8-KRegulation FDExhibits & Filings

O REILLY AUTOMOTIVE INC 8-K Report, Regulation FD Disclosure (Apr 26, 2006)

Filed April 26, 2006For Securities:ORLY

Summary

O'Reilly Automotive, Inc. (ORLY) reported a strong first quarter for 2006, continuing its trend of record revenues and earnings for the 50th consecutive quarter since its public offering. The company announced a 22.1% increase in net income to $40.6 million and a 16.7% rise in diluted earnings per share to $0.35. This growth was driven by a 15.1% increase in product sales, reaching $536.5 million, and an improvement in gross profit margin to 43.5% from 42.1% in the prior year's quarter. Despite challenges like unseasonably warm winter temperatures, comparable store sales saw a 3.8% increase. The company is actively expanding its footprint, adding 36 new stores in the quarter and preparing for the opening of a new distribution center in Indianapolis. O'Reilly remains on track with its aggressive expansion plans, aiming to open 170 to 175 new stores in 2006. These results and strategic initiatives underscore the company's consistent execution and focus on profitable growth.

Key Highlights

  • 1Record revenues and earnings for the 50th consecutive quarter.
  • 2Net income increased by 22.1% to $40.6 million for Q1 2006.
  • 3Diluted earnings per share rose 16.7% to $0.35.
  • 4Product sales grew 15.1% to $536.5 million.
  • 5Gross profit margin improved to 43.5% from 42.1% year-over-year.
  • 6Comparable store sales increased by 3.8%.
  • 7Company opened 36 new stores and plans 170-175 new stores in 2006, supported by a new distribution center.

Frequently Asked Questions

For the first quarter of 2006, O'Reilly Automotive reported record revenues and earnings. Net income increased by 22.1% to $40.6 million, and diluted earnings per share grew by 16.7% to $0.35. Product sales were up 15.1% to $536.5 million, with gross profit margin improving to 43.5%.

Despite unseasonably warm weather, comparable store sales, which include stores open for at least one year, increased by 3.8% for the first quarter of 2006.

O'Reilly Automotive continues its aggressive expansion, opening 36 new stores in the first quarter. The company is on track to open 170 to 175 new stores in 2006, further supported by the upcoming opening of a new distribution center in Indianapolis.

The filing shows an improvement in key financial ratios. Debt-to-capital decreased to 7.7% from 9.2% year-over-year, and return on equity increased to 15.2% from 14.2%. Inventory turnover remained stable at 1.7.