O'Reilly Automotive Earnings Grow 25.4% for Second Quarter
SPRINGFIELD, Mo.--July 23, 2002--O'Reilly Automotive, Inc. ("O'Reilly" or "the Company") today announced record revenues and earnings for the second quarter of 2002, representing 35 quarters of record revenues and earnings for O'Reilly since becoming a public company in April 1993.Net income for the second quarter ended June 30, 2002, totaled $22.5 million, up 25.4% from $18.0 million for the same period in 2001. Diluted earnings per share for the second quarter of 2002 increased 23.5% to $0.42 on 53.7 million shares compared to $0.34 for the second quarter of 2001 on 52.4 million shares. Product sales for the three months ended June 30, 2002, totaled $343.2 million, up 22.3% from $280.7 million for the same period a year ago. Gross profit for the second quarter of 2002 increased to $144.2 million (or 42.0% of product sales) from $117.8 million (or 42.0% of product sales) for the second quarter of 2001, representing an increase of 22.4%.
Net income for the first six months of 2002 totaled $39.2 million, up 29.3% from $30.3 million for the same period a year ago. Diluted earnings per common share for the first six months of 2002 increased 25.9% to $0.73 on 53.7 million shares versus $0.58 a year ago on 52.2 million shares. Product sales for the first six months of 2002 totaled $638.7 million, up 22.9% from $519.7 million in the first six months of the previous year. Gross profit for the first six months of 2002 increased to $270.2 million (or 42.3% of product sales) from $220.2 million (or 42.4% of product sales) for the first six months of the prior year, representing an increase of 22.7%.
Comparable store product sales for stores open at least one year increased 2.9% and 3.2% for the second quarter and first six months of 2002, respectively.
"I am pleased to announce another record performance by Team O'Reilly," said David O'Reilly, co-chairman and chief executive officer. "Achieving comparable store sales of 2.9% on top of the 14.4% comps for the second quarter of 2001 is a real accomplishment. These results demonstrate our team's commitment to grow the company in a profitable manner. As we look forward, we continue to be excited about the opportunities of our business, the industry dynamics and our goal of reaching $2 billion in sales per year by 2005."
The Company will host a conference call Wednesday, July 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 929 stores within the states of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, Oklahoma, Tennessee and Texas as of June 30, 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 based on estimates, projections, beliefs and assumptions and are not guarantees of future events and results. Such 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, risks associated with the integration of acquired businesses, 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
June 30, December 31,
2002 2001
------------ ------------
(Unaudited) (Note)
In thousands
Assets
Current assets:
Cash $ 27,352 $ 15,041
Short-term investments 500 500
Accounts receivable, net 52,777 41,486
Amounts receivable from vendors 42,990 38,440
Inventory 479,546 447,793
Refundable income taxes 7 168
Deferred income taxes 1,303 3,908
Other current assets 3,745 3,327
----------- -----------
Total current assets 608,220 550,663
Property and equipment, at cost 436,569 392,365
Accumulated depreciation and amortization 119,692 103,361
----------- -----------
Net property and equipment 316,877 289,004
Notes receivable 2,065 2,557
Other assets 17,283 14,635
----------- -----------
Total assets $ 944,445 $ 856,859
=========== ===========
Liabilities and shareholders' equity
Current liabilities:
Note payable to bank $ -- $ 5,000
Income taxes payable 11,470 --
Accounts payable 84,305 61,875
Accrued payroll 13,430 12,866
Accrued benefits and withholdings 19,567 14,038
Other current liabilities 22,730 15,514
Current portion of long-term debt 4,515 11,843
----------- -----------
Total current liabilities 156,017 121,136
Long-term debt, less current portion 170,560 165,618
Deferred income taxes 9,789 9,141
Other liabilities 5,293 4,673
Shareholders' equity:
Common stock, $0.01 par value:
Authorized shares -- 90,000,000
Issued and outstanding shares --
53,139,484 at June 30, 2002, and
52,850,713 at December 31, 2001 531 528
Additional paid-in capital 264,098 256,795
Retained earnings 338,157 298,968
----------- -----------
Total shareholders' equity 602,786 556,291
----------- -----------
Total liabilities and shareholders' equity $ 944,445 $ 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 Six Months Ended
June 30, June 30,
-------------------- ---------------------
2002 2001 2002 2001
---------- --------- ----------- ---------
(In thousands, except per-share data)
Product sales $ 343,181 $ 280,676 $ 638,670 $ 519,739
Cost of goods sold, including
warehouse and distribution
expenses 198,995 162,887 368,456 299,524
---------- --------- ---------- ---------
Gross profit 144,186 117,789 270,214 220,215
Operating, selling, general
and administrative expenses 106,417 87,031 203,807 167,725
---------- --------- ---------- ---------
Operating income 37,769 30,758 66,407 52,490
Other expense, net (1,527) (1,756) (3,398) (3,598)
---------- --------- ---------- ---------
Income before income taxes 36,242 29,002 63,009 48,892
Provision for income taxes 13,695 11,015 23,820 18,588
---------- --------- ---------- ---------
Net income $ 22,547 $ 17,987 $ 39,189 $ 30,304
========== ========= ========== =========
Net income per common share $ 0.43 $ 0.35 $ 0.74 $ 0.59
========== ========= ========== =========
Net income per common share
-- assuming dilution $ 0.42 $ 0.34 $ 0.73 $ 0.58
========== ========= ========== =========
Weighted average common
shares outstanding 53,058 51,823 52,971 51,708
========== ========= ========== =========
Adjusted weighted average
common shares outstanding
-- assuming dilution 53,698 52,427 53,653 52,237
========== ========= ========== =========
O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(Unaudited)
Three Months Ended
June 30,
-------------------------
2002 2001
---------- -----------
Inventory turnover (a) 1.58 1.56
Inventory turnover, net of payables (b) 1.92 1.93
AP to Inventory 17.6% 18.1%
Debt-to-capital 22.5% 20.1%
Return on equity 13.6% 11.9%
Return on assets 8.8% 7.8%
Total employment 14,030 11,895
Miscellaneous (in thousands):
Capital Expenditures $ 23,916 $ 16,628
Depreciation & Amortization $ 8,946 $ 7,803
Interest Expense $ 2,113 $ 2,284
Lease & Rental Expense $ 6,783 $ 6,500
Store count:
New stores, net 30 30
Total stores 929 732
Square footage (in thousands):
O'Reilly 5,477 4,901
Mid-State 560 --
----------- -----------
Totals 6,304 4,901
Sales per weighted average square foot:
O'Reilly $ 56.90 $ 59.21
Mid-State 36.95 --
----------- -----------
Totals $ 55.07 $ 59.21
Sales per weighted average store (in thousands):
O'Reilly $ 384 $ 395
Mid-State 241 --
----------- -----------
Totals $ 371 $ 395
(a) Inventory turnover is calculated as cost of sales for the last 12
months divided by the average of beginning and ending inventory.
(b) Inventory turnover, net of payables is calculated as cost of
sales divided by the average of beginning and ending inventory
less accounts payable.