AutoZone 4th Quarter Similar Retailer Gross sales Improve 4.3%; 4th


MEMPHIS, Tenn., Sept. 21, 2021 (GLOBE NEWSWIRE) — AutoZone, Inc. (NYSE: AZO) as we speak reported web gross sales of $4.9 billion for its fourth quarter (16 weeks) ended August 28, 2021, a rise of 8.1% from the fourth quarter of fiscal 2020 (16 weeks). Home identical retailer gross sales, or gross sales for shops open not less than one yr, elevated 4.3% for the quarter.

“Our sturdy gross sales and earnings this quarter are a testomony to our AutoZoners’ ongoing dedication to going the additional mile for our clients. Our retail enterprise carried out very properly this quarter ending with just about flat identical retailer gross sales on prime of final yr’s historic progress of over 20%.  And, our industrial enterprise progress continues to be exceptionally sturdy at 21.2%. The investments we’re making proceed to strengthen our aggressive positioning in all of the sectors and markets we compete. We’re optimistic about our progress prospects heading into our new fiscal yr,” mentioned Invoice Rhodes, Chairman, President and Chief Govt Officer.

For the quarter, gross revenue, as a proportion of gross sales, was 52.3%, a lower of 82 foundation factors versus the prior yr. The lower in gross margin was primarily pushed by the initiatives to speed up progress in our Business enterprise. Working bills, as a proportion of gross sales, was 31.0% versus 30.7% final yr. Our expense progress was primarily pushed by larger payroll to assist our gross sales and customer support initiatives, partially offset by a lower in pandemic associated bills. As well as, we’re investing in   know-how to underpin our progress initiatives and we’re seeing larger wage prices in our shops and distribution facilities.

Working revenue elevated 2.6% to $1.0 billion. Web revenue for the quarter elevated 6.1% over the identical interval final yr to $785.8 million, whereas diluted earnings per share elevated 15.5% to $35.72 from $30.93 within the year-ago quarter.

For the fiscal yr ended August 28, 2021, gross sales have been $14.6 billion, a rise of 15.8% from the prior yr, whereas home identical retailer gross sales have been up 13.6%. Gross revenue, as a proportion of gross sales, was 52.8% versus 53.6%. The lower in gross margin was primarily attributable to the initiatives to speed up progress in our Business enterprise. Working bills, as a proportion of gross sales, have been 32.6% versus 34.5%. The discount in working bills as a % of gross sales was pushed by sturdy gross sales progress and a lower in pandemic associated bills. For fiscal 2021, web revenue elevated 25.2% to $2.2 billion and diluted earnings per share elevated 32.3% to $95.19 from $71.93. Return on invested capital completed at 41.0%.

Underneath its share repurchase program, AutoZone repurchased 592 thousand shares of its widespread inventory for $900 million through the fourth quarter, at a median value of $1,519 per share. For the fiscal yr, the Firm repurchased 2.6 million shares of its widespread inventory for $3.4 billion, at a median value of $1,303 per share. At yr finish, the Firm had $417.6 million remaining underneath its present share repurchase authorization.

The Firm’s stock elevated 3.7% over the identical interval final yr, pushed by new shops and improved product assortment. Stock per retailer was $686 thousand versus $683 thousand final yr and $701 thousand final quarter. Web stock, outlined as merchandise inventories much less accounts payable, on a per retailer foundation, was adverse $203 thousand versus adverse $104 thousand final yr and adverse $167 thousand final quarter.

“Whereas the COVID-19 pandemic continues to affect our clients’ and AutoZoners’ lives, our major focus stays everybody’s well being and well-being. We’ll proceed to assist wherever we will to make our shops one of the best and most secure place to buy everybody’s automotive wants. We stay dedicated to serving to our AutoZoners throughout these troublesome occasions. As at all times, we’ll take nothing as a right whereas striving for continued gross sales progress in fiscal 2022. As we proceed to prudently make investments capital in our enterprise, we stay dedicated to our long-term, disciplined, method of accelerating working earnings and money move whereas using our steadiness sheet successfully,” mentioned Rhodes.

Through the quarter ended August 28, 2021, AutoZone opened 76 new shops within the U.S., 29 shops in Mexico and 5 shops in Brazil. At our fiscal yr finish, the Firm had 6,051 shops within the U.S., 664 in Mexico and 52 in Brazil for a complete retailer depend of 6,767.

AutoZone is the main retailer and a number one distributor of automotive alternative components and equipment within the Americas. Every AutoZone retailer carries an intensive product line for automobiles, sport utility autos, vans and light-weight vehicles, together with new and remanufactured automotive arduous components, upkeep objects, equipment, and non-automotive merchandise. Many shops even have a industrial gross sales program that gives industrial credit score and immediate supply of components and different merchandise to native, regional and nationwide restore garages, sellers, service stations and public sector accounts. We even have industrial packages in all shops in Mexico and Brazil. AutoZone additionally sells the ALLDATA model diagnostic and restore software program by www.alldata.com. Moreover, we promote automotive arduous components, upkeep objects, equipment and non-automotive merchandise by www.autozone.com and our industrial clients could make purchases by www.autozonepro.com. We additionally present product info on our Duralast branded merchandise by www.duralastparts.com. AutoZone doesn’t derive income from automotive restore or set up.

AutoZone will host a convention name this morning, Tuesday, September 21, 2021, starting at 10:00 a.m. (EDT) to debate its fourth quarter outcomes. This name is being internet solid and will be accessed, together with supporting slides, at AutoZone’s web site at www.autozone.com and clicking on Investor Relations. Buyers may additionally hearken to the decision by dialing (877) 407-8031. As well as, a phone replay will likely be accessible by dialing (877) 481-4010 by October 19, 2021,11:59 pm (EDT).

This launch consists of sure monetary info not derived in accordance with typically accepted accounting ideas (“GAAP”). These non-GAAP measures embrace changes to mirror return on invested capital, adjusted debt and adjusted debt to EBITDAR. The Firm believes that the presentation of those non-GAAP measures offers info that’s helpful to traders because it signifies extra clearly the Firm’s comparative year-to-year working outcomes, however this info shouldn’t be thought of an alternative to any measures derived in accordance with GAAP. Administration targets the Firm’s capital construction in an effort to preserve its funding grade credit score scores. The Firm believes that is essential info for the administration of its debt ranges and share repurchases. We’ve included a reconciliation of this extra info to probably the most comparable GAAP measures within the accompanying reconciliation tables.

Sure statements contained on this press launch represent forward-looking statements which can be topic to the secure harbor provisions of the Non-public Securities Litigation Reform Act of 1995. Ahead-looking statements usually use phrases corresponding to “imagine,” “anticipate,” “ought to,” “intend,” “plan,” “will,” “count on,” “estimate,” “venture,” “positioned,” “technique,” “search,” “might,” “may,” and comparable expressions. These are based mostly on assumptions and assessments made by our administration in mild of expertise and notion of historic traits, present situations, anticipated future developments and different components that we imagine to be applicable. These forward-looking statements are topic to a lot of dangers and uncertainties, together with with out limitation: product demand; vitality costs; climate; competitors; credit score market situations; money flows; entry to accessible and possible financing; future inventory repurchases; the affect of recessionary situations; client debt ranges; adjustments in legal guidelines or rules; dangers related to self-insurance; struggle and the prospect of struggle, together with terrorist exercise; the affect of public well being points, corresponding to the continuing international coronavirus pandemic; inflation; the power to rent, practice and retain certified staff; development delays; the compromising of confidentiality, availability or integrity of knowledge, together with cyber-attacks; historic progress price sustainability; downgrade of our credit score scores; damages to our fame; challenges in worldwide markets; failure or interruption of our info know-how techniques; origin and uncooked materials prices of suppliers; disruption in our provide chain; affect of tariffs; anticipated affect of latest accounting requirements; and enterprise interruptions. Sure of those dangers and uncertainties are mentioned in additional element within the “Threat Components” part contained in Merchandise 1A underneath Half 1 of the Firm’s Annual Report on Kind 10-Okay for the yr ended August 29, 2020, and these Threat Components must be learn fastidiously. Ahead-looking statements aren’t ensures of future efficiency, and precise outcomes, developments and enterprise selections might differ from these contemplated by such forward-looking statements, and occasions described above and within the “Threat Components” may materially and adversely have an effect on our enterprise. Nonetheless, it must be understood that it’s not attainable to determine or predict all such dangers and different components that might have an effect on these forward-looking statements. Ahead-looking statements communicate solely as of the date made. Besides as required by relevant regulation, we undertake no obligation to replace publicly any forward-looking statements, whether or not because of new info, future occasions or in any other case.

Contact Data:
Monetary: Brian Campbell at (901) 495-7005, brian.campbell@autozone.com
Media: David McKinney at (901) 495-7951, david.mckinney@autozone.com

 
 
AutoZone’s 4th Quarter Highlights – Fiscal 2021
 
Condensed Consolidated Statements of Operations
4th Quarter, FY2021
(in 1000’s, besides per share knowledge)
    GAAP Outcomes
    16 Weeks Ended   16 Weeks Ended
    August 28, 2021   August 29, 2020(2)
         
Web gross sales   $ 4,913,484     $ 4,545,968  
Price of gross sales     2,345,646       2,132,993  
Gross revenue     2,567,838       2,412,975  
Working, SG&A bills     1,523,808       1,394,930  
Working revenue (EBIT)     1,044,030       1,018,045  
Curiosity expense, web     58,119       65,638  
Revenue earlier than taxes     985,911       952,407  
Revenue taxes(1)     200,140       211,950  
Web revenue   $ 785,771     $ 740,457  
Web revenue per share:        
  Fundamental   $ 36.72     $ 31.67  
  Diluted   $ 35.72     $ 30.93  
Weighted common shares excellent:        
  Fundamental     21,400       23,383  
  Diluted     22,000       23,942  
             
(1)The sixteen weeks ended August 28, 2021 and the comparable prior yr interval embrace $21.2M and $3.3M in tax advantages from inventory choice workouts, respectively
(2)The sixteen weeks ended August 29, 2020 was negatively impacted by pandemic associated bills, together with Emergency Time-Off of roughly $10.7M (pre-tax)
 
 
Fiscal 12 months 2021        
(in 1000’s, besides per share knowledge)        
        GAAP Outcomes
        52 Weeks Ended   52 Weeks Ended
        August 28, 2021(2)   August 29, 2020(2)
             
Web gross sales   $ 14,629,585     $ 12,631,967  
Price of gross sales     6,911,800       5,861,214  
Gross revenue     7,717,785       6,770,753  
Working, SG&A bills     4,773,258       4,353,074  
Working revenue (EBIT)     2,944,527       2,417,679  
Curiosity expense, web     195,337       201,165  
Revenue earlier than taxes     2,749,190       2,216,514  
Revenue taxes(1)     578,876       483,542  
Web revenue   $ 2,170,314     $ 1,732,972  
Web revenue per share:        
  Fundamental   $ 97.60     $ 73.62  
  Diluted   $ 95.19     $ 71.93  
Weighted common shares excellent:        
  Fundamental     22,237       23,540  
  Diluted     22,799       24,093  
 
 (1)The 52 weeks ended August 28, 2021 and the comparable prior yr interval embrace $56.4M and $20.9M in tax advantages from inventory choice workouts, respectively
(2)The 52 weeks ended August 28, 2021 and the comparable prior yr interval have been negatively impacted by pandemic associated bills, together with Emergency Time-Off of roughly $43.0M (pre-tax) and $83.9M (pre-tax), respectively
 
 
Chosen Stability Sheet Data        
(in 1000’s)        
        August 28, 2021   August 29, 2020
             
Money and money equivalents   $ 1,171,335     $ 1,750,815  
Merchandise inventories     4,639,813       4,473,282  
Present property     6,415,303       6,811,872  
Property and gear, web     4,856,891       4,509,221  
Working lease right-of-use property     2,718,712       2,581,677  
Complete property     14,516,199       14,423,872  
Accounts payable     6,013,924       5,156,324  
Present liabilities     7,369,754       6,283,091  
Working lease liabilities, much less present portion     2,632,842       2,501,560  
Complete debt     5,269,820       5,513,371  
Stockholders’ deficit     (1,797,536 )     (877,977 )
Working capital     (954,451 )     528,781  
             
AutoZone’s 4th Quarter Highlights – Fiscal 2021            
                       
Condensed Consolidated Statements of Operations                
                       
Adjusted Debt / EBITDAR                
(in 1000’s, besides adjusted debt to EBITDAR ratio)   Trailing 4 Quarters        
          August 28, 2021   August 29, 2020        
Web revenue    $ 2,170,314     $ 1,732,972          
Add:  Curiosity expense     195,337       201,165          
          Revenue tax expense     578,876       483,542          
EBIT       2,944,527       2,417,679          
                    
Add:  Depreciation and amortization     407,683       397,466          
  Hire expense(1)     345,380       329,783          
  Share-based expense     56,112       44,835          
EBITDAR    $ 3,753,702     $ 3,189,763          
                       
Debt     $ 5,269,820     $ 5,513,371          
Financing lease liabilities     276,054       223,353          
Add: Hire x 6(1)     2,072,280       1,978,696          
Adjusted debt   $ 7,618,154     $ 7,715,420          
                       
Adjusted debt to EBITDAR     2.0       2.4          
                       
Adjusted Return on Invested Capital (ROIC)                
(in 1000’s, besides ROIC)                
          Trailing 4 Quarters        
          August 28, 2021   August 29, 2020        
Web revenue    $ 2,170,314     $ 1,732,972          
Changes:                 
Curiosity expense     195,337       201,165          
Hire expense(1)     345,380       329,783          
Tax impact(2)     (114,091 )     (115,747 )        
Adjusted after-tax return   $ 2,596,940     $ 2,148,173          
                       
Common debt(3)   $ 5,416,471     $ 5,375,356          
Common stockholders’ deficit(3)     (1,397,892 )     (1,542,355 )        
Add: Hire x 6(1)     2,072,280       1,978,696          
Common financing lease liabilities(3)     237,267       203,998          
Invested capital   $ 6,328,126     $ 6,015,695          
                       
Adjusted After-Tax ROIC     41.0 %     35.7 %        
                               
(1) The desk under outlines the calculation of lease expense and reconciles lease expense to complete lease value, per ASC 842, probably the most instantly comparable GAAP monetary measure, for the trailing 4 quarters ended August 28, 2021 and August 29, 2020 (in 1000’s):        
                       
    Complete lease value, per ASC 842, for the trailing 4 quarters ended August 28, 2021   $ 427,443          
    Much less: Financing lease curiosity and amortization     (56,334 )        
    Much less: Variable working lease elements, associated to insurance coverage and customary space upkeep     (25,729 )        
             
    Hire expense for the trailing 4 quarters ended August 28, 2021   $ 345,380          
                           
    Complete lease value, per ASC 842, for the trailing 4 quarters ended August 29, 2020   $ 415,505          
    Much less: Financing lease curiosity and amortization         (60,275 )        
    Much less: Variable working lease elements, associated to insurance coverage and customary space upkeep     (25,447 )        
             
    Hire expense for the trailing 4 quarters ended August 29, 2020   $ 329,783          
                       
(2) Efficient tax price over trailing 4 quarters ended August 28, 2021 and August 29, 2020 is 21.1% and 21.8%, respectively        
(3)All averages are computed based mostly on trailing 5 quarter balances        
                       
Different Chosen Monetary Data                
(in 1000’s)                  
          August 28, 2021   August 29, 2020        
Cumulative share repurchases ($ since fiscal 1998)   $ 25,732,431     $ 22,354,110          
Remaining share repurchase authorization ($)     417,569       795,890          
                       
Cumulative share repurchases (shares since fiscal 1998)     150,288       147,696          
                       
Shares excellent, finish of quarter     21,138       23,376          
                       
                       
                       
          16 Weeks Ended   16 Weeks Ended   52 Weeks Ended   52 Weeks Ended
          August 28, 2021   August 29, 2020   August 28, 2021   August 29, 2020
                       
Depreciation and amortization   $ 129,639     $ 125,351     $ 407,683   $ 397,466
                       
Capital spending     246,114       183,848       621,767     457,736
                       
                       
AutoZone’s 4th Quarter Highlights – Fiscal 2021
Chosen Working Highlights
Condensed Consolidated Statements of Operations
                         
Retailer Rely & Sq. Footage                      
                         
      16 Weeks Ended     16 Weeks Ended     52 Weeks Ended     52 Weeks Ended
      August 28, 2021     August 29, 2020     August 28, 2021     August 29, 2020
Home:                      
  Starting shops     5,975         5,836         5,885         5,772  
  Shops opened     76         49         167         113  
  Shops closed                     (1 )        
  Ending home shops     6,051         5,885         6,051         5,885  
            .            
  Relocated shops     1         4         12         5  
                         
  Shops with industrial packages     5,179         5,007         5,179         5,007  
                         
  Sq. footage (in 1000’s)     39,727         38,559         39,727         38,559  
                         
Mexico:                      
  Starting shops     635         610         621         604  
  Shops opened     29         11         43         17  
  Ending Mexico shops     664         621         664         621  
                         
Brazil:                      
  Starting shops     47         38         43         35  
  Shops opened     5         5         9         8  
  Ending Brazil shops     52         43         52         43  
                         
Complete     6,767         6,549         6,767         6,549  
                         
  Sq. footage (in 1000’s)     45,057         43,502         45,057         43,502  
  Sq. footage per retailer     6,658         6,643         6,658         6,643  
                         
Gross sales Statistics                      
($ in 1000’s, besides gross sales per common sq. foot)           
      16 Weeks Ended     16 Weeks Ended     52 Weeks Ended     52 Weeks Ended
Complete AutoZone Shops (Home, Mexico and Brazil) August 28, 2021     August 29, 2020     August 28, 2021     August 29, 2020
  Gross sales per common retailer   $ 720       $ 686       $ 2,160       $ 1,914  
  Gross sales per common sq. foot   $ 108       $ 103       $ 325       $ 288  
                         
Complete Auto Components (Home, Mexico and Brazil)                      
  Complete auto components gross sales   $ 4,830,136       $ 4,473,098       $ 14,381,712       $ 12,405,929  
  % Improve vs. LY     8.0 %       14.2 %       15.9 %       6.5 %
                         
Home Business                      
  Complete home industrial gross sales   $ 1,182,626       $ 975,573       $ 3,345,450       $ 2,727,767  
  % Improve vs. LY     21.2 %       10.0 %       22.6 %       6.4 %
                         
  Common gross sales per program per week   $ 14.4       $ 12.2       $ 12.6       $ 10.6  
  % Improve vs. LY     18.0 %       14.2 %       18.9 %       5.6 %
                         
All Different, together with ALLDATA                      
  All different gross sales   $ 83,348       $ 72,870       $ 247,873       $ 226,038  
  % Improve vs. LY     14.4 %       2.1 %       9.7 %       3.4 %
                         
               
      16 Weeks Ended     16 Weeks Ended     52 Weeks Ended     52 Weeks Ended
      August 28, 2021     August 29, 2020     August 28, 2021     August 29, 2020
Home identical retailer gross sales     4.3 %       21.8 %       13.6 %       7.4 %
                         
Stock Statistics (Complete Shops)                      
      as of     as of            
      August 28, 2021     August 29, 2020            
  Accounts payable/stock     129.6 %       115.3 %            
                         
  ($ in 1000’s)                      
  Stock   $ 4,639,813       $ 4,473,282              
  Stock per retailer     686         683              
  Web stock (web of payables)     (1,374,111 )       (683,042 )            
  Web stock / per retailer     (203 )       (104 )            
                         
      Trailing 5 Quarters            
      August 28, 2021     August 29, 2020            
  Stock turns     1.5  x       1.3  x            



Supply hyperlink