SPRINGFIELD, MO — O’Reilly Automotive has announced record revenues and earnings for the third quarter of 2005, marking 48 quarters of record revenues and earnings for O’Reilly since becoming a public company in April 1993.
Net income for the third quarter ending Sept. 30 totaled $48.6 million, up 40.2 percent from $34.7 million for the same period in 2004. Diluted earnings per common share for the third quarter of 2005 increased 35.5 percent to 42 cents on 113.8 million shares compared to 31 cents for the third quarter of 2004 on 111.6 million shares, including a 5 cent benefit from the favorable resolution of prior tax uncertainties. On an adjusted basis excluding the favorable tax benefit, diluted earnings per common share for the third quarter of 2005 increased 19.4 percent to 37 cents.
Product sales for the three months totaled $542.9 million, up 19.3 percent from $455.2 million for the same period a year ago. Gross profit for the third quarter of 2005 increased to $235.9 million (or 43.5 percent of product sales) from $198.2 million (or 43.5 percent of product sales) for the third quarter of 2004, representing an increase of 19 percent. Operating, Selling, General and Administrative (“OSG&A”) expenses increased to $168.3 million (or 31 percent of product sales) for the third quarter of 2005 from $142 million (or 31.2 percent of product sales) for the third quarter of 2004, representing an increase of 18.5 percent. The reduction in the effective tax rate from 37.3 percent in the third quarter of 2004 to 27.5 percent in the third quarter of 2005 reflects a one-time benefit of $6.1 million from the favorable resolution of prior tax uncertainties.
Net income, before cumulative effect of accounting change, for the first nine months of 2005 totaled $124.8 million, up 30.4 percent from $95.7 million for the same period a year ago. Diluted earnings per common share, before cumulative effect of accounting change, for the first nine months of 2005 increased 27.9 percent to $1.10 on 113.2 million shares compared to 86 cents a year ago on 111.3 million shares, including a 5 cent benefit from the favorable resolution of prior tax uncertainties. On an adjusted basis excluding the favorable tax benefit, diluted earnings per common share, before cumulative effect of accounting change, for the first nine months of 2005 increased 22.1 percent to $1.05.
Product sales for the first nine months of 2005 totaled $1.53 billion, up 18.3 percent from $1.29 billion for the same period a year ago. Gross profit for the first nine months of 2005 increased to $661.1 million (or 43.2 percent of product sales) from $557.2 million (or 43.1 percent of product sales) for the same period a year ago, representing an increase of 18.6 percent. OSG&A expenses increased to $471.8 million (or 30.8 percent of product sales) for the first nine months of 2005 from $402.8 million (or 31.1 percent of product sales) for the same period a year ago, representing an increase of 17.1 percent. The reduction in the effective tax rate from 37.4 percent for the first nine months of 2004 to 33.7 percent in the first nine months of 2005 reflects a one time benefit of $6.1 million from the favorable resolution of prior tax uncertainties.
Comparable store product sales for stores open at least one year increased 6.1 percent and 7.6 percent for the third quarter and first nine months of 2005, respectively.
“We are pleased with our overall performance this quarter as we continue to establish new records for revenues and earnings,” said Greg Henslee, CEO and co-president. “Comparable store sales of 6.1 percent and an operating margin of 12.4 percent highlighted this quarter’s results. We are especially pleased with the outstanding response of Team O’Reilly to the challenging circumstances brought about by Hurricanes Katrina and Rita. The hard work and dedication of our team members have enabled us to continue providing excellent service to our customers. Although the storm inflicted some damage to stores in the affected regions, the hurricanes had no significant effect on third quarter financial results.”
Ted Wise, COO and co-president, added that the company opened 33 new stores this quarter and is on track for 150 new stores in 2005. “Also, we have continued to successfully integrate Midwest Auto Parts into our operations,” Wise said.
For more information about O’Reilly, go to: www.oreillyauto.com.
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