UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): October 26, 2004
O'REILLY AUTOMOTIVE, INC.
(Exact Name of Registrant as Specified in Its Charter)
Missouri 44-0618012
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(State or Other Jurisdiction (IRS Employer Identification No.)
of Incorporation)
233 S. Patterson
Springfield, Missouri 65802
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(Address of Principal Executive Offices)(Zip Code)
417-862-6708
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(Registrant's Telephone Number, Including Area Code)
(Not Applicable)
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(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2):
[_] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-d(b))
[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240-13e-4(c))
Section 2 - Financial Information
Item 2.02 Results of Operations and Financial Condition.
On October 26, 2004, O'Reilly Automotive, Inc. issued a press release announcing
thrid quarter earnings. The text of the press release is attached hereto as
Exhibit 99.1.
Section 7 - Regulation FD
ITEM 7.01. REGULATION FD DISCLOSURE
On October 26, 2004, O'Reilly Automotive, Inc. issued a press release announcing
thrid quarter earnings. The text of the press release is attached hereto as
Exhibit 99.1.
Section 9 - Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits
Exhibit
Number Description
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99.1 Press Release dated October 26, 2004
The information in this Current Report on Form 8-K, including the exhibit
hereto, shall not be deemed "filed" for the purposes of Section 18 of the
Securities Exchange Act of 1934, as amended, or otherwise subject to the
liabilities of that section, nor shall it be deemed incorporated by reference in
any filing under the Securities Act of 1933, as amended.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: October 28, 2004
O'REILLY AUTOMOTIVE, INC.
By:/s/ James R. Batten
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James R. Batten
Executive Vice President of Finance
Chief Financial Officer and Treasurer
(principal financial officer)
FOR IMMEDIATE RELEASE
For further information contact: David O'Reilly
James R. Batten
(417) 862-3333
________________________________________________________________________________
O'REILLY AUTOMOTIVE, INC. REPORTS RECORD THIRD QUARTER RESULTS
11.8% OPERATING MARGIN
________________________________________________________________________________
Springfield, MO, October 26, 2004 -- O'Reilly Automotive, Inc. ("O'Reilly" or
"the Company") (Nasdaq: ORLY) today announced record revenues and earnings for
the third quarter of 2004, representing 44 quarters of record revenues and
earnings for O'Reilly since becoming a public company in April 1993.
Net income for the third quarter ended September 30, 2004, totaled $33.2
million, up 12.6% from $29.5 million for the same period a year ago. Diluted
earnings per share for the third quarter of 2004 increased 11.1% to $0.60 on
55.8 million shares compared to $0.54 for the third quarter of 2003 on 54.9
million shares. Product sales for the third quarter ended September 30, 2004,
totaled $455.2 million, up 10.4% from $412.2 million for the same period a year
ago. Gross profit for the third quarter of 2004 increased to $195.8 million (or
43.0% of product sales) from $175.7 million (or 42.6% of product sales) for the
same period a year ago, representing an increase of 11.5%.
Net income for the first nine months of 2004 totaled $93.0 million, up 22.1%
from $76.2 million for the same period a year ago. Diluted earnings per common
share for the first nine months of 2004 increased 19.3% to $1.67 on 55.6 million
shares compared to $1.40 a year ago on 54.3 million shares. Product sales for
the first nine months of 2004 totaled $1.29 billion, up 13.0% from $1.14 billion
for the same period a year ago. Gross profit for the first nine months of 2004
increased to $552.9 million (or 42.7% of product sales) from $482.3 million (or
42.1% of product sales) for the same period a year ago, representing an increase
of 14.6%.
Comparable store product sales for stores open at least one year increased 3.4%
and 6.2% for the third quarter and first nine months of 2004, respectively.
"We are very pleased with the company's performance this past quarter,
particularly in light of the aftermarket's continued relative softness in sales
and with the challenging circumstances that many of our stores in the southeast
faced with the hurricane season," said David O'Reilly, co-chairman and chief
executive officer. "Team O'Reilly fired on all eight cylinders throughout the
quarter achieving a 3.4% comparable store sales increase and opening 35 new
stores, driving a net income increase of 12.6%".
The Company will host a conference call Wednesday, October 27, 2004, at 10:00
a.m. central time to discuss its results, as well as future expectations. The
call will be available by web cast at www.oreillyauto.com, www.vcall.com or
www.streetevents.com. Investors may listen to the conference call live on the
Company's web site, www.oreillyauto.com, by clicking "News". A replay will also
be available on the web site shortly after the call.
O'Reilly Automotive, Inc. is one of the largest specialty retailers of
automotive aftermarket parts, tools, supplies, equipment and accessories in the
United States, serving both the do-it-yourself and professional installer
markets. Founded in 1957 by the O'Reilly family, the Company operated 1,205
stores within the states of Alabama, Arkansas, Florida, Georgia, Illinois,
Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska,
North Carolina, Oklahoma, Tennessee, Texas and Virginia as of September 30,
2004.
The Company claims the protection of the safe-harbor for forward-looking
statements contained in the Private Securities Litigation Reform Act of 1995.
These statements discuss, among other things, expected growth, store development
and expansion strategy, business strategies, future revenues and future
performance. These forward-looking statements are based on estimates,
projections, beliefs and assumptions and are not guarantees of future events and
results. Such statements are subject to risks, uncertainties and assumptions,
including, but not limited to, competition, product demand, the market for auto
parts, the economy in general, inflation, consumer debt levels, governmental
approvals, our ability to hire and retain qualified employees, risks associated
with the integration of acquired businesses, weather, terrorist activities, war
and the threat of war. Actual results may materially differ from anticipated
results described in these forward-looking statements. Please refer to the Risk
Factors sections of the Company's Form 10-K for the year ended December 31,
2003, for more details.
O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
September 30, December 31,
2004 2003
------------ ------------
(Unaudited) (Note)
Assets
Current assets:
Cash and cash equivalents $ 83,619 $ 21,094
Accounts receivable, net 61,493 52,235
Amounts receivable from vendors, net 44,276 50,695
Inventory 612,699 554,309
Deferred income taxes 5,854 4,753
Other current assets 6,143 4,399
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Total current assets 814,084 687,485
Property and equipment, at cost 747,749 626,142
Accumulated depreciation and amortization 208,080 177,084
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Net property and equipment 539,669 449,058
Notes receivable, less current portion 22,082 24,313
Other assets, net 29,493 26,736
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Total assets $ 1,405,328 $ 1,187,592
============ ============
Liabilities and shareholders' equity
Current liabilities:
Income taxes payable $ 17,128 $ 6,872
Accounts payable 268,153 176,513
Accrued payroll 15,415 17,307
Accrued benefits and withholdings 36,979 27,368
Other current liabilities 26,032 16,883
Current portion of long-term debt 592 925
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Total current liabilities 364,299 245,868
Long-term debt, less current portion 100,469 120,977
Deferred income taxes 38,120 29,448
Other liabilities 7,770 7,014
Shareholders' equity:
Common stock, $0.01 par value:
Authorized shares - 90,000,000
Issued and outstanding shares -
55,208,493 at September 30, 2004,
and 54,664,976 at December 31, 2003 552 547
Additional paid-in capital 320,050 302,691
Retained earnings 574,068 481,047
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Total shareholders' equity 894,669 784,285
------------ ------------
Total liabilities and shareholders' equity $ 1,405,328 $ 1,187,592
============ ============
Note: The balance sheet at December 31, 2003, has been derived from the audited
consolidated financial statements at that date, but does not include all of the
information and footnotes required by accounting principles generally accepted
in the United States for complete financial statements.
O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------- --------------------------
2004 2003 2004 2003
----------- ----------- ----------- -----------
Product sales $ 455,162 $ 412,182 $ 1,293,623 $ 1,144,769
Cost of goods sold, including
warehouse and distribution expenses 259,314 236,529 740,679 662,457
----------- ----------- ----------- -----------
Gross profit 195,848 175,653 552,944 482,312
Operating, selling, general and
administrative expenses 142,039 127,291 402,798 355,883
----------- ----------- ----------- -----------
Operating income 53,809 48,362 150,146 126,429
Other expense, net (791) (1,179) (1,675) (4,594)
----------- ----------- ----------- -----------
Income before income taxes 53,018 47,183 148,471 121,835
Provision for income taxes 19,775 17,650 55,450 45,650
----------- ----------- ----------- -----------
Net income $ 33,243 $ 29,533 $ 93,021 $ 76,185
=========== =========== =========== ===========
Net income per common share $ 0.60 $ 0.55 $ 1.69 $ 1.42
=========== =========== =========== ===========
Net income per common share
- assuming dilution $ 0.60 $ 0.54 $ 1.67 $ 1.40
=========== =========== =========== ===========
Weighted-average common shares outstanding 55,140 54,090 54,923 53,711
=========== =========== =========== ===========
Adjusted weighted-average common shares
outstanding - assuming dilution 55,778 54,864 55,627 54,282
=========== =========== =========== ===========
O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(Unaudited)
September 30,
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2004 2003
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Inventory turnover (1) 1.65 1.64
Inventory turnover, net of payables (2) 2.61 2.16
AP to inventory (3) 43.8% 28.7%
Debt-to-capital (4) 10.2% 12.9%
Return on equity (5) 14.2% 13.8%
Return on assets (6) 9.2% 9.0%
Square footage (in thousands) 8,016 7,082
Store count:
New stores, net (three months ended) 35 33
Total stores 1,205 1,074
Total employment 17,320 15,660
Three Months Ended
September 30,
----------------------
2004 2003
--------- ---------
Other information (in thousands):
Capital expenditures $ 44,472 $ 32,448
Depreciation & amortization $ 12,512 $ 10,651
Interest expense $ 1,542 $ 1,546
Lease & rental expense $ 8,478 $ 8,559
Sales per weighted-average square foot (7) $ 56.65 $ 57.63
Sales per weighted-average store (in thousands) (8) $ 376 $ 380
(1) Calculated as cost of sales for the last 12 months divided by average
inventory. Average inventory is calculated as the simple average of
beginning and ending inventory for the same period used in determining the
numerator.
(2) Calculated as cost of sales divided by average inventory less accounts
payable. Average inventory is calculated as the simple average of beginning
and ending inventory for the same period used in determining the numerator.
(3) Accounts payable divided by inventory.
(4) The sum of long-term debt and current portion of long-term debt, divided by
the sum of long-term debt, current portion of long-term debt and total
shareholders' equity.
(5) Last 12 months net income divided by average shareholders' equity. Average
shareholders' equity is calculated by taking a simple average of the
beginning and ending shareholders' equity for the same period used in
determining the numerator.
(6) Last 12 months net income divided by average total assets. Average total
assets is calculated by taking a simple average of the beginning and ending
total assets for the same period used in determining the numerator.
(7) Total sales less jobber sales, divided by weighted-average square feet.
Weighted-average sales per square foot is weighted to consider the
approximate dates of store openings or expansions.
(8) Total sales less jobber sales, divided by weighted-average stores.
Weighted-average sales per store is weighted to consider the approximate
dates of store openings or expansions.