Advance Auto Parts sees higher profit in 2012; drop in revenue for fourth quarter
THE TAKE: Roanoke-based Advance Auto Parts (AAP), a Fortune 500 retailer of automotive parts and accessories, saw an increase in earnings of 2.2 percent in 2012, and a drop in earnings of 2.2 percent for the fourth quarter.
Sales: $1.3 billion in the fourth quarter, up 0.1 percent from the same quarter in 2011. For fiscal 2012, sales were $6.2 billion, up 0.6 percent compared to $6.1 billion in 2011.
Earnings per share: Fourth quarter, 88 cents per diluted share, a 2.2 percent decrease. For fiscal 2012, EPS was $5.22, an increase of 2.2 percent.
Net operating income: $113.2 million, or 8.5 percent of total sales, compared to 8.4 percent during the same period last year. For fiscal 2012, the operating income rate was 10.6 percent vs. 10.8 percent during fiscal 2011.
As a result of the recent acquisition of BWP Distributors Inc., the company estimates that BWP will add about $170 million to $180 million of revenue in 2013.
THE COMPANY’S TAKE: “Overall fiscal 2012 was a challenging environment, which is reflected in our results. Yet we achieved many milestones that position us for a strong future. Those achievements include the launch of our in-house commercial credit program, the opening of our new distribution center in Remington, Ind., improvements in our commercial customer satisfaction, the market entry into the boroughs of New York and the acquisition of BWP which closed after our fiscal year ended.”