O'Reilly Automotive Announces Record Second Quarter Sales and Earnings
27 July 1999
O'Reilly Automotive Announces Record Second Quarter Sales and Earnings
SPRINGFIELD, Mo.--July 27, 1999--O'Reilly Automotive, Inc. ("O'Reilly") today announced record revenues and earnings for the second quarter and first half of 1999. This represents the 22nd consecutive quarter of record revenues and earnings for O'Reilly since becoming a public company in April, 1993.For the three months ended June 30, 1999, net income totaled $11.8 million, up 53.4% from $7.7 million for the same period a year ago. Earnings per common share (diluted) for the quarter increased 31.4% to $0.46 on 25.5 million shares versus $0.35 a year ago on 21.7 million shares. Product sales for the second quarter totaled $196.1 million, up 18.7% from $165.2 million for the same period in the previous year. Gross profit for the second quarter of 1999 increased to $81.8 million (or 41.7% of product sales) from $66.2 million (or 40.1% of product sales) for the second quarter of the prior year, representing an increase of 23.6%.
Net income for the first six months of 1999 totaled $20.4 million, up 51.0% from $13.5 for the same period a year ago. Earnings per common share (diluted) for the first half of 1999 increased 38.7% to $0.86 on 23.7 million shares versus $0.62 on 21.7 million shares. Product sales for the first half of 1999 totaled $362.5 million, up 27.9% from $283.5 in the previous year. Gross profit for the first half of 1999 increased to $152.8 million (or 42.1% of product sales) from $116.9 million (or 41.2% of product sales) for the first half of the prior year, representing an increase of 30.7%.
Comparable store product sales for the O'Reilly stores for the second quarter of 1999 and the first half of 1999 increased 4.3% and 7.3%, respectively. The Hi/LO stores comparable store product sales increased by 16.9% and 19.6% for the second quarter of 1999 and first half of 1999, respectively. This resulted in a total comparable store product sales increase of 9.3% for the three months ended June 30, 1999 and 12.2% for the first half of 1999. 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.
David O'Reilly, President and Chief Executive Officer, stated: "We have opened twenty-four net new stores during the first half of 1999. We plan to open an additional 56 stores in 1999 and approximately 100 new stores in 2000. Our fifth distribution center located in Des Moines, Iowa, was also opened on April 19, 1999."
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 operates 515 stores within the states of Texas, Missouri, Oklahoma, Kansas, Iowa, Arkansas, Louisiana, Nebraska and Illinois as of June 30, 1999.
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 Company 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. We assume no obligation to update these forward-looking statements.
O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
1999 1998
------- -------
(Unaudited) (Note)
In thousands, except share data
Assets
Current assets:
Cash $ 4,114 $ 1,728
Short-term investments 500 500
Accounts receivable, net 32,282 27,580
Amounts receivable from vendors 19,605 26,660
Inventory 285,431 246,012
Refundable income taxes 3,480 3,026
Deferred income taxes 2,757 2,838
Other current assets 3,362 2,538
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Total current assets 351,531 310,882
Property and equipment 239,014 210,207
Accumulated depreciation 47,035 39,256
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191,979 170,951
Other assets 13,811 11,455
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Total assets $557,321 $493,288
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Liabilities and shareholders' equity
Current liabilities:
Note payable to bank $ 2,240 $ 5,000
Accounts payable 82,343 66,737
Other current liabilities 33,459 22,091
Current portion of long-term debt 11,571 8,691
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Total current liabilities 129,613 102,519
Long-term debt, less current portion 51,707 170,166
Other liabilities 638 2,209
Shareholders' equity:
Common stock, $.01 par value:
Authorized shares - 90,000,000
Issued and outstanding shares -
25,339,322 at June 30, 1999
And 21,349,700 at
December 31, 1998 253 213
Additional paid-in capital 219,215 82,658
Retained earnings 155,895 135,523
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Total shareholders' equity 375,363 218,394
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Total liabilities and
shareholders' equity $557,321 $493,288
------- -------
------- -------
Note: The balance sheet at December 31, 1998 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,
1999 1998 1999 1998
---- ---- ---- ----
In thousands, except per share data
Product sales $196,107 $165,242 $362,511 $283,511
-------- -------- -------- --------
Cost of goods sold,
including warehouse
and distribution
expenses 114,284 99,041 209,731 166,641
Operating, selling, general
and administrative
expenses 62,193 52,456 116,909 92,289
-------- -------- -------- --------
176,477 151,497 326,640 258,930
-------- -------- -------- --------
Operating income 19,630 13,745 35,871 24,581
Other expense, net (557) (1,370) (2,853) (2,815)
-------- -------- -------- --------
Income before income taxes 19,073 12,375 33,018 21,766
Provision for income taxes 7,304 4,703 12,646 8,275
-------- -------- -------- --------
Net income $ 11,769 $ 7,672 $20,372 $ 13,491
-------- -------- -------- --------
-------- -------- -------- --------
Net income per common share $ 0.47 $ 0.36 $ 0.87 $ 0.64
-------- -------- -------- --------
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Net income per common share
- assuming dilution $ 0.46 $ 0.35 $ 0.86 $ 0.62
-------- -------- -------- --------
-------- -------- -------- --------
Weighted average common
shares outstanding 25,212 21,226 23,297 21,186
-------- -------- -------- --------
-------- -------- -------- --------
Adjusted weighted average
common shares outstanding
- assuming dilution 25,542 21,735 23,709 21,654
-------- -------- -------- --------
-------- -------- -------- --------