Summary
O'Reilly Automotive, Inc. (ORLY) reported strong financial performance for the nine months ended September 30, 2011, demonstrating robust sales growth and improved profitability. Total sales increased by 8% year-over-year, driven by both comparable store sales growth and the opening of new locations. The company successfully expanded its store count, ending the period with 3,707 stores. Profitability saw significant gains, with net income up 23% for the nine-month period. This improvement was supported by a higher gross profit margin, benefiting from a favorable product mix and improved inventory management, and a decrease in selling, general, and administrative expenses as a percentage of sales due to operational efficiencies and leverage. The company also refinanced its debt, issuing new senior notes and establishing a new unsecured revolving credit facility, strengthening its capital structure and extending its debt maturity profile. Furthermore, ORLY significantly increased its share repurchase program, demonstrating a commitment to returning value to shareholders. The company also settled a legacy DOJ investigation related to the CSK acquisition, incurring a one-time penalty but concluding a significant legal overhang. Overall, the results indicate a company executing well on its growth strategy while managing its financial resources effectively.
Financial Highlights
46 data points| Revenue | $1.54B |
| Cost of Revenue | $781.24M |
| Gross Profit | $754.21M |
| SG&A Expenses | $513.16M |
| Operating Income | $241.05M |
| Interest Expense | $7.21M |
| Net Income | $148.44M |
| EPS (Basic) | $0.07 |
| EPS (Diluted) | $0.07 |
| Shares Outstanding (Basic) | 1.99B |
| Shares Outstanding (Diluted) | 2.03B |
Key Highlights
- 1Total sales increased by 8% to $4.40 billion for the nine months ended September 30, 2011, compared to the prior year period.
- 2Net income grew by 23% to $385 million for the nine months ended September 30, 2011, compared to the prior year period.
- 3Comparable store sales increased by 4.9% for the nine months ended September 30, 2011.
- 4The company opened 149 new stores and closed 12 stores during the nine months ended September 30, 2011, expanding its total store count to 3,707.
- 5O'Reilly issued $500 million in 4.875% Senior Notes due 2021 and $300 million in 4.625% Senior Notes due 2021, refinancing its debt structure.
- 6The share repurchase program was increased to $1 billion, and $840 million was repurchased during the first nine months of 2011.
- 7The company paid a $20.9 million penalty to settle a legacy DOJ investigation related to the CSK acquisition, concluding this matter.