O'Reilly Automotive Reports Annual and Fourth Quarter Earnings
SPRINGFIELD, Mo.--Feb. 27, 2001--O'Reilly Automotive, Inc. :8th Consecutive Year of Record Revenues and Earnings;
18.1% Increase in Sales; 101 New Stores Added in 2000
and 120 Planned for 2001
O'Reilly Automotive, Inc. ("O'Reilly," the "Company") today announced record revenues and earnings for the year ended December 31, 2000.
This represents the eighth consecutive year of record revenues and earnings for O'Reilly since becoming a public company in April, 1993.
Net income for the year ended December 31, 2000, totaled $51.7 million, up 13.3% from $45.6 million a year ago. Basic earnings per share ("EPS") for the year increased 7.4% to $1.01 on 51.2 million common shares, compared to $0.94 on 48.7 million common shares for the prior year. Diluted EPS for the year ended December 31, 2000, were $1.00 on 51.7 million common shares, an 8.7% increase from prior year diluted EPS of $0.92 on 49.7 million common shares.
Net income for the fourth quarter ended December 31, 2000, was $9.2 million, down 22.3% from $11.9 million for the same period in 1999. Basic EPS for fourth quarter 2000 decreased 21.7% to $0.18 on 51.4 million common shares, compared to $0.23 on 50.8 million common shares in 1999. Diluted EPS for the quarter ended December 31, 2000, were $0.18 on 52.3 million common shares, a 21.7% decrease from the diluted EPS of $0.23 on 51.8 million common shares for the same period in 1999.
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%. Gross profit for the year increased to $382.7 million (43.0% of product sales), a 17.6% increase from $325.3 million (43.1% of product sales) for the year ended December 31, 1999.
Product sales for the 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%. Gross profit for the fourth quarter in 2000 increased to $94.9 million (43.8% of sales), a 12.3% increase from $84.5 million (46.1% of sales) for the same period in 1999.
Comparable store product sales for stores open at least one year, increased 5.7% and 5.0% for the quarter and year ended December 31, 2000, respectively. Comparable store product sales for only those stores open during both full periods being compared increased 3.7% and 4.0% for the quarter and year ended December 31, 2000, respectively.
David O'Reilly, co-chairman of the board and chief executive officer, stated: "Fourth quarter earnings were negatively impacted by our unprecedented opening of two distribution centers in one quarter, higher than anticipated claims under the Company's self-insured medical plan, unanticipated claims under the Company's self-insured workers' compensation plan and lower than anticipated sales. Adjustments have been made to the premiums collected from our team members for medical insurance, and distribution costs are expected to return to historical levels in 2001 with 120 planned new store openings, including 23 opened to date. We are excited about 2001 and confident in the abilities of our 11,000 team members to continue our history of strong financial performance."
The Company will host a conference call on Wednesday, February 28, 2001, at 10:00 a.m. Central Time to discuss its results and future expectations. Investors may listen to the conference call live on the Company's website, www.oreillyauto.com by clicking "Investor Information," then "Conference Calls." A replay of the call will be available on the website.
O'Reilly Automotive is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States, serving both the do-it-yourself and professional installer markets. Founded in 1957 by the O'Reilly family, the Company operated 672 stores within the states of Texas, Missouri, Oklahoma, Kansas, Iowa, Arkansas, Louisiana, Nebraska and Illinois as of December 31, 2000.
Certain statements contained in this press release are forward-looking statements. These statements discuss, among other things, expected growth, store development and expansion strategy, business strategies, future revenues and future performance. These forward-looking statements are subject to risks, uncertainties and assumptions, including, but not limited to, competition, product demand, the market for auto parts, the economy in general, inflation, consumer debt levels, governmental approvals, our ability to hire and retain qualified employees and the weather. Actual results may materially differ from anticipated results described in these forward-looking statements. Please refer to the Risk Factors sections of the Company's Form 10-K for the year ended December 31, 1999, for more details.
O'Reilly Automotive, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
December 31, December 31,
2000 1999
------------ ------------
(Unaudited) (Note)
In thousands, except share data
Assets
Current assets:
Cash $ 9,204 $ 9,791
Short-term investments 500 500
Accounts receivable, net 32,673 26,462
Amounts receivable from
vendors 29,175 25,984
Inventory 372,069 293,924
Refundable income taxes 92 2,333
Deferred income taxes 1,402 1,776
Other current assets 4,089 3,583
------------------ -------------------
Total current assets 449,204 364,353
Property and equipment, at
cost 323,021 292,806
Accumulated depreciation
and amortization 76,167 56,289
------------------ -------------------
246,854 236,517
Other assets 19,937 9,572
------------------ -------------------
Total assets $715,995 $610,442
================== ===================
Liabilities and shareholders'
equity
Current liabilities:
Note payable to bank $ 35,000 $ 5,000
Income taxes payable 1,011 --
Accounts payable 68,947 64,885
Accrued payroll 9,309 6,278
Accrued benefits &
withholdings 9,360 10,382
Other current liabilities 15,184 14,099
Current portion of long-term
debt 14,121 14,358
------------------ -------------------
Total current liabilities 152,932 115,002
Long-term debt, less current
portion 90,463 90,704
Deferred income taxes 4,086 1,214
Other liabilities 4,783 478
Shareholders' equity:
Common stock, $0.01 par value:
Authorized shares -- 90,000,000
Issued and outstanding
shares -- 51,544,879 at
December 31, 2000, and
50,799,353 at
December 31, 1999 515 508
Additional paid-in capital 230,600 221,628
Retained earnings 232,616 180,908
------------------ -------------------
Total shareholders' equity 463,731 403,044
------------------ -------------------
Total liabilities and
shareholders' equity $715,995 $610,442
================== ===================
Note: The balance sheet at December 31, 1999, has been derived
from the audited financial statements at that date, but does not
include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements.
O'Reilly Automotive, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
--------- -------- -------- --------
2000 1999 2000 1999
--------- -------- -------- --------
In thousands, except per-share data
Product sales $216,891 $183,210 $890,421 $754,122
Cost of goods sold,
including warehouse
and distribution
expenses 121,998 98,701 507,720 428,832
Operating, selling,
general and
administrative
expenses 77,872 65,691 292,672 248,370
---------- ---------- ---------- ----------
199,870 164,392 800,392 677,202
---------- ---------- ---------- ----------
Operating income 17,021 18,818 90,029 76,920
Other expense, net (2,340) (479) (6,870) (3,896)
---------- ---------- ---------- ----------
Income before income
taxes 14,681 18,339 83,159 73,024
Provision for income
taxes 5,465 6,484 31,451 27,385
---------- ---------- ---------- ----------
Net income $ 9,216 $ 11,855 $51,708 $ 45,639
========== ========== ========== ==========
Net income per
common share $ 0.18 $ 0.23 $ 1.01 $ 0.94
========== ========== ========== ==========
Net income per common
share -- assuming
dilution $ 0.18 $ 0.23 $ 1.00 $ 0.92
========== ========== ========== ==========
Weighted average
common shares
outstanding 51,417 50,751 51,168 48,674
========== ========== ========== ==========
Adjusted weighted
average common
shares
outstanding --
assuming dilution 52,257 51,752 51,728 49,715
========== ========== ========== ==========