01—Abstract
Summary
Summary of the 10-K filed February 28, 2022. Cited figures are marked; the original filing is the authoritative source.
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%a 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.
02—Key points
Key Highlights
- O'Reilly Automotive reported a 15% increase in sales for fiscal year 2021, reaching $13.33 billion.
- Comparable store sales for U.S. domestic stores open at least one year increased by 13.3%.
- The 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.
- Operating income grew by 21% to $2.92 billion, and net income increased by 24% to $2.16 billion.
- Diluted earnings per share saw a significant increase of 32%, reaching $31.10.
- The company maintained strong liquidity, with cash provided by operating activities totaling $3.21 billion.
- O'Reilly continued its share repurchase program, investing $2.48 billion in buybacks during the fiscal year.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2021, O Reilly Automotive Inc kept $0.16.
- Revenue$13.33B100.0%
- Cost of revenue−$6.31B47.3%
- Gross profit$7.02B52.7%
- Operating costs−$4.10B30.8%
- Operating income$2.92B21.9%
- Interest, other & tax−$752.5M5.6%
- Net income$2.16B16.2%
Where FY2021 revenue went
$13.33B- Cost of revenue: $6.31B, 47% of revenue
- SG&A: $4.10B, 31% of revenue
- Net income: $2.16B, 16% of revenue
- Interest, other & tax: $752.5M, 5.6% of revenue
Kept 16% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 28, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $13.33B$11.60B | +14.8% |
| Cost of Revenue | $6.31B$5.52B | +14.3% |
| Gross Profit | $7.02B$6.09B | +15.4% |
| SG&A Expenses | $4.10B$3.67B | +11.9% |
| Operating Income | $2.92B$2.42B | +20.6% |
| Interest Expense | $144.77M$161.13M | −10.2% |
| Net Income | $2.16B$1.75B | +23.5% |
| EPS (Basic) | $2.09$1.58 | +32.2% |
| EPS (Diluted) | $2.07$1.57 | +32.2% |
| Shares Outstanding (Basic) | 1.03B1.11B | −6.6% |
| Shares Outstanding (Diluted) | 1.04B1.12B | −6.5% |
05—Questions
Frequently Asked Questions
What was O'Reilly Automotive's overall sales performance in 2021?
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.
How did O'Reilly expand its store network in 2021?
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.
What is O'Reilly's strategy for growth and customer service?
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.
What is the company's financial position regarding debt and cash flow?
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.
06—Continue