|Delayed - 08/07 04:10:00 pm|
AutoZone Announces Actions In Response To COVID-19
|04/07/2020 | 06:56am|
MEMPHIS, Tenn., April 07, 2020 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO), announces a number of actions taken in preparation and response to the novel coronavirus (COVID-19). To further support AutoZoners, the Company has provided a new additional Emergency-Time Off (ETO) benefit enhancement for eligible part-time and full-time hourly AutoZoners in the U.S. and Puerto Rico. This additional bank of hours, 80 hours for full-time and up to 40 hours for part-time AutoZoners, was created to help AutoZoners deal with the challenges caused by COVID-19 and can be used by the end of the calendar year. “The health, safety and well-being of our AutoZoners and customers remains our most important concern. Whether during times of natural disaster or crisis, our AutoZoners make sure that our customers can safely and responsibly operate their vehicles and get back on the road. We simply cannot thank our incredible AutoZoners enough for their tremendous and heroic response to this crisis,” said Bill Rhodes, Chairman, President and Chief Executive Officer.
Based upon AutoZone’s role in auto supply, supporting auto repair and critical infrastructures such as transportation, and following the guidance issued by the Department of Homeland Security, AutoZone has been able to keep its stores operating in the U.S. as an essential business and retailer. To better serve customers and promote health and safety, AutoZone, among other actions, has temporarily reduced its hours of operation in most stores, increased the frequency of cleaning and disinfecting at all locations, and introduced a new curbside pickup option for customers. Additional steps taken by AutoZone in response to COVID-19 can be found by visiting www.autozone.com. “This crisis has caused us to re-examine the way we conduct business, while also taking every step possible to ensure the safest environment for our AutoZoners and customers. As an essential business, we are providing necessary parts and products like automotive batteries, headlights, brakes and other automotive hard parts needed by the motoring public. Many of our customers are first responders, health care professionals, auto repair shops, and people just needing to get to the pharmacy or grocery store,” said Rhodes.
Additionally, AutoZone announces the closure of a new 364-day senior unsecured revolving credit facility in the principal amount of $750 million. This new facility, together with the recently completed sale of $500 million aggregate principal amount of the Company’s 3.625% Notes due 2025 and $750 million aggregate principal amount of the Company’s 4.000% Notes due 2030 on March 26, 2020, strengthens the Company’s liquidity position. AutoZone has also temporarily suspended its share repurchase program. “At all times, we remain absolutely committed to wisely managing capital and our resources. Along with our existing $2 billion multi-year credit facility, this most recent series of transactions allows us to strengthen our financial position and ability to be responsive during this ever-changing environment caused by the COVID-19 pandemic,” said Rhodes. AutoZone has approximately $1.9 billion in available capacity under its $2 billion multi-year credit facility.
As of February 15, 2020, the Company had 5,815 stores in the U.S., 608 stores in Mexico and 38 stores in Brazil for a total store count of 6,461.
AutoZone is the leading retailer and a leading distributor of automotive replacement parts and accessories in the Americas. Each store carries an extensive product line for cars, sport utility vehicles, vans and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. Many stores also have a commercial sales program that provides commercial credit and prompt delivery of parts and other products to local, regional and national repair garages, dealers, service stations, and public sector accounts. We also have commercial programs in stores in Mexico and Brazil. AutoZone also sells the ALLDATA brand automotive diagnostic and repair software through www.alldata.com and www.alldatadiy.com. Additionally, we sell automotive hard parts, maintenance items, accessories, and non-automotive products through www.autozone.com and our commercial customers can make purchases through www.autozonepro.com. We also provide product information on our Duralast branded products through www.duralastparts.com. AutoZone does not derive revenue from automotive repair or installation services.