O'Reilly Automotive Announces Revenues and Updates Outlook

    SPRINGFIELD, Mo.--Feb. 9, 2001--O'Reilly Automotive, Inc. ("O'Reilly," the "Company") today announced record revenues and revised expectations for earnings per share for the fourth quarter and year ended December 31, 2000.
    Product sales for the year ended December 31, 2000, increased to $890.4 million from $754.1 million for the prior year, representing an increase of 18.1%. Product sales for the fourth quarter ended December 31, 2000, increased to $216.9 million from $183.2 million for the same period in 1999, representing an increase of 18.4%.
    Comparable store sales for stores open greater than one year increased 5.0% and 5.7% for the year and quarter ended December 31, 2000, respectively. Comparable store sales for those stores open during both full periods being compared increased 4.0% and 3.7% for the year and quarter ended December 31, 2000, respectively.
    Based on preliminary estimates of operating results, the Company anticipates earnings in the range of $.17-$.18 per share for the fourth quarter, and in the range of $.99-$1.00 per share for the year ended December 31, 2000. Consensus analyst estimates are $.29 per share for the fourth quarter and $1.11 for the year ended December 31, 2000. For 2001, O'Reilly expects revenue growth of approximately 18% resulting in total revenues of approximately $1.05 billion and earnings per share in the range of $1.22-$1.25. These expectations are based on estimated same store sales growth of 4%-5% for the year, together with 120 planned new store openings during 2001.
    The revised expectations for the fourth quarter and year ended December 31, 2000, are primarily attributable to specific non-recurring expenses. These expenses principally include pre-opening and start-up costs for the Company's Dallas, Texas, and Little Rock, Arkansas, distribution centers, higher than anticipated claims under the Company's self insured medical plan and unanticipated claims under the Company's self insured workers' compensation plan. Such expenses accounted for the majority of the revision to expectations with the remainder attributable to lower than anticipated sales, which negatively impacted operating results.
    David O'Reilly, CEO and Co-Chairman, stated: "While we are extremely disappointed with the results of our operations in the fourth quarter of 2000 due to the impact of these unusual items, we are confident in our ability to continue our strong record of performance in 2001. Though it is unprecedented for the Company to open two new distribution centers in one quarter, no new distribution centers are planned for 2001. Distribution costs are expected to return to historical levels with 120 planned new store openings in 2001, including 20 opened to date. Adjustments in the premiums collected from our team members for medical insurance will offset the unanticipated high claim levels we experienced during the fourth quarter of 2000. Also, we are happy to report sales are off to a strong start with double digit comparable store sales increases through the first five weeks of 2001."