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ORLY · O REILLY AUTOMOTIVE INC

32 filings

10-K

ORLY 10-K Annual Reports

O REILLY AUTOMOTIVE INC - 32 annual reports

Filing record · 2016–202610-K1110-Q338-K177

2025
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2025
O'Reilly Automotive, Inc. (ORLY) reported a strong performance for the fiscal year ended December 31, 2025. The company demonstrated consistent growth, driven by a 4.7% increase in comparable store sales, indicating robust demand from both its DIY and professional service provider customer segments. This growth was supported by an expanding store footprint, with 207 net new stores opened during the year, contributing significantly to the overall sales increase. The company's dual-market strategy, superior customer service, and efficient distribution network continue to be key competitive advantages, allowing it to navigate a dynamic retail environment. Management remains focused on strategic growth initiatives, including further store expansion and enhancements to its omnichannel capabilities, positioning O'Reilly for continued success in the automotive aftermarket industry.
Feb 27, 2026
2024
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2024
O'Reilly Automotive, Inc. (ORLY) filed its 2024 10-K report on February 27, 2025, detailing its business operations, financial performance, and strategic outlook. The company continues its expansion, opening 198 net new stores in 2024 and planning for 200-210 net new stores in 2025, including its entry into Canada with the acquisition of Vast Auto. ORLY maintained its "dual market strategy," serving both "do-it-yourself" (DIY) and professional service provider customers, with DIY customers accounting for approximately 52% of sales and professional customers 48%. Despite a slight decrease in comparable store sales growth to 2.9% in 2024 from 7.9% in 2023, driven by a decrease in DIY customer transaction counts, the company reported a 6% increase in total sales to $16.71 billion. Net income grew to $2.39 billion, a 2% increase from the prior year, and diluted earnings per share rose to $40.66. The company's strong balance sheet and consistent operational execution remain key strengths, although it acknowledges risks related to economic conditions, competition, and supply chain disruptions. O'Reilly's competitive advantages stem from its integrated dual-market strategy, a focus on superior customer service delivered by technically proficient "Professional Parts People," a robust tiered distribution network, and an experienced management team. The company's growth strategy emphasizes aggressive new store openings, same-store sales growth, selective strategic acquisitions, continuous store enhancements, and an evolving omnichannel approach. The financial review highlights sound liquidity, with substantial operating cash flow supporting capital expenditures and strategic initiatives. The company also actively engages in share repurchases, demonstrating a commitment to returning value to shareholders.
Feb 28, 2025
2023
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2023
O'Reilly Automotive, Inc. (ORLY) demonstrated robust performance in its 2023 fiscal year, reporting a significant increase in sales and net income. The company's dual market strategy, serving both DIY and professional customers, continues to be a key driver of its success, with comparable store sales showing healthy growth. ORLY's strategic expansion through new store openings, alongside consistent comparable store sales growth, underscores its market leadership and ability to execute its growth plans. The company's strong financial position, supported by effective cost management and a solid distribution network, positions it well for continued success. Investors can find confidence in ORLY's long-standing history of revenue and earnings growth, driven by a customer-centric approach and operational efficiency.
Feb 28, 2024
2022
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2022
O'Reilly Automotive, Inc. (ORLY) reported strong performance in its 2022 fiscal year, demonstrating resilience and continued growth within the automotive aftermarket sector. The company expanded its store footprint, opening 187 net new domestic stores and 17 new stores in Mexico, bringing the total to 5,971 locations. Sales saw an 8% increase year-over-year, driven by a 6.4% rise in comparable store sales, which benefited from increased average ticket values for both professional and DIY customers. Despite some inflationary pressures impacting SG&A expenses, O'Reilly managed to maintain its operating income margin. The company also continued its share repurchase program, demonstrating a commitment to returning value to shareholders. The report highlights the company's dual-market strategy, strong customer service, and efficient distribution network as key competitive advantages.
Feb 28, 2023
2021
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2021
O'Reilly Automotive, Inc. (ORLY) demonstrated strong performance in its 2021 fiscal year, as detailed in its 2022 10-K filing. The company reported a significant increase in sales, up 15% year-over-year, driven by robust comparable store sales growth of 13.3% and continued store network expansion with 168 net new stores opened. This growth was fueled by a strong dual-market strategy serving both DIY and professional customers, enhanced customer service, superior product availability through its extensive distribution network, and favorable industry trends such as the increasing average age of vehicles on the road. The company's financial health remains solid, with operating income increasing by 21% and net income rising by 24%. O'Reilly also actively managed its capital through share repurchases and demonstrated a commitment to reinvestment in its business through capital expenditures. The company's strategic focus on customer service, operational efficiency, and expansion positions it well for continued growth in the automotive aftermarket industry, despite facing typical industry risks like economic downturns and supply chain disruptions.
Feb 28, 2022
2020
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2020
O'Reilly Automotive Inc. (ORLY) demonstrated robust performance for the fiscal year ended December 31, 2020, navigating the challenges posed by the COVID-19 pandemic with strong sales growth and operational efficiency. The company's dual market strategy, serving both DIY and professional service providers, proved resilient, with comparable store sales increasing by 10.9%. This growth was driven by a combination of increased average ticket values and recovering transaction counts throughout the latter half of the year, supported by government stimulus measures and a consumer preference for repairing existing vehicles. The company continued its expansion, opening 155 net new domestic stores and one in Mexico, underscoring its commitment to market penetration and growth. Financially, O'Reilly maintained a strong liquidity position, ending the year with a substantial cash balance and managing its debt effectively. The company's strategic focus on customer service, inventory availability, and a technically proficient workforce remains a key differentiator in the competitive automotive aftermarket industry.
Feb 26, 2021
2019
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2019
O'Reilly Automotive, Inc. (ORLY) demonstrated resilience and growth in its 2019 fiscal year, as reflected in this 10-K filing. The company continued its expansion strategy, opening a significant number of new stores and completing the acquisition of Mayasa in Mexico, which broadened its geographic reach. O'Reilly's 'dual market strategy,' serving both DIY and professional service providers, remained a key driver of its success, with comparable store sales showing a healthy increase. The company highlighted its commitment to superior customer service, technically proficient staff, and a robust distribution network as core competitive advantages. Financially, O'Reilly reported increased sales and net income, underscoring its ability to navigate a competitive market and manage costs effectively. The company also continued its share repurchase program and managed its debt levels responsibly. While facing typical industry risks such as economic conditions and competition, O'Reilly's management expressed confidence in its continued ability to gain market share and achieve profitable growth through strategic store development, operational efficiency, and a focus on customer satisfaction.
Feb 28, 2020
2018
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2018
O'Reilly Automotive, Inc. (ORLY) reported solid performance for the fiscal year ending December 31, 2018, demonstrating continued growth and market expansion. The company maintained its position as a leading specialty retailer in the automotive aftermarket by executing its "dual market strategy," effectively serving both do-it-yourself (DIY) and professional service provider customers. This strategy, coupled with a focus on superior customer service, technically proficient staff, and a robust distribution network, fueled sales growth and operational efficiency. The company also continued its aggressive store opening strategy, expanding its footprint across 47 states and investing in store enhancements and digital capabilities to improve the customer experience. Financially, O'Reilly reported increased sales and net income, supported by positive comparable store sales growth and effective cost management. The company also actively engaged in share repurchases, returning value to shareholders. While facing a competitive market and economic sensitivities, O'Reilly's experienced management team and strong competitive advantages position it well for continued success. The report highlights ongoing investments in infrastructure, including distribution centers, and a commitment to a "promote from within" culture for its employees, underscoring the company's long-term growth strategy and operational resilience.
Feb 27, 2019
2017
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2017
O'Reilly Automotive, Inc. (ORLY) reported strong performance in its 2017 10-K filing, demonstrating resilience and continued growth in the automotive aftermarket industry. The company successfully expanded its store footprint, opening 190 net new stores to reach a total of 5,019 locations across 47 states, underscoring its aggressive growth strategy to consolidate a fragmented market. ORLY's dual-market strategy, catering to both do-it-yourself (DIY) and professional service provider customers, continues to be a key differentiator, with DIY customers contributing approximately 58% of sales and professional customers 42%. The company highlighted its competitive advantages, including superior customer service, technically proficient store personnel, and a robust, tiered distribution network, all contributing to consistent revenue and earnings growth. Financially, O'Reilly reported an increase in sales to $8.98 billion for 2017, up 4% from the previous year, driven by comparable store sales growth and contributions from new and acquired stores. Net income also saw a healthy increase of 9% to $1.13 billion. The company continued its commitment to shareholder returns through significant share repurchases, investing $2.2 billion in 2017. Despite challenges such as unseasonably mild weather impacting sales in certain periods, O'Reilly remains confident in its ability to gain market share and deliver value to its shareholders.
Feb 28, 2018
2016
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2016
O'Reilly Automotive, Inc. (ORLY) reported strong performance in its 2016 10-K filing, demonstrating consistent growth and strategic execution. The company continued its aggressive store expansion, opening 210 net new stores and acquiring 48 Bond Auto Parts stores, bringing its total store count to 4,829 across 47 states. This expansion, coupled with a 4.8% increase in comparable store sales and a 7.5% rise in average ticket value, drove an 8% increase in total sales to $8.59 billion. The company's dual-market strategy, serving both DIY and professional service providers, remains a key differentiator. O'Reilly's focus on superior customer service, technically proficient "Professional Parts People," and a robust, tiered distribution network are highlighted as core competitive advantages. The company also effectively managed its operating expenses, with SG&A decreasing as a percentage of sales, contributing to a 12% increase in operating income. O'Reilly's commitment to shareholder returns is evident through its active share repurchase program, repurchasing approximately $1.5 billion in shares during 2016.
Feb 28, 2017
2015
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2015
O'Reilly Automotive Inc. (ORLY) reported a strong performance in its 2015 fiscal year, reflecting continued growth driven by its dual-market strategy serving both DIY (Do-It-Yourself) and professional service provider customers. The company expanded its store footprint significantly, opening 205 net new stores, bringing the total to 4,571 locations across 44 states. This expansion, combined with a robust comparable store sales increase of 7.5%, led to a substantial rise in both sales and profitability. Key financial highlights include a 10% increase in sales, reaching $7.97 billion, and a 20% increase in net income to $931 million. Operating income also saw a significant increase of 19%, reaching $1.51 billion, with operating margin improving to 19.0% of sales. The company continued its focus on operational efficiency and customer service, supported by its extensive distribution network and technically proficient "Professional Parts People". Shareholder value was further enhanced through a substantial share repurchase program, with the company buying back approximately 4.9 million shares for $1.1 billion during the year.
Feb 26, 2016
2014
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2014
O'Reilly Automotive, Inc. (ORLY) reported strong performance in its 2014 10-K filing, demonstrating consistent growth and a robust business model. The company, a leading specialty retailer of automotive aftermarket parts, tools, and accessories, continues to benefit from its "dual market strategy" serving both do-it-yourself (DIY) and professional service provider customers. This strategy, combined with superior customer service, technically proficient "Professional Parts People," and an efficient distribution network, forms the core of O'Reilly's competitive advantages. The company's growth strategy remains focused on aggressively opening new stores, growing sales in existing stores, and selectively pursuing strategic acquisitions. In 2014, O'Reilly opened 200 net new stores and planned for approximately 205 in 2015, indicating a continued expansion of its market presence. The financial highlights show a significant increase in sales and net income, reflecting the success of these strategies. O'Reilly also demonstrates a strong commitment to shareholder returns through its active share repurchase program.
Feb 27, 2015
2013
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2013
O'Reilly Automotive, Inc. (ORLY) demonstrated strong performance in 2013, highlighted by an 8% increase in sales to $6.65 billion, driven by comparable store sales growth of 4.3% and aggressive new store openings. The company successfully expanded its footprint to 4,166 stores across 42 states, underscoring its commitment to consolidating the fragmented automotive aftermarket. Profitability also saw a significant boost, with net income up 14% to $670 million, translating to a diluted EPS of $6.03, a 27% increase year-over-year. This growth was supported by effective cost management, improved gross margins due to vendor programs and distribution efficiencies, and disciplined SG&A expenses. The company's "dual market strategy" of serving both Do-It-Yourself (DIY) and professional service provider customers continues to be a key competitive advantage. O'Reilly emphasizes its technically proficient "Professional Parts People" and a robust, regional distribution network as pillars of its success. Management remains confident in its growth strategy, which includes opening approximately 200 net new stores in 2014, continuing to enhance existing store performance, pursuing strategic acquisitions, and investing in its e-commerce platform. The company also continued its active share repurchase program, repurchasing $933 million of stock in 2013, signaling a commitment to returning value to shareholders.
Feb 28, 2014
2012
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2012
O'Reilly Automotive Inc. (ORLY) in its 2012 10-K filing demonstrates a strong operational year characterized by consistent sales growth and strategic expansion. The company continued its aggressive new store opening strategy, adding 180 net new stores and acquiring 56 stores from VIP Parts, Tires & Service, bringing its total store count to 3,976 across 42 states. This expansion, coupled with a 3.8% increase in comparable store sales, drove total sales to $6.18 billion, a 7% increase year-over-year. Financially, ORLY reported a 15% increase in net income to $586 million, translating to diluted earnings per share of $4.75, up 28% from the previous year. The company also actively managed its capital structure, repurchasing $1.45 billion in common stock under its share repurchase program and issuing $300 million in senior notes. Despite a higher debt-to-equity ratio, the company maintained compliance with its debt covenants, signaling a robust financial position and a commitment to shareholder value. The company highlighted its dual market strategy, strong customer service, and efficient distribution network as key competitive advantages contributing to its sustained growth.
Feb 28, 2013
2011
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2011
O'Reilly Automotive, Inc. (ORLY) reported its annual results for the fiscal year ended December 31, 2011. The company experienced a 7.2% increase in sales, reaching $5.79 billion, driven by a 4.6% comparable store sales growth and the opening of 170 new stores. This expansion brings the total store count to 3,740 across 39 states. The company's dual market strategy, serving both DIY and professional service providers, continues to be a key driver of growth, with professional service provider sales increasing as a percentage of the total sales mix. Profitability also saw a significant boost, with operating income up 22% to $867 million and net income increasing by 21% to $508 million. This improvement was attributed to favorable product mix, improved acquisition costs, better inventory management, and operating efficiencies, alongside a reduction in legacy legal charges compared to the previous year. The company also strengthened its financial position by refinancing its debt, issuing new senior notes, and repurchasing shares under a $1.5 billion program, demonstrating a commitment to shareholder value and operational strength in a competitive market.
Feb 28, 2012
2010
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2010
O'Reilly Automotive, Inc. (ORLY) demonstrated robust growth and operational execution in its fiscal year ending December 31, 2010. The company successfully integrated the acquired CSK Auto Corporation, expanding its store count to 3,570 across 38 states. Sales saw a significant increase of 11%, driven by strong comparable store sales growth of 8.8% and the addition of new stores. The integration of CSK has progressed well, with all stores converted to O'Reilly's systems by the end of 2010, positioning the company for continued market share gains and operational efficiencies. Financially, O'Reilly reported a substantial increase in operating income and net income, reflecting improved gross margins due to better product mix and vendor negotiations, alongside leverage on selling, general, and administrative expenses. The company also addressed its debt structure, repaying significant portions of its credit facility and issuing new senior notes in early 2011 to strengthen its financial position. Despite economic headwinds, O'Reilly's strategy of serving both DIY and professional service providers, coupled with its focus on customer service and efficient distribution, appears to be yielding positive results.
Feb 28, 2011
2009
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2009
O'Reilly Automotive, Inc. (ORLY) filed its 2009 10-K on February 25, 2010, detailing a year marked by the significant integration of the CSK Auto Corporation acquisition completed in July 2008. The company operated 3,421 stores across 38 states at the close of 2009. O'Reilly emphasizes its "dual market strategy," serving both do-it-yourself (DIY) and professional installer customers, which it believes is a key competitive advantage. The integration of CSK involved converting store systems, enhancing distribution infrastructure, and aligning product offerings, with the process expected to continue into 2011. The company highlighted its experienced management team and a proven ability to execute its growth strategy, which includes opening new stores and selectively pursuing strategic acquisitions. Financially, O'Reilly reported increased sales driven by the full inclusion of CSK's results and comparable store sales growth. The company also saw improvements in gross profit margins attributed to lower product acquisition costs, favorable product mix, and distribution system enhancements. However, the acquisition also led to increased debt levels and higher selling, general, and administrative (SG&A) expenses. Despite economic headwinds, O'Reilly expressed confidence in its liquidity and ability to fund future growth through operating cash flows and its credit facility.
Feb 26, 2010
2008
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2008
O'Reilly Automotive, Inc. (ORLY) filed its annual report for the fiscal year ended December 31, 2008, detailing significant strategic initiatives and operational performance against a backdrop of challenging economic conditions. The most notable development during the year was the acquisition of CSK Auto Corporation on July 11, 2008, a move that substantially expanded O'Reilly's geographic footprint and store count, particularly in the Western United States. While the integration of CSK presented opportunities for growth and synergy, it also introduced complexities and integration costs, as reflected in the increase in SG&A expenses. The company's core business demonstrated resilience, with comparable store sales showing a modest increase, though this was below historical trends due to macroeconomic pressures impacting consumer discretionary spending. Management focused on executing its dual-market strategy, leveraging its 'Professional Parts People' and extensive distribution network to maintain customer service levels. Investors should note the significant increase in debt following the CSK acquisition, which was financed through a new $1.2 billion asset-based revolving credit facility.
Mar 2, 2009
2007-A
O REILLY AUTOMOTIVE INC Annual Report (Amendment), Year Ended Dec 31, 2007
This filing is an amendment to O'Reilly Automotive, Inc.'s 2007 Annual Report on Form 10-K, primarily correcting the exhibit list. While it doesn't introduce new financial data or operational insights for the 2007 fiscal year, it confirms the company's status as a large accelerated filer. Investors should note that this amendment is technical and does not alter the original financial statements or disclosures made in the initial 10-K filing. The core financial information and business context would be found in the original March 3, 2008, 10-K filing. This amendment serves to ensure the accuracy of the associated exhibits and certifications, maintaining regulatory compliance. For a comprehensive understanding of O'Reilly Automotive's performance and financial position for the fiscal year ended December 31, 2007, investors should refer to the original 10-K filing and its incorporated documents.
Jun 10, 2008
2007
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2007
O'Reilly Automotive (ORLY) closed fiscal 2007 with record results: sales rose 10.5% to $2.52 billion, operating income grew 8.1% to $305.2 million, and net income reached $194.0 million, or $1.67 diluted EPS, up from $1.55 in 2006. Growth came mainly from 190 net new stores (1,830 total at year-end) and a 3.7% increase in same-store sales. Gross margin expanded 30 basis points to 44.4% on better product mix, lower acquisition costs, and distribution efficiencies, while SG&A deleveraged modestly to 32.3% of sales from 31.7%, driven by store payroll, advertising, depreciation, and stock compensation. The company's dual DIY/professional installer model remains central, with roughly 52% of sales to DIY customers and 48% to installers. Balance sheet strength is notable. Shareholders' equity rose to $1.59 billion, and long-term debt fell to $75.1 million from $110.2 million, with no borrowings outstanding under the $100 million credit facility at year-end. Operating cash flow increased to $299.4 million, and capital expenditures of $282.7 million were largely directed at store expansion and the new Lubbock distribution center. Management guides to about 205 new stores and $275-285 million of 2008 capex, funded by operating cash flow and existing credit lines. Key risks for investors include macroeconomic pressure on discretionary spending, higher energy costs that have held miles driven flat, and weather sensitivity. Roughly 26% of stores are in Texas, which concentrates regional exposure. Same-store growth of 3.7% was below the company's historical rates, so the 2008 outlook depends on whether the store-growth engine can keep offsetting softer comparable sales.
Mar 3, 2008
2006
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2006
O'Reilly Automotive, Inc. (ORLY) demonstrated strong performance in its 2006 fiscal year, continuing a trend of revenue and earnings growth. The company operated 1,640 stores across 25 contiguous states, serving both "do-it-yourself" (DIY) and professional installer customers. A key strategic advantage highlighted is its dual-market approach, which accounts for approximately 52% of sales from DIY customers and 48% from professional installers. The company emphasized its "Professional Parts People" and extensive product selection as critical differentiators. O'Reilly's growth strategy focused on aggressively opening new stores, with plans for approximately 190-195 new locations in 2007, alongside selective strategic acquisitions. The company also highlighted its robust distribution network and experienced management team. While acknowledging a competitive market and sensitivity to regional economic and weather conditions, O'Reilly expressed confidence in its ability to maintain growth through its proven business model and expansion initiatives.
Mar 1, 2007
2005
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2005
O'Reilly Automotive, Inc. (ORLY) filed its 2005 10-K report, detailing a year of significant growth and strategic expansion. The company operates as a leading retailer of automotive aftermarket parts, tools, and accessories, serving both "do-it-yourself" (DIY) customers and professional installers across 25 states. In 2005, O'Reilly continued its aggressive store opening strategy, adding 221 net new stores to reach a total of 1,470 locations. This expansion, combined with a 7.5% increase in same-store sales, drove a substantial 18.8% increase in product sales, reaching $2.05 billion. The company highlights its proven dual-market strategy, superior customer service, technically proficient staff, and strategic distribution network as key competitive advantages. O'Reilly's commitment to growth is evident in its plans to open an additional 170-175 stores in 2006 and 185-190 in 2007. The acquisition of Midwest Auto Parts Distributors, Inc. in May 2005 further bolsters its market presence. The company maintains a strong financial position, with healthy gross profits and effective expense management contributing to an 8.0% net profit margin for the year.
Mar 15, 2006
2004
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2004
O'Reilly Automotive (ORLY) closed 2004 with 1,249 stores across 19 mostly Central and Southern U.S. states, after a net addition of 140 stores during the year. Product sales rose 13.9% to $1.72 billion, driven by new stores and a 6.8% increase in same-store product sales. Net income grew 39.4% to $139.6 million, or $2.51 per diluted share, though this figure includes a one-time $21.9 million after-tax non-cash gain from a change in inventory accounting. Excluding that effect, income before the cumulative change was $117.7 million, up about 17.6% year over year. The balance sheet strengthened meaningfully. Shareholders' equity reached $947.8 million, total assets were $1.43 billion, and the company had no outstanding balance on its $150 million credit facility at year-end. Operating cash flow rose to $226.5 million, which funded $173.5 million in capital expenditures. Accounts payable increased sharply, partly because management extended vendor payment terms, a dynamic investors should monitor for sustainability. Management plans to open about 160 stores in 2005 and 170 to 180 in 2006, with 2005 capex guided to $175 million to $185 million. Risks flagged in the filing include geographic concentration (about 31% of stores in Texas), weather sensitivity, dependence on key executives, a significant O'Reilly family ownership block (about 10%), and the 2005 expiration of the credit facility. The filing also disclosed a $10.4 million lease-accounting correction recorded in Q4 2004 and a restatement of the first three quarters' 2004 results.
Mar 15, 2005
2003
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2003
O'Reilly Automotive (ORLY) closed fiscal 2003 with its strongest year on record, reporting product sales of $1.51 billion, up 15.2% from $1.31 billion in 2002, driven by 128 net new stores and a 7.8% increase in same-store sales. Gross margin held steady at 42.2% of product sales, while operating, selling, general and administrative expenses fell to 31.3% of sales from 31.6%, lifting operating income 19.5% to $165.3 million. Net income rose 22.1% to $100.1 million, and diluted EPS reached $1.84 versus $1.53 a year earlier. The company describes eleven consecutive years of record revenue and earnings growth since its 1993 IPO. Balance sheet and cash flow strengthened meaningfully. Operating cash flow nearly doubled to $172.8 million, long-term debt fell to $121.0 million from $190.5 million, and shareholders' equity grew to $784.3 million. Inventory rose to $554.3 million, but accounts payable more than doubled to $176.5 million, reflecting extended vendor payment terms and pay-on-scan arrangements that help fund growth. Capital expenditures of $136.5 million were largely tied to new stores and remodels. Looking ahead, management plans to open about 140 stores in 2004 and 150 in 2005, with capital spending of $125 million to $135 million in 2004. Key risks include geographic concentration (about 34% of stores in Texas), weather sensitivity, dependence on key executives, and significant voting control held by the O'Reilly family, which owns roughly 10% of shares. The company pays no cash dividends and reinvests all earnings into expansion.
Mar 15, 2004
2002
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2002
O'Reilly Automotive (ORLY) closed 2002 with 981 company-operated stores across 17 contiguous Central and Southern states, up from 875 a year earlier after 106 net new openings. Product sales rose 20.2% to $1.31 billion, driven by the store growth and a 3.7% increase in same-store sales. Net income grew 23.6% to $82.0 million, or $1.53 per diluted share, versus $1.26 in 2001. Operating margin edged up to 10.6% of sales from 10.4%, though gross margin compressed to 42.2% from 42.8% as lower-margin jobber sales and new distribution costs weighed on results. The balance sheet remains conservative, with total assets of $1.01 billion, shareholders' equity of $650.5 million, and long-term debt of $190.5 million. Operating cash flow more than doubled to $104.5 million, while capital expenditures of $102.3 million went mainly to new stores, relocations, and remodels. Management plans roughly 130 openings in 2003 and 145 in 2004, and it believes existing cash and credit facilities are sufficient to fund that expansion. Key risks for investors include geographic concentration, with about 37% of stores in Texas and exposure to regional weather and economic conditions, along with dependence on the O'Reilly family and key executives, and significant voting control held by the family, which owns about 13% of shares. Floating-rate debt of about $90 million carries modest sensitivity, and the company faces intense competition from AutoZone, Advance, and CSK. The company also settled a Robinson-Patman Act suit with an undisclosed, immaterial amount.
Mar 27, 2003
2001
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2001
O'Reilly Automotive (ORLY) closed fiscal 2001 with its strongest year to date, driven by aggressive store expansion and solid same-store growth. Product sales rose 22.7% to $1.09 billion from $890.4 million, supported by 121 net new stores, an 8.8% increase in same-store sales for stores open at least one year, and the October 2001 acquisition of Mid-State Automotive, which added 82 stores and two distribution centers. Operating income grew 26.4% to $113.8 million, and net income rose 28.3% to $66.4 million, or $1.26 per diluted share. Gross margin slipped modestly to 42.8% from 43.0%, while operating expenses fell to 32.4% of sales from 32.9%, reflecting operating leverage. The balance sheet expanded alongside the business. Inventory increased to $447.8 million, and total assets reached $856.9 million. Long-term debt rose to $165.6 million, largely because of a $100 million senior notes private placement in May 2001 that replaced revolver borrowings. Shareholders' equity increased to $556.3 million. Operating cash flow improved to $50.0 million from $5.8 million, while capital expenditures of $68.5 million were funded through operations and borrowings. Management expects to open about 100 stores in 2002 and about 120 in 2003, and states that existing cash, operating cash flow, and credit facilities are sufficient for its needs. Investors should weigh several risks. Roughly 37% of stores are in Texas, which concentrates exposure to regional economic and weather conditions. The O'Reilly family controls about 14.8% of the shares and retains significant voting influence. The company also faces the Coalition for a Level Playing Field Robinson-Patman Act lawsuit, which management believes lacks merit. The bank credit facility expires in January 2003 and will need to be refinanced, and the company pays no cash dividends.
Mar 29, 2002
2000
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2000
O'Reilly Automotive (ORLY) closed fiscal 2000 with record results: product sales rose 18.1% to $890.4 million from $754.1 million, driven by 101 net new stores (672 year-end, up from 571) and a 4.0% increase in same-store product sales. Net income grew 13.3% to $51.7 million, or $1.00 per diluted share, versus $0.92 in 1999. Gross margin held roughly flat at 43.0%, while operating, selling, general and administrative expenses held at 32.9% of sales, so operating income grew 17.1% to $90.0 million. Higher interest expense on increased borrowings pushed other expense to $6.9 million, but the effective tax rate was essentially unchanged at 37.8%. The balance sheet and cash flow picture is more mixed. Inventory rose to $372.1 million from $293.9 million, and operating cash flow fell sharply to $5.8 million from $29.7 million as inventory build absorbed cash. The company funded expansion through a December 2000 sale-leaseback of 90 properties for $52.3 million, which reduced revolver borrowings, and a new $50 million synthetic operating lease facility. Total debt, including short-term notes payable of $35.0 million and long-term debt of $90.5 million, remained manageable against shareholders' equity of $463.7 million. Management plans to open about 120 stores in 2001 and about 145 in 2002, with the sites for 2001 already identified. Key risks for investors include geographic concentration (about 40% of stores in Texas), dependence on key O'Reilly family members who control significant voting power (about 19.2% ownership), and the company's reliance on continued store growth to drive results. The company also reported a favorable verbal settlement of the Hi/LO battery class action lawsuit, which management does not expect to be materially adverse.
Mar 30, 2001
1999
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 1999
O'Reilly Automotive (ORLY) reported a strong fiscal 1999, with product sales rising 22.4% to $754.1 million from $616.3 million, driven by 80 net new stores and a 9.6% increase in same-store sales. Net income grew 48.3% to $45.6 million, or $0.92 diluted EPS (split-adjusted), and net margin expanded to 6.1% from 5.0%. Gross margin improved to 43.1% from 41.8%, reflecting better purchasing programs and buying power, while operating, selling, general and administrative expenses rose to 32.9% of sales from 32.6%, pressured by medical and workers' compensation costs and Hi/LO integration. The balance sheet strengthened considerably. Shareholders' equity more than doubled to $403.0 million, aided by a March 1999 secondary offering that raised $124.6 million net, and long-term debt fell to $90.7 million from $170.2 million. Operating cash flow improved to $29.7 million, but capital expenditures of $86.0 million kept free cash flow negative, so the company continues to rely on its credit facility and offering proceeds to fund expansion. Inventory of $293.9 million is the largest asset and grows with store count. The key risks for investors are geographic concentration (roughly 36% of stores in Texas, all in the Central and Southern U.S.), dependence on the founding O'Reilly family, which controls about 25% of shares, and an unresolved class action tied to the former Hi/LO battery sales. The company plans to open about 100 stores in 2000 and 120 in 2001, a growth pace that makes execution and same-store performance the central investment questions.
Mar 30, 2000
1998
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 1998
O'Reilly Automotive (ORLY) closed 1998 as a much larger company after acquiring Hi/LO Automotive in January 1998 for about $49.3 million in cash, plus $43.2 million of assumed debt. Product sales rose 94.8% to $616.3 million, driven by 182 acquired Hi/LO stores, 50 net new openings, and a 6.8% increase in same-store sales. Net income grew 33.0% to $30.8 million, but the net margin fell to 5.0% from 7.3%, reflecting lower gross margin from the Hi/LO integration and sharply higher interest expense of $8.1 million, up from $0.1 million in 1997. Diluted EPS was $1.42, up from $1.09. The balance sheet and cash flow reflect the expansion. Inventory more than doubled to $246.0 million, and operating cash flow was negative $19.1 million. Long-term debt rose to $170.2 million from $22.6 million, and shareholders' equity reached $218.4 million. The company planned a secondary offering of 3,000,000 company shares (3,340,000 total) in March 1999, with proceeds used to repay credit facility debt. The company also plans about 80 new stores in 1999 and roughly 100 in 2000, which will require continued capital spending and working capital. Key risks include geographic concentration (about 35% of stores in Texas and all in the Central and Southern U.S.), dependence on key family members, O'Reilly family control of about 33% of shares, the Year 2000 remediation program (budgeted at about $100,000 with completion targeted for September 1999), and a pending class action over Hi/LO battery sales that the company intends to contest. Management believes the legal matter will not be materially adverse.
Mar 25, 1999
1997-A
O REILLY AUTOMOTIVE INC Annual Report (Amendment), Year Ended Dec 31, 1997
This excerpt from O'Reilly Automotive's 10-K filed April 17, 1998 contains only the independent auditor's report from Ernst & Young, LLP (Kansas City, Missouri, dated February 16, 1998). It does not include the financial statements, footnotes, MD&A, or business description, so it cannot support an analysis of revenue, margins, earnings, cash flow, store count, or balance sheet strength. Investors reviewing the full filing should look to those sections for the substance of the company's 1997 performance. The auditor issued an unqualified (clean) opinion. Ernst & Young audited the consolidated balance sheets as of December 31, 1997 and 1996, and the related statements of income, stockholders' equity, and cash flows for each of the three years ended December 31, 1997. The firm concluded that the statements present fairly, in all material respects, the company's financial position and results of operations in conformity with generally accepted accounting principles. The opinion itself contains no going-concern language, exceptions, or emphasis paragraphs. The report indicates the audit was conducted under generally accepted auditing standards, which is the standard expectation for a public company's annual filing. Because the excerpt is limited to the audit opinion, any assessment of the company's operating trends, leverage, or valuation would be speculative based on this text alone.
Apr 17, 1998
1997
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 1997
O'Reilly Automotive (ORLY) closed 1997 with record results: product sales rose 22.1% to $316.4 million from $259.2 million, driven by 40 net new stores and a 6.8% increase in same-store sales. Gross margin expanded to 42.5% from 41.8%, mainly from volume purchasing discounts, and operating income grew 28.5% to $37.1 million. Net income reached $23.1 million, or $1.09 diluted EPS, up 21.6% from $19.0 million, or $0.90 in 1996. Operating cash flow improved to $17.9 million, while the company invested $37.2 million in capital expenditures for store growth and distribution. The most important development for investors is the January 30, 1998 acquisition of Hi-Lo Automotive, a Houston-based retailer with 189 stores in Texas, Louisiana and California and a 375,000 square foot distribution center. The equity purchase price was about $47.8 million ($4.35 per share), and about $43.2 million of debt was assumed, for a total of roughly $91 million. The deal was funded with a new $175 million unsecured syndicated credit facility, comprising a $125 million five-year revolver and a $50 million five-year term loan. Long-term debt rose from $0.2 million at year-end 1996 to $22.6 million at year-end 1997, and the Hi-Lo acquisition will add substantially more leverage in 1998. Looking ahead, management plans to open 50 new stores in 1998 and 80 in 1999, expanding into Texas, Iowa and Nebraska, and to convert the Hi/LO operations to O'Reilly systems during 1998. Management expects gross margins to face continued price competition from national and regional rivals, and it views the Year 2000 remediation cost as immaterial. The company pays no cash dividends and its stock rose from a $15.50 low to a $28.00 high during 1997.
Mar 31, 1998
1996
O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 1996
O'Reilly Automotive, Inc. (ORLY), a Springfield, Missouri-based specialty retailer of automotive aftermarket parts, reported strong fiscal 1996 results. Product sales rose 28.7% to $259.2 million from $201.5 million, driven by 31 new stores and a 14.4% increase in same-store sales. Net income grew 34.6% to $19.0 million, or $1.82 per share, versus $1.58 in 1995. The company operated 219 stores at year end across Missouri, Arkansas, Kansas and Oklahoma, and is targeting 40 new stores in 1997 and 50 in 1998, including entry into Iowa and Nebraska. Margin trends were mixed. Gross margin slipped to 41.8% from 42.0% as price competition intensified, and management expects that pressure to continue into 1997 and beyond. Operating margin improved to 11.1% from 10.9% because OSG&A leverage (30.7% of sales versus 31.1%) more than offset the gross margin decline. Growth is capital intensive: capital expenditures reached $34.5 million in 1996, and operating cash flow fell to just $4.9 million, so the company relied on inventory build-out, short-term bank lines and its 1995 equity offering. Inventory rose to $83.9 million, and the company had $3.0 million in notes payable at year end. For investors, the key considerations are the company's dual DIY and Professional Installer strategy, its distribution-center-supported model, and its reliance on continued new store openings. Risks include AutoZone's 1996 entry into Professional Installer markets, the need to renew credit facilities that expire in mid-1997, and weak free cash flow during expansion. The company pays no cash dividends and its stock traded between $28.75 and $40.75 in 1996.
Mar 31, 1997