Advance Auto Parts Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>Advance Auto Parts Inc. has filed its 2023 10-K annual report detailing its financial performance and operational status.</b>

AI Summary

ADVANCE AUTO PARTS INC (AAP) filed a Annual Report (10-K) with the SEC on March 12, 2024. Advance Auto Parts Inc. filed its 10-K report for the fiscal year ending December 30, 2023. The company operates within the Retail - Auto & Home Supply Stores sector. The filing covers the period from January 1, 2023, to December 30, 2023. Key financial data points and disclosures are included in this annual report. The report was filed on March 12, 2024.

Why It Matters

For investors and stakeholders tracking ADVANCE AUTO PARTS INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Advance Auto Parts' financial health, strategic initiatives, and risk factors for the fiscal year 2023, crucial for investors assessing the company's performance and future outlook. The detailed financial statements and disclosures within the report are essential for understanding the company's revenue, expenses, assets, liabilities, and cash flows, enabling informed investment decisions.

Risk Assessment

Risk Level: medium — ADVANCE AUTO PARTS INC shows moderate risk based on this filing. The company's 10-K filing indicates a need for detailed financial analysis, which could reveal underlying performance issues or strengths that impact its valuation and future prospects.

Analyst Insight

Investors should carefully review the financial statements and risk factors in the 10-K to understand Advance Auto Parts' current financial position and potential challenges.

Key Numbers

• 2023-12-30 — Fiscal Year End (Conformed period of report)
• 2024-03-12 — Filing Date (Filed as of date)
• 2023-01-01 — Fiscal Year Start (Reporting period start date)
• 2022-12-31 — Previous Fiscal Year End (Previous fiscal year end date)

Key Players & Entities

• ADVANCE AUTO PARTS INC (company) — Filer name
• 20231230 (date) — Conformed period of report
• 20240312 (date) — Filed as of date
• RALEIGH (location) — Business address city
• NC (location) — Business address state
• 0001158449 (company) — Central Index Key
• 5531 (industry) — Standard Industrial Classification
• DE (location) — State of incorporation

FAQ

Industry Context

Advance Auto Parts operates in the automotive aftermarket retail sector, providing parts, accessories, and services for vehicles.

Regulatory Implications

The filing is a 10-K, an annual report required by the U.S. Securities and Exchange Commission (SEC) for publicly traded companies.

What Investors Should Do

1. Review the detailed financial statements for revenue, net income, and other key performance indicators.
2. Analyze the Management's Discussion and Analysis (MD&A) section for insights into business trends and strategies.
3. Examine the Risk Factors section for potential challenges and uncertainties facing the company.

Key Dates

• 2023-12-30: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-12: Filing Date — Date the 10-K report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing of the 2023 10-K report, providing the latest annual financial and operational data for Advance Auto Parts Inc.

Key Financial Figures

• $0.0001 — ange on which registered Common Stock, $0.0001 par value AAP New York Stock Exchange

Filing Documents

• aap-20231230.htm (10-K) — 2418KB
• aap_exhibit108x12302023.htm (EX-10.8) — 31KB
• aap_exhibitx1024x12302023.htm (EX-10.24) — 4KB
• aap_exhibit1031x12302023.htm (EX-10.31) — 164KB
• aap_exhibit1039x12302023.htm (EX-10.39) — 2KB
• aap_exhibit211x12302023.htm (EX-21.1) — 18KB
• aap_exhibit221x12302023.htm (EX-22.1) — 16KB
• aap_exhibit231x12x30x2023.htm (EX-23.1) — 2KB
• aap_exhibit311x12302023.htm (EX-31.1) — 10KB
• aap_exhibit312x12302023.htm (EX-31.2) — 9KB
• aap_exhibit321x12302023.htm (EX-32.1) — 7KB
• aap-20231230_g1.jpg (GRAPHIC) — 191KB
• aap-20231230_g2.jpg (GRAPHIC) — 143KB
• image.jpg (GRAPHIC) — 132KB
• image1.jpg (GRAPHIC) — 71KB
• image2.jpg (GRAPHIC) — 141KB
• image3.jpg (GRAPHIC) — 146KB
• image4.jpg (GRAPHIC) — 139KB
• image5.jpg (GRAPHIC) — 137KB
• image6.jpg (GRAPHIC) — 144KB
• image7.jpg (GRAPHIC) — 149KB
• 0001158449-24-000048.txt (&nbsp;) — 13493KB
• aap-20231230.xsd (EX-101.SCH) — 52KB
• aap-20231230_cal.xml (EX-101.CAL) — 88KB
• aap-20231230_def.xml (EX-101.DEF) — 291KB
• aap-20231230_lab.xml (EX-101.LAB) — 779KB
• aap-20231230_pre.xml (EX-101.PRE) — 523KB
• aap-20231230_htm.xml (XML) — 1972KB

Business

Business 2 Item 1A.

Risk Factors

Risk Factors 7 Item 1B. Unresolved Staff Comments 15 Item 1C. C ybersecurity 15 Item 2.

Properties

Properties 16 Item 3.

Legal Proceedings

Legal Proceedings 16 Item 4. Mine Safety Disclosures 16 Part II. Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 17 Item 6. [Reserved] 19 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 19 Item 7A.

Quantitative and Qualitative Disclosures About Market Risks

Quantitative and Qualitative Disclosures About Market Risks 26 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 26 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 26 Item 9A.

Controls and Procedures

Controls and Procedures 26 Item 9B. Other Information 28 Item 9C . Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 28 Part III. Item 10. Directors, Executive Officers and Corporate Governance 29 Item 11.

Executive Compensation

Executive Compensation 29 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 29 Item 13. Certain Relationships and Related Transactions, and Director Independence 29 Item 14. Principal Accountant Fees and Services 29 Part IV. Item 15. Exhibits, Financial Statement Schedules 30 Item 16. Form 10-K Summary 79

Signatures

Signatures 80 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Certain statements herein are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are usually identifiable by words such as "anticipate," "believe," "could," "estimate," "expect," "forecast, "guidance," "intend," "likely," "may," "plan," "position," "possible," "potential," "probable," "project," "should," "strategy," "will," or similar language. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, statements about our strategic initiatives, including cost reduction initiatives, the potential sales of the Worldpac and Carquest Canada portions of our business, operational plans and objectives, expectations for economic conditions, future business and financial performance, as well as statements regarding underlying assumptions related thereto. Forward-looking statements reflect our views based on historical results, current information and assumptions related to future developments. Except as may be required by law, we undertake no obligation to update any forward-looking statements made herein. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements. They include, among others, factors related to the company's leadership transitions, our ability to complete the potential divestitures of Worldpac and Carquest Canada, our ability to hire, train and retain qualified employees, the timing and implementation of strategic initiatives, deterioration of general macroeconomic conditions, geopolitical conflicts, the highly competitive nature of our industry, demand for our products and services, access to financing on favorable terms, complexities in our inventory and supply chain and challenges with transforming and growing our business. Except as may be required b

Business

Item 1. Business. Unless the context otherwise requires, "Advance," "we," "us," "our," and similar terms refer to Advance Auto Parts, Inc., its subsidiaries and their respective operations on a consolidated basis. Our fiscal year consists of 52 or 53 weeks ending on the Saturday closest to December 31 st each year. Our previous three fiscal years ended on December 30, 2023 ("2023"), December 31, 2022 ("2022") and January 1, 2022 ("2021") and included fifty-two weeks of operations. Overview We are a leading automotive aftermarket parts provider in North America, serving both professional installers ("professional") and "do-it-yourself" ("DIY") customers, as well as independently owned operators. Our stores and branches offer a broad selection of brand names, original equipment manufacturer ("OEM") and owned brand automotive replacement parts, accessories, batteries and maintenance items for domestic and imported cars, vans, sport utility vehicles and light and heavy duty trucks. As of December 30, 2023, we operated 4,786 stores and 321 branches primarily under the trade names "Advance Auto Parts," "Carquest" and "Worldpac." We were founded in 1929 as Advance Stores Company, Incorporated, and operated as a retailer of general merchandise until the 1980s. During the 1980s, we began targeting the sale of automotive parts and accessories to DIY customers. We initiated our professional delivery program in 1996 and have served professional customers since 2000. We have grown significantly as a result of strategic acquisitions, new store openings and comparable store sales growth. Advance Auto Parts, Inc., a Delaware corporation, was incorporated in 2001 in conjunction with the acquisition of Discount Auto Parts, Inc. In 2014, we acquired General Parts International, Inc. ("GPI"), a privately-held company that was a leading distributor and supplier of original equipment and aftermarket automotive replacement products for professional markets operating under the Carq

Risk Factors

Item 1A. Risk Factors. You should consider carefully the risks and uncertainties described below together with the other information included in this Annual Report on Form 10-K, including without limitation our consolidated financial statements and related notes thereto and " Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies ". The occurrence of any of the following risks could materially adversely affect our business, financial condition, results of operations, cash flows and future prospects, which could in turn materially affect the price of our common stock. Risks Related to Our Operations and Strategy If we are unable to successfully implement our business strategy, our business, financial condition, results of operations and cash flows could be adversely affected. We have undertaken a strategic and operational review to improve the performance of our business and create long-term value. We are currently making and expect to continue to make significant investments to improve our business. If we are unable to implement our initiatives efficiently and effectively, our business, financial condition, results of operations and cash flows could be adversely affected. We could also be adversely affected if we have not appropriately prioritized and balanced our initiatives or if we are unable to effectively manage change throughout our organization. Implementing strategic initiatives could disrupt or reduce the efficiency of our operations and may not provide the anticipated benefits, or may provide them on a delayed schedule or at a higher cost. These risks increase when significant changes are undertaken and when multiple projects with interdependencies and shared human resources are pursued simultaneously. We are exposed to risks associated with our potential divestitures, which may impact our ability to fully realize the anticipated benefits of those transactions. We recently an

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View this 10-K filing on SEC EDGAR