O'Reilly Automotive Reports Comparable Store Sales of 6.2% and Record First Quarter Sales and Earnings
SPRINGFIELD, Mo.--April 22, 2003--O'Reilly Automotive, Inc. ("O'Reilly" or "the Company") today announced record revenues and earnings for the first quarter of 2003, representing 38 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, 2003, totaled $19.7 million, up 18.5% from $16.6 million for the same period in 2002. Diluted earnings per common share for the first quarter of 2003 increased 19.4% to $0.37 on 53.8 million shares compared to $0.31 for the first quarter of 2002 on 53.6 million shares. Product sales for the three months ended March 31, 2003, totaled $339.5 million, up 14.9% from $295.5 million for the same period a year ago. Gross profit for the first quarter of 2003 increased to $140.9 million (or 41.5% of product sales) from $126.0 million (or 42.7% of product sales) for the first quarter of 2002, representing an increase of 11.8%. Operating, Selling, General and Administrative ("OSG&A") expenses increased to $107.6 million (or 31.7% of product sales) for the first quarter 2003 from $97.4 million (or 33.0% of product sales) for the first quarter 2002.
Comparable store product sales for stores open at least one year increased 6.2% and 3.6% for the first quarter of 2003 and 2002, respectively.
David O'Reilly, co-chairman and chief executive officer, stated: "We are pleased with the 6.2% comparable store sales and the financial results for the quarter despite the uncertainties in the economy. Our company-wide cost control initiatives resulted in a 130 basis point drop in OSG&A expenses as a percent of product sales for the first quarter 2003 compared to 2002. Additionally, we generated $25.2 million in free cash (cash provided by operating activities less capital expeditures) flow in the first quarter of 2003."
Ted Wise, co-president, stated: "We opened 30 new stores and completed five relocations and four renovations this quarter. We expect to open a total of 130 new stores this year, approximately 60-70% of which will be in our southeastern markets."
The Company will host a conference call Wednesday, April 23, 2003, 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 1,011 stores within the states of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, Tennessee and Texas as of March 31, 2003.
O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2003 2002
------------- -------------
(Unaudited) (Note)
In thousands
Assets
Current assets:
Cash $19,744 $29,333
Accounts receivable, net 51,644 45,421
Amounts receivable from vendors 47,684 42,918
Inventory 502,506 504,098
Deferred income taxes -- 5,040
Other current assets 5,014 4,235
------------- -------------
Total current assets 626,592 631,045
Property and equipment, at cost 523,440 491,523
Accumulated depreciation and amortization 147,788 137,922
------------- -------------
Net property and equipment 375,652 353,601
Notes receivable 1,861 1,880
Other assets 24,558 22,893
------------- -------------
Total assets $1,028,663 $1,009,419
============= =============
Liabilities and shareholders' equity
Current liabilities:
Income taxes payable $10,998 $9,798
Accounts payable 112,552 85,370
Accrued payroll 13,142 15,257
Accrued benefits and withholdings 18,954 19,165
Current deferred income taxes 554 --
Other current liabilities 18,869 17,150
Current portion of long-term debt 578 682
------------- -------------
Total current liabilities 175,647 147,422
Long-term debt, less current portion 155,371 190,470
Deferred income taxes 17,348 15,939
Other liabilities 7,187 5,064
Shareholders' equity:
Common stock, $0.01 par value:
Authorized shares - 90,000,000
Issued and outstanding shares -
53,494,797 at March 31, 2003,
and 53,371,242 at December 31,
2002 535 534
Additional paid-in capital 271,887 269,030
Retained earnings 400,688 380,960
Total shareholders' equity ------------- ------------
Total liabilities and shareholders' equity 673,110 650,524
------------- ------------
$1,028,663 $1,009,419
============= ============
Note: The balance sheet at December 31, 2002, 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,
2003 2002
---- ----
(Numbers in thousands,
except per share data)
Product sales $ 339,475 $ 295,489
Cost of goods sold, including warehouse
and distribution expenses 198,529 169,461
--------- ---------
Gross profit 140,946 126,028
Operating, selling, general and
administrative expenses 107,605 97,390
--------- ---------
Operating income 33,341 28,638
Other expense, net (1,763) (1,871)
--------- ---------
Income before income taxes 31,578 26,767
Provision for income taxes 11,850 10,125
--------- ---------
Net income $ 19,728 $ 16,642
========= =========
Net income per common share $ 0.37 $ 0.31
========= =========
Net income per common share -
assuming dilution $ 0.37 $ 0.31
========= =========
Weighted average common shares outstanding 53,402 52,884
========= =========
Adjusted weighted average common shares
outstanding - assuming dilution 53,753 53,607
========= =========
O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(Unaudited)
Three Months Ended
March 31,
2003 2002
---- ----
Inventory turnover (1) 1.6 1.6
Inventory turnover, net of payables (2) 2.0 1.9
AP to Inventory 22.4% 15.7%
Debt-to-capital 18.8% 23.8%
Return on equity 13.6% 13.4%
Return on assets 8.9% 8.7%
Total employment 14,563 13,251
Miscellaneous (in thousands):
Capital Expenditures $ 32,189 $ 21,428
Depreciation & Amortization $ 10,381 $ 8,484
Interest Expense $ 2,287 $ 2,437
Lease & Rental Expense $ 8,367 $ 8,305
Store count:
New stores, net 30 24
Total stores 1,011 899
Square footage (in thousands) 6,835 6,046
Sales per weighted average square foot $ 48.78 $ 48.07
Sales per weighted average
store (in thousands) $ 329 $ 323
(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.