Summary
O'Reilly Automotive, Inc. (ORLY) reported a solid first quarter ended March 31, 2011, with net sales increasing by 8% to $1.38 billion compared to the prior year period. This growth was driven by comparable store sales increasing by 5.7% and the opening of 55 new stores, expanding their footprint to 3,613 locations across 39 states. The company's strategic focus on serving both DIY and professional service providers continues to yield positive results, evidenced by an increase in both transaction counts and average ticket values. The company successfully refinanced its debt during the quarter, issuing $500 million in Senior Notes and establishing a new $750 million unsecured revolving credit facility. While this resulted in significant one-time charges related to debt issuance costs and interest rate swap terminations, adjusted net income saw a substantial increase of 22%. The company also announced a new $500 million share repurchase program, demonstrating confidence in its financial position and commitment to returning value to shareholders. Despite some ongoing legal matters related to the CSK acquisition, management believes these will not have a material adverse effect on the company's financial health.
Financial Highlights
46 data points| Revenue | $1.38B |
| Cost of Revenue | $712.96M |
| Gross Profit | $669.78M |
| SG&A Expenses | $473.34M |
| Operating Income | $196.44M |
| Interest Expense | $5.24M |
| Net Income | $102.47M |
| EPS (Basic) | $0.05 |
| EPS (Diluted) | $0.05 |
| Shares Outstanding (Basic) | 2.11B |
| Shares Outstanding (Diluted) | 2.14B |
Key Highlights
- 1Net sales increased 8% year-over-year to $1.38 billion for the first quarter of 2011.
- 2Comparable store sales grew by 5.7%, indicating strong performance in existing locations.
- 3The company expanded its retail footprint, opening 55 new stores and operating a total of 3,613 stores by the end of the quarter.
- 4O'Reilly completed a significant refinancing, issuing $500 million in Senior Notes and securing a $750 million unsecured revolving credit facility.
- 5A new $500 million share repurchase program was authorized, with $145 million executed in the first quarter.
- 6Adjusted net income increased by 22% year-over-year, demonstrating operational strength excluding one-time financing charges.
- 7The company maintains compliance with all debt covenants and anticipates opening approximately 170 net new stores in 2011.