Advance Auto Parts 2004 Annual Report Download - page 3

5-Year฀Financial฀
฀
2000–2004฀
Compounded฀
Growth
฀฀ ฀Fiscal฀Year(1) ฀฀
฀ ฀ ฀ 2004 ฀ ฀ 2003 ฀ 2002 ฀ 2001(a) ฀ 2000 ฀
(in฀thousands,฀except฀per฀share฀data)
Statement฀of฀Operations฀Data:
Net฀sales(2)฀............................................................................ 14.8% $฀3,770,297 $฀3,430,680 $฀3,204,140 $฀2,419,746 $฀2,167,308
Gross฀profit(3)฀........................................................................ 18.8% 1,753,371 1,575,756 1,434,407 1,062,152 881,013
Comparable฀operating฀income(4)฀.......................................... 38.8% 328,758 289,441 231,883 119,127 88,462
Comparable฀income฀from฀continuing฀operations(5)฀.............. 87.6% 188,027 155,091 94,267 35,652 15,188
Comparable฀income฀from฀continuing฀operations฀฀
per฀diluted฀share(5)฀........................................................... $฀ 2.49 $฀ 2.08 $฀ 1.30 $฀ 0.61 $฀ 0.27
Weighted฀average฀diluted฀shares฀outstanding฀..................... 75,481 74,743 72,376 58,316 57,222
Selected฀Store฀Data:
Comparable฀store฀sales฀growth฀............................................ 6.1% 3.1% 5.5% 6.2% 4.4%
Number฀of฀stores,฀end฀of฀period฀.......................................... 2,652 2,539 2,435 2,484 1,729
Total฀store฀square฀footage,฀end฀of฀period฀฀
(in฀thousands)฀.................................................................. 19,734 18,875 18,108 18,717 13,325
Average฀net฀sales฀per฀store(6)฀............................................... $฀ 1,453 $฀ 1,379 $฀ 1,303 $฀ 1,346 $฀ 1,295
Average฀net฀sales฀per฀square฀foot(7)฀..................................... $฀ 195 $฀ 186 $฀ 174 $฀ 175 $฀ 168
Balance฀Sheet฀Data:
Inventory฀............................................................................... $฀1,201,450 $฀1,113,781 $1,048,803 $฀ 982,000 $฀ 788,914
Net฀working฀capital฀............................................................... 416,302 372,509 462,896 442,099 318,583
Total฀assets฀........................................................................... 2,201,962 1,983,071 1,965,225 1,950,615 1,356,360
Total฀net฀debt(8)฀..................................................................... 433,863 464,598 722,506 972,368 582,539
Total฀stockholders’฀equity฀..................................................... ฀ ฀ ฀ ฀ 722,315฀ ฀ 631,244฀ 468,356฀ 288,571฀ 156,271฀
(1)฀฀Our฀fiscal฀year฀consists฀of฀52฀or฀53฀weeks฀ending฀on฀the฀Saturday฀nearest฀to฀December฀31.฀All฀fiscal฀years฀presented฀consist฀of฀52฀weeks.฀The฀operating฀results฀of฀the฀53rd฀week฀in฀
fiscal฀2003฀have฀been฀excluded฀as฀reconciled฀in฀the฀below฀footnotes.
(2)฀฀Net฀sales฀for฀fiscal฀year฀2003฀exclude฀the฀effect฀of฀the฀53rd฀week฀in฀the฀amount฀of฀$63,016.
(3)฀฀Gross฀profit฀for฀fiscal฀year฀2003฀excludes฀the฀effect฀of฀the฀53rd฀week฀in฀the฀amount฀of฀$28,762.฀Gross฀profit฀for฀fiscal฀2001฀excludes฀a฀non-recurring฀charge฀of฀$9,099฀associated฀with฀
our฀supply฀chain฀initiatives฀recorded฀in฀the฀fourth฀quarter.
(4)฀฀Comparable฀operating฀income฀excludes฀certain฀charges฀as฀included฀in฀the฀following฀reconciliation฀of฀this฀measurement฀to฀our฀operating฀income฀presented฀under฀generally฀accepted฀
accounting฀policies฀in฀our฀financial฀statements฀contained฀in฀the฀Financial฀Review฀of฀this฀annual฀report.
฀ ฀ ฀ ฀ ฀ 2004 ฀ ฀ 2003 ฀ 2002 ฀ 2001(a) ฀ 2000 ฀
Comparable฀operating฀income฀.................................................................................... $฀ 328,758 $฀ 289,441 $฀ 231,883 $฀ 119,127 $฀ 88,462
Supply฀chain฀initiatives฀............................................................................................... —— — (10,492) —
Impairment฀of฀assets฀held฀for฀sale฀.............................................................................. —— — (10,700) (856)
Merger-related฀restructuring฀........................................................................................ —— (597) (3,719) —
Merger฀and฀integration฀................................................................................................ —(10,417)(34,935) (1,135) —
Stock฀option฀compensation฀......................................................................................... —— — (8,611) (729)
Operations฀effect฀of฀53rd฀week฀....................................................................................฀ ฀ —฀ ฀ 9,210฀ —฀ —฀ —฀
Operating฀income฀........................................................................................................฀ ฀ $฀ 328,758฀ ฀ $฀ 288,234฀ $฀ 196,351฀ $฀ 84,470฀ $฀ 86,877฀
(a)฀฀The฀fiscal฀2001฀charges฀represent฀only฀those฀taken฀during฀the฀fourth฀quarter.฀For฀more฀information฀see฀the฀Selected฀Financial฀Data฀section฀in฀the฀Financial฀Review฀of฀this฀annual฀report.
(5)฀฀Comparable฀income฀from฀continuing฀operations฀excludes฀the฀items฀in฀footnote฀(4)฀above฀and฀the฀early฀extinguishment฀of฀debt฀and฀cumulative฀effect฀of฀a฀change฀in฀accounting฀prin-
ciple.฀The฀following฀is฀a฀reconciliation฀of฀comparable฀income฀from฀continuing฀operations฀to฀income฀from฀continuing฀operations฀presented฀under฀generally฀accepted฀accounting฀
policies฀in฀our฀financial฀statements฀contained฀in฀the฀Financial฀Review฀of฀this฀annual฀report.
฀ ฀ ฀ ฀ ฀ 2004 ฀ ฀ 2003 ฀ 2002 ฀ 2001(a) ฀ 2000 ฀
Comparable฀income฀from฀continuing฀operations฀........................................................ $฀ 188,027 $฀ 155,091 $฀ 94,267 $฀ 35,652 $฀ 15,188
Add฀back฀items฀from฀footnote(4)฀................................................................................. —(1,207)(35,532) (34,657) (1,585)
Interest฀expense฀in฀53rd฀week฀..................................................................................... —(368)———
Loss฀on฀extinguishment฀of฀debt฀.................................................................................. —(46,887)(16,822) (6,106) 4,692
Tax฀impact฀of฀above฀items฀...........................................................................................฀ ฀ —฀ ฀ 18,658฀ 20,235฀ 16,182฀ (1,144)
Income฀from฀continuing฀operations฀............................................................................฀ ฀ $฀ 188,027฀ ฀ $฀ 125,287฀ $฀ 62,148฀ $฀ 11,071฀ $฀ 17,151฀
Income฀from฀continuing฀operations฀per฀diluted฀share฀................................................฀ ฀ $฀ 2.49฀ ฀ $฀ 1.68฀ $฀ 0.86฀ $฀ 0.19฀ $฀ 0.30฀
(a)฀฀The฀fiscal฀2001฀charges฀represent฀only฀those฀taken฀during฀the฀fourth฀quarter.฀For฀more฀information฀see฀the฀Selected฀Financial฀Data฀section฀in฀the฀Financial฀Review฀of฀this฀annual฀report.
(6)฀฀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฀$63,016.฀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.
(7)฀฀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฀$63,016.฀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.
(8)฀฀Net฀debt฀includes฀total฀debt฀and฀bank฀overdrafts,฀less฀cash฀and฀cash฀equivalents฀as฀presented฀on฀the฀accompanying฀financial฀statements.
1
Advance฀Auto฀Parts,฀Inc.฀and฀Subsidiaries