O'Reilly Automotive Reports Fourth Quarter and Annual Earnings - aftermarketNews

O’Reilly Automotive Reports Fourth Quarter and Annual Earnings

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.

O’Reilly Automotive Reports Fourth Quarter and Annual Earnings

O'Reilly Automotive reported record revenues and earnings for the fourth quarter and year, which ended on Dec. 31, 2004. The company said the fourth quarter and full year numbers represent 12 consecutive years of record revenues and earnings and positive comparable store product sales increases since becoming a public company in April 1993.

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.

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SPRINGFIELD, MO — O’Reilly Automotive reported record revenues and earnings for the fourth quarter and year, which ended on Dec. 31, 2004. The company said the fourth quarter and full year numbers represent 12 consecutive years of record revenues and earnings and positive comparable store product sales increases since becoming a public company in April 1993.

Net income, before the cumulative effect of accounting change, for the year totaled $124.2 million, up 24.1 percent from $100.1 million for the same period a year ago. Diluted earnings per common share, before the cumulative effect of accounting change, for the year increased 21.2 percent to $2.23 on 55.7 million shares versus $1.84 a year ago on 54.5 million shares. Product sales for the year totaled $1.72 billion, up 13.9 percent from $1.51 billion for 2003. Gross profit for the year increased to $743.2 million (or 43.2 percent of product sales) from $638.3 million (or 42.2 percent of product sales) in 2003, representing an increase of 16.4 percent.

Operating, selling, general and administrative (“OSG&A”) expenses for the year increased to $542.3 million (or 31.5 percent of product sales) from $473.1 million (or 31.3 percent of product sales) for 2003, representing an increase of 14.6 percent. The cumulative effect of accounting change resulted in a one-time benefit of $21.9 million, net of taxes, or an additional 39 cents per diluted share, bringing total earnings for the year to $146.1 million or $2.62 per diluted share.

Net income for the fourth quarter totaled $28.5 million, up 19.2 percent from $23.9 million for the same period in 2003. Diluted earnings per common share for the fourth quarter of 2004 increased 18.6 percent to 51 cents on 56 million shares compared to 43 cents for the fourth quarter of 2003 on 55.3 million shares. Product sales for the fourth quarter totaled $427.6 million, up 16.5 percent from $367 million for the same period a year ago. Gross profit for the fourth quarter increased to $186 million (or 43.5 percent of product sales) from $156 million (or 42.5 percent of product sales) for the same period a year ago, representing an increase of 19.2 percent. OSG&A expenses for the fourth quarter of 2004, increased to $139.5 million (or 32.6 percent of product sales) from $117.2 million (or 31.9 percent of product sales) for the same period a year ago, representing an increase of 19 percent.

Comparable store product sales for stores open at least one year increased 8.5 percent and 6.8 percent for the fourth quarter and year, respectively, representing 47 quarters of comparable store product sales increases since becoming a public company in April 1993.

Effective Jan. 1, 2004, O’Reilly changed its method of applying its LIFO accounting policy for inventory costs. Under the new method, the company has inventoried certain procurement, warehousing and distribution center costs. The previous method was to recognize those costs as incurred, reported as a component of costs of goods sold. The Company believes the new method is preferable as it better matches revenues and expenses and is the prevalent method used by other entities within the automotive aftermarket. The cumulative effect of this change was a one-time benefit of $21.9 million, net of income taxes, or an additional 39 cents per diluted share.

The change increased income before income taxes and cumulative effect of accounting change by $4.4 million and $123,000 for the year and fourth quarter, respectively. The change increased income before cumulative effect of accounting change by $2.7 million (or 5 cents per diluted share) and $76,000 (or zero cents per diluted share) for the year and fourth quarter, respectively.

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