10-KPeriod: FY2004

O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2004

Filed March 15, 2005For Securities:ORLY

Summary

O'Reilly Automotive, Inc. (ORLY) filed its 2004 10-K on March 15, 2005, detailing its operations as a leading specialty retailer of automotive aftermarket parts, tools, supplies, equipment, and accessories across 1,249 stores in 19 states. The company emphasizes its dual market strategy, serving both "do-it-yourself" (DIY) customers and professional installers, with 2004 sales split approximately 52% DIY and 48% professional. O'Reilly highlights its competitive advantages, including superior customer service, technically proficient "Professional Parts People," a strategic distribution network, and an experienced management team. The company's growth strategy is focused on aggressively opening new stores, with plans for approximately 160 new locations in 2005 and 170-180 in 2006, and selectively pursuing strategic acquisitions. O'Reilly also aims to enhance same-store growth through improved customer service and store design. The filing indicates strong financial performance with twelve consecutive years of record revenues and earnings growth prior to this report, demonstrating a consistent track record and a clear vision for continued expansion in the fragmented automotive aftermarket industry.

Key Highlights

  • 1O'Reilly Automotive operates 1,249 stores across 19 states, serving both DIY and professional installer markets.
  • 2The company employs a dual market strategy, with 2004 sales nearly evenly split between DIY (52%) and professional installers (48%).
  • 3Key competitive advantages include strong customer service, knowledgeable staff ("Professional Parts People"), efficient distribution, and an experienced management team.
  • 4Aggressive expansion is a core strategy, with plans to open approximately 160 new stores in 2005 and 170-180 in 2006.
  • 5O'Reilly also pursues strategic acquisitions to strengthen its market position.
  • 6The company has a history of consistent growth, with twelve consecutive years of record revenues and earnings prior to this filing.
  • 7Stores are strategically located in clusters to achieve economies of scale in management, advertising, and distribution.

Frequently Asked Questions

O'Reilly Automotive, Inc. is a specialty retailer of automotive aftermarket parts, tools, supplies, equipment, and accessories. They cater to two main customer segments: 'do-it-yourself' (DIY) customers who perform their own vehicle maintenance and repairs, and professional installers such as mechanics and repair shops. The company does not sell tires or perform automotive repairs.

O'Reilly identifies several key competitive advantages, including its proven ability to execute a dual market strategy (serving both DIY and professional customers), superior customer service delivered by technically proficient 'Professional Parts People,' a strategic and efficient distribution system enabling broad product availability, and an experienced management team with a long tenure at the company.

The company's growth strategy is multi-faceted. It includes aggressively opening new stores in existing and contiguous new markets, selectively pursuing strategic acquisitions to strengthen its market position, and continually enhancing store design and location to improve efficiency and customer experience. They also focus on driving same-store sales through excellent customer service.

O'Reilly operates a network of strategically located distribution centers that are electronically linked to its stores. This system allows for efficient inventory management, optimum stock levels, and provides stores with same-day or overnight access to a vast selection of products (over 100,000 SKUs). They utilize advanced technology, including automated conveyor systems and computer-assisted ordering, to manage the flow of goods.