Summary
O'Reilly Automotive, Inc. (ORLY) reported its first quarter 2013 financial results, showcasing a 4% increase in sales to $1.59 billion compared to the prior year. While overall comparable store sales saw a modest increase of 0.6% (or 1.9% adjusted for the leap year effect), this was primarily driven by an increase in average ticket values, particularly in higher-margin hard parts categories. This growth was somewhat tempered by a decrease in DIY customer transaction counts, reflecting ongoing macroeconomic pressures on consumer spending. The company continued its expansion, opening 66 net new stores in the quarter, bringing the total store count to 4,041. Net income rose by 5% to $154 million, resulting in diluted earnings per share of $1.36, a 19% increase year-over-year, boosted by robust share repurchase activity. Operationally, O'Reilly demonstrated improved gross profit margins, reaching 50.4% due to better inventory shrinkage and distribution center efficiencies. However, Selling, General, and Administrative (SG&A) expenses as a percentage of sales increased slightly, primarily due to deleverage from softer comparable store sales and costs associated with store expansion. Despite a slight decrease in cash from operations compared to the prior year, the company maintained a strong liquidity position with no outstanding borrowings under its $660 million revolving credit facility, and it continues to actively repurchase its own stock, indicating confidence in its financial health and future prospects.
Financial Highlights
46 data points| Revenue | $1.59B |
| Cost of Revenue | $786.35M |
| Gross Profit | $798.66M |
| SG&A Expenses | $547.58M |
| Operating Income | $251.08M |
| Interest Expense | $11.40M |
| Net Income | $154.33M |
| EPS (Basic) | $0.09 |
| EPS (Diluted) | $0.09 |
| Shares Outstanding (Basic) | 1.67B |
| Shares Outstanding (Diluted) | 1.70B |
Key Highlights
- 1Sales increased by 4% to $1.59 billion in Q1 2013 compared to Q1 2012.
- 2Comparable store sales grew by 0.6% (1.9% adjusted for leap year effect), driven by increased average ticket values.
- 3Net income rose by 5% to $154 million, with diluted EPS increasing by 19% to $1.36.
- 4The company opened 66 net new stores, expanding its total store count to 4,041.
- 5Gross profit margin improved to 50.4% due to better inventory management and DC efficiencies.
- 6Significant share repurchases continued, with $227.9 million invested in Q1 2013.
- 7The company maintained a strong liquidity position with no outstanding borrowings on its revolving credit facility.