O'Reilly Automotive Reports Record Sales and Earnings
SPRINGFIELD, Mo.--April 23, 2002--O'Reilly Automotive, Inc. ("O'Reilly") today announced record revenues and earnings for the first quarter of 2002, representing 34 quarters of record revenues and earnings for O'Reilly since becoming a public company in April 1993.Net income for the first quarter ended March 31, 2002, totaled $16.6 million, up 35.1% from $12.3 million for the same period in 2001. Diluted earnings per share for the first three months of 2002 increased 29.2% to $0.31 on 53.6 million shares compared to $0.24 for the same period in 2001 on 52.0 million shares. Product sales for the first three months of 2002 totaled $295.5 million, up 23.6% from $239.1 million for the same period a year ago. Gross profit for the first quarter of 2002 increased to $126.0 million (or 42.7% of product sales) from $102.5 million (or 42.9% of product sales) for the first quarter of 2001, representing an increase of 22.9%.
Comparable store product sales for stores open at least one year increased 3.6% for the first three months of 2002, representing 36 quarters of positive comparable store product sales increases for O'Reilly since becoming a public company in April 1993.
"This was another very successful quarter for our company," said David O'Reilly, O'Reilly's co-chairman and chief executive officer. "Team O'Reilly continues to create value for shareholders by remaining focused on our strategy of consistent, controlled and most importantly, profitable growth. We continued to make good progress on the conversion of Mid-State stores to O'Reilly stores and our global inventory system."
The company will host a conference call Wednesday, April 24, 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 899 stores within the states of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, Oklahoma, Tennessee and Texas as of March 31, 2002.
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, 2001, for more details.
O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2002 2001
------------- ------------
(Unaudited) (Note)
In thousands
Assets
Current assets:
Cash $ 20,391 $ 15,041
Short-term investments 500 500
Accounts receivable, net 46,244 41,486
Amounts receivable from vendors 39,906 38,440
Inventory 462,061 447,793
Refundable income taxes 7 168
Deferred income taxes -- 3,908
Other current assets 4,422 3,327
---------- ----------
Total current assets 573,531 550,663
Property and equipment, at cost 413,249 392,365
Accumulated depreciation and amortization 111,226 103,361
---------- ----------
Net property and equipment 302,023 289,004
Notes receivable 2,227 2,557
Other assets 17,002 14,635
---------- ----------
Total assets $ 894,783 $ 856,859
========== ==========
Liabilities and shareholders' equity
Current liabilities:
Note payable to bank $ 3,000 $ 5,000
Income taxes payable 4,497 --
Accounts payable 72,351 61,875
Accrued payroll 11,178 12,866
Accrued benefits and withholdings 16,878 14,038
Current deferred income taxes 1,353 --
Other current liabilities 21,101 15,514
Current portion of long-term debt 8,069 11,843
---------- ----------
Total current liabilities 138,427 121,136
Long-term debt, less current portion 168,145 165,618
Deferred income taxes 8,578 9,141
Other liabilities 4,609 4,673
Shareholders' equity:
Common stock, $0.01 par value:
Authorized shares -- 90,000,000
Issued and outstanding shares --
52,931,556 at March 31, 2002,
and 52,850,713 at December 31, 2001 529 528
Additional paid-in capital 258,885 256,795
Retained earnings 315,610 298,968
---------- ----------
Total shareholders' equity 575,024 556,291
---------- ----------
Total liabilities and shareholders' equity $ 894,783 $ 856,859
========== ==========
Note: The balance sheet at December 31, 2001, 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
March 31,
-----------------------
2002 2001
---------- ----------
(Numbers in thousands,
except per-share data)
Product sales $ 295,489 $ 239,063
Cost of goods sold, including warehouse
and distribution expenses 169,461 136,526
---------- ----------
Gross profit 126,028 102,537
Operating, selling, general and
administrative expenses 97,390 80,585
---------- ----------
Operating income 28,638 21,952
Other expense, net (1,871) (2,150)
---------- ----------
Income before income taxes 26,767 19,802
Provision for income taxes 10,125 7,485
--------- ----------
Net income $ 16,642 $ 12,317
========== ==========
Net income per common share $ 0.31 $ 0.24
========== ==========
Net income per common share -- assuming
dilution $ 0.31 $ 0.24
========== ==========
Weighted average common shares outstanding 52,884 51,591
========== ==========
Adjusted weighted average common shares
outstanding -- assuming dilution 53,607 52,047
========== ==========
O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(Unaudited)
Three Months Ended
March 31,
-----------------------
2002 2001
---------- ----------
Inventory turnover (1) 1.55 1.54
Inventory turnover, net of payables (2) 1.85 1.88
AP to Inventory 15.7% 16.4%
Debt-to-capital 23.8% 21.4%
Return on equity 13.4% 11.7%
Return on assets 8.7% 7.7%
Total employment 13,251 11,315
Store count:
New stores, net 24 30
Total stores 899 702
Square footage (in thousands):
O'Reilly 5,486 4,698
Mid-State 560 --
---------- ----------
Totals 6,046 4,698
Annualized sales per weighted average square foot:
O'Reilly $ 199 $ 205
Mid-State 120 --
---------- ----------
Totals $ 192 $ 205
Annualized sales per weighted average store (in thousands):
O'Reilly $ 1,346 $ 1,369
Mid-State 770 --
---------- ----------
Totals $ 1,291 $ 1,369
(1) Inventory turnover is calculated as cost of sales for the last 12
months divided by the average of beginning and ending inventory.
(2) Inventory turnover, net of payables is calculated as cost of
sales divided by the average of beginning and ending inventory
less accounts payable.