Summary
O'Reilly Automotive, Inc. (ORLY) reported solid financial results for the nine months ended September 30, 2012, demonstrating continued growth and operational efficiency. Sales increased by 7% to $4.69 billion, driven by comparable store sales growth of 3.7% and the opening of 161 net new stores, bringing the total store count to 3,896. Gross profit also saw a significant increase of 10% to $2.35 billion, with gross margin improving to 50.0% from 48.7% in the prior year period, attributed to distribution center efficiencies, improved vendor negotiations, and better inventory shrinkage. Net income grew by 18% to $453 million, translating to diluted EPS of $3.60, up 30% year-over-year, reflecting effective cost management and share repurchases. The company maintained a strong liquidity position with $423 million in cash and cash equivalents and no outstanding borrowings on its $660 million revolving credit facility as of September 30, 2012. O'Reilly also actively managed its capital structure, issuing $300 million in 3.800% Senior Notes due 2022 and continuing its robust share repurchase program, which saw $1.13 billion invested in the first nine months of the year. The company appears well-positioned to navigate the current economic environment, leveraging its dual-market strategy and focus on customer service and operational excellence.
Financial Highlights
46 data points| Revenue | $1.60B |
| Cost of Revenue | $796.07M |
| Gross Profit | $805.49M |
| SG&A Expenses | $542.17M |
| Operating Income | $263.32M |
| Interest Expense | $10.45M |
| Net Income | $159.33M |
| EPS (Basic) | $0.09 |
| EPS (Diluted) | $0.09 |
| Shares Outstanding (Basic) | 1.78B |
| Shares Outstanding (Diluted) | 1.81B |
Key Highlights
- 1Sales increased by 7% to $4.69 billion for the nine months ended September 30, 2012, compared to the prior year period.
- 2Gross profit increased by 10% to $2.35 billion, with gross margin expanding to 50.0% from 48.7%, driven by operational efficiencies and vendor negotiations.
- 3Net income rose by 18% to $453 million for the nine-month period.
- 4Diluted earnings per share (EPS) grew by 30% to $3.60 for the nine months ended September 30, 2012.
- 5The company opened 161 net new stores, expanding its retail footprint to 3,896 locations.
- 6O'Reilly maintained a strong cash position and had no outstanding borrowings on its revolving credit facility.
- 7Share repurchases totaled $1.13 billion in the first nine months of the year, demonstrating a commitment to returning capital to shareholders.