10-KPeriod: FY2012

O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2012

Filed February 28, 2013For Securities:ORLY

Summary

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.

Financial Highlights

48 data points
Beta

Revenue

$6.18B

50.1% Gross Margin

Net Income

$585.75M

9.5% Net Margin

EPS (Diluted)

$0.32

Total Assets

$5.75B

Cash & Equivalents

$248.13M

Free Cash Flow

$950.84M

Financial Statements
Beta
Revenue$6.18B
Cost of Revenue$3.08B
Gross Profit$3.10B
SG&A Expenses$2.12B
Operating Income$977.39M
Interest Expense$40.20M
Net Income$585.75M
EPS (Basic)$0.32
EPS (Diluted)$0.32
Shares Outstanding (Basic)1.82B
Shares Outstanding (Diluted)1.85B

Key Highlights

  • 1O'Reilly Automotive reported total sales of $6.18 billion for the fiscal year ended December 31, 2012, a 7% increase from the prior year.
  • 2Comparable store sales increased by 3.8%, indicating continued customer demand and market penetration.
  • 3Net income grew by 15% to $586 million, with diluted earnings per share reaching $4.75, a 28% increase.
  • 4The company expanded its footprint by opening 180 net new stores and acquiring 56 stores, bringing the total store count to 3,976.
  • 5ORLY repurchased approximately $1.45 billion of its common stock during the year, demonstrating a commitment to returning capital to shareholders.
  • 6The company issued $300 million in 3.800% Senior Notes due 2022, contributing to its financing strategy.
  • 7Operating income as a percentage of sales improved to 15.8%, up from 15.0% in the prior year, reflecting operational efficiencies.

Frequently Asked Questions

O'Reilly Automotive reported total sales of $6.18 billion for the fiscal year ended December 31, 2012, which represents a 7% increase compared to the previous year. This growth was supported by a 3.8% increase in comparable store sales and the addition of new stores.

The company's profitability saw a significant increase in 2012. Net income rose by 15% to $586 million, and diluted earnings per share grew by 28% to $4.75. This improvement was driven by increased sales, gross profit margin expansion, and effective cost management.

O'Reilly's growth strategy focuses on aggressively opening new stores, growing sales in existing stores through superior customer service, selectively pursuing strategic acquisitions to consolidate the fragmented market, and continually enhancing store design and its e-commerce website.

O'Reilly is actively managing its capital structure through share repurchases and debt issuance. In 2012, the company repurchased $1.45 billion of its common stock and issued $300 million in senior notes. The company maintained compliance with its debt covenants, indicating a stable financial position.