O’Reilly Automotive has announced record revenues and earnings for its second quarter ended June 30, 2015.
Sales for the second quarter increased $188 million, or 10 percent, to $2.04 billion from $1.85 billion for the same period one year ago. Gross profit for the second quarter increased to $1.06 billion (or 52 percent of sales) from $951 million (or 51.5 percent of sales) for the same period one year ago, representing an increase of 11 percent. Operating income for the second quarter increased to $386 million (or 19 percent of sales) from $336 million (or 18.2 percent of sales) for the same period one year ago, representing an increase of 15 percent.
Net income for the second quarter increased $28 million, or 14 percent, to $234 million (or 11.5 percent of sales) from $206 million (or 11.1 percent of sales) for the same period one year ago. Diluted earnings per common share for the second quarter increased 20 percent to $2.29 on 102 million shares, versus $1.91 on 108 million shares for the same period one year ago.
Greg Henslee, O’Reilly’s president and CEO, commented, “We are very pleased to report another record-breaking quarter. Our strong results are highlighted by an industry-leading 7.2 percent increase in comparable store sales, which mirrors the strong 7.2 percent increase we generated in the first quarter of the year. Our team’s focus on providing consistently high levels of service to our customers continues to drive our strong top-line performance, and I would like to thank each of them for their contributions to our ongoing success.”
Henslee added, “Team O’Reilly’s unwavering commitment to profitable, sustainable growth translated our very strong sales results into a record second quarter operating margin of 19 percent and drove a 20 percent increase in second quarter diluted earnings per share to $2.29, representing our 26th consecutive quarter of dilutive earnings per share growth greater than 15 percent. We achieved these record-breaking results despite recording a $19 million charge during the quarter as the result of an adverse verdict and associated costs of litigation arising from a dispute with a former service provider. This unusual charge, which is unrelated to our second quarter operations, decreased our second quarter operating margin by 93 basis points.”
Year-to-Date Financial Results
Sales for the first six months of 2015 increased $362 million, or 10 percent, to $3.94 billion from $3.58 billion for the same period one year ago. Gross profit for the first six months of 2015 increased to $2.05 billion (or 52 percent of sales) from $1.83 billion (or 51.1 percent of sales) for the same period one year ago, representing an increase of 12 percent. Operating income for the first six months of 2015 increased to $736 million (or 18.7 percent of sales) from $624 million (or 17.4 percent of sales) for the same period one year ago, representing an increase of 18 percent.
Net income for the first six months of 2015 increased $67 million, or 18 percent, to $446 million (or 11.3 percent of sales) from $380 million (or10.6 percent of sales) for the same period one year ago. Diluted earnings per common share for the first six months of 2015 increased 24 percent to $4.35 on 103 million shares versus $3.52 on 108 million shares for the same period one year ago.
