AutoZone 1999 Annual Report Download

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1999 Annual Report
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Table of contents

  • Page 1
    it's still about WITTDTJR 1999 Annual Report

  • Page 2
    ... en Mexico. We also sell heavy-duty truck parts through 46 TruckPro stores in 14 states. Through ALLDATA, we provide electronic diagnostic and repair information. We offer the professional technician a complete software package, and the DIYer can purchase vehicle-specific information on CD-ROM. The...

  • Page 3
    AUTOZONISMS ARBST Ð Alternator Regulator Battery Starter Tester. ItÕs the rolling cart we use to diagnose our customersÕ vehicles for free in the parking lot. AutoZoner Ð Anyone who serves customers at the nationÕs #1 auto parts chain. CSR Ð Customer Service Representative. Not only do these ...

  • Page 4
    ... the store support center in Memphis. Extensive searches outside the company produced important additions to our senior management team. Gene Auerbach was named senior vice president, store development, customer satisfaction. He replaces Lawrence Evans who retired at the end of the fiscal year. Gene...

  • Page 5
    ... made us the industry leader - things like our enduring culture, our cutting-edge store development concepts, our passion for providing the best parts and our famous customer service. That focus on the core business is reflected in this annual report. Our 20th birthday created a terrific opportunity...

  • Page 6
    ... job right. Not only do we cram the right parts information in there, but weÕve got all kinds of vehicle specifications, diagnostic tips and the industryÕs only national electronic warranty database. This database, still without peers after seven years online, tracks every warranty so the customer...

  • Page 7

  • Page 8
    .... Brakes, water pumps, alternators, shocks, belts and hoses. The parts that launched our business are still on every car. Plus, we carry oxygen sensors, ignition control modules, coolant temperature sensors and all the other computercontrolled parts that have come along in the last 20 years. Funny...

  • Page 9
    7

  • Page 10
    ... of our store designs best fits the local market. Yes, itÕs a science. And it pays off. With 2,717 applications of our formula Ð sparkling stores, top-quality parts and trademark customer service Ð we think itÕs safe to say that what it took to do the job right on July 4, 1979, in Forrest City...

  • Page 11
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  • Page 12
    ...Para ayudarlo a descifrar este reporte, le ofrecemos un pequeÂ-o glosario de tÂŽrminos. Por supuesto que este no es un manual sobre la cultura de AutoZone, pero lo llevar‡ del principio al fin en las siguientes ocho p‡ginas. ARBST Ð (Alternator Regulator Battery Starter Tester) Aparato para hacer...

  • Page 13
    ... una gran experiencia en sistemas de ventas al por menor, recientemente era CIO y senior vice president de Brylane, Inc. Ð un negocio de ventas al consumidor por cat‡logo, el cual incluye Lane Bryant and ChadwickÕs of Boston. Bruce ser‡ responsable por promover nuestro margen competitivo en el...

  • Page 14
    ... una baterÂ'a Duralast Gold igualmente muerta (aunque...partes correctas y adem‡s prestarle las herramientas para hacer el trabajo correctamente? Es algo disparatado. Y a los clientes les encanta. Les encanta cuando un AutoZoner tiene un minuto extra para instalar los hules del limpiaparabrisas o los...

  • Page 15
    ...partes correctas. ÀQuŽ tan buenas son las partes si lo œnico que hacen es coleccionar polvo? Nuestro moderno sistema, flexogram, determina cuales son las partes que cada tienda necesita para servir a la base...no muy amistosa, o, en el caso de AutoZone, un ambiente brillante y limpio, donde las ...

  • Page 16
    ......Closed stores ...Net new stores ...Number of domestic auto parts stores at end of year ...Total domestic auto parts store square footage (000Õs) ...Percentage increase in domestic auto parts store square footage ...Percentage increase in domestic auto parts comparable store net sales . . Average...

  • Page 17
    ...148,726 $ 424,402 85,373 882,102 339,029 4,252 528,377 Fiscal Year Ended August 1993 1992 $1,216,793 $1,002,327 731,971 602,956 344,060 295,...1990 $ 671,725 416,846 205,609 49,270 (10,936 ) 38,334 14,840 $ 23,494 $0.19 121,212 $ 191,736 26,803 327,368 164,933 74,851 80,356 504 38 7 4 34 538 3,031 10...

  • Page 18
    ... (Unaudited) Twelve Weeks Ended (in thousands, except per share data) November 21, 1998 Net sales ...Increase in comparable store sales ...Gross profit ...Operating profit ...Income before income taxes ...Net income ...Basic earnings per share ...Diluted earnings per share ...Stock price range: High...

  • Page 19
    ... Review The following table sets forth income statement data of the Company expressed as a percentage of net sales for the periods indicated: Fiscal Year Ended August 29, 1998 100.0% 58.3 41.7 29.9 11.8 0.6 4.2 7.0% August 28, 1999 Net sales Cost of sales, including warehouse and delivery expenses...

  • Page 20
    ... system memory, hard storage space and processing cycles, early programmers recorded dates using only the last two digits of the year. Year 2000 problems arise when performing date calculations between centuries based upon two digit year fields. The Company began addressing the Year 2000 issue in...

  • Page 21
    ... loss of communications with stores, distribution centers or business partners; inability to process transactions in a timely manner or loss of power. The Company plans to have dedicated resources available to address any Year 2000 issue that may arise. These resources will be managed through...

  • Page 22
    Consolidated Statements of Income Net sales Cost of sales, including warehouse and delivery expenses Operating, selling, general and administrative expenses Operating profit Interest expense Ð net Income before income taxes Income taxes Net income Weighted average shares for basic earnings per ...

  • Page 23
    ...Õ Equity Other assets: Cost in excess of net assets acquired, net of accumulated amortization of $15,375 in 1999 and $9,096 in 1998 337,261 Deferred income taxes 76,412 Other assets 7,524 421,197 $3,284,767 Current liabilities: Accounts payable $ 757,447 Accrued expenses 230,036 Income taxes...

  • Page 24
    ... Cash Flows Year Ended (52 Weeks) August 28, August 29, August 30, 1999 1998 1997 (in thousands) Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of property and equipment Amortization of...

  • Page 25
    ... translation adjustment Comprehensive income Purchase of 8,657 shares of Treasury Stock Sale of 924 shares of Common Stock under stock option and stock purchase plans Tax benefit of exercise of stock options Balance at August 28, 1999 $1,540 10 1,530 17 1,513 12 $1,501 Additional Paid-in Capital...

  • Page 26
    ..., the Company sells heavy duty truck parts and accessories through its 46 TruckPro stores in 14 states, automotive diagnostic and repair software through ALLDATA and diagnostic and repair information through alldatadiy.com. Fiscal Year: The CompanyÕs fiscal year consists of 52 or 53 weeks ending on...

  • Page 27
    ...as Ã'Auto PalaceÃ") in fiscal 1998. The use of the NOLs is subject to annual limitations. A valuation allowance of $10,813,000 in fiscal 1999 and $15,902,000 in fiscal 1998 relates to certain of those carryforwards. The provision for income tax expense (benefit) consists of the following: Year Ended...

  • Page 28
    ... both publicly traded, was approximately $184 million and $143 million respectively based on the market price at August 28, 1999. The estimated fair values of all other long-term borrowings approximate their carrying values primarily because of their variable interest rates. Subsequent to year-end...

  • Page 29
    ...) through regular payroll deductions. Annual purchases are limited to $4,000 per employee. Under the plan 268,554 shares were sold in fiscal 1999 and 232,389 shares were sold in fiscal 1998. The Company repurchased 210,525 shares in fiscal 1999 and 275,526 shares in fiscal 1998 for sale under the...

  • Page 30
    ... class action lawsuit entitled Ã'Melvin Quinnie on behalf of all others similarly situated v. AutoZone, Inc., and DOES 1 through 100, inclusiveÃ" filed in the Superior Court of California, County of Los Angeles, in November 1998. The plaintiff claims that the defendants failed to pay overtime...

  • Page 31
    ... action lawsuit entitled Ã'Paul D. Rusch, on behalf of all others similarly situated, v. Chief Auto Parts Inc. and AutoZone, Inc.Ã" filed in the Superior Court of California, County of Los Angeles, in May 1999. The plaintiffs claim that the defendants have failed to pay their store managers overtime...

  • Page 32
    ...Financial Officer Customer Satisfaction Memphis, Tennessee September 29, 1999 Corporate Information Transfer Agent and Registrar EquiServe P .O. Box 2500 Jersey City, New Jersey 07303-2500 (800) 756-8200 (201) 324-0498 equiserve.com Stock Exchange Listing New York Stock Exchange Ticker Symbol: AZO...

  • Page 33
    ...James A. Etzkorn Systems Technology & Support Clete Faddis Stores Board of Directors John C. Adams, Jr. Chairman and CEO Customer Satisfaction Andrew M. Clarkson (3*) Chairman Finance Committee Customer Satisfaction Dr. N. Gerry House (2) Superintendent Memphis City Schools Robert J. Hunt Executive...

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  • Page 35
    Yes, our customer service, our quality parts and our innovative stores propelled us into the lead in the parts business. But we have a secret weapon. A silent partner, if you will. Memphis. Our store support center overlooks the mighty Mississippi, the original path for AmericaÕs distribution. ...

  • Page 36
    AutoZoners always put customers first. We know our parts and products. Our stores look great. And weÕve got the best merchandise at the right price.