Summary
O'Reilly Automotive, Inc. (ORLY) reported a strong second quarter for 2013, demonstrating robust sales growth and improved profitability. Sales increased by 10% year-over-year for the three months ended June 30, 2013, driven by a solid 6.5% comparable store sales growth, indicating healthy demand and effective sales strategies. This sales momentum, coupled with improved gross profit margins and disciplined expense management, led to a significant 22% increase in operating income. Net income also saw a substantial rise of 21%, with diluted Earnings Per Share (EPS) growing by 37% compared to the prior year's quarter. The company continues to execute its growth strategy through new store openings, planning for 190 net new stores in 2013. O'Reilly also maintained a strong liquidity position, with no outstanding borrowings under its revolving credit facility at the end of the quarter, despite an increase in long-term debt primarily due to a new senior note issuance. Shareholder returns remain a focus, as evidenced by continued share repurchases and an increased authorization for the buyback program. Overall, the financial results suggest a company performing well within its industry, effectively navigating the economic environment and executing its strategic initiatives.
Financial Highlights
46 data points| Revenue | $1.71B |
| Cost of Revenue | $843.09M |
| Gross Profit | $871.88M |
| SG&A Expenses | $575.61M |
| Operating Income | $296.26M |
| Interest Expense | $11.47M |
| Net Income | $177.13M |
| EPS (Basic) | $0.11 |
| EPS (Diluted) | $0.11 |
| Shares Outstanding (Basic) | 1.65B |
| Shares Outstanding (Diluted) | 1.68B |
Key Highlights
- 1Sales for the three months ended June 30, 2013, increased by 10% to $1.71 billion, driven by a 6.5% increase in comparable store sales.
- 2Gross profit margin improved to 50.8% from 49.9% in the prior year's quarter, contributing to a 22% increase in operating income.
- 3Net income rose by 21% to $177 million, and diluted Earnings Per Share (EPS) increased by 37% to $1.58 from $1.15 year-over-year.
- 4The company opened 47 net new stores in the quarter, continuing its expansion strategy with a target of 190 net new stores for the full year 2013.
- 5O'Reilly maintained a strong liquidity position with $365.9 million in cash and cash equivalents and no outstanding borrowings on its revolving credit facility as of June 30, 2013.
- 6The company issued $300 million of 3.850% Senior Notes due 2023 on June 20, 2013, contributing to an increase in long-term debt.
- 7Shareholder value was supported by share repurchases totaling $274 million in the quarter, with an additional $500 million authorized for the buyback program.