Summary
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.
Financial Highlights
45 data points| Revenue | $8.59B |
| Cost of Revenue | $4.08B |
| Gross Profit | $4.51B |
| SG&A Expenses | $2.81B |
| Operating Income | $1.70B |
| Interest Expense | $70.93M |
| Net Income | $1.04B |
| EPS (Basic) | $0.72 |
| EPS (Diluted) | $0.72 |
| Shares Outstanding (Basic) | 1.43B |
| Shares Outstanding (Diluted) | 1.45B |
Key Highlights
- 1O'Reilly Automotive Inc. reported an 8% increase in sales, reaching $8.59 billion for the year ended December 31, 2016.
- 2Comparable store sales increased by 4.8%, indicating healthy growth in existing locations.
- 3The company expanded its store footprint by opening 210 net new stores and acquiring 48 Bond Auto Parts stores, ending the year with 4,829 locations.
- 4O'Reilly's dual-market strategy (serving both DIY and professional customers) continued to be effective, with professional service provider sales growing faster than DIY sales.
- 5Operating income increased by 12% to $1.70 billion, and net income rose by 11% to $1.04 billion.
- 6The company repurchased approximately $1.5 billion of its common stock in 2016 under its share repurchase program.
- 7O'Reilly maintained strong financial health with a consolidated fixed charge coverage ratio of 6.15x, indicating robust ability to meet debt obligations.