Advance Auto Parts 2013 Annual Report Download - page 4

acquisition of BWP — the second largest
operator of owned and independent Carquest
stores. As a result of the acquisition and
subsequent integration of BWP, we had the
opportunity to begin working with General Parts
which enabled us to gain valuable insights
regarding our potential combined strengths. I
am condent and excited about the opportunity
this combination presents for our shareholders
and our more than 71,000 Team Members.
Looking back at 2013, our focus and related
initiatives were concentrated on execution of our
fundamentals aimed at driving our sales growth,
improving our customer service and growing our
prots. We made signicant strides in our overall
operations with in-store execution improvements
and meaningful steps toward improved efciency
and effectiveness. Specically, we have been
simplifying how we run our stores, driving
productivity improvements and investing in our
Team Members through comprehensive product
and leadership training programs. Overall, we
are very proud of the progress we made as we
remained focused on execution and the team
worked with intensity to improve our customer
experience and deliver on our priorities.
2001
Acquired Discount Auto Parts, Inc.,
a regional auto parts chain; Advance
becomes a publicly traded company.
Strengthening Our Market Position
1998
Advance Auto Parts buys Western Auto
Supply Company/Parts America, which
doubles the company’s size.
2001 – 2005
Made a number of small acquisitions
including Trak Auto Parts, Carport
Auto Parts and Lappen Auto Supply.
DIY
60%
DIFM
40%
DIY
43%
DIFM
57%
PRE-ACQUISITION:
DIY and DIFM (Commercial)
Sales Mix (4)
POST-ACQUISITION:
DIY and DIFM (Commercial)
Sales Mix (5)
(1) Our earnings per diluted share reported in the referenced chart has been
reported on a comparable operating basis to exclude the impact of
transaction expenses associated with our acquisition of GPI on January
2, 2014 and integration costs associated with our integration of BWP
in fiscal 2013 and store divestiture expenses in fiscal 2009. Refer to
“Selected Consolidated Financial Data” on page 20 of our 2013 Form 10-K
included in this Annual Report for the corresponding earnings per share
results reported on a GAAP basis. Refer to the Management Overview of
“Management’s Discussion and Analysis of Financial Condition and Results
of Operations” on page 22 of our 2013 10-K and page 21 of our 2010 10-K
for further details of the scal 2013 and scal 2009 items, respectively.
(2) Our nancial results reported in the referenced performance measures have
been reported on a comparable operating basis to exclude the impact of
transaction expenses associated with our acquisition of GPI on January 2,
2014 and integration costs associated with our integration of BWP in scal
2013 and store divestiture expenses in scal 2009. Refer to “Selected
Consolidated Financial Data” on page 20 of our 2013 Form 10-K included
in this Annual Report for an explanation of the calculation of these metrics,
excluding ROIC as dened below, as well as the corresponding nancial
results reported on a GAAP basis.
(3) Return on invested capital (ROIC) is a non-GAAP measure and is dened as
net operating prot after taxes divided by average invested capital. Invested
capital consists of total assets and liabilities, excluding cash and debt, and
estimated capital lease obligation calculated as annualized rent expense
for the applicable year times six years. Refer to our fourth quarter 2013
earnings release for further details, including the detailed calculation.
(4) As of Fiscal Year 2013.
(5) As of Fiscal Year 2013 on a pro forma basis.
*Footnotes