10-KPeriod: FY2015

O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2015

Filed February 26, 2016For Securities:ORLY

Summary

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.

Financial Highlights

45 data points
Beta

Revenue

$7.97B

52.3% Gross Margin

Net Income

$931.22M

11.7% Net Margin

EPS (Diluted)

$0.61

Total Assets

$6.68B

Cash & Equivalents

$116.30M

Free Cash Flow

$931.47M

Financial Statements
Beta
Revenue$7.97B
Cost of Revenue$3.80B
Gross Profit$4.16B
SG&A Expenses$2.65B
Operating Income$1.51B
Interest Expense$57.13M
Net Income$931.22M
EPS (Basic)$0.62
EPS (Diluted)$0.61
Shares Outstanding (Basic)1.50B
Shares Outstanding (Diluted)1.52B

Key Highlights

  • 1Achieved a 10% increase in sales to $7.97 billion in fiscal year 2015.
  • 2Reported a 20% year-over-year increase in net income to $931 million.
  • 3Expanded store network by 205 net new stores, reaching a total of 4,571 locations.
  • 4Delivered strong comparable store sales growth of 7.5%.
  • 5Increased operating income by 19% to $1.51 billion, improving operating margin to 19.0%.
  • 6Returned significant capital to shareholders through share repurchases totaling $1.1 billion for the year.
  • 7Maintained a strong focus on customer service and operational efficiency through its "dual market strategy" and skilled workforce.

Frequently Asked Questions

O'Reilly Automotive Inc. operates a "dual market strategy," serving both Do-It-Yourself (DIY) customers and professional service providers. This strategy leverages an extensive product line, superior customer service, technically proficient store personnel, and a strategic distribution network to capture market share in the automotive aftermarket industry.

In 2015, O'Reilly demonstrated robust financial performance with sales increasing by 10% to $7.97 billion and net income growing by 20% to $931 million. Operating income saw a significant 19% increase to $1.51 billion, reflecting improved operational efficiency and strong comparable store sales growth.

O'Reilly's growth strategy primarily involves aggressively opening new stores to consolidate the fragmented automotive aftermarket, growing sales in existing stores through enhanced customer service and product availability, and selectively pursuing strategic acquisitions. The company also focuses on continually enhancing store design and its e-commerce website.

The company utilizes a strategic regional tiered distribution network, comprising 26 distribution centers and 297 hub stores, to provide stores with same-day or overnight access to a broad inventory. This network is designed for efficient inventory control and management, ensuring high product availability for customers.