8-KRegulation FDExhibits & Filings

O REILLY AUTOMOTIVE INC 8-K Report, Regulation FD Disclosure (Mar 2, 2006)

Filed March 2, 2006For Securities:ORLY

Summary

O'Reilly Automotive, Inc. (ORLY) reported record revenues and earnings for both the fourth quarter and the full year ended December 31, 2005. This marks the 13th consecutive year of record performance, highlighting the company's consistent growth trajectory. Key financial metrics show significant year-over-year improvements, with revenue increasing by 18.8% and diluted earnings per share (EPS) rising by 38.1% for the full year, before considering certain accounting adjustments. The company also demonstrated strong comparable store sales growth of 7.5% for the year, indicating healthy performance in its existing store base. Expansion efforts are also on track, with plans to open 170-175 new stores in 2006 and a new distribution center. These results underscore O'Reilly's ability to drive both organic growth and strategic expansion in the automotive aftermarket sector.

Key Highlights

  • 1Reported 13th consecutive year of record revenues and earnings.
  • 2Achieved a 7.5% increase in comparable store product sales for the full year 2005.
  • 3Full-year 2005 revenue reached $2.05 billion, an 18.8% increase over 2004.
  • 4Diluted EPS for the full year 2005 increased 38.1% to $1.45 (before cumulative accounting effect).
  • 5Fourth-quarter 2005 net income saw a significant 79.5% increase year-over-year.
  • 6Plans to open 170-175 new stores in 2006 and construct a new distribution center.
  • 7Gross profit margin improved to 43.6% for the full year 2005 from 43.2% in 2004.

Frequently Asked Questions

O'Reilly's strong performance in 2005 is attributed to a combination of factors including sustained comparable store sales growth, effective cost management leading to improved operating margins, and strategic expansion through new store openings and acquisitions. The company also benefited from a favorable resolution of prior tax uncertainties and a generally robust automotive aftermarket.

The company announced plans to open 170 to 175 new stores in 2006, which represents a significant acceleration compared to the net addition of 140 stores in 2005. This aggressive expansion, along with the development of a new distribution center in Indianapolis, signals a strong commitment to increasing market share and operational capacity.

Yes, the financial results include several adjustments. For 2005, there was a $0.05 per share benefit from the resolution of prior tax uncertainties and a $0.01 per share charge for stock option acceleration. For 2004, there was a $0.04 per share adverse impact from lease accounting corrections. The company provides adjusted earnings per share figures to help investors understand ongoing operational performance, excluding these items.

While this specific filing announces past results, the company indicated plans for significant new store growth in 2006 and the construction of a new distribution center. The CEO expressed satisfaction with the results and the team's commitment to service and selection, suggesting a positive outlook for continued growth driven by both store expansion and same-store sales increases.