Advance Auto Parts Reports Strong Third Quarter 2001 Results

Autoparts Report, Nov 18, 2001

Advance Auto Parts said it had record sales and profits for the third quarter ended October 6, 2001. The results reflect continued strong comparable store sales growth, increases in gross margin, and leveraging of expenses, it said.

The company reported that sales for the third quarter increased 8.4 percent to $598.8 million from $552.1 million last year. Retail sales rose approximately 10.0 percent to $580.1 million from $527.4 million. Comparable store sales increased a strong 7.1 percent for the fiscal 2001 third quarter compared to a 4.0 percent increase in the prior-year period. Both the "do-it-yourself" and "do-it-for-me" businesses showed continued sales and customer count growth, the company reported.

Operating income in the third quarter of fiscal 2001 increased 24.8 percent to $37.6 million from $30.1 million. Net income increased 24.6 percent to $15.5 million compared to $12.4 million in 2000 and by 63.1 percent prior to the gain from early extinguishment of debt last year.

Larry Castellani, Chief Executive Officer, said, "We are extremely pleased with our operating performance during the third quarter. Our strong results reflect growth in both the 'do-it-yourself' and 'do-it-for-me' businesses, our ability to leverage expenses, our broad-based merchandising and marketing initiatives, and a fundamentally solid market for auto parts retailers."

Sales for the first three fiscal quarters of 2001 were $1,935.6 million, an increase of 8.3 percent over prior-year sales of $1,787.4 million. Retail sales for the three quarters increased 10.0 percent to $1,855.7 million from $1,687.7 million. Comparable store sales increased 6.5 percent over the year-ago period.

Gross profit was up 12.1 percent for the fiscal 2001 year to date. EBITDA for the first three quarters of 2001 increased 21.9 percent to $163.2 million from $133.9 million for the same period last year.