On Aug. 8, Advance Auto Parts
- In the second quarter, Advance Auto advanced sales by 5.6% to $1.2 billion, but comps gained just 1.3%.
- Earnings increased 8.7% to $68.4 million, or $0.64 per share, but the company lowered its full-year outlook to a range of $2.24 to $2.32 per share.
- Proceeding with its strategic changes, the company reduced its staff by 250 in the quarter, and announced plans to reduce its store openings even further.
- Despite its sputtering performance, Advance Auto earns a perfect five-star rating over at Motley Fool CAPS. Industry leader AutoZone
(NYSE:AZO) is worthy of just three stars, while O'Reilly Automotive(NASDAQ:ORLY) has earned a rating of four stars. Head on over to the CAPS community and offer your own opinion.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$1,169.9 |
$1,107.9 |
5.6% |
|
Net Profit |
$68.4 |
$62.9 |
8.7% |
|
EPS |
$0.64 |
$0.59 |
8.5% |
|
Diluted Shares |
107.5 |
106.8 |
0.6% |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
48.1% |
47.6% |
0.5 |
|
Operating Margin |
10.1% |
10% |
0.1 |
|
Net Margin |
5.8% |
5.7% |
0.2 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$82.6 |
$13.1 |
529.5% |
|
Accounts Rec. |
$90.7 |
$87.4 |
3.7% |
|
Inventory |
$1,560.5 |
$1,433.1 |
8.9% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$736.6 |
$688.7 |
6.9% |
|
Long-Term Debt |
$350.3 |
$392.7 |
(10.8%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q4 2007 |
Q4 2006 |
Change |
|
|---|---|---|---|
|
Cash from Ops. |
$280.0 |
$257.4 |
8.8% |
|
Capital Expenditures |
$115.7 |
$132.0 |
(12.4%) |
|
Free Cash Flow |
$164.3 |
$125.4 |
31% |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Foolish Forecast: Shifting Gears at Advance Auto
- O'Reilly Still Coasting -- Slowly
- Advance Auto Parts Inches Forward
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Fool contributor Mike Cianciolo held no position in any of the companies in this article.
