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

Sales for the second quarter increased $98 million, or 7 percent, to $1.48 billion from $1.38 billion for the same period one year ago. Gross profit for the second quarter increased to $719 million (or 48.6 percent of sales) from $673 million (or 48.7 percent of sales) for the same period one year ago, representing an increase of 7 percent.

Net income for the second quarter increased $34 million, or 34 percent, to $134 million (or 9 percent of sales) from $100 million (or 7.2 percent of sales) for the same period one year ago. Diluted earnings per common share for the second quarter increased 35 percent to 96 cents on 140 million shares versus 71 cents for the same period one year ago on 141 million shares.

As previously announced, the company's results for the three months ended June 30, 2010, included a charge related to the legacy United States Department of Justice (DOJ) investigation of CSK Auto Corp. into CSK's pre-acquisition historical accounting practices. A one-time monetary penalty of $20.9 million will be paid to the DOJ upon completion of an agreement among the DOJ, CSK and O'Reilly. In anticipation of execution of the agreement, the company accrued $15 million during the second quarter of 2010 and an additional $5.9 million during the third quarter ended Sept. 30, 2010.

Adjusted operating income for the second quarter ended June 30, 2011, increased 13 percent, to $222 million (or 15 percent of sales) from $196 million (or 14.2 percent of sales), which was adjusted for the impact of the $15 million charge related to the legacy CSK DOJ investigation discussed above, during the second quarter of 2010. Adjusted diluted earnings per common share for the second quarter ended June 30, 2011, increased 19 percent, to 96 cents from 81 cents, which was adjusted for the impact of the charge related to the legacy CSK DOJ investigation discussed above, during the second quarter of 2010.

 "We are pleased to report another quarter of solid results and double-digit earnings growth. Our second quarter results are highlighted by a 19 percent increase in diluted earnings per share, on an adjusted basis, and a record high operating margin of 15 percent," Greg Henslee, O'Reilly's CEO and co-president, stated. "We attribute this outstanding operating margin performance to our relentless focus on expense control, which resulted in a 95 basis point improvement in SG&A as a percentage of sales. Our stores continue to generate solid sales performance, driven by excellent customer service. I would like to congratulate Team O'Reilly for the outstanding results we've accomplished since our acquisition of CSK three years ago – none of which would have been possible without our Team's commitment to our company and our customers."

Ted Wise, COO and co-president, commenting on the company's second quarter, stated, "During the quarter, we opened 44 new stores, which brings our total to 99 new store openings for the first half of 2011, keeping us on track to reach our goal of 170 net, new store openings in 2011. Our strong performance is reflective of the hard work and dedication of our 49,000 team members.  I would like to thank each of them for all of their contributions to our company's success."

Sales for the first six months of 2011 increased $201 million, or 8 percent, to $2.86 billion from $2.66 billion for the same period one year ago. Gross profit for the first six months of 2011 increased to $1.39 billion (or 48.5 percent of sales) from $1.29 billion (or 48.5 percent of sales) for the same period one year ago, representing an increase of 8 percent.

Net income for the first six months of 2011 increased $39 million, or 20 percent, to $236 million (or 8.3 percent of sales) from $197 million (or 7.4 percent of sales) for the same period one year ago. Diluted earnings per common share for the first six months of 2011 increased 19 percent to $1.67 on 141 million shares versus $1.40 for the same period one year ago on 140 million shares.

The company's results for the first six months of 2011 included one-time charges associated with the new financing transactions 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 ($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 six months ended June 30, 2010, included a $15 million charge related to the legacy CSK DOJ investigation discussed above.

Adjusted operating income for the first six months of 2011, increased 15 percent to $419 million (or 14.6 percent of sales) from $365 million (or 13.7 percent of sales), which was adjusted for the impact of the charge related to the legacy CSK DOJ investigation discussed above, during the first six 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 six months of 2011 and the legacy CSK DOJ investigation charge during the first six months of 2010, increased 18 percent to $1.78 for the first six months of 2011 from $1.51 for the same period one year ago.

Henslee added, "We are very pleased to report a 137 percent increase in our year-to-date free cash flow, driven by our continuing efforts to improve our accounts payable to inventory ratio, which ended the quarter at 55 percent versus 44 percent last year. During the first half of 2011, we continued to enhance shareholder value by opportunistically executing our share repurchase program and buying back 5.9 million of our shares. We look forward to the second half of 2011 and continuing to focus on strategic goals that will drive long-term value."

"July 11 marked the third anniversary of our acquisition of CSK," added Wise. "We have continued work on the final stage of our physical CSK store conversion, which includes completing all remaining exterior signage and interior décor package changeovers. We now have the inventory levels, distribution support, market competitive pricing and O'Reilly-only branded advertising and marketing program necessary to build the O'Reilly brand from coast-to-coast."

On Jan. 11, the company's board of directors authorized a $500 million share repurchase program. During the second quarter, the company repurchased 3.3 million shares of its common stock at an average price per share of $58.44, for a total investment of $193 million. During the first six months of 2011, the company repurchased 5.9 million shares of its common stock at an average price per share of $57.16, for a total investment of $338 million. As of the date of this release, the company had approximately $162 million remaining under its share repurchase program.