10-KPeriod: FY2013

AUTOZONE INC Annual Report, Year Ended Aug 31, 2013

Filed October 28, 2013For Securities:AZO

Summary

AutoZone Inc. (AZO) in its 2013 10-K filing reports robust performance for the fiscal year ending August 31, 2013, with record net income of $1.016 billion, a 9.3% increase year-over-year, and sales growth of 6.3% reaching $9.148 billion. This growth was attributed to contributions from new stores, a 53rd week in the fiscal calendar, and the acquisition of AutoAnything. The company continues to expand its footprint, operating 5,201 stores across the U.S., Mexico, and Brazil, with a strong emphasis on its commercial sales program. Despite challenging macroeconomic conditions such as high gas prices and unemployment, AutoZone's core business, driven by failure and maintenance-related categories, remained resilient. The company also reported significant share repurchases totaling $1.39 billion in fiscal 2013, demonstrating a commitment to returning capital to shareholders. Key operational strategies include a focus on superior customer service, leveraging technology like the proprietary Z-net system, and a tailored inventory approach to meet local market needs. AutoZone also highlighted the strategic importance of its hub store model for efficient distribution. Looking ahead, the company plans to continue investing in store development and infrastructure enhancements, anticipating increased capital expenditures in fiscal 2014. AutoZone's financial health is supported by strong operating cash flow and an accessible revolving credit facility, positioning it to navigate economic uncertainties and pursue future growth opportunities.

Financial Highlights

51 data points
Beta

Revenue

$9.15B

51.8% Gross Margin

Net Income

$1.02B

11.1% Net Margin

EPS (Diluted)

$27.79

Total Assets

$6.87B

Cash & Equivalents

$142.19M

Free Cash Flow

$1.00B

Financial Statements
Beta
Revenue$9.15B
Cost of Revenue$4.41B
Gross Profit$4.74B
SG&A Expenses$2.97B
Operating Income$1.77B
Interest Expense$188.32M
Net Income$1.02B
EPS (Basic)$28.28
EPS (Diluted)$27.79
Shares Outstanding (Basic)35.94M
Shares Outstanding (Diluted)36.58M

Key Highlights

  • 1Record net income of $1.016 billion, a 9.3% increase over the prior year.
  • 2Net sales grew by 6.3% to $9.148 billion, driven by new store openings, a 53rd week, and the AutoAnything acquisition.
  • 3Expanded store base to 5,201 locations across the United States, Mexico, and Brazil.
  • 4Commercial sales program showed growth, contributing to overall business expansion.
  • 5Significant share repurchases totaling $1.39 billion in fiscal 2013, with $468.4 million remaining authorization.
  • 6Gross profit margin improved to 51.8% from 51.5% in the prior year, attributed to lower product acquisition costs.
  • 7Continued focus on operational efficiency and customer service, supported by proprietary technology like Z-net.

Frequently Asked Questions

AutoZone Inc. is the leading retailer and a leading distributor of automotive replacement parts and accessories in the United States. As of August 31, 2013, the company operated 5,201 stores across the United States, Mexico, and Brazil, and served both the Do-It-Yourself (DIY) and professional repair markets.

In fiscal year 2013, AutoZone reported record net income of $1.016 billion, an increase of 9.3% from the previous year. Net sales increased by 6.3% to $9.148 billion, driven by new store openings, the inclusion of a 53rd week in the fiscal calendar, and the acquisition of AutoAnything. Gross profit margin also improved slightly to 51.8%.

Key risks include potential slowdowns in product demand due to macroeconomic factors like recessionary conditions, high energy prices, and consumer debt levels. Competition from various retail and online channels is also a significant factor. Additionally, the company faces risks related to its ability to hire and retain qualified employees, supply chain disruptions, and the need to protect its brand reputation.

AutoZone's growth strategy involves continued new store development, strategic acquisitions (like AutoAnything), and expanding its commercial sales program. For capital allocation, the company actively repurchases its common stock, having spent $1.39 billion on share repurchases in fiscal 2013, demonstrating a commitment to returning value to shareholders. The company also plans to increase capital expenditures in fiscal 2014 for store development and infrastructure.