O'Reilly Auto Parts Stores Earnings;
SPRINGFIELD, Mo.--Feb. 26, 2002--O'Reilly Automotive, Inc. ("O'Reilly") today announced record revenues and earnings for the fourth quarter and year ended 2001.This represents the ninth consecutive year of record revenues and earnings for O'Reilly since becoming a public company in April 1993.
For the three months ended December 31, 2001, net income totaled $15.9 million, up 72.7% from $9.2 million for the same period a year ago. Earnings per common share (diluted) for the fourth quarter of 2001 increased 66.7% to $0.30 on 53.4 million shares versus $0.18 for the same period a year ago on 52.3 million shares. Product sales for the fourth quarter of 2001 totaled $278.4 million, up 28.4% from $216.9 million for the same period a year ago. Gross profit for the fourth quarter of 2001 increased to $122.3 million (or 43.9% of product sales) from $94.9 million (or 43.7% of product sales) for the fourth quarter of 2000, representing an increase of 28.9%.
Net income for the year ended December 31, 2001, totaled $66.4 million, up 28.3% from $51.7 million for the same period a year ago. Earnings per common share (diluted) for the year ended December 31, 2001, increased 26.0% to $1.26 on 52.8 million shares versus $1.00 for the same period a year ago on 51.7 million shares. Product sales for the year ended December 31, 2001, totaled $1.09 billion, up 22.7% from $890.4 million for the year ended December 31, 2000. Gross profit for the year increased to $467.8 million (or 42.8% of product sales) from $382.7 million (or 43.0% of product sales) for the prior year, representing an increase of 22.2%.
Comparable store product sales for stores open at least one year increased 7.2% and 8.8% for the fourth quarter and year ended December 31, 2001, respectively. Comparable store product sales for only those stores open during both full periods being compared increased 6.3% and 8.2% for the fourth quarter and year ended 2001, respectively.
David O'Reilly, co-chairman of the board and chief executive officer, stated: "Team O'Reilly has produced another record year highlighted by a 26.0% increase in diluted earnings per common share, an operating margin of 10.4% and a net margin of 6.1%. We are pleased with these results and look forward to the opportunities that 2002 will bring, including our plans for 100 new stores."
Larry O'Reilly, co-chairman of the board and chief operating officer, stated: "Finishing the year with 203 new stores, including our Mid-State Automotive, Inc. acquisition, is a tremendous accomplishment for Team O'Reilly. We expanded our presence to seven new contiguous states and added over 1,800 new team members, including the experienced professional parts people of Mid-State."
The company will host a conference call Wednesday, February 27, 2002, 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 875 stores within the states of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, Oklahoma, Tennessee and Texas as of December 31, 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
December 31, December 31,
2001 2000
------------ ------------
(Unaudited) (Note)
In thousands
Assets
Current assets:
Cash $ 15,041 $ 9,204
Short-term investments 500 500
Accounts receivable, net 41,486 32,673
Amounts receivable from vendors 40,242 29,175
Inventory 447,793 372,069
Refundable income taxes 168 92
Deferred income taxes 3,908 1,402
Other current assets 3,327 4,089
------- -------
Total current assets 552,465 449,204
Property and equipment, at cost 392,365 323,021
Accumulated depreciation and
amortization 103,361 76,167
------- -------
Net property and equipment 289,004 246,854
Notes receivable 2,557 2,836
Other assets 12,833 17,101
------- -------
Total assets $856,859 $715,995
======= =======
Liabilities and shareholders' equity
Current liabilities:
Note payable to bank $ 5,000 $ 35,000
Income taxes payable -- 1,011
Accounts payable 61,875 68,947
Accrued payroll 12,866 9,309
Accrued benefits & withholdings 14,038 9,360
Other current liabilities 15,514 15,184
Current portion of long-term
debt 11,843 14,121
------- -------
Total current liabilities 121,136 152,932
Long-term debt, less current
portion 165,618 90,463
Deferred income taxes 9,141 4,086
Other liabilities 4,673 4,783
Shareholders' equity:
Common stock, $0.01 par value:
Authorized shares -- 90,000,000
Issued and outstanding
shares -- 52,850,713 at
December 31, 2001, and
51,544,879 at
December 31, 2000 529 515
Additional paid-in capital 256,794 230,600
Retained earnings 298,968 232,616
------- -------
Total shareholders' equity 556,291 463,731
------- -------
Total liabilities and
shareholders' equity $856,859 $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 Year Ended
December 31, December 31,
------------------ ------------
2001 2000 2001 2000
---- ---- ---- ----
(In thousands, except per-share data)
Product sales $ 278,377 $ 216,891 $1,092,112 $ 890,421
Cost of goods sold,
including warehouse
and distribution
expenses 156,061 122,026 624,294 507,720
--------- --------- --------- ---------
Gross profit 122,316 94,865 467,818 382,701
Operating, selling,
general and adminis-
trative expenses 95,117 77,920 353,987 292,672
--------- --------- --------- ---------
Operating income 27,199 16,945 113,831 90,029
Other expense, net (1,743) (2,340) (7,104) (6,870)
--------- --------- --------- ---------
Income before income
taxes 25,456 14,605 106,727 83,159
Provision for income
taxes 9,549 5,395 40,375 31,451
--------- --------- --------- ---------
Net income $ 15,907 $ 9,210 $ 66,352 $ 51,708
========= ========= ========= =========
Net income per
common share $ 0.30 $ 0.18 $ 1.27 $ 1.01
========= ========= ========= =========
Net income per common
share -- assuming
dilution $ 0.30 $ 0.18 $ 1.26 $ 1.00
========= ========= ========= =========
Weighted average
common shares
outstanding 52,652 51,417 52,121 51,168
========= ========= ========= =========
Adjusted weighted
average common shares
outstanding --
assuming dilution 53,449 52,257 52,786 51,728
========= ========= ========= =========