O'REILLY AUTOMOTIVE, INC 
By O'Reilly Automotive, Inc. (?O'Reilly? or ?the Company?) (Nasdaq: ORLY) today announced revenues and earnings for the second quarter ended June 30, 2007, representing 55 consecutive quarters of record revenues, earnings and comparable store sales increases for O'Reilly since becoming a public company in April 1993.
Net income for the second quarter ended June 30, 2007, totaled $51.9 million, up 5.2% from $49.3 million for the same period in 2006. Diluted earnings per common share for the second quarter of 2007 increased 4.7% to $0.45 on 116.1 million shares compared to $0.43 for the second quarter of 2006 on 115.2 million shares. Sales for the three months ended June 30, 2007 totaled $643 million, up 8.8% from $591 million for the same period a year ago. Gross profit for the second quarter of 2007 increased to $287 million (or 44.7% of sales) from $261 million (or 44.1% of sales) for the second quarter of 2006, representing an increase of 10.1%. Operating, Selling, General and Administrative (?OSG&A?) expenses increased to $206 million (or 32.0% of sales) for the second quarter of 2007 from $183 million (or 30.9% of sales) for the second quarter of 2006, representing an increase of 12.6%.
Net income for the first six months of 2007 totaled $100.3 million, up 11.6% from $89.9 million for the same period a year ago. Diluted earnings per common share for the first six months of 2007 increased 11.5% to $0.87 on 115.9 million shares compared to $0.78 a year ago on 114.9 million shares. Sales for the first six months of 2007 totaled $1.26 billion, up 11.4% from $1.13 billion for the same period a year ago. Gross profit for the first six months of 2007 increased to $556 million (or 44.3% of sales) from $494 million (or 43.8% of sales) for the same period a year ago, representing an increase of 12.6%. OSG&A expenses increased to $398 million (or 31.7% of sales) for the first six months of 2007 from $351 million (or 31.1% of sales) for the same period a year ago, representing an increase of 13.3%.
Comparable store sales for stores open at least one year increased 2.0% and 4.3% for the second quarter and first six months of 2007, respectively.
?Considering the difficult economic conditions and unfavorable weather in several of our key markets, we're pleased with the effort our Team put into delivering another successful and profitable quarter,? stated Greg Henslee, CEO and Co-President. ?We continue to focus on opportunities to improve our operating efficiency while maintaining our commitment to providing the very best customer service in the industry.?
Ted Wise, COO and Co-President, stated, ?Team O'Reilly continues to focus on growth opportunities with the opening of 44 net new stores in the second quarter, including our first stores in Ohio. We have also completed the successful relocation of our Minnesota distribution center to a larger, state of the art facility, which will allow us to further expand in the upper Midwest.?
The Company will host a conference call Wednesday, July 25, 2007, at 10:00 a.m. central time to discuss its results as well as future expectations. Investors may listen to the conference call live on the Company's web site, www.oreillyauto.com, by clicking on ?Investor Relations? then ?News Room.?
O'Reilly Automotive, Inc. is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States, serving both the do-it-yourself and professional installer markets. Founded in 1957 by the O'Reilly family, the Company operated 1,731 stores in the states of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nebraska, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Virginia, Wisconsin and Wyoming as of June 30, 2007.
The Company claims the protection of the safe-harbor for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by forward-looking words such as ?expect,? ?believe,? ?anticipate,? ?should,? ?plan,? ?intend,? ?estimate,? ?project,? ?will? or similar words. In addition, statements contained within this press release that are not historical facts are forward-looking statements, such as statements discussing among other things, expected growth, store development and expansion strategy, business strategies, future revenues and future performance. These forward-looking statements are based on estimates, projections, beliefs and assumptions and are not guarantees of future events and results. Such statements are subject to risks, uncertainties and assumptions, including, but not limited to, competition, product demand, the market for auto parts, the economy in general, inflation, consumer debt levels, governmental approvals, our ability to hire and retain qualified employees, risks associated with the integration of acquired businesses, weather, terrorist activities, war and the threat of war. Actual results may materially differ from anticipated results described or implied in these forward-looking statements. Please refer to the Risk Factors sections of the Company's Form 10-K for the year ended December 31, 2006, for more details.
O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) | ||||||||
| June 30, 2007 | June 30, 2006 | December 31, 2006 | ||||||
| (Unaudited) | (Unaudited) | (Note) | ||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 92,484 | $ | 55,247 | $ | 29,903 | ||
| Accounts receivable, net | 92,202 | 82,612 | 81,048 | |||||
| Amounts receivable from vendors | 48,839 | 62,334 | 47,790 | |||||
| Inventory | 853,127 | 799,193 | 812,938 | |||||
| Other current assets | 19,971 | 15,211 | 28,997 | |||||
| Total current assets | 1,106,623 | 1,014,597 | 1,000,676 | |||||
| Property and equipment, at cost | 1,349,332 | 1,108,717 | 1,214,854 | |||||
| Accumulated depreciation and amortization | 361,391 | 300,867 | 331,759 | |||||
| Net property and equipment | 987,941 | 807,850 | 883,095 | |||||
| Notes receivable, less current portion | 28,047 | 32,532 | 30,288 | |||||
| Other assets, net | 62,093 | 60,081 | 63,437 | |||||
| Total assets | $ | 2,184,704 | $ | 1,915,060 | $ | 1,977,496 | ||
| Liabilities and shareholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 393,916 | $ | 358,090 | $ | 318,404 | ||
| Accrued payroll | 23,060 | 20,323 | 21,171 | |||||
| Accrued benefits and withholdings | 46,661 | 47,287 | 44,032 | |||||
| Deferred income taxes | 4,780 | 3,119 | 5,779 | |||||
| Other current liabilities | 47,475 | 56,468 | 44,089 | |||||
| Current portion of long-term debt | 25,315 | 265 | 309 | |||||
| Total current liabilities | 541,207 | 485,552 | 433,784 | |||||
| Long-term debt, less current portion | 75,311 | 100,678 | 110,170 | |||||
| Deferred income taxes | 25,666 | 44,809 | 38,171 | |||||
| Other liabilities | 49,957 | 22,319 | 31,275 | |||||
| Shareholders' equity: | ||||||||
| Common stock, $0.01 par value: | ||||||||
| Authorized shares ? 245,000,000 | ||||||||
Issued and outstanding shares ? 114,836,096 as of June 30, 2007, 113,394,091 as of June 30, 2006 and 113,929,327 as of December 31, 2006
| 1,148 | 1,134 | 1,139 | |||||
| Additional paid-in capital | 428,704 | 386,371 | 400,552 | |||||
| Retained earnings | 1,062,711 | 874,197 | 962,405 | |||||
| Total shareholders' equity | 1,492,563 | 1,261,702 | 1,364,096 | |||||
| Total liabilities and shareholders' equity | $ | 2,184,704 | $ | 1,915,060 | $ | 1,977,496 | ||
| Note: The balance sheet at December 31, 2006 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. | ||||||||
O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share data) | |||||||||||
| Three Months Ended | Six Months Ended | ||||||||||
| June 30, | June 30, | ||||||||||
| 2007 | 2006 | 2007 | 2006 | ||||||||
| Sales | $ | 643,108 | $ | 591,199 | $ | 1,256,253 | $ | 1,127,746 | |||
| Cost of goods sold, including warehouse and distribution expenses | 355,923 | 330,271 | 699,787 | 633,390 | |||||||
| Gross profit | 287,185 | 260,928 | 556,466 | 494,356 | |||||||
| Operating, selling, general and administrative expenses | 205,627 | 182,692 | 397,716 | 351,154 | |||||||
| Operating income | 81,558 | 78,236 | 158,750 | 143,202 | |||||||
| Other income (expense), net | 781 | 162 | 771 | (290) | |||||||
| Income before income taxes | 82,339 | 78,398 | 159,521 | 142,912 | |||||||
| Provision for income taxes | 30,440 | 29,085 | 59,215 | 53,035 | |||||||
| Net income | $ | 51,899 | $ | 49,313 | $ | 100,306 | $ | 89,877 | |||
| Net income per common share | $ | 0.45 | $ | 0.44 | $ | 0.88 | $ | 0.80 | |||
| Net income per common share-assuming dilution | $ | 0.45 | $ | 0.43 | $ | 0.87 | $ | 0.78 | |||
| Weighted-average common shares outstanding | 114,533 | 113,253 | 114,288 | 112,890 | |||||||
Adjusted weighted-average common shares outstanding ? assuming dilution
| 116,111 | 115,196 | 115,878 | 114,908 | |||||||
