Summary
O'Reilly Automotive, Inc. (ORLY) reported record revenues and earnings for the fourth quarter and full year ended December 31, 2006. This marks the 14th consecutive year of record performance for the company. Full-year revenue increased by 11.6% to $2.28 billion, driven by a 3.3% increase in same-store sales. Net income for the year rose 8.4% to $178.1 million, with diluted earnings per share (EPS) increasing 6.9% to $1.55 (or 10.7% on an adjusted basis, excluding a prior year tax benefit). The company also announced significant store expansion, adding 170 new stores in 2006 and planning for 190-195 new stores in 2007. This expansion is supported by solid operational metrics, including a gross margin of 44.1% for the year and consistent comparable store sales growth. O'Reilly continues to focus on customer service and strategic market expansion as key drivers for future success.
Key Highlights
- 114th consecutive year of record revenues and earnings reported for fiscal year 2006.
- 2Full-year 2006 revenue reached $2.28 billion, an 11.6% increase over 2005, with same-store sales growing 3.3%.
- 3Full-year 2006 net income was $178.1 million, an 8.4% increase, and diluted EPS was $1.55, a 6.9% increase (10.7% adjusted).
- 4The company opened 170 new stores in 2006 and plans to open 190-195 new stores in 2007, indicating continued expansion strategy.
- 5Operating margin was strong, with a gross margin of 44.1% for the year.
- 6The company has achieved 55 consecutive quarters of comparable store sales increases since its IPO in April 1993.
- 7O'Reilly emphasizes its commitment to customer service and strategic market expansion as core growth drivers.