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 first quarter ended April 19, 2025.
"The Advance team delivered better than expected sales and
profitability in the first quarter and I want to thank them for
their hard work and commitment to serving our customers. During the
quarter, we also successfully completed our store footprint
optimization within an accelerated timeframe, while continuing to
make progress on our other strategic initiatives. This progress was
evident in our Pro performance during the quarter, with 8
consecutive weeks of US Pro comparable sales growth,” said Shane
O'Kelly, president and chief executive officer. "The recently
implemented tariffs have created a highly dynamic economic
environment. Despite this, the team is staying focused on the
turnaround and our path ahead. We are reaffirming our annual
guidance based on performance to date, expected progress on our
strategic initiatives for the balance of the year and our planned
mitigation actions for the tariffs currently in effect."
First Quarter 2025 Results (1,2)
First quarter 2025 net sales totaled $2.6 billion, compared with
$2.8 billion in the first quarter of the prior year. Comparable
store sales for the first quarter 2025 decreased 0.6% and does not
include store closing sales at more than 500 corporate locations
that were closed in the quarter as part of our store optimization
program.
The Company's first quarter 2025 gross profit was $1.1 billion,
or 42.9% of net sales compared with $1.2 billion, or 43.4% in the
first quarter of the prior year. The deleverage was primarily
driven by approximately 90 basis points of margin headwind
associated with liquidation sales at closing store locations.
The Company's first quarter 2025 selling, general and
administrative (SG&A) expenses were $1.2 billion, or 48.0% of
net sales compared with $1.2 billion, or 41.5% in the first quarter
of the prior year. Adjusted SG&A expenses were $1.1 billion, or
43.2% of net sales in the first quarter of 2025 compared with $1.1
billion, or 41.4% in the first quarter of 2024. The deleverage was
primarily driven by higher labor-related expenses compared with the
prior year.
The Company's first quarter 2025 operating loss was $131
million, or 5.1% of net sales, compared with operating income of
$53 million, or 1.9% in the first quarter of the prior year.
Adjusted operating loss was $8 million, or 0.3% of net sales,
compared with adjusted operating income of $56 million, or 2.0% in
the first quarter of 2024. Our first quarter 2025 adjusted
operating margin was negatively impacted by approximately 90 basis
points of margin headwind associated with liquidation sales at
closing store locations, that is not included in non-GAAP
adjustments.
_______________________________
(1) All comparisons are based on
continuing operations for the same time period in the prior year.
The Company calculates comparable store sales based on the change
in store 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. Closed stores and stores
in process of closing under the restructuring plan are not included
in the comparable store sales calculation.
(2) Comparative financial information
related to results from continuing operations has been recast to
reflect the presentation of our former Worldpac, Inc. business
(“Worldpac”) as discontinued operations. Refer to the Company’s
Annual Report on Form 10-K for 2024, filed with the Securities and
Exchange Commission (“SEC”) on February 26, 2025.
The Company's first quarter 2025 effective tax rate benefit was
118.3%, compared with an effective tax rate expense of 41.4% in the
first quarter of 2024. The Company's effective tax rate was
impacted by a discrete benefit of $126 million in the first quarter
of 2025. The Company's diluted earnings per share for the quarter
was $0.40, compared with $0.29 in the first quarter of 2024. The
Company's adjusted diluted loss per share was $0.22 compared with
earnings per share of $0.33 in the first quarter of 2024.
Net cash used in operating activities was $156 million through
the first quarter of 2025 versus $3 million of cash used in
operating activities in the same period of the prior year. Free
cash flow through the first quarter of 2025 was an outflow of $198
million compared with an outflow of $49 million in the same period
of the prior year.
Capital Allocation
On May 13, 2025, the Company declared a regular cash dividend of
$0.25 per share to be paid on July 25, 2025, to all common
stockholders of record as of July 11, 2025.
Full Year 2025 Guidance (53 weeks)
We have reaffirmed our full year 2025 guidance as shown in the
table below. Our guidance assumes current tariffs remain in place
for the remainder of 2025.
As of May 22, 2025
($ in millions, except per share data)
Low
High
Net sales from continuing operations
(1)
$8,400
$8,600
Comparable store sales (52 weeks) (2)
0.5%
1.5%
Adjusted operating income margin from
continuing operations (4)
2.00%
3.00%
Adjusted diluted EPS from continuing
operations (3,4)
$1.50
$2.50
Capital expenditures
Approx. $300
Free cash flow (4)
$(85)
$(25)
New store growth
Store openings
30 new stores
Market hub openings
10 new market hubs
(1)
Includes approximately $100 to $120
million of net sales in the 53rd week.
(2)
The Company calculates comparable store
sales based on the change in store 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. The Company
includes sales from relocated stores in comparable store sales from
the original date of opening.
(3)
Includes approximately $0.40 related to
interest income for full year 2025 and approximately $0.05
contribution from the 53rd week.
(4)
Adjusted operating income margin from
continuing operations, Adjusted diluted EPS from continuing
operations and Free cash flow are non-GAAP measures. 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. The Company is not able to provide a
reconciliation of these forward-looking non-GAAP measures because
it is unable to predict with reasonable accuracy the value of
certain adjustments and as a result, the comparable GAAP measures
are unavailable without unreasonable efforts.
Investor Conference Call
The Company will detail its results for the first quarter ended
April 19, 2025, via a webcast scheduled to begin at 8 a.m. Eastern
Time on Thursday, May 22, 2025. 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 April 19, 2025, Advance operated
4,285 stores primarily within the United States, with additional
locations in Canada, Puerto Rico and the U.S. Virgin Islands. The
Company also served 881 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.
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,” “target,” “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, restructuring
and asset optimization, financial objectives, operational plans and
objectives, statements about the benefits of the sale of the
Company’s Worldpac business and use of proceeds therefrom,
statements regarding expectations for economic conditions, future
business and financial performance, including with respect to
tariffs, 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, risks
associated with the Company’s restructuring and asset optimization
plans, deterioration of general macroeconomic conditions,
geopolitical factors including increased tariffs and trade
restrictions, the highly competitive nature of the industry, demand
for the Company’s products and services, risks relating to the
impairment of assets, including intangible assets such as goodwill,
access to financing on favorable terms, complexities in the
Company’s inventory and supply chain and 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 millions) (unaudited)
Assets
April 19, 2025(1)
December 28, 2024(1)
Current assets:
Cash and cash equivalents
$
1,672
$
1,869
Receivables, net
494
544
Inventories, net
3,731
3,612
Other current assets
183
118
Total current assets
6,080
6,143
Property and equipment, net
1,265
1,334
Operating lease right-of-use assets
2,185
2,243
Goodwill
600
598
Other intangible assets, net
404
406
Other assets
83
74
Total assets
$
10,617
$
10,798
Liabilities and
Stockholders’ Equity
Current liabilities:
Accounts payable
3,425
3,408
Accrued expenses
663
784
Current portion of long-term debt
299
—
Other current liabilities
406
473
Total current liabilities
4,793
4,665
Long-term debt
1,491
1,789
Operating lease liabilities
1,881
1,897
Deferred income taxes
171
193
Other long-term liabilities
84
84
Total liabilities
8,420
8,628
Total stockholders' equity
2,197
2,170
Total liabilities and stockholders’
equity
$
10,617
$
10,798
(1)
This condensed consolidated balance sheet
has been prepared on a basis consistent with the Company's
previously prepared balance sheets filed with the Securities and
Exchange Commission ("SEC"), but does not include the footnotes
required by accounting principles generally accepted in the United
States of America (“GAAP”).
Advance Auto Parts, Inc. and
Subsidiaries
Condensed Consolidated
Statements of Operations
(In millions, except per share
data) (unaudited)
Sixteen Weeks Ended
April 19, 2025(1)
April 20, 2024(1)
Net sales
$
2,583
$
2,772
Cost of sales
1,474
1,568
Gross profit
1,109
1,204
Selling, general and administrative
expenses, exclusive of restructuring and related expenses
1,122
1,151
Restructuring and related expenses
$
118
—
Selling, general and administrative
expenses
1,240
1,151
Operating (loss) income
(131
)
53
Other, net:
Interest expense
(27
)
(25
)
Other income, net
27
1
Total other, net
—
(24
)
(Loss) income before income
taxes
(131
)
29
Income tax (benefit) expense
(155
)
12
Net income from continuing operations
24
17
Net income from discontinued
operations
—
23
Net income
$
24
$
40
Basic earnings per common share from
continuing operations
$
0.40
$
0.29
Basic earnings per common share from
discontinued operations
—
0.38
Basic earnings per common share
$
0.40
$
0.67
Basic weighted-average common shares
outstanding
59.8
59.6
Diluted earnings per common share from
continuing operations
$
0.40
$
0.29
Diluted earnings per common share from
discontinued operations
—
0.38
Diluted earnings per common
share
$
0.40
$
0.67
Diluted weighted-average common shares
outstanding
60.2
59.8
(1)
These preliminary condensed consolidated
statements of operations have been prepared on a basis consistent
with the Company's previously prepared statements of operations
filed with the SEC, but do not include the footnotes required by
GAAP.
Advance Auto Parts, Inc. and
Subsidiaries
Condensed Consolidated
Statements of Cash Flows
(In millions) (unaudited)
Sixteen Weeks Ended
April 19, 2025(1)
April 20, 2024(1)
Cash flows from operating
activities:
Net income
$
24
$
40
Net income from discontinued
operations
—
23
Net income from continuing operations
24
17
Adjustments to reconcile net income to net
cash used in operating activities:
Depreciation and amortization
89
83
Share-based compensation
11
15
Loss (Gain) on sale and impairment of
long-lived assets, net
10
(18
)
Provision for deferred income taxes
(22
)
3
Other, net
3
1
Net change in:
Receivables, net
51
3
Inventories, net
(114
)
1
Operating lease right of use assets
50
(1
)
Other assets
(69
)
(15
)
Accounts payable
14
(134
)
Accrued expenses
(119
)
16
Operating lease liabilities
(81
)
30
Other liabilities
(3
)
(4
)
Net cash used in operating activities of
continuing operations
(156
)
(3
)
Net cash provided by operating activities
of discontinued operations
—
6
Net cash (used in) provided by operating
activities
(156
)
3
Cash flows from investing
activities:
Purchases of property and equipment
(42
)
(46
)
Proceeds from sales of property and
equipment
15
10
Net cash used in investing activities of
continuing operations
(27
)
(36
)
Net cash used in investing activities of
discontinued operations
—
(3
)
Net cash used in investing activities
(27
)
(39
)
Cash flows from financing
activities:
Dividends paid
(15
)
(15
)
Purchase of noncontrolling interest
—
(7
)
Proceeds from the issuance of common
stock
2
1
Repurchases of common stock
(2
)
(3
)
Other, net
(2
)
(1
)
Net cash used in financing activities
(17
)
(25
)
Sixteen Weeks Ended
April 19, 2025(1)
April 20, 2024(1)
Effect of exchange rate changes on
cash
3
9
Net decrease in cash and cash
equivalents
(197
)
(52
)
Cash and cash equivalents, beginning of
period
1,869
503
Cash and cash equivalents, end of
period
$
1,672
$
451
Non-cash transactions of continuing
operations:
Accrued purchases of property and
equipment
$
12
$
9
Summary of cash and cash
equivalents:
Cash and cash equivalents of continuing
operations, end of period
$
1,672
$
437
Cash and cash equivalents of
discontinued operations, end of period
—
14
Cash and cash equivalents, end of
period
$
1,672
$
451
(1)
This condensed consolidated statement of
cash flows has been prepared on a basis consistent with the
Company's previously prepared statements of operations filed with
the SEC, but does not include the footnotes required by GAAP.
Reconciliation of Non-GAAP Financial Measures
The Company uses certain non-GAAP financial measures described
below to supplement the Company's unaudited condensed consolidated
financial statements prepared and presented in accordance with GAAP
and to understand and evaluate the Company's core operating
performance. These non-GAAP financial measures, which may be
different than similarly titled measures used by other companies,
are presented as the Company believes that such non-GAAP financial
measures provide useful information about our financial
performance, enhance the overall understanding of our past
performance and future prospects, and allow for greater
transparency with respect to important metrics used by management
for financial and operational decision-making. The Company is
presenting these non-GAAP metrics to provide investors insight to
the information used by our management to evaluate our business and
financial performance. The Company believes that these measures
provide investors increased comparability of our core financial
performance over multiple periods with other companies in our
industry. Non-GAAP financial measures, including Adjusted Net
(loss) income, Adjusted Diluted (loss) Earnings Per Share
(“Adjusted Diluted EPS”), Adjusted Gross Profit, Adjusted Gross
Profit Margin, Adjusted Sales, General and Administrative expense
(“Adjusted SG&A”), Adjusted SG&A Margin, Adjusted Operating
(loss) Income and Adjusted Operating (loss) Income Margin, should
not be used as a substitute for GAAP financial measures, or
considered in isolation, for the purpose of analyzing operating
performance, financial position or cash flows.
The Company has presented these non-GAAP financial measures as
the Company believes that the presentation of the financial results
that exclude (1) transformation expenses under the Company’s
turnaround plan, inclusive of the Worldpac divestiture and (2)
other significant expenses, are useful and indicative of the
Company's base operations because the expenses vary from period to
period in terms of size, nature and significance. The income tax
impact of these non-GAAP adjustments is also adjusted for using the
estimated tax rate in effect for the respective non-GAAP
adjustments. These measures assist in comparing the Company’s
current operating results with past periods and with the
operational performance of other companies in the industry. The
disclosure of these measures allows investors to evaluate the
Company’s performance using the same measures management uses in
developing internal budgets and forecasts and in evaluating
management’s compensation. Included below is a description of the
expenses the Company has determined are not normal, recurring cash
operating expenses necessary to operate the Company’s business and
the rationale for why providing these measures is useful to
investors as a supplement to the GAAP measures.
Transformation Expenses
Expenses incurred in connection with the Company's turnaround
plan and specific transformative activities related to asset
optimization that the Company does not view to be normal cash
operating expenses. These expenses primarily include:
- Restructuring and other related expenses: Expenses relating to
strategic initiatives, including severance expense, retention
bonuses offered to store-level employees to help facilitate the
closing of stores, incremental reserves related to the
collectibility of receivables resulting from contract terminations
with certain independents associated with the 2024 Restructuring
Plan and third-party professionals assisting in the development and
execution of the strategic initiatives.
- Impairment and write-down of long-lived assets: Expenses
relating to the impairment of operating lease ROU assets and
property and equipment, incremental depreciation as a result of
accelerating long-lived assets over a shorter useful life,
depreciation of long-lived assets and ROU asset amortization after
store closure, and incremental lease abandonment expenses as a
result of accelerating ROU asset amortization for leases the
Company expects to exit before the end of the contractual term, net
of gains on lease terminations, in connection with the 2024
Restructuring Plan and Other Restructuring Plan.
- Distribution network optimization: Expenses primarily relating
to the conversion of the stores and distribution centers to market
hubs, including temporary labor, incremental depreciation, as a
result of accelerating long-lived assets over a shorter useful
life, nonrecurring professional service fees and team member
severance.
Other Expenses
Expenses incurred by the Company that are not viewed as normal
cash operating expenses and vary from period to period in terms of
size, nature, and significance. These expenses primarily
include:
- Other professional service fees: Expenses relating to
nonrecurring services rendered by third-party vendors engaged to
perform a strategic business review, including the Company’s
transformation initiatives.
- Worldpac post transaction-related expenses: Expenses primarily
relating to non-recurring separation activities provided by
third-party professionals subsequent to the sale of Worldpac.
- Executive turnover: Expenses associated with executive level
reorganization, including expenses for executive severance, the
hiring search for leadership positions and certain compensation
benefits.
- Material weakness remediation: Incremental expenses associated
with the remediation of the Company’s previously disclosed material
weaknesses in internal control over financial reporting.
- Cybersecurity incident: Expenses related to the response and
remediation of a cybersecurity incident.
- Other tax adjustments: Certain tax items that are unrelated to
the fiscal year in which they are recorded are excluded in order to
provide a clearer understanding of the Company's ongoing Non-GAAP
tax rate and after-tax earnings.
Reconciliation of Diluted Earnings Per
Share (GAAP) and Adjusted Diluted (Loss) Earnings Per Share
(Non-GAAP)
Sixteen Weeks Ended
(in millions, except per share data)
Classification
April 19, 2025
April 20, 2024
Net income from continuing operations
(GAAP)
$
24
$
17
Selling, general and administrative
adjustments:
Transformation expenses:
Restructuring and other related expenses
(1)
Restructuring
63
—
Impairment and write-down of long-lived
assets (2)
Restructuring
45
—
Distribution network optimization
Restructuring
3
—
Other expenses:
Other professional service fees
Non-restructuring (5)
4
1
Worldpac post transaction-related
expenses
Restructuring
3
—
Executive turnover
Restructuring
4
—
Material weakness remediation
Non-restructuring
1
2
Other income adjustments:
TSA services
(4
)
—
Provision for income taxes on adjustments
(3)
(30
)
—
Other tax (benefit) expense adjustments
(4)
(126
)
—
Adjusted net (loss) income (Non-GAAP)
$
(13
)
$
20
Diluted earnings per share from continuing
operations (GAAP)
$
0.40
$
0.29
Adjustments, net of tax
(0.62
)
0.04
Adjusted diluted (loss) earnings per share
(Non-GAAP) (6)
$
(0.22
)
$
0.33
(1)
Restructuring and other related expenses
included $30 million of nonrecurring services rendered by
third-party vendors assisting with the 2024 Restructuring Plan, $15
million of severance and other labor related costs, $7 million
related to incremental reserves on loan guarantees and $11 million
of other related expenses associated with closures, including the
transfer of assets.
(2)
The Company recorded impairment charges
for ROU assets and property and equipment of $9 million, net of
gains on sale, and incremental accelerated depreciation and
amortization for property and equipment and ROU assets of $36
million.
(3)
The income tax impact of non-GAAP
adjustments is calculated using the estimated tax rate in effect
for the respective non-GAAP adjustments.
(4)
Income tax (benefit) expenses included a
discrete non-recurring tax benefit associated with capital loss
deductions effectuated in the first quarter of fiscal 2025. The
benefit has been excluded from Non-GAAP results in order to provide
a clearer understanding of the ongoing Non-GAAP tax rate and
after-tax earnings.
(5)
Other professional service fees in fiscal
2024 were classified as restructuring and restructuring related
expenses based on the underlying activity to which they
related.
(6)
Refer to the reconciliation of diluted
weighted-average common shares outstanding (GAAP) to adjusted
diluted weighted-average common shares outstanding (Non-GAAP) which
is the denominator utilized to calculate adjusted diluted (loss)
earnings per share (Non-GAAP). Adjusted diluted weighted-average
common shares outstanding (Non- GAAP) excludes the dilutive impact
of share-based awards as such shares are considered anti-dilutive
in consideration of the Company's Non-GAAP loss for the period.
Reconciliation of Adjusted Diluted
Weighted-Average Common Shares Outstanding
Sixteen Weeks Ended
(shares in millions)
April 19, 2025
April 20, 2024
Diluted Weighted-Average Common Shares
Outstanding (GAAP)
60.2
59.8
Anti-dilutive impact of share-based
awards
0.4
—
Adjusted Diluted Weighted-Average Common
Shares Outstanding (Non-GAAP)
59.8
59.8
Reconciliation of Adjusted Selling,
General and Administrative Expenses
Sixteen Weeks Ended
(in millions)
April 19, 2025
April 20, 2024
Selling, general and administrative
("SG&A") expenses (GAAP)
$
1,240
$
1,151
SG&A adjustments
123
3
Adjusted SG&A (Non-GAAP)
$
1,117
$
1,148
SG&A Margin (GAAP) (1)
48.0
%
41.5
%
Adjusted SG&A Margin (Non-GAAP)
(1)
43.2
%
41.4
%
(1) These GAAP and Non-GAAP measures are
calculated as a percentage of Net sales.
Reconciliation of
Adjusted Operating Income
Sixteen Weeks Ended
(in millions)
April 19, 2025
April 20, 2024
Operating (loss) income (GAAP)
$
(131
)
$
53
SG&A adjustments
123
3
Adjusted Operating (Loss) Income
(Non-GAAP)
$
(8
)
$
56
Operating (Loss) Income Margin (GAAP)
(1)
(5.1
)%
1.9
%
Adjusted Operating (Loss) Income Margin
(Non-GAAP) (1)
(0.3
)%
2.0
%
(1) These GAAP and Non-GAAP measures are
calculated as a percentage of Net sales.
Reconciliation of
Free Cash Flow
Sixteen Weeks Ended
(in millions)
April 19, 2025
April 20, 2024
Cash flows used in operating activities of
continuing operations
$
(156
)
$
(3
)
Purchases of property and equipment
(42
)
(46
)
Free cash flow
$
(198
)
$
(49
)
Reconciliation of
Adjusted Debt to Adjusted EBITDAR(1)
Four Quarters Ended
(In millions, except adjusted debt to
adjusted EBITDAR ratio)
April 19, 2025
Total Debt (GAAP)
$
1,790
Add: Operating lease liabilities
2,279
Adjusted Debt (Non-GAAP)
$
4,069
Net (loss) income (GAAP)
$
(580
)
Depreciation and amortization
298
Interest expense
83
Other income, net
(52
)
Income tax (benefit) expense
(348
)
Rent expense
605
Share-based compensation
38
Other charges (2)
25
Transformation related charges
842
Adjusted EBITDAR (Non-GAAP)
$
911
Debt to Net (Loss) Income
(GAAP)
(3.1
)
Adjusted Debt to Adjusted EBITDAR
(Non-GAAP)
4.5
(1)
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 income, 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.
(2)
The adjustments to the four quarters
ended April 19, 2025,
include expenses associated with the Company's material weakness
remediation efforts and executive turnover.
Store Information
During the sixteen weeks ended April 19, 2025, 10 stores were
opened and 513 were closed, resulting in a total of 4,285 stores as
of April 19, 2025, compared with a total of 4,788 stores as of
December 28, 2024.
The below table summarizes the changes in the number of
company-operated stores during the sixteen weeks ended April 19,
2025:
Sixteen Weeks Ended
AAP
CARQUEST
Total
December 28, 2024
4,507
281
4,788
New
9
1
10
Closed
(466
)
(47
)
(513
)
Converted
—
April 19, 2025
4,050
235
4,285
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250522945158/en/
Investor Relations Contact: Lavesh Hemnani T: (919)
227-5466 E: invrelations@advance-auto.com
Media Contact: Nicole Ducouer T: (984) 389-7207 E:
AAPcommunications@advance-auto.com
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