AutoZone's 2nd Quarter EPS up 17%
1 March 2000
AutoZone's 2nd Quarter EPS up 17%; Sales up 8%; Domestic Auto Parts Comparable Store Sales up 4%; Additional Stock Repurchase Approved
MEMPHIS, Tenn., Feb. 29 -- AutoZone, Inc. , today
reported diluted earnings per share of $.28 for its second fiscal quarter
ended February 12, 2000, up 17% from $.24 per share for the prior year quarter
ended February 13, 1999. Net income for the quarter was $39.1 million, an
increase of 8% from $36.0 million in the prior year quarter. Sales were
$924 million, an increase of 8% over sales of $853 million in fiscal 1999,
when the company reported a 40% sales increase resulting from very strong
comparable store sales in the core AutoZone stores and the first year of
second quarter sales reported for the acquired stores. Comparable store sales
for the quarter, on a rolling 12 month basis, rose 4% in its domestic auto
parts stores compared to 9% in the prior year quarter. Comparable store sales
at core AutoZone stores were flat compared to 9% in the prior year, while
comparable store sales rose 15% at former Auto Palace stores and 36% at former
Chief stores. On a static basis, which includes sales at stores opened prior
to the start of fiscal 1999, comparable store sales rose 3%, compared to 8% in
the prior year.
On a year-to-date basis, diluted earnings per share for the 24-week period
increased 17% to $.68 from $.58. Year-to-date net income increased 9% to
$95.1 million compared to $87.3 million in 1999. Year-to-date sales rose 10%
to $1.93 billion from $1.75 billion in the prior year. Year-to-date comparable
store sales, on a rolling 12 month basis, increased 6% in fiscal 2000 and
1999. Comparable store sales at core AutoZone stores increased 3%, while
comparable store sales rose 21% at former Auto Palace stores and 30% at former
Chief stores. On a static basis, comparable store sales rose 5% in both
years.
"We are pleased with our results for the quarter and the first half of the
year," said John C. Adams Jr., chairman and chief executive officer. "We've
gained significant momentum in the first half of the year that should position
us very nicely for a strong second half."
During the quarter, AutoZone opened 41 new and replaced 3 auto parts
stores in the US and opened 3 stores in Mexico. For the year, AutoZone has
opened 128 new auto parts stores in the US and 5 in Mexico, replaced 16
stores, and closed 2 former Chief stores. In addition, AutoZone opened 1 new
and 2 replacement TruckPro stores during the quarter, for year-to-date totals
of 1 new store and 3 replacements.
The AutoZone board of directors approved the repurchase of up to an
additional $200 million of the company's common stock in the open market,
bringing the total repurchase authorization to $1 billion. Aggregate share
repurchases under the repurchase program at the end of the quarter total
$629 million and 23.4 million shares including $146 million and 5.2 million
shares under forward purchase contracts.
AutoZone sells auto and light truck parts, chemicals and accessories
through 2,837 AutoZone stores in 40 states in the U.S. plus the District of
Columbia and 11 AutoZone stores in Mexico. AutoZone also sells heavy-duty
truck parts through 47 TruckPro stores in 14 states, and automotive diagnostic
and repair software through ALLDATA and diagnostic and repair information
through alldatadiy.com .
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,
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 28, 1999 for more details.
AUTOZONE FISCAL 2nd QUARTER FINANCIAL HIGHLIGHTS
(In Thousands, Except Per-Share Data)
12 Weeks Ended 12 Weeks Ended
February 12, 2000 February 13, 1999
Net Sales $924,164 $852,538
Gross profit $388,427 $353,493
Operating profit $80,013 $67,273
Income before income taxes $63,561 $57,039
Net income $39,061 $36,039
Net income per share:
Basic $0.28 $0.24
Diluted $0.28 $0.24
Weighted average shares:
Basic 138,056 149,929
Diluted 139,085 151,669
24 Weeks Ended 24 Weeks Ended
February 12, 2000 February 13, 1999
Net Sales $1,930,636 $1,753,487
Gross profit $809,943 $729,975
Operating profit $185,761 $157,088
Income before income taxes $154,705 $138,339
Net income $ 95,105 $ 87,339
Net income per share:
Basic $0.69 $0.58
Diluted $0.68 $0.58
Weighted average shares:
Basic 138,659 150,345
Diluted 139,570 151,619