Advance Auto Parts 2005 Annual Report Download - page 9

Advance Auto Parts, Inc. I Annual Report 2005 I 7
FISCAL YEAR(1)
2005 2004 2003 2002 2001(a)
Reconciliation of Operating Income:
Comparable operating income ............................................................. $408,492 $328,758 $289,441 $231,883 $119,127
Supply chain initiatives.......................................................................... - - - - (10,492)
Impairment of assets held for sale........................................................ - - - - (10,700)
Merger related restructuring ................................................................. - - - (597) (3,719)
Merger and integration ......................................................................... - - (10,417) (34,935) (1,135)
Stock option compensation................................................................... - - - - (8,611)
Operations effect on 53rd week ............................................................ - - 9,210 - -
Operating income ................................................................................. $408,492 $328,758 $288,234 $196,351 $ 84,470
2005 2004 2003 2002 2001(a)
Reconciliation of Net Income and Earnings Per Share:
Comparable income from continuing operations................................. $234,725 $188,027 $155,091 $94,267 $35,652
Add back items from footnote (4) ....................................................... - - (1,207) (35,532) (34,657)
Interest expense in 53rd week.............................................................. - - (368) - -
Loss on extinguishment of debt........................................................... - - (46,887) (16,822) (6,106)
Tax impact of above items.................................................................... - - 18,658 20,235 16,182
Income from continuing operations..................................................... $234,725 $188,027 $125,287 $62,148 $11,071
Income from continuing operations per diluted share (6) .................. $2.13 $1.66 $1.12 $0.57 $0.13
footnotes:
(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 accept-
ed accounting policies in our financial statements con-
tained 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 principle. 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.
(6) Amounts referenced reflect the Company's 3-for-2
stock split, which took effect September 26, 2005.
(7) Excludes Autopart International, Inc. (AI).
(8) 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, excluding AI. The fiscal
2003 net sales exclude the effect of the 53rd week in the
amount of $63,016 million. The fiscal 2001 amounts were
calculated giving effect to the Discount retail net sales and
number of stores for the period December 2, 2001 (the
acquisition date) through December 29, 2001.
(9) 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, excluding
AI. The fiscal 2003 net sales exclude the effect of the 53rd
week in the amount of $63,016 million. The fiscal 2001
amounts were calculated giving effect to the Discount retail
net sales and number of stores for the period December 2,
2001 (the acquisition date) through December 29, 2001.
(10) Net debt includes total debt and bank overdrafts,
less cash and cash equivalents as presented in our
financial statements contained in the Financial Review
of this annual report.
(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-Year Average
Annual Compounded
Growth 2005 2004 2003 2002 2001
Statement of Operations Data:
(in thousands, except per share data)
Net sales(2) ...............................................................................15.2% $4,264,971 $3,770,297 $3,430,680 $3,204,140 $2,419,746
Gross profit (3) .........................................................................17.4% 2,014,478 1,753,371 1,575,756 1,434,407 1,062,152
Comparable operating income (4) ............................................36.1% 408,492 328,758 289,441 231,883 119,127
Comparable income from continuing operations (5) ................60.2% 234,725 188,027 155,091 94,267 35,652
Comparable income from continuing operations
per diluted share (5)(6).................................................................... $2.13 $1.66 $1.39 $0.87 $0.41
Weighted average diluted shares outstanding (6)................................ 109,987 113,222 112,115 108,564 87,474
Selected Store Data:
Comparable store sales growth ………………………………. ........ 8.7% 6.1% 3.1% 5.5% 6.2%
Number of stores, end of period………………………………......... 2,872 2,652 2,539 2,435 2,484
Total retail store square footage, end
of period (in thousands) (7)…………………………………....... 20,899 19,734 18,875 18,108 18,717
Average net retail sales per store (8).................................................... $1,551 $1,453 $1,379 $1,303 $1,346
Average net retail sales per square foot (9) ......................................... $208 $195 $186 $174 $175
Balance Sheet Data:
Inventory............................................................................................... $1,367,099 $1,201,450 $1,113,781 $1,048,803 $982,000
Net working capital ……………………………………………........ 406,476 416,302 372,509 462,896 442,099
Total assets……………………………………………………......... 2,542,149 2,201,962 1,983,071 1,965,225 1,950,615
Total net debt (10) ………………………………………………..... 448,187 433,863 464,598 722,506 972,368
Total stockholders' equity …………………………………….. ........ 919,771 722,315 631,244 468,356 288,571