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 that on April 19, 2021, its Board of Directors approved an additional share repurchase authorization of $1 billion, bringing the total available repurchase authorization to approximately $1.3 billion. In addition, the Board of Directors declared a quarterly cash dividend of $1.00 per share, an increase from $0.25. This dividend is payable July 2, 2021, to shareholders of record as of June 18, 2021.

"In recognition of our 2020 results, strong financial position and confidence in our ability to deliver additional top- and bottom-line growth this year, the Board has voted to significantly increase the quarterly dividend," said Tom Greco, president and chief executive officer. "Across Advance, we remain focused on our financial priorities of maintaining an investment grade rating, investing in the business and returning cash to shareholders. This increase in the quarterly cash dividend combined with the additional share repurchase authorization announced today reflects our commitment to a balanced approach to returning cash to shareholders."

Full Year 2021 Guidance

Mr. Greco continued "Further, as we highlighted earlier this morning, we estimate comparable store sales growth of 22% to 24% for the first quarter, including strength across both DIY omnichannel and professional. As a result of robust first quarter estimates along with our previously announced expansion in California, we are updating our full year guidance. Our team members and independent partners continue to care for our customers while executing on our long-term strategic initiatives. We are confident in our ability to deliver additional progress throughout the balance of the year."

	Full Year 2021 Guidance
	Original February 2021						Updated April 2021
($ in millions)	Low			High			Low			High
Net sales	$	10,100		$	10,300		$	10,200		$	10,400
Comparable store sales¹		1.0	%		3.0	%		2.0	%		4.0	%
Adjusted operating income margin¹		8.7	%		8.9	%		8.9	%		9.1	%
Income tax rate		24	%		26	%		24	%		26	%
Capital expenditures	$	275		$	300		$	300		$	350
Free cash flow¹	Minimum $600						Minimum $575
New store openings		50			100			100			150

¹For a better understanding of the company's adjusted results and comparable store sales, please refer to the company's press release issued February 16, 2021 and Annual Report on Form 10-K filed on February 22, 2021. Because of the forward-looking nature of the 2021 non-GAAP financial measures, specific quantification of the amounts that would be required to reconcile these non-GAAP financial measures to their most directly comparable GAAP financial measures are not available at this time.

About Advance Auto Parts

Advance Auto Parts, Inc. is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. As of January 2, 2021, Advance operated 4,806 stores and 170 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. The company also serves 1,277 independently owned Carquest branded stores across these locations in addition to Mexico, Grand Cayman, the Bahamas, Turks and Caicos and British Virgin Islands. Additional information about Advance, including employment opportunities, customer services, and online shopping for parts, accessories and other offerings can be found at www.AdvanceAutoParts.com.

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 the company's strategic initiatives, operational plans and objectives, and 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, factors related to the timing and implementation of strategic initiatives, the highly competitive nature of the company's industry, demand for the company's products and services, complexities in its inventory and supply chain, challenges with transforming and growing its business and factors related to the current global pandemic. Please refer to "Item 1A. Risk Factors." of the company's most recent Annual Report on Form 10-K 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.

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Advance Auto Parts Announces $1 Billion Increase to Share Repurchase Authorization, Increases Quarterly Cash Dividend and Updates Full Year 2021 Guidance