AutoZone 1997 Annual Report Download

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1997 ANNUAL REPORT

Table of contents

  • Page 1
    1 9 9 7 A N N U A L R E P O R T

  • Page 2
    ... first. We know our parts and products. Our stores look great. And we've got the best merchandise at the right price. Store Support Center Memphis, TN Distribution Centers Danville, IL Lafayette, LA Lavonia, GA Lexington, TN Phoenix, AZ San Antonio, TX Zanesville, OH Indicates a new state for F97

  • Page 3
    ... asked question, "When will AutoZone be in California?" That answer came on July 4 - • Comparable store sales increased by 8%. • Net income increased 17% to $195 million. ($ millions) Sales our 18th birthday - when we opened our doors in 2,691 2,243 1,808 the town of El Centro. While...

  • Page 4
    ... & Hyde, our former parent company. He was vital in developing AutoZone's culture and his influence will be felt for years to come. Pitt retired 18 years after founding AutoZone and 30 years after joining Malone & Hyde. His vision of taking customer service to a new level in the auto parts industry...

  • Page 5
    Your neighborhood auto parts store - all across America. 4

  • Page 6
    ..., South Carolina to El Centro, California. From Indianapolis, Indiana to Brownsville, Texas. From Detroit, Michigan to Andalusia, Alabama. It's something that's as common in small town America as it is in our bustling big cities. The neighborhood AutoZone store. It was born in Forrest City, Arkansas...

  • Page 7
    ... customers in the state of California. At press time, Yucaipa's commercial AutoZone customer Jeff Ranney. And his pride and joy is a '68 Chevy pickup. Jeff is co-owner of a local repair shop and was one of our very first customers when we opened our doors in July. "When you buy as many parts...

  • Page 8
    7

  • Page 9
    ...with Iowa, you probably haven't been there lately. In Cedar Rapids, towering grain silos and windmills share the skyline with office buildings, manufacturing facilities and neighborhood stores, like AutoZone. Mark Petersen manages the AutoZone store on Blairs Ferry Road - one of three that opened in...

  • Page 10
    9

  • Page 11
    .... Having worked in other parts stores for many years, Joe came to AutoZone about nine years ago. When he did, many of his customers came with him. They like the way he goes the extra mile to get the job done right. It's because of people like Joe that the Sergeant Garcia store is one of the company...

  • Page 12
    11

  • Page 13
    ... says. "They don't just sell parts - they really listen to your problem and help hear. After all, she's the manager of our Johnstown store. Lynn and her husband, Ron, moved to Johnstown from Memphis. His job? He's the manager of the AutoZone in nearby Somerset, Pennsylvania. "We kept hearing about...

  • Page 14
    13

  • Page 15
    ... year ...New stores ...Replacement stores ...Closed stores...Net new stores ...Number of stores at end of year...Total store square footage (000's) ...Percentage increase in square footage ...Percentage increase in comparable store net sales...Average net sales per store (000's) ...Average net sales...

  • Page 16
    ....50 $20.13 $26.13 $22.25 $29.50 $22.25 Seventeen Weeks Ended November 18, 1995 Net sales ...Increase in comparable store sales ...Gross profit ...Operating profit ...Income before income taxes ...Net income ...Net income per share ...Stock price range: High ...Low ...$29.63 $24.75 $30.13 $24.13 $37...

  • Page 17
    ...in net sales of $313.1 million for stores opened since the beginning of fiscal 1996, offset by net sales for the 53rd week of fiscal 1996. At August 30, 1997, the Company had 1,728 stores in operation, a net increase of 305 stores, or approximately 23% in new store square footage for the year. Gross...

  • Page 18
    ... net new stores in fiscal 1997. Construction commitments totaled approximately $52 million at August 30, 1997. The Company's new store development program requires significant working capital, principally for inventories. Historically, the Company has negotiated extended payment terms from suppliers...

  • Page 19
    ... Income before income taxes Income taxes Net income Net income per share Average shares outstanding, including common stock equivalents Year Ended August 30, August 31, August 26, 1997 1996 1995 (52 Weeks) (53 Weeks) (52 Weeks) (in thousands, except per share data) $2,691,440 $2,242,633 $1,808,131...

  • Page 20
    ... Balance Sheets August 30, 1997 August 31, 1996 (in thousands, except per share data) Assets Current assets: Cash and cash equivalents Accounts receivable Merchandise inventories Prepaid expenses Deferred income taxes Total current assets Property and equipment: Land Buildings and improvements...

  • Page 21
    ... Proceeds from disposals of property and equipment Net cash used in investing activities Cash flows from financing activities: Repayment of long-term debt Net borrowings under debt agreements Net proceeds from sale of Common Stock, including related tax benefit Net cash provided by financing...

  • Page 22
    ... Balance at August 27, 1994 Net income Sale of 1,635 shares of Common Stock under stock option and stock purchase plans Tax benefit of exercise of stock options Balance at August 26, 1995 Net income Equity of pooled entity (issued 1,697 shares) Sale of 1,386 shares of Common Stock under stock option...

  • Page 23
    ... Statements Note A - Significant Accounting Policies Business: The Company is a specialty retailer of automotive parts and accessories. At the end of fiscal 1997, the Company operated 1,728 stores in 32 states. Fiscal Year: The Company's fiscal year consists of 52 or 53 weeks ending on the last...

  • Page 24
    ...,500 Significant components of the Company's deferred tax assets and liabilities are as follows: August 30, August 31, 1997 1996 (in thousands) Deferred tax assets: Insurance reserves Unearned income Net operating loss carryforwards Property and equipment Other Less valuation allowance Deferred tax...

  • Page 25
    ... regular payroll deductions. Annual purchases are limited to $4,000 per employee. Under the plan, 308,141 shares were sold in fiscal 1997 and 226,541 shares were sold in fiscal 1996, including 168,362 and 173,572 shares, respectively, purchased by the Company for sale under the plan. No shares of...

  • Page 26
    ... and product liability losses. The Company is also self-insured for health care claims for eligible active employees. The Company maintains certain levels of stop loss coverage for each self-insured plan. Self-insurance costs are accrued based upon the aggregate of the liability for reported claims...

  • Page 27
    ... 19, 1997 Corporate Information Transfer Agent and Registrar First Chicago Trust Company of New York P.O. Box 2500 Jersey City, New Jersey 07303-2500 (800) 756-8200 (201) 324-0498 Auditors Ernst & Young LLP Memphis, Tennessee Store Support Center 123 South Front Street Memphis, Tennessee 38103...

  • Page 28
    ... Stores Grantland E. McGee Jr. Stores John Minervini Business Development David W. Nichols Stores Robert F. Osswald AutoZoner Development & Training William C. Rhodes Operations Analysis & Support Richard C. Smith Stores Dennis P. Tolivar Sr. Stores Other Corporate Officers Customer Satisfaction...

  • Page 29
    ... our headquarters building - the J. R. Hyde III Store Support Center. Yet, the biggest tribute we can pay him is to continue to find new ways to amaze our customers. results. Eighteen years later, there's little question he was right. As chairman and CEO of AutoZone, Pitt guided the company he...

  • Page 30