On Nov. 2, Advance Auto Parts (NYSE:AAP) released third-quarter earnings for the period ended Oct. 7.
- Same-store sales increased 1.4%, primarily because of an 8.7% increase in the do-it-for-me (DIFM) segment, offset by an 0.6% decrease in the do-it-yourself (DIY) segment.
- A rise of 200 basis points in selling, general, and administrative expenses negated the increase in gross margins and caused the operating margin to fall 102 basis points.
- Free cash flow declined by 42.7% to $96 million, largely due to higher capital spending.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$1,092 |
$1,099 |
$1,020 |
7.8% |
|
Net Profit |
-- |
$59 |
$61 |
(3%) |
|
EPS |
$0.53 |
$0.56 |
$0.55 |
1.8% |
|
Diluted Shares |
-- |
106 |
111 |
(4.4%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
48.22% |
47.21% |
1.01 |
|
Operating Margin |
9.32% |
10.34% |
(1.02) |
|
Net Margin |
5.36% |
5.96% |
(0.60) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$14 |
$113 |
(87.6%) |
|
Accounts Rec. |
$84 |
$84 |
(0.2%) |
|
Inventory |
$1,462 |
$1,375 |
6.3% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$670 |
$661 |
1.3% |
|
Long-Term Debt |
$451 |
$414 |
9% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
YTD 2006 |
YTD 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$297 |
$327 |
(9.3%) |
|
Capital Expenditures |
$201 |
$159 |
26% |
|
Free Cash Flow |
$96 |
$168 |
(42.7%) |
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Related Companies:
- AutoZone (NYSE:AZO)
- O'Reilly Automotive (NASDAQ:ORLY)
- Pep Boys (NYSE:PBY)
Related Foolishness:
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