Advance Auto Parts 2001 Annual Report Download

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The best part is our people.
2001 Annual Report Advance Auto Parts

Table of contents

  • Page 1
    The best part is our people. 2001 Annual Report Advance Auto Parts

  • Page 2
    Contents Financial Highlights Stockholders' Letter Company History Our Stores Supply Chain Commercial Program Financials And Other Information 2 4 6 9 12 15 16

  • Page 3
    ... 132 New York 96 Massachusetts 20 Rhode Island 3 Connecticut 24 New Jersey 21 Florida 461 California 1 Puerto Rico 37 Virgin Islands 2 Advance Auto Parts, Inc. is the second-largest auto parts retailer in the United States. We ended our 2001 fiscal year on December 29, 2001 with 2,484 stores in...

  • Page 4
    ... highest level of customer service, broad product selection, excellent value prices, and conveniently located stores. Our first priority is outstanding customer service. Whether our customers are replacing their engine, brakes, or just an oil filter, our team members are there to make sure they not...

  • Page 5
    ...customer service, a broad selection of quality parts and products at value prices, conveniently located stores, an efficient supply chain and leading edge technology. Working together, our team members served well over 100 million satisfied customers and produced strong financial results during 2001...

  • Page 6
    ... Chief Executive Officer in 1997. Under • Provide a good value to the customer. • Give the customer a reason to return by providing good service and quality products. & President Paul Klasing, Executive Vice President Merchandising & Marketing Bob Hedrick, Senior Vice President Human Resources...

  • Page 7
    ... stores are clean, eye-catching, easily navigated, stocked with a broad selection of parts and products, and staffed with people who truly care about the customer. That's why you'll hear Advance Auto Parts team members speak with such pride about our stores. members who work there. They love cars...

  • Page 8
    ... team members. Members of the Discount Auto Parts team are excited about the joining the Advance Auto Parts team, particularly because of the added personal growth opportunities. Also, the team members will be able to say "Yes" to their customers more often as Discount Auto Parts' in-store product...

  • Page 9
    ...mission of our supply chain. Each of our stores offers our customers up to 21,000 items on the shelves - with an additional 105,000 available the same or next day through our PDQ network. We offer one of the largest product selections of brand name and private label automotive parts, accessories and...

  • Page 10
    ... Service Tire Store and Todd Hoel, Commercial Parts Pro "Advance Auto Parts is our number one parts supplier," said Junior Word, Manager of Free Service Tire Store, a Tennessee-based chain. "They're our first call, and Todd does a great job for me." Todd Hoel, who knows that commercial parts sales...

  • Page 11
    ... the Board of Directors and Stockholders of Advance Auto Parts, Inc.: We have audited the accompanying consolidated balance sheets of Advance Auto Parts, Inc. (a Delaware company) and subsidiaries (the Company), as of December 29, 2001, and December 30, 2000, and the related consolidated statements...

  • Page 12
    ... associated with supply chain initiatives 1,394 Impairment of assets held for sale 12,300 Expenses associated with merger-related restructuring 3,719 Expenses associated with merger and integration 1,135 Non-cash stock option compensation expense 11,735 Operating income 89,113 Other, net: Interest...

  • Page 13
    ... stock option compensation Amortization of deferred debt issuance costs Amortization of bond discount Amortization of interest on capital lease obligation Extraordinary loss (gain) on extinguishment of debt, net of tax Cumulative effect of a change in accounting principle, net of tax Losses on sales...

  • Page 14
    ... Auto stores, located in Puerto Rico, the Virgin Islands and one Company owned store in California offer certain home and garden merchandise in addition to automotive parts, accessories and service. The Discount Auto Parts stores offer automotive replacement parts, accessories and maintenance items...

  • Page 15
    ...305,000 tranche B term loan facility and (2) a $160,000 revolving credit facility (including a letter of credit sub-facility). Upon the closing of the Discount acquisition, the Company used $485,000 of borrowings under the new senior credit facility and net proceeds of $185,600 from the sale of the...

  • Page 16
    ...: Other long-term liabilities consist of the following: December 29, 2001 December 30, 2000 Trade: Wholesale Retail Vendor (Note 2) Installment (Note 17) Related parties Employees Other Total receivables Less: Allowance for doubtful accounts Receivables, net $ 8,965 19,857 55,179 15,430 1,100 683...

  • Page 17
    ... certain directors, officers and key team members of the Company to purchase shares of common stock. The plan requires that the purchase price of the stock equal the fair market value at the time of the purchase and allows fifty percent of the purchase price to be executed through the delivery of...

  • Page 18
    ... in various states for sales and use tax. In management's opinion, any amounts assessed will not have a material effect on the Company's financial position or results of operations. 16. Lease Commitments: The Company leases store locations, distribution centers, office space, equipment and vehicles...

  • Page 19
    ... balance sheets. Postretirement Plan The Company provides certain health care and life insurance benefits for eligible retired team members. Team members retiring from the Company with 20 consecutive years of service after age 40 are eligible for these benefits, subject to deductibles, co-payment...

  • Page 20
    ... Stores segment consisted of the "Advance Auto Parts" retail locations and the Western segment consisted of the "Western Auto" retail locations and wholesale operations described above. The accounting policies of the reportable segments are the same as those of the Company. The financial information...

  • Page 21
    ... to the Retail segment related to the Western Auto retail operations in Puerto Rico and the Virgin Islands. (c) For fiscal years 2001, 2000, and 1999, total net sales include approximately $403,000, $356,000 and $245,000, respectively, related to revenues derived from commercial sales. (d) Excludes...

  • Page 22
    ... in the Company's method of accounting for cooperative advertising funds received from vendors (Note 2). Results of operations as previously reported in the Company's 2001 Form 10-Q Quarterly Reports for the first three quarters of fiscal 2001 were as follows: 2001 Net sales Gross profit Income...

  • Page 23
    ...and number of stores for the period from December 2, 2001 through December 29, 2001. (16) Average net retail sales per square foot is based on the average of beginning and ending total store square footage for the respective period. The 1998 amounts were calculated giving effect to the Parts America...

  • Page 24
    ... primarily located in Puerto Rico and the Virgin Islands. We are the second largest specialty retailer of automotive parts, accessories and maintenance items to DIY customers in the United States, based on store count and sales. We currently are the largest specialty retailer of automotive products...

  • Page 25
    ... reserves for excess and obsolete inventory. Warranties We record accruals for future warranty claims related to warranty programs for batteries, tires, road-side assistance and Craftsman products. Our accruals are based on current sales of the warranted products and historical claim experience. If...

  • Page 26
    ... lower average sales to each dealer. During 2000, we opened 140 new stores, relocated 10 stores and closed 28 stores, bringing the total retail segment stores to 1,729. At year end, we had 1,210 stores participating in our commercial delivery program, a result of adding 116 net stores to the program...

  • Page 27
    ... to close 108 and 27 Discount and Advance stores, respectively, that are in overlapping markets, as well as Discount stores that do not meet profitability objectives. In addition, we made the decision to close a duplicative distribution facility located in Jeffersonville, Ohio. The Western merger...

  • Page 28
    ...flows and related weighted average interest rates on long-term debt we had outstanding at December 29, 2001, by expected maturity dates. Expected maturity dates approximate contract terms. Fair values included herein have been determined based on quoted market prices. Weighted average variable rates...

  • Page 29
    ....com Stock Price Information : The table below sets forth, for the fiscal periods indicated, the high and low sale prices per share for our common stock, as reported by the New York Stock Exchange or NYSE. Our common stock has been listed on the NYSE since November 29, 2001, the closing date of...