Discount Auto Parts Reports Fiscal 2001 Q2 and Year-To-Date Results
19 December 2000
Discount Auto Parts, Inc. Reports Fiscal 2001 Second Quarter and Year-To-Date Results
LAKELAND, Fla.--Dec. 19, 2000--Discount Auto Parts, Inc. today announced results for the Company's second quarter ended November 28, 2000.Total sales for the second quarter of fiscal 2001 increased 12.8% to $161.0 million, as compared to $142.6 million a year earlier. Comparable store sales increased 5.2% for the second quarter of fiscal 2001 as compared to the second quarter of fiscal year 2000. Total sales for the first six months of fiscal 2001 increased 14.6% to $328.0 million, from $286.3 million a year earlier. Comparable store sales increased 5.7% for the first six months of fiscal 2001 as compared to the first six months of fiscal 2000. Comparable store sales results also include sales from the Company's commercial delivery program. The balance of the increase in total sales for the second quarter and the first six months of fiscal 2001 was attributable to new stores opened since the beginning of the respective periods in fiscal 2000. At November 28, 2000, the Company had 658 stores in operation as compared to 602 stores in operation at November 30, 1999.
Gross profit for the second quarter of fiscal 2001 was $63.4 million as compared to $58.5 million for the second quarter of fiscal 2000. As a percentage of sales, gross profit was 39.4% for the second quarter of fiscal 2001 as compared to 41.0% for the second quarter of fiscal 2000. Gross profit for the first six months of fiscal 2001 was $127.3 million as compared to $117.0 million a year earlier. As a percentage of sales, gross profit was 38.8% for the first six months of fiscal 2001 as compared to 40.9% a year earlier. Gross profit for the second quarter and first six months of fiscal 2001 were impacted by overall lower vendor incentives, higher inventory shrinkage expense and margin pressure in commodity categories such as oil.
Selling, general and administrative ("SG&A") expenses increased as a percentage of sales from 31.5% in the second quarter of fiscal 2000 to 33.5% in the second quarter of fiscal 2001. SG&A expenses increased as a percentage of sales from 31.0% for the first six months of fiscal 2000 to 32.5% for the first six months of fiscal 2001. The increase is due primarily to lower than anticipated retail sales which resulted in a reduced ability to leverage certain store related expenses.
Income from operations for the second quarter of fiscal 2001 was $9.5 million as compared to $13.5 million for the second quarter of fiscal 2000. Income from operations for the first six months of fiscal 2001 was $20.6 million as compared to $28.3 million for the first six months of fiscal 2000.
Interest expense for the second quarter of fiscal 2001 was $6.0 million as compared to $4.2 million for the second quarter of fiscal 2000. Interest expense for the first six months of fiscal 2001 was $11.5 million as compared to $7.8 million during the first six months of fiscal 2000. The increase was the result of increased borrowings primarily associated with new store growth and higher interest rates on the Company's variable rate debt.
Taking into account all of the above described factors, the Company reported net income for the second quarter of fiscal 2001 of $2.3 million or $.14 per diluted share as compared to $6.0 million or $.36 per diluted share for the second quarter of fiscal 2000. Net income for the first six months of fiscal 2001 was $5.9 million or $.35 per diluted share as compared to $13.4 million or $.80 per diluted share for the first six months of fiscal 2000.
During the second quarter of fiscal 2001, the Company added 5 mini-depot stores. For fiscal year 2001, the Company expects to add a total of approximately 40 stores.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Amounts)
Thirteen Thirteen Twenty-Six Twenty-Six
Weeks Ended Weeks Ended Weeks Ended Weeks Ended
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November 28 November 30 November 28 November 30
2000 1999 2000 1999
----------- ----------- ----------- -----------
Net sales $ 160,950 $ 142,643 $ 328,024 $ 286,268
Cost of sales,
including distri-
bution costs 97,586 84,096 200,736 169,294
----------- ----------- ----------- -----------
Gross profit 63,364 58,547 127,288 116,974
Selling, general
and administrative
expenses 53,877 45,003 106,727 88,697
----------- ----------- ----------- -----------
Income from
operations 9,487 13,544 20,561 28,277
Other income, net 35 173 120 811
Interest expense (5,958) (4,157) (11,541) (7,808)
----------- ----------- ----------- -----------
Income before
income taxes 3,564 9,560 9,140 21,280
Income taxes 1,283 3,540 3,290 7,914
----------- ----------- ----------- -----------
Net income $ 2,281 $ 6,020 $ 5,850 $ 13,366
=========== =========== =========== ===========
Net income per
share:
Basic net income
per common share$ 0.14 $ 0.36 $ 0.35 $ 0.80
=========== =========== =========== ===========
Dilutive net
income per
common share $ 0.14 $ 0.36 $ 0.35 $ 0.80
=========== =========== =========== ===========
Average common
shares outstanding 16,700 16,693 16,696 16,692
Dilutive effect of
stock options - - - 58
----------- ----------- ----------- -----------
Average common
shares outstanding
- assuming dilu-
tion 16,700 16,693 16,696 16,750
=========== =========== =========== ===========
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
November 28 May 30
2000 2000
----------- -----------
Assets
Current assets:
Cash and cash equivalents $ 5,649 $ 12,612
Inventories 247,926 253,113
Prepaid expenses and other current
assets 17,183 14,455
----------- -----------
Total current assets 270,758 280,180
Property and equipment 543,971 524,053
Less allowances for depreciation and
amortization (116,620) (104,771)
----------- -----------
427,351 419,282
Other assets 5,992 5,247
----------- -----------
Total assets $ 704,101 $ 704,709
=========== ===========
Liabilities and stockholders' equity
Current liabilities:
Trade accounts payable $ 63,466 $ 100,804
Other current liabilities 23,254 23,207
Current maturities of long-term debt 2,400 2,400
----------- -----------
Total current liabilities 89,120 126,411
Deferred income taxes 10,679 10,494
Long-term debt 295,228 264,600
Total stockholders' equity 309,074 303,204
----------- -----------
Total liabilities and stockholders'
equity $ 704,101 $ 704,709
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