Chairman, President and CEO of AutoZone Inc. (AZO) William C. Rhodes III sold 25,000 shares on 9/26/2012 at an average price of $370.18. The total transaction amount is $9,254,500.
AutoZone is the nation's leading retailer and a leading distributor of automotive replacement parts and accessories with more than 4,800 stores in the U.S., Puerto Rico and Mexico. Each store carries an extensive line for cars, sport utility vehicles, vans and light trucks, including new and remanufactured hard parts, maintenance items and accessories. Since opening its first store in Forrest City, Ark., on July 4, 1979, the company has joined the New York Stock Exchange and earned a spot in the Fortune 500.
As of 9/25/2012, AutoZone Inc. had 4,685 stores in 49 states, the District of Columbia and Puerto Rico in the U.S. and 321 stores in Mexico for a total of 5,006.
Net sales were reported at $2.8 billion for its fourth quarter ending 9/25/2012, an increase of 4.6% from the fourth quarter of fiscal 2011. Domestic same store sales increased 2.1 percent for the quarter. AutoZone Inc. has had an annual average earnings growth of 18.2 percent over the past 10 years. Net income for the quarter increased $22.3 million, or 7.4 percent, over the same period last year to $323.7 million.
Gross profit, as a percentage of sales, was 51.8 percent versus 51.2 percent for last year's quarter, a result of improved merchandise margins. Higher store payroll and self-insurance costs partially offset by lower incentive compensation negatively impacted operating expenses, a percentage of sales. Operating expenses were 31.6 percent versus 31.4 percent last year.
The P/E ratio of AutoZone Inc. is 15.8; its enterprise value is $17.42 billion and reported market cap is $13.92 billion. Its total assets as of 9/25/2012 are $6.3 billion with $3.8 billion in debt.
AutoZone Inc. shows a consistent EBITDA increase during its 10-year history, from September 2003 to 2012, of 18.9 percent. Its EBITDA growth is ranked higher than 79 percent of the 85 companies in the specialty retailers industry. A five-year EBITDA is 20.7. Its equity-to-asset range is -0.23 as of Friday.
AutoZone Inc. has repurchased 1.3 million shares of its common stock for $480 million during the fourth quarter ending 8/25/2012 at an average price of $374 per share. Return on invested capital reached 33 percent, while full-year cash flow before share repurchases and changes in debt was $950 million. GuruFocus contributor Dr. Paul Price states that, according to AutoZone Inc.’s 10-K, “... more than 100% of net cash provided from operations has been dedicated to this program.” The company had $356 million remaining at the end of the fiscal year under its current share repurchase authorization.
During the fourth quarter report William Rhodes stated, “We are pleased to report our twenty-fourth consecutive quarter of double digit earnings per share growth.”
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