O'Reilly Automotive Reports Third Quarter Operating Margin of 11.7% and Record Revenues and Earnings
SPRINGFIELD, Mo.--Oct. 23, 2001--O'Reilly Automotive, Inc. ("O'Reilly") today announced record revenues and earnings for the third quarter of 2001, representing 32 quarters of record revenues and earnings for O'Reilly since becoming a public company in April 1993.For the three months ended September 30, 2001, net income totaled $20.1 million, up 21.5% from $16.6 million for the same period a year ago. Earnings per common share (diluted) for the third quarter of 2001 increased 18.8% to $0.38 on 53.2 million shares versus $0.32 a year ago on 51.9 million shares. Product sales for the third quarter of 2001 totaled $294.0 million, up 16.9% from $251.4 million for the same period a year ago. Gross profit for the third quarter of 2001 increased to $125.5 million (or 42.7% of product sales) from $105.9 million (or 42.1% of product sales) for the third quarter of 2000, representing an increase of 18.5%.
Net income for the first nine months of 2001 totaled $50.4 million, up 18.7% from $42.5 million for the same period a year ago. Earnings per common share (diluted) for the first nine months of 2001 increased 17.1% to $0.96 on 52.6 million shares versus $0.82 for the same period a year ago on 51.6 million shares. Product sales for the first nine months of 2001 totaled $813.7 million, up 20.8% from $673.5 million in the first nine months of 2000. Gross profit for the first nine months of 2001 increased to $345.9 million (or 42.5% of product sales) from $287.8 million (or 42.7% of product sales) for the first nine months of 2000, representing an increase of 20.2%.
Comparable store sales for stores open at least one year increased 6.7% and 9.3% for the third quarter and first nine months of 2001, respectively. Comparable store product sales for only those stores open during both full periods being compared increased 6.0% and 8.9% for the third quarter and first nine 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 an operating margin of 11.7% and net margin of 6.9%. These results demonstrate the continued improvement in our company's operations and financial position."
Larry O'Reilly, co-chairman of the board and chief operating officer, stated, "We opened 32 new stores this quarter for a total of 92 so far this year. Our acquisition of Mid-State Automotive, Inc., which closed October 1, 2001, represents an exciting new growth area for our company. The 85 acquired stores plus the 120 new stores already planned for 2001 will result in over 200 new locations this year."
The company will host a conference call Wednesday, October 24, 2001, at 10:00 a.m. Central Time to discuss its results as well as future expectations. The call will be available by webcast at www.oreillyauto.com, www.vcall.com or www.streetevents.com. Investors may listen to the conference call live on the company Web site, www.oreillyauto.com, by clicking "Investor Information," then "Conference Calls." A replay will also be available on the Web site shortly after the call.
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 764 stores within the states of Arkansas, Illinois, Iowa, Kansas, Louisiana, Missouri, Nebraska, Oklahoma and Texas as of September 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, weather, terrorist activities, war and the threat of war. 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
September 30, December 31,
2001 2000
------------- ------------
(Unaudited) (Note)
In thousands
Assets
Current assets:
Cash $ 33,279 $ 9,204
Short-term investments 500 500
Accounts receivable, net 39,109 32,673
Amounts receivable from vendors 17,196 29,175
Inventory 395,694 372,069
Refundable income taxes 10 92
Deferred income taxes 204 1,402
Other current assets 1,301 4,089
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Total current assets 487,293 449,204
Property and equipment, at cost 365,038 323,021
Accumulated depreciation and amortization 96,357 76,167
------- -------
Net property and equipment 268,681 246,854
Notes receivable 2,311 2,836
Other assets 14,135 17,101
------- -------
Total assets $772,420 $715,995
======= =======
Liabilities and shareholders' equity
Current liabilities:
Note payable to bank $ -- $ 35,000
Income taxes payable 15,529 1,011
Accounts payable 49,996 68,947
Accrued payroll 10,106 9,309
Accrued benefits & withholdings 13,843 9,360
Other current liabilities 17,540 15,184
Current deferred income taxes 619 --
Current portion of long-term debt 15,241 14,121
------- -------
Total current liabilities 122,874 152,932
Long-term debt, less current portion 104,309 90,463
Deferred income taxes 6,936 4,086
Other liabilities 4,636 4,783
Shareholders' equity:
Common stock, $0.01 par value:
Authorized shares -- 90,000,000
Issued and outstanding shares --
52,552,813 at September 30, 2001,
and 51,544,879 at December 31, 2000 526 515
Additional paid-in capital 250,079 230,600
Retained earnings 283,060 232,616
------- -------
Total shareholders' equity 533,665 463,731
------- -------
Total liabilities and shareholders'
equity $772,420 $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 Nine Months Ended
September 30, September 30,
------------------ -----------------
2001 2000 2001 2000
---- ---- ---- ----
(In thousands, except per share data)
Product sales $293,996 $251,413 $813,735 $673,530
Cost of goods sold, including
warehouse and distribution
expenses 168,520 145,550 467,795 385,700
------- ------- ------- -------
Gross profit 125,476 105,863 345,940 287,830
Operating, selling, general
and administrative expenses 91,219 77,058 258,851 214,822
------- ------- ------- -------
Operating income 34,257 28,805 87,089 73,008
Other expense, net (1,867) (2,076) (5,895) (4,530)
------- ------- ------- -------
Income before income taxes 32,390 26,729 81,194 68,478
Provision for income taxes 12,250 10,157 30,750 25,986
------- ------- ------- -------
Net income $ 20,140 $ 16,572 $ 50,444 $ 42,492
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Net income per common share $ 0.38 $ 0.32 $ 0.97 $ 0.83
======= ======= ======= =======
Net income per common share --
assuming dilution $ 0.38 $ 0.32 $ 0.96 $ 0.82
======= ======= ======= =======
Weighted average common
shares outstanding 52,404 51,301 51,942 51,085
======= ======= ======= =======
Adjusted weighted average
common shares outstanding --
assuming dilution 53,205 51,856 52,563 51,551
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