Advance Auto Parts Announces $1 Billion Increase to Share Repurchase Authorization, Increases Quarterly Cash Dividend & Updat...
April 20 2021 - 10:57AM
Business Wire
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 that
on April 19, 2021, its Board of Directors approved an additional
share repurchase authorization of $1 billion, bringing the total
available repurchase authorization to approximately $1.3 billion.
In addition, the Board of Directors declared a quarterly cash
dividend of $1.00 per share, an increase from $0.25. This dividend
is payable July 2, 2021, to shareholders of record as of June 18,
2021.
“In recognition of our 2020 results, strong financial position
and confidence in our ability to deliver additional top- and
bottom-line growth this year, the Board has voted to significantly
increase the quarterly dividend," said Tom Greco, president and
chief executive officer. “Across Advance, we remain focused on our
financial priorities of maintaining an investment grade rating,
investing in the business and returning cash to shareholders. This
increase in the quarterly cash dividend combined with the
additional share repurchase authorization announced today reflects
our commitment to a balanced approach to returning cash to
shareholders.”
Full Year 2021 Guidance
Mr. Greco continued “Further, as we highlighted earlier this
morning, we estimate comparable store sales growth of 22% to 24%
for the first quarter, including strength across both DIY
omnichannel and professional. As a result of robust first quarter
estimates along with our previously announced expansion in
California, we are updating our full year guidance. Our team
members and independent partners continue to care for our customers
while executing on our long-term strategic initiatives. We are
confident in our ability to deliver additional progress throughout
the balance of the year.”
Full Year 2021
Guidance
Original February 2021
Updated April 2021
($ in millions)
Low
High
Low
High
Net sales
$
10,100
$
10,300
$
10,200
$
10,400
Comparable store sales1
1.0
%
3.0
%
2.0
%
4.0
%
Adjusted operating income margin1
8.7
%
8.9
%
8.9
%
9.1
%
Income tax rate
24
%
26
%
24
%
26
%
Capital expenditures
$
275
$
300
$
300
$
350
Free cash flow1
Minimum $600
Minimum $575
New store openings
50
100
100
150
1 For a better understanding of the company's adjusted results
and comparable store sales, please refer to the company’s press
release issued February 16, 2021 and Annual Report on Form 10-K
filed on February 22, 2021. Because of the forward-looking nature
of the 2021 non-GAAP financial measures, specific quantification of
the amounts that would be required to reconcile these non-GAAP
financial measures to their most directly comparable GAAP financial
measures are not available at this time.
About Advance Auto Parts
Advance Auto Parts, Inc. is a leading automotive aftermarket
parts provider that serves both professional installer and
do-it-yourself customers. As of January 2, 2021, Advance operated
4,806 stores and 170 Worldpac branches in the United States,
Canada, Puerto Rico and the U.S. Virgin Islands. The company also
serves 1,277 independently owned Carquest branded stores across
these locations in addition to Mexico, Grand Cayman, the Bahamas,
Turks and Caicos and British Virgin 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.
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,
and 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, factors related to the
timing and implementation of strategic initiatives, the highly
competitive nature of the company's industry, demand for the
company’s products and services, complexities in its inventory and
supply chain, challenges with transforming and growing its business
and factors related to the current global pandemic. Please refer to
“Item 1A. Risk Factors.” of the company's most recent Annual Report
on Form 10-K 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20210420005798/en/
Investor Relations Contact: Elisabeth Eisleben T: (919)
227-5466 E: invrelations@advanceautoparts.com
Media Contact: Darryl Carr T: (984) 389-7207 E:
AAPCommunications@advance-auto.com
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