8-KCorporate ChangesExhibits & Filings

O REILLY AUTOMOTIVE INC 8-K Report, Bylaw Amendment (Jun 3, 2005)

Filed June 3, 2005For Securities:ORLY

Summary

This 8-K filing by O'Reilly Automotive, Inc. (ORLY) on June 3, 2005, details significant amendments to its Restated Articles of Incorporation. The primary action taken was the shareholder approval and subsequent filing of an amendment to increase the authorized shares of capital stock. Specifically, the total authorized shares were raised from 90 million to 250 million, comprising 245 million shares of common stock and 5 million shares of preferred stock, each with a par value of $0.01. Furthermore, the filing outlines a reclassification of existing common stock. Each outstanding share of common stock with a par value of $0.50 was converted into 120.15353 shares of common stock with a par value of $0.01. This reclassification, effective May 27, 2005, also included provisions for cash payments in lieu of fractional shares. The report also includes the full text of the Restated Articles of Incorporation, which detail various provisions related to preferred stock, director responsibilities, indemnification, and corporate powers.

Key Highlights

  • 1O'Reilly Automotive, Inc. increased its authorized capital stock from 90 million to 250 million shares.
  • 2The authorized common stock was increased to 245 million shares, with 5 million shares authorized for preferred stock.
  • 3A stock reclassification occurred where each $0.50 par value common share was converted into 120.15353 shares of $0.01 par value common stock.
  • 4The amendment to the Articles of Incorporation was approved by shareholders and filed with the Missouri Secretary of State on May 27, 2005.
  • 5The filing includes the full text of the Restated Articles of Incorporation, detailing provisions for Series A Junior Participating Preferred Stock.
  • 6The Restated Articles of Incorporation also address corporate governance, director indemnification, and limitations on director liability.

Frequently Asked Questions

While the filing doesn't explicitly state the reason, increasing authorized shares is often done to provide flexibility for future growth opportunities, such as potential acquisitions, stock splits, employee stock option plans, or other capital-raising initiatives without requiring immediate shareholder approval for each instance.

Each existing shareholder holding common stock with a $0.50 par value saw their share count increase significantly by a factor of approximately 120.15. For example, 100 shares of the old $0.50 par value stock became approximately 12,015 shares of the new $0.01 par value stock. Shareholders would have received cash for any fractional shares resulting from this conversion.

The Series A Junior Participating Preferred Stock is a specific class of preferred stock that has certain dividend and voting rights. It was established in 2002 and its terms are detailed in the restated articles. Key features include participation in dividends, a significant voting power (100 votes per share), and specific rights during periods of dividend arrears, which could allow preferred shareholders to elect directors. This type of stock is often used as a corporate defense mechanism.

No, this particular 8-K filing is focused on corporate governance and structural changes related to the company's charter documents. It does not contain financial statements or operational results, so it does not provide direct insights into the company's current financial performance.