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LKQ Subsidiary Keystone Automotive Operations Named 2024 Channel Partner of the Year by Specialty Equipment Market Association
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By Advance Auto Parts
Announces Asset Optimization Program Targeting Reduction of 500 Corporate Stores, 200 Independently Owned Locations and Four Distribution Centers by Mid-2025 Introduces New Fiscal 2027 Financial Objectives Targeting Approximately 7% Adjusted Operating Income Margin (1) and Approximately 2.5x Debt Leverage Ratio; Provides Preliminary 2025 Guidance Identifies Over 500-basis points of Operating Margin Expansion Opportunity Through Fiscal 2027 With Focus on Core Retail Fundamental Excellence RALEIGH, N.C.--(BUSINESS WIRE)-- Advance Auto Parts, Inc. (NYSE: AAP), a leading automotive aftermarket parts provider in North America that serves both professional installer and do-it-yourself customers, announced its financial results for the third quarter ended October 5, 2024.
"We are pleased to have made progress on our strategic actions, including the completion of the sale of Worldpac and a comprehensive operational productivity review of our business,” said Shane O’Kelly, president and chief executive officer. “We are charting a clear path forward and introducing a new three-year financial plan, with a focus on executing core retail fundamentals to improve the productivity of all our assets and to create shareholder value."
On November 1, 2024, the company completed its previously announced sale of Worldpac for aggregate cash consideration of approximately $1.5 billion, as adjusted for working capital and other items. Unless otherwise specified, results are presented on a continuing operations basis.
Third Quarter 2024 Results (1,2,3,4)
Third quarter 2024 net sales from continuing operations totaled $2.1 billion, compared with $2.2 billion in the third quarter of the prior year. Comparable store sales decreased 2.3%.
The company's gross profit increased 11.0% to $907.9 million, or 42.3% of net sales compared with 36.9% in the third quarter of the prior year. The leverage improvement was primarily due to lapping the one-time impact in the change for inventory reserves in the prior year as well as stabilizing product costs offset by strategic pricing investments.
The company's SG&A expenses were $907.5 million, or 42.2% of net sales. Adjusted SG&A expenses were $891.2 million, or 41.5% of net sales compared with 40.2% in the third quarter of 2023, primarily due to lower sales. The company also incurred high labor-related expenses due to wage investments in frontline team members that were partially offset by a reduction in marketing expenses.
The company's operating income was $403.0 thousand, or zero percent of net sales. Adjusted operating income was $16.7 million, or 0.8% of net sales compared with (3.3)% in the third quarter of 2023. In addition, our operating income margin was negatively impacted by approximately 125 basis points of atypical items and headwinds in the period (such as lost revenue from Hurricane Helene and downtime from the CrowdStrike outage) that are not included in non-GAAP adjustments.
The company's effective tax rate was (58.4)%, compared with 24.5% in the third quarter of 2023. The company's diluted loss per share for the quarter was $0.42. The company's adjusted diluted loss per share was $0.04 compared with a loss per share of $1.19 in the third quarter of 2023. The types of unusual headwinds in the quarter noted above, which are not included in the non-GAAP adjustments, negatively impacted the company's earnings per share by 34 cents.
Net cash provided by operating activities was $81.0 million through the third quarter of 2024 versus $28.3 million of cash used in operating activities in the same period of the prior year. Free cash flow through the third quarter of 2024 was an outflow of $48.7 million compared with an outflow of $202.5 million in the same period of the prior year.
(1)
Adjusted Operating Income Margin is a non-GAAP measure. For a better understanding of the company’s non-GAAP adjustments, refer to the reconciliation of non-GAAP financial measures in the accompanying financial tables.
(2)
All comparisons are based on continuing operations for the same time period in the prior year, unless otherwise specified. The company calculates comparable store sales based on the change in store or branch sales starting once a location has been open for approximately one year and by including e-commerce sales and excluding sales fulfilled by distribution centers to independently owned Carquest locations. Acquired stores are included in the company's comparable store sales one year after acquisition. The company includes sales from relocated stores in comparable store sales from the original date of opening.
(3)
As reported in the company’s fourth quarter and full year 2023 earnings release, the company corrected non-material errors in certain previously reported financials. All comparisons are based on the corrected historical results as presented in the company’s prior earnings release dated February 28, 2024.
(4)
On August 22, 2024, the company entered into a definitive purchase agreement to sell its Worldpac Inc. business (“Worldpac”), which reflects a strategic shift in its business. The sale was completed on November 1, 2024. As a result, the company has classified the results of operations and cash flows of Worldpac as discontinued operations in its condensed consolidated statements of operations and condensed consolidated statements of cash flows for all periods presented. The related assets and liabilities associated with the discontinued operations are classified as held for sale in the condensed consolidated balance sheets.
Capital Allocation
On October 29, 2024, the company declared a regular cash dividend of $0.25 per share to be paid on January 24, 2025, to all common stockholders of record as of January 10, 2025.
Full Year 2024 Guidance
For the balance of 2024, the company is providing guidance that includes expectations for continuing operations as well as adjusted metrics that take into account non-GAAP adjustments.
As of November 14, 2024
($ in millions, except per share data)
Low
High
Net sales from continuing operations
Approx. $9,000
Comparable store sales (1)
Approx. (1.0%)
Adjusted operating income margin from continuing operations
0.25
%
0.75
%
Adjusted diluted EPS from continuing operations
$
(0.60
)
$
0.00
Capital expenditures
$
175
$
225
Free cash flow (2)
Approx. flat (including strategic costs)
(1)
The company calculates comparable store sales based on the change in store or branch sales starting once a location has been open for approximately one year and by including e-commerce sales and excluding sales fulfilled by distribution centers to independently owned Carquest locations. Acquired stores are included in the company's comparable store sales one year after acquisition. The company includes sales from relocated stores in comparable store sales from the original date of opening.
(2)
Adjusted operating income margin from continuing operations, Adjusted diluted EPS from continuing operations and Free cash flow are non-GAAP measures. For a better understanding of the company's non-GAAP adjustments, refer to the reconciliation of non-GAAP financial measures in the accompanying financial tables. The company is not able to provide a reconciliation of these forward-looking non-GAAP measures because it is unable to predict with reasonable accuracy the value of certain adjustments and as a result, the comparable GAAP measures are unavailable without unreasonable efforts.
Strategic Priorities and Financial Objectives
Strategic Priorities
The company is executing a strategic plan to improve business performance with a focus on core retail improvements. The company has identified opportunities that it believes can improve adjusted operating income margin by more than 500-basis points through fiscal 2027. This strategic plan is anchored on three pillars outlined below to put the company on the path to deliver consistent profitable growth.
Store operations Reduction in U.S. asset footprint - closing 523 Advance corporate stores, exiting 204 independent locations, and closing four distribution centers. Standardization of store operating model and improving labor productivity. Acceleration in pace of new store openings. Merchandising excellence Strategic sourcing to improve first costs and bring parts to market faster. Assortment management to enhance availability of parts. Pricing and promotions management to improve gross margin. Supply chain Consolidation of distribution centers to operate 13 large facilities by 2026. Opening of 60 market hub locations by mid-2027. Optimization of transportation routes and freight to lower costs and improve productivity. Financial Objectives (Advance Auto Parts continuing operations)
The company is introducing new fiscal 2027 financial objectives and providing preliminary fiscal 2025 guidance.
Preliminary FY 2025 Guidance (53 weeks)
FY 2027 Objectives
Net sales ($ in millions)
$8,400 - $8,600
Approx. $9,000
Comparable sales growth
0.50% - 1.50%
Positive low-single-digit %
New store growth
30 new stores
50 to 70 new stores
Adjusted operating income margin (1)
2.00% - 3.00%
Approx. 7.00%
Leverage Ratio (Adj. debt/ Adj. EBITDAR) (1)
3.0x – 4.0x
Approx. 2.5x
(1)
Adjusted operating income margin is based on performance of Advance continuing operations and excludes intercompany margins related to Worldpac. Adjusted operating income margin from continuing operations and Adjusted Debt to Adjusted EBITDAR ratio (“leverage ratio”) are non-GAAP measures. For a better understanding of the company’s non-GAAP adjustments, refer to the reconciliation of non-GAAP financial measures in the accompanying financial tables. The company is not able to provide a reconciliation of these forward-looking non-GAAP measures because it is unable to predict with reasonable accuracy the value of certain adjustments and as a result, the comparable GAAP measures are unavailable without unreasonable efforts.
Investor Conference Call
The company will detail its results for the third quarter ended October 5, 2024, via a webcast scheduled to begin at 8 a.m. Eastern Time on Thursday, November 14, 2024. The webcast will be accessible via the Investor Relations page of the company's website (
link hidden, please login to view). To join by phone, please pre-register online for dial-in and passcode information. Upon registering, participants will receive a confirmation with call details and a registrant ID. While registration is open through the live call, the company suggests registering a day in advance or at minimum 10 minutes before the start of the call. A replay of the conference call will be available on the company's Investor Relations website for one year.
About Advance Auto Parts
Advance Auto Parts, Inc. is a leading automotive aftermarket parts provider that serves both professional installers and do-it-yourself customers. As of October 5, 2024, Advance operated 4,781 stores primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. The company also served 1,125 independently owned Carquest branded stores across these locations in addition to Mexico and various Caribbean islands. Additional information about Advance, including employment opportunities, customer services and online shopping for parts, accessories and other offerings can be found at
link hidden, please login to view. 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,” “target,” “will,” or similar language. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, statements about the company’s strategic initiatives, restructuring and asset optimization plans, financial objectives, operational plans and objectives, statements about the sale of the company’s Worldpac business, including statements regarding the benefits of the sale and use of proceeds therefrom, statements regarding expectations for economic conditions, future business and financial performance, as well as statements regarding underlying assumptions related thereto. Forward-looking statements reflect the company’s views based on historical results, current information and assumptions related to future developments. Except as may be required by law, the company undertakes 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, the company’s ability to hire, train and retain qualified employees, the timing and implementation of strategic initiatives, risks associated with the company’s restructuring and asset optimization plans, deterioration of general macroeconomic conditions, geopolitical factors, the highly competitive nature of the industry, demand for the company’s products and services, ongoing risks associated with the disposition of Worldpac, the company’s ability to maintain credit ratings, risks relating to the impairment of assets, including intangible assets such as goodwill, access to financing on favorable terms, complexities in the company’s inventory and supply chain and challenges with transforming and growing its business. Please refer to “Item 1A. Risk Factors” of the company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), as updated by the company’s subsequent filings with the SEC, for a description of these and other risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements.
Advance Auto Parts, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands) (unaudited)
October 5, 2024
December 30, 2023
Assets
Current assets:
Cash and cash equivalents
$
464,492
$
488,049
Receivables, net
668,937
609,528
Inventories, net
4,042,200
3,893,569
Other current assets
180,448
180,402
Current assets held for sale
2,137,690
1,205,473
Total current assets
7,493,767
6,377,021
Property and equipment, net
1,479,738
1,555,985
Operating lease right-of-use assets
2,399,630
2,347,073
Goodwill
600,182
601,159
Other intangible assets, net
409,501
419,161
Other noncurrent assets
85,366
85,988
Noncurrent assets held for sale
—
889,939
Total assets
$
12,468,184
$
12,276,326
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
3,498,460
$
3,526,079
Accrued expenses
641,914
616,067
Other current liabilities
458,343
396,408
Current liabilities held for sale
994,824
768,851
Total current liabilities
5,593,541
5,307,405
Long-term debt
1,788,513
1,786,361
Noncurrent operating lease liabilities
2,018,383
2,039,908
Deferred income taxes
380,118
355,635
Other long-term liabilities
89,949
83,538
Noncurrent liabilities held for sale
—
183,751
Total stockholders' equity
2,597,680
2,519,728
Total liabilities and stockholders’ equity
$
12,468,184
$
12,276,326
Advance Auto Parts, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data) (unaudited)
Twelve Weeks Ended
Forty Weeks Ended
October 5, 2024
October 7, 2023 (1)
October 5, 2024
October 7, 2023 (1)
Net sales
$
2,147,991
$
2,218,205
$
7,098,302
$
7,194,670
Cost of sales, including purchasing and warehousing costs
1,240,093
1,400,638
4,036,898
4,154,190
Gross profit
907,898
817,567
3,061,404
3,040,480
Selling, general and administrative expenses
907,495
896,145
2,954,707
2,959,238
Operating income (loss)
403
(78,578
)
106,697
81,242
Other, net:
Interest expense
(18,805
)
(19,375
)
(62,127
)
(69,948
)
Other income (expense), net
2,393
(305
)
12,769
232
Total other, net
(16,412
)
(19,680
)
(49,358
)
(69,716
)
(Loss) income before provision for income taxes
(16,009
)
(98,258
)
57,339
11,526
Provision for income taxes
9,354
(24,072
)
34,763
6,360
Net (loss) income from continuing operations
(25,363
)
(74,186
)
22,576
5,166
Net income from discontinued operations
19,349
12,149
56,413
59,696
Net (loss) income
$
(6,014
)
$
(62,037
)
$
78,989
$
64,862
Basic (loss) earnings per common share from continuing operations
$
(0.42
)
$
(1.25
)
$
0.38
$
0.09
Basic earnings per common share from discontinued operations
0.32
0.20
0.95
1.00
Basic (loss) earnings per common share
$
(0.10
)
$
(1.05
)
$
1.33
$
1.09
Basic weighted-average common shares outstanding
59,684
59,474
59,618
59,411
Diluted (loss) earnings per common share from continuing operations
$
(0.42
)
$
(1.24
)
$
0.38
$
0.09
Diluted earnings per common share from discontinued operations
0.32
0.20
0.94
1.00
Diluted (loss) earnings per common share
$
(0.10
)
$
(1.04
)
$
1.32
$
1.09
Diluted weighted-average common shares outstanding
59,902
59,630
59,878
59,588
(1)
The condensed consolidated statement of operations for the twelve and forty weeks ended October 7, 2023, reflects the correction of non-material errors the company discovered in previously reported results.
Advance Auto Parts, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands) (unaudited)
Forty Weeks Ended
October 5, 2024
October 7, 2023
Cash flows from operating activities:
Net income
$
78,989
$
64,862
Net income from discontinued operations
56,413
59,696
Net income from continuing operations
22,576
5,166
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization
217,197
206,658
Share-based compensation
33,810
33,777
(Gain) Loss on sale and impairment of long-lived assets
(14,273
)
1,886
Provision for deferred income taxes
24,289
(27,811
)
Other, net
2,986
2,436
Net change in:
Receivables, net
(60,383
)
(161,629
)
Inventories, net
(152,229
)
(110,871
)
Accounts payable
(25,225
)
(77,336
)
Accrued expenses
30,794
171,117
Other assets and liabilities, net
1,477
(71,707
)
Net cash provided by (used in) operating activities from continuing operations
81,019
(28,314
)
Net cash provided by operating activities from discontinued operations
76,917
57,148
Net cash provided by operating activities
157,936
28,834
Cash flows from investing activities:
Purchases of property and equipment
(129,714
)
(174,186
)
Proceeds from sales of property and equipment
13,232
2,001
Net cash used in investing activities of continuing operations
(116,482
)
(172,185
)
Net cash used in investing activities of discontinued operations
(7,988
)
(13,015
)
Net cash used in investing activities
(124,470
)
(185,200
)
Cash flows from financing activities:
Borrowings under credit facilities
—
4,805,000
Payments on credit facilities
—
(4,990,000
)
Borrowings on senior unsecured notes
—
599,571
Dividends paid
(44,882
)
(194,322
)
Purchases of noncontrolling interests
(9,101
)
—
Proceeds from the issuance of common stock
2,995
3,045
Repurchases of common stock
(5,601
)
(14,237
)
Other, net
(1,143
)
(5,010
)
Net cash (used in) provided by financing activities
(57,732
)
204,047
Forty Weeks Ended
October 5, 2024
October 7, 2023
Effect of exchange rate changes on cash
11,766
(1,932
)
Net (decrease) increase in cash and cash equivalents
(12,500
)
45,749
Cash and cash equivalents, beginning of period
503,471
270,805
Cash and cash equivalents, end of period
$
490,971
$
316,554
Summary of cash and cash equivalents:
Cash and cash equivalents of continuing operations, end of period
$
464,492
$
308,804
Cash and cash equivalents of discontinued operations, end of period
26,479
7,750
Cash and cash equivalents , end of period
$
490,971
$
316,554
(1)
The condensed consolidated statement of cash flows for the forty weeks ended October 7, 2023, reflects the correction of non-material errors the company discovered in previously reported results.
Restatement of Previously Issued Financial Statements
During the fiscal year ended December 30, 2023, the company identified errors primarily impacting cost of sales, selling, general and administrative costs and other income/expenses, net, incurred in prior years but not previously recognized. The company evaluated the errors and determined that the related impacts were not material to the previously issued consolidated financial statements for any prior period. A summary of the corrections to the impacted financial statement line items in the company's Condensed Consolidated Statement of Operations for the twelve and forty weeks ended October 7, 2023, and the company's Condensed Consolidated Statement of Cash Flows for the forty weeks ended October 7, 2023, included in the company's previously filed Annual Report on Form 10-K are presented below:
Condensed Consolidated Statement of Operations
October 7, 2023
Twelve Weeks Ended
(in thousands)
As Previously Reported
Adjustments
As Corrected
Discontinued Operations
As Corrected, after Discontinued Operations
Cost of sales
$
1,732,420
$
16,379
$
1,748,799
$
348,161
$
1,400,638
Gross profit
986,659
(16,379
)
970,280
152,713
817,567
Selling, general and administrative expenses
1,030,355
878
1,031,233
135,088
896,145
Operating (loss) income
(43,696
)
(17,257
)
(60,953
)
17,625
(78,578
)
(Loss) Income before provision for income taxes
(64,319
)
(17,257
)
(81,576
)
16,682
(98,258
)
Provision for income taxes
(15,686
)
(3,853
)
(19,539
)
4,533
(24,072
)
Net (loss) income
$
(48,633
)
$
(13,404
)
$
(62,037
)
$
12,149
$
(74,186
)
Basic (loss) earnings per share
$
(0.82
)
$
(0.23
)
$
(1.05
)
$
0.20
$
(1.25
)
Diluted (loss) earnings per common share
$
(0.82
)
$
(0.22
)
$
(1.04
)
$
0.20
$
(1.24
)
Condensed Consolidated Statement of Operations
October 7, 2023
Forty Weeks Ended
(in thousands)
As Previously Reported
Adjustments
As Corrected
Discontinued Operations
As Corrected, after Discontinued Operations
Cost of sales
$
5,220,200
$
29,877
$
5,250,077
$
1,095,887
$
4,154,190
Gross profit
3,602,538
(29,877
)
3,572,661
532,181
3,040,480
Selling, general and administrative expenses
3,407,445
2,272
3,409,717
450,479
2,959,238
Operating income (loss)
195,093
(32,149
)
162,944
81,702
81,242
Income (loss) before provision for income taxes
124,894
(32,149
)
92,745
81,219
11,526
Provision for income taxes
34,649
(6,766
)
27,883
21,523
6,360
Net income (loss)
$
90,245
$
(25,383
)
$
64,862
$
59,696
$
5,166
Basic earnings (loss) per share
$
1.52
$
(0.43
)
$
1.09
$
1.00
$
0.09
Diluted earnings (loss) per common share
$
1.51
$
(0.42
)
$
1.09
$
1.00
$
0.09
Condensed Consolidated Statement of Cash Flows
Forty Weeks Ended October 7, 2023
(in thousands)
As Previously Reported
Adjustments
As Corrected
Discontinued Operations
As Corrected, after Discontinued Operations
Net income
$
90,245
$
(25,383
)
$
64,862
$
59,696
$
5,166
Provision for deferred income taxes
(33,059
)
5,248
(27,811
)
—
(27,811
)
Other, net
1,499
937
2,436
—
2,436
Net change in:
Receivables, net
(170,371
)
(9,519
)
(179,890
)
(18,261
)
(161,629
)
Inventories, net
(41,025
)
15,442
(25,583
)
85,288
(110,871
)
Accounts payable
(191,871
)
28,500
(163,371
)
(86,035
)
(77,336
)
Accrued expenses
145,704
21,521
167,225
(3,892
)
171,117
Other assets and liabilities, net
(45,015
)
(38,316
)
(83,331
)
(11,624
)
(71,707
)
Net cash provided by (used in) operating activities
30,404
(1,570
)
28,834
57,148
(28,314
)
Other, net (1)
(4,073
)
(937
)
(5,010
)
—
(5,010
)
Net cash provided by financing activities
204,984
(937
)
204,047
Effect of exchange rate changes on cash
(1,942
)
10
(1,932
)
Net increase (decrease) in cash and cash equivalents
48,246
(2,497
)
45,749
Cash and cash equivalents, beginning of period
269,282
1,523
270,805
50,670
220,135
Cash and cash equivalents, end of period
$
317,528
$
(974
)
$
316,554
$
7,750
$
308,804
(1)
The summary of corrections table above inadvertently omitted disclosure for proceeds from the issuance of common stock as follows: $3.0 million as previously reported, $0 adjustments and $3.0 million as corrected.
Reconciliation of Non-GAAP Financial Measures
The company's financial results include certain financial measures not derived in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Non-GAAP financial measures, including Adjusted Net income, Adjusted EPS, Adjusted SG&A Margin, and Adjusted Operating Income, should not be used as a substitute for GAAP financial measures, or considered in isolation, for the purpose of analyzing our operating performance, financial position or cash flows.
The company has presented these non-GAAP financial measures as the company believes that the presentation of the financial results that exclude (1) transformation expenses under the company’s turnaround plan, (2) other significant costs and (3) nonrecurring tax expense are useful and indicative of the company's base operations because the expenses vary from period to period in terms of size, nature and significance. These measures assist in comparing the company’s current operating results with past periods and with the operational performance of other companies in the industry. The disclosure of these measures allows investors to evaluate the company’s performance using the same measures management uses in developing internal budgets and forecasts and in evaluating management’s compensation. Included below is a description of the expenses the company has determined are not normal, recurring cash operating expenses necessary to operate the company’s business and the rationale for why providing these measures is useful to investors as a supplement to the GAAP measures.
Transformation Expenses — Costs incurred in connection with the company's turnaround plan and specific transformative activities related to asset optimization that the company does not view to be normal cash operating expenses. These expenses primarily include:
Distribution network optimization — Costs primarily relating to the conversion of the stores and DCs to market hubs, including temporary labor, team member severance, long-lived asset write off charges and incremental depreciation, as a result of accelerating depreciation of long-lived assets over a shorter useful life as a result of the optimization plans. Third-party professional services — Costs relating to non-recurring services rendered by third-party vendors assisting with the turnaround initiatives. Other Expenses — Costs incurred by the company that are not viewed as normal cash operating expenses and vary from period to period in terms of size, nature, and significance, including but not limited to executive turnover and incremental costs associated with remediating the company's previously-disclosed material weaknesses in internal control over financial reporting.
Nonrecurring Tax Expense — Income tax incurred by the company from the book to tax basis difference in the Worldpac Canada stock directly resulting from the sale of Worldpac.
The following tables include reconciliations of this information to the most comparable GAAP measures:
Reconciliation of Adjusted Net Income and Adjusted EPS:
Twelve Weeks Ended
Forty Weeks Ended
(in thousands, except per share data)
October 5, 2024
October 7, 2023
October 5, 2024
October 7, 2023
Net (loss) income from continuing operations (GAAP)
$
(25,363
)
$
(74,186
)
$
22,576
$
5,166
Selling, general and administrative
adjustments:
Transformation expenses:
Distribution network optimization
8,909
—
13,943
—
Third-party professional services
3,582
50
5,301
320
Other charges:
Executive turnover
87
3,799
1,561
5,360
Material weakness remediation
1,293
429
3,649
429
Other significant costs (1)
2,394
—
3,491
—
Provision for income taxes on adjustments (2)
(4,066
)
(1,070
)
(6,986
)
(1,527
)
Nonrecurring tax expense
10,000
—
10,000
—
Adjusted net (loss) income (Non-GAAP)
$
(3,164
)
$
(70,978
)
$
53,535
$
9,748
Diluted (loss) earnings per share from continuing operations (GAAP)
$
(0.42
)
$
(1.24
)
$
0.38
$
0.09
Adjustments, net of tax
0.38
0.05
0.52
0.08
Adjusted EPS (Non-GAAP)
$
(0.04
)
$
(1.19
)
$
0.90
$
0.17
(1)
During the twelve and forty weeks ended October 5, 2024, the Company recorded expense of $2.4 million and $3.5 million for costs incurred following a cybersecurity incident that occurred over these periods.
(2)
The income tax impact of non-GAAP adjustments is calculated using the estimated tax rate in effect for the respective non-GAAP adjustments.
Reconciliation of Adjusted Selling, General and Administrative Expenses
Twelve Weeks Ended
Forty Weeks Ended
(in thousands)
October 5, 2024
October 7, 2023
October 5, 2024
October 7, 2023
SG&A (GAAP)
$
907,495
$
896,145
$
2,954,707
$
2,959,238
SG&A adjustments
16,265
4,278
27,945
6,109
Adjusted SG&A (Non-GAAP)
$
891,230
$
891,867
$
2,926,762
$
2,953,129
Reconciliation of Adjusted Operating Income:
Twelve Weeks Ended
Forty Weeks Ended
(in thousands)
October 5, 2024
October 7, 2023
October 5, 2024
October 7, 2023
Operating income (GAAP)
$
403
$
(78,578
)
$
106,697
$
81,242
SG&A adjustments
16,265
4,278
27,945
6,109
Adjusted operating income (Non-GAAP)
$
16,668
$
(74,300
)
$
134,642
$
87,351
NOTE:
Adjusted SG&A, Adjusted SG&A as a percentage of Net sales, Adjusted operating income and Adjusted operating income margin (calculated by dividing Adjusted operating income by Net sales) are non-GAAP measures. Management believes these non-GAAP measures are important metrics in assessing the overall performance of the business and utilizes these metrics in its ongoing reporting. On that basis, management believes it is useful to provide these metrics to investors and prospective investors to evaluate the company’s operating performance across periods adjusting for these items (refer to the reconciliations of non-GAAP adjustments above). These non-GAAP measures might not be calculated in the same manner as, and thus might not be comparable to, similarly titled measures reported by other companies. Non-GAAP measures should not be used by investors or third parties as the sole basis for formulating investment decisions, as they may exclude a number of important cash and non-cash recurring items.
Reconciliation of Free Cash Flow: (1)
Forty Weeks Ended
(in thousands)
October 5, 2024
October 7, 2023
Cash flows provided by operating activities of continuing operations
$
81,019
$
(28,314
)
Purchases of property and equipment
(129,714
)
(174,186
)
Free cash flow
$
(48,695
)
$
(202,500
)
Adjusted Debt to Adjusted EBITDAR: (1)
Four Quarters Ended
(In thousands, except adjusted debt to adjusted EBITDAR ratio)
October 5, 2024
December 30, 2023
Total GAAP debt
$
1,788,513
$
1,786,361
Add: Operating lease liabilities
2,711,578
2,660,827
Adjusted debt
$
4,500,091
$
4,447,188
GAAP Net income
$
50,819
$
29,735
Depreciation and amortization
309,566
306,454
Interest expense
80,559
88,055
Other expense, net
(16,174
)
(5,525
)
Provision for income taxes
23,843
2,112
Rent expense
638,232
613,859
Share-based compensation
46,557
45,647
Other charges (2)
40,091
12,419
Transformation related charges
27,131
29,719
Adjusted EBITDAR
$
1,200,624
$
1,122,475
Adjusted Debt to Adjusted EBITDAR
3.7
4.0
(1)
The four quarters ended October 5, 2024, includes the correction of non-material errors the company discovered in previously reported results.
(2)
The adjustments to the four quarters ended October 5, 2024, and December 30, 2023, include expenses associated with the company's material weakness remediation efforts and executive turnover.
NOTE:
Management believes its Adjusted Debt to Adjusted EBITDAR ratio (“leverage ratio”) is a key financial metric for debt securities, as reviewed by rating agencies, and believes its debt levels are best analyzed using this measure. The company’s goal is to maintain an investment grade rating. The company's credit rating directly impacts the interest rates on borrowings under its existing credit facility and could impact the company's ability to obtain additional funding. If the company was unable to maintain its investment grade rating, this could negatively impact future performance and limit growth opportunities. Similar measures are utilized in the calculation of the financial covenants and ratios contained in the company's financing arrangements. The leverage ratio calculated by the company is a non-GAAP measure and should not be considered a substitute for debt to net earnings, as determined in accordance with GAAP. The company adjusts the calculation to remove rent expense and to add back the company’s existing operating lease liabilities related to their right-of-use assets to provide a more meaningful comparison with the company’s peers and to account for differences in debt structures and leasing arrangements. The company’s calculation of its leverage ratio may not be calculated in the same manner as other companies, and thus may not be comparable to similarly titled measures used by other companies.
Store Information
During the forty weeks ended October 5, 2024, 23 stores were opened and 29 were closed, resulting in a total of 4,781 stores as of October 5, 2024, compared with a total of 4,786 stores as of December 30, 2023.
The below table summarizes the changes in the number of company-operated stores during the twelve and forty weeks ended October 5, 2024:
Twelve Weeks Ended
AAP
CARQUEST
Total
July 15, 2024
4,484
292
4,776
New
9
—
9
Closed
(2
)
(2
)
(4
)
Converted
1
(1
)
—
October 5, 2024
4,492
289
4,781
Forty Weeks Ended
AAP
CARQUEST
Total
December 30, 2023
4,484
302
4,786
New
23
—
23
Closed
(17
)
(12
)
(29
)
Converted
2
(1
)
1
October 5, 2024
4,492
289
4,781
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By garryhe
Table of contents
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Brake pads are essential components of a vehicle’s braking system, designed to create friction against the brake rotor or drum. These flat, metal-backed plates feature a friction material that, when the brake pedal is pressed, gets pressed against the spinning rotor through hydraulic pressure from the brake caliper. This action generates the necessary stopping force to decelerate or halt the vehicle. Due to regular wear from friction, brake pads should be frequently inspected and replaced to maintain safe braking performance. performance
Global Demand for Brake Pads in 2023
According to a recent market report, the global automotive brake pads market reached 6.097 billion yuan in 2022, with China accounting for 1 billion yuan. Projections indicate that by 2028, the market will expand to 7.199 billion yuan, reflecting a compound annual growth rate (CAGR) of 2.73% between 2023 and 2028. This growth highlights the increasing demand for brake pads, leading more companies to enter the manufacturing and distribution sectors.
Transportation, highlighting the increasing demand for the brake pads industry. Consequently, more enterprises are expected to join the ranks of brake pad production or distribution. Now, let’s unveil the 20 influential and competitive global brands in 2024；
Top Brake Pad Manufacturers and Distributors in 2024
Here are the top 5 influential global brake pad brands in 2024: for manufacturers and distributors.
Brembo S.p.A
link hidden, please login to view link hidden, please login to view link hidden, please login to view Italy Primary Products: Renowned for high-performance braking systems across vehicles, including racing applications.
BremboBrembo is an acknowledged world leader and innovator in the field of automotive disc brake technology, The company supplies high-performance braking systems to the premier makers of automobiles, motorcycles, and commercial vehicles worldwide. The company sells over 1,300 products across the world and has a presence in both OEMs and aftermarket. It is also a prominent brake system supplier to racing events such as F1, MotoGP, and IndyCar series.
you can look through the Brembo website to check more details.
Akebono
link hidden, please login to view link hidden, please login to view link hidden, please login to view Japan, USA Primary Products: ULTRA-PREMIUM BRAKE PADS, BRAKE PAD REPLACEMENT for Asia vehicles, Dometic vehicles, European vehicles, and performance vehicles.
Akebono manufactures a wide range of brake friction materials and foundation brake assemblies, including disc brake calipers and drum brakes, as well as latest technology EPB braking (electric park brakes), all employing the Akebono Production System (APS). The APS approach features proven quality control techniques to guarantee minimal process variation in all phases of production. Embraced throughout the organization, APS enables the company to consistently achieve nearly zero defects per million parts produced. all brake pads or kits made in USA.
Explore the line of Ultra-Premium Brake Pads, designed by Akebono OE engineers to meet the needs of our aftermarket customers. You’ll find that Akebono truly is The Essence of Braking®. And get the safety, reliability and performance that only a global leader in brake products can provide.
EBC Brakes
link hidden, please login to view link hidden, please login to view link hidden, please login to view UK Primary Products: brake pads /discs and rotors for Automotive, Motorcycle, Scooter, Bicycle, Racing, and UTV and other accessories.
With a worldwide workforce of over 400 people, EBC Brakes is an independently owned and managed leader in the brake market, proud of its customers, its products, its success, and its people.
EBC Brakes produces the largest range of brake pads and brake discs in the world, with over 5000 part numbers for every type of moving vehicle. EBC Brakes are made in one of its two specialist factories in the UK and USA. The majority of EBC brake discs or brake rotors are also made in the UK.
Including brake pads /discs and rotors for Automotive, Motorcycle, Scooter, Bicycle, Racing, and UTV.
ATE
link hidden, please login to view link hidden, please login to view link hidden, please login to view UK Primary Products: Disc brake pads, brake discs, brake drums, brake fluid, hydraulic parts, clutch parts, and wheel speed sensors.
ATE has more than 100 years of experience – ATE brand is one of the oldest and most successful in the brakes market today. They are naturally proud of this tradition and proud that they are part of Continental, one of the largest and most influential automotive suppliers in the world.
Continental develops intelligent technologies to move people and their goods. As an international automotive supplier, tyre manufacturer and industry partner, the Group offers sustainable, safe, convenient, individual and affordable solutions.
Continental develops pioneering technologies and services for sustainable and connected mobility of people and their goods. Founded in 1871, the technology company offers safe, efficient, intelligent and affordable solutions for vehicles, machines, traffic and transport. In 2023, Continental generated sales of €41,4 billion and currently employs around 200,000 people in 56 countries and markets.
Brands in the independent aftermarket
The commercial vehicle and trading activities of Continental are combined in the business area Smart Mobility (SMY). The following product brands are sold there:
Continental VDO ATE Galfer Wagner Brake
link hidden, please login to view link hidden, please login to view link hidden, please login to view Frankfurt, German Primary Products: brake pads, lighting, Fluids, rotors
Wagner® is the innovator in braking technologies for passenger cars, medium-duty, and commercial applications. Wagner sets industry standards with leading engineering expertise and a commitment to ensuring that our parts deliver superior braking performance. With comprehensive coverage, Wagner Brake provides all the components necessary for a complete brake repair. Our premium products offer exceptional quality for all the latest applications.
Wagner® lighting products have been on the leading edge of auto lighting since the development of the sealed-beam headlamp. With an exclusive focus on automotive lighting, customers benefit from proven expertise in engineering and manufacturing OE components for the world’s major automotive manufacturers. With comprehensive coverage, Wagner is enhancing driving visibility and safety for all your automotive replacement lighting needs.
BOSCH
link hidden, please login to view link hidden, please login to view link hidden, please login to view Missouri, USA Primary Products: QuietCast™ Premium Disc Brake Rotors, QuietCast™ Premium Disc Brake Pads; Euroline Brake Pads; Blue Disc Brake Pads; Police Pursuit Brake Pads; Blue Brake Shoes; Hydro-Boost® Power Brake Assembly; QuietCast™ Medium Duty Brake Pads; Severe Duty Brake Pads
With over 130 years of experience in the automotive industry, Bosch continues to lead the way in automotive innovation by inventing and developing quality products and solutions that focus on customer needs, shaping the future, and the continued pursuit of excellence.
Bosch Automotive Aftermarket offers a comprehensive portfolio of unmatched solutions for every job. From diverse diagnostic solutions and OE-quality auto parts to industry-leading software and unmatched vehicle coverage, to innovative charging, repair, and maintenance tools. Bosch has solutions for every shop.
ACDelco
link hidden, please login to view link hidden, please login to view link hidden, please login to view USA Primary Products: BRAKE DRUM & ROTORS; BRAKE HYDRAULICS; BRAKE PADS & SHOES;
For more than 100 years,† General Motors has pushed the limits of transportation and technology, and they’re proud to have helped drive that innovation. GM Genuine Parts and ACDelco are proud to work together as the only source for true General Motors Original Equipment and aftermarket parts. Our roots empower us. ACDelco has been at the forefront of automotive innovation since the birth of GM in 1908, but a strong start in automotive wasn’t enough. They’ve helped a woman fly around the world and a man traverses the surface of the moon. However, our history isn’t half as promising as our future as we continue to go forward with GM Genuine Parts by our side to offer and grow our technical training and rewards programs. From the assembly line to the finish line, GM technological innovation and improvement continue to build with GM Original Equipment as our foundation.
General Motors drivers value confidence in their vehicles, the premium parts that help keep them on the road, and the professionals that maintain and repair them. GM Genuine Parts and ACDelco are proud to work together as the only source for true General Motors Original Equipment and aftermarket parts. That’s a responsibility they don’t take lightly, as they constantly strive to earn drivers’ vote of confidence by: Building and innovating on the quality of GM Parts Providing drivers with assurance as they stand behind our work Constantly supporting the trained professionals that help keep you on the road Innovation brings challenge and opportunity, and They’re suiting up for both. When it comes to the evolving maintenance, repair, collision, and powertrain needs of Chevrolet, Buick, GMC, and Cadillac vehicles, only GM Genuine Parts and ACDelco offer true GM Original Equipment built for what’s next. That’s why with GM Genuine Parts and ACDelco – Certainty Starts Here.
Ferodo
link hidden, please login to view link hidden, please login to view link hidden, please login to view USA Primary Products: Premium brake pads, Rotors;
Ferodo is a leading, European based, internationally-recognized brand and favorite of the aftermarket. Our product range includes advanced technology brake pads, brake discs, lined shoes, and brake fluids, as well as racing and high-performance products and accessories. Our brake pads are offered to the North American aftermarket.
They are passionate about progress and bold innovation has fueled our success. 17 globally-networked technology centers enable us to bring breakthroughs in advanced technology and innovation to original equipment (OE) manufacturers and to the aftermarket. they have secured thousands of patents as we work to bring advanced technologies for cleaner engines and enhanced safety and comfort
Forerunner on the market, ECO-FRICTION® is the result of 5 years of dedicated Research with 1,500 materials tested and 25 different new components.
ECO-FRICTION® MAKES IT GREENER FOR BEST-IN-CLASS PERFORMANCE WITH THIS TECHNOLOGICAL BREAKTHROUGH
Green materials for a greener product & a significant reduction of fine particle emissions
Noise suppression Increased safety Best-in-class performance results AS GREAT AS A FERODO®PREMIER PAD, MINUS THE COPPER
ECO-FRICTION®Brake tested on 6 popular vehicle models: consistency of performance results ascertained Up to 17% more stopping power than competitors’ brands on selected vehicles makes the Eco-Friction®pad the best product with a technical innovation already approved and adopted by vehicle manufacturers. ALREADY APPROVED BY PREMIUM CAR BRANDS
Fitted as Original Equipment on Mercedes-Benz C-Class since March 2014 and Audi A4 since September 2015.
Bendix
link hidden, please login to view link hidden, please login to view link hidden, please login to view USA Primary Products: BENDIX PREMIUM brake kit, BENDIX PRIORITY 1 brake kit; BENDIX FLEET METLOCK kit
The history of the Bendix brand has been highlighted by a long list of major product contributions to the automotive industry for over a century. The success of the Bendix® brand has been the result of many major product contributions to the automotive, aviation, aerospace and transportation industries for nearly a century. With brakes on cars, buses, trucks, trailers, airplanes, golf carts, farm and construction equipment – and even bicycles, Bendix is one of the best-known names in the transportation industry.
MAT Holdings has been manufacturing the Bendix brand of light and medium-duty brake products since 2014. MAT Auto Group, part of MAT Holdings, is a leading global manufacturer of friction, cast iron (braking & transmission), and ride control products for OEM, OES, and aftermarket light, medium, & heavy duty vehicle markets.
MAT Auto Group brings to Bendix the latest in brake technology, global manufacturing, and first-to-market coverage in the light and medium-duty vehicle markets. In addition, MAT Auto Group consists of a family of companies representing a true vertically integrated supply chain. Our vertical integration allows us to control the materials, processes, and quality from raw materials to finished products and deliver those products to our multi-channel distributors on a consistent basis.
TEXTAR
link hidden, please login to view link hidden, please login to view link hidden, please login to view German Primary Products: Brake pads, brake discs, brake linings, brake drums, brake shoes, ABS sensors
Textar provides premium OE braking for every type of current and future requirement in the worldwide car parc. Whatever the driving conditions, Textar ensures best-in-class performance, comfort, and safety, along with maximum environmental and regulatory compliance – providing total confidence for distributors, workshops, and drivers alike.
From super-minis to heavy trucks, hybrids to fully electric vehicles, Textar covers more vehicles than any other braking brand in the aftermarket.
KETULLA
link hidden, please login to view link hidden, please login to view China Primary Products: Ceramic brake pads, semi metallic brake pads, low metallic brake pads, truck break pads
Established in 2000, Ketulla as a professional link hidden, please login to viewspecializes in a wide range of brake pads, maintaining strong international partnerships and offering OEM services.
We prioritize product research and development as well as product quality, which are the reasons why the company has been able to operate successfully until now. Additionally, we are honored to be a leading member of the China Friction Materials Association and one of the organizations involved in drafting national standards for friction materials in China. We remain steadfast in our commitment to innovation and research, continuously striving to meet market demands.
We have established strong cooperative relationships with customers in 32 countries and regions worldwide, with a portfolio of over 13,200 collaborating brands. We remain committed to providing OEM customized services. Our primary product range includes ceramic brake pads, semi-metallic brake pads, and low metallic brake pads designed for both light vehicles and commercial vehicles. Additionally, we offer a comprehensive selection of 2,351 different pad models, covering approximately 98% of vehicles and trucks globally.
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By Counterman
link hidden, please login to view, a global manufacturer of filtration products, and AMN/Counterman magazine named Moe Ali of Arch Auto Parts the 2024 Counter Professional of the Year. Ali is the vice president of sales at Arch Auto Parts, a division of NexaMotion Group. The Counter Professional of the Year award, sponsored by WIX Filters and presented at AAPEX in Las Vegas, annually recognizes an automotive aftermarket parts professional whose dedication, work ethic and expertise elevate their business and the profession as a whole.
“Moe’s commitment to customer service is what sets him apart,” says Tina Davis, senior marketing manager – WIX global and US. “No one is more dedicated to getting the right parts for his customers. It’s why they continue to come back to him decades later. We are honored to recognize Moe as the 2024 Counter Professional of the Year.”
Born in Guyana, Ali came to the United States at the age of eight. He was still in high school when he took a job as a part-time employee at Arch Auto Parts in Hollis, New York. Over the years, he took on a variety of roles, all of which helped develop the skills and knowledge needed to thrive as an aftermarket parts professional.
“Moe has developed excellent parts and sales skills,” said Chris Bodh, group president of general repair businesses at Arch’s parent company, NexaMotion Group. “He’s loved and respected by his staff and customers and has an amazing attitude, even when he is juggling a lot of priorities.”
Ali has made a career based on exceptional customer service. Developing relationships is what keeps generations of customers coming back to him. His philosophy is simple: “Get ‘em the right part, the first time.”
“Moe just worked hard and earned a lot of respect from a lot of his colleagues and customers,” said Kish Samaroo, vice president of operations at Arch Auto Parts. “He is the go-to guy. Every customer wants him because he has this personality that is really cool and calm.”
Despite ascending to an executive role, Ali doesn’t shy away from the sales floor. He says he’d rather be “where the action is.”
“It is truly an honor to award Moe as the 2024 Wix Filters Counter Professional of the Year,” said Jeff White, managing editor of Counterman. “He is deeply dedicated to his work, but it’s a labor of love. Moe goes beyond just selling a part—he cultivates relationships with his customers. People like Moe make the aftermarket great.”
As dedicated as he is to the business, Ali still makes time for his family: his wife of 28 years, Ramona, and their two daughters, both in their 20s.
As part of the Counter Professional of the Year award, Ali and his wife received an all-expenses paid trip to Las Vegas for AAPEX 2024. He was honored during the AWDA luncheon and was presented the award during the AMN/Counterman Counter Professional of the Year reception.
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By Counterman
The Aftermarket Warehouse Distributors Association (AWDA), a community of the Auto Care Association, presented the 2024 Art Fisher Award for Excellence in Education, to Larry Pavey, CEO of the Automotive Products Services Group. The award was presented on Nov. 3 by AWDA Vice-Chair Fletcher Lord III at AWDA’s 2024 Annual Conference in Las Vegas.
AWDA’s Art Fisher Award for Excellence in Education is presented annually to an aftermarket company or individual that demonstrates outstanding commitment to education and training, either within their organization or throughout the industry. Given in memory of former AWDA Chairman Art Fisher, the award grants scholarships in the name of the award winner to two students enrolled in the automotive aftermarket management program at Northwood University.
Larry Pavey, CEO of the Automotive Parts Services Group, has spent his entire career in the automotive aftermarket, starting in sales at Walker Manufacturing, then on to the BWD division of Echlin. He served as vice president of marketing for the Borg Warner, Niehoff and Whitaker brands.
With Pavey at the helm, Echlin’s brake business made more than 20 acquisitions, becoming the largest brake supplier in the aftermarket industry. He served as president of Echlin’s North American Operations and later president of Dana’s Under Vehicle Group.
Today Pavey serves as CEO of the Automotive Parts Service Group, a joint venture between the National Pronto Association and the Federated Alliance. He has been active in many industry associations, serving on the boards of ASE, AAPA, MEMA, the Auto Care Association and the AWDA Board of Governors.
In 2016 Pavey was presented with the Martin Fromm AWDA Lifetime Achievement Award and in 2018 he was presented with the Jack Creamer Leader of the Year Award.
His commitment to the automotive aftermarket is long and varied. He has worked on both sides of the supply chain. He is a quiet but effective leader and teacher who has had a major impact on the industry.
Pavey has the ability to look at the industry as a whole and strive to do what is best for everyone to help them succeed.
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By Counterman
The Aftermarket Warehouse Distributors Association (AWDA), a community of the Auto Care Association, presented its 2024 Pursuit of Excellence Award to Larry Pacey, president and CEO of NPW Companies. The award was presented by AWDA Secretary Cliff Hovis at the association’s 2024 Annual Conference on Nov. 3 in Las Vegas.
Established in 1983, the Pursuit of Excellence Award is presented exclusively to an AWDA member for special achievement and for the setting of high standards as an example for others to follow, in business and in volunteer or advocacy efforts.
More than 55 years ago, Larry Pacey founded NPW Companies, then known as National Carburetor Exchange, out of a 600-square-foot building. Pacey did everything from sales and collections to rebuilding carburetors entirely on his own. Five decades later, the company — still led by Pacey but now staffed by an effective team — boasts 30 locations across the United States and Canada, including more than 100 corporate and independently owned jobbers, and services nearly 200 Auto Value, Bumper to Bumper and Confidence Plus Certified Service Centers. With Pacey at the helm, NPW is one of the most expansive and fastest-growing warehouse distributor powerhouses in the nation.
Pacey had a big vision for NPW Companies from the start. Within five years of founding, he evolved the business to include a retail parts store handling many performance lines. In 1974, the business became a warehouse distributor carrying all performance lines. Throughout the 1980s, Pacey grew the business through expansion into traditional parts and opened additional warehouses in Orlando and West Palm Beach, Florida. He added truck accessories to the company’s product offerings in 1998.
In 2008, Pacey’s team acquired Southern Performance Warehouse, marking the beginning of the company’s quest to significantly expand their footprint. Over the next 10 years, the company completed more than 20 acquisitions in many different regions. Through the strategic acquisition, organic sales growth and strong leadership, the company became dominant in the aftermarket and continues to grow quickly, even amid the uncertainty of the pandemic.
NPW Companies is known for its major industry-wide events, hosted by Pacey. At the company’s annual golf tournament, Pacey takes on all players on the “Beat the Boss” hole to ensure he gets to interact and play with every guest at the event. The company’s annual FAST Florida Automotive, Speed & Truck Expo brings in thousands of attendees. And the nearly 10-year-old Million Dollar Dinner, exclusive to vendor partners who do more than $1 million of business with NPW Companies, is a black-tie affair beloved by invitees. The company has also expanded its trade show presence to Canada.
Pacey and his team are actively involved within the industry as he formerly served on the boards of the AWDA Board of Governors.
Today, NPW operates in over 1,500,000 sq. ft. of warehouse space with 23 distribution centers, Alaska, Alabama, Arizona, California, Florida, Idaho, New Mexico, Oklahoma, Oregon, Rhode Island, Tennessee, Texas, Utah, Washington and Canada. NPW services over 30,000 accounts in North America and several international markets. A team that size with that massive of a footprint needs a foundation to succeed and that begins with education and industry training.
NPW, as a member of the Alliance and under Pacey’s leadership, has both orchestrated and attended three successful Alliance Aftermarket Jackpot Conventions in Las Vegas, bringing more than 6,000 technicians and shop owners to AAPEX over the years. As a member of the Alliance Board of Directors, Pacey’s leadership and belief in education was a driving force in bringing large contingents of shop, service and repair professionals to AAPEX and connecting them with their distributor partners and the manufacturers who operate in the aftermarket channel.
Pacey and his team are Auto Care Political Action Committee (ACPAC) supporters, and are always seen on the hill as political advocates, actively engaging with both local and national lawmakers; advocating for H.R. 906 The REPAIR Act and the Technicians’ Right to Repair.
NPW’s team under Pacey’s leadership and guidance are active supporters of The University of the Aftermarket and the University of the Aftermarket Foundation, including the Auto Value and Bumper to Bumper scholarship program, which in total has provided nearly $600,000 to students pursuing industry and secondary education.
Pacey continues to sponsor Young Auto Care Networking Group (YANG) as well as Women in Auto Care (WiAC).
Outside of the industry, Pacey supports the First Tee program in Miami, Florida, which is a youth development organization that enables kids to build strength of character by integrating the game of golf with a life skills curriculum. His industry involvement is expansive and impressive company footprint are tributes to his success as a backbone and leader of the aftermarket.
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