Sign In  |  Register  |  About San Anselmo  |  Contact Us

San Anselmo, CA
September 01, 2020 1:33pm
7-Day Forecast | Traffic
  • Search Hotels in San Anselmo

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Advance Auto Parts Reports Fourth Quarter and Full Year 2023 Results

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, announced its financial results for the fourth quarter and full year ended December 30, 2023.

“As we closed out 2023, we continued to act with a sense of urgency to stabilize the business and position the company to return to profitable growth,” said Shane O'Kelly, president and chief executive officer. “Our full year results are well below our expectations, and we are focused on instilling greater discipline and accountability both in the fundamental business and in how the organization executes across the board. In addition to the operational improvements we are implementing, we are strengthening internal controls and enhancing the quality of our accounting information to help better inform how we drive the business forward.

“We continue to advance our ongoing operational and strategic review of the business, including the separate sales processes for Worldpac and our Canadian business. We have streamlined and reorganized the company’s leadership structure and have made several important new hires, including the appointments of Ryan Grimsland as Chief Financial Officer and Elizabeth Dreyer as Chief Accounting Officer. Building on the $150 million in annualized SG&A reductions our team executed in the fourth quarter, we recently launched an initiative to eliminate costs related to our indirect spend by an additional $50 million on an annualized basis. We are also moving forward with the consolidation of our supply chain to a single, unified network to create efficiencies and better serve customers. Looking ahead, we are committed to driving enhanced value for shareholders by executing on the fundamentals of our business – focusing on the customer, investing in our frontline and strengthening our competitive position.”

Fourth Quarter and Full Year 2023 Results (1)

Fourth quarter 2023 Net sales totaled $2.5 billion, a 0.4% decrease compared with the prior year. Comparable store sales for the fourth quarter 2023 decreased 1.4%. For full year 2023, Net sales of $11.3 billion increased 1.2% from 2022. Comparable store sales for the full year decreased 0.3%.

The company's Gross profit decreased 11.9% from the fourth quarter of the prior year to $950.8 million or 38.6% of Net sales compared with 43.6% in the prior year quarter. This result reflects both business performance and atypical drivers, primarily attributable to a change in inventory related items and elevated supply chain costs. The company's full year Gross profit was $4.5 billion, or 40.1% of Net sales, representing a 414 basis points decrease from the prior year primarily driven by inventory related items and costs not fully covered by pricing actions.

The company's SG&A was $999.4 million in the fourth quarter, or 40.6% of Net sales compared with 38.8% for the prior year quarter. This was primarily driven by a year over year increase in occupancy costs and store labor. The company's full year SG&A was $4.4 billion, or 39.1% of Net sales compared with 38.2% in the prior year.

The company's fourth quarter Operating loss was $48.6 million, or (2.0)% of Net sales compared with the fourth quarter of the prior year Operating income of $119.3 million or 4.8% of Net sales. The company's full year Operating income was $114.4 million, or 1.0% of Net sales, compared with $670.3 million, or 6.0% of Net sales, in the prior year.

The company's effective tax rate in the fourth quarter of 2023 was 42.3%. The company's Diluted loss per share was $0.59 compared with Diluted earnings per share of $1.39 in the fourth quarter of the prior year. The company's effective tax rate for full year 2023 was 6.6%. The company's 2023 Diluted earnings per share was $0.50 compared with $7.65 in the prior year.

Net cash provided by operating activities was $0.3 billion for the full year 2023 versus $0.7 billion for the prior year. The decrease was primarily driven by lower Net income and working capital. Free cash flow for the full year 2023 was $43.7 million, compared with $312.5 million for the prior year.

During management’s review, the company identified issues with certain previously reported financials. All comparisons are based on the corrected historical results as depicted in the financial tables herein, which include the correction of non-material errors in previously reported results.

The company filed a Form 12b-25 with the Securities and Exchange Commission and disclosed that it expects to file its Form 10-K prior to the expiration of the extension period.

(1) All comparisons are based on the same time period in the prior year. Comparable store sales include locations open for 13 complete accounting periods and excludes sales to independently owned Carquest locations.

Capital Allocation

On February 13, 2024, the company declared a regular cash dividend of $0.25 per share to be paid on April 26, 2024 to all common stockholders of record as of April 12, 2024.

Subsequent Events

On February 26, 2024, the company entered into an amendment to its revolving credit facility to enable certain addbacks to financial covenants for specific write-downs of inventory and vendor receivables. As of December 30, 2023, considering the amendment, the company was in compliance with the credit facility’s financial covenants.

Full Year 2024 Guidance (1)

"In 2024, we are refining our operational improvement plans and building on the decisive actions we have taken to turn around the company’s performance. We are committed to improving overall productivity and taking a disciplined approach to reducing expenses, which will support our focus on investing in our team members. Our 2024 full year guidance is reflective of the steps we must take to reset the business and solidify our foundation for the long term," said Ryan Grimsland, executive vice president and chief financial officer.

 

 

2024

($ in millions, except per share data)

 

Low

 

High

Net sales

 

$

11,300

 

 

$

11,400

 

Comparable store sales (2)

 

 

0.0

%

 

 

1.0

%

Operating income margin

 

 

3.2

%

 

 

3.5

%

Diluted EPS

 

$

3.75

 

 

$

4.25

 

Capital expenditures

 

$

200

 

 

$

250

 

Free cash flow (3)

 

Minimum $250

(1)

The company is providing guidance as of February 28, 2024, which does not reflect any potential future acquisitions, dispositions or share repurchases.

(2)

Comparable store sales include locations open for 13 complete accounting periods and excludes sales to independently owned Carquest locations.

(3)

Free cash flow is a non-GAAP measure. For a better understanding of the company's adjusted results, refer to the reconciliation of non-GAAP adjustment in the accompanying financial tables included herein.

Investor Conference Call

The company will detail its results for the fourth quarter and full year 2023 via a webcast scheduled to begin at 8 a.m. Eastern Time on Wednesday, February 28, 2024. The webcast will be accessible via the Investor Relations page of the company's website (ir.AdvanceAutoParts.com).

To join by phone, please pre-register online for dial-in and passcode information. Upon registering, participants will receive a confirmation with call details and a registrant ID. While registration is open through the live call, the company suggests registering a minimum 10 minutes before the start of the call. A replay of the conference call will be available on the company's Investor Relations 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 December 30, 2023, Advance operated 4,786 stores and 321 Worldpac branches primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. The company also served 1,245 independently owned Carquest branded stores across these locations in addition to Mexico and various Caribbean 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 herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are usually identifiable by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “likely,” “may,” “plan,” “position,” “possible,” “potential,” “probable,” “project,” “should,” “strategy,” “will,” or similar language. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, statements about our strategic initiatives, operational plans and objectives, our ability to complete the potential divestiture of Worldpac and the company’s Canada business, the timing of the filing of our Annual Report on Form 10-K, improvements to our internal controls and expectations for economic conditions, future business results and future financial performance, as well as statements regarding underlying assumptions related thereto. Forward-looking statements reflect our views based on historical results, current information and assumptions related to future developments. Except as may be required by law, the company undertakes no obligation to update any forward-looking statements made herein. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements. They include, among others, factors related to the company’s leadership transition, the timing and implementation of our initiatives, our potential divestiture of Worldpac and the company's Canada business, our ability to hire, train and retain qualified employees, deterioration of general macroeconomic conditions, the highly competitive nature of our industry, demand for our products and services, complexities in our inventory and supply chain and challenges with transforming and growing our business. Please refer to “Item 1A. Risk Factors” of our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), as updated by our subsequent filings with the SEC, for a description of these and other risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements.

Advance Auto Parts, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

 

 

 

 

December 30,

2023 (1)

 

December 31,

2022 (1,2)

Assets

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

503,471

 

$

270,805

Receivables, net

 

 

800,141

 

 

684,048

Inventories

 

 

4,857,702

 

 

4,896,269

Other current assets

 

 

215,707

 

 

163,695

Total current assets

 

 

6,377,021

 

 

6,014,817

Property and equipment, net

 

 

1,648,546

 

 

1,690,139

Operating lease right-of-use assets

 

 

2,578,776

 

 

2,607,690

Goodwill

 

 

991,743

 

 

990,471

Other intangible assets, net

 

 

593,341

 

 

620,901

Other assets

 

 

86,899

 

 

62,429

Total assets

 

$

12,276,326

 

$

11,986,447

Liabilities and Stockholders' Equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

4,177,974

 

$

4,178,907

Accrued expenses

 

 

671,237

 

 

629,464

Current portion of long-term debt

 

 

 

 

185,000

Other current liabilities

 

 

458,194

 

 

427,480

Total current liabilities

 

 

5,307,405

 

 

5,420,851

Long-term debt

 

 

1,786,361

 

 

1,188,283

Non-current operating lease liabilities

 

 

2,215,766

 

 

2,278,318

Deferred income taxes

 

 

362,542

 

 

410,749

Other long-term liabilities

 

 

84,524

 

 

89,054

Total stockholders' equity

 

 

2,519,728

 

 

2,599,192

Total liabilities and stockholders’ equity

 

$

12,276,326

 

$

11,986,447

(1)

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

(2)

The fifty-two weeks ended December 31, 2022 reflect the corrected results as depicted in the financial tables herein, which include the correction of non-material errors the company discovered in previously reported results.

Advance Auto Parts, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Twelve Weeks Ended

 

Twelve Weeks Ended

 

Fifty-Two Weeks Ended

 

Fifty-Two Weeks Ended

 

 

December 30,

2023 (1)

 

December 31,

2022 (1,2)

 

December 30,

2023 (1)

 

December 31,

2022 (1,2)

 

 

 

 

 

 

 

 

 

Net sales

 

$

2,464,869

 

 

$

2,473,745

 

 

$

11,287,607

 

 

$

11,154,722

 

Cost of sales

 

 

1,514,028

 

 

 

1,394,853

 

 

 

6,764,105

 

 

 

6,222,487

 

Gross profit

 

 

950,841

 

 

 

1,078,892

 

 

 

4,523,502

 

 

 

4,932,235

 

Selling, general and administrative expenses

 

 

999,407

 

 

 

959,583

 

 

 

4,409,125

 

 

 

4,261,982

 

Operating (loss) income

 

 

(48,566

)

 

 

119,309

 

 

 

114,377

 

 

 

670,253

 

Other, net:

 

 

 

 

 

 

 

 

Interest expense

 

 

(18,062

)

 

 

(15,946

)

 

 

(88,055

)

 

 

(51,060

)

Loss on early redemptions of senior unsecured notes

 

 

 

 

 

 

 

 

 

 

 

(7,408

)

Other income (expense), net

 

 

5,731

 

 

 

(2,141

)

 

 

5,525

 

 

 

(7,423

)

Total other, net

 

 

(12,331

)

 

 

(18,087

)

 

 

(82,530

)

 

 

(65,891

)

(Loss) Income before provision for income taxes

 

 

(60,897

)

 

 

101,222

 

 

 

31,847

 

 

 

604,362

 

Provision for income taxes

 

 

(25,770

)

 

 

18,318

 

 

 

2,112

 

 

 

139,960

 

Net (loss) income

 

$

(35,127

)

 

$

82,904

 

 

$

29,735

 

 

$

464,402

 

 

 

 

 

 

 

 

 

 

Basic (loss) earnings per common share

 

$

(0.59

)

 

$

1.40

 

 

$

0.50

 

 

$

7.70

 

Weighted average common shares outstanding

 

 

59,504

 

 

 

59,333

 

 

 

59,432

 

 

 

60,351

 

 

 

 

 

 

 

 

 

 

Diluted (loss) earnings per common share

 

$

(0.59

)

 

$

1.39

 

 

$

0.50

 

 

$

7.65

 

Weighted average common shares outstanding

 

 

59,675

 

 

 

59,623

 

 

 

59,608

 

 

 

60,717

 

(1)

These preliminary condensed consolidated statements of operations have been prepared on a basis consistent with the company's previously prepared statements of operations filed with the SEC, but do not include the footnotes required by GAAP.

(2)

The twelve weeks ended December 31, 2022 and fifty-two weeks ended December 31, 2022 reflect the corrected results as depicted in the financial tables herein, which include the correction of non-material errors the company discovered in previously reported results.

Advance Auto Parts, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

Fifty-Two Weeks Ended

 

 

December 30,

2023 (1)

 

December 31,

2022 (1,2)

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

Net income

 

$

29,735

 

 

$

464,402

 

Depreciation and amortization

 

 

306,454

 

 

 

283,800

 

Share-based compensation

 

 

45,647

 

 

 

50,978

 

Loss on early redemption of senior unsecured notes

 

 

 

 

 

7,408

 

Provision for deferred income taxes

 

 

(47,782

)

 

 

16,528

 

Other, net

 

 

2,813

 

 

 

6,168

 

Net change in:

 

 

 

 

Receivables, net

 

 

(114,665

)

 

 

67,147

 

Inventories

 

 

44,821

 

 

 

(229,643

)

Accounts payable

 

 

(4,645

)

 

 

227,774

 

Accrued expenses

 

 

115,673

 

 

 

(167,723

)

Other assets and liabilities, net

 

 

(91,987

)

 

 

9,732

 

Net cash provided by operating activities

 

 

286,064

 

 

 

736,571

 

Cash flows from investing activities:

 

 

 

 

Purchases of property and equipment

 

 

(242,411

)

 

 

(424,061

)

Purchase of intangible asset

 

 

 

 

 

(1,900

)

Proceeds from sales of property and equipment

 

 

6,922

 

 

 

1,513

 

Net cash used in investing activities

 

 

(235,489

)

 

 

(424,448

)

Cash flows from financing activities:

 

 

 

 

Payments on senior unsecured notes

 

 

 

 

 

(201,081

)

Borrowings under credit facilities

 

 

4,805,000

 

 

 

2,035,000

 

Payments on credit facilities

 

 

(4,990,000

)

 

 

(1,850,000

)

Proceeds from issuance of senior unsecured notes, net

 

 

599,571

 

 

 

348,618

 

Dividends paid

 

 

(209,293

)

 

 

(336,230

)

Repurchases of common stock

 

 

(14,518

)

 

 

(618,480

)

Other, net

 

 

(182

)

 

 

1,469

 

Net cash provided by (used in) financing activities

 

 

190,578

 

 

 

(620,704

)

Effect of exchange rate changes on cash

 

 

(8,487

)

 

 

(8,664

)

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

 

232,666

 

 

 

(317,245

)

Cash and cash equivalents, beginning of period

 

 

270,805

 

 

 

588,050

 

Cash and cash equivalents, end of period

 

$

503,471

 

 

$

270,805

 

(1)

This preliminary condensed consolidated statement of cash flows has been prepared on a basis consistent with the company's previously prepared statements of operations filed with the SEC, but does not include the footnotes required by GAAP.

(2)

The fifty-two weeks ended December 31, 2022 reflect the corrected results as depicted in the financial tables herein, which include the correction of the non-material errors the company discovered in previously reported results.

Restatement of Previously Issued Financial Statements

In connection with the preparation of the financial statements for the fourth quarter of 2023, the company identified additional errors primarily impacting cost of sales and selling, general and administrative costs. The company evaluated the errors and determined that the related impacts were not material to the previously issued consolidated financial statements for any prior period. A summary of the corrections to the impacted financial statement line items in our Consolidated Balance Sheet as of December 31, 2022 and our Consolidated Statements of Operations for the and Consolidated Statement of Cash Flows for the year ended December 31, 2022 included in our previously filed Annual Report on Form 10-K and our Consolidated Statements of Operations for the twelve weeks ended December 31, 2022 included in our previously filed Form 8-K and earnings release are presented below:

Condensed Consolidated Balance Sheet

December 31, 2022

 

As Previously Reported

 

Adjustments

 

As Corrected

Assets

 

 

 

 

 

Cash and cash equivalents

$

269,282

 

 

$

1,523

 

 

$

270,805

 

Receivables, net

 

698,613

 

 

 

(14,565

)

 

 

684,048

 

Inventories, net

 

4,915,262

 

 

 

(18,993

)

 

 

4,896,269

 

Total current assets

 

6,046,852

 

 

 

(32,035

)

 

 

6,014,817

 

Total assets

$

12,018,482

 

 

$

(32,035

)

 

$

11,986,447

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

Accounts payable

$

4,123,462

 

 

$

55,445

 

 

$

4,178,907

 

Accrued expenses

 

634,447

 

 

 

(4,983

)

 

 

629,464

 

Total current liabilities

 

5,370,389

 

 

 

50,462

 

 

 

5,420,851

 

Deferred income taxes

 

415,997

 

 

 

(5,248

)

 

 

410,749

 

Other long-term liabilities

 

87,214

 

 

 

1,840

 

 

 

89,054

 

Total liabilities

 

9,340,201

 

 

 

47,054

 

 

 

9,387,255

 

Accumulated other comprehensive loss

 

(45,143

)

 

 

448

 

 

 

(44,695

)

Retained earnings

 

4,744,624

 

 

 

(79,537

)

 

 

4,665,087

 

Total stockholders’ equity

 

2,678,281

 

 

 

(79,089

)

 

 

2,599,192

 

Total liabilities and stockholders’ equity

$

12,018,482

 

 

$

(32,035

)

 

$

11,986,447

 

Condensed Consolidated Statement of Operations

December 31, 2022

 

Twelve Weeks Ended

 

Fifty-Two Weeks Ended

 

As Previously

Reported

 

Adjustments

 

As

Corrected

 

As Previously

Reported

 

Adjustments

 

As

Corrected

Cost of sales

$

1,383,734

 

 

$

11,119

 

 

$

1,394,853

 

 

$

6,192,622

 

 

$

29,865

 

 

$

6,222,487

 

Gross profit

 

1,090,011

 

 

 

(11,119

)

 

 

1,078,892

 

 

 

4,962,100

 

 

 

(29,865

)

 

 

4,932,235

 

Selling, general and administrative

expenses

 

958,009

 

 

 

1,574

 

 

 

959,583

 

 

 

4,247,949

 

 

 

14,033

 

 

 

4,261,982

 

Operating income

 

132,002

 

 

 

(12,693

)

 

 

119,309

 

 

 

714,151

 

 

 

(43,898

)

 

 

670,253

 

Other (expense) income, net

 

11,320

 

 

 

(13,461

)

 

 

(2,141

)

 

 

(6,996

)

 

 

(427

)

 

 

(7,423

)

Total other, net

 

(4,626

)

 

 

(13,461

)

 

 

(18,087

)

 

 

(65,464

)

 

 

(427

)

 

 

(65,891

)

Income before provision for income

taxes

 

127,376

 

 

 

(26,154

)

 

 

101,222

 

 

 

648,687

 

 

 

(44,325

)

 

 

604,362

 

Provision for income taxes

 

20,679

 

 

 

(2,361

)

 

 

18,318

 

 

 

(146,815

)

 

 

6,855

 

 

 

(139,960

)

Net income

$

106,697

 

 

$

(23,793

)

 

$

82,904

 

 

$

501,872

 

 

$

(37,470

)

 

$

464,402

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

1.80

 

 

$

(0.40

)

 

$

1.40

 

 

$

8.32

 

 

$

(0.62

)

 

$

7.70

 

Diluted earnings per common share

$

1.79

 

 

$

(0.40

)

 

$

1.39

 

 

$

8.27

 

 

$

(0.62

)

 

$

7.65

 

Condensed Consolidated Statement of Cash Flows

Fifty-Two Weeks Ended December 31, 2022

 

As Previously Reported

 

Adjustments

 

As Corrected

Net income

$

501,872

 

 

$

(37,470

)

 

$

464,402

 

Provision for deferred income taxes

 

6,338

 

 

 

10,190

 

 

 

16,528

 

Net change in:

 

 

 

 

 

Receivables, net

 

81,254

 

 

 

(14,107

)

 

 

67,147

 

Inventories, net

 

(272,253

)

 

 

42,610

 

 

 

(229,643

)

Accounts payable

 

212,568

 

 

 

15,206

 

 

 

227,774

 

Accrued expenses

 

(165,643

)

 

 

(2,080

)

 

 

(167,723

)

Net cash provided by operating activities

 

722,222

 

 

 

14,349

 

 

 

736,571

 

Effect of exchange rate changes on cash

 

(9,216

)

 

 

552

 

 

 

(8,664

)

Net (decrease) increase in cash and cash equivalents

 

(332,146

)

 

 

14,901

 

 

 

(317,245

)

Cash and cash equivalents, beginning of period

 

601,428

 

 

 

(13,378

)

 

 

588,050

 

Cash and cash equivalents, end of period

$

269,282

 

 

$

1,523

 

 

$

270,805

 

Reconciliation of Non-GAAP Financial Measures

The company's financial results include certain financial measures not derived in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management uses Free cash flow as a measure of its liquidity and believes it is a useful indicator for potential investors of the company's ability to implement growth strategies and service debt. Free cash flow is a non-GAAP measure and should be considered in addition to, but not as a substitute for, information contained in the company's condensed consolidated statement of cash flows as a measure of liquidity.

Reconciliation of Free Cash Flow:(1)

 

 

 

 

 

 

Fifty-Two Weeks Ended

(in thousands)

 

December 30,

2023

 

December 31,

2022

Cash flows from operating activities

 

$

286,064

 

 

$

736,571

 

Purchases of property and equipment

 

 

(242,411

)

 

 

(424,061

)

Free cash flow

 

$

43,653

 

 

$

312,510

 

Adjusted Debt to Adjusted EBITDAR Ratio: (1)

 

 

 

 

 

 

Four Quarters Ended

(in thousands, except adjusted debt to adjusted EBITDAR ratio)

 

December 30,

2023

 

December 31,

2022

Total GAAP debt

 

$

1,786,361

 

 

$

1,373,283

Add: Operating lease liabilities

 

 

2,660,827

 

 

 

2,692,861

 

Adjusted debt

 

$

4,447,188

 

 

$

4,066,144

 

 

 

 

 

 

GAAP Net income

 

$

29,735

 

 

$

464,402

 

Depreciation and amortization

 

 

306,454

 

 

 

283,800

 

Interest expense

 

 

88,055

 

 

 

51,060

 

Other expense (income), net

 

 

(5,525

)

 

 

7,423

 

Provision for income taxes

 

 

2,112

 

 

 

139,960

 

Rent expense

 

 

613,859

 

 

 

594,838

 

Share-based compensation

 

 

45,647

 

 

 

50,978

 

Other nonrecurring charges(2)

 

 

12,419

 

 

 

7,408

 

Transformation related charges

 

 

29,719

 

 

 

37,083

 

Adjusted EBITDAR

 

$

1,122,475

 

 

$

1,636,952

 

 

 

 

 

 

Adjusted debt to adjusted EBITDAR ratio

 

 

4.0

 

 

 

2.5

 

(1)

The fifty-two weeks ended December 31, 2022 reflect the corrected results as depicted in the financial tables herein, which include the correction of non-material errors the company discovered in previously reported results.

(2)

The adjustments to the four quarters ended December 30, 2023 include expenses associated with our remediation efforts and executive search charges and the adjustments to the four quarters ended December 31, 2022 represent charges incurred resulting from the early redemption of the company's 2023 senior unsecured notes.

NOTE: Management believes its Adjusted Debt to Adjusted EBITDAR ratio (“leverage ratio”) is a key financial metric for debt securities, as reviewed by rating agencies, and believes its debt levels are best analyzed using this measure. The company’s goal is to maintain an investment grade rating. The company's credit rating directly impacts the interest rates on borrowings under its existing credit facility and could impact the company's ability to obtain additional funding. If the company was unable to maintain its investment grade rating, this could negatively impact future performance and limit growth opportunities. Similar measures are utilized in the calculation of the financial covenants and ratios contained in the company's financing arrangements. The leverage ratio calculated by the company is a non-GAAP measure and should not be considered a substitute for debt to net earnings, net earnings or debt as determined in accordance with GAAP. The company adjusts the calculation to remove rent expense and to add back the company’s existing operating lease liabilities related to their right-of-use assets to provide a more meaningful comparison with the company’s peers and to account for differences in debt structures and leasing arrangements. The company’s calculation of its leverage ratio might not be calculated in the same manner as, and thus might not be comparable to, similarly titled measures by other companies.

Store Information:

During the fifty-two weeks ended December 30, 2023, 61 stores and branches were opened and 40 were closed or consolidated, resulting in a total of 5,107 stores and branches as of December 30, 2023, compared with a total of 5,086 stores and branches as of December 31, 2022.

The below table summarizes the changes in the number of company-operated stores and branches during the twelve and fifty-two weeks ended December 30, 2023:

 

 

Twelve Weeks Ended

 

 

AAP

 

CARQUEST

 

WORLDPAC (1)

 

Total

October 7, 2023

 

4,477

 

 

308

 

 

320

 

5,105

 

New

 

9

 

 

 

 

1

 

10

 

Closed

 

(3

)

 

(5

)

 

 

(8

)

Relocated

 

1

 

 

(1

)

 

 

 

December 30, 2023

 

4,484

 

 

302

 

 

321

 

5,107

 

 

 

Fifty-Two Weeks Ended

 

 

AAP

 

CARQUEST

 

WORLDPAC (1)

 

Total

December 31, 2022

 

4,440

 

 

330

 

 

316

 

5,086

 

New

 

55

 

 

1

 

 

5

 

61

 

Closed

 

(13

)

 

(27

)

 

 

(40

)

Relocated

 

2

 

 

(2

)

 

 

 

December 30, 2023

 

4,484

 

 

302

 

 

321

 

5,107

 

(1)

Certain converted Autopart International (AI) locations will remain branded as AI going forward.

 

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 SanAnselmo.com & California Media Partners, LLC. All rights reserved.