8-KOther Events

O REILLY AUTOMOTIVE INC 8-K Report (Oct 31, 2003)

Filed October 31, 2003For Securities:ORLY

Summary

O'Reilly Automotive, Inc. (ORLY) reported a strong third quarter for 2003, marking the 40th consecutive quarter of record revenues and earnings since its IPO. The company achieved a 14.6% increase in product sales to $412.2 million and a 22.6% rise in net income to $29.5 million, translating to a 20.0% growth in diluted EPS to $0.54. Key performance indicators were robust, with comparable store sales increasing by 8.3%. The company also demonstrated effective financial management, reducing outstanding indebtedness by over $80 million year-to-date due to positive free cash flow. This growth is supported by strategic expansion, with O'Reilly entering the Virginia market and growing its store count to 1,074 locations. The company's financial health is further evidenced by improvements in its debt-to-capital ratio and a slight increase in return on equity.

Key Highlights

  • 1Record revenues and earnings for the third quarter of 2003, extending a 40-quarter streak.
  • 2Third quarter net income increased 22.6% to $29.5 million, with diluted EPS up 20.0% to $0.54.
  • 3Product sales for Q3 2003 reached $412.2 million, a 14.6% increase year-over-year.
  • 4Comparable store sales grew by a strong 8.3% for the third quarter.
  • 5Company reduced outstanding indebtedness by over $80 million year-to-date, driven by positive free cash flow.
  • 6Expanded operations into Virginia, bringing the total store count to 1,074 as of September 30, 2003.
  • 7Gross profit margin improved slightly to 42.6% from 42.3% in the prior year's third quarter.

Frequently Asked Questions

For the third quarter of 2003, O'Reilly reported record revenues of $412.2 million, a 14.6% increase year-over-year. Net income rose 22.6% to $29.5 million, and diluted earnings per share grew 20.0% to $0.54. Comparable store sales increased by 8.3%.

The company highlighted positive free cash flow, which has enabled them to reduce outstanding indebtedness by over $80 million year-to-date. This financial discipline is reflected in a reduced debt-to-capital ratio of 12.9% as of September 30, 2003, down from 20.4% in the prior year.

O'Reilly continues to execute its growth strategy through store expansion. They entered the Virginia market during the third quarter, bringing their total store count to 1,074 locations across 18 states. The company added 33 net new stores year-to-date.

The gross profit margin for the third quarter of 2003 was 42.6% of product sales, a slight improvement from 42.3% in the same period of 2002. This indicates effective cost management in relation to sales growth.