http://www.morningstar.com/earnings/52467737-advance-auto-parts-inc-aap-q1-2013.aspx

Advance Auto Parts Inc AAP
Q1 2013 Earnings Call Transcript

Transcript Call Date 05/23/2013

Operator: Good morning, and thank you for joining us on today's call. I'd like to remind you today that our comments contain forward-looking statements, we intend to be covered by and we claim the protection under the Safe Harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements address future events, developments or results and typically use words such as believe, anticipate, expect, intend, will, plan, forecast, outlook or estimate, and are subject to risks, uncertainties and assumptions that may cause the results to differ materially, including competitive pressures, demand for the Company's products, the economy in general, consumer debt levels, dependence on foreign suppliers, the weather, business interruptions, and other factors disclosed in the Company's 10-K for fiscal year ended December 29, 2012, on file with the Securities and Exchange Commission. The Company intends these forward-looking statements to speak only as of the time of this conference call and does not undertake to update or revise them as more information becomes available.

The reconciliation of any non-GAAP financial measures mentioned on the call with the corresponding GAAP measures are described in our earnings release and our SEC filings, which can be found on our website at advanceautoparts.com. For planning purposes, our second quarter 2013 earnings release is scheduled for August 8th before market opens, and our quarterly conference call is scheduled for the morning of Thursday, August 8, 2013. To be notified of the date of future's earnings reports, you can sign up through the Investor Relations section of our website. Finally, a replay of this call will be available on our website for one year.

Now let me turn the call over to Darren Jackson, our Chief Executive Officer. Darren?

Darren Jackson - CEO: Thank you, Joshua. Good morning, everyone. Welcome to our first quarter conference call. To our 54,000 team members, thank you for your hard work and focus on our everyday fundamentals in order to better serve our customers and grow our business. Also I want to take a moment to welcome George Sherman, our new President and congratulate Charles Tyson, on his recent promotion to EVP in charge of Merchandising, Marketing and Supply Chain. Both George and Charles are with me today and will be available to answer questions during the Q&A portion of this call.

Turning to our business, we highlighted during the fourth quarter conference call that our start to the fiscal year would be challenging and demand would continue to be weak for the first quarter. We are not surprised nor are we satisfied with the sales and bottom line results. We continue to experience the temporal impacts to our industry with respect to the unseasonably warm weather in early 2012 that deferred maintenance expenditures and impacted failure rates in vehicles, especially in our cold-weather markets.

We expected tougher sales comparisons and the short-term impacts of consumers both considering and increasing big ticket spending, including new car sales to factor into our results. Yet, we did not fully anticipate certain impacts to our core customer, including the payroll tax increases, the delayed income tax refunds, coupled with a very slow start to the spring selling season. Collectively, these factors contributed to a much softer than anticipated comparable store sales performance, which declined 3.2%.

Read our Earnings Call Transcript disclaimer.
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