SPRINGFIELD, MO -- O'Reilly Automotive has announced record revenues and earnings for the fourth quarter and year ended December 31, 2005, representing 13 consecutive years of record revenues and earnings and positive comparable store product sales increases for O'Reilly since becoming a public company in April 1993.

Income before the cumulative effect of accounting change for the year ended Dec. 31, 2005, totaled $164.3 million, up 39.6 percent from $117.7 million for the same period a year ago. Diluted earnings per common share, before the cumulative effect of accounting change, for the year ended December 31, 2005, increased 38.1 percent to $1.45 on 113.4 million shares versus $1.05 a year ago on 111.4 million shares. This improvement includes a benefit of 5 cents per share from the favorable resolution of prior tax uncertainties in the third quarter of 2005 and an adverse impact of 1 cent per share for the fourth quarter 2005 charge for the acceleration of stock options. Diluted earnings per common share in 2004 included an adverse impact of 4 cents per share for lease accounting corrections related to prior years. On an adjusted basis excluding the third quarter 2005 tax resolution benefit, the fourth quarter 2005 stock option acceleration charge and the fourth quarter 2004 lease accounting correction, diluted earnings per common share, before the cumulative effect of accounting change, increased 29.4 percent from $1.09 for the year ended Dec. 31, 2004 to $1.41 for the year ending Dec. 31, 2005.

Product sales for the year totaled $2.05 billion, up 18.8 percent from $1.72 billion for the year ended Dec. 31, 2004. Gross profit for the year increased to $892.5 million (or 43.6 percent of product sales) from $743.2 million (or 43.2 percent of product sales) for the prior year, representing an increase of 20.1 percent. Operating, selling, general and administrative (OSG&A) expenses for the year ended Dec. 31, 2005, increased to $640 million (or 31.3 percent of product sales) from $552.7 million (or 32.1 percent of product sales) for the prior year, representing an increase of 15.8 percent. The reduction in the effective tax rate from 37.3 percent for the prior year to 34.6 percent for the year, reflects a one-time benefit of $6.1 million from the favorable resolution of prior tax uncertainties in the third quarter of 2005.

Net income for the fourth quarter totaled $39.5 million, up 79.5 percent from $22 million for the same period in 2004. Diluted earnings per common share for the fourth quarter of 2005 increased 75 percent to 35 cents on 114 million shares compared to 20 cents for the fourth quarter of 2004 on 111.9 million shares. This improvement includes the adverse impact of 1 cent per share for the fourth quarter 2005 charge for the acceleration of stock options. Diluted earnings per common share for the three months prior year included an adverse impact of 5 cents per share for lease accounting corrections related to prior periods. On an adjusted basis excluding the fourth quarter 2005 stock option acceleration charge and the fourth quarter 2004 lease accounting correction, diluted earnings per common share increased 44 percent from 25 cents for the quarter ending Dec. 31, 2004 to 36 cents for the quarter ended Dec. 31, 2005.

Product sales for the fourth quarter totaled $515 million, up 20.4 percent from $427.6 million for the same period a year ago. Gross profit for the fourth quarter increased to $231.4 million (or 44.9 percent of product sales) from $186 million (or 43.5 percent of product sales) for the same period a year ago, representing an increase of 24.5 percent. OSG&A expenses for the fourth quarter increased to $168.2 million (or 32.7 percent of product sales) from $149.9 million (or 35.1 percent of product sales) for the same period a year ago, representing an increase of 12.2 percent.

Comparable store product sales for stores open at least one year increased 7.4 percent and 7.5 percent for the fourth quarter and year respectively, representing 51 quarters of comparable store product sales increases since O'Reilly became a public company in April 1993.

"We are pleased with the strong results this quarter and for the full year 2005," said Greg Henslee, chief executive officer and co-president. "We are proud of the continued hard work and dedication of Team O'Reilly that enabled us to achieve comparable store sales growth of 7.5 percent while also improving our operating margin to 12.3 percent. This performance is the direct result of our team's commitment to providing the best possible service and selection for the professional installer and the do-it-yourself customer."

Ted Wise, chief operating officer and co-president, said, "In the fourth quarter of 2005, we opened 38 new stores and continued our successful integration of Midwest Auto Parts. We expect to add 170 to 175 new stores in 2006 as well as a new distribution center in Indianapolis, Indiana that will support our expansion in this region."

For more information about the company, go to: www.oreillyauto.com.

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