Advance Auto Parts 2012 Annual Report Download - page 3
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On behalf of the 55,000 Advance Auto Parts
Team Members, I would like to present to you
our 2012 Annual Report. 2012 was a special
year for Advance as we celebrated the 80th
anniversary of our company and 80 years of
serving our customers. We reached several
important strategic and operational milestones,
which were the direct result of the hard
work and dedication of our Team Members.
Strategically, we entered the boroughs of
New York City through the acquisition of 21
Strauss Autopart Stores and 6 Steinway
Auto Parts locations. Collectively, we added
137 stores in 2012, which is our largest
number of new store additions since 2007.
More importantly, our 2012 class of new stores
is our best performing class of new stores in
recent years and establishes a great platform
for us to accelerate our new store openings in
the future. At the end of fiscal 2012, our total
store count was 3,794, including 218 Autopart
International stores.
An important strategic accomplishment was
the acquisition of BWP Distributors, which
we closed at the outset of the new fiscal
year on December 31, 2012. This acquisition
strengthens our position in the very large and
competitive Northeast market and allowed us
to gain proven leadership, an outstanding team
and access to a first-class customer base.
We expect BWP will provide us a significant
opportunity to learn and accelerate the growth
of our Commercial business. We are excited
to welcome BWP, one of the most preeminent
commercial players in the industry, to the
Advance organization.
Operationally, we continued to focus on
execution of the fundamentals and completing
the rollout of key capabilities that will increase
our parts availability and grow our business
with Commercial customers. These capabilities
include the launch of our in-house commercial
credit program, the opening of our new daily
replenishment distribution center in Remington,
Indiana, our new B2B ordering platform
and continued hub store expansions. These
milestones are significant steps on our journey
to compete more effectively in the commercial
market. Our focus on improved delivery times,
more effective weekend staffing and local
product availability positions us well for stronger
performance in 2013.
Although we achieved many significant
milestones during the year, our industry and
business faced considerable headwinds
largely as a result of unseasonably warmer
temperatures and lower overall demand for
auto parts. This slowdown was reflected in our
total sales increase of 0.6% to $6.21 billion
compared with revenue of $6.17 billion in 2011.
Our diluted earnings per share increased 2.2%
to $5.22. We are not satisfiedwith these results
and are committed to improving our results in
2013 and beyond.
Each year, we support many causes locally,
regionally and nationally. We take great pride in
our ability to positively impact so many lives. It’s
one of the many ways service is our best part.
2012 Annual Report | 80 years of service
Letter to our Stockholders
Darren R. Jackson President and Chief Executive Officer