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): April 27, 2004
O'REILLY AUTOMOTIVE, INC.
(Exact Name of Registrant as Specified in Its Charter)
Missouri 44-0618012
--------------------------------------------------------------------------------
(State or Other Jurisdiction (IRS Employer Identification No.)
of Incorporation)
233 S. Patterson
Springfield, Missouri 65802
--------------------------------------------------------------------------------
(Address of Principal Executive Offices)(Zip Code)
417-862-6708
--------------------------------------------------------------------------------
(Registrant's Telephone Number, Including Area Code)
(Not Applicable)
--------------------------------------------------------------------------------
(Former name or former address, if changed since last report.)
ITEM 9. REGULATION FD DISCLOSURE
The press release is attached hereto as Exhibit 99.1 and is incorporated
herein by reference.
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: April 29, 2004
O'REILLY AUTOMOTIVE, INC.
By:/s/ James R. Batten
-------------------------------------------
James R. Batten
Executive Vice President of Finance
Chief Financial Officer and Treasurer
(principal financial officer)
EXHIBIT INDEX
Exhibit
Number Description
------ -----------------------------------------------------------------
99.1 Press Release dated April 27, 2004
O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
Exhibit 99.1
FOR IMMEDIATE RELEASE
For further information contact: David O'Reilly
James R. Batten
(417) 862-3333
________________________________________________________________________________
O'REILLY AUTOMOTIVE, INC. REPORTS RECORD FIRST QUARTER SALES AND EARNINGS
12.4% INCREASE IN COMPARABLE STORE PRODUCT SALES
32.4% EARNINGS PER SHARE GROWTH
________________________________________________________________________________
Springfield, MO, April 27, 2004 -- O'Reilly Automotive, Inc. ("O'Reilly" or "the
Company") (Nasdaq: ORLY) today announced record revenues and earnings for the
first quarter of 2004, representing 42 quarters of record revenues and earnings
for O'Reilly since becoming a public company in April 1993.
Net income for the first quarter ended March 31, 2004, totaled $27.1 million, up
37.5% from $19.7 million for the same period in 2003. Diluted earnings per
common share for the first quarter of 2004 increased 32.4% to $0.49 on 55.4
million shares compared to $0.37 for the first quarter of 2003 on 53.8 million
shares. Product sales for the three months ended March 31, 2004, totaled $403.3
million, up 18.8% from $339.5 million for the same period a year ago. Gross
profit for the first quarter of 2004 increased to $169.3 million (or 42.0% of
product sales) from $140.9 million (or 41.5% of product sales) for the first
quarter of 2003, representing an increase of 20.1%. Operating, Selling, General
and Administrative ("OSG&A") expenses increased to $125.6 million (or 31.1% of
product sales) for the first quarter of 2004 from $107.6 million (or 31.7% of
product sales) for the first quarter of 2003, representing an increase of 16.7%.
Comparable store product sales for stores open at least one year increased 12.4%
and 6.2% for the first quarter of 2004 and 2003, respectively.
"This was an outstanding quarter for our team," said David O'Reilly, co-chairman
and chief executive officer. "We entered the quarter with great momentum and
delivered record results highlighted by the industry-leading 12.4% increase in
comparable store product sales and strong earnings performance. We added 23 new
stores and reduced debt by $20.0 million. We are pleased with these results and
remain enthusiastic about the opportunities that lie ahead in 2004."
The Company will host a conference call Wednesday, April 28, 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 1,132
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 March 31, 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
March 31, December 31,
2004 2003
-------------- --------------
(Unaudited) (Note)
In thousands
Assets
Current assets:
Cash $ 45,337 $ 21,094
Accounts receivable, net 58,068 52,235
Amounts receivable from vendors 47,673 50,695
Inventory 561,914 554,309
Deferred income taxes 427 4,753
Other current assets 9,219 4,399
-------------- --------------
Total current assets 722,638 687,485
Property and equipment, at cost 663,294 626,142
Accumulated depreciation and amortization 185,550 177,084
-------------- --------------
Net property and equipment 477,744 449,058
Notes receivable 23,377 24,313
Other assets 29,218 26,736
-------------- --------------
Total assets $ 1,252,977 $ 1,187,592
============== ==============
Liabilities and shareholders' equity
Current liabilities:
Income taxes payable $ 14,214 $ 6,872
Accounts payable 216,536 176,513
Accrued payroll 16,883 17,307
Accrued benefits and withholdings 31,343 27,368
Other current liabilities 17,833 16,883
Current portion of long-term debt 833 925
-------------- --------------
Total current liabilities 297,642 245,868
Long-term debt, less current portion 100,823 120,977
Deferred income taxes 32,578 29,448
Other liabilities 7,129 7,014
Shareholders' equity:
Common stock, $0.01 par value:
Authorized shares - 90,000,000
Issued and outstanding shares -
54,784,667 at March 31, 2004,
and 54,664,976 at December 31, 2003 548 547
Additional paid-in capital 306,084 302,691
Retained earnings 508,173 481,047
-------------- --------------
Total shareholders' equity 814,805 784,285
-------------- --------------
Total liabilities and shareholders' equity $ 1,252,977 $ 1,187,592
============== ==============
Note: The balance sheet at December 31, 2003, has been derived from the audited
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)
Three Months Ended
March 31,
-----------------------
2004 2003
---------- ----------
(Numbers in thousands,
except per share data)
Product sales $ 403,294 $ 339,475
Cost of goods sold, including warehouse
and distribution expenses 233,956 198,529
---------- ----------
Gross profit 169,338 140,946
Operating, selling, general and
administrative expenses 125,566 107,605
---------- ----------
Operating income 43,772 33,341
Other expense, net (446) (1,763)
---------- ----------
Income before income taxes 43,326 31,578
Provision for income taxes 16,200 11,850
---------- ----------
Net income $ 27,126 $ 19,728
========== ==========
Net income per common share $ 0.50 $ 0.37
========== ==========
Net income per common share - assuming dilution $ 0.49 $ 0.37
========== ==========
Weighted average common shares outstanding 54,694 53,402
========== ==========
Adjusted weighted average common shares
outstanding - assuming dilution 55,381 53,753
========== ==========
O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(Unaudited)
March 31,
--------------------
2004 2003
-------- --------
Inventory turnover (1) 1.7 1.6
Inventory turnover, net of payables (2) 2.5 2.0
AP to Inventory (3) 38.5% 22.4%
Debt-to-capital (4) 11.1% 18.8%
Return on equity (5) 14.5% 13.6%
Return on assets (6) 9.4% 8.9%
Square footage (in thousands) 7,510 6,619
Store count:
New stores, net (three months ended) 23 30
Total stores 1,132 1,011
Total employment 16,540 14,563
Three Months Ended
March 31,
----------------------
2004 2003
--------- ---------
Other Information (in thousands):
Capital Expenditures $ 40,078 $ 32,189
Depreciation & Amortization $ 10,894 $ 10,381
Interest Expense $ 895 $ 2,287
Lease & Rental Expense $ 8,833 $ 8,367
Sales per weighted-average square foot (7) $ 53.44 $ 50.36
Sales per weighted-average
store (in thousands) (8) $ 354 $ 329
(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.
O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
RECONCILIATION OF FREE CASH FLOW TO OPERATING CASH FLOW
(Unaudited)
Three Months Ended
March 31,
----------------------
2004 2003
--------- ---------
(In thousands)
Net cash provided by operating activities $ 82,011 $ 57,344
Capital expenditures 40,078 32,189
--------- ---------
Free cash flow (1)(2) $ 41,933 $ 25,155
========= =========
(1) Free cash flow is calculated as net cash provided by operating activities
less capital expenditures.
(2) The Company believes that presenting free cash flow provides investors a
metric to evaluate the Company's ability to fund its planned growth.