Summary
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.
Financial Highlights
48 data points| Revenue | $6.65B |
| Cost of Revenue | $3.28B |
| Gross Profit | $3.37B |
| SG&A Expenses | $2.27B |
| Operating Income | $1.10B |
| Interest Expense | $49.07M |
| Net Income | $670.29M |
| EPS (Basic) | $0.41 |
| EPS (Diluted) | $0.40 |
| Shares Outstanding (Basic) | 1.64B |
| Shares Outstanding (Diluted) | 1.67B |
Key Highlights
- 1Achieved an 8% increase in sales, reaching $6.65 billion in 2013, supported by a 4.3% comparable store sales growth.
- 2Expanded store count to 4,166 locations across 42 states, opening 190 net new stores in 2013.
- 3Reported a 14% increase in net income to $670 million, with diluted EPS growing 27% to $6.03.
- 4Maintained strong gross profit margins at 50.7%, driven by cost improvements and distribution efficiencies.
- 5Successfully managed Selling, General, and Administrative (SG&A) expenses, which decreased as a percentage of sales to 34.1%.
- 6Continued significant share repurchases, investing $933 million in 2013 to buy back stock.
- 7Demonstrated a robust and well-managed supply chain and distribution network supporting store growth.