10-KPeriod: FY2021

O REILLY AUTOMOTIVE INC Annual Report, Year Ended Dec 31, 2021

Filed February 28, 2022For Securities:ORLY

Summary

O'Reilly Automotive, Inc. (ORLY) demonstrated strong performance in its 2021 fiscal year, as detailed in its 2022 10-K filing. The company reported a significant increase in sales, up 15% year-over-year, driven by robust comparable store sales growth of 13.3% and continued store network expansion with 168 net new stores opened. This growth was fueled by a strong dual-market strategy serving both DIY and professional customers, enhanced customer service, superior product availability through its extensive distribution network, and favorable industry trends such as the increasing average age of vehicles on the road. The company's financial health remains solid, with operating income increasing by 21% and net income rising by 24%. O'Reilly also actively managed its capital through share repurchases and demonstrated a commitment to reinvestment in its business through capital expenditures. The company's strategic focus on customer service, operational efficiency, and expansion positions it well for continued growth in the automotive aftermarket industry, despite facing typical industry risks like economic downturns and supply chain disruptions.

Financial Highlights

47 data points
Beta

Revenue

$13.33B

52.7% Gross Margin

Net Income

$2.16B

16.2% Net Margin

EPS (Diluted)

$2.07

Total Assets

$11.72B

Cash & Equivalents

$362.11M

Free Cash Flow

$2.76B

Financial Statements
Beta
Revenue$13.33B
Cost of Revenue$6.31B
Gross Profit$7.02B
SG&A Expenses$4.10B
Operating Income$2.92B
Interest Expense$144.77M
Net Income$2.16B
EPS (Basic)$2.09
EPS (Diluted)$2.07
Shares Outstanding (Basic)1.03B
Shares Outstanding (Diluted)1.04B

Key Highlights

  • 1O'Reilly Automotive reported a 15% increase in sales for fiscal year 2021, reaching $13.33 billion.
  • 2Comparable store sales for U.S. domestic stores open at least one year increased by 13.3%.
  • 3The company expanded its store footprint, opening 168 net new stores (165 in the U.S. and 3 in Mexico), bringing the total to 5,784 stores.
  • 4Operating income grew by 21% to $2.92 billion, and net income increased by 24% to $2.16 billion.
  • 5Diluted earnings per share saw a significant increase of 32%, reaching $31.10.
  • 6The company maintained strong liquidity, with cash provided by operating activities totaling $3.21 billion.
  • 7O'Reilly continued its share repurchase program, investing $2.48 billion in buybacks during the fiscal year.

Frequently Asked Questions

O'Reilly Automotive reported a 15% increase in sales for the fiscal year ended December 31, 2021, reaching $13.33 billion. This growth was driven by both comparable store sales increases and the opening of new stores.

In 2021, O'Reilly opened 168 net new stores, comprising 165 new stores in the U.S. and 3 new stores in Mexico. This expansion increased their total store count to 5,784 locations across 47 U.S. states and Mexico.

O'Reilly employs a dual-market strategy serving both Do-It-Yourself (DIY) and professional service provider customers. Their growth strategy includes aggressively opening new stores, growing sales in existing stores through superior customer service, selectively pursuing strategic acquisitions, and continually enhancing store design and location. They emphasize technically proficient 'Professional Parts People' to provide expert assistance.

As of December 31, 2021, O'Reilly had total debt of $3.83 billion. The company generated strong cash flow from operations, amounting to $3.21 billion for the year. They also actively repurchased shares, spending $2.48 billion on share repurchases during 2021, indicating a healthy financial position and a commitment to returning value to shareholders.