O'Reilly Automotive Announces Record Increase in 1999 Net Income
29 February 2000
O'Reilly Automotive Announces Record 48.3% Increase in 1999 Net Income
Business Editors
SPRINGFIELD, Mo.--Feb. 29, 2000-- O'Reilly
Automotive, Inc. ("O'Reilly") today announced
record revenues and earnings for the year ended December 31, 1999.
This represents the seventh consecutive year of record revenues
and earnings for O'Reilly since becoming a public company in April,
1993.
Net income for the year ended December 31, 1999, totaled $45.6
million, up 48.3% from $30.8 million a year ago. Basic earnings per
share ("EPS") for the year increased 30.6% to $0.94 on 48.7 million
common shares compared to $0.72 on 42.5 million common shares for the
prior year. Diluted EPS for the year ended December 31, 1999, were
$0.92 on 49.7 million common shares, a 29.6% increase from prior year
diluted EPS of $0.71 on 43.2 million common shares.
Net income for the fourth quarter ended December 31, 1999, was
$11.9 million, up 32.9% from $8.9 million for the same period in 1998.
Basic EPS for fourth quarter 1999 increased 9.5% to $0.23 on 50.8
million common shares compared to $0.21 on 42.6 million common shares
in 1998. Diluted EPS for the quarter ended December 31, 1999, were
$0.23 on 51.8 million common shares, a 15.0% increase from the same
period in 1998 diluted EPS of $0.20 on 43.6 million common shares.
Product sales for the year ended December 31, 1999, increased to
$754.1 million from $616.3 million for the prior year, representing an
increase of 22.4%. Gross profit for the year increased to $325.3
million (43.1% of product sales), a 26.2% increase from $257.9 million
(41.8% of product sales) for the year ended December 31, 1998.
Product sales for the quarter ended December 31, 1999, increased
to $183.2 million from $160.0 million for the same period in 1998,
representing an increase of 14.5%. Gross profit for the fourth quarter
in 1999 increased to $84.5 million (46.1% of sales), an 18% increase
from $71.6 million (44.8% of sales) for the same period in 1998.
Comparable store product sales increased 9.6% and 3.6%,
respectively, for the year and quarter ended December 31, 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, Co-Chairman of the Board and Chief Executive
Officer, stated, "We are proud of our team members for achieving a
48.3% increase in net income and a 31.4% increase in diluted EPS.
This continues the trend of strong earnings growth that we have
established over the last 10 years. We are also very optimistic about
the year 2000 with regard to our planned 100 new stores, our new
distribution center in Dallas, Texas and continued progress toward
achieving pre-Hi/LO profitability levels. We plan to accomplish this
through reduced operating costs, increased same-store sales and
maintaining gross profit margins."
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 currently operates 571 stores within the states of
Texas, Missouri, Oklahoma, Kansas, Iowa, Arkansas, Louisiana, Nebraska
and Illinois as of December 31, 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.
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O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, December 31,
1999 1998
(Unaudited) (Note)
In thousands, except share data
Assets
Current assets:
Cash $ 10,544 $ 1,728
Short-term investments 500 500
Accounts receivable, net 26,462 27,580
Amounts receivable from vendors 24,358 26,660
Inventory 293,924 246,012
Refundable income taxes 2,333 3,026
Deferred income taxes 1,776 2,838
Other current assets 5,209 2,538
Total current assets 365,106 310,882
Property and equipment 292,053 210,207
Accumulated depreciation 56,289 39,256
235,764 170,951
Other assets 13,590 11,455
Total assets $614,460 $493,288
Liabilities and shareholders'
equity
Current liabilities:
Note payable to bank $ 5,000 $ 5,000
Accounts payable 64,885 66,737
Other current liabilities 30,759 22,091
Current portion of long-term debt 14,358 8,691
Total current liabilities 115,002 102,519
Long-term debt, less current portion 90,704 170,166
Other liabilities 5,710 2,209
Shareholders' equity:
Common stock, $.01 par value:
Authorized shares - 90,000,000
Issued and outstanding shares -
50,799,353 at December 31, 1999
and 42,699,400 at
December 31, 1998 508 213
Additional paid-in capital 221,628 82,658
Retained earnings 180,908 135,523
Total shareholders' equity 403,044 218,394
Total liabilities and shareholders'
equity $614,460 $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 Year Ended
December 31, December 31,
1999 1998 1999 1998
In thousands, except per share data
Product sales $183,210 $160,007 $754,122 $616,302
Cost of goods sold,
including warehouse
and distribution expenses 98,701 88,359 428,832 358,439
Operating, selling, general
and administrative expenses 66,054 54,763 248,733 200,962
164,755 143,122 677,565 559,401
Operating income 18,455 16,885 76,557 56,901
Other expense, net (116) (2,188) (3,533) (6,958)
Income before income taxes 18,339 14,697 73,024 49,943
Provision for income taxes 6,484 5,777 27,385 19,171
Net income $ 11,855 $ 8,920 $45,639 $ 30,772
Net income per common share $ 0.23 $ 0.21 $ 0.94 $ 0.72
Net income per common share -
assuming dilution $ 0.23 $ 0.20 $ 0.92 $ 0.71
Weighted average common shares
outstanding 50,751 42,626 48,674 42,476
Adjusted weighted average
common shares outstanding -
assuming dilution 51,752 43,634 49,715 43,204