Advance Auto Parts Inc. (AAP) filed Quarterly Report for the period ended 2009-10-10.
Advance Auto Parts, Inc. is a specialty retailer of automotive parts, accessories and maintenance items to `do-it-yourself` customers. Advance Auto Parts Inc. has a market cap of $3.83 billion; its shares were traded at around $40.12 with a P/E ratio of 12.9 and P/S ratio of 0.7. The dividend yield of Advance Auto Parts Inc. stocks is 0.6%. Advance Auto Parts Inc. had an annual average earning growth of 11.6% over the past 5 years.
Highlight of Business Operations:
During our third quarter and year-to-date for fiscal 2009, we produced favorable financial results primarily due to top-line sales growth and strong gross profit improvement resulting in earnings per diluted share of $0.65 and $2.46, respectively, compared to $0.58 and $2.23 for the third quarter and year-to-date 2008, respectively. Our earnings per diluted share for 2009 included the impact of a $0.04 and $0.15 charge related to expenses associated with our store divestiture plan for the third quarter and year-to-date, respectively. We also continued to make strategic investments in our four key strategies and paid down a significant portion of our bank debt.
For fiscal 2009, we expect to divest a total of approximately 40 to 50 stores that are delivering strategically or financially unacceptable results. These closures are in addition to an estimated 15 stores that we will close as part of our routine review and closure of underperforming stores at or near the end of their respective lease terms. During the twelve and forty weeks ended October 10, 2009, we recognized expense of $7.1 million and $22.2 million, respectively, comprised primarily of closed store exit costs in connection with the divestiture plan. During the third quarter of fiscal 2009, we closed 13 stores, 12 of which were closed under our store divestiture plan. We have closed 43 stores during the first three quarters of fiscal 2009, 36 of which were related to our divestiture plan. We anticipate recognizing expenses of approximately $0.15 to $0.22 per diluted share for the entire fiscal 2009 in connection with the closure of stores under the store divestiture plan. The majority of this expense is related to the estimated remaining lease obligations at the time of the anticipated closures.
The net adjustment increasing cost of sales and decreasing SG&A for the twelve and forty weeks ended October 4, 2008 was $14.9 million and $48.1 million, respectively. For additional information regarding this change, see Note 2, Change in Accounting Principle, of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q.
AAP is in the portfolios of Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, John Keeley of Keeley Fund Management, George Soros of Soros Fund Management LLC.
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