O'Reilly Automotive Reports Comparable Store Sales of 14.4% and Record Second Quarter Sales and Earnings
SPRINGFIELD, Mo.--July 23, 2001--O'Reilly Automotive, Inc. ("O'Reilly") today announced record revenues and earnings for the second quarter of 2001, representing 31 quarters of record revenues and earnings for O'Reilly since becoming a public company in April 1993.For the three months ended June 30, 2001, net income totaled $18.0 million, up 25.3% from $14.4 million for the same period a year ago. Earnings per common share (diluted) for the second quarter of 2001 increased 21.4% to $0.34 on 52.4 million shares versus $0.28 a year ago on 51.5 million shares. Product sales for the second quarter of 2001 totaled $280.7 million, up 24.0% from $226.4 million in the previous year. Gross profit for the second quarter of 2001 increased to $117.9 million (or 42.0% of product sales) from $97.3 million (or 43.0% of product sales) for the second quarter of the prior year, representing an increase of 21.2%.
Net income for the first six months of 2001 totaled $30.3 million, up 16.9% from $25.9 million for the same period a year ago. Earnings per common share (diluted) for the first six months of 2001 increased 16.0% to $0.58 on 52.2 million shares versus $0.50 a year ago on 51.4 million shares. Product sales for the first six months of 2001 totaled $519.7 million, up 23.1% from $422.1 million in the first six months of the previous year. Gross profit for the first six months of 2001 increased to $220.5 million (or 42.4% of product sales) from $182.0 million (of 43.1% of product sales) for the first six months of the prior year, representing an increase of 21.2%.
Comparable store sales for stores open at least one year increased 14.4% and 12.0% for the second quarter and first six months of 2001, respectively. Comparable store product sales for only those stores open during both full periods being compared increased 11.8% and 10.5% for the second quarter and first six months of 2001, respectively.
David O'Reilly, co-chairman of the board and chief executive officer, stated, "We are pleased with our results this quarter highlighted by a comparable store product sales increase of 14.4%, operating margin of 11.0% and net margin of 6.4%. Our performance has continued to strengthen despite a difficult economic environment. These improvements are a direct result of the efforts of our 11,000-plus dedicated team members."
Larry O'Reilly, co-chairman of the board and chief operating officer, stated, "We continued to execute our store growth plan with 30 new stores added this quarter and 60 so far this year. We expect to open an additional 60 stores in the second half of the year for a total of 120 new stores in 2001."
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 732 stores within the states of Texas, Missouri, Oklahoma, Kansas, Iowa, Arkansas, Louisiana, Nebraska and Illinois as of June 30, 2001.
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, 2000, for more details.
O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2001 2000
---- ----
(Unaudited) (Note)
In thousands
Assets
Current assets:
Cash $ 16,801 $ 9,204
Short-term investments 500 500
Accounts receivable, net 41,401 32,673
Amounts receivable from vendors 16,551 29,175
Inventory 397,709 372,069
Refundable income taxes 14 92
Deferred income taxes -- 1,402
Other current assets 3,652 4,089
-------- --------
Total current assets 476,628 449,204
Property and equipment, at cost 354,223 323,021
Accumulated depreciation and amortization 89,408 76,167
-------- --------
Net property and equipment 264,815 246,854
Notes receivable 2,485 2,836
Other assets 14,075 17,101
-------- --------
Total assets $758,003 $715,995
======== ========
Liabilities and shareholders' equity
Current liabilities:
Note payable to bank $ -- $ 35,000
Income taxes payable 4,994 1,011
Accounts payable 72,056 68,947
Accrued payroll 10,660 9,309
Accrued benefits & withholdings 11,223 9,360
Other current liabilities 13,446 15,184
Current deferred income taxes 2,187 --
Current portion of long-term debt 14,908 14,121
-------- -------
Total current liabilities 129,474 152,932
Long-term debt, less current portion 112,197 90,463
Deferred income taxes 5,876 4,086
Other liabilities 4,686 4,783
Shareholders' equity:
Common stock, $0.01 par value:
Authorized shares - 90,000,000
Issued and outstanding shares -
52,199,439 at June 30, 2001,
and 51,544,879 at
December 31, 2000 522 515
Additional paid-in capital 242,329 230,600
Retained earnings 262,919 232,616
-------- -------
Total shareholders' equity 505,770 463,731
-------- -------
Total liabilities and
shareholders' equity $758,003 $715,995
======== ========
Note: The balance sheet at December 31, 2000, 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 Six Months Ended
June 30, June 30,
2001 2000 2001 2000
---- ---- ---- ----
(In thousands, except per share data)
Product sales $280,676 $226,359 $519,739 $422,117
Cost of goods sold,
including warehouse and
distribution expenses 162,749 129,098 299,275 240,150
-------- -------- -------- --------
Gross profit 117,927 97,261 220,464 181,967
Operating, selling, general
and administrative expenses 87,047 72,468 167,632 137,764
-------- -------- -------- --------
Operating income 30,880 24,793 52,832 44,203
Other expense, net (1,879) (1,634) (4,029) (2,454)
-------- -------- -------- --------
Income before income taxes 29,001 23,159 48,803 41,749
Provision for income taxes 11,015 8,800 18,500 15,829
-------- -------- -------- --------
Net income $ 17,986 $ 14,359 $ 30,303 $ 25,920
======== ======== ======== ========
Net income per
common share $ 0.35 $ 0.28 $ 0.59 $ 0.51
======== ======== ======== ========
Net income per common
share - assuming dilution $ 0.34 $ 0.28 $ 0.58 $ 0.50
======== ======== ======== ========
Weighted average common
shares outstanding 51,823 51,111 51,708 50,983
======== ======== ======== ========
Adjusted weighted average
common shares outstanding -
assuming dilution 52,427 51,548 52,237 51,405
======== ======== ======== ========
See notes to condensed consolidated financial statements.