Advance Auto Parts Aktie
Advance Auto Parts-Aktie
WKN: 982516
ISIN: US00751Y1064
Land: USA
Branche: Sonstiges
Sektor: Maschinenbau
aktueller Kurs:
79,40 EUR
Veränderung:
0,00 EUR
Veränderung in %:
0,00 %
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Advance Auto Parts Reports Second Quarter 2019 Results

Dienstag, 13.08.19 12:30
News zusammengesetzt aus Tastaturtasten
Bildquelle: fotolia.com

RALEIGH, N.C. –

Advance Auto Parts, Inc. (NYSE: AAP), a leading automotive aftermarket parts provider in North America, that serves both professional installer and do-it-yourself customers, today announced its financial results for the second quarter ended July 13, 2019.

"As we begin the second half of 2019, I want to recognize the relentless focus and commitment of our entire team, including our network of Independent partners, as we work every day to execute our Strategic Plan," said Tom Greco, President and Chief Executive Officer. "While the second quarter was challenging, we continue to make progress, including building a differentiated Customer Value Proposition in both Professional and DIY Omnichannel in addition to driving productivity for the long term. We remain committed to our disciplined approach to increasing comparable store sales, expanding margins and delivering significant cash flow in the back half of 2019. This, combined with a strong industry backdrop, gives us confidence that our transformation plan is on track. Importantly, we continue to make meaningful improvements in working capital and free cash flow and are pleased to announce a new $400 million share repurchase authorization. In line with our financial priorities, coupled with the strength of our balance sheet, we expect to deliver significant shareholder value throughout the remainder of 2019 and for several years to come."

Year to Date Highlights

  • Net sales increased 1.6% to $5.3B; Comparable store sales (a) increased 1.5%
  • Operating income increased 3.5% to $378.7M; Adjusted operating income (a) increased 2.5% to $440.0M
  • Operating cash flow increased 10.9% to $492.2M
  • Diluted EPS Increased 8.2% to $3.71; Adjusted Diluted EPS (a) Increased 9.6% to $4.46

(a) Comparable store sales exclude sales to independently owned Carquest locations. For a better understanding of the Company's adjusted results, refer to the reconciliation of non-GAAP adjustments in the accompanying financial tables included herein.

Second Quarter and Year to Date 2019 Financial Results

Net sales for the second quarter of 2019 were $2.3 billion, a 0.2% increase versus the second quarter of the prior year. Comparable store sales for the second quarter of 2019 were flat. Year to date 2019, Net sales were $5.3 billion, an increase of 1.6% from the same period of the prior year. Through the second quarter 2019, Comparable store sales increased 1.5%.

Adjusted gross profit margin was 43.3% of Net sales in the second quarter of 2019, a 42 basis point decrease from the second quarter of 2018. The decrease was primarily driven by channel and product mix, in addition to planned supply chain wage investments in the second quarter. These headwinds were partially offset by continued improvements in utilization and management of inventory. Increased material costs due to both inflation and tariff related costs were fully offset by pricing actions in the quarter. The Company's GAAP Gross profit margin decreased to 43.3% from 43.5% in the second quarter of the prior year. Adjusted gross profit margin was 44.0% year to date, an increase of 2 basis points from the same period prior year. The Company's GAAP Gross profit margin decreased 43.8% year to date, from 43.9% for the same period of 2018.

Adjusted SG&A was 34.9% of Net sales in the second quarter of 2019, which was flat as compared to the second quarter of 2018. This was driven by an increase in professional fees and support contracts related to our investments and targeted marketing spend, which were offset primarily by safety related improvements driving favorability in insurance and claims expenses. The Company's GAAP SG&A of 36.0% of Net sales improved from 36.3% in the second quarter of 2018. Year to date, Adjusted SG&A was 35.7% of Net sales, which was an improvement of 5 basis points compared to the same period of the prior year. The Company's year to date 2019 GAAP SG&A of 36.6% of Net sales improved from 36.9% for the same period of 2018.

The Company's Adjusted operating income was $196.4 million in the second quarter of 2019, a decrease of 4.3% versus the second quarter of the prior year. Adjusted operating income margin declined to 8.4% of Net sales for the second quarter, a decrease of 40 basis points compared to the second quarter of the prior year. On a GAAP basis, the Company's Operating income was $170.8 million, 7.3% of Net sales, an increase of 12 basis points from the second quarter of 2018. Year to date, the Company's Adjusted operating income was $440.0 million, an increase of 2.5% compared to the same period of the prior year. On a rate basis, the year to date Adjusted operating income margin was 8.3%, which was an improvement of 7 basis points compared to the same period of the prior year. On a GAAP basis, the Company's Operating income was $378.7 million year to date, 7.2% of Net sales, an increase of 13 basis points from the same period of the prior year.

The Company's effective tax rate in the second quarter of 2019 was 24.9%, compared to 25.2% in the second quarter of the prior year. The Company's Adjusted Diluted EPS was $2.00 for the second quarter of 2019, an increase of 1.5% compared to the second quarter of the prior year. On a GAAP basis, the Company's Diluted EPS increased 8.8% to $1.73. The Company's effective tax rate year to date was 25.1%, compared to 24.8% in the same period of the prior year. The Company's Adjusted Diluted EPS was $4.46 year to date, an increase of 9.6% compared to the prior year. On a GAAP basis, the Company's Diluted EPS increased year to date 8.2% to $3.71.

Operating cash flow was $492.2 million through the second quarter of 2019 versus $444.0 million in the same period of the prior year, an increase of 10.9%. Free cash flow through the second quarter of 2019 was $380.7 million, a decrease of 0.4% compared to the same period of the prior year.

2019 Full Year Guidance

“We remain focused on executing our long term strategic objectives,” said Executive Vice President and Chief Financial Officer Jeff Shepherd. “We are confident that despite short term headwinds in the second quarter, which caused volatility in our financial results, we will deliver meaningful progress against our transformation plan in 2019. In addition, we expect to deliver sales growth and margin expansion in the back half of the year, resulting in our second consecutive year of top and bottom line growth. Importantly, we continue to invest in critical technology and systems integration to unlock long term margin expansion.”

 

 

Prior Outlook

 

Updated Outlook

 

As of May 22, 2019

 

As of August 13, 2019

 

Full Year 2019

 

Full Year 2019

($ in millions)

Low

 

High

 

Low

 

High

Net sales

$

 

9,650

 

 

$

 

9,800

 

 

$

 

9,650

 

 

$

 

9,750

 

Comparable store sales

 

1.0

%

 

 

2.5

%

 

 

1.0

%

 

 

2.0

%

Adjusted operating income margin (a)

 

8.0

%

 

 

8.4

%

 

 

8.0

%

 

 

8.2

%

Income tax rate

 

24

%

 

 

26

%

 

 

24

%

 

 

26

%

Transformation expenses (a)

$

 

80

 

 

$

 

100

 

 

$

 

80

 

 

$

 

100

 

Capital expenditures

$

 

250

 

 

$

 

300

 

 

$

 

250

 

 

$

 

300

 

Free cash flow (a)

Minimum $650

 

Minimum $700

(a) For a better understanding of the Company's adjusted results, refer to the reconciliation of non-GAAP adjustments in the accompanying financial tables included herein. Because of the forward-looking nature of the 2019 non-GAAP financial measures, specific quantifications of the amounts that would be required to reconcile these non-GAAP financial measures to their most directly comparable GAAP financial measures are not available at this time.

Capital Allocation

On August 7, 2019, the Company's Board of Directors authorized a $400.0 million share repurchase program, which replaced the remaining portion of the Company's $600.0 million share repurchase program that was authorized in August 2018.

On August 7, 2019, the Company's Board of Directors declared a regular quarterly cash dividend of $0.06 per share to be paid on October 4, 2019 to all common shareholders of record as of September 20, 2019.

Investor Conference Call

The Company will discuss its results for the second quarter of 2019 via a webcast scheduled to begin at 8 a.m. Eastern Time on Tuesday, August 13, 2019. The webcast will be accessible via the Investor Relations page of the Company's website (www.AdvanceAutoParts.com).

For individuals unable to access the webcast, the event will be available by dialing (844) 877-5989 and referencing conference identification number 3641019. A replay of the conference call will be available on the Company's website for one year.

About Advance Auto Parts

Advance Auto Parts, Inc. is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. As of July 13, 2019, Advance operated 4,912 stores and 150 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves 1,250 independently owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos and British Virgin Islands. Additional information about Advance, including employment opportunities, customer services, and online shopping for parts, accessories and other offerings can be found at www.AdvanceAutoParts.com.

Forward-Looking Statements

Certain statements in this report are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. Forward-looking statements address future events or developments, and typically use words such as “believe,” “anticipate,” “expect,” “intend,” “plan,” “forecast,” “guidance,” “outlook” or “estimate” or similar expressions. These forward-looking statements include, but are not limited to, key assumptions for future financial performance including net sales, store growth, comparable store sales, gross profit rate, SG&A, adjusted operating income, income tax rate, transformation costs, adjusted operating income rate targets, capital expenditures, inventory levels and free cash flow; statements regarding expected growth and future performance of the Company; statements regarding enhancements to stockholder value, strategic plans or initiatives, growth or profitability, productivity targets and all other statements that are not statements of historical facts. These statements are based upon assessments and assumptions of management in light of historical results and trends, current conditions and potential future developments that often involve judgment, estimates, assumptions and projections. Forward-looking statements reflect current views about the Company's plans, strategies and prospects, which are based on information currently available as of the date of this release. Except as required by law, the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. Please refer to the risk factors discussed in "Item 1a. Risk Factors" in the Company's most recent Annual Report on Form 10-K, as updated by its Quarterly Report on Form 10-Q and other filings made by the Company with the Securities and Exchange Commission for additional factors that could materially affect the Company’s actual results. Forward-looking statements are subject to risks and uncertainties, many of which are outside its control, which could cause actual results to differ materially from these statements. Therefore, you should not place undue reliance on those statements.

 

Advance Auto Parts, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

 

 

July 13,
2019

 

December 29,
2018

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

 

747,719

 

 

$

 

896,527

 

Receivables, net

 

713,061

 

 

 

624,972

 

Inventories

 

4,374,933

 

 

 

4,362,547

 

Other current assets

 

126,758

 

 

 

198,408

 

Total current assets

 

5,962,471

 

 

 

6,082,454

 

 

 

 

 

Property and equipment, net

 

1,381,388

 

 

 

1,368,985

 

Operating lease right-of-use assets

 

2,360,019

 

 

 

Goodwill

 

992,432

 

 

 

990,237

 

Intangible assets, net

 

521,969

 

 

 

550,593

 

Other assets

 

49,667

 

 

 

48,379

 

 

$

 

11,267,946

 

 

$

 

9,040,648

 

Liabilities and Stockholders' Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

 

3,317,972

 

 

$

 

3,172,790

 

Accrued expenses

 

587,119

 

 

 

623,141

 

Other current liabilities

 

467,314

 

 

 

90,019

 

Total current liabilities

 

4,372,405

 

 

 

3,885,950

 

 

 

 

 

Long-term debt

 

746,951

 

 

 

1,045,720

 

Noncurrent operating lease liabilities

 

2,032,350

 

 

 

Deferred income taxes

 

313,903

 

 

 

318,353

 

Other long-term liabilities

 

131,035

 

 

 

239,812

 

Total stockholders' equity

 

3,671,302

 

 

 

3,550,813

 

 

$

 

11,267,946

 

 

$

 

9,040,648

 

NOTE: These preliminary condensed consolidated balance sheets have been prepared on a basis consistent with the Company's previously prepared balance sheets filed with the Securities and Exchange Commission ("SEC"), but do not include the footnotes required by accounting principles generally accepted in the United States of America (“GAAP”).

 

Advance Auto Parts, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

 

 

 

 

 

 

 

 

 

Twelve Weeks Ended

 

Twenty-Eight Weeks Ended

 

July 13,
2019

 

July 14,
2018

 

July 13,
2019

 

July 14,
2018

Net sales

$

 

2,332,246

 

 

$

 

2,326,652

 

 

$

 

5,284,283

 

 

$

 

5,200,500

 

Cost of sales, including purchasing and warehousing costs

 

1,322,808

 

 

 

1,315,093

 

 

 

2,970,233

 

 

 

2,916,658

 

Gross profit

 

1,009,438

 

 

 

1,011,559

 

 

 

2,314,050

 

 

 

2,283,842

 

Selling, general and administrative expenses

 

838,666

 

 

 

844,018

 

 

 

1,935,338

 

 

 

1,918,061

Quelle: Business Wire



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