Summary
O'Reilly Automotive, Inc. (ORLY) reported strong financial performance for the second quarter and first half of 2014. Sales increased by 8% year-over-year for both periods, driven by comparable store sales growth and the opening of new locations. Gross profit also saw a significant increase of 9%, with margins improving to 51.5% for the quarter, attributed to cost improvements and a favorable product mix. Operating income and net income showed robust growth of 14% and 16%, respectively, for the quarter, reflecting efficient cost management and increased sales. Financially, the company demonstrated solid liquidity, with a substantial increase in cash and cash equivalents, up to $453.4 million from $231.3 million at the end of 2013. This was supported by strong operating cash flows of $655.5 million for the first half of the year. O'Reilly continued its expansion strategy, opening 93 net new stores in the first half of 2014, bringing the total store count to 4,257. The company also maintained a healthy financial position, with debt covenants remaining in compliance. Shareholder returns were supported by ongoing share repurchases, with $346.1 million remaining under the program as of June 30, 2014.
Financial Highlights
44 data points| Revenue | $1.85B |
| Cost of Revenue | $896.21M |
| Gross Profit | $950.88M |
| SG&A Expenses | $614.40M |
| Operating Income | $336.47M |
| Interest Expense | $12.82M |
| Net Income | $205.65M |
| EPS (Basic) | $0.13 |
| EPS (Diluted) | $0.13 |
| Shares Outstanding (Basic) | 1.59B |
| Shares Outstanding (Diluted) | 1.61B |
Key Highlights
- 1Sales increased by 8% to $1.85 billion for the three months ended June 30, 2014, and by 8% to $3.58 billion for the six months ended June 30, 2014.
- 2Comparable store sales increased by 5.1% for the three months and 5.7% for the six months ended June 30, 2014.
- 3Gross profit increased by 9% to $951 million for the three months and $1.83 billion for the six months, with gross margin improving to 51.5% and 51.1% respectively.
- 4Net income rose by 16% to $206 million for the three months and 14% to $380 million for the six months.
- 5Diluted earnings per share increased by 21% to $1.91 for the three months and 20% to $3.52 for the six months.
- 6Cash and cash equivalents significantly increased to $453.4 million as of June 30, 2014.
- 7The company opened 93 net new stores in the first six months of 2014, ending the period with 4,257 stores.