Advance Auto Parts (NYSE: AAP), headquartered in Roanoke, Virginia,[3] is the second-largest retailer of automotive replacement parts and accessories in the United States. AAP was founded in 1932 and had 2008 sales of approx. $5.1B. AAP operates 3,540 stores in 40 US states and employs over 51,000 Team Members across all operations.
In 2005, Advance Auto Parts purchased Autopart International, Inc. which operates 202 stores along the Atlantic Seaboard.
Advance Auto Parts, Inc. , incorporated in 2001, is a specialty retailer of automotive aftermarket parts, accessories, batteries and maintenance items primarily operating within the United States. The Company’s stores carry a product line for cars, vans, sport utility vehicles and light trucks. It serves both do-it-yourself (DIY) and do-it-for-me Commercial, customers. It operates in two segments: Advance Auto Parts (AAP) and Autopart International, Inc. (AIP). The AAP segment consists of its operations within the Northeastern, Southeastern and Midwestern regions of the United States, Puerto Rico and the Virgin Islands. The AI segment primarily serves the Commercial market from its store locations in the Northeastern and Mid-Atlantic regions of the United States and Florida.
AAP Segment
At January 1, 2011, the Company operated 3,369 AAP stores within the United States, Puerto Rico and the Virgin Islands. It operated 3,343 AAP stores throughout 39 states in the Northeastern, Southeastern and Midwestern regions of the United States. These stores operated under the Advance Auto Parts trade name except for certain stores in the state of Florida, which operated under the Advance Discount Auto Parts trade name. These stores offer a range of brand name and private label automotive replacement parts, accessories, batteries and maintenance items for domestic and imported cars and light trucks. In addition, it operated 26 AAP stores under the Advance Auto Parts and Western Auto trade names, located in Puerto Rico and the Virgin Islands, or Offshore. It also provides customers online shopping at www.AdvanceAutoParts.com and access to over 100,000 stock keeping units (SKUs) of the same product carried in its stores, as well as other product offerings and services.
The Company’s stores carry a product offering of approximately 17,500 SKUs, generally consisting of a custom mix of product by store based on the respective market. Additionally, a majority of the stores carry an additional customized assortment of 12,000 SKUs for same-day or next-day delivery to other select stores within the respective service area. These stores are called HUB stores. The categories of products offered include Parts, including alternators, batteries, chassis parts, clutches, engines and engine parts, radiators, starters, transmissions and water pumps; Accessories, including floor mats, mirrors, vent shades, MP3 and cell phone accessories, and seat and steering wheel covers; Chemicals, including antifreeze, freon, fuel additives and car washes and waxes; Oil and other automotive petroleum products, and Other miscellaneous offerings. The services offered include Battery & wiper installation, Battery charging, Check engine light reading where allowed by law, Electrical system testing, including batteries, starters, alternators and sensor, How-To Video Clinics & Project Brochures, Oil and battery recycling, and Loaner tool program.
AI Segment
AI’s business primarily serves the Commercial market, with an emphasis on parts for imported cars, from its store locations located throughout the Northeastern and Mid-Atlantic regions of the United States and Florida. In addition, its North American Sales Division serves warehouse distributors and jobbers throughout North America. The AI stores offer approximately 24,000 SKUs with access to an additional 100,000 SKUs through its supply chain and local sourcing networks. At January 1, 2011, the Company operated 194 stores under the Autopart International trade name.
The Company competes with AutoZone, Inc., O'Reilly Automotive, Inc. and The Pep BoysManny, Moe & Jack.
The Advance balance sheet returned to the black in 2000, and by 2001 was again positioned to grow the chain through acquisition. In April of that year it bought Carport Auto Parts, a 51-store regional chain located in Alabama and Mississippi. A more important deal was struck in November 2001 when Advance acquired Discount Auto Parts, Inc., a southeastern chain operating 577 stores with some $660 million in annual revenues. Advance paid approximately $520 million in cash and stock and assumed debt of approximately $267 million in the transaction. As a result, Advance now owned more than 2,400 stores located in 38 states, a business capable of generating more than $3 billion in annual sales. Moreover, by buying Discount, Advance's holding company, Advance Holding Corp., became a public company, which began trading on the New York Stock Exchange in November 2001. Once again, however, Advance faced the challenge of assimilating a significant acquisition without losing momentum in a highly competitive industry. The transition proceeded smoothly enough so that by the summer of 2002 Advance was able to make yet another acquisition, albeit on a much smaller scale. It bought 55 stores of the Maryland-based Auto Trak Parts chain, which had lapsed into bankruptcy. By paying $16 million for inventory and fixtures and assuming existing leases, Advance was able to pick the bones of the chain, which numbered 196 stores a year earlier when the company filed Chapter 11 bankruptcy and had since dropped to just 78 stores. For a modest cost Advance increased its presence in the key market of Washington, D.C.
In November 2002 Sears announced that it planned to sell the 8.4 million shares it received in Advance for the Western Auto chain. A few weeks later a secondary offering was held in order to sell the Sears stake in the company, which now amounted to 24 percent, as well as to raise additional cash for Advance to be used to pay off some of the debt it had accumulated in its rapid ascent in the industry.
By the start of 2003 it appeared that Advance had successfully digested the Discount acquisition. The company closed 130 of the stores, which overlapped with Advance outlets. Of the ones that remained, 164 Discount stores were converted to the Advance Auto banner, while in Florida, where the Discount name retained a strong resonance with consumers, some 400 stores adopted the name Advance Discount Auto Parts. Also at the start of 2003, Advance launched a test program selling insurance at several stores, with the possibility of expanding the program if it proved to be successful after a six-month trial. Later in the spring, the company reached a significant milestone when it was announced that it made the Fortune 500 list, placing at number 466 with sales of $3.3 billion in 2002. (AutoZone in the meantime ranked 314 on the strength of $5.4 billion in sales.) It was a fitting sendoff for Nicholas Taubman and Garnett Smith, who had earlier in the year resigned from the company's board of directors after decades of devotion that built a small, obscure auto parts and household goods chain into the second largest auto parts retailer in the United States.
OVERALL
Beta: 0.49
Market Cap (Mil.): $5,237.78
Shares Outstanding (Mil.): 78.94
Annual Dividend: 0.24
Yield (%): 0.36
FINANCIALS
AAP Industry Sector
P/E (TTM): 16.84 4.33 14.13
EPS (TTM): 39.44 -- --
ROI: 22.23 3.66 1.20
ROE: 29.68 4.24 2.08
Key Dates:
1932: Arthur Taubman acquires a three-store chain to launch the business.
1969: Arthur Taubman retires and son Nicholas Taubman assumes control.
1978: Advance Stores changes its name to Advance Auto.
1985: Advance Auto focuses on auto parts exclusively, becoming Advance Auto Parts.
1998: The company is sold to Freeman Spogli & Co.
2001: Discount Auto Parts is acquired.
2003: Advance makes the Fortune 500 list.
Name Age Since Current Position
Brouillard, John 62 2008 Independent Chairman of the Board
Jackson, Darren 46 2009 Chief Executive Officer, Director
Wade, Jimmie 56 2009 President
Norona, Michael 47 2009 Chief Financial Officer, Executive Vice President, Assistant Secretary
Freeland, Kevin 53 2009 Chief Operating Officer
Johnson, Gregory 43 2010 Senior Vice President, Chief Marketing Officer, General Manager - DIY
Powell, Sarah 44 2009 Senior Vice President, General Counsel, Corporate Secretary
Livesay, Jill 42 2005 Senior Vice President, Controller
Tyson, Charles 48 2008 Senior Vice President - Merchandising
Carter, Bill 2011 Senior Vice President - Commercial
Kozikowski, Tamara 49 2009 Chief Development Officer
Spinelli, Francesca 56 2002 Independent Director
Ray, Gilbert 66 2002 Independent Director
Saladrigas, Carlos 62 2003 Independent Director
Oglesby, William 51 2004 Independent Director
Bergstrom, John 64 2008 Independent Director
Dias, Fiona 45 2009 Independent Director
Frei, Frances 47 2009 Independent Director
Raines, Julian 46 2010 Independent Director
Address:
5673 Airport Road
Roanoke, Virginia 24012
U.S.A.
In 2005, Advance Auto Parts purchased Autopart International, Inc. which operates 202 stores along the Atlantic Seaboard.
Advance Auto Parts, Inc. , incorporated in 2001, is a specialty retailer of automotive aftermarket parts, accessories, batteries and maintenance items primarily operating within the United States. The Company’s stores carry a product line for cars, vans, sport utility vehicles and light trucks. It serves both do-it-yourself (DIY) and do-it-for-me Commercial, customers. It operates in two segments: Advance Auto Parts (AAP) and Autopart International, Inc. (AIP). The AAP segment consists of its operations within the Northeastern, Southeastern and Midwestern regions of the United States, Puerto Rico and the Virgin Islands. The AI segment primarily serves the Commercial market from its store locations in the Northeastern and Mid-Atlantic regions of the United States and Florida.
AAP Segment
At January 1, 2011, the Company operated 3,369 AAP stores within the United States, Puerto Rico and the Virgin Islands. It operated 3,343 AAP stores throughout 39 states in the Northeastern, Southeastern and Midwestern regions of the United States. These stores operated under the Advance Auto Parts trade name except for certain stores in the state of Florida, which operated under the Advance Discount Auto Parts trade name. These stores offer a range of brand name and private label automotive replacement parts, accessories, batteries and maintenance items for domestic and imported cars and light trucks. In addition, it operated 26 AAP stores under the Advance Auto Parts and Western Auto trade names, located in Puerto Rico and the Virgin Islands, or Offshore. It also provides customers online shopping at www.AdvanceAutoParts.com and access to over 100,000 stock keeping units (SKUs) of the same product carried in its stores, as well as other product offerings and services.
The Company’s stores carry a product offering of approximately 17,500 SKUs, generally consisting of a custom mix of product by store based on the respective market. Additionally, a majority of the stores carry an additional customized assortment of 12,000 SKUs for same-day or next-day delivery to other select stores within the respective service area. These stores are called HUB stores. The categories of products offered include Parts, including alternators, batteries, chassis parts, clutches, engines and engine parts, radiators, starters, transmissions and water pumps; Accessories, including floor mats, mirrors, vent shades, MP3 and cell phone accessories, and seat and steering wheel covers; Chemicals, including antifreeze, freon, fuel additives and car washes and waxes; Oil and other automotive petroleum products, and Other miscellaneous offerings. The services offered include Battery & wiper installation, Battery charging, Check engine light reading where allowed by law, Electrical system testing, including batteries, starters, alternators and sensor, How-To Video Clinics & Project Brochures, Oil and battery recycling, and Loaner tool program.
AI Segment
AI’s business primarily serves the Commercial market, with an emphasis on parts for imported cars, from its store locations located throughout the Northeastern and Mid-Atlantic regions of the United States and Florida. In addition, its North American Sales Division serves warehouse distributors and jobbers throughout North America. The AI stores offer approximately 24,000 SKUs with access to an additional 100,000 SKUs through its supply chain and local sourcing networks. At January 1, 2011, the Company operated 194 stores under the Autopart International trade name.
The Company competes with AutoZone, Inc., O'Reilly Automotive, Inc. and The Pep BoysManny, Moe & Jack.
The Advance balance sheet returned to the black in 2000, and by 2001 was again positioned to grow the chain through acquisition. In April of that year it bought Carport Auto Parts, a 51-store regional chain located in Alabama and Mississippi. A more important deal was struck in November 2001 when Advance acquired Discount Auto Parts, Inc., a southeastern chain operating 577 stores with some $660 million in annual revenues. Advance paid approximately $520 million in cash and stock and assumed debt of approximately $267 million in the transaction. As a result, Advance now owned more than 2,400 stores located in 38 states, a business capable of generating more than $3 billion in annual sales. Moreover, by buying Discount, Advance's holding company, Advance Holding Corp., became a public company, which began trading on the New York Stock Exchange in November 2001. Once again, however, Advance faced the challenge of assimilating a significant acquisition without losing momentum in a highly competitive industry. The transition proceeded smoothly enough so that by the summer of 2002 Advance was able to make yet another acquisition, albeit on a much smaller scale. It bought 55 stores of the Maryland-based Auto Trak Parts chain, which had lapsed into bankruptcy. By paying $16 million for inventory and fixtures and assuming existing leases, Advance was able to pick the bones of the chain, which numbered 196 stores a year earlier when the company filed Chapter 11 bankruptcy and had since dropped to just 78 stores. For a modest cost Advance increased its presence in the key market of Washington, D.C.
In November 2002 Sears announced that it planned to sell the 8.4 million shares it received in Advance for the Western Auto chain. A few weeks later a secondary offering was held in order to sell the Sears stake in the company, which now amounted to 24 percent, as well as to raise additional cash for Advance to be used to pay off some of the debt it had accumulated in its rapid ascent in the industry.
By the start of 2003 it appeared that Advance had successfully digested the Discount acquisition. The company closed 130 of the stores, which overlapped with Advance outlets. Of the ones that remained, 164 Discount stores were converted to the Advance Auto banner, while in Florida, where the Discount name retained a strong resonance with consumers, some 400 stores adopted the name Advance Discount Auto Parts. Also at the start of 2003, Advance launched a test program selling insurance at several stores, with the possibility of expanding the program if it proved to be successful after a six-month trial. Later in the spring, the company reached a significant milestone when it was announced that it made the Fortune 500 list, placing at number 466 with sales of $3.3 billion in 2002. (AutoZone in the meantime ranked 314 on the strength of $5.4 billion in sales.) It was a fitting sendoff for Nicholas Taubman and Garnett Smith, who had earlier in the year resigned from the company's board of directors after decades of devotion that built a small, obscure auto parts and household goods chain into the second largest auto parts retailer in the United States.
OVERALL
Beta: 0.49
Market Cap (Mil.): $5,237.78
Shares Outstanding (Mil.): 78.94
Annual Dividend: 0.24
Yield (%): 0.36
FINANCIALS
AAP Industry Sector
P/E (TTM): 16.84 4.33 14.13
EPS (TTM): 39.44 -- --
ROI: 22.23 3.66 1.20
ROE: 29.68 4.24 2.08
Key Dates:
1932: Arthur Taubman acquires a three-store chain to launch the business.
1969: Arthur Taubman retires and son Nicholas Taubman assumes control.
1978: Advance Stores changes its name to Advance Auto.
1985: Advance Auto focuses on auto parts exclusively, becoming Advance Auto Parts.
1998: The company is sold to Freeman Spogli & Co.
2001: Discount Auto Parts is acquired.
2003: Advance makes the Fortune 500 list.
Name Age Since Current Position
Brouillard, John 62 2008 Independent Chairman of the Board
Jackson, Darren 46 2009 Chief Executive Officer, Director
Wade, Jimmie 56 2009 President
Norona, Michael 47 2009 Chief Financial Officer, Executive Vice President, Assistant Secretary
Freeland, Kevin 53 2009 Chief Operating Officer
Johnson, Gregory 43 2010 Senior Vice President, Chief Marketing Officer, General Manager - DIY
Powell, Sarah 44 2009 Senior Vice President, General Counsel, Corporate Secretary
Livesay, Jill 42 2005 Senior Vice President, Controller
Tyson, Charles 48 2008 Senior Vice President - Merchandising
Carter, Bill 2011 Senior Vice President - Commercial
Kozikowski, Tamara 49 2009 Chief Development Officer
Spinelli, Francesca 56 2002 Independent Director
Ray, Gilbert 66 2002 Independent Director
Saladrigas, Carlos 62 2003 Independent Director
Oglesby, William 51 2004 Independent Director
Bergstrom, John 64 2008 Independent Director
Dias, Fiona 45 2009 Independent Director
Frei, Frances 47 2009 Independent Director
Raines, Julian 46 2010 Independent Director
Address:
5673 Airport Road
Roanoke, Virginia 24012
U.S.A.