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AutoZone Inc AZO
Q2 2012 Earnings Call Transcript

Transcript Call Date 02/28/2012

Operator: Good morning, and welcome to the AutoZone Conference Call. Your lines have been placed on listen-only until the question-and-answer session of the conference. Please be advised that today's call is being recorded. If you have any objections, please disconnect at this time.

This conference call will discuss AutoZone's second quarter financial results. Bill Rhodes, the Company's Chairman, President and CEO will be making a short presentation on the highlights of the quarter. This conference call will end promptly at 10.00 am Central Time, 11.00 am Eastern Time.

Before Mr. Rhodes begins, the Company has requested that you listen to the following statements regarding forward-looking statements.

Certain statements contained in this press release are forward-looking statements. Forward-looking statements typically use words such as believe, anticipate, should, intend, plan, will, expect, estimate, project, positioned, strategy, and similar expressions. These are based on assumptions and assessments made by our management in light of experience and perception of historical trends, current conditions, expected future developments and other factors that we believe to be appropriate.

These forward-looking statements are subject to a number of risks and uncertainties, including without limitation, credit market conditions, the impact of recessionary conditions, competition, product demand; the ability to hire and retain qualified employees; consumer debt levels; inflation; weather; raw material costs of our suppliers; energy prices; war and the prospects of war, including terrorist activity; availability of consumer transportation; construction delays; access to available and feasible financing; and changes in laws or regulations.

Certain of these risks are discussed in more detail in the Risk Factors section contained in Item 1A under Part 1 of our Annual Report on Form 10-K for the year ended August 27, 2011, and these risk factors should be read carefully.

Mr. Rhodes, you may begin.

William C. Rhodes, III - Chairman, President and CEO: Good morning and thank you for joining us today for AutoZone's fiscal 2012 second quarter conference call. With me today are Bill Giles, Executive Vice President and Chief Financial Officer, Store Development and IT; and Brian Campbell, Vice President, Treasurer, Investor Relations and Tax.

Regarding the second quarter, I hope you've had an opportunity to read our press release and learn about the quarter's results. If not, the press release along with slides complementing our comments today is available on our website, www.autozoneinc.com. Please click on Quarterly Earnings Conference Calls to see them.

We are pleased to announce another quarter of strong financial and operational performance. For the second fiscal quarter, our earnings per share increased 24.4% and our domestic same-store sales increased 5.9%. This marks the 13th consecutive quarter of EPS growth in excess of 20%, and the 22nd consecutive quarter of double digit EPS growth.

Our sales and operating profit growth rates were in line with the last couple of quarters driven by our continued growth in the retail sales category, strong performance in our Commercial business, and impressive growth in our Mexico, ALLDATA, and e-Commerce businesses. Over the course of the last few years, we've grown total sales in the auto parts segment in the high single-digit range, while growing our other businesses in the low double-digit range.

Read our Earnings Call Transcript disclaimer.
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