10-QPeriod: Q2 FY2003

O REILLY AUTOMOTIVE INC Quarterly Report for Q2 Ended Jun 30, 2003

Filed August 8, 2003For Securities:ORLY

Summary

O'Reilly Automotive, Inc. (ORLY) filed its quarterly report on August 7, 2003, for the period ending June 30, 2003. The filing indicates the company is an accelerated filer and has made all required filings for the preceding 12 months. As of June 30, 2003, the company had 53,933,788 shares of common stock outstanding, with a market value of approximately $1.8 billion held by non-affiliates. While the full financial statements are not detailed in the provided text, the filing structure suggests a review of financial statements, management's discussion and analysis of results and financial condition, and quantitative disclosures about market risk. Importantly, the filing includes extensive risk factors, highlighting competition, the dependence on achieving growth objectives through store expansion and acquisitions, sensitivity to regional economic and weather conditions (particularly in Texas), reliance on key personnel, concentration of ownership by management, potential stock price volatility, and the impact of shares eligible for future sale.

Key Highlights

  • 1O'Reilly Automotive, Inc. (ORLY) filed its Q2 2003 10-Q on August 7, 2003.
  • 2The company has 53,933,788 shares outstanding as of June 30, 2003.
  • 3The market value of non-affiliate shares was approximately $1.8 billion on June 30, 2003.
  • 4The filing outlines numerous risk factors including intense competition, reliance on growth strategies, economic and weather sensitivity, and dependence on key personnel.
  • 5ORLY is identified as an accelerated filer, indicating its size and reporting history.
  • 6The company's business is particularly sensitive to economic and weather conditions in the Central and Southern United States, with a significant concentration of stores in Texas (approx. 36%).
  • 7The filing includes CEO and CFO certifications pursuant to the Sarbanes-Oxley Act of 2002, demonstrating compliance with new governance standards.

Frequently Asked Questions

The primary risks highlighted include intense competition from various retail and wholesale suppliers, the company's dependence on achieving future growth through store openings and acquisitions, sensitivity to regional economic and weather conditions (especially in Texas), reliance on key personnel, potential stock price volatility, and the impact of future share sales.

The company plans to achieve future growth through opening additional stores at an accelerated rate and through acquisitions. Risks associated with growth include challenges in site development, securing qualified personnel, potential difficulties in identifying suitable acquisition candidates at favorable terms, management distraction, retention of acquired personnel, and the successful integration of acquired businesses.

O'Reilly's stores are located in the Central and Southern United States. The business is sensitive to regional economic and weather conditions, with approximately 36% of its stores located in Texas. Severe weather can reduce sales, particularly to DIY customers.

The filing notes that executive officers and directors collectively own a substantial percentage of outstanding shares, giving them effective voting control. It also mentions that the stock price may be subject to volatile fluctuations due to market conditions or failure to meet analyst expectations, and that such volatility can lead to class action litigation.