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Advance Auto Parts Inc. Reports Operating Results (10-Q)

August 20, 2012 | About:
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10qk

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Advance Auto Parts Inc. (AAP) filed Quarterly Report for the period ended 2012-07-14.

Advance Auto Parts, Inc. has a market cap of $5.36 billion; its shares were traded at around $71.58 with a P/E ratio of 13.4 and P/S ratio of 0.9. The dividend yield of Advance Auto Parts, Inc. stocks is 0.3%. Advance Auto Parts, Inc. had an annual average earning growth of 14.9% over the past 10 years. GuruFocus rated Advance Auto Parts, Inc. the business predictability rank of 5-star.

Highlight of Business Operations:

For the twelve weeks ended July 14, 2012, AAP produced net sales of $1,391.5 million, a decrease of $17.8 million, or 1.3%, as compared to net sales for the twelve weeks ended July 16, 2011. While AAP's average sales per customer increased over the prior year, the pace of growth decelerated due to an increase in promotional pricing in response to lower customer demand in both Commercial and DIY and a decrease in transaction count. For the twelve weeks ended July 14, 2012, AI produced net sales of $73.0 million, a decrease of $1.3 million, or 1.8%, as compared to net sales for the twelve weeks ended July 16, 2011. Excluding intercompany sales to AAP, AI's sales decreased 1.0% for the twelve weeks ended July 14, 2012 compared to the twelve weeks ended July 16, 2011.

For the twenty-eight weeks ended July 14, 2012, AAP produced net sales of $3,259.9 million, an increase of $36.3 million, or 1.1%, as compared to net sales for the twenty-eight weeks ended July 16, 2011. The AAP comparable store sales decrease of 0.1% was driven by increased promotional pricing and a more pronounced decrease in transaction count during the second quarter. For the twenty-eight weeks ended July 14, 2012, AI produced net sales of $166.6 million, an increase of $3.8 million, or 2.3%, as compared to net sales for the twenty-eight weeks ended July 16, 2011. Excluding intercompany sales to AAP, AI's sales increased 2.9% for the twenty-eight weeks ended July 14, 2012 compared to last year.

AAP produced operating income of $385.4 million, or 11.8% of net sales, for the twenty-eight weeks ended July 14, 2012 as compared to $368.3 million, or 11.4% of net sales, for the comparable period of last year. AI generated operating income for the twenty-eight weeks ended July 14, 2012 of $8.4 million as compared to $6.5 million for the comparable period of last year. AI s operating income increased during the twenty-eight weeks ended July 14, 2012 primarily due to lower incentive compensation and the leverage of SG&A as a result of the maturity of its existing store base with relatively few new store openings partially offset by increased promotional activity which was more pronounced during the second quarter.

Net income for the twelve weeks ended July 14, 2012 was $99.6 million, or $1.34 per diluted share, as compared to $113.1 million, or $1.46 per diluted share, for the comparable period of Fiscal 2011. As a percentage of net sales, net income for the twelve weeks ended July 14, 2012 was 6.8%, as compared to 7.6% for the comparable period of Fiscal 2011. The decrease in diluted EPS was primarily due to a decrease in net income partially offset by the repurchase of 2.0 million shares of our common stock over the last four fiscal quarters.

Net income for the twenty-eight weeks ended July 14, 2012 was $233.1 million, or $3.14 per diluted share, as compared to $222.7 million, or $2.79 per diluted share, for the comparable period of Fiscal 2011. As a percentage of net sales, net income for the twenty-eight weeks ended July 14, 2012 was 6.8%, as compared to 6.6% for the comparable period of Fiscal 2011. The increase in diluted EPS was primarily due to an increase in net income and the repurchase of 2.0 million shares of our common stock over the last four fiscal quarters.

Read the The complete Report

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10qk
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