Napa Auto Parts 2009 Annual Report Download - page 24

Download and view the complete annual report

Please find page 24 of the 2009 Napa Auto Parts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 71

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71

Table of Contents

The following is a summary of the quarterly results of operations for the years ended December 31, 2009 and 2008:

   


Net Sales    
Gross Profit    
Net Income    
Earnings Per Share:
Basic    
Diluted    
2008
Net Sales $2,739,473 $2,873,485 $2,882,115 $2,520,190
Gross Profit 819,483 852,213 849,005 751,789
Net Income 123,543 133,073 131,017 87,784
Earnings Per Share:
Basic .75 .81 .81 .55
Diluted .75 .81 .81 .55
We recorded the quarterly earnings per share amounts as if each quarter was a discrete period. As a result, the sum of the basic and
diluted earnings per share will not necessarily total the annual basic and diluted earnings per share.
The preparation of interim consolidated financial statements requires management to make estimates and assumptions for the
amounts reported in the interim condensed consolidated financial statements. Specifically, the Company makes certain estimates in its
interim consolidated financial statements for the accrual of bad debts, inventory adjustments and discount and volume incentives earned.
Bad debts are accrued based on a percentage of sales, and volume incentives are estimated based upon cumulative and projected
purchasing levels. Inventory adjustments are accrued on an interim basis and adjusted in the fourth quarter based on the annual October
31 book-to-physical inventory adjustment. The methodology and practices used in deriving estimates for interim reporting typically
results in adjustments upon accurate determination at year-end. The effect of these adjustments in 2009 and 2008 was not significant.

Some statements in this report, as well as in other materials we file with the Securities and Exchange Commission (SEC) or
otherwise release to the public and in materials that we make available on our website, constitute forward-looking statements that are
subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Senior officers may also make verbal
statements to analysts, investors, the media and others that are forward-looking. Forward-looking statements may relate, for example, to
future operations, prospects, strategies, financial condition, economic performance (including growth and earnings), industry conditions
and demand for our products and services. The Company cautions that its forward-looking statements involve risks and uncertainties,
and while we believe that our expectations for the future are reasonable in view of currently available information, you are cautioned not to
place undue reliance on our forward-looking statements. Actual results or events may differ materially from those indicated as a result of
various important factors. Such factors include, but are not limited to, the ability to maintain favorable supplier arrangements and
relationships, changes in general economic conditions, the growth rate of the market demand for the Company’s products and services,
competitive product, service and pricing pressures, including internet related initiatives, changes in financial markets, including
particularly the capital and credit markets, impairment of financial institutions, the effectiveness of the Company’s promotional,
marketing and advertising programs, changes in laws and regulations,
24