AutoZone 2004 Annual Report Download - page 26
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Reconciliation of Non-GAAP Financial Measure: After-Tax Return on Invested Capital: The following table reconciles the percentages of
after-taxreturnoninvestedcapital,or“ROIC,”bothincludingandexcludingthefiscal2001restructuringandimpairmentcharges,tonet
income.After-taxreturnoninvestedcapitaliscalculatedasafter-taxoperatingprofit(excludingrent)dividedbyaverageinvestedcapital
(whichincludesafactortocapitalizeoperatingleases).TheROICpercentagesarepresentedinthe“SelectedFinancialData.”
FiscalYearEndedAugust
(inthousands,exceptpershareandpercentagedata) 2004 2003 2002 2001 2000
Netincome $ 566,202 $ 517,604 $ 428,148 $ 175,526 $ 267,590
Adjustments:
After-taxinterest 58,003 52,686 49,471 61,560 47,241
After-taxrent 73,086 68,764 61,348 61,396 58,853
After-taxreturn 697,291 639,054 538,967 298,482 373,684
After-taxrestructuringandimpairmentcharges — — — 95,822 —
After-taxreturn,excludingrestructuringandimpairmentcharges $ 697,291 $ 639,054 $ 538,967 $ 394,304 $ 373,684
Averagedebt(1) $1,787,307 $1,484,987 $1,329,077 $1,445,899 $1,182,055
Averageequity(2) 292,802 580,176 802,289 879,912 1,149,104
Rentx6(3) 701,621 663,990 594,192 602,382 574,290
Pre-taxinvestedcapital 2,781,730 2,729,153 2,725,558 2,928,193 2,905,449
Averageequity,excludingrestructuringandimpairmentcharges(4) — — — 6,844 —
Pre-taxinvestedcapital,excludingrestructuringandimpairmentcharges $2,781,730 $2,729,153 $2,725,558 $2,935,037 $2,905,449
ROIC 25.1% 23.4% 19.8% 10.1% 12.9%
ROIC,beforerestructuringandimpairmentcharges 25.1% 23.4% 19.8% 13.4%
(5) 12.9%
(1) Averagedebtisequaltotheaverageofourlong-termdebtmeasuredattheendofthepriorfiscalyearandeachofthe13fiscalperiodsinthecurrentfiscalyear.
Long-termdebt(inthousands)was$888,340atAugust28,1999.
(2) Averageequityisequaltotheaverageofourstockholders’equitymeasuredattheendofthepriorfiscalyearandeachofthe13fiscalperiodsofthecurrentfiscal
year.Stockholders’equity(inthousands)was$1,323,801atAugust28,1999.
(3) Rentismultipliedbyafactorofsixtocapitalizeoperatingleasesinthedeterminationofpre-taxinvestedcapital.
(4) AverageequityatAugust25,2001increasedby$6.8millionasaresultofexcludingrestructuringandimpairmentcharges.
(5) ROICexcludingnonrecurringchargeswaspresentedas14.3%inourForm10-KforthefiscalyearendedAugust31,2002,buthasbeenrevisedtoreflectarolling
13-periodaverageofdebtandequitytoconformwithourcurrentmethodologyforcalculatingROIC.
ReconciliationofNon-GAAPFinancialMeasure:CashFlowBeforeShareRepurchasesandChangesinDebt: Thefollowingtablereconciles
netincrease(decrease)incashandcashequivalentstocashflowbeforesharerepurchasesandchangesindebt,whichispresentedinthe
“SelectedFinancialData.”
FiscalYearEndedAugust
(inthousands) 2004 2003 2002 2001 2000
Netincrease(decrease)incashandcashequivalents $ (16,250) $ 22,796 $ (3,709) $ 8,680 $ (6,299)
Less:Increase(decrease)indebt 322,405 352,328 (30,885) (24,535) 361,597
Less:Sharerepurchases (848,102) (891,095) (698,983) (366,097) (639,925)
Cashflowbeforesharerepurchasesandchangesindebt $509,447 $561,563 $726,159 $399,312 $272,029
ReconciliationofNon-GAAPFinancialMeasure:Fiscal2002ResultsExcludingImpactof53rdWeek: Thefollowingtablesummarizesthe
favorableimpactoftheadditionalweekofthe53weekfiscalyearendedAugust31,2002.
(inthousands,exceptpershareandpercentagedata)
Fiscal2002
ResultsofOperations
Percent
ofRevenue
Unaudited
Resultsof
Operations
for53rdWeek
Fiscal2002
ResultsofOperations
Excluding53rdWeek
Percent
ofRevenue
Netsales $5,325,510 100.0% $(109,079) $5,216,431 100.0%
Costofsales 2,950,123 55.4% (58,688) 2,891,435 55.4%
Grossprofit 2,375,387 44.6% (50,391) 2,324,996 44.6%
Operatingexpenses 1,604,379 30.1% (20,911) 1,583,468 30.4%
Operatingprofit 771,008 14.5% (29,480) 741,528 14.2%
Interestexpense,net 79,860 1.5% — 79,860 1.5%
Incomebeforetaxes 691,148 13.0% (29,480) 661,668 12.7%
Incometaxes 263,000 5.0% (11,210) 251,790 4.8%
Netincome $ 428,148 8.0% $ (18,270) $ 409,878 7.9%
Dilutedearningspershare $ 4.00 $ (0.17) $ 3.83