ROANOKE, Va. – Advance Auto Parts has announced its financial results for its fourth quarter and fiscal year ended Dec. 31, 2011.
Fourth quarter comparable earnings per diluted share (EPS) were 90 cents, which was a 57.9 percent increase over the fourth quarter of fiscal 2010. For fiscal 2011, EPS increased 29.4 percent to $5.11 on top of a 31.7 percent increase in EPS during fiscal 2010.
“I would like to thank our 52,000 team members for their hard work and congratulate them on their outstanding performance in the fourth quarter and for the 2011 fiscal year. Our team’s conviction and commitment helped build momentum throughout the year, which resulted in a very strong finish to another great year,” said Darren Jackson, president and CEO. “Once again, our team reached many record strategic and financial milestones in 2011 including sales of over $6 billion, continued improvement in customer satisfaction, and record profitability, free cash flow and returns on invested capital. Based on our team’s focus on execution combined with strong industry fundamentals, we expect 2012 will be another successful year.”
Total sales for the fourth quarter increased 4.5 percent to $1.33 billion, compared with total sales of $1.27 billion during the fourth quarter of fiscal 2010. Advance said the 4.5 percent sales increase reflects the net addition of 99 new stores during the past 12 months and a comparable store sales gain of 2.9 percent compared to an 8.9 percent comparable store sales gain during the fourth quarter of fiscal 2010. Fiscal 2011 comparable store sales increased 2.2 percent on top of an 8 percent increase in fiscal 2010.
The company’s operating income increased 33.3 percent during the fourth quarter to $111.9 million as compared to the fourth quarter of fiscal 2010.
During fiscal 2011, the company generated $828.8 million in operating cash flow and a record $507.2 million of free cash flow. Free cash flow was driven by a significant decrease in inventory, net of payables, and strong growth in net income, partially offset by an increase in capital expenditures. Capital expenditures were $268.1 million for fiscal 2011 as compared to $199.6 million in fiscal 2010.
“As a direct result of our team’s ability to respond, adapt and provide outstanding service, our operating income rate increased to a record 10.8 percent of sales in fiscal 2011 and our diluted EPS increased 29.4 percent on top of a 31.7 percent EPS increase in 2010,” said Mike Norona, executive vice president and CFO.
During fiscal 2011, the company repurchased 9.9 million shares of its common stock at an aggregate cost of $609.7 million, or an average price of $61.51 per share. At the end of the fourth quarter, the company had $200 million remaining under the $300 million share repurchase authorization approved by the board of directors in August 2011.
In fiscal 2012, the company anticipates a low to mid-single digit increase in comparable store sales driven by continued strong commercial sales growth. The company expects a modest increase in gross profit rate and expects its rate of growth in SG&A dollars per store to increase low-single digits. Advance estimates an EPS range of approximately $5.55 to $5.75 for fiscal 2012, which assumes an average diluted share count of approximately 74 million shares.
“We believe 2012 will be another strong year based on the solid industry fundamentals, previous strategic and capability investments coupled with improving service levels. As a result, our company is positioned to grow our comp store sales, expand our operating income rate and generate double-digit EPS growth for our fifth consecutive year,” said Norona. “Our pursuit of increased growth and profitability requires a relentless focus on service, operational excellence and continued investments in the areas of Service Leadership and Superior Availability as we progress towards our goal of a 12 percent operating income.”
