Advance Auto Parts, Inc., an automotive aftermarket parts provider in North America, disclosed its financial results for the second quarter ended July 18, 2015.
Second quarter comparable cash earnings per diluted share were $2.27, which included a $0.03 unfavorable impact from foreign currency and was an increase of 9.1 percent versus the second quarter last year. These second quarter comparable results exclude $0.08 of amortization of acquired intangible assets and integration costs of $0.16 primarily associated with the acquisition of General Parts International, Inc.
Total sales for the second quarter increased 1.0 percent to $2.37 billion, as compared with total sales during the second quarter of fiscal 2014 of $2.35 billion. The sales increase was driven by the addition of new stores over the past 12 months and a comparable store sales increase of 1.0 percent partially offset by changes in their independent store count. Comparable store sales were negatively impacted by 34 basis points due to foreign currency fluctuations from their Canadian operations.
The company’s gross profit rate was 45.9 percent of sales during the second quarter as compared to 45.2 percent during the second quarter last year. The 64 basis-point increase in gross profit rate was primarily the result of lower product acquisition costs, inclusive of the company’s ongoing merchandise cost synergy savings.
The company’s comparable SG&A rate was 33.8 percent of sales during the second quarter as compared to 34.0 percent during the same period last year. The 22 basis point decrease was primarily the result of lower insurance costs and overall lower administrative costs driven by synergy savings partially offset by expense de-leverage as a result of their low comparable store sales growth. On a GAAP basis, the company’s SG&A rate was 35.0 percent of sales during the second quarter as compared to 35.0 percent during the same period last year.
The company’s comparable operating income was $285.5 million during the second quarter, an increase of 8.7 percent versus the second quarter of fiscal 2014. As a percentage of sales, comparable operating income in the second quarter was 12.0 percent compared to 11.2 percent during the second quarter of fiscal 2014. On a GAAP basis, the company’s operating income during the second quarter of $257.0 million increased 6.8 percent versus the second quarter of fiscal 2014. On a GAAP basis, the operating income rate was 10.8 percent during the second quarter as compared to 10.3 percent during the second quarter of fiscal 2014.
Operating cash flow increased approximately 3.2 percent to $330.8 million through the second quarter of fiscal 2015 from $320.6 million through the second quarter of fiscal 2014. Free cash flow increased to $216.3 million through the second quarter of fiscal 2015 from $214.3 million through the second quarter of fiscal 2014. Capital expenditures through the second quarter of fiscal 2015 were $114.5 million as compared to $106.3 million through the second quarter of fiscal 2014.
The company’s board of directors declared a regular quarterly cash dividend of $0.06 per share that was paid on October 2, 2015 to stockholders of record as of September 18, 2015.
Published in the October 2015 Edition of American Recycler News