O'Reilly Automotive Announces Record Q2 Sales and Earnings
29 July 1998
O'Reilly Automotive Announces Record Second Quarter Sales and Earnings
SPRINGFIELD, Mo.--July 28, 1998--O'Reilly Automotive, Inc. ("O'Reilly") today announced record revenues and earnings for the second quarter and first half of 1998.
This represents the 21st consecutive quarter of record revenues and earnings for O'Reilly since becoming a public company in April 1993. Included in the first half of 1998 are five months of operations from Hi-Lo Automotive, Inc. (Hi/LO), which was acquired by O'Reilly effective Jan. 31, 1998.
For the three months ended June 30, 1998, net income totaled $7.7 million, up 26.1% from $6.1 million a year ago. Earnings per common share (diluted) for the quarter increased 20.7% to $.35 on 21.7 million shares versus $.29 a year ago on 21.2 million shares. Product sales for the second quarter increased to $165.2 million from $82.4 million for the same period in the prior year, representing an increase of 100.4%.
Gross profit for the second quarter of 1998 increased to $66.2 million (or 40.1% of product sales) from $34.7 million (or 42.1% of product sales) for the second quarter of 1997, representing an increase of 90.7%.
Net income for the first six months of 1998 totaled $13.5 million, up 21.8% from $11.1 million for the same period a year ago. Earnings per common share (diluted) for the first half of 1998 increased 19.2% to $.62 on 21.7 million shares versus $.52 a year ago on 21.2 million shares.
Product sales for the first half of 1998 totaled $283.5 million, up 87.9% from $150.9 million in the previous year. Gross profit for the first half of 1998 increased to $116.9 million (or 41.2% of product sales) from $63.9 million (or 42.3% or product sales) for the first half of the prior year, representing an increase of 82.9%.
Comparable store product sales for the O'Reilly stores for the second quarter of 1998 and the first half of 1998 increased by 8.6% and 6.1%, respectively. The Hi/LO stores comparable store product sales increased by 2.9% and 1.7% for the second quarter of 1998 and first half of 1998, respectively.
This resulted in a total comparable store product sales increase of 6.0% for the three months ended June 30, 1998 and 4.1% for the first half of 1998. Comparable store product sales are calculated based on the change in product sales of only those O'Reilly and Hi/LO stores open during both full periods being compared.
"We are pleased to report that the Hi/LO stores achieved a 2.9% comparable store sales increase in the second quarter of 1998. Along with the increase of 8.6% at the O'Reilly stores, we achieved a solid total comparable store sales increase of 6.0% for the second quarter of 1998," stated David O'Reilly, president and chief executive officer.
In addition to the acquisition of the Hi/LO stores, O'Reilly opened 21 new stores in the first half of 1998, which includes 10 new stores in the three months ended June 30, 1998. O'Reilly plans to open an additional 29 stores in 1998 and 80 stores in 1999. The Oklahoma City distribution center expansion is now complete and, in early 1999, O'Reilly will open its fifth distribution center in Des Moines, Iowa.
O'Reilly Automotive is a specialty retailer and supplier of automotive aftermarket parts, tools, supplies, equipment and accessories to both do-it-yourself customers and professional mechanics and service technicians. Founded in 1957 by the O'Reilly family, the company currently operates 462 stores within the states of Missouri, Nebraska, Iowa, Kansas, Oklahoma, Arkansas, Illinois, Texas and Louisiana as of June 30, 1998.
Statements contained in this press release which are not historical facts are forward-looking statements. Such forward-looking statements are necessary estimates reflecting the best judgment of the party making such statements based upon current information and involve a number of risks and uncertainties. Forward-looking statements contained in this press release or in other public statements of the parties should be considered in light of those factors. There can be no assurance that such factors will not affect the accuracy of such forward-looking statements.
O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, Dec. 31,
1998 1997
(Unaudited) (Note)
(In thousands)
Assets
Current assets
Cash $1,416 $2,285
Short-term investments 1,000 1,000
Accounts receivable 25,554 12,469
Inventory 213,922 111,848
Deferred income taxes 2,020 1,424
Other current assets 12,946 5,114
Total current assets 256,858 134,140
Property and equipment, at cost 225,413 137,533
Accumulated depreciation and amortization 74,673 29,093
------- -------
150,740 108,440
Other assets 13,947 5,037
Total assets $421,545 $247,617
Liabilities and stockholders' equity
Current liabilities
Accounts payable $44,758 $29,713
Income taxes payable 2,955 2,501
Other current liabilities 25,769 8,033
Current portion of long-term debt 6,966 130
Total current liabilities 80,448 40,377
Long-term debt, less current portion 130,754 22,641
Other liabilities 12,671 2,560
Stockholders' equity
Common stock, $.01 par value:
Authorized shares-30,000,000
Issued and outstanding shares-21,199,313 in 1998
and 21,125,493 in 1997 212 211
Additional paid-in capital 79,218 77,077
Retained earnings 118,242 104,751
Total stockholders' equity 197,672 182,039
Total liabilities and stockholders' equity $421,545 $247,617
NOTE: The balance sheet at December 31, 1997 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,
1998 1997 1998 1997
(in thousands, except per share data)
Product sales $165,242 $82,448 $283,511 $150,920
Cost of goods sold,
including warehouse and
distribution expenses 99,041 47,733 166,641 87,014
Operating, selling, general
and administrative expenses 52,456 25,222 92,289 46,485
------- ------ ------- -------
151,497 72,955 258,930 133,499
Operating income 13,745 9,493 24,581 17,421
Other income, net (1,370) 191 (2,804) 237
Income before income taxes 12,375 9,684 21,777 17,658
Provision for income taxes 4,703 3,602 8,275 6,569
Net income $ 7,672 $ 6,082 $ 13,502 $ 11,089
Net income per share $ 0.36 $ 0.29 $ 0.64 $ 0.53
Net income per share -
assuming dilution $ 0.35 $ 0.29 $ 0.62 $ 0.52
Weighted average common
shares outstanding 21,226 21,022 21,186 20,988
Diluted weighted average
common shares outstanding 21,735 21,210 21,654 21,152