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
April 22, 2003
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Date of Report
O'REILLY AUTOMOTIVE, INC.
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(Exact name of registrant as specified in its charter)
Missouri 44-0618012
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
233 S. Patterson
Springfield, Mo 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
Item 9. Regulation FD Disclosure/Results of Operations and Financial Condition
O'Reilly Automotive, Inc. announced on April 22, 2003 its first quarter 2003
results. The press release is attached hereto as Exhibit 99.1 and is
incorporated herein by reference.
SIGNATURES
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 thereunto duly authorized.
O'REILLY AUTOMOTIVE, INC.
/s/ James R. Batten
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James R. Batten
Vice President of Finance
Chief Financial Officer and Treasurer
(principal financial officer)
April 23, 2003
EXHIBIT INDEX
99.1 Press Release dated April 22, 2003
FOR IMMEDIATE RELEASE
For further information contact: David O'Reilly
James R. Batten
(417) 862-3333
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O'REILLY AUTOMOTIVE REPORTS COMPARABLE STORE SALES OF 6.2% AND
RECORD FIRST QUARTER SALES AND EARNINGS
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Springfield, MO, April 22, 2003 -- O'Reilly Automotive, Inc. ("O'Reilly" or "the
Company") (Nasdaq: ORLY) today announced record revenues and earnings for the
first quarter of 2003, representing 38 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, 2003, totaled $19.7 million, up
18.5% from $16.6 million for the same period in 2002. Diluted earnings per
common share for the first quarter of 2003 increased 19.4% to $0.37 on 53.8
million shares compared to $0.31 for the first quarter of 2002 on 53.6 million
shares. Product sales for the three months ended March 31, 2003, totaled $339.5
million, up 14.9% from $295.5 million for the same period a year ago. Gross
profit for the first quarter of 2003 increased to $140.9 million (or 41.5% of
product sales) from $126.0 million (or 42.7% of product sales) for the first
quarter of 2002, representing an increase of 11.8%. Operating, Selling, General
and Administrative ("OSG&A") expenses increased to $107.6 million (or 31.7% of
product sales) for the first quarter 2003 from $97.4 million (or 33.0% of
product sales) for the first quarter 2002.
Comparable store product sales for stores open at least one year increased 6.2%
and 3.6% for the first quarter of 2003 and 2002, respectively.
David O'Reilly, co-chairman and chief executive officer, stated, "We are pleased
with the 6.2% comparable store sales and the financial results for the quarter
despite the uncertainties in the economy. Our company-wide cost control
initiatives resulted in a 130 basis point drop in OSG&A expenses as a percent of
product sales for the first quarter 2003 compared to 2002. Additionally, we
generated $25.2 million in free cash flow [cash provided by operating activities
less capital expenditures] in the first quarter of 2003."
Ted Wise, co-president, stated, "We opened 30 new stores and completed five
relocations and four renovations this quarter. We expect to open a total of 130
new stores this year, approximately 60-70% of which will be in our southeastern
markets."
The Company will host a conference call Wednesday, April 23, 2003, at 10:00 a.m.
central time to discuss its results as well as future expectations. The call
will be available by webcast at www.oreillyauto.com, www.vcall.com or
www.streetevents.com. Investors may listen to the conference call live on the
Company Web site, www.oreillyauto.com, by clicking "Investor Information," then
"Conference Calls." A replay will also be available on the Web site shortly
after the call.
O'Reilly Automotive 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 1,011 stores within
the states of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa,
Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, North Carolina,
Oklahoma, Tennessee and Texas as of March 31, 2003.
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,
2002, for more details. O'Reilly Automotive 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.
O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2003 2002
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(Unaudited) (Note)
In thousands
Assets
Current assets:
Cash $ 19,744 29,333
Accounts receivable, net 51,644 45,421
Amounts receivable from vendors 47,684 42,918
Inventory 502,506 504,098
Deferred income taxes -- 5,040
Other current assets 5,014 4,235
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Total current assets 626,592 631,045
Property and equipment, at cost 523,440 491,523
Accumulated depreciation and amortization 147,788 137,922
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Net property and equipment 375,652 353,601
Notes receivable 1,861 1,880
Other assets 24,558 22,893
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Total assets $ 1,028,663 $ 1,009,419
=============== ===============
Liabilities and shareholders' equity
Current liabilities:
Income taxes payable $ 10,998 $ 9,798
Accounts payable 112,552 85,370
Accrued payroll 13,142 15,257
Accrued benefits and withholdings 18,954 19,165
Current deferred income taxes 554 --
Other current liabilities 18,869 17,150
Current portion of long-term debt 578 682
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Total current liabilities 175,647 147,422
Long-term debt, less current portion 155,371 190,470
Deferred income taxes 17,348 15,939
Other liabilities 7,187 5,064
Shareholders' equity:
Common stock, $0.01 par value:
Authorized shares - 90,000,000
Issued and outstanding shares -
53,494,797 at March 31, 2003,
and 53,371,242 at December 31, 2002 535 534
Additional paid-in capital 271,887 269,030
Retained earnings 400,688 380,960
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Total shareholders' equity 673,110 650,524
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Total liabilities and shareholders' equity $ 1,028,663 $ 1,009,419
Note: The balance sheet at December 31, 2002, has been derived from the audited
financial statements at that date, but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements.
O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
March 31,
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2003 2002
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(Numbers in thousands,
except per share data)
Product sales $ 339,475 $ 295,489
Cost of goods sold, including warehouse
and distribution expenses 198,529 169,461
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Gross profit 140,946 126,028
Operating, selling, general and
administrative expenses 107,605 97,390
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Operating income 33,341 28,638
Other expense, net (1,763) (1,871)
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Income before income taxes 31,578 26,767
Provision for income taxes 11,850 10,125
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Net income $ 19,728 $ 16,642
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Net income per common share $ 0.37 $ 0.31
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Net income per common share - assuming dilution $ 0.37 $ 0.31
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Weighted average common shares outstanding 53,402 52,884
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Adjusted weighted average common shares
outstanding - assuming dilution 53,753 53,607
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O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(Unaudited)
Three Months Ended
March 31,
2003 2002
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Inventory turnover (1) 1.6 1.6
Inventory turnover, net of payables (2) 2.0 1.9
AP to Inventory 22.4% 15.7%
Debt-to-capital 18.8% 23.8%
Return on equity 13.6% 13.4%
Return on assets 8.9% 8.7%
Total employment 14,563 13,251
Miscellaneous (in thousands):
Capital Expenditures $ 32,189 $ 21,428
Depreciation & Amortization $ 10,381 $ 8,484
Interest Expense $ 2,287 $ 2,437
Lease & Rental Expense $ 8,367 $ 8,305
Store count:
New stores, net 30 24
Total stores 1,011 899
Square footage (in thousands) 6,835 6,046
Sales per weighted average square foot $ 48.78 $ 48.07
Sales per weighted average store (in thousands) $ 329 $ 323
(1) Inventory turnover is calculated as cost of sales for the last 12 months
divided by the average of beginning and ending inventory.
(2) Inventory turnover, net of payables is calculated as cost of sales divided
by the average of beginning and ending inventory less accounts payable.