SPRINGFIELD, Mo. -- O'Reilly Automotive has announced record revenues and earnings for the second quarter ended June 30.
 
Sales for the three months ended June 30 totaled $1.25 billion, up 78 percent from $0.70 billion for the same period a year ago. Gross profit for the second quarter of 2009 increased to $604 million (or 48.2 percent of sales) from $317 million (or 45 percent of sales) for the second quarter of 2008, representing an increase of 90 percent. Selling, General and Administrative (SG&A) expenses increased to $454 million (or 36.3 percent of sales) for the second quarter of 2009 from $229 million (or 32.5 percent of sales) for the second quarter of 2008, representing an increase of 98 percent.

Net income for the second quarter ended June 30 totaled $86 million, up 53 percent from $56 million for the same period in 2008. Diluted earnings per common share for the second quarter of 2009 increased 29 percent to 62 cents on 137.5 million shares, compared to 48 cents for the second quarter of 2008 on 116.5 million shares.

Sales for the first six months of 2009 totaled $2.42 billion, up 79 percent from $1.35 billion for the same period a year ago. Gross profit for the first six months of 2009 increased to $1.15 billion (or 47.5 percent of sales) from $0.61 billion (or 44.8 percent of sales) for the same period a year ago, representing an increase of 89 percent. SG&A expenses increased to $883 million (or 36.6 percent of sales) for the first six months of 2009 from $443 million (or 32.8 percent of sales) for the same period a year ago, representing an increase of 99 percent.

Net income for the first six months of 2009 totaled $148 million, up 45 percent from $102 million for the same period a year ago. Diluted earnings per common share for the first six months of 2009 increased 23 percent to $1.08 on 136.8 million shares compared to 88 cents for the same period a year ago on 116.4 million shares.

Commenting on the company's quarterly results, Greg Henslee, CEO and co-president, stated, "We are pleased to report a solid consolidated comparable store sales increase of 4.8 percent for the quarter. Stores operating on the O'Reilly systems, including all of the Murray's stores, which are in various conversion stages, as well as all fully-converted stores, generated a comparable store sales increase of 6.1 percent. This increase was comprised of a 7.8 percent increase at the 'core O'Reilly' stores, a 3.4 percent decrease at the converted stores and an 11.9 percent decrease at the Murray's stores. Stores operating on the legacy CSK systems achieved a third consecutive quarter of positive comparable store sales with a 2.1 percent increase. The converted and Murray's stores comparable sales results include sales after the conversion to the O'Reilly systems and were negatively impacted by the change in systems, the disruption in business created by the closure of the stores during conversion and the ongoing remodeling once the stores were reopened. The converted stores have performed very well in the hard-part categories, which are the staple of the O'Reilly dual market strategy with the overall negative comps driven by non-core automotive sales made in the previous year. The layouts of many of the Murray's stores have been drastically changed to support our dual market strategy and their performance has been negatively impacted by the remodeling work that has been completed while the stores remained open."

Comparable store sales for stores operating on the O'Reilly systems increased 7.1 percent for the first six months of 2009. Comparable store sales for stores operating on the legacy CSK systems increased 1.8 percent for the first six months of 2009. Consolidated comparable store sales increased 5.2 percent for the first six months of 2009.

Ted Wise, COO and co-president, stated, "We opened 50 new stores during the second quarter, bringing our new store growth for 2009 through the end of June to 108 stores and keeping us on track to meet our goal of adding 150 new stores for the year. Our store conversion teams have been busy completing front room merchandise changeovers in the Murray's locations, which we converted to the O'Reilly point-of-sale system in April. In addition, our conversion teams converted 41 other CSK branded stores to the O'Reilly brand during the quarter, completing the first phase of our store conversion plan. Our new distribution center in Greensboro, N.C., opened as scheduled on May 11, and I would like to thank all of the dedicated team members that made the opening possible." Wise added, "As we continue to grow the O'Reilly brand across the country, our team continues to focus on the fundamentals of providing industry-leading customer service to our professional installer and DIY customers in all our markets."

The company's second quarter and year-to-date results include a charge related to the July 11, 2008, acquisition of CSK Automotive. The non-cash charge to amortize the value assigned to CSK's trade names and trademarks, which will be amortized over the next approximately one and a half years, to coincide with the anticipated conversion of CSK branded store locations to O'Reilly branded locations, is included in SG&A. Adjusted diluted earnings per share, excluding the impact of the acquisition related charge during the second quarter, increased 31 percent to 63 cents from the same period one year ago. For the first six months of 2009, adjusted diluted earnings per share, excluding the impact of the acquisition related charge, increased 25 percent to $1.10 from the same period one year ago. The impact of the acquisition related charge, net of tax, was as follows:

The company estimates diluted earnings per share for the third quarter of 2009 to range from 53 cents to 57 cents and estimates diluted earnings per share for the year ended Dec. 31, to range from $2.06 to $2.10. Excluding the expected impact of acquisition charges for trade names and trademarks related to the acquisition of CSK of 3 cents for the year ended Dec. 31, adjusted diluted earnings per share is expected to range from $2.09 to $2.13.

Henslee added, "July 11 marked the first anniversary of our acquisition of CSK and, although there is much more work to be done, the integration is progressing well. As we look to the remainder of this year, we are excited about the opportunities to continue to grow our market share as we convert the CSK branded stores to the O'Reilly Brand and continue to expand our distribution capabilities in the CSK markets. I would like to thank all 44,000 members of Team O'Reilly for their hard work and dedication, and for their consistent execution of our dual market strategy; your efforts continue to drive our strong performance."