Auto Parts

AutoZone 4th Quarter Similar Retailer Gross sales Enhance 6.2%; 4th Quarter EPS Will increase to $40.51; Annual Gross sales of $16.3 Billion








MEMPHIS, Tenn., Sept. 19, 2022 (GLOBE NEWSWIRE) — AutoZone, Inc. (NYSE: AZO) right this moment reported internet gross sales of $5.3 billion for its fourth quarter (16 weeks) ended August 27, 2022, a rise of 8.9% from the fourth quarter of fiscal 2021 (16 weeks). Home identical retailer gross sales, or gross sales for shops open at the very least one yr, elevated 6.2% for the quarter.

“Our outcomes are a testomony to our AutoZoners’ ongoing dedication to delivering distinctive customer support each day.  Our retail enterprise carried out nicely this quarter ending with constructive identical retailer gross sales on prime of final yr’s robust efficiency.  And, our business enterprise progress continued to be exceptionally robust at 22%. The investments we’ve got made in each stock availability and expertise are enhancing our aggressive positioning.  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 51.5%, a lower of 73 foundation factors versus the prior yr. The lower in gross margin was pushed by accelerated progress in our Industrial enterprise and a 28 foundation level non-cash LIFO cost pushed largely by rising freight prices. Working bills, as a proportion of gross sales, had been 30.9% versus 31.0% final yr.

Working revenue elevated 5.7% to $1.1 billion. Web revenue for the quarter elevated 3.1% over the identical interval final yr to $810.0 million, whereas diluted earnings per share elevated 13.4% to $40.51 from $35.72 within the year-ago quarter.

For the fiscal yr ended August 27, 2022, gross sales had been $16.3 billion, a rise of 11.1% from the prior yr, whereas home identical retailer gross sales had been up 8.4%. Gross revenue, as a proportion of gross sales, was 52.1% versus 52.8%. The lower in gross margin was primarily attributable to the initiatives to speed up progress in our Industrial enterprise. Working bills, as a proportion of gross sales, had been 32.0% versus 32.6%. For fiscal 2022, internet revenue elevated 11.9% to $2.4 billion and diluted earnings per share elevated 23.1% to $117.19 from $95.19. Return on invested capital completed at 52.9%.

Beneath its share repurchase program, AutoZone repurchased 474 thousand shares of its widespread inventory for $1 billion through the fourth quarter, at a median worth of $2,111 per share. For the fiscal yr, the Firm repurchased 2.2 million shares of its widespread inventory for $4.4 billion, at a median worth of $1,964 per share. At yr finish, the Firm had $1.058 billion remaining below its present share repurchase authorization.

The Firm’s stock elevated 21.5% over the identical interval final yr, pushed by our progress initiatives and inflation. Web stock, outlined as merchandise inventories much less accounts payable, on a per retailer foundation, was unfavorable $240 thousand versus unfavorable $203 thousand final yr and unfavorable $216 thousand final quarter.

“We’re dedicated to being the most effective place to buy everybody’s automotive wants whereas delivering on our ongoing promise to be a fantastic place to work. We consider our initiatives will drive progress within the new fiscal yr. As we proceed to prudently make investments capital in our enterprise, we stay steadfast in our long-term, disciplined method to growing working earnings and money flows whereas using our stability sheet successfully,” mentioned Rhodes.

Moreover, AutoZone introduced right this moment that Doug Brooks will not be standing for re-election to the Firm’s Board of Administrators on the Annual Assembly of Stockholders to be held December 14, 2022. “AutoZone has really benefited from Doug’s insightful steerage, tutelage, and repair these previous 9 years. Doug’s efforts have contributed to serving to make our Firm what it’s right this moment. I thank him for his management and dedication to our Firm, and I want him nicely in his future endeavors,” mentioned Rhodes.

In the course of the fiscal yr ended August 27, 2022, AutoZone opened 118 new shops and closed one within the U.S., opened 39 shops in Mexico and 20 shops in Brazil. As of August 27, 2022, the Firm had 6,168 shops within the U.S., 703 in Mexico and 72 in Brazil for a complete retailer rely of 6,943.

AutoZone is the main retailer and distributor of automotive substitute components and equipment within the Americas. Every retailer carries an in depth product line for vehicles, sport utility automobiles, vans and light-weight vehicles, together with new and remanufactured automotive arduous components, upkeep gadgets, equipment, and non-automotive merchandise. Many shops even have a business gross sales program that gives business 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 business packages in all shops in Mexico and Brazil. AutoZone additionally sells the ALLDATA model automotive diagnostic, restore and store administration software program via www.alldata.com. Moreover, we promote automotive arduous components, upkeep gadgets, equipment and non-automotive merchandise via www.autozone.com, and our business prospects could make purchases via www.autozonepro.com. We additionally present product data on our Duralast branded merchandise via www.duralastparts.com. AutoZone doesn’t derive income from automotive restore or set up.

AutoZone will host a convention name this morning, Monday, September 19, 2022, starting at 10:00 a.m. (ET) 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. Traders can also hearken to the decision by dialing (888) 506-0062, passcode 404601. As well as, a phone replay will likely be obtainable by dialing (877) 481-4010, replay passcode 46463 via October 3, 2022.

This launch contains sure monetary data not derived in accordance with typically accepted accounting rules (“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 gives data that’s helpful to buyers because it signifies extra clearly the Firm’s comparative year-to-year working outcomes, however this data shouldn’t be thought of an alternative to any measures derived in accordance with GAAP. Administration targets the Firm’s capital construction with a view to keep its funding grade credit score scores. The Firm believes that is vital data for the administration of its debt ranges and share repurchases. Now we have included a reconciliation of this extra data to essentially 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 Personal Securities Litigation Reform Act of 1995. Ahead-looking statements usually use phrases reminiscent of “consider,” “anticipate,” “ought to,” “intend,” “plan,” “will,” “anticipate,” “estimate,” “challenge,” “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 tendencies, present situations, anticipated future developments and different components that we consider to be acceptable. These forward-looking statements are topic to quite a lot of dangers and uncertainties, together with with out limitation: product demand, on account of adjustments in gasoline costs, miles pushed or in any other case; vitality costs; climate; competitors; credit score market situations; money flows; entry to obtainable 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; warfare and the prospect of warfare, together with terrorist exercise; the affect of public well being points, reminiscent of the continuing world coronavirus pandemic; inflation; the power to rent, practice and retain certified staff; building delays; the compromising of confidentiality, availability or integrity of data, together with on account of cyber-attacks; historic progress price sustainability; downgrade of our credit score scores; harm to our fame; challenges in worldwide markets; failure or interruption of our data expertise methods; origin and uncooked materials prices of suppliers; stock availability; 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 “Danger Components” part contained in Merchandise 1A below Half 1 of the Firm’s Annual Report on Kind 10-Ok for the yr ended August 28, 2021, and these Danger Components ought to be learn rigorously. Ahead-looking statements are usually not ensures of future efficiency, and precise outcomes, developments and enterprise choices might differ from these contemplated by such forward-looking statements, and occasions described above and within the “Danger Components” may materially and adversely have an effect on our enterprise. Nevertheless, it ought to be understood that it’s not potential to establish 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 legislation, we undertake no obligation to replace publicly any forward-looking statements, whether or not because of new data, future occasions or in any other case.

Contact Info:
Monetary: Brian Campbell at (901) 495-7005, [email protected]
Media: David McKinney at (901) 495-7951, [email protected]

   
AutoZone’s 4th Quarter Highlights – Fiscal 2022  
               
Condensed Consolidated Statements of Operations      
4th Quarter, FY2022       
(in 1000’s, besides per share knowledge)      
        GAAP Outcomes  
        16 Weeks Ended   16 Weeks Ended  
        August 27, 2022   August 28, 2021  
               
Web gross sales   $ 5,348,355     $ 4,913,484    
Price of gross sales     2,592,505       2,345,646    
Gross revenue     2,755,850       2,567,838    
Working, SG&A bills     1,652,036       1,523,808    
Working revenue (EBIT)     1,103,814       1,044,030    
Curiosity expense, internet     63,995       58,119    
Earnings earlier than taxes     1,039,819       985,911    
Earnings tax expense     229,777       200,140    
Web revenue   $ 810,042     $ 785,771    
Web revenue per share:          
  Fundamental   $ 41.81     $ 36.72    
  Diluted   $ 40.51     $ 35.72    
Weighted common shares excellent:          
  Fundamental     19,373       21,400    
  Diluted     19,996       22,000    
   
               
Fiscal 12 months 2022          
(in 1000’s, besides per share knowledge)          
        GAAP Outcomes  
        52 Weeks Ended   52 Weeks Ended  
        August 27, 2022   August 28, 2021(1)  
               
Web gross sales   $ 16,252,230     $ 14,629,585    
Price of gross sales     7,779,580       6,911,800    
Gross revenue     8,472,650       7,717,785    
Working, SG&A bills     5,201,921       4,773,258    
Working revenue (EBIT)     3,270,729       2,944,527    
Curiosity expense, internet     191,638       195,337    
Earnings earlier than taxes     3,079,091       2,749,190    
Earnings taxes     649,487       578,876    
Web revenue   $ 2,429,604     $ 2,170,314    
Web revenue per share:          
  Fundamental   $ 120.83     $ 97.60    
  Diluted   $ 117.19     $ 95.19    
Weighted common shares excellent:          
  Fundamental     20,107       22,237    
  Diluted     20,733       22,799    
               
(1)The 52 weeks ended August 28, 2021 was negatively impacted by pandemic associated bills, together with Emergency Time-Off of roughly $43.0M (pre-tax)  
 
               
Chosen Stability Sheet Info          
(in 1000’s)          
        August 27, 2022   August 28, 2021  
               
Money and money equivalents   $ 264,380     $ 1,171,335    
Merchandise inventories     5,638,004       4,639,813    
Present belongings     6,627,984       6,415,303    
Property and gear, internet     5,170,419       4,856,891    
Working lease right-of-use belongings     2,918,817       2,718,712    
Whole belongings     15,275,043       14,516,199    
Accounts payable     7,301,347       6,013,924    
Present liabilities     8,588,393       7,369,754    
Working lease liabilities, much less present portion     2,837,973       2,632,842    
Whole debt     6,122,092       5,269,820    
Stockholders’ deficit     (3,538,913 )     (1,797,536 )  
Working capital     (1,960,409 )     (954,451 )  
               
AutoZone’s 4th Quarter Highlights – Fiscal 2022                          
                           
Condensed Consolidated Statements of Operations                    
                           
Adjusted Debt / EBITDAR                    
(in 1000’s, besides adjusted debt to EBITDAR ratio)   Trailing 4 Quarters            
          August 27, 2022   August 28, 2021            
Web revenue     $ 2,429,604     $ 2,170,314              
Add: Curiosity expense     191,638       195,337              
Earnings tax expense     649,487       578,876              
EBIT         3,270,729       2,944,527              
                           
Add: Depreciation and amortization     442,223       407,683              
Hire expense(1)     373,278       345,380              
Share-based expense     70,612       56,112              
EBITDAR     $ 4,156,842     $ 3,753,702              
                           
Debt       $ 6,122,092     $ 5,269,820              
Financing lease liabilities     310,305       276,054              
Add: Hire x 6(1)     2,239,668       2,072,280              
Adjusted debt   $ 8,672,065     $ 7,618,154              
                           
Adjusted debt to EBITDAR     2.1       2.0              
                           
Adjusted Return on Invested Capital (ROIC)                    
(in 1000’s, besides ROIC)                    
          Trailing 4 Quarters            
          August 27, 2022   August 28, 2021            
Web revenue     $ 2,429,604     $ 2,170,314              
Changes:                      
Curiosity expense     191,638       195,337              
Hire expense(1)     373,278       345,380              
Tax impact(2)     (119,197 )     (114,091 )            
Adjusted after-tax return   $ 2,875,323     $ 2,596,940              
                           
Common debt(3)   $ 5,712,301     $ 5,416,471              
Common stockholders’ deficit(3)     (2,797,181 )     (1,397,892 )            
Add: Hire x 6(1)     2,239,668       2,072,280              
Common financing lease liabilities(3)     284,453       237,267              
Invested capital   $ 5,439,241     $ 6,328,126              
                           
Adjusted After-Tax ROIC     52.9%       41.0%              
                           
(1) The desk beneath outlines the calculation of hire expense and reconciles hire expense to whole lease value, per ASC 842, essentially the most instantly comparable GAAP monetary measure, for the trailing 4 quarters ended August 27, 2022 and August 28, 2021            
           
           
                           
          Trailing 4 Quarters            
(in 1000’s)     August 27, 2022   August 28, 2021            
Whole lease value, per ASC 842, for the trailing 4 quarters   $ 470,563     $ 427,443              
Much less: Financing lease curiosity and amortization     (69,564 )     (56,334 )            
Much less: Variable working lease parts, associated to insurance coverage and customary space upkeep     (27,721 )     (25,729 )            
               
Hire expense for the trailing 4 quarters   $ 373,278     $ 345,380              
                               
                           
(2) Efficient tax price over trailing 4 quarters ended August 27, 2022 and August 28, 2021 was 21.1%  
(3)All averages are computed based mostly on trailing 5 quarter balances  
                           
Different Chosen Monetary Info                    
(in 1000’s)                      
          August 27, 2022   August 28, 2021            
Cumulative share repurchases ($ since fiscal 1998)   $ 30,092,422     $ 25,732,431              
Remaining share repurchase authorization ($)     1,057,578       417,569              
                           
Cumulative share repurchases (shares since fiscal 1998)     152,508       150,288              
                           
Shares excellent, finish of quarter     19,126       21,138              
                           
                           
          16 Weeks Ended   16 Weeks Ended     52 Weeks Ended   52 Weeks Ended  
          August 27, 2022   August 28, 2021     August 27, 2022   August 28, 2021  
                           
Depreciation and amortization   $ 140,858     $ 129,639       $ 442,223   $ 407,683  
                           
Money movement from operations     1,228,021       1,288,196         3,211,135     3,518,543  
                           
Capital spending     303,041       246,114         672,391     621,767  
                           
AutoZone’s 4th Quarter Highlights – Fiscal 2022  
Condensed Consolidated Statements of Operations
 
Chosen Working Highlights
 
                               
Retailer Rely & Sq. Footage
       
                               
          16 Weeks Ended     16 Weeks Ended     52 Weeks Ended     52 Weeks Ended  
          August 27, 2022     August 28, 2021     August 27, 2022     August 28, 2021  
Home:                          
  Starting shops     6,115         5,975         6,051         5,885    
  Shops opened     53         76         118         167    
  Shops closed                     (1 )       (1 )  
  Ending home shops     6,168         6,051         6,168         6,051    
                               
  Relocated shops     5         1         13         12    
                               
  Shops with business packages     5,342         5,179         5,342         5,179    
                               
  Sq. footage (in 1000’s)     40,653         39,727         40,653         39,727    
                               
Mexico:
                         
  Starting shops     673         635         664         621    
  Shops opened     30         29         39         43    
  Ending Mexico shops     703         664         703         664    
                               
Brazil:
                         
  Starting shops     58         47         52         43    
  Shops opened     14         5         20         9    
  Ending Brazil shops     72         52         72         52    
                               
Whole
      6,943         6,767         6,943         6,767    
                               
  Sq. footage (in 1000’s)     46,435         45,057         46,435         45,057    
  Sq. footage per retailer     6,688         6,658         6,688         6,658    
                               
Gross sales Statistics                        
($ in 1000’s, besides gross sales per common sq. foot)                        
          16 Weeks Ended     16 Weeks Ended     Trailing 4 Quarters     Trailing 4 Quarters  
Whole AutoZone Shops (Home, Mexico and Brazil) August 27, 2022     August 28, 2021     August 27, 2022     August 28, 2021  
  Gross sales per common retailer   $ 762       $ 720       $ 2,329       $ 2,160    
  Gross sales per common sq. foot   $ 114       $ 108       $ 349       $ 325    
                               
Whole Auto Elements (Home, Mexico and Brazil)                        
  Whole auto components gross sales   $ 5,256,176       $ 4,830,136       $ 15,963,196       $ 14,381,712    
  % Enhance vs. LY     8.8%         8.0%         11.0%         15.9%    
                               
Home Industrial                        
  Whole home business gross sales   $ 1,442,313       $ 1,182,626       $ 4,230,414       $ 3,345,450    
  % Enhance vs. LY     22.0%         21.2%         26.5%         22.6%    
                               
  Common gross sales per program per week   $ 17.0       $ 14.4       $ 15.5       $ 12.6    
  % Enhance vs. LY     18.1%         18.0%         23.0%         18.9%    
                               
All Different, together with ALLDATA                        
  All different gross sales   $ 92,179       $ 83,348       $ 289,034       $ 247,873    
  % Enhance vs. LY     10.6%         14.4%         16.6%         9.7%    
                               
                 
          16 Weeks Ended     16 Weeks Ended     52 Weeks Ended     52 Weeks Ended  
          August 27, 2022     August 28, 2021     August 27, 2022     August 28, 2021  
Home identical retailer gross sales     6.2%         4.3%         8.4%         13.6%    
                               
Stock Statistics (Whole Shops)                        
          as of     as of              
          August 27, 2022     August 28, 2021              
  Accounts payable/stock     129.5%         129.6%                
                               
  ($ in 1000’s)                          
  Stock     $ 5,638,004       $ 4,639,813                
  Stock per retailer     812         686                
  Web stock (internet of payables)     (1,663,343 )       (1,374,111 )              
  Web stock / per retailer     (240 )       (203 )              
                               
          Trailing 5 Quarters              
          August 27, 2022     August 28, 2021              
  Stock turns     1.5  x       1.5  x              
                               

All information about AUTOZONE, INC.
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09/20 Jefferies Adjusts AutoZone’s Value Goal to $2,450 From $2,350, Reiterates Purchase Score

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Analyst Suggestions on AUTOZONE, INC.

Gross sales 2022 16 063 M

Web revenue 2022 2 392 M

Web Debt 2022 5 714 M

P/E ratio 2022 18,3x
Yield 2022
Capitalization 40 241 M
40 241 M
EV / Gross sales 2022 2,86x
EV / Gross sales 2023 2,72x
Nbr of Staff 85 050
Free-Float 94,1%



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AutoZone, Inc. Technical Analysis Chart | MarketScreener

Technical evaluation tendencies AUTOZONE, INC.

Brief Time period Mid-Time period Lengthy Time period
Developments Bearish Bullish Bullish




Earnings Assertion Evolution

Promote

Purchase

Imply consensus OUTPERFORM
Variety of Analysts 24
Final Shut Value 2 104,02 $
Common goal worth 2 298,20 $
Unfold / Common Goal 9,23%


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