PDF《2017》

2017 A D V A N C E A U T O P A R T S , I N C .

2017 $601

2016 $523

2015 $690

2017 $411

2016 $264

2015 $455

2017 $5.37

2016 $7.15

2015 $7.82

2017 $9.37

2016 $9.57

2015 $9.74

2017 $6.42

2016 $6.20

2015 $6.40 (1) Free cash ?ow is a non-GAAP measure and should be considered in addition to, but not as a substitute for, information contained in our Consolidated Statements of Cash Flows that can be found on page F-6 in our

2017 Form 10-K included in this annual report. Free cash ?ow of $411 million can be reconciled to net cash provided by operating activities on a GAAP basis of $601 million by adding back purchases of property and equipment of $190 million. (2) Diluted earnings per share have been reported on an adjusted basis to exclude certain non-operational and non-cash expenses in

2017 and 2016, including General Parts International, Inc. ( GPI ) integration and store consolidation costs, amortization of GPI acquired intangible assets, transformation expenses and the net impact of the Tax Cuts and Jobs Act. A reconciliation of the adjusted ?nancial results to the most comparable GAAP results for

2017 and

2016 can be found on pages

17 and

21 of Management'

s Discussion and Analysis of Financial Condition and Results of Operations in our

2017 Form 10-K included in this annual report. C O M P A N Y H I G H L I G H T S D ILU TED EAR N IN G S P ER SH AR E $6.42 O P ER ATIN G C ASH FLOW (IN MILLIONS) $601 TOTAL NET SALES (IN BILLIONS) $9.37 FREE CASH FLOW1 (IN MILLIONS) $411 ADJUSTED EARNINGS PER SHARE2 $5.37

2017 $5.37

2016 $7.15

2017 $6.42

2016 $6.20

2017 $411

2016 $264

2017 $601

2016 $523

2017 $9.37

2016 $9.57 In 2017, we embarked on the first full year of our five-year transformation plan focused on long- term growth and increasing shareholder value. In this critical first year, we significantly narrowed the comparable sales growth gap versus our peers, and drove a

56 percent increase in free cash flow. The entire team across all banners of Advance Auto Parts, Inc., as well as our network of Carquest Independents, performed with unrelenting focus throughout the year to ensure Customers remained our primary focus. While the competitive landscape is evolving, we have an existing asset base that has been underutilized. Our goal is to dramatically improve execution across our base business while building competitive advantages in growth areas such as rapid delivery of parts to professional shops and ease of online ordering for both Do- It-Yourself (DIY) and Professional Customers. INVESTING IN LONG-TERM GROWTH Throughout 2017, we made investments in our Customers, Team Members and technology to solidify our Value Proposition and build the foundation for long-term growth for the business and shareholders. This will remain our highest priority as we transform Advance. We are committed to the long-term opportunity ahead for our business and believe these investments are integral to our transformation efforts as we provide the best brands for our Customers and deliver on our Mission: Passion for Customers…Passion for Yes! Financial Highlights for

2017 include: PASSION FOR CUSTOMERS... PASSION FOR YES! Throughout 2017, we remained steadfast in our mission to improve our Customer Value Proposition. We recognize that winning long term requires an unwavering commitment to delivering what matters most to our DIY and Professional Customers. More importantly, understanding the demand drivers for different Customers enables us to prioritize key initiatives within our long-term strategic plan. We will be uncompromising in improving the experience for both Professional and DIY Customers. Investments in online and e-commerce capabilities along with new tools and training for our Team Members are important elements of this plan. The increasing use of online search and ordering required necessary improvements across our digital footprint. To better serve our Customers and capture the growing online demand, we launched our improved website in mid-2017, providing a D E A R F E L L O W S H A R E H O L D E R S ― continued