- Third quarter comparable store sales increase of
4.8%
- Gross margin improves 50 bps to a quarterly record of
49.1%
- Record quarterly operating margin of
15.7%
- 28% increase in quarterly adjusted diluted earnings per
share
O'Reilly Automotive, Inc. (the "Company" or "O'Reilly")
(Nasdaq:ORLY), a leading retailer in the automotive aftermarket
industry, today announced record revenues and earnings for its
third quarter ended September 30, 2011.
3rd Quarter Financial Results
Sales for the third quarter ended September 30, 2011, increased
$110 million, or 8%, to $1.54 billion from $1.43 billion for the
same period one year ago. Gross profit for the third quarter
increased to $754 million (or 49.1% of sales) from $693 million (or
48.6% of sales) for the same period one year ago, representing an
increase of 9%. Selling, general and administrative expenses
("SG&A") for the third quarter increased to $513 million (or
33.4% of sales) from $488 million (or 34.3% of sales) for the same
period one year ago, representing an increase of 5%. Operating
income for the third quarter increased to $241 million (or 15.7% of
sales) from $199 million (or 14.0% of sales) for the same period
one year ago, representing an increase of 21%.
Net income for the third quarter ended September 30, 2011,
increased $32 million, or 27%, to $148 million (or 9.7% of sales)
from $117 million (or 8.2% of sales) for the same period one year
ago. Diluted earnings per common share for the third quarter
increased 34% to $1.10 on 135 million shares versus $0.82 for the
same period one year ago on 142 million shares.
As previously announced, the Company's results for the three
months ended September 30, 2010, included a charge related to the
legacy United States Department of Justice ("DOJ") investigation of
CSK Auto Corporation ("CSK") into CSK's pre-acquisition historical
accounting practices. The Company accrued $15.0 million during the
second quarter of 2010 and an additional $5.9 million during the
third quarter of 2010 in anticipation of executing a
Non-Prosecution Agreement ("NPA") among the DOJ, CSK and O'Reilly
and paying a one-time monetary penalty of $20.9 million. During the
third quarter of 2011, the NPA was executed and the previously
recorded, one-time $20.9 million penalty was paid to the DOJ on
behalf of CSK.
Adjusted operating income, adjusted net income and adjusted
diluted earnings per common share for the third quarter ended
September 30, 2010, in the paragraph below were adjusted for the
impact of the $5.9 million charge related to the legacy CSK DOJ
investigation discussed above. Adjusted operating income for the
third quarter ended September 30, 2011, increased 18%, to $241
million (or 15.7% of sales) from $205 million (or 14.4% of sales)
for the same period one year ago. Adjusted net income for the third
quarter ended September 30, 2011, increased 21%, to $148 million
(or 9.7% of sales) from $122 million (or 8.6% of sales) for the
same period one year ago. Adjusted diluted earnings per common
share, for the third quarter ended September 30, 2011, increased
28%, to $1.10 from $0.86 for the same period one year
ago.
The table below outlines the impact of the legacy CSK DOJ
investigation charge for the third quarters ended September 30,
2011 and 2010 (amounts in thousands, except per share data):
|
For the Three
Months Ended September 30, |
|
2011 |
2010 |
|
Amount |
% of Sales |
Amount |
% of Sales |
Operating income |
$ 241,050 |
15.7% |
$ 199,031 |
14.0% |
Legacy CSK DOJ investigation
charge |
-- |
--% |
5,900 |
0.4% |
Adjusted operating income |
$ 241,050 |
15.7% |
$ 204,931 |
14.4% |
|
|
|
|
|
Net income |
$ 148,439 |
9.7% |
$ 116,542 |
8.2% |
Legacy CSK DOJ investigation
charge |
-- |
--% |
5,900 |
0.4% |
Adjusted net income |
$ 148,439 |
9.7% |
$ 122,442 |
8.6% |
|
|
|
|
|
Diluted earnings per common share |
$ 1.10 |
|
$ 0.82 |
|
Legacy CSK DOJ investigation
charge |
-- |
|
0.04 |
|
Adjusted diluted earnings per common
share |
$ 1.10 |
|
$ 0.86 |
|
|
|
|
|
|
Weighted-average common shares outstanding -
assuming dilution |
135,033 |
|
141,706 |
|
Commenting on the Company's quarterly results, Greg Henslee,
Co-President and CEO stated, "We are pleased to report another
successful quarter. Our results are highlighted by a solid
4.8% comparable store sales increase on top of an extremely strong
comparable store sales increase of 11.1% last year, a 50 basis
point improvement in gross margin and a record-breaking 15.7%
operating margin. The continued trend of solid comparable
store sales increases is the direct result of the hard work and
commitment to unsurpassed customer service from each of our
dedicated Team Members. Our relentless focus on expense
control, at all levels, led to the 130 basis point improvement in
adjusted operating margin. I am very pleased with the
performance of Team O'Reilly and would like to thank all of our
Team Members for their commitment to exceeding customer
expectations."
"During the third quarter, we continued to invest in profitable
growth with the opening of 50 new stores which raised our total
store count to 3,707 stores in 39 states," stated Ted Wise,
Co-President and COO. "Throughout the year, we opened stores
in many of our existing markets, as well as several new markets,
further leveraging the capacity of our comprehensive network of 23
regional distribution centers. Our nearly 50,000 Team Members
remain dedicated to developing strong and lasting relationships
with both our retail and professional service provider customers
and to establishing the O'Reilly Brand as a symbol of the best
value, customer service and parts availability in the
industry."
Year-to-Date Financial Results
Sales for the first nine months of 2011 increased $310 million,
or 8%, to $4.40 billion from $4.09 billion for the same period one
year ago. Gross profit for the first nine months of 2011
increased to $2.14 billion (or 48.7% of sales) from $1.98 billion
(or 48.6% of sales) for the same period one year ago, representing
an increase of 8%. SG&A for the first nine months of 2011
increased to $1.48 billion (or 33.7% of sales) from $1.41 billion
(or 34.6% of sales) for the same period one year ago, representing
an increase of 5%. Operating income for the first nine months
of 2011 increased to $660 million (or 15.0% of sales) from $549
million (or 13.4% of sales) for the same period one year ago,
representing an increase of 20%.
Net income for the first nine months of 2011 increased $71
million, or 23%, to $385 million (or 8.7% of sales) from $314
million (or 7.7% of sales) for the same period one year
ago. Diluted earnings per common share for the first nine
months of 2011 increased 24% to $2.76 on 139 million shares versus
$2.23 for the same period one year ago on 141 million shares.
The Company's results for the first nine months of 2011 included
one-time charges associated with the new financing transactions the
Company completed on January 14, 2011. These one-time charges
included a non-cash charge to write off the balance of debt
issuance costs related to the Company's previous credit facility in
the amount of $22 million ($13 million, net of tax) and a charge
related to the termination of the Company's interest rate swap
agreements in the amount of $4 million ($3 million, net of tax).
The Company's results for the nine months ended September 30,
2010, included the previously discussed $20.9 million charge
related to the legacy CSK DOJ investigation.
Adjusted operating income for the first nine months of 2011
increased 16% to $660 million (or 15.0% of sales) from $570 million
(or 13.9% of sales) for the same period one year ago, which was
adjusted for the impact of the charges related to the legacy CSK
DOJ investigation discussed above, during the first nine months of
2010. Adjusted net income, excluding the impact of the charges
related to the Company's new financing transactions during the
first nine months of 2011, increased 20% to $401 million (or 9.1%
of sales) from $335 million (or 8.2% of sales) for the same period
one year ago, which was adjusted for the impact of the charges
related to the legacy CSK DOJ investigation discussed above, during
the first nine months of 2010. Adjusted diluted earnings per
common share, excluding the impact of the charges related to the
Company's new financing transactions during the first nine months
of 2011, increased 22% to $2.88 from $2.37 for the same period one
year ago, which was adjusted for the impact of the charges related
to the legacy CSK DOJ investigation discussed above, during the
first nine months of 2010.
The table below outlines the impact of the charges related to
the new financing transactions and the legacy CSK DOJ investigation
charges for the nine months ended September 30, 2011 and 2010
(amounts in thousands, except per share data):
|
For the Nine
Months Ended September 30, |
|
2011 |
2010 |
|
Amount |
% of Sales |
Amount |
% of Sales |
Operating income |
$ 659,855 |
15.0% |
$ 548,640 |
13.4% |
Legacy CSK DOJ investigation
charge |
-- |
--% |
20,900 |
0.5% |
Adjusted operating income |
$ 659,855 |
15.0 % |
$ 569,540 |
13.9% |
|
|
|
|
|
Net income |
$ 384,685 |
8.7% |
$ 313,613 |
7.7% |
Write-off of asset-based
revolving credit facility debt issuance costs, net of tax |
13,458 |
0.3% |
-- |
--% |
Termination of interest rate
swap agreements, net of tax |
2,637 |
0.1% |
-- |
--% |
Legacy CSK DOJ investigation
charge |
-- |
--% |
20,900 |
0.5% |
Adjusted net income |
$ 400,780 |
9.1% |
$334,513 |
8.2% |
|
|
|
|
|
Diluted earnings per common share |
$ 2.76 |
|
$ 2.23 |
|
Write-off of asset-based revolving credit
facility debt issuance costs, net of tax |
0.10 |
|
-- |
|
Termination of interest rate swap
agreements, net of tax |
0.02 |
|
-- |
|
Legacy CSK DOJ investigation charge |
-- |
|
0.14 |
|
Adjusted diluted earnings per common
share |
$ 2.88 |
|
$ 2.37 |
|
|
|
|
|
|
Weighted-average common shares outstanding -
assuming dilution |
139,183 |
|
140,874 |
|
Mr. Henslee added, "We continue to work hard to improve our free
cash flow with a particular focus on improving the productivity of
our net inventory investment. As of the end of the quarter, we
have improved our inventory turnover, net of accounts payable, by
20% driven by improved vendor terms and a $14 million reduction of
inventory since the beginning of 2011, while still opening 137 new
stores. This strong improvement in net inventory investment,
combined with our strong operating results, generated free cash
flow of $597 million for the first nine months of 2011, an increase
of $281 million over 2010. During the third quarter, we also
issued $300 million of senior notes as we continue to work to
balance our capital structure. Our strong free cash flow
performance and our efforts to balance our capital structure have
enabled us to repurchase 14.4 million shares of our stock for a
total investment of $859 million, at an average price of $59.81 per
share, since the inception of our $1 billion board authorized share
repurchase program."
Share Repurchase Program
On January 11, 2011, the Company's Board of Directors authorized
a $500 million share repurchase program, and on August 5, 2011, the
Company's Board of Directors approved a resolution to increase the
authorization under the share repurchase program by an additional
$500 million, raising the cumulative authorization under the share
repurchase program to $1 billion. During the third quarter
ended September 30, 2011, the Company repurchased 8.2 million
shares of its common stock at an average price per share of $61.51,
for a total investment of $502 million. During the first nine
months of 2011, the Company repurchased 14.1 million shares of its
common stock at an average price per share of $59.69, for a total
investment of $840 million. Subsequent to the end of the third
quarter and through the date of this release, the Company
repurchased an additional 0.3 million shares of its common stock at
an average price per share of $65.81, for a total investment of $19
million. As of the date of this release, the Company had
approximately $141 million remaining under its share repurchase
program.
3rd Quarter and Year-to-Date Comparable Store Sales
Results
Comparable store sales are calculated based on the change in
sales for stores open at least one year and exclude sales of
specialty machinery, sales to independent parts stores and sales to
team members. Comparable store sales increased 4.8% for the
third quarter ended September 30, 2011, versus 11.1% for the same
period one year ago. Comparable store sales increased 4.9% for
the first nine months of 2011, versus 8.6% for the same period one
year ago.
4th Quarter and Updated Full-Year 2011
Guidance
The table below outlines the Company's guidance for selected
fourth quarter and updated full-year 2011 financial data:
|
|
|
|
Three Months Ending
December 31, 2011 |
Year Ending December
31, 2011 |
Comparable store sales |
3% to 5% |
4% to 5.5% |
Total revenue |
|
$5.75 billion to $5.85 billion |
Gross profit margin |
|
48.6% to 48.8% |
Operating margin |
|
14.4% to 14.6% |
Diluted earnings per share (1) |
$0.80 to $0.84 |
$3.57 to $3.61 |
Adjusted diluted earnings per
share (1)(2) |
$3.68 to $3.72 |
Capital expenditures |
|
$290 million to $320 million |
Free cash flow (3) |
|
$575 million to $610 million |
|
|
|
(1) Weighted-average shares
outstanding, assuming dilution, used in the denominator of this
calculation, includes share repurchases made by the Company through
the date of this release. |
(2) Full-year guidance excludes
$0.11 related to one-time charges associated with the new financing
transactions the Company completed on January 14, 2011. These
one-time items include an adjustment to earnings per share of
$0.09, net of tax, for a non-cash charge to write off the balance
of debt issuance costs related to the Company's previous credit
facility in the amount of $22 million ($13 million, net of tax);
and an adjustment to earnings per share of $0.02, net of tax, for a
charge related to the termination of the Company's interest rate
swap agreements in the amount of $4 million ($3 million, net of
tax). |
(3) Calculated as net cash flows
provided by operating activities less capital expenditures for the
period. |
Non-GAAP Information
This release contains certain financial information not derived
in accordance with United States generally accepted accounting
principles ("GAAP"). These items include adjusted operating
income, adjusted net income, adjusted diluted earnings per common
share, free cash flow, and rent-adjusted debt to adjusted earnings
before interest, taxes, depreciation, amortization, stock option
compensation and rent ("EBITDAR"). The Company does not, nor
does it suggest investors should, consider such non-GAAP financial
measures in isolation from, or as a substitute for, GAAP financial
information. The Company believes that the presentation of
financial results and estimates excluding the impact of the
non-cash charge to write off the balance of debt issuance costs,
the charge related to the termination of interest rate swap
agreements, the charges related to the legacy CSK DOJ
investigation, a non-recurring, non-operating gain related to the
settlement of a note receivable acquired in the acquisition of CSK,
as well as the presentation of adjusted debt to adjusted EBITDAR
and free cash flow, provide meaningful supplemental information to
both management and investors that is indicative of the Company's
core operations. The Company excludes these items in judging
its performance and believes this non-GAAP information is useful to
investors as well. The Company has included a reconciliation
of this additional information to the most comparable GAAP measure
in the accompanying reconciliation table.
Earnings Conference Call Information
The Company will host a conference call on Thursday, October 27,
2011, 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 website at www.oreillyauto.com by
clicking on "Investor Relations" and then "News
Room". Interested analysts are invited to join our
call. The dial-in number for the call is (706) 679-5789; the
conference call identification number is 10172367. A replay of
the call will be available on the Company's website following the
conference call.
About O'Reilly Automotive, Inc.
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 service provider
markets. Founded in 1957 by the O'Reilly family, the Company
operated 3,707 stores in 39 states as of September 30, 2011.
The O'Reilly Automotive, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5430
Forward-Looking Statements
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. You can identify
these statements 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, integration 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, the Company's increased debt levels, credit
ratings on the Company's public debt, the Company's ability to hire
and retain qualified employees, risks associated with the
performance of acquired businesses such as CSK, 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" section of the annual report on Form 10-K for the year
ended December 31, 2010, for additional factors that could
materially affect the Company's financial performance.
O'REILLY AUTOMOTIVE,
INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In thousands, except share
data) |
|
|
|
|
|
September 30,
2011 |
September 30, 2010 |
December 31, 2010 |
|
(Unaudited) |
(Unaudited) |
(Note) |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash
equivalents |
$ 276,717 |
$ 43,193 |
$ 29,721 |
Accounts receivable, net |
136,520 |
125,906 |
121,807 |
Amounts receivable from
vendors |
65,035 |
68,253 |
61,845 |
Inventory |
2,009,407 |
1,997,718 |
2,023,488 |
Prepaid income taxes |
-- |
2,735 |
-- |
Deferred income taxes |
20,823 |
39,261 |
33,877 |
Other current assets |
28,012 |
32,530 |
30,514 |
Total current assets |
2,536,514 |
2,309,596 |
2,301,252 |
|
|
|
|
Property and equipment, at cost |
2,951,367 |
2,629,835 |
2,705,434 |
Less: accumulated depreciation and
amortization |
893,492 |
738,275 |
775,339 |
Net property and equipment |
2,057,875 |
1,891,560 |
1,930,095 |
|
|
|
|
Notes receivable, less current portion |
11,961 |
19,151 |
18,047 |
Goodwill |
743,943 |
743,921 |
743,975 |
Other assets, net |
46,490 |
59,191 |
54,458 |
Total assets |
$ 5,396,783 |
$ 5,023,419 |
$ 5,047,827 |
|
|
|
|
Liabilities and shareholders'
equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ 1,190,842 |
$ 943,147 |
$ 895,736 |
Self-insurance reserves |
52,895 |
54,680 |
51,192 |
Accrued payroll |
49,948 |
45,589 |
52,725 |
Accrued benefits and
withholdings |
39,544 |
45,515 |
45,542 |
Income taxes payable |
12,126 |
-- |
4,827 |
Other current liabilities |
159,888 |
189,633 |
177,505 |
Current portion of long-term
debt |
804 |
104,698 |
1,431 |
Total current liabilities |
1,506,047 |
1,383,262 |
1,228,958 |
|
|
|
|
Long-term debt, less current portion |
796,962 |
326,554 |
357,273 |
Deferred income taxes |
76,919 |
57,446 |
68,736 |
Other liabilities |
186,307 |
181,886 |
183,175 |
|
|
|
|
Shareholders' equity: |
|
|
|
Common stock, $0.01 par
value: |
|
|
|
Authorized shares – 245,000,000
Issued and outstanding shares – 128,449,476 as of September
30, 2011, 139,319,673 as of September 30, 2010,
and 141,025,544 as of December 31, 2010 |
1,284 |
1,393 |
1,410 |
Additional paid-in capital |
1,098,017 |
1,113,237 |
1,141,749 |
Retained earnings |
1,731,247 |
1,963,736 |
2,069,496 |
Accumulated other comprehensive loss |
-- |
(4,095) |
(2,970) |
Total shareholders' equity |
2,830,548 |
3,074,271 |
3,209,685 |
Total liabilities and shareholders'
equity |
$ 5,396,783 |
$ 5,023,419 |
$ 5,047,827 |
|
Note: The balance sheet at
December 31, 2010, 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 September 30, |
Nine Months Ended
September 30, |
|
2011 |
2010 |
2011 |
2010 |
Sales |
$ 1,535,453 |
$ 1,425,887 |
$ 4,397,509 |
$ 4,087,195 |
Cost of goods sold, including warehouse and
distribution expenses |
781,243 |
732,472 |
2,254,857 |
2,102,800 |
Gross profit |
754,210 |
693,415 |
2,142,652 |
1,984,395 |
Selling, general and administrative
expenses |
513,160 |
488,484 |
1,482,797 |
1,414,855 |
Legacy CSK DOJ investigation charge |
-- |
5,900 |
-- |
20,900 |
Operating income |
241,050 |
199,031 |
659,855 |
548,640 |
|
|
|
|
|
Other income (expense): |
|
|
|
|
Write-off of asset-based
revolving credit facility debt issuance costs |
-- |
-- |
(21,626) |
-- |
Termination of interest rate
swap agreements |
-- |
-- |
(4,237) |
-- |
Interest expense |
(7,212) |
(9,756) |
(18,706) |
(31,781) |
Interest income |
516 |
510 |
1,620 |
1,409 |
Other, net |
675 |
407 |
1,279 |
1,845 |
Total other expense |
(6,021) |
(8,839) |
(41,670) |
(28,527) |
Income before income taxes |
235,029 |
190,192 |
618,185 |
520,113 |
Provision for income taxes |
86,590 |
73,650 |
233,500 |
206,500 |
Net income |
$ 148,439 |
$ 116,542 |
$ 384,685 |
$ 313,613 |
|
|
|
|
|
Earnings per share-basic: |
|
|
|
|
Earnings per share |
$ 1.12 |
$ 0.84 |
$ 2.81 |
$ 2.27 |
Weighted-average common shares outstanding –
basic |
132,777 |
138,831 |
136,895 |
138,219 |
|
|
|
|
|
Earnings per share-assuming dilution: |
|
|
|
|
Earnings per share |
$ 1.10 |
$ 0.82 |
$ 2.76 |
$ 2.23 |
Weighted-average common shares outstanding –
assuming dilution |
135,033 |
141,706 |
139,183 |
140,874 |
|
O'REILLY AUTOMOTIVE,
INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(Unaudited) |
(In thousands) |
|
|
|
|
Nine Months
Ended September 30, |
|
2011 |
2010 |
|
|
(Note) |
Operating activities: |
|
|
Net income |
$ 384,685 |
$ 313,613 |
Adjustments to reconcile net income to net
cash provided by operating activities: |
Depreciation and amortization
on property and equipment |
123,009 |
118,817 |
Amortization of
intangibles |
(268) |
1,914 |
Amortization of premium on
exchangeable notes |
-- |
(561) |
Amortization of discount on
senior notes |
252 |
-- |
Amortization of debt issuance
costs |
1,120 |
6,418 |
Write-off of asset-based
revolving credit facility debt issuance costs |
21,626 |
-- |
Excess tax benefit from stock
options exercised |
(14,705) |
(11,755) |
Deferred income taxes |
19,362 |
85,823 |
Stock option compensation
programs |
13,721 |
11,273 |
Other share based compensation
programs |
2,164 |
1,519 |
Other |
7,064 |
4,956 |
Changes in operating assets and
liabilities: |
|
|
Accounts receivable |
(22,117) |
(23,749) |
Inventory |
14,082 |
(84,500) |
Accounts payable |
295,151 |
124,909 |
Income taxes payable |
22,004 |
952 |
Other |
(27,001) |
42,934 |
Net cash provided by operating
activities |
840,149 |
592,563 |
|
|
|
Investing activities: |
|
|
Purchases of property and equipment |
(243,311) |
(276,463) |
Proceeds from sale of property and
equipment |
750 |
1,866 |
Payments received on notes receivable |
4,363 |
4,610 |
Other |
226 |
(4,728) |
Net cash used in investing
activities |
(237,972) |
(274,715) |
|
|
|
Financing activities: |
|
|
Proceeds from borrowings on asset-based
revolving credit facility |
42,400 |
318,200 |
Payments on asset-based revolving credit
facility |
(398,400) |
(672,000) |
Proceeds from the issuance of long-term
debt |
795,963 |
-- |
Payment of debt issuance costs |
(9,942) |
-- |
Principal payments on capital leases |
(1,148) |
(5,134) |
Repurchases of common stock |
(840,256) |
-- |
Excess tax benefit from stock options
exercised |
14,705 |
11,755 |
Net proceeds from issuance of common
stock |
41,497 |
45,589 |
Net cash used in financing
activities |
(355,181) |
(301,590) |
Net increase in cash and cash
equivalents |
246,996 |
16,258 |
Cash and cash equivalents at beginning of
period |
29,721 |
26,935 |
Cash and cash equivalents at end of
period |
$ 276,717 |
$ 43,193 |
|
|
|
Supplemental disclosures of cash flow
information: |
|
|
Income taxes paid |
$ 185,164 |
$ 122,051 |
Interest paid, net of capitalized
interest |
14,065 |
24,192 |
|
|
|
Note: Certain prior period
amounts have been reclassified to conform to current period
presentation. |
|
O'REILLY AUTOMOTIVE,
INC. AND SUBSIDIARIES |
SELECTED FINANCIAL
INFORMATION |
(Unaudited) |
|
|
|
|
Twelve Months
Ended September 30, |
(In thousands, except adjusted debt to
adjusted EBITDAR ratio) |
2011 |
2010 |
Debt |
$ 797,766 |
$ 431,252 |
Add: Letters of credit |
68,081 |
72,872 |
Discount on senior notes |
3,785 |
-- |
Rent times six |
1,374,726 |
1,365,324 |
Less: Premium on exchangeable notes |
-- |
156 |
Adjusted debt |
$ 2,244,358 |
$ 1,869,292 |
|
|
|
Adjusted net income (1) |
$ 499,325 |
$ 406,436 |
Add: Interest expense |
26,198 |
42,850 |
Taxes (2) |
302,344 |
250,550 |
Adjusted EBIT |
827,867 |
699,836 |
|
|
|
Add: Depreciation and amortization |
163,452 |
157,785 |
Rent expense |
229,121 |
227,554 |
Stock option compensation
expense |
17,395 |
14,514 |
Adjusted EBITDAR |
$ 1,237,835 |
$ 1,099,689 |
|
|
|
Adjusted debt to adjusted EBITDAR |
1.81 |
1.70 |
|
September
30, |
|
2011 |
2010 |
Selected Balance Sheet
Ratios: |
|
|
Inventory turnover (3) |
1.5 |
1.4 |
Inventory turnover, net of payables (4) |
3.0 |
2.5 |
Average inventory per store (in thousands)
(5) |
$ 542 |
$ 565 |
Accounts payable to inventory (6) |
59.3% |
47.2% |
Debt-to-capital (7) |
22.0% |
12.3% |
Return on equity (8) |
16.1% |
14.1% |
Return on assets (9) |
9.5% |
8.3% |
|
Three Months
Ended September 30, |
Nine Months Ended
September 30, |
|
2011 |
2010 |
2011 |
2010 |
Selected Financial Information
(in thousands): |
|
|
|
|
Capital expenditures |
$ 92,662 |
$ 94,191 |
$ 243,311 |
$ 276,463 |
Free cash flow (10) |
$ 186,019 |
$ 142,629 |
$ 596,838 |
$ 316,100 |
Depreciation and amortization |
$ 42,627 |
$ 40,794 |
$ 122,741 |
$ 120,731 |
Interest expense |
$ 7,212 |
$ 9,756 |
$ 18,706 |
$ 31,781 |
Lease and rental expense |
$ 57,841 |
$ 57,785 |
$ 172,154 |
$ 169,912 |
|
|
|
|
|
Store and Team
Member Information: |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended September 30, |
Nine Months Ended
September 30, |
Twelve Months
Ended September 30, |
|
2011 |
2010 |
2011 |
2010 |
2011 |
2010 |
New stores opened |
50 |
48 |
149 |
121 |
184 |
131 |
Stores closed |
-- |
4 |
12 |
6 |
13 |
10 |
|
Three Months
Ended September 30, |
Twelve Months
Ended September 30, |
|
2011 |
2010 |
2011 |
2010 |
Team members |
49,254 |
47,334 |
49,254 |
47,334 |
Store count |
3,707 |
3,536 |
3,707 |
3,536 |
Square footage (in thousands) |
26,293 |
25,069 |
26,293 |
25,069 |
Sales per weighted-average store (in
thousands) (11) |
$ 413 |
$ 402 |
$ 1,554 |
$ 1,504 |
Sales per weighted-average square foot
(12) |
$ 58.21 |
$ 56.73 |
$ 219.11 |
$ 212.48 |
|
|
|
|
|
(1) Amount for the twelve months
ended September 30, 2011, excludes charges related to the write off
of the balance of debt issuance costs related to the Company's
previous credit facility in the amount of $22 million ($13 million,
net of tax); the termination of the Company's interest rate swap
agreements in the amount of $4 million ($3 million, net of tax);
and the previously disclosed nonrecurring, non-operating gain
related to the settlement of a CSK note receivable in the amount of
$12 million ($7 million, net of tax) in the fourth quarter of
2010. Amount for the twelve months ended September 30, 2010,
excludes the previously disclosed charges related to the CSK DOJ
investigation in the amount of $21 million, recorded in 2010. |
|
|
|
|
(2) Amount for the twelve months
ended September 30, 2011, excludes the tax impact of the write off
of the balance of debt issuance costs related to the Company's
previous credit facility, the termination of the Company's interest
rate swap agreements and the previously disclosed nonrecurring,
non-operating gain related to the settlement of a CSK note
receivable in the fourth quarter of 2010. |
(3) Calculated as cost of sales
for the last 12 months divided by average inventory. Average
inventory is calculated as the average of inventory for the
trailing four quarters used in determining the denominator. |
(4) Calculated as cost of sales
for the last 12 months divided by average net
inventory. Average net inventory is calculated as the average
of inventory less accounts payable for the trailing four quarters
used in determining the denominator. |
(5) Calculated as inventory
divided by store count at the end of the reported period. |
|
|
(6) Calculated as accounts
payable divided by inventory. |
|
|
|
|
(7) Calculated as the sum of
long-term debt and current portion of long-term debt, divided by
the sum of long-term debt, current portion of long-term debt and
shareholders' equity. |
(8) Calculated as the last 12
months adjusted net income, as defined in footnote (1), divided by
average shareholders' equity. Average shareholders' equity is
calculated as the average of shareholders' equity for the trailing
four quarters used in determining the denominator. |
(9) Calculated as the last 12
months adjusted net income, as defined in footnote (1), divided by
average total assets. Average total assets are calculated as
the average total assets for the trailing four quarters used in
determining the denominator. |
(10) Calculated as net cash flows
provided by operating activities less capital expenditures for the
period. |
|
(11) Calculated as total sales
less jobber sales, divided by weighted-average
stores. Weighted-average sales per store are weighted to
consider the approximate dates of store openings or
expansions. |
(12) Calculated as total sales
less jobber sales, divided by weighted-average square
feet. Weighted-average sales per square foot are weighted to
consider the approximate dates of store openings or
expansions. |
|
O'REILLY AUTOMOTIVE,
INC. AND SUBSIDIARIES |
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL INFORMATION |
(Unaudited) |
|
|
|
|
|
|
Three Months
Ended September 30, |
Nine Months Ended
September 30, |
(In thousands, except per share data) |
2011 |
2010 |
2011 |
2010 |
GAAP operating income |
$ 241,050 |
$ 199,031 |
$ 659,855 |
$ 548,640 |
Legacy CSK DOJ investigation
charge |
-- |
5,900 |
-- |
20,900 |
Non-GAAP adjusted operating income |
$ 241,050 |
$ 204,931 |
$ 659,855 |
$ 569,540 |
|
|
|
|
|
GAAP operating margin |
15.7% |
14.0% |
15.0% |
13.4% |
Legacy CSK DOJ investigation
charge |
-- |
0.4% |
-- |
0.5% |
Non-GAAP adjusted operating margin |
15.7% |
14.4% |
15.0% |
13.9% |
|
|
|
|
|
GAAP net income |
$ 148,439 |
$ 116,542 |
$ 384,685 |
$ 313,613 |
Write-off of asset-based
revolving credit facility debt issuance costs, net of tax |
-- |
-- |
13,458 |
-- |
Termination of interest rate
swap agreements, net of tax |
-- |
-- |
2,637 |
-- |
Legacy CSK DOJ investigation
charge |
-- |
5,900 |
-- |
20,900 |
Non-GAAP adjusted net income |
$ 148,439 |
$ 122,442 |
$ 400,780 |
$ 334,513 |
|
|
|
|
|
GAAP diluted earnings per share |
$ 1.10 |
$ 0.82 |
$ 2.76 |
$ 2.23 |
Write-off of asset-based
revolving credit facility debt issuance costs, net of tax |
-- |
-- |
0.10 |
-- |
Termination of interest rate
swap agreements, net of tax |
-- |
-- |
0.02 |
-- |
Legacy CSK DOJ investigation
charge |
-- |
0.04 |
-- |
0.14 |
Non-GAAP adjusted diluted earnings per
share |
$ 1.10 |
$ 0.86 |
$ 2.88 |
$ 2.37 |
|
|
|
|
|
Weighted-average common shares outstanding –
assuming dilution |
135,033 |
141,706 |
139,183 |
140,874 |
|
|
|
Twelve Months
Ended September 30, |
(In thousands, except adjusted debt to
adjusted EBITDAR ratio) |
2011 |
2010 |
GAAP debt |
$ 797,766 |
$ 431,252 |
Add: Letters of credit |
68,081 |
72,872 |
Discount on senior notes |
3,785 |
-- |
Rent times six |
1,374,726 |
1,365,324 |
Less: Premium on exchangeable notes |
-- |
156 |
Non-GAAP adjusted debt |
$ 2,244,358 |
$ 1,869,292 |
|
|
|
GAAP net income |
$ 490,445 |
$ 385,536 |
Legacy CSK DOJ investigation
charge |
-- |
20,900 |
Gain on settlement of note
receivable, net of tax |
(7,215) |
-- |
Write-off of asset-based
revolving credit facility debt issuance costs, net of tax |
13,458 |
-- |
Termination of interest rate
swap agreements, net of tax |
2,637 |
-- |
Non-GAAP adjusted net income |
499,325 |
406,436 |
Add: Interest expense |
26,198 |
42,850 |
Taxes, net of impact of gain on
settlement of note receivable, debt issuance costs write-off and
swap agreements termination |
302,344 |
250,550 |
Adjusted EBIT |
827,867 |
699,836 |
|
|
|
Add: Depreciation and amortization |
163,452 |
157,785 |
Rent expense |
229,121 |
227,554 |
Stock option compensation
expense |
17,395 |
14,514 |
Adjusted EBITDAR |
$ 1,237,835 |
$ 1,099,689 |
Adjusted debt to adjusted EBITDAR |
1.81 |
1.70 |
CONTACT: Investor & Media Contact
Mark Merz (417) 829-5878
O Reilly Automotive (NASDAQ:ORLY)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
O Reilly Automotive (NASDAQ:ORLY)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024