Advance Auto Parts 2004 Annual Report Download - page 17

Advance฀Auto฀Parts,฀Inc.฀and฀Subsidiaries
15
Fiscal฀Year(1)(2)
2004 2003 2002 2001 2000
(in฀thousands,฀except฀per฀share฀data฀and฀ratios)
Balance฀Sheet฀and฀Other฀Financial฀Data:
Cash฀and฀cash฀equivalents฀............................................................. $฀ 56,321 $฀ 11,487 $฀ 13,885 $฀ 18,117 $฀ 18,009
Inventory฀......................................................................................... $1,201,450 $1,113,781 $1,048,803 $฀ 982,000 $฀ 788,914
Inventory฀turnover฀(11)฀...................................................................... 1.74 1.72 1.75 1.72 1.69
Inventory฀per฀store(12)฀..................................................................... $฀ 453,035 $฀ 438,669 $฀ 429,399 $฀ 392,635 $฀ 451,281
Accounts฀payable฀to฀inventory฀ratio(13)฀.......................................... 53.7% 51.0% 44.9% 43.7% 49.2%
Net฀working฀capital(14)฀.................................................................... $฀ 416,302 $฀ 372,509 $฀ 462,896 $฀ 442,099 $฀ 318,583
Capital฀expenditures(15)฀................................................................... $฀ 179,766 $฀ 101,177 $฀ 98,186 $฀ 63,695 $฀ 70,566
Total฀assets฀..................................................................................... $2,201,962 $1,983,071 $1,965,225 $1,950,615 $1,356,360
Total฀debt฀........................................................................................ $฀ 470,000 $฀ 445,000 $฀ 735,522 $฀ 955,737 $฀ 586,949
Total฀net฀debt(16)฀.............................................................................. $฀ 433,863 $฀ 464,598 $฀ 722,506 $฀ 972,368 $฀ 582,539
Total฀stockholders’฀equity฀.............................................................. $฀ 722,315 $฀ 631,244 $฀ 468,356 $฀ 288,571 $฀ 156,271
Selected฀Store฀Data:
Comparable฀store฀sales฀growth(17)฀.................................................. 6.1% 3.1% 5.5% 6.2% 4.4%
Number฀of฀stores฀at฀beginning฀of฀year฀.......................................... 2,539 2,435 2,484 1,729 1,617
฀ New฀stores฀.................................................................................. 125 125 110 781 140
฀ Closed฀stores(18)฀........................................................................... (12) (21) (159) (26) (28)
Number฀of฀stores,฀end฀of฀period฀.................................................... 2,652 2,539 2,435 2,484 1,729
Relocated฀stores฀.............................................................................. 34 32 39 18 10
Stores฀with฀commercial฀delivery฀program,฀end฀of฀period฀............ 1,945 1,625 1,411 1,370 1,210
Total฀commercial฀sales,฀as฀a฀percentage฀of฀total฀retail฀sales฀........ 18.4% 15.8% 15.0% 16.8% 16.5%
Total฀store฀square฀footage,฀end฀of฀period฀...................................... 19,734 18,875 18,108 18,717 13,325
Average฀net฀sales฀per฀store(19)฀......................................................... $฀ 1,453 $฀ 1,379 $฀ 1,303 $฀ 1,346 $฀ 1,295
Average฀net฀sales฀per฀square฀foot(20)฀.............................................. $฀ 195 $฀ 186 $฀ 174 $฀ 175 $฀ 168
฀ (1)฀ ฀Our฀fiscal฀year฀consists฀of฀52฀or฀53฀weeks฀ending฀on฀the฀Saturday฀nearest฀to฀December฀31.฀All฀fiscal฀years฀presented฀are฀52฀weeks,฀with฀the฀exception฀of฀2003,฀which฀
consists฀of฀53฀weeks.
฀ (2)฀ ฀The฀statement฀of฀operations฀data฀for฀each฀of฀the฀years฀presented฀reflects฀the฀operating฀results฀of฀the฀wholesale฀segment฀as฀discontinued฀operations.
฀ (3)฀ ฀Represents฀restocking฀and฀handling฀fees฀associated฀with฀the฀return฀of฀inventory฀as฀a฀result฀of฀our฀supply฀chain฀initiatives.
฀ (4)฀ ฀Selling,฀general฀and฀administrative฀expenses฀exclude฀certain฀charges฀disclosed฀separately฀and฀discussed฀in฀notes฀(5),฀(6),฀(7),฀(8),฀and฀(9)฀below.
฀ (5)฀ ฀Represents฀costs฀of฀relocating฀certain฀equipment฀held฀at฀facilities฀closed฀as฀a฀result฀of฀our฀supply฀chain฀initiatives.
฀ (6)฀ ฀Represents฀the฀devaluation฀of฀certain฀property฀held฀for฀sale,฀including฀the฀$1.6฀million฀charge฀taken฀in฀the฀first฀quarter฀of฀2001฀and฀a฀$10.7฀million฀charge฀taken฀in฀
the฀fourth฀quarter฀of฀2001.
฀ (7)฀ ฀Represents฀expenses฀related฀primarily฀to฀lease฀costs฀associated฀with฀27฀Advance฀Auto฀Parts฀stores฀identified฀to฀be฀closed฀at฀December฀29,฀2001฀as฀a฀result฀of฀the฀
Discount฀acquisition.
฀ (8)฀ ฀Represents฀certain฀expenses฀related฀to,฀among฀other฀things,฀overlapping฀administrative฀functions฀and฀store฀conversions฀as฀a฀result฀of฀the฀Discount฀acquisition.
฀ (9)฀ ฀Represents฀non-cash฀compensation฀expense฀related฀to฀stock฀options฀granted฀to฀certain฀of฀our฀team฀members,฀including฀a฀charge฀of฀$8.6฀million฀in฀the฀fourth฀quarter฀
of฀2001฀related฀to฀variable฀provisions฀of฀our฀stock฀option฀plans฀that฀were฀in฀place฀when฀we฀were฀a฀private฀company฀and฀eliminated฀in฀2001.
(10)฀ ฀Shares฀ outstanding฀ for฀ each฀ of฀ the฀ years฀ presented฀ gives฀ effect฀ to฀ a฀ 2฀ for฀ 1฀ stock฀ split฀ effectuated฀ by฀ us฀ in฀ the฀ form฀ of฀ a฀ 100%฀ stock฀ dividend฀ distributed฀ on฀฀
January฀2,฀2004.
(11)฀ ฀Inventory฀turnover฀is฀calculated฀as฀cost฀of฀sales฀divided฀by฀the฀average฀of฀beginning฀and฀ending฀inventories.฀The฀fiscal฀2003฀cost฀of฀sales฀excludes฀the฀effect฀of฀the฀
53rd฀week฀in฀the฀amount฀of฀$34.3฀million.฀The฀fiscal฀2001฀amounts฀were฀calculated฀by฀reducing฀the฀Discount฀inventory฀balances฀by฀one-thirteenth฀to฀reflect฀our฀
ownership฀of฀that฀inventory฀from฀December฀2,฀2001฀(the฀acquisition฀date)฀through฀December฀29,฀2001.
(12)฀ ฀Inventory฀per฀store฀calculated฀as฀ending฀inventory฀divided฀by฀ending฀store฀count.฀Ending฀inventory฀used฀in฀this฀calculation฀excludes฀certain฀inventory฀related฀to฀the฀
wholesale฀segment฀with฀the฀exception฀of฀fiscal฀2003฀and฀fiscal฀2004.
(13)฀ ฀Accounts฀payable฀to฀inventory฀ratio฀is฀calculated฀as฀ending฀accounts฀payable฀divided฀by฀ending฀inventory.฀Beginning฀in฀fiscal฀2004,฀as฀a฀result฀of฀our฀new฀vendor฀
financing฀program,฀we฀aggregate฀financed฀vendor฀accounts฀payable฀with฀ending฀accounts฀payable฀to฀calculate฀our฀accounts฀payable฀to฀inventory฀ratio.
(14)฀ ฀Net฀working฀capital฀is฀calculated฀by฀subtracting฀current฀liabilities฀from฀current฀assets.
(15)฀ ฀Capital฀expenditures฀for฀2001฀exclude฀ $34.1฀million฀for฀our฀November฀ 2001฀purchase฀of฀Discount’s฀Gallman,฀Mississippi฀distribution฀facility฀from฀ the฀lessor฀in฀
connection฀with฀the฀Discount฀acquisition.
(16)฀ ฀Net฀debt฀includes฀total฀debt฀and฀bank฀overdrafts,฀less฀cash฀and฀cash฀equivalents.
(17)฀ ฀Comparable฀ store฀ sales฀ is฀ calculated฀ based฀ on฀ the฀ change฀ in฀ net฀ sales฀ starting฀ once฀ a฀ store฀ has฀ been฀ open฀ for฀ 13฀ complete฀ accounting฀ periods฀ (each฀ period฀฀
represents฀ four฀ weeks).฀ Relocations฀ are฀ included฀ in฀ comparable฀ store฀ sales฀ from฀ the฀ original฀ date฀ of฀ opening.฀ Stores฀ acquired฀ in฀ the฀ Discount฀ acquisition฀ are฀
included฀in฀the฀comparable฀sales฀calculation฀beginning฀in฀December฀2002,฀which฀was฀13฀complete฀accounting฀periods฀after฀the฀acquisition฀date฀of฀November฀28,฀
2001.฀We฀do฀not฀include฀net฀sales฀from฀the฀35฀Western฀Auto฀retail฀stores฀in฀our฀comparable฀store฀calculation฀as฀a฀result฀of฀their฀unique฀product฀offerings,฀including฀
automotive฀service฀and฀tires.฀In฀2003,฀the฀comparable฀store฀sales฀calculation฀included฀sales฀from฀our฀53rd฀week฀compared฀to฀our฀first฀week฀of฀operation฀in฀2003฀(the฀
comparable฀calendar฀week).฀In฀2004,฀as฀a฀result฀of฀the฀53rd฀week฀in฀2003,฀the฀comparable฀store฀sales฀calculation฀excludes฀week฀one฀of฀sales฀from฀2003.
(18)฀ ฀Closed฀stores฀in฀2002฀include฀133฀Discount฀and฀Advance฀stores฀closed฀as฀part฀of฀the฀integration฀of฀Discount.
(19)฀ ฀Average฀net฀sales฀per฀store฀is฀calculated฀ as฀net฀sales฀divided฀by฀the฀average฀of฀beginning฀ and฀ending฀number฀ of฀stores฀ for฀the฀respective฀period.฀The฀fiscal฀2003฀฀
net฀sales฀exclude฀the฀effect฀of฀the฀53rd฀week฀in฀the฀amount฀of฀$63.0฀million.฀The฀fiscal฀2001฀amounts฀were฀calculated฀by฀reducing฀the฀number฀of฀Discount฀stores฀by฀
one-thirteenth฀to฀reflect฀our฀ownership฀of฀Discount฀from฀December฀2,฀2001฀(the฀acquisition฀date)฀through฀December฀29,฀2001.
(20)฀ ฀Average฀net฀sales฀per฀square฀foot฀is฀calculated฀as฀net฀sales฀divided฀by฀the฀average฀of฀the฀beginning฀and฀ending฀total฀store฀square฀footage฀for฀the฀respective฀period.฀
The฀fiscal฀2003฀net฀sales฀exclude฀the฀effect฀of฀the฀53rd฀week฀in฀the฀amount฀of฀$63.0฀million.฀The฀fiscal฀2001฀amounts฀were฀calculated฀by฀reducing฀the฀number฀of฀
Discount฀stores฀by฀one-thirteenth฀to฀reflect฀our฀ownership฀of฀Discount฀from฀December฀2,฀2001฀(the฀acquisition฀date)฀through฀December฀29,฀2001.