O'Reilly Automotive Announces Second Quarter Earnings
26 July 2000
O'Reilly Automotive Announces Second Quarter Operating Margin of 11.0% and Record Sales and Earnings
SPRINGFIELD, Mo. - O'Reilly Automotive, Inc. today announced record revenues and earnings for the second quarter and first half of 2000, representing the 26th 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, 2000, net income totaled $14.4 million, up 22.0% from $11.8 million for the same period a year ago. Earnings per common share (diluted) for the quarter increased 21.7% to $0.28 on 51.5 million shares versus $0.23 a year ago on 51.1 million shares. Product sales for the second quarter totaled $226.4 million, up 15.4% from $196.1 million in the previous year. Gross profit for the second quarter of 2000 increased to $97.3 million (or 43.0% of product sales) from $81.8 million (or 41.7% of product sales) for the second quarter of the prior year, representing an increase of 18.9%.
Net income for the first six months of 2000 totaled $25.9 million, up 27.2% from $20.4 million for the same period a year ago. Earnings per common share (diluted) for the first half of 2000 increased 16.3% to $0.50 on 51.4 million shares versus $0.43 a year ago on 47.4 million shares. Product sales for the first half of 2000 totaled $422.1 million, up 16.4% from $362.5 million in the first half of the previous year. Gross profit for the first half of 2000 increased to $182.0 million (or 43.1% of product sales) from $152.8 million (or 42.1% of product sales) for the first half of the prior year, representing an increase of 19.1%.
Comparable store sales for stores open at least one year increased 3.1% and 4.0% for the second quarter and first half of 2000, respectively. Comparable store product sales for only those stores open during both full periods being compared increased 2.4% and 3.6% for the second quarter and the first half of 2000, respectively.
David O'Reilly, Co-Chairman of the Board and Chief Executive Officer, stated: "We are extremely pleased to report our second quarter 2000 operating margin of 11.0%. Achieving this level of performance has been our goal since our acquisition of Hi/LO Auto Supply and is the result of efforts by all our team members." Larry O'Reilly, Co-Chairman of the Board and Chief Operating Officer, stated: "We have opened fifty-five net new stores during the first half of 2000, including the twelve acquired Gateway stores. We plan to open an additional forty-five stores during 2000, which includes the nine net KarPro stores expected to be acquired in September 2000. We are also looking forward to our new Dallas, Texas, distribution center becoming fully operational in October 2000."
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 626 stores within the states of Texas, Missouri, Oklahoma, Kansas, Iowa, Arkansas, Louisiana, Nebraska and Illinois as of June 30, 2000.
O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2000 1999
-------- -------
(Unaudited) (Note)
In thousands
Assets
Current assets:
Cash $ 10,985 $ 9,791
Short-term
investments 500 500
Accounts receivable,
net 32,589 26,462
Amounts receivable
from vendors 20,588 25,984
Inventory 328,143 293,924
Refundable income taxes 592 2,333
Deferred income taxes 1,052 1,776
Other current assets 3,902 3,583
-------- -------
Total current
assets 398,351 364,353
Property and equipment,
at cost 334,397 292,806
Accumulated depreciation
and amortization 66,482 56,289
-------- -------
267,915 236,517
Other assets 10,722 9,572
-------- -------
Total assets $ 676,988 $ 610,442
======== =======
Liabilities and shareholders'
equity
Current liabilities:
Note payable to bank $ 5,000 $ 5,000
Income taxes payable 4,549 --
Accounts payable 67,126 64,885
Other current liabilities 31,211 30,759
Current portion of
long-term debt 14,358 14,358
-------- -------
Total current
liabilities 122,244 115,002
Long-term debt,
less current portion 118,236 90,704
Deferred income taxes 2,095 1,215
Other liabilities 488 477
Shareholders' equity:
Common stock, $.01 par value:
Authorized shares --
90,000,000
Issued and outstanding
shares -- 51,192,179
at June 30, 2000
and 50,799,353 at
December 31, 1999 512 508
Additional paid-in capital 226,585 221,628
Retained earnings 206,828 180,908
-------- -------
Total shareholders'
equity 433,925 403,044
-------- -------
Total liabilities and
shareholders' equity $ 676,988 $ 610,442
======== =======
Note: The balance sheet at December 31, 1999, 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,
----------- ---------- ---------- ----------
2000 1999 2000 1999
----------- ---------- ---------- ----------
In thousands, except per share data
Product sales $226,359 $196,107 $422,117 $362,511
Cost of goods sold,
including warehouse
and distribution
expenses 129,098 114,284 240,150 209,731
Operating, selling,
general and
administrative
expenses 72,468 62,193 137,764 116,909
----------- ---------- ---------- ----------
201,566 176,477 377,914 326,640
----------- ---------- ---------- ----------
Operating income 24,793 19,630 44,203 35,871
Other expense, net (1,634) (557) (2,454) (2,853)
----------- ---------- ---------- ----------
Income before income
taxes 23,159 19,073 41,749 33,018
Provision for income
taxes 8,800 7,304 15,829 12,646
----------- ---------- ---------- ----------
Net income $ 14,359 $ 11,769 $25,920 $ 20,372
=========== ========== ========== ==========
Net income per
common share $ 0.28 $ 0.23 $ 0.51 $ 0.44
=========== ========== ========== ==========
Net income per
common share --
assuming dilution $ 0.28 $ 0.23 $ 0.50 $ 0.43
=========== ========== ========== ==========
Weighted average
common shares
outstanding 51,111 50,424 50,983 46,594
=========== ========== ========== ==========
Adjusted weighted
average common shares
outstanding --
assuming dilution 51,548 51,084 51,405 47,418
=========== ========== ========== ==========