4th Quarter EPS of $30.93
Annual Sales of $12.6 Billion
“As a result of the COVID-19 global pandemic, our primary focus has been and continues to be to protect the health and wellness of our customers and AutoZoners. I’m very proud of the steps our team has taken in this regard and I’m very appreciative of the phenomenal efforts of our AutoZoners who have continued to provide exceptional service to our customers throughout this entire extraordinary season! In recognition of their exceptional efforts and to provide them with much needed flexibility, we provided additional paid-time off for all eligible full and part-time hourly AutoZoners at the beginning of the pandemic. This quarter, we extended the same benefit to our Store Managers and distribution center Advisors, each of whom have been on the front line, supporting their teams and managing through an enormous amount of change. While we are very pleased with our performance, we know that the safety of our customers and AutoZoners along with our strong performance would not have been possible without the tremendous efforts of all AutoZoners across the organization,” said
Net income for the quarter increased
For the quarter, gross profit, as a percentage of sales, was 53.1% (versus 53.4% for last year’s quarter). The decrease in gross margin was attributable to lower merchandise margins driven primarily by a shift in mix. Operating expenses, as a percentage of sales, were 30.7% (versus 33.8% for last year’s quarter), with leverage primarily due to higher sales volumes.
For the fiscal year ended
Due to the uncertainty caused by the COVID-19 global pandemic, AutoZone did not repurchase any shares during the quarter. For the fiscal year, the Company repurchased 826 thousand shares of its common stock for
The Company’s inventory increased 3.6% over last year’s quarter, driven by increased product placement and new stores. Inventory per store was
“I would like to congratulate and thank our entire organization for the results delivered this quarter and fiscal year. We set many modern era records during our fourth quarter including record same store sales of 21.8%, record commercial sales per program per week of
During the quarter ended
AutoZone is the leading retailer and a leading distributor of automotive replacement parts and accessories in the
AutoZone will host a conference call this morning,
This release includes certain financial information not derived in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP measures include adjusted results to exclude the additional week in the prior year’s fourth quarter and adjustments to reflect return on invested capital, adjusted debt and adjusted debit to EBITDAR including adjustments for deferred tax liabilities. The Company believes that the presentation of these non-GAAP measures provides information that is useful to investors as it indicates more clearly the Company’s comparative year-to-year operating results, but this information should not be considered a substitute for any measures derived in accordance with GAAP. Management targets the Company’s capital structure in order to maintain its investment grade credit ratings and manages cash flows available for share repurchase by monitoring cash flows before share repurchases, as shown on the attached tables. The Company believes this is important information for the management of its debt levels and share repurchases. We have included a reconciliation of this additional information to the most comparable GAAP measures in the accompanying reconciliation tables.
Certain statements contained in this press release constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically use words such as “believe,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy,” “seek,” “may,” “could,” and similar expressions. These are based on assumptions and assessments made by the Company’s management in light of experience and perception of historical trends, current conditions, expected future developments and other factors that the Company believes to be appropriate. These forward-looking statements are subject to a number of risks and uncertainties, including without limitation: product demand; energy prices; weather; competition; credit market conditions; cash flows; access to available and feasible financing; future stock repurchases; the impact of recessionary conditions; consumer debt levels; changes in laws or regulations; war and the prospect of war, including terrorist activity; the impact of public health issues, such as the COVID-19 pandemic; inflation; the ability to hire, train and retain qualified employees; construction delays; the compromising of confidentiality, availability or integrity of information, including cyber-attacks; historic growth rate sustainability; downgrade of the Company’s credit ratings; damage to the Company’s reputation; challenges in international markets; failure or interruption of the Company’s information technology systems; origin and raw material costs of suppliers; disruption in the Company’s supply chain; impact of tariffs; anticipated impact of new accounting standards; and business interruptions. Certain of these risks and uncertainties are described in more detail in the “Risk Factors” section contained in Item 1A under Part 1 of the Company’s Annual Report on Form 10-K for the fiscal year ended
Contact Information:
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AutoZone's 4th Quarter Highlights - Fiscal 2020 | |||||||||
Condensed Consolidated Statements of Operations | |||||||||
4th Quarter, FY2020 | |||||||||
(in thousands, except per share data) | |||||||||
GAAP Results | |||||||||
16 Weeks Ended | 17 Weeks Ended | ||||||||
Net sales | $ | 4,545,968 | $ | 3,988,435 | |||||
Cost of sales | 2,132,993 | 1,858,035 | |||||||
Gross profit | 2,412,975 | 2,130,400 | |||||||
Operating, SG&A expenses | 1,394,930 | 1,349,625 | |||||||
Operating profit (EBIT) | 1,018,045 | 780,775 | |||||||
Interest expense, net | 65,638 | 61,197 | |||||||
Income before taxes | 952,407 | 719,578 | |||||||
Income taxes(1) | 211,950 | 154,350 | |||||||
Net income | $ | 740,457 | $ | 565,228 | |||||
Net income per share: | |||||||||
Basic | $ | 31.67 | $ | 23.15 | |||||
Diluted | $ | 30.93 | $ | 22.59 | |||||
Weighted average shares outstanding: | |||||||||
Basic | 23,383 | 24,417 | |||||||
Diluted | 23,942 | 25,019 | |||||||
Adjustments | |||||||||
Net sales | $ | - | $ | 238,617 | |||||
Cost of sales | - | 110,359 | |||||||
Gross profit | - | 128,258 | |||||||
Operating, SG&A expenses | - | 72,492 | |||||||
Operating profit (EBIT) | - | 55,766 | |||||||
Interest expense, net | - | 3,600 | |||||||
Income before taxes | - | 52,166 | |||||||
Income taxes | - | 11,189 | |||||||
Net income | $ | - | $ | 40,977 | |||||
Net income per share: | |||||||||
Basic | $ | - | $ | 1.68 | |||||
Diluted | $ | - | $ | 1.64 | |||||
Adjusted Results | |||||||||
16 Weeks Ended | 16 Weeks Ended | ||||||||
4th Quarter 2020(2) | 4th Quarter 2019(3) | ||||||||
Net sales | $ | 4,545,968 | $ | 3,749,818 | |||||
Cost of sales | 2,132,993 | 1,747,676 | |||||||
Gross profit | 2,412,975 | 2,002,142 | |||||||
Operating, SG&A expenses | 1,394,930 | 1,277,133 | |||||||
Operating profit (EBIT) | 1,018,045 | 725,009 | |||||||
Interest expense, net | 65,638 | 57,597 | |||||||
Income before taxes | 952,407 | 667,412 | |||||||
Income taxes(1) | 211,950 | 143,161 | |||||||
Net income | $ | 740,457 | $ | 524,251 | |||||
Net income per share: | |||||||||
Basic | $ | 31.67 | $ | 21.47 | |||||
Diluted | $ | 30.93 | $ | 20.95 | |||||
(1)The Company's effective tax rate was 22.3% for the sixteen weeks ended | |||||||||
(2)The sixteen weeks ended | |||||||||
(3)The Company adjusted Fourth quarter Fiscal 2019 to exclude the impact of the seventeenth week of operations | |||||||||
AutoZone's 4th Quarter Highlights - Fiscal 2020 | |||||||||
Condensed Consolidated Statements of Operations | |||||||||
Fiscal Year 2020 | |||||||||
(in thousands, except per share data) | GAAP Results | ||||||||
52 Weeks Ended | 53 Weeks Ended | ||||||||
Net sales | $ | 12,631,967 | $ | 11,863,743 | |||||
Cost of sales | 5,861,214 | 5,498,742 | |||||||
Gross profit | 6,770,753 | 6,365,001 | |||||||
Operating, SG&A expenses | 4,353,074 | 4,148,864 | |||||||
Operating profit (EBIT) | 2,417,679 | 2,216,137 | |||||||
Interest expense, net | 201,165 | 184,804 | |||||||
Income before taxes | 2,216,514 | 2,031,333 | |||||||
Income taxes(1) | 483,542 | 414,112 | |||||||
Net income | $ | 1,732,972 | $ | 1,617,221 | |||||
Net income per share: | |||||||||
Basic | $ | 73.62 | $ | 64.78 | |||||
Diluted | $ | 71.93 | $ | 63.43 | |||||
Weighted average shares outstanding: | |||||||||
Basic | 23,540 | 24,966 | |||||||
Diluted | 24,093 | 25,498 | |||||||
(1)The Company's effective tax rate was 21.8% for the 52 weeks ended | |||||||||
(2)The 52 weeks ended | |||||||||
Selected Balance Sheet Information | |||||||||
(in thousands) | |||||||||
Cash and cash equivalents | $ | 1,750,815 | $ | 176,300 | |||||
Merchandise inventories | 4,473,282 | 4,319,113 | |||||||
Current assets | 6,811,872 | 5,028,685 | |||||||
Property and equipment, net | 4,509,221 | 4,398,751 | |||||||
Operating lease right-of-use assets | 2,581,677 | - | |||||||
Total assets | 14,423,872 | 9,895,913 | |||||||
Accounts payable | 5,156,324 | 4,864,912 | |||||||
Current liabilities | 6,307,091 | 5,512,141 | |||||||
Operating lease liabilities, less current portion | 2,477,560 | - | |||||||
Total debt | 5,513,371 | 5,206,344 | |||||||
Stockholders' deficit | (877,977 | ) | (1,713,851 | ) | |||||
Working capital | 504,781 | (483,456 | ) | ||||||
AutoZone's 4th Quarter Highlights - Fiscal 2020 | |||||||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||||||
Adjusted Debt / EBITDAR | |||||||||||||||||||
(in thousands, except adjusted debt to EBITDAR ratio) | Trailing 4 Quarters | ||||||||||||||||||
52 Weeks Ended | 53 Weeks Ended | ||||||||||||||||||
Net income | $ | 1,732,972 | $ | 1,617,221 | |||||||||||||||
Add: | Interest expense | 201,165 | 184,804 | ||||||||||||||||
Income tax expense | 483,542 | 414,112 | |||||||||||||||||
Adjusted EBIT | 2,417,679 | 2,216,137 | |||||||||||||||||
Add: | Depreciation and amortization | 397,466 | 369,957 | ||||||||||||||||
Rent expense(1) | 329,783 | 332,726 | |||||||||||||||||
Share-based expense | 44,835 | 43,255 | |||||||||||||||||
Adjusted EBITDAR | $ | 3,189,763 | $ | 2,962,075 | |||||||||||||||
Debt(2) | $ | 3,957,186 | $ | 5,206,344 | |||||||||||||||
Financing lease liabilities | 223,353 | 179,905 | |||||||||||||||||
Add: rent x 6(1) | 1,978,696 | 1,996,358 | |||||||||||||||||
Adjusted debt | $ | 6,159,235 | $ | 7,382,607 | |||||||||||||||
Adjusted debt to EBITDAR | 1.9 | 2.5 | |||||||||||||||||
Adjusted Return on | |||||||||||||||||||
(in thousands, except ROIC) | |||||||||||||||||||
Trailing 4 Quarters | |||||||||||||||||||
52 Weeks Ended | 53 Weeks Ended | ||||||||||||||||||
Net income | $ | 1,732,972 | $ | 1,617,221 | |||||||||||||||
Adjustments: | |||||||||||||||||||
Interest expense | 201,165 | 184,804 | |||||||||||||||||
Rent expense(1) | 329,783 | 332,726 | |||||||||||||||||
Tax effect(3) | (115,747 | ) | (105,576 | ) | |||||||||||||||
Deferred tax liabilities, net of repatriation tax | - | (6,340 | ) | ||||||||||||||||
Adjusted after-tax return | $ | 2,148,173 | $ | 2,022,835 | |||||||||||||||
Average debt(4)(5) | $ | 5,001,194 | $ | 5,126,286 | |||||||||||||||
Average stockholders' deficit(5) | (1,542,355 | ) | (1,615,339 | ) | |||||||||||||||
Add: Rent x 6(1) | 1,978,696 | 1,996,358 | |||||||||||||||||
Average financing lease liabilities(5) | 203,998 | 162,591 | |||||||||||||||||
Invested capital | $ | 5,641,533 | $ | 5,669,896 | |||||||||||||||
Adjusted After-Tax ROIC | 38.1 | % | 35.7 | % | |||||||||||||||
(1)Effective | |||||||||||||||||||
Total lease cost, per ASC 842, for the 52 weeks ended | $ | 415,505 | |||||||||||||||||
Less: | Financing lease interest and amortization | (60,275 | ) | ||||||||||||||||
Less: | Variable operating lease components, related to insurance and common area maintenance for the 52 weeks ended | (25,447 | ) | ||||||||||||||||
Rent expense for the 52 weeks ended | $ | 329,783 | |||||||||||||||||
(2)The Company ended FY20 with excess cash of | |||||||||||||||||||
(3)Effective tax rate for the 52 weeks ended | |||||||||||||||||||
(4)Average debt is presented net of average excess cash of | |||||||||||||||||||
(5)All averages are computed based on trailing 5 quarter balances | |||||||||||||||||||
Other Selected Financial Information | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Cumulative share repurchases ($ since fiscal 1998) | $ | 22,354,110 | $ | 21,423,207 | |||||||||||||||
Remaining share repurchase authorization ($) | 795,890 | 476,793 | |||||||||||||||||
Cumulative share repurchases (shares since fiscal 1998) | 147,696 | 146,870 | |||||||||||||||||
Shares outstanding, end of quarter | 23,376 | 24,038 | |||||||||||||||||
16 Weeks Ended | 17 Weeks Ended | 52 Weeks Ended | 53 Weeks Ended | ||||||||||||||||
Depreciation and amortization | $ | 125,351 | $ | 118,839 | $ | 397,466 | $ | 369,957 | |||||||||||
Capital spending | 183,848 | 182,203 | 457,736 | 496,050 | |||||||||||||||
AutoZone's 4th Quarter Highlights - Fiscal 2020 | |||||||||||||||||||||
Selected Operating Highlights | |||||||||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||||||||
Store Count & Square Footage | |||||||||||||||||||||
16 Weeks Ended | 17 Weeks Ended | 52 Weeks Ended | 53 Weeks Ended | ||||||||||||||||||
Domestic: | |||||||||||||||||||||
Beginning stores | 5,836 | 5,686 | 5,772 | 5,618 | |||||||||||||||||
Stores opened | 49 | 86 | 113 | 154 | |||||||||||||||||
Ending domestic stores | 5,885 | 5,772 | 5,885 | 5,772 | |||||||||||||||||
Relocated stores | 4 | - | 5 | 2 | |||||||||||||||||
Stores with commercial programs | 5,007 | 4,893 | 5,007 | 4,893 | |||||||||||||||||
Square footage (in thousands) | 38,559 | 37,769 | 38,559 | 37,769 | |||||||||||||||||
Beginning stores | 610 | 576 | 604 | 564 | |||||||||||||||||
Stores opened | 11 | 28 | 17 | 40 | |||||||||||||||||
Ending | 621 | 604 | 621 | 604 | |||||||||||||||||
Beginning stores | 38 | 25 | 35 | 20 | |||||||||||||||||
Stores opened | 5 | 10 | 8 | 15 | |||||||||||||||||
Ending | 43 | 35 | 43 | 35 | |||||||||||||||||
Total | 6,549 | 6,411 | 6,549 | 6,411 | |||||||||||||||||
Square footage (in thousands) | 43,502 | 42,526 | 43,502 | 42,526 | |||||||||||||||||
Square footage per store | 6,643 | 6,633 | 6,643 | 6,633 | |||||||||||||||||
Sales Statistics | |||||||||||||||||||||
($ in thousands, except sales per average square foot) | |||||||||||||||||||||
16 Weeks Ended | 17 Weeks Ended | 52 Weeks Ended | 53 Weeks Ended | ||||||||||||||||||
Total AutoZone Stores (Domestic, | |||||||||||||||||||||
Sales per average store | $ | 686 | $ | 617 | $ | 1,914 | $ | 1,847 | |||||||||||||
Sales per average square foot | $ | 103 | $ | 93 | $ | 288 | $ | 279 | |||||||||||||
Total auto parts sales | $ | 4,473,098 | $ | 3,917,062 | $ | 12,405,929 | $ | 11,645,235 | |||||||||||||
% Increase vs. LY | 14.2 | % | 11.9 | % | 6.5 | % | 6.3 | % | |||||||||||||
Domestic Commercial | |||||||||||||||||||||
Total domestic commercial sales | $ | 975,573 | $ | 886,516 | $ | 2,727,767 | $ | 2,562,830 | |||||||||||||
% Increase vs. LY | 10.0 | % | 21.1 | % | 6.4 | % | 15.7 | % | |||||||||||||
Average sales per program per week | $ | 12.2 | $ | 10.7 | $ | 10.6 | $ | 10.0 | |||||||||||||
% Increase vs. LY | 14.2 | % | 10.5 | % | 5.6 | % | 10.0 | % | |||||||||||||
All Other, including | |||||||||||||||||||||
All other sales | $ | 72,870 | $ | 71,373 | $ | 226,038 | $ | 218,508 | |||||||||||||
% Increase vs. LY | 2.1 | % | 20.0 | % | 3.4 | % | (18.9 | %) | |||||||||||||
(1)Fiscal 2019 results include an additional week of sales of | |||||||||||||||||||||
16 Weeks Ended | 16 Weeks Ended | 52 Weeks Ended | 52 Weeks Ended | ||||||||||||||||||
Domestic same store sales | 21.8 | % | 3.0 | % | (2) | 7.4 | % | 3.0 | % | (2) | |||||||||||
(2) | |||||||||||||||||||||
Inventory Statistics (Total Stores) | |||||||||||||||||||||
as of | as of | ||||||||||||||||||||
Accounts payable/inventory | 115.3 | % | 112.6 | % | |||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Inventory | $ | 4,473,282 | $ | 4,319,113 | |||||||||||||||||
Inventory per store | 683 | 674 | |||||||||||||||||||
Net inventory (net of payables) | (683,042 | ) | (545,799 | ) | |||||||||||||||||
Net inventory / per store | (104 | ) | (85 | ) | |||||||||||||||||
Trailing 5 Quarters | |||||||||||||||||||||
Inventory turns | 1.3 | x | 1.3 | x | |||||||||||||||||
Source:
2020 GlobeNewswire, Inc., source