Article > Current Events

O'Reilly Automotive Reports Fourth-Quarter and Full-Year 2009 Results


Fourth-quarter sales up 5 percent; for the year, sales increased 36 percent.
By aftermarketNews staff

SPRINGFIELD, Mo. -- O'Reilly Automotive has announced record revenues and earnings for the fourth quarter and year ended Dec. 31, 2009, representing 17 consecutive years of positive comparable store sales increases for O'Reilly since becoming a public company in April 1993.

Sales for the fourth quarter ended Dec. 31, 2009, totaled $1.17 billion, up 5 percent from $1.11 billion for the same period a year ago. Gross profit for the fourth quarter ended Dec. 31, 2009, increased to $570 million (or 48.5 percent of sales) from $515 million (or 46.2 percent of sales) for the same period a year ago, representing an increase of 11 percent.

Net income for the fourth quarter totaled $72 million, up 68 percent from $43 million for the same period in 2008. Diluted earnings per common share for the fourth quarter ended Dec. 31, 2009, increased 63 percent to 52 cents on 139 million shares versus 32 cents a year ago on 135.4 million shares.

Commenting on the company's quarter and year-end results, Greg Henslee, CEO and co-president, stated, "We are pleased to report double-digit earnings growth for the fourth consecutive quarter. Our adjusted diluted earnings per share increased 41 percent to 52 cents for the fourth quarter and increased 38 percent to $2.26 for the year. During the fourth quarter, we saw comparable store sales growth from both the core O'Reilly and acquired CSK stores. These sales gains, along with continued improvements in our gross margin, have been the catalyst for our strong earnings. Stores operating on the O'Reilly systems generated a comparable store sales increase of 2.4 percent, while stores operating on the legacy CSK system added a solid 3.5 percent increase. The O'Reilly systems comparable store sales results consisted of a 3.1 percent increase for the core O'Reilly and post conversion Schuck's stores, an 8.5 percent increase from the 123 converted Checker stores and an 11 percent decrease in comparable store sales from the 141 converted Murray's stores. We entered the next phase of our CSK integration plan with the opening of our Seattle, Wash., distribution center (DC) in November and we successfully converted 141 Schuck's stores to the O'Reilly systems following that opening. We remain confident that implementing our dual market strategy in the western half of the country will allow our acquired CSK stores to continue to gain market share and enable them to contribute positively to the profitable growth of O'Reilly."

For the year ended Dec. 31, 2009, sales increased $1.27 billion, or 36 percent, to $4.85 billion from $3.58 billion for the year ended Dec. 31, 2008. Gross profit for the year increased to $2.33 billion (or 48 percent of sales) from $1.63 billion (or 45.5 percent of sales) for the year ended Dec. 31, 2008, representing an increase of 43 percent.
Net income for the year totaled $307 million, an increase of 65 percent from $186 million for the year ended Dec. 31, 2008. Diluted earnings per common share for the year ended Dec. 31, 2009, increased 51 percent to $2.23 on 137.9 million shares versus $1.48 a year ago on 125.4 million shares.

Ted Wise, COO and co-president, remarked, "We began 2009 with 3,285 stores, 18 distribution centers, and a plan for aggressive growth. By the end of the year, we increased our store count to 3,421 and our distribution center count to 20, with three more distribution centers to open in the first half of 2010. We have made significant progress with the CSK integration in the past year, including the completion of 141 Murray's store conversions, 72 Checkers store conversions in the Upper Midwest, 141 Schuck's store conversions in the Upper Northwest, conversion of our Detroit distribution center and the opening of our Seattle distribution center. Following the November opening of our Seattle DC, we began converting Schuck's stores at a rate of approximately 30 stores per week, which progressed smoothly. In January of 2010, we opened Moreno Valley, Calif., the second of our planned four additional DCs in the western markets, and we began converting approximately 30 Kragen stores per week to our distribution model. Our dedicated store conversion teams will work to continue this rate of conversions throughout most of 2010. The two remaining additional DCs are scheduled to open in Denver, Colo., in March and in Salt Lake City, Utah, in May of this year. We will also relocate our current DC in Dixon, Calif., to Stockton, Calif., and convert our Phoenix, Ariz., DC to O'Reilly systems in the second half of 2010."

The company estimates diluted earnings per share for the first quarter of 2010 to range from 56 cents to 60 cents and estimates diluted earnings per share for the year ended Dec. 31, 2010, to range from $2.50 to $2.56.

The company estimates consolidated comparable store sales for the first quarter of 2010 to range from 2 percent to 4 percent. The company estimates consolidated comparable store sales for the year ended Dec. 31, 2010, to range from 3 percent to 5 percent

Henslee added, "As a result of our team's hard work, dedication and commitment to providing the best customer service in our industry, we have exceeded our stated goal of achieving $4 billion in sales by the end of 2010, a full year early. Looking forward to 2010, we see consumer concerns over high unemployment and a challenging macro environment as signs that our customers will continue to maintain their current vehicles and, therefore, drive demand in our industry. We are very encouraged with the opportunities we have to grow our market share as we continue to expand our distribution infrastructure in the Western United States and continue the conversion of our CSK stores to the O'Reilly Brand."
  Previous Comments
avatar   Tom P   star   4/1/2010   1:24 PM

Got wind of new management procedure at spfd dc, sneak around in rafters and on catwalk so as to get better view while spying on employees, Man Chub and Charlie wouldnt have stood for this nonsense.Whse mngr needs fired. da and jp

avatar   b   star   3/8/2010   1:53 PM

I have worked at 2 other auto chains one thing I can

say about O'Reillys is that getting parts seem to come

quicker and much more relaxed working enviroment. If u don't like your pay go somewhere else.

avatar   Will   star   3/8/2010   10:12 AM

My favorite group of workers is the "Paperwork Reduction Team". Doesn't seem to eliminate the paperwork you have to do in the morning. Serious waste of payroll in my opinion. Auditors however are a good thing to have. Keeps most everyone honest. Coorp. Assistants should go, can't the higher-ups do their work themselves?

avatar   Chris   star   3/6/2010   2:27 PM

Stop using my name, you're making me look bad. O.o

Anyway, I absolutely agree with buzz there.

avatar   Chris   star   3/4/2010   5:52 PM

if you can't spell or learn to make complete sentences then you shouldn't be complaining about how bad your job is..............or if you think different then stop complaining and do something about it..........amen?

avatar   MajicMike   star   3/4/2010   11:08 AM

Ive been with oreillys sense 06 , left then came back. You guys dont know how Oreillys treats you. This company is build on honesty and the "Live Green " way.Define "Team" saids O'Reillys.

avatar   Will   star   2/23/2010   2:25 PM

Tom, we had a manager from Advance tell us how good he was and how much he grew sales in his area. He lasted 1 week at Napa. Haven't had to many braggarts here at the "O" ...YET. I just watch them go out not long after they come in. I'm not perfect but I know how to do my job. It's all about communication, mutual understanding, and respect. If you don't have any of these, you fail.

avatar   Tom   star   2/23/2010   1:05 PM

We have a new DM also. I hated to see the old one go,but he moved up to RM. Great for him been with us along time. New guy seems to be alright,as long as certain things get done he is a ok. Some DM's have to show that they are needed,others will just leave well enough alone. If a store is producing good numbers and it works then leave it alone. When at AZ I had a DM come in from Mississippi. He instructed me on the way they did it there. I instructed him that we were not in Mississippi. He didn't last long. Communication is a wonderful thing, but it is better to listen and agree sometimes. They'll figure it out sooner or later when sales go to pot.

avatar   Tom   star   2/22/2010   3:16 PM

Sorry to see someone leave. Hope you have another job lined up. I considered myself a fixture here at the Mafia. Plan is to retire here.You just have to go with the flow sometimes.Don't let it eat on you and all will be good.

avatar   Mike   star   2/22/2010   1:31 PM

Chris are you serious?! This is the best company (for it's size) to work for. It is very family oriented. At least in my district it is. I am just an ISS, but the upper management are always asking how the family is, and how I am doing. And they actually stop and listen. Not just automated motions. Customers are always taling good things about us. How clean the stores are. How friendly the staff is. I won't work for another company now that I'm here. Trust me I have worked for just about all of them. GO TEAM OREILLY!!!!!!!!!!!!!!!

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