0001158449false00011584492024-08-222024-08-22
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 22, 2024
ADVANCE AUTO PARTS, INC.
(Exact name of registrant as specified in its charter)
| | | | | | | | |
| Delaware | 001-16797 | 54-2049910 |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
4200 Six Forks Road, Raleigh, North Carolina 27609
(Address of principal executive offices) (Zip Code)
(540) 362-4911
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Securities Registered Pursuant to Section 12(b) of the Act: | | | | | | | | | | | | | | |
| Title of each class | | Trading symbol | | Name of each exchange on which registered |
| Common Stock, $0.0001 par value | | AAP | | New York Stock Exchange |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
INFORMATION TO BE INCLUDED IN THE REPORT
Item 2.02 Results of Operations and Financial Condition.
On August 22, 2024, Advance Auto Parts, Inc. (the "Company") issued a press release setting forth its financial results for its second quarter ended July 13, 2024. The press release is furnished as Exhibit 99.1 to this Report and is hereby incorporated by reference in this Item 2.02.
As provided in General Instruction B.2 of Form 8-K, the information and exhibit contained in this Current Report on Form 8-K shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| | | | | |
| Exhibit No. | Exhibit Description |
| |
| |
| 101.1 | Pursuant to Rule 406 of Regulation S-T, the cover page to this Current Report on Form 8-K is formatted in Inline XBRL. |
| 104.1 | Cover Page Interactive Data File (embedded within the Inline XBRL document included in Exhibit 101.1) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | | | | | | | |
| | ADVANCE AUTO PARTS, INC. |
| | |
August 22, 2024 | | /s/ Elizabeth E. Dreyer |
| | Elizabeth E. Dreyer |
| | Senior Vice President, Controller and Chief Accounting Officer |
Exhibit 99.1
Advance Auto Parts Reports Second Quarter 2024 Results
RALEIGH, N.C., August 22, 2024 - Advance Auto Parts, Inc. (NYSE: AAP), a leading automotive aftermarket parts provider in North America that serves both professional installer and do-it-yourself customers, announced its financial results for the second quarter ended July 13, 2024.
“Our team delivered positive comparable sales growth while navigating a challenging demand environment during the second quarter. I would like to thank the team for their hard work and dedication to serving our customers,” said Shane O’Kelly, president and chief executive officer. "We continue to make progress on our decisive actions with an increased focus on the Advance blended box. This morning, we announced the sale of Worldpac for $1.5 billion. This transaction is a critical milestone in our turnaround as it enables us to strengthen our balance sheet and streamline our focus. The next chapter of our strategic and operational review will now focus on the remaining Advance business, with the goal of improving our sales trajectory and the productivity of all our assets to deliver stronger returns for our shareholders.”
Second Quarter 2024 Results (1,2)
Second quarter 2024 net sales totaled $2.7 billion, which was flat compared with the second quarter of the prior year. Comparable store sales increased 0.4%.
The company's gross profit decreased 2.3% to $1.1 billion. Gross profit margin was 41.5% compared with 42.5% in the second quarter of the prior year. This was primarily due to the company's strategic pricing investments and higher product costs.
SG&A expenses were $1.0 billion, or 38.9% of net sales compared with 37.8% in the second quarter of 2023. This increase was primarily due to wage investments in frontline team members and an increase in professional fees, including costs associated with the implementation of the company's strategic plan and the remediation of the company’s previously-disclosed material weaknesses. This was partially offset by a reduction in marketing expenses.
The company's operating income was $71.8 million, or 2.7% of net sales compared with 4.7% in the second quarter of 2023.
(1) All comparisons are based on the same time period in the prior year. The company calculates comparable store sales based on the change in store or branch sales starting once a location has been open for approximately one year and by including e-commerce sales and excluding sales fulfilled by distribution centers to independently owned Carquest locations. Acquired stores are included in the company's comparable store sales one year after acquisition. The company includes sales from relocated stores in comparable store sales from the original date of opening.
(2) As reported in the company’s fourth quarter and full year 2023 earnings release, the company corrected non-material errors in certain previously reported financials. All comparisons are based on the corrected historical results as presented in the company’s prior earnings release dated February 29, 2024.
The company's effective tax rate was 27.5%, compared with 26.4% in the second quarter of 2023. The company's diluted EPS was $0.75, compared with $1.32 in the second quarter of 2023.
Net cash provided by operating activities was $87.8 million through the second quarter of 2024 versus $167.1 million of cash used in operating activities in the same period of the prior year. Free cash flow through the second quarter of 2024 was an outflow of $4.6 million compared with an outflow of $312.0 million in the same period of the prior year.
Capital Allocation
On August 7, 2024, the company declared a regular cash dividend of $0.25 per share to be paid on October 25, 2024, to all common stockholders of record as of October 11, 2024.
Full Year 2024 Guidance
| | | | | | | | | | | | | | |
| | As of August 22, 2024 |
| ($ in millions, except per share data) | | Low | | High |
| Net sales | | $ | 11,150 | | | $ | 11,250 | |
Comparable store sales (1) | | (1.0) | % | | 0.0 | % |
| Operating income margin | | 2.1 | % | | 2.5 | % |
| Diluted EPS | | $ | 2.00 | | | $ | 2.50 | |
| Capital expenditures | | $ | 200 | | | $ | 250 | |
Free cash flow (2) | | Minimum $100 |
(1) The company calculates comparable store sales based on the change in store or branch sales starting once a location has been open for approximately one year and by including e-commerce sales and excluding sales fulfilled by distribution centers to independently owned Carquest locations. Acquired stores are included in the company's comparable store sales one year after acquisition. The company includes sales from relocated stores in comparable store sales from the original date of opening.
(2) Free cash flow is a non-GAAP measure. For a better understanding of the company's non-GAAP adjustments, refer to the reconciliation of non-GAAP financial measures in the accompanying financial tables.
Investor Conference Call
The company will detail its results for the second quarter ended July 13, 2024, via a webcast scheduled to begin at 8 a.m. Eastern Time on Thursday, August 22, 2024. The webcast will be accessible via the Investor Relations page of the company's website (ir.AdvanceAutoParts.com).
To join by phone, please pre-register online for dial-in and passcode information. Upon registering, participants will receive a confirmation with call details and a registrant ID. While registration is open through the live call, the company suggests registering a day in advance or at minimum 10 minutes before the start of the call. A replay of the conference call will be available on the company's Investor Relations website for one year.
About Advance Auto Parts
Advance Auto Parts, Inc. is a leading automotive aftermarket parts provider that serves both professional installers and do-it-yourself customers. As of July 13, 2024, Advance operated 4,776 stores and 321 Worldpac branches primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. The company also served 1,138 independently owned Carquest branded stores across these locations in addition to Mexico and various Caribbean islands. Additional information about Advance, including employment opportunities, customer services, and online shopping for parts, accessories and other offerings can be found at www.AdvanceAutoParts.com.
| | | | | |
Investor Relations Contact: | Media Contact: |
Lavesh Hemnani | Darryl Carr |
| T: (919) 227-5466 | T: (984) 389-7207 |
E: invrelations@advanceautoparts.com | E: AAPCommunications@advance-auto.com |
Forward-Looking Statements
Certain statements herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are usually identifiable by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast, “guidance,” “intend,” “likely,” “may,” “plan,” “position,” “possible,” “potential,” “probable,” “project,” “should,” “strategy,” “will,” or similar language. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, statements about the company’s strategic initiatives, operational plans and objectives, statements about the sale of the company’s Worldpac business, including statements regarding the benefits of the sale and the anticipated timing of closing, statements regarding expectations for economic conditions, future business and financial performance, as well as statements regarding underlying assumptions related thereto. Forward-looking statements reflect the company’s views based on historical results, current information and assumptions related to future developments. Except as may be required by law, the company undertakes no obligation to update any forward-looking statements made herein. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements. They include, among others, the company’s ability to hire, train and retain qualified employees, the timing and implementation of strategic initiatives, deterioration of general macroeconomic conditions, geopolitical conflicts, the highly competitive nature of the industry, demand for the company’s products and services, the company’s ability to consummate the sale of Worldpac on a timely basis or at all, including failure to obtain the required regulatory approvals or to satisfy the other conditions to the closing, the company’s use of proceeds and ability to maintain credit ratings, access to financing on favorable terms, complexities in the company’s inventory and supply chain challenges with transforming and growing its business. Please refer to “Item 1A. Risk Factors” of the company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), as updated by the company’s subsequent filings with the SEC, for a description of these and other risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements.
| | | | | | | | | | | |
| Advance Auto Parts, Inc. and Subsidiaries |
| Condensed Consolidated Balance Sheets |
| (In thousands) |
|
| July 13, 2024 | | December 30, 2023 |
| (Unaudited) | | (Audited) |
| Assets | | | |
| Current assets: | | | |
| Cash and cash equivalents | $ | 479,418 | | | $ | 503,471 | |
| Receivables, net | 847,609 | | | 800,141 | |
Inventories, net | 4,903,490 | | | 4,857,702 | |
| Other current assets | 229,623 | | | 215,707 | |
| Total current assets | 6,460,140 | | | 6,377,021 | |
| Property and equipment, net | 1,579,886 | | | 1,648,546 | |
| Operating lease right-of-use assets | 2,596,201 | | | 2,578,776 | |
| Goodwill | 990,266 | | | 991,743 | |
| Other intangible assets, net | 577,275 | | | 593,341 | |
| Other assets | 86,038 | | | 86,899 | |
| Total assets | $ | 12,289,806 | | | $ | 12,276,326 | |
| Liabilities and Stockholders' Equity | | | |
| Current liabilities: | | | |
| Accounts payable | $ | 4,048,321 | | | $ | 4,177,974 | |
| Accrued expenses | 694,970 | | | 671,237 | |
| Other current liabilities | 513,483 | | | 458,194 | |
| Total current liabilities | 5,256,774 | | | 5,307,405 | |
| Long-term debt | 1,787,867 | | | 1,786,361 | |
| Noncurrent operating lease liabilities | 2,177,074 | | | 2,215,766 | |
| Deferred income taxes | 375,658 | | | 362,542 | |
| Other long-term liabilities | 85,681 | | | 84,524 | |
| Total stockholders' equity | 2,606,752 | | | 2,519,728 | |
| Total liabilities and stockholders’ equity | $ | 12,289,806 | | | $ | 12,276,326 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Advance Auto Parts, Inc. and Subsidiaries |
| Condensed Consolidated Statements of Operations |
| (In thousands, except per share data) (unaudited) |
| | | | |
| Twelve Weeks Ended | | Twenty-Eight Weeks Ended |
| July 13, 2024 | | July 15, 2023 (1) | | July 13, 2024 | | July 15, 2023 (1) |
| Net sales | $ | 2,683,053 | | | $ | 2,686,066 | | | $ | 6,089,307 | | | $ | 6,103,659 | |
Cost of sales, including purchasing and warehousing costs | 1,568,745 | | | 1,545,611 | | | 3,545,924 | | | 3,501,277 | |
| Gross profit | 1,114,308 | | | 1,140,455 | | | 2,543,383 | | | 2,602,382 | |
Selling, general and administrative expenses | 1,042,557 | | | 1,014,495 | | | 2,385,610 | | | 2,378,484 | |
| Operating income | 71,751 | | | 125,960 | | | 157,773 | | | 223,898 | |
| Other, net: | | | | | | | |
| Interest expense | (18,668) | | | (20,869) | | | (43,543) | | | (50,587) | |
Other income, net | 9,011 | | | 1,684 | | | 7,720 | | | 1,009 | |
| Total other, net | (9,657) | | | (19,185) | | | (35,823) | | | (49,578) | |
| Income before provision for income taxes | 62,094 | | | 106,775 | | | 121,950 | | | 174,320 | |
| Provision for income taxes | 17,103 | | | 28,198 | | | 36,947 | | | 47,420 | |
| Net income | $ | 44,991 | | | $ | 78,577 | | | $ | 85,003 | | | $ | 126,900 | |
| | | | | | | |
| Basic earnings per common share | $ | 0.75 | | | $ | 1.32 | | | $ | 1.43 | | | $ | 2.14 | |
| Weighted-average common shares outstanding | 59,633 | | | 59,451 | | | 59,590 | | | 59,384 | |
| | | | | | | |
| Diluted earnings per common share | $ | 0.75 | | | $ | 1.32 | | | $ | 1.42 | | | $ | 2.13 | |
| Weighted-average common shares outstanding | 59,905 | | | 59,604 | | | 59,868 | | | 59,570 | |
(1)The condensed consolidated statement of operations for the twelve and twenty-eight weeks ended July 15, 2023, reflects the correction of non-material errors the company discovered in previously reported results.
| | | | | | | | | | | |
| Advance Auto Parts, Inc. and Subsidiaries |
| Condensed Consolidated Statements of Cash Flows |
| (In thousands) (unaudited) |
| | | |
| Twenty-Eight Weeks Ended |
| July 13, 2024 | | July 15, 2023 (1) |
| Cash flows from operating activities: | | | |
| Net income | $ | 85,003 | | | $ | 126,900 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | |
| Depreciation and amortization | 167,443 | | | 162,974 | |
| Share-based compensation | 27,653 | | | 26,791 | |
(Gain) Loss and impairment of long-lived assets | (15,645) | | | 859 | |
| Provision for deferred income taxes | 13,634 | | | 21,497 | |
| Other, net | 2,076 | | | 1,628 | |
| Net change in: | | | |
| Receivables, net | (49,546) | | | (97,022) | |
Inventories, net | (53,472) | | | (148,918) | |
| Accounts payable | (125,351) | | | (319,785) | |
| Accrued expenses | 33,166 | | | 118,781 | |
| Other assets and liabilities, net | 2,853 | | | (60,836) | |
| Net cash provided by (used in) operating activities | 87,814 | | | (167,131) | |
| Cash flows from investing activities: | | | |
| Purchases of property and equipment | (92,445) | | | (144,874) | |
| Proceeds from sales of property and equipment | 12,820 | | | 1,532 | |
| Net cash used in investing activities | (79,625) | | | (143,342) | |
| Cash flows from financing activities: | | | |
| Borrowings under credit facilities | — | | | 4,327,000 | |
| Payments on credit facilities | — | | | (4,417,000) | |
| Borrowings on senior unsecured notes | — | | | 599,571 | |
| Dividends paid | (29,920) | | | (179,347) | |
| Purchases of noncontrolling interests | (9,101) | | | — | |
| Proceeds from the issuance of common stock | 1,788 | | | 2,060 | |
| Repurchases of common stock | (4,617) | | | (13,808) | |
| Other, net | (1,143) | | | (4,531) | |
| Net cash (used in) provided by financing activities | (42,993) | | | 313,945 | |
| Effect of exchange rate changes on cash | 10,751 | | | 949 | |
Net (decrease) increase in cash and cash equivalents | (24,053) | | | 4,421 | |
Cash and cash equivalents, beginning of period | 503,471 | | | 270,805 | |
Cash and cash equivalents, end of period | $ | 479,418 | | | $ | 275,226 | |
(1)The condensed consolidated statement of cash flows for the twenty-eight weeks ended July 15, 2023, reflects the correction of non-material errors the company discovered in previously reported results.
Restatement of Previously Issued Financial Statements
During the fiscal year ended December 30, 2023, the company identified errors primarily impacting cost of sales, selling, general and administrative costs and other income/expenses, net, incurred in prior years but not previously recognized. The company evaluated the errors and determined that the related impacts were not material to the previously issued consolidated financial statements for any prior period. A summary of the corrections to the impacted financial statement line items in the company's Consolidated Statement of Operations for the twelve and twenty-eight weeks ended July 15, 2023, and the company's Consolidated Statement of Cash Flows for the twenty-eight weeks ended July 15, 2023, included in the company's previously filed Annual Report on Form 10-K are presented below:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Condensed Consolidated Statement of Operations |
| July 15, 2023 |
| Twelve Weeks Ended | | Twenty-Eight Weeks Ended |
(in thousands) | As Previously Reported | | Adjustments | | As Corrected | | As Previously Reported | | Adjustments | | As Corrected |
| Cost of sales | $ | 1,537,997 | | | $ | 7,614 | | | $ | 1,545,611 | | | $ | 3,484,927 | | | $ | 16,350 | | | $ | 3,501,277 | |
| Gross profit | 1,148,069 | | | (7,614) | | | 1,140,455 | | | 2,618,732 | | | (16,350) | | | 2,602,382 | |
| Selling, general and administrative expenses | 1,013,701 | | | 794 | | | 1,014,495 | | | 2,394,365 | | | (15,881) | | | 2,378,484 | |
| Operating income | 134,368 | | | (8,408) | | | 125,960 | | | 224,367 | | | (469) | | | 223,898 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Income before provision for income taxes | 115,183 | | | (8,408) | | | 106,775 | | | 174,789 | | | (469) | | | 174,320 | |
| Provision for income taxes | 29,821 | | | (1,623) | | | 28,198 | | | 46,776 | | | 644 | | | 47,420 | |
| Net income | $ | 85,362 | | | $ | (6,785) | | | $ | 78,577 | | | $ | 128,013 | | | $ | (1,113) | | | $ | 126,900 | |
| | | | | | | | | | | |
| Basic earnings per share | $ | 1.44 | | | $ | (0.12) | | | $ | 1.32 | | | $ | 2.16 | | | $ | (0.02) | | | $ | 2.14 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Diluted earnings per common share | $ | 1.43 | | | $ | (0.11) | | | $ | 1.32 | | | $ | 2.15 | | | $ | (0.02) | | | $ | 2.13 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Condensed Consolidated Statement of Cash Flows |
| Twenty-Eight Weeks Ended July 15, 2023 |
(in thousands) | As Previously Reported | | Adjustments | | As Corrected |
| Net income | $ | 128,013 | | | $ | (1,113) | | | $ | 126,900 | |
Provision for deferred income taxes | 16,249 | | | 5,248 | | | 21,497 | |
| Other, net | 1,170 | | | 458 | | | 1,628 | |
| Net change in: | | | | | |
| Receivables, net | (93,539) | | | (3,483) | | | (97,022) | |
| Inventories, net | (145,148) | | | (3,770) | | | (148,918) | |
| Accounts payable | (346,808) | | | 27,023 | | | (319,785) | |
| Accrued expenses | 120,888 | | | (2,107) | | | 118,781 | |
| Other assets and liabilities, net | (36,008) | | | (24,828) | | | (60,836) | |
| Net cash used in operating activities | (164,559) | | | (2,572) | | | (167,131) | |
Other, net (1) | (4,073) | | | (458) | | | (4,531) | |
Net cash provided by financing activities | 314,403 | | | (458) | | | 313,945 | |
| Effect of exchange rate changes on cash | 1,280 | | | (331) | | | 949 | |
Net increase in cash and cash equivalents | 7,782 | | | (3,361) | | | 4,421 | |
| Cash and cash equivalents, beginning of period | 269,282 | | | 1,523 | | | 270,805 | |
| Cash and cash equivalents, end of period | $ | 277,064 | | | $ | (1,838) | | | $ | 275,226 | |
(1) The summary of corrections table above inadvertently omitted disclosure for proceeds from the issuance of common stock as follows: $2.1 million as previously reported, $0 adjustments and $2.1 million as corrected.
Reconciliation of Non-GAAP Financial Measures
The company's financial results include certain financial measures not derived in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management uses Free cash flow as a measure of its liquidity and believes it is a useful indicator for potential investors of the company's ability to implement growth strategies and service debt. Free cash flow is a non-GAAP measure and should be considered in addition to, but not as a substitute for, information contained in the company's condensed consolidated statement of cash flows as a measure of liquidity.
| | | | | | | | | | | |
Reconciliation of Free Cash Flow: (1) | | | |
| Twenty-Eight Weeks Ended |
| (in thousands) | July 13, 2024 | | July 15, 2023 |
| Cash flows provided by operating activities | $ | 87,814 | | | $ | (167,131) | |
| Purchases of property and equipment | (92,445) | | | (144,874) | |
| Free cash flow | $ | (4,631) | | | $ | (312,005) | |
| | | | | | | | | | | |
Adjusted Debt to Adjusted EBITDAR: (1) | | | |
| Four Quarters Ended |
| (In thousands, except adjusted debt to adjusted EBITDAR ratio) | July 13, 2024 | | December 30, 2023 |
| Total GAAP debt | $ | 1,787,867 | | | $ | 1,786,361 | |
| Add: Operating lease liabilities | 2,685,542 | | | 2,660,827 | |
| Adjusted debt | $ | 4,473,409 | | | $ | 4,447,188 | |
| | | |
GAAP Net (loss) income | $ | (12,162) | | | $ | 29,735 | |
| Depreciation and amortization | 310,923 | | | 306,454 | |
| Interest expense | 81,012 | | | 88,055 | |
Other expense, net | (12,237) | | | (5,525) | |
| Provision for income taxes | (8,361) | | | 2,112 | |
| Rent expense | 636,395 | | | 613,859 | |
| Share-based compensation | 46,509 | | | 45,647 | |
Other nonrecurring charges (2) | 25,757 | | | 12,419 | |
| Transformation related charges | 40,293 | | | 29,719 | |
| Adjusted EBITDAR | $ | 1,108,129 | | | $ | 1,122,475 | |
| | | |
| Adjusted Debt to Adjusted EBITDAR | 4.0 | | | 4.0 | |
(1) The four quarters ended July 13, 2024, includes the correction of non-material errors the company discovered in previously reported results.
(2) The adjustments to the four quarters ended July 13, 2024, and December 30, 2023, include expenses associated with the company's material weakness remediation efforts and professional executive recruiting fees.
NOTE: Management believes its Adjusted Debt to Adjusted EBITDAR ratio (“leverage ratio”) is a key financial metric for debt securities, as reviewed by rating agencies, and believes its debt levels are best analyzed using this measure. The company’s goal is to maintain an investment grade rating. The company's credit rating directly impacts the interest rates on borrowings under its existing credit facility and could impact the company's ability to obtain additional funding. If the company was unable to maintain its investment grade rating, this could negatively impact future performance and limit growth opportunities. Similar measures are utilized in the calculation of the financial covenants and ratios contained in the company's financing arrangements. The leverage ratio calculated by the company is a non-GAAP measure and should not be considered a substitute for debt to net earnings, as determined in accordance with GAAP. The company adjusts the calculation to remove rent expense and to add back the company’s existing operating lease liabilities related to their right-of-use assets to provide a more meaningful comparison with the company’s peers and to account for differences in debt structures and leasing arrangements. The company’s calculation of its leverage ratio may not be calculated in the same manner as other companies, and thus may not be comparable to similarly titled measures used by other companies.
Store Information
During the twenty-eight weeks ended July 13, 2024, 16 stores and branches were opened and 26 were closed, resulting in a total of 5,097 stores and branches as of July 13, 2024, compared with a total of 5,107 stores and branches as of December 30, 2023.
The below table summarizes the changes in the number of company-operated store and branch locations during the twelve and twenty-eight weeks ended July 13, 2024:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Twelve Weeks Ended |
| | AAP | | CARQUEST | | WORLDPAC (1) | | Total |
| April 20, 2024 | | 4,483 | | | 294 | | | 320 | | | 5,097 | |
| New | | 7 | | | 1 | | | 1 | | | 9 | |
| Closed | | (6) | | | (3) | | | — | | | (9) | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| July 13, 2024 | | 4,484 | | | 292 | | | 321 | | | 5,097 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Twenty-Eight Weeks Ended |
| | AAP | | CARQUEST | | WORLDPAC (1) | | Total |
| December 30, 2023 | | 4,484 | | | 302 | | | 321 | | | 5,107 | |
| New | | 14 | | | 1 | | | 1 | | | 16 | |
| Closed | | (15) | | | (10) | | | (1) | | | (26) | |
| | | | | | | | |
| Converted | | 1 | | | (1) | | | — | | | — | |
| | | | | | | | |
| July 13, 2024 | | 4,484 | | | 292 | | | 321 | | | 5,097 | |
(1) Certain converted Autopart International ("AI") locations will remain branded as AI going forward.
v3.24.2.u1
| X |
- Definition
+ References
+ Details
| Name: |
aap_CoverPageAbstract |
| Namespace Prefix: |
aap_ |
| Data Type: |
xbrli:stringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
| Name: |
dei_AmendmentFlag |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
| Name: |
dei_DocumentPeriodEndDate |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:dateItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
| Name: |
dei_DocumentType |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:submissionTypeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
| Name: |
dei_EntityAddressAddressLine1 |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- Definition
+ References
+ Details
| Name: |
dei_EntityAddressCityOrTown |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCode for the postal or zip code
| Name: |
dei_EntityAddressPostalZipCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionName of the state or province.
| Name: |
dei_EntityAddressStateOrProvince |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:stateOrProvinceItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityCentralIndexKey |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:centralIndexKeyItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionIndicate if registrant meets the emerging growth company criteria. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityEmergingGrowthCompany |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
| Name: |
dei_EntityFileNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:fileNumberItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
| Name: |
dei_EntityIncorporationStateCountryCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarStateCountryItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityRegistrantName |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityTaxIdentificationNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:employerIdItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionLocal phone number for entity.
| Name: |
dei_LocalPhoneNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
| Name: |
dei_PreCommencementIssuerTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14d
-Subsection 2b
| Name: |
dei_PreCommencementTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTitle of a 12(b) registered security. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b
| Name: |
dei_Security12bTitle |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:securityTitleItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionName of the Exchange on which a security is registered. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection d1-1
| Name: |
dei_SecurityExchangeName |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarExchangeCodeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14a
-Subsection 12
| Name: |
dei_SolicitingMaterial |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
| Name: |
dei_TradingSymbol |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:tradingSymbolItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
| Name: |
dei_WrittenCommunications |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
Advance Auto Parts (NYSE:AAP)
Historical Stock Chart
From Oct 2024 to Nov 2024
Advance Auto Parts (NYSE:AAP)
Historical Stock Chart
From Nov 2023 to Nov 2024
