SPRINGFIELD, Mo. -- O'Reilly Automotive has announced record revenues and earnings for the first quarter ended March 31.
 
Sales for the first quarter ended March 31, increased $103 million, or 8 percent, to $1.38 billion from $1.28 billion for the same period a year ago. Gross profit for the first quarter increased to $670 million (or 48.4 percent of sales) from $618 million (or 48.3 percent of sales) for the same period a year ago, representing an increase of 8 percent.

Selling, general and administrative expenses for the first quarter increased to $473 million (or 34.2 percent of sales) from $450 million (or 35.1 percent of sales) for the same period a year ago, representing an increase of 5 percent. Operating income for the first quarter increased to $196 million (or 14.2 percent of sales) from $168 million (or 13.2 percent of sales) for the same period a year ago, representing an increase of 17 percent.

Net income for the first quarter ended March 31 increased to $102 million (or 7.4 percent of sales) from $97 million (or 7.6 percent of sales) for the same period a year ago, representing an increase of 5 percent. Diluted earnings per common share for the first quarter increased 3 percent to 72 cents on 143 million shares versus 70 cents for the same period a year ago on 140 million shares.

The company's results for the first quarter included one-time charges associated with the new financing plan the company completed on Jan. 14. 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, and a charge related to the termination of the company's interest rate swap agreements in the amount of $4 million. Adjusted diluted earnings per common share, excluding the impact of the charges relating to the company's new financing plan, increased 19 percent to 83 cents for the first quarter ended March 31, from 70 cents for the same period a year ago.

Commenting on the company's quarterly results, Greg Henslee, O'Reilly's CEO and co-president, stated, "We are happy to report another very profitable quarter. Our solid start to 2011 was highlighted by a comparable store sales increase of 5.7 percent and a 100 basis point improvement in operating margin, which drove an increase in adjusted diluted earnings per share of 19 percent. Our 14.2 percent operating margin is the result of our strong comparable store sales growth coupled with our relentless focus on expense control. During the quarter, we began repurchasing shares of our stock on the open market and through the date of this release we had repurchased 3.6 million shares at an aggregate cost of $200 million. We will continue to prudently use cash generated from operations first to reinvest in the growth of our business and second to opportunistically execute our share repurchase program to enhance shareholder value. We would like to thank our dedicated team members for their commitment to our company's continued success and to the O'Reilly Culture values of customer service and expense control and we look forward to the remainder of 2011 and the opportunity to continue to grow the O'Reilly brand in all of our markets."

"The first quarter of 2011 marks the first full quarter in which all of our stores have operated on the O'Reilly point-of-sale and distribution systems," added Ted Wise, COO and co-president. "The conversion of all the acquired CSK stores to the O'Reilly systems and distribution network provides same-day or overnight access to a broad selection of hard-to-find parts. The O'Reilly systems also provide important tools which enable the store managers to improve the profitability and efficiency of our stores. We are actively progressing through the final stage of our physical CSK store conversion process, which involves exterior signage and interior décor package changeovers and is scheduled for completion in mid-2011."

Wise concluded, "During the first quarter, we opened 55 new stores, putting us on track to reach our goal of 170 net, new store openings in 2011. We also opened our first store in West Virginia this quarter, which increased our operations to 39 states. Our growth is the direct result of the hard work of our 47,000 team members and we would like to thank each of you for your commitment to providing excellent customer service."

On Jan. 11, the company's board of directors authorized a $500 million share repurchase program. During the first quarter, the company repurchased 2.6 million shares of its common stock at an average price per share of $55.54, for a total investment of $145 million. Subsequent to the end of the first quarter and through the date of this release, the company repurchased an additional 1 million shares of its common stock at an average price per share of $56.46, for a total investment of $55 million. As of the date of this release, the company had $300 million remaining under its share repurchase program.

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 5.7 percent for the first quarter ended March 31, 2011, versus 6.9 percent for the same period a year ago.