On Feb. 15, Advance Auto Parts
- Revenue increased by 5.4% to $1.02 billion with a 1.6% increase in comparable-store sales.
- The bottom line dropped 10.2% to $35.4 million. Management attributed the decline to soft sales, which limited its ability to leverage expenses.
- During Q4, the company opened 53 new stores, remodeled 12, and relocated 16 stores. Given the weak sales, management will reassess how to allocate capital by opening, remodeling, and relocating fewer stores in hopes of improving selling, general, and administrative expenses and return on capital.
- Advance Auto Parts is a three-star stock in Motley Fool CAPS, our interactive stock database.
(Figures in millions, except per-share data)
Income Statement Highlights
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
Sales |
$1,016.2 |
$963.7 |
5.4% |
Net Profit |
$35.4 |
$39.4 |
(10.2%) |
EPS |
$0.33 |
$0.36 |
(8.3%) |
Diluted Shares |
106.2 |
109.8 |
(3.2%) |
Get back to basics with a look at the income statement.
Margin Checkup
Q4 2006 |
Q4 2005 |
Change* |
|
---|---|---|---|
Gross Margin |
47.1% |
46.7% |
0.4 |
Operating Margin |
6.3% |
7.3% |
(1.0) |
Net Margin |
3.5% |
4.1% |
(0.6) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Cash + ST Invest. |
$11.1 |
$40.8 |
(72.7%) |
Accounts Rec. |
$97.0 |
$94.7 |
2.5% |
Inventory |
$1,463.3 |
$1,367.1 |
7.0% |
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Accounts Payable* |
$779.1 |
$748.6 |
4.1% |
Long-Term Debt |
$477.2 |
$406.0 |
17.5% |
Learn the ways of the balance sheet.
Cash Flow Highlights
FY 2006 |
FY 2005 |
Change |
|
---|---|---|---|
Cash From Ops. |
$333.6 |
$321.6 |
3.7% |
Capital Expenditures |
$258.6 |
$216.2 |
19.6% |
Free Cash Flow |
$75.0 |
$105.4 |
(28.8%) |
Find out why Fools always follow the money.
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Related Foolishness:
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- Advance Auto Parts Standing Still
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AutoZone is a Motley Fool Inside Value recommendation. For more companies at great prices, try a free 30-day trial.
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. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.