Advance Auto Parts, Inc., a leading automotive aftermarket parts provider in North America that serves both professional installer and do-it-yourself customers, announced that on April 19, 2021, its Board of Directors approved an additional share repurchase authorization of $1 billion, bringing the total available repurchase authorization to approximately $1.3 billion.
In addition, the Board of Directors declared a quarterly cash dividend of $1.00 per share, an increase from $0.25. This dividend is payable July 2, 2021, to shareholders of record as of June 18, 2021.
All figures in USD.
“In recognition of our 2020 results, strong financial position and confidence in our ability to deliver additional top- and bottom-line growth this year, the Board has voted to significantly increase the quarterly dividend,” said Tom Greco, president and chief executive officer.
“Across Advance, we remain focused on our financial priorities of maintaining an investment grade rating, investing in the business and returning cash to shareholders. This increase in the quarterly cash dividend combined with the additional share repurchase authorization announced today reflects our commitment to a balanced approach to returning cash to shareholders.”
Full Year 2021 Guidance
Greco continued “Further, as we highlighted earlier this morning, we estimate comparable store sales growth of 22% to 24% for the first quarter, including strength across both DIY omnichannel and professional.
“As a result of robust first quarter estimates along with our previously announced expansion in California, we are updating our full year guidance. Our team members and independent partners continue to care for our customers while executing on our long-term strategic initiatives.
“We are confident in our ability to deliver additional progress throughout the balance of the year.”
| Full Year 2021 Guidance | ||||
| Original February 2021 | Updated April 2021 | |||
| ($US in millions) | Low | High | Low | High |
| Net sales | $10,100 | $10,300 | $10,200 | $ 10,400 |
| Comparable store sales1 | 1.0% | 3.0% | 2.0% | 4.0% |
| Adjusted operating income margin1 | 8.7% | 8.9% | 8.9% | 9.1% |
| Income tax rate | 24% | 26% | 24% | 26% |
| Capital expenditures | $275 | $300 | $300 | $ 350 |
| Free cash flow1 | Minimum $600 | Minimum $575 | ||
| New store openings | 50 | 100 | 100 | 150 |
1 For a better understanding of the company’s adjusted results and comparable store sales, please refer to the company’s press release issued February 16, 2021 and Annual Report on Form 10-K filed on February 22, 2021. Because of the forward-looking nature of the 2021 non-GAAP financial measures, specific quantification of the amounts that would be required to reconcile these non-GAAP financial measures to their most directly comparable GAAP financial measures are not available at this time.
About Advance Auto Parts
Advance Auto Parts, Inc. is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers.
As of January 2, 2021, Advance operated 4,806 stores and 170 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands.
The company also serves 1,277 independently owned Carquest branded stores across these locations in addition to Mexico, Grand Cayman, the Bahamas, Turks and Caicos and British Virgin Islands.
Additional information about Advance, including employment opportunities, customer services, and online shopping for parts, accessories and other offerings can be found at www.AdvanceAutoParts.com.
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