10-QPeriod: Q3 FY2002

O REILLY AUTOMOTIVE INC Quarterly Report for Q3 Ended Sep 30, 2002

Filed November 12, 2002For Securities:ORLY

Summary

O'Reilly Automotive, Inc. filed its quarterly report on Form 10-Q for the period ending September 30, 2002. The filing provides an overview of the company's financial position and operational highlights. As a leading automotive aftermarket retailer, O'Reilly's performance in this quarter is crucial for investors to assess its growth trajectory and competitive standing in a dynamic market. Investors should pay close attention to the company's ability to manage competition from various players, including national chains, independent stores, and mass merchandisers. Furthermore, the report touches upon the critical factors influencing future growth, such as the pace of new store openings, economic conditions, and the retention of key personnel. The concentration of ownership by management also presents a unique dynamic for shareholders to consider regarding corporate control and decision-making.

Key Highlights

  • 1The company is filing its quarterly report for the period ending September 30, 2002.
  • 2O'Reilly operates in the highly competitive automotive aftermarket products industry.
  • 3Key growth drivers include the accelerated opening of new stores.
  • 4Future growth is subject to various external factors like weather, zoning, economic conditions, and the availability of qualified personnel.
  • 5The company acknowledges dependence on key personnel, including David E. O'Reilly, Lawrence P. O'Reilly, Ted F. Wise, and Greg Henslee.
  • 6Executive officers and directors collectively own a substantial percentage of common stock, giving them significant voting control.
  • 7The report includes certifications from the CEO and CFO, affirming the accuracy and fairness of the financial statements and disclosure controls.

Frequently Asked Questions

O'Reilly faces significant competition from national and regional automotive parts chains, independently owned parts stores (some affiliated with distributors), automobile dealerships, mass merchandise retailers, discount chains, and national warehouse distributors. Some competitors possess greater financial resources.

The company believes that opening additional stores at an accelerated rate is a significant factor for future growth. However, this growth is contingent upon factors beyond O'Reilly's control, including weather conditions, zoning and site development issues, the availability of qualified management personnel, and general business and economic conditions. There is no assurance that the current growth rate can be maintained.

Executive officers and directors collectively own a substantial percentage of O'Reilly's common stock. This concentration of ownership grants them effective voting control over the company, including the election of directors and decisions on matters such as mergers, asset sales, or changes in control.

Yes, the filing highlights the company's dependence on certain key personnel, specifically naming David E. O'Reilly, Lawrence P. O'Reilly, Ted F. Wise, and Greg Henslee. The loss of any of these individuals could materially and adversely affect the business and its results. Additionally, attracting and retaining qualified personnel is crucial for managing the company's growth strategy.