10-QPeriod: Q1 FY2019

O REILLY AUTOMOTIVE INC Quarterly Report for Q1 Ended Mar 31, 2019

Filed May 6, 2019For Securities:ORLY

Summary

O'Reilly Automotive, Inc. (ORLY) reported solid results for the first quarter of 2019, demonstrating continued growth and operational strength. The company saw a 6% increase in sales, reaching $2.41 billion, driven by comparable store sales growth of 3.2% and contributions from new store openings and the acquisition of Bennett Auto Supply. Net income rose by 5% to $321 million, translating to a 12% increase in diluted earnings per share to $4.05. The company's robust performance is supported by its effective 'dual market strategy' serving both DIY and professional customers, with positive contributions from average ticket values despite slightly negative transaction counts. ORLY continues to expand its store footprint, with plans for significant net new store openings in 2019. The balance sheet remains strong, with healthy operating cash flow generation and ample availability under its revolving credit facility, positioning the company well for continued investment in growth and shareholder returns.

Financial Highlights

45 data points
Beta

Revenue

$2.41B

53.1% Gross Margin

Net Income

$321.15M

13.3% Net Margin

EPS (Diluted)

$0.27

Total Assets

$10.06B

Cash & Equivalents

$56.72M

Free Cash Flow

$287.71M

Financial Statements
Beta
Revenue$2.41B
Cost of Revenue$1.13B
Gross Profit$1.28B
SG&A Expenses$834.50M
Operating Income$444.79M
Interest Expense$34.29M
Net Income$321.15M
EPS (Basic)$0.27
EPS (Diluted)$0.27
Shares Outstanding (Basic)1.18B
Shares Outstanding (Diluted)1.19B

Key Highlights

  • 1Total sales increased by 6% to $2.41 billion for the three months ended March 31, 2019, compared to the same period in 2018.
  • 2Comparable store sales increased by 3.2% for the three months ended March 31, 2019.
  • 3Net income grew by 5% to $321 million for the three months ended March 31, 2019.
  • 4Diluted earnings per share increased by 12% to $4.05 for the three months ended March 31, 2019.
  • 5The company opened 64 net new stores in the first quarter of 2019 and continues its expansion strategy.
  • 6Operating cash flow remained strong at $440.6 million for the quarter.
  • 7The company completed the asset purchase of Bennett Auto Supply, adding 33 stores in Florida.

Frequently Asked Questions

O'Reilly reported a 6% increase in sales, reaching $2.41 billion for the three months ended March 31, 2019, compared to $2.28 billion in the prior year's period.

Net income increased by 5% to $321 million for the first quarter of 2019, and diluted earnings per share saw a significant 12% increase to $4.05.

O'Reilly plans to open 200 to 210 net new stores in 2019 and is also integrating acquired stores, such as those from the Bennett Auto Supply acquisition, to achieve greater market penetration and expansion.

The company generated strong operating cash flow of $440.6 million in the first quarter of 2019 and has availability under its unsecured revolving credit facility, indicating sufficient liquidity to fund its capital needs and growth initiatives.