Sales Up 8%
3 March 1999
AutoZone's 2nd Quarter Sales Up 40%; Same Store Sales Up 8%
MEMPHIS, Tenn., March 2 -- AutoZone, Inc. , today
reported net income for the 12 weeks ended February 13, 1999, of $36.0
million, an increase of 5% from $34.4 million for the fiscal second quarter of
1998. Diluted earnings per share increased 9% to 24 cents from 22 cents.
Sales for the quarter rose 40% to $853 million from $607 million a year
earlier. Comparable store sales, or sales at stores opened prior to the start
of fiscal 1998, rose 8%, compared to 2% in the prior year.
On a year to date basis, AutoZone reported net income for the 24 weeks
ended February 13, 1999, of $87.3 million, an increase of 7% from $81.9
million for the year earlier period. Diluted earnings per share increased 9%
to 58 cents from 53 cents. Sales for the 24-week period rose 37% to $1.75
billion from $1.28 billion a year earlier. Comparable store sales rose 5% for
the year to date period in 1999 and 1998.
"We're very pleased that total sales grew 40% for the quarter," said John
C. Adams, chairman and chief executive officer. "This is a combination of
strong same store sales, a big contribution from acquired stores, improving
productivity in new AutoZone stores and growth in our commercial business.
We're particularly happy with the improvement in sales at the former Auto
Palace stores in New England, sales at the former Express locations acquired
from Pep Boys which are opened to date and the new AutoZone stores opened in
California.
"System conversions in the Chief stores are nearing completion and we're
making good progress in converting these stores to AutoZone stores. As of the
end of the second quarter, we had opened 54 of the store locations acquired
from Pep Boys, and we plan to open the remaining locations during the third
quarter. We should complete the Chief conversions by the fall."
During the quarter, AutoZone opened 82 new auto parts stores and replaced
22; 5 Chief stores were closed. In addition, AutoZone relocated 4 TruckPro
stores. For the 24-week period, AutoZone has opened 145 new auto parts
stores, replaced 25 and closed 102 Chief stores.
Also during the quarter, the company repurchased 829 thousand shares of
its common stock for $27 million, bringing the cumulative shares repurchased
to 3.9 million for $106 million.
AutoZone sells auto and light truck parts, chemicals and accessories
through 2,700 AutoZone and Chief stores in 39 states. Chief stores are being
converted to AutoZone stores. 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 press release are forward-looking
statements. These statements discuss, among other things, expected growth,
domestic and international development and expansion strategy, business
strategies and future performance. These forward-looking statements are
subject to risks, uncertainties and assumptions, including without limitation,
competition, product demand, domestic and international economies, government
approvals, inflation, the ability to hire and retain qualified employees, the
ability to convert acquired stores in a timely and profitable manner, consumer
debt levels and the weather. Actual results may materially differ from
anticipated results. Please refer to the Risk Factors section of Form 10-K for
the year ended August 29, 1998 for more details.
AUTOZONE FISCAL 2nd QUARTER FINANCIAL HIGHLIGHTS
(In Thousands, Except Per-Share Data)
12 Weeks Ended 12 Weeks Ended
February 13, 1999 February 14, 1998
Net sales $852,538 $607,097
Gross profit $353,493 $253,681
Operating profit $ 67,273 $ 58,082
Income before
income taxes $ 57,039 $ 55,054
Net income $ 36,039 $ 34,354
Net income per share:
Basic $ 0.24 $ 0.23
Diluted $ 0.24 $ 0.22
Weighted average shares:
Basic 149,929 152,061
Diluted 151,669 153,701
24 Weeks Ended 24 Weeks Ended
February 13, 1999 February 14, 1998
Net Sales $1,753,487 $1,282,371
Gross profit $ 729,975 $ 534,122
Operating profit $ 157,088 $ 136,730
Income before
income taxes $ 138,339 $ 131,200
Net income $ 87,339 $ 81,900
Net income per share:
Basic $ 0.58 $ 0.54
Diluted $ 0.58 $ 0.53
Weighted average shares:
Basic 150,345 151,879
Diluted 151,619 153,762