10-KPeriod: FY2014

AUTOZONE INC Annual Report, Year Ended Aug 30, 2014

Filed October 27, 2014For Securities:AZO

Summary

AutoZone Inc. (AZO) reported strong performance for the fiscal year ending August 30, 2014, with record net income of $1.07 billion, a 5.2% increase year-over-year, and sales growth of 3.6% to $9.475 billion. The company benefited from a 2.8% increase in domestic same-store sales and expansion of its commercial business. Failure and maintenance-related product categories continued to be the strongest performers, accounting for approximately 84% of total sales. The company's strategy emphasizes superior customer service, a wide product selection, and competitive pricing, supported by its in-house brands like Duralast. AutoZone continued its store expansion, ending the year with 5,391 stores across the U.S., Mexico, and Brazil. Investments in its supply chain and hub store model are ongoing to improve product availability and delivery times. Despite facing risks such as economic downturns, competition, and rising costs, AutoZone remains focused on its core strengths and market positioning.

Financial Highlights

50 data points
Beta

Revenue

$9.48B

52.1% Gross Margin

Net Income

$1.07B

11.3% Net Margin

EPS (Diluted)

$31.57

Total Assets

$7.50B

Cash & Equivalents

$124.48M

Free Cash Flow

$903.12M

Financial Statements
Beta
Revenue$9.48B
Cost of Revenue$4.54B
Gross Profit$4.93B
SG&A Expenses$3.10B
Operating Income$1.83B
Interest Expense$170.40M
Net Income$1.07B
EPS (Basic)$32.16
EPS (Diluted)$31.57
Shares Outstanding (Basic)33.27M
Shares Outstanding (Diluted)33.88M

Key Highlights

  • 1Record net income of $1.07 billion for fiscal year 2014.
  • 2Total net sales increased by 3.6% to $9.475 billion.
  • 3Domestic comparable store net sales increased by 2.8%.
  • 4Continued store expansion, reaching 5,391 locations across the U.S., Mexico, and Brazil.
  • 5Commercial sales program expansion and refinement.
  • 6Focus on failure and maintenance categories, which represented 84% of sales.
  • 7Significant share repurchase program continued, with $1.099 billion in repurchases during fiscal year 2014.

Frequently Asked Questions

For the fiscal year ended August 30, 2014, AutoZone reported record net income of $1.07 billion, a 5.2% increase from the prior year. Net sales grew by 3.6% to $9.475 billion, driven by a 2.8% increase in domestic same-store sales and contributions from new stores and expanded commercial programs.

AutoZone is expanding through new store openings, with a total of 5,391 locations across the United States, Mexico, and Brazil by the end of fiscal year 2014. The company is also focusing on growing its commercial sales program, which provides parts and services to repair garages and dealers. Investments in its supply chain and distribution network, including hub stores, are also key to enhancing product availability and delivery efficiency.

AutoZone faces several risks, including potential slowdowns in demand for its products due to economic conditions (recessions, high unemployment, rising energy prices), intense competition from various players in the automotive parts market, the inability to sustain historical sales growth rates, and potential consolidation among competitors. Additionally, risks related to credit market conditions, cybersecurity, business interruptions, and the ability to attract and retain qualified employees are also significant.

AutoZone's primary source of liquidity is its operating cash flow. The company has a revolving credit facility of $1.25 billion to support commercial paper borrowings and other short-term needs. Capital requirements are largely met through internally generated funds and available borrowing capacity, with a significant portion dedicated to new store development, store enhancements, supply chain infrastructure, and stock repurchases. AutoZone also actively engages in share repurchase programs, having repurchased approximately $1.099 billion in fiscal year 2014.