Advance Auto Parts Reports Record Third Quarter Results
16 November 2000
Advance Auto Parts Reports Record Third Quarter Results
ROANOKE, Va., Nov. 16 Advance Auto Parts today announced
record sales and operating income for the third quarter ended October 7, 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 $552.1 million compared to $522.8
million reported last year. Retail sales, which rose 7.7% to $523.2 million
from $485.8 million a year ago, were partially offset by sales declines in the
wholesale business. Comparable store sales increased 4.0% for the fiscal 2000
third quarter over a strong 8.6% 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 third quarter of 2000 rose substantially to $30.1
million from $14.9 million a year ago. Earnings before interest, taxes,
depreciation and amortization (EBITDA) increased 17.5% to $46.3 million in the
third quarter of 2000 from $39.4 million, as adjusted for integration expense,
in the 1999 period. 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 $12.4 million for the 2000 third
quarter, compared to $0.2 million reported in the third quarter last year.
The third quarter net results include a $2.9 million gain from the buy back of
approximately $30.6 million of the Company's Senior Subordinated Notes.
Two of the Company's key Internet initiatives were recently implemented.
On September 1, 2000, the Company's e-commerce partner, PartsAmerica.com
(http://www.partsamerica.com) launched its site. The site is expected to
become the leading on-line provider of auto parts and accessories for
consumers through direct shipment to their homes or by pickup and return to
over 2,800 stores. Additionally, on October 30, 2000, the Company announced
it had joined GlobalNetXchange (GNX), the leading operational global business-
to-business retail on-line marketplace open to all retailers and suppliers.
Sales for the first three quarters of 2000 were $1.8 billion,
approximately level with the prior-year period. Retail sales in the nine-
month period rose 6.9%. Operating income was $81.5 million compared to $12.0
million last year. Earnings before interest, taxes, depreciation and
amortization (EBITDA) increased 44.2% to $132.7 million for the nine-month
period from $92.0 million, as adjusted for integration expense, in the
comparable period of 1999. Net income was $21.9 million, reversing a loss of
$22.7 million in the nine-month period of 1999.
Larry Castellani, Chief Executive Officer, said: "We are pleased with our
performance for the first three quarters of 2000. Our sales and earnings have
shown strong growth, and we continue to take steps to strengthen our presence
in existing markets and streamline our operations. During the nine-month
period, the Company opened 106 new stores and closed 21 existing locations. We
have also begun to clearly see the planned benefits from the Western Auto
acquisition and look forward to continuing to build on the strong foundation
that we have put in place."