Advance Auto Parts Reports Q2 Results
25 August 2000
ROANOKE, Va. - Advance Auto Parts today announced record sales and operating income for the second quarter ended July 15, 2000. The Company's strong financial results reflect continued growth in both "do-it-yourself" (DIY) and "do-it-for-me" (DIFM) segments and the realization of benefits from the Western Auto acquisition. Sales for the twelve-week period were $557.7 million compared to the $542.3 million reported last year. Retail sales, which rose 6.6% to $525.2 million from $492.7 million a year ago, were partially offset by sales declines in the wholesale business. Comparable store sales increased 3.0% for the fiscal 2000 second quarter over a strong 10.3% comparable store sales increase in the prior-year period. Both the do-it-yourself and do-it-for-me businesses showed continued sales growth. Operating income in the second quarter of 2000 rose substantially to $32.2 million from $14.1 million a year ago. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 36.4% to $47.7 million in the second quarter of 2000 compared to $35.0 million, as adjusted for integration expense, in 1999. This increase resulted primarily from the continued growth in retail sales and the improved gross margins achieved as a result of the Western Auto acquisition. Net income was $10.4 million for the second quarter of 2000, a nearly five-fold increase over the $2.1 million reported in the second quarter last year. Sales for the first two quarterssix of 2000 were $1.2 billion, approximately the level reported a year earlier. Retail sales in the two quarters rose 6.5%. Operating income was $51.4 million for the first half of 2000 compared to a loss of $2.9 million in the first half of 1999. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 64.3% to $86.4 million for the first two quarters of 2000 from $52.6 million, as adjusted for integration expense in 1999. Net income was $9.4 million for the first half of 2000, reversing a loss of $22.9 million in the first half of 1999. Larry Castellani, Chief Executive Officer, said "We are pleased that through our people's efforts we continue to show strong retail sales and profit growth. We look forward to continuing to build on the strong foundation that is in place." During the first two quarters of 2000, the Company opened 74 new stores in existing markets and closed 16. Advance Auto Parts is the primary trade name for Advance Stores Company, Incorporated, a wholly owned subsidiary of Advance Holding Corporation. Advance ended the second quarter with 1,674 stores in 38 states, primarily located in the eastern and midwestern regions of the United States, Puerto Rico and the Virgin Islands. The company is based in Roanoke, Va., and is the second largest auto parts chain in the nation.