Napa Auto Parts 2002 Annual Report Download - page 25

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used in deriving estimates for interim reporting typically result
in adjustments upon accurate determination at year-end.
The effect of these adjustments in 2002 and 2001 was not
significant.
The cumulative effect of a change in accounting principle
related to goodwill impairment as discussed above resulted in
a decrease in net income in the first quarter of 2002 of $2.26
per share. Without the cumulative effect adjustment, diluted
income per share would have been $.50 in the quarter ended
March 31, 2002. The 2001 Facility Consolidation, Impairment
and Other Charges discussed above resulted in a decrease in
net income in the fourth quarter of 2001 of $.37 per share
diluted. Without the 2001 Charges, diluted income per share
would have been $.51 per share in the quarter ended
December 31, 2001.
The following is a summary of the quarterly results of operations
for the years ended December 31, 2002 and 2001.
Three Months Ended
March 31, June 30, Sept. 30, Dec. 31,
(in thousands except for per share data)
2002
Net Sales $1,977,743 $2,130,924 $2,156,759 $1,993,501
Gross Profit 603,969 644,232 649,793 656,184
Net Income before
cumulative effect
of a change in
accounting principle 87,027 96,047 94,027 90,399
Cumulative effect of
a change in
accounting principle (395,090) — — —
Net (Loss)/Income (308,063) 96,047 94,027 90,399
Diluted Earnings/
(Loss) per share:
Before change in
accounting principle .50 .55 .54 .52
After change in
accounting principle (1.76) .55 .54 .52
2001
Net Sales $2,054,972 $2,118,976 $2,099,191 $1,947,529
Gross Profit 623,159 642,977 630,312 625,046
Net Income 89,273 94,688 88,216 24,970
Diluted Earnings
per share .52 .55 .51 .14
Forward-Looking Statements:
Statements in this report constitute forward-looking statements
that are subject to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. The Company cautions
that its forward-looking statements involve risks and uncertainties.
The Company undertakes no duty to update its forward-looking
statements, which reflect the Company's beliefs, expectations,
and plans as of the present. Actual results or events may differ
materially from those indicated as a result of various important
factors. Such factors include, but are not limited to, changes in
general economic conditions, the growth rate of the market for
the Company's products and services, the ability to maintain
favorable supplier arrangements and relationships, competitive
product and pricing pressures, the effectiveness of the Company's
promotional, marketing and advertising programs, changes in
laws and regulations, including changes in accounting and taxa-
tion guidance, the uncertainties of litigation, as well as other risks
and uncertainties discussed from time to time in the Company's
filings with the Securities and Exchange Commission.