SPRINGFIELD, Mo. — O’Reilly Automotive has announced record revenues and earnings for its third quarter ended Sept. 30, 2011.
Sales for the third quarter increased by $110 million, or 8 percent, to $1.54 billion from $1.43 billion for the same period one year ago. Gross profit for the third quarter increased to $754 million (or 49.1 percent of sales) from $693 million (or 48.6 percent of sales) for the same period one year ago, representing an increase of 9 percent.
Operating income for the third quarter increased to $241 million (or 15.7 percent of sales) from $199 million (or 14 percent of sales) for the same period one year ago, representing an increase of 21 percent.
Net income for the third quarter increased $32 million, or 27 percent, to $148 million (or 9.7 percent of sales) from $117 million (or 8.2 percent of sales) for the same period one year ago. Diluted earnings per common share for the third quarter increased 34 percent to $1.10 on 135 million shares versus 82 cents for the same period one year ago on 142 million shares.
As previously announced, the company’s results for the three months ended Sept. 30, 2010, included a charge related to the legacy U.S. Department of Justice (DOJ) investigation of CSK Auto Corp. (CSK) into CSK’s pre-acquisition historical accounting practices. The company accrued $15 million during the second quarter of 2010 and an additional $5.9 million during the third quarter of 2010 in anticipation of executing a Non-Prosecution Agreement (NPA) among the DOJ, CSK and O’Reilly and paying a one-time monetary penalty of $20.9 million. During the third quarter of 2011, the NPA was executed and the previously recorded, one-time $20.9 million penalty was paid to the DOJ on behalf of CSK.
Adjusted operating income, adjusted net income and adjusted diluted earnings per common share for the third quarter ended Sept. 30, 2010, in the paragraph below were adjusted for the impact of the $5.9 million charge related to the legacy CSK DOJ investigation discussed above. Adjusted operating income for the third quarter ended September 30, 2011, increased 18 percent, to $241 million (or 15.7 percent of sales) from $205 million (or 14.4 percent of sales) for the same period one year ago.
Adjusted net income for the third quarter increased 21 percent, to $148 million (or 9.7 percent of sales) from $122 million (or 8.6 percent of sales) for the same period one year ago. Adjusted diluted earnings per common share, for the third quarter increased 28 percent, to $1.10 from 86 cents for the same period one year ago.
Commenting on the company’s quarterly results, Greg Henslee, co-president and CEO, stated, "We are pleased to report another successful quarter. Our results are highlighted by a solid 4.8 percent comparable store sales increase on top of an extremely strong comparable store sales increase of 11.1 percent last year, a 50 basis point improvement in gross margin and a record-breaking 15.7 percent operating margin. The continued trend of solid comparable store sales increases is the direct result of the hard work and commitment to unsurpassed customer service from each of our dedicated team members. Our relentless focus on expense control, at all levels, led to the 130 basis point improvement in adjusted operating margin. I am very pleased with the performance of Team O’Reilly and would like to thank all of our team members for their commitment to exceeding customer expectations."
"During the third quarter, we continued to invest in profitable growth with the opening of 50 new stores, which raised our total store count to 3,707 stores in 39 states," added Ted Wise, co-president and COO. "Throughout the year, we opened stores in many of our existing markets, as well as several new markets, further leveraging the capacity of our comprehensive network of 23 regional distribution centers. Our nearly 50,000 team members remain dedicated to developing strong and lasting relationships with both our retail and professional service provider customers and to establishing the O’Reilly Brand as a symbol of the best value, customer service and parts availability in the industry."
Sales for the first nine months of 2011 increased $310 million, or 8 percent, to $4.40 billion from $4.09 billion for the same period one year ago. Gross profit for the first nine months of 2011 increased to $2.14 billion (or 48.7 percent of sales) from $1.98 billion (or 48.6 percent of sales) for the same period one year ago, representing an increase of 8 percent SG&A for the first nine months of 2011 increased to $1.48 billion (or 33.7 percent of sales) from $1.41 billion (or 34.6 percent of sales) for the same period one year ago, representing an increase of 5 percent. Operating income for the first nine months of 2011 increased to $660 million (or 15 percent of sales) from $549 million (or 13.4 percent of sales) for the same period one year ago, representing an increase of 20 percent.
Net income for the first nine months of 2011 increased $71 million, or 23 percent, to $385 million (or 8.7 percent of sales) from $314 million (or 7.7 percent of sales) for the same period one year ago. Diluted earnings per common share for the first nine months of 2011 increased 24 percent to $2.76 on 139 million shares versus $2.23 for the same period one year ago on 141 million shares.
