SPRINGFIELD, MO — O’Reilly Automotive has announced record revenues and earnings for the fourth quarter and year ended Dec. 31, 2006. This represents 14 consecutive years of record revenues and earnings and positive comparable store sales increases for O’Reilly since becoming a public company in April 1993.
Sales increased $238 million, or 11.6 percent from $2.05 billion in 2005 to $2.28 billion for the year ended Dec. 31, 2006, with a 3.3 percent increase in same-store sales. Gross profit for the year increased to $1.01 billion (or 44.1 percent of sales) from $893 million (or 43.6 percent of sales) for the year ended Dec. 31, 2005, representing an increase of 12.8 percent. Operating, selling, general and administrative (OSG&A) expenses for the year increased to $724 million (or 31.7 percent of sales) from $640 million (or 31.3 percent of sales) for the year ended Dec. 31, 2005, representing an increase of 13.2 percent. The increase in the effective tax rate from 34.6 percent for the year ended Dec. 31, 2005 to 36.9 percent for the year ended Dec. 31, 2006, reflects a one-time benefit of $6.1 million from the favorable resolution of prior tax uncertainties in the third quarter of 2005.
Net income for the year totaled $178.1 million, up 8.4 percent from $164.3 million for the year ended Dec. 31, 2005. Diluted earnings per common share for the year increased 6.9 percent to $1.55 on 115.1 million shares versus $1.45 a year ago on 113.4 million shares. 2005 results include a benefit of 5 cents per share from the favorable resolution of prior tax uncertainties in the third quarter of 2005. On an adjusted basis excluding the third quarter 2005 tax resolution benefit, diluted earnings per common share increased 10.7 percent from $1.40 for the year ended Dec. 31, 2005 to $1.55 for the year.
Sales for the fourth quarter ended Dec. 31, 2006, totaled $558 million, up 8.4 percent from $515 million for the same period a year ago. Gross profit for the fourth quarter, increased to $249 million (or 44.6 percent of sales) from $231 million (or 44.9 percent of sales) for the same period a year ago, representing an increase of 7.6 percent. OSG&A expenses for the fourth quarter of 2006 increased to $185 million (or 33.1 percent of sales) from $168 million (or 32.7 percent of sales) for the same period a year ago, representing an increase of 10 percent. Net income for the fourth quarter ended totaled $40.4 million, up 2.1 percent from $39.5 million for the same period in 2005. Diluted earnings per common share for the fourth quarter were even at 35 cents on 115.4 million shares versus 35 cents a year ago on 114 million shares.
Comparable store sales for stores open at least one year increased 2.1 percent and 3.3 percent for the fourth quarter and year, respectively, representing 55 quarters of comparable store sales increases since O’Reilly became a public company in April 1993.
“We are extremely proud of the hard work of every member of Team O’Reilly in 2006. Through a combination of relentless attention to every expense detail and our category management efforts, which generated a 44.1 percent gross margin, we were able to produce record operating margins in the midst of very difficult economic conditions,” said CEO and Co-President Greg Henslee. “Our team is committed to providing the highest levels of customer service in our business and we’re looking forward to offering these services to customers in all the new markets in which we’ll expand in 2007."
Ted Wise, COO and co-president, added, "We added 170 new stores in 2006 with 44 of those opening in the fourth quarter. We continue to identify excellent locations for new stores and are on pace to achieve our plan to open 190 to 195 new stores in 2007. Great customer service and executing our dual market strategy will continue to be the foundation of our growth and success as we expand into new markets.”
For more information about O’Reilly, go to: http://www.oreillyauto.com.