SPRINGFIELD, Mo. -- O'Reilly Automotive has announced record revenues and earnings for the third quarter ended Sept. 30.

Sales for the three months ended Sept. 30 totaled $1.26 billion, up 13 percent from $1.11 billion for the same period a year ago. Gross profit for the third quarter of 2009 increased to $611 million (or 48.5 percent of sales) from $507 million (or 45.6 percent of sales) for the third quarter of 2008, representing an increase of 20 percent. Selling, General and Administrative (SG&A) expenses increased to $461 million (or 36.7 percent of sales) for the third quarter of 2009 from $415 million (or 37.3 percent of sales) for the third quarter of 2008, representing an increase of 11 percent.
 
Net income for the third quarter totaled $87 million, up 111 percent from $41 million for the same period in 2008. Diluted earnings per common share for the third quarter of 2009 increased 103 percent to 63 cents on 138.7 million shares compared to 31 cents for the third quarter of 2008 on 133.1 million shares.

Sales for the first nine months of 2009 totaled $3.67 billion, up 49 percent from $2.46 billion for the same period a year ago. Gross profit for the first nine months of 2009 increased to $1.76 billion (or 47.8 percent of sales) from $1.11 billion (or 45.2 percent of sales) for the same period a year ago, representing an increase of 58 percent. SG&A expenses increased to $1.34 billion (or 36.6 percent of sales) for the first nine months of 2009 from $858 million (or 34.8 percent of sales) for the same period a year ago, representing an increase of 57 percent.

Net income for the first nine months of 2009 totaled $236 million, up 64 percent from $144 million for the same period a year ago. Diluted earnings per common share for the first nine months of 2009 increased 45 percent to $1.71 on 137.4 million shares compared to $1.18 a year ago on 122.1 million shares.

"We are proud to announce another very profitable quarter, highlighted by a 58 percent increase in adjusted diluted earnings per share and a 103 percent increase in diluted earnings per share," Greg Henslee, CEO and co-president commented. "These results were driven by a solid consolidated comparable store sales increase of 5.3 percent and continued improvement in our gross margin results fueled by improved acquisition costs as the result of our increased purchasing power. Our comparable store sales increase for stores on the O'Reilly system of 5.3 percent consisted of: another strong performance from the core O'Reilly stores of 6.8 percent; an acceleration of comps in the 123 converted Checker Stores from a 3.4 percent decrease in the second quarter to an increase of 5.2 percent in the third quarter as we show significant progress in our core hard parts categories and gain momentum with our professional installer programs; and a comparable store sales decrease of 13.0 percent at the 141 Murray's stores. We continue our work to transition the Murray's stores to our business model in the face of the difficult economic environment in those markets. The comparable store sales increase at the nonconverted stores still on the CSK system improved to 5.2 percent as the enhancements to the back room product offering neared completion and gained significant traction."

Comparable store sales for stores operating on the O'Reilly systems increased 6.4 percent for the first nine months of 2009. Comparable store sales for stores operating on the legacy CSK systems increased 2.9 percent for the first nine months of 2009. Consolidated comparable store sales increased 5.2 percent for the first nine months of 2009.

Henslee added, "I would like to thank the over 44,000 members of Team O'Reilly for their dedication to preserving the O'Reilly culture. The industry-leading customer service we provide our DIFM and DIY customers creates the opportunities required for our continued long term success."

"With the opening of 32 new stores in 16 states during the third quarter, our total store count grew to 3,415 stores," Ted Wise, COO and Co-President stated. "Total new store growth through the end of the quarter reached 140 stores, which brings us within ten stores of our goal of 150 new store openings for the year. The August relocation of our Kansas City distribution center was successful and allows for greater accuracy as well as increased productivity with the implementation of our computerized warehouse management system in the new DC."

Wise added, "Our dedicated store conversion teams completed front-room merchandise changeovers in our Murray's locations during the third quarter, which concluded the first phase of the CSK store conversion plan. Our western distribution system expansion is on track, with the first of four new DCs scheduled to open in early November in Seattle, Wash. Following this opening, the Southern California DC is scheduled to open in January 2010, the Denver, Colo., DC in March 2010 and the Salt Lake City, Utah, DC in May 2010. Coinciding with each DC opening, we expect to convert approximately 30 CSK stores per week to the O'Reilly systems and distribution model, which includes increased access to a wider range of parts as well as nightly inventory replenishment to each store."

The company's results for the third quarter include charges related to the July 11, 2008, acquisition of CSK Automotive. These charges include one-time costs for prepayment and extinguishment of existing O'Reilly debt, commitment fees for an unused interim financing facility, a one-time adjustment to the tax liabilities resulting from the acquisition of CSK and a non-cash charge to amortize the value assigned to CSK's trade names and trademarks, which will be amortized over a period coinciding with the anticipated conversion of CSK store locations. The company's third quarter ended Sept. 30, 2009, results include a non-cash charge to amortize the value assigned to CSK's trade names and trademarks, which will be amortized over the next approximately one year, to coincide with the anticipated conversion of CSK branded store locations to O'Reilly branded locations. Adjusted diluted earnings per share, excluding the impact of the acquisition related charges, increased 58 percent to 63 cents for the third quarter of 2009 from 40 cents for the same period one year ago.