- First quarter comparable store sales growth of 3.4%
- 11% increase in first quarter diluted earnings per share to
$9.20 - Completed the acquisition of
Groupe Del Vasto in January
1st Quarter Financial Results
Sales for the first quarter ended
Net income for the first quarter ended
1st Quarter Comparable Store Sales Results
Comparable store sales are calculated based on the change in sales for
Share Repurchase Program
During the first quarter ended
Updated Full-Year 2024 Guidance
The table below outlines the Company’s updated guidance for selected full-year 2024 financial data:
For the Year Ending | |||
Net, new store openings | 190 to 200 | ||
Comparable store sales | 3.0% to 5.0% | ||
Total revenue | |||
Gross profit as a percentage of sales | 51.0% to 51.5% | ||
Operating income as a percentage of sales | 19.7% to 20.2% | ||
Effective income tax rate | 22.4% | ||
Diluted earnings per share (1) | |||
Net cash provided by operating activities | |||
Capital expenditures | |||
Free cash flow (2) | |||
(1) | Weighted-average shares outstanding, assuming dilution, used in the denominator of this calculation, includes share repurchases made by the Company through the date of this release. |
(2) | Free cash flow is a non-GAAP financial measure. The table below reconciles Free cash flow guidance to Net cash provided by operating activities guidance, the most directly comparable GAAP financial measure: |
For the Year Ending | |||||||||
(in millions) | |||||||||
Net cash provided by operating activities | $ | 2,715 | to | $ | 3,125 | ||||
Less: | Capital expenditures | 900 | to | 1,000 | |||||
Excess tax benefit from share-based compensation payments | 15 | to | 25 | ||||||
Free cash flow | $ | 1,800 | to | $ | 2,100 | ||||
Non-GAAP Information
This release contains certain financial information not derived in accordance with
Earnings Conference Call Information
The Company will host a conference call on
About O’Reilly Automotive, Inc.
O’Reilly Automotive, Inc. was founded in 1957 by the O’Reilly family and is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in
Forward-Looking Statements
The Company claims the protection of the safe-harbor for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward-looking words such as “estimate,” “may,” “could,” “will,” “believe,” “expect,” “would,” “consider,” “should,” “anticipate,” “project,” “plan,” “intend,” or similar words. In addition, statements contained within this press release that are not historical facts are forward-looking statements, such as statements discussing, among other things, expected growth, store development, integration 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, the economy in general; inflation; consumer debt levels; product demand; a public health crisis; the market for auto parts; competition; weather; tariffs; availability of key products and supply chain disruptions; business interruptions, including terrorist activities, war and the threat of war; failure to protect our brand and reputation; challenges in international markets; volatility of the market price of our common stock; our increased debt levels; credit ratings on public debt; damage, failure, or interruption of information technology systems, including information security and cyber-attacks; historical growth rate sustainability; our ability to hire and retain qualified employees; risks associated with the performance of acquired businesses; and governmental regulations. Actual results may materially differ from anticipated results described or implied in these forward-looking statements. Please refer to the “Risk Factors” section of the annual report on Form 10-K for the year ended
For further information contact: | Investor Relations Contacts |
Media Contact | |
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) | ||||||||||||
(Unaudited) | (Unaudited) | (Note) | ||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 89,264 | $ | 59,872 | $ | 279,132 | ||||||
Accounts receivable, net | 437,821 | 346,037 | 375,049 | |||||||||
Amounts receivable from suppliers | 139,267 | 128,758 | 140,443 | |||||||||
Inventory | 4,805,164 | 4,543,980 | 4,658,367 | |||||||||
Other current assets | 128,181 | 109,347 | 105,311 | |||||||||
Total current assets | 5,599,697 | 5,187,994 | 5,558,302 | |||||||||
Property and equipment, at cost | 8,555,556 | 7,649,066 | 8,312,367 | |||||||||
Less: accumulated depreciation and amortization | 3,360,351 | 3,090,010 | 3,275,387 | |||||||||
Net property and equipment | 5,195,205 | 4,559,056 | 5,036,980 | |||||||||
Operating lease, right-of-use assets | 2,227,783 | 2,166,646 | 2,200,554 | |||||||||
1,009,857 | 892,094 | 897,696 | ||||||||||
Other assets, net | 180,512 | 167,026 | 179,463 | |||||||||
Total assets | $ | 14,213,054 | $ | 12,972,816 | $ | 13,872,995 | ||||||
Liabilities and shareholders’ deficit | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 6,117,068 | $ | 6,055,992 | $ | 6,091,700 | ||||||
Self-insurance reserves | 130,974 | 136,723 | 128,548 | |||||||||
Accrued payroll | 127,704 | 111,324 | 138,122 | |||||||||
Accrued benefits and withholdings | 174,125 | 132,022 | 174,650 | |||||||||
Income taxes payable | 147,645 | 117,790 | 7,860 | |||||||||
Current portion of operating lease liabilities | 399,245 | 375,451 | 389,536 | |||||||||
Other current liabilities | 791,633 | 427,006 | 730,937 | |||||||||
Total current liabilities | 7,888,394 | 7,356,308 | 7,661,353 | |||||||||
Long-term debt | 5,288,632 | 4,927,678 | 5,570,125 | |||||||||
Operating lease liabilities, less current portion | 1,900,200 | 1,854,533 | 1,881,344 | |||||||||
Deferred income taxes | 321,323 | 249,903 | 295,471 | |||||||||
Other liabilities | 205,703 | 209,411 | 203,980 | |||||||||
Shareholders’ equity (deficit): | ||||||||||||
Common stock, | ||||||||||||
Authorized shares – 245,000,000 | ||||||||||||
Issued and outstanding shares – | ||||||||||||
58,982,123 as of | ||||||||||||
61,038,936 as of | ||||||||||||
59,072,792 as of | 590 | 610 | 591 | |||||||||
Additional paid-in capital | 1,410,756 | 1,305,276 | 1,352,275 | |||||||||
Retained deficit | (2,849,108 | ) | (2,952,797 | ) | (3,131,532 | ) | ||||||
Accumulated other comprehensive income | 46,564 | 21,894 | 39,388 | |||||||||
Total shareholders’ deficit | (1,391,198 | ) | (1,625,017 | ) | (1,739,278 | ) | ||||||
Total liabilities and shareholders’ deficit | $ | 14,213,054 | $ | 12,972,816 | $ | 13,872,995 | ||||||
Note: The balance sheet at
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) | ||||||||
For the Three Months Ended | ||||||||
2024 | 2023 | |||||||
Sales | $ | 3,976,240 | $ | 3,707,864 | ||||
Cost of goods sold, including warehouse and distribution expenses | 1,942,068 | 1,817,535 | ||||||
Gross profit | 2,034,172 | 1,890,329 | ||||||
Selling, general and administrative expenses | 1,281,691 | 1,173,684 | ||||||
Operating income | 752,481 | 716,645 | ||||||
Other income (expense): | ||||||||
Interest expense | (57,148 | ) | (44,572 | ) | ||||
Interest income | 1,656 | 868 | ||||||
Other, net | 3,401 | 4,479 | ||||||
Total other expense | (52,091 | ) | (39,225 | ) | ||||
Income before income taxes | 700,390 | 677,420 | ||||||
Provision for income taxes | 153,152 | 160,535 | ||||||
Net income | $ | 547,238 | $ | 516,885 | ||||
Earnings per share-basic: | ||||||||
Earnings per share | $ | 9.27 | $ | 8.36 | ||||
Weighted-average common shares outstanding – basic | 59,017 | 61,840 | ||||||
Earnings per share-assuming dilution: | ||||||||
Earnings per share | $ | 9.20 | $ | 8.28 | ||||
Weighted-average common shares outstanding – assuming dilution | 59,454 | 62,398 | ||||||
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) | ||||||||
For the Three Months Ended | ||||||||
2024 | 2023 | |||||||
Operating activities: | ||||||||
Net income | $ | 547,238 | $ | 516,885 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization of property, equipment and intangibles | 109,648 | 93,747 | ||||||
Amortization of debt discount and issuance costs | 1,593 | 1,215 | ||||||
Deferred income taxes | 2,374 | 3,393 | ||||||
Share-based compensation programs | 7,022 | 7,435 | ||||||
Other | 2,997 | 29 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (36,954 | ) | (2,610 | ) | ||||
Inventory | (92,042 | ) | (179,481 | ) | ||||
Accounts payable | 6,107 | 172,701 | ||||||
Income taxes payable | 140,025 | 145,441 | ||||||
Other | 16,207 | (44,991 | ) | |||||
Net cash provided by operating activities | 704,215 | 713,764 | ||||||
Investing activities: | ||||||||
Purchases of property and equipment | (249,240 | ) | (223,268 | ) | ||||
Proceeds from sale of property and equipment | 3,853 | 2,704 | ||||||
Other, including acquisitions, net of cash acquired | (155,366 | ) | (956 | ) | ||||
Net cash used in investing activities | (400,753 | ) | (221,520 | ) | ||||
Financing activities: | ||||||||
Proceeds from borrowings on revolving credit facility | 30,000 | 1,216,000 | ||||||
Payments on revolving credit facility | — | (661,000 | ) | |||||
Net payments of commercial paper | (310,805 | ) | — | |||||
Repurchases of common stock | (270,019 | ) | (1,111,461 | ) | ||||
Net proceeds from issuance of common stock | 57,815 | 15,146 | ||||||
Other | (569 | ) | (354 | ) | ||||
Net cash used in financing activities | (493,578 | ) | (541,669 | ) | ||||
Effect of exchange rate changes on cash | 248 | 714 | ||||||
Net decrease in cash and cash equivalents | (189,868 | ) | (48,711 | ) | ||||
Cash and cash equivalents at beginning of the period | 279,132 | 108,583 | ||||||
Cash and cash equivalents at end of the period | $ | 89,264 | $ | 59,872 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Income taxes paid | $ | 9,798 | $ | 9,696 | ||||
Interest paid, net of capitalized interest | 34,671 | 26,531 | ||||||
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES SELECTED FINANCIAL INFORMATION (Unaudited) | |||||||
For the Twelve Months Ended | |||||||
Adjusted Debt to EBITDAR: | 2024 | 2023 | |||||
(In thousands, except adjusted debt to EBITDAR ratio) | |||||||
GAAP debt | $ | 5,288,632 | $ | 4,927,678 | |||
Add: | Letters of credit | 137,848 | 116,688 | ||||
Unamortized discount and debt issuance costs | 28,368 | 27,322 | |||||
Six-times rent expense | 2,587,056 | 2,404,986 | |||||
Adjusted debt | $ | 8,041,904 | $ | 7,476,674 | |||
GAAP net income | $ | 2,376,934 | $ | 2,207,655 | |||
Add: | Interest expense | 214,244 | 167,451 | ||||
Provision for income taxes | 650,786 | 635,159 | |||||
Depreciation and amortization | 424,962 | 368,757 | |||||
Share-based compensation expense | 27,098 | 27,360 | |||||
Rent expense (i) | 431,176 | 400,831 | |||||
EBITDAR | $ | 4,125,200 | $ | 3,807,213 | |||
Adjusted debt to EBITDAR | 1.95 | 1.96 | |||||
(i) | The table below outlines the calculation of Rent expense and reconciles Rent expense to Total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the twelve months ended |
For the Twelve Months Ended | |||||||
2024 | 2023 | ||||||
Total lease cost, per ASC 842 | $ | 510,208 | $ | 476,439 | |||
Less: | Variable non-contract operating lease components, related to property taxes and insurance | 79,032 | 75,608 | ||||
Rent expense | $ | 431,176 | $ | 400,831 |
2024 | 2023 | |||||||
Selected Balance Sheet Ratios: | ||||||||
Inventory turnover (1) | 1.7 | 1.7 | ||||||
Average inventory per store (in thousands) (2) | $ | 773 | $ | 754 | ||||
Accounts payable to inventory (3) | 127.3 | % | 133.3 | % |
For the Three Months Ended | |||||||
2024 | 2023 | ||||||
Reconciliation of Free Cash Flow (in thousands): | |||||||
Net cash provided by operating activities | $ | 704,215 | $ | 713,764 | |||
Less: | Capital expenditures | 249,240 | 223,268 | ||||
Excess tax benefit from share-based compensation payments | 16,120 | 4,378 | |||||
Free cash flow | $ | 438,855 | $ | 486,118 |
For the Three Months Ended | ||||||
2024 | 2023 | |||||
Revenue Disaggregation (in thousands): | ||||||
Sales to do-it-yourself customers | $ | 2,001,986 | $ | 1,918,467 | ||
Sales to professional service provider customers | 1,869,740 | 1,711,964 | ||||
Other sales, sales adjustments, and sales from the acquired Vast Auto stores | 104,514 | 77,433 | ||||
Total sales | $ | 3,976,240 | $ | 3,707,864 |
For the Three Months Ended | For the Twelve Months Ended | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Store Count: | |||||||||||
Beginning domestic store count | 6,095 | 5,929 | 5,986 | 5,811 | |||||||
New stores opened | 36 | 59 | 146 | 179 | |||||||
Stores closed | — | (2 | ) | (1 | ) | (4 | ) | ||||
Ending domestic store count | 6,131 | 5,986 | 6,131 | 5,986 | |||||||
Beginning | 62 | 42 | 43 | 27 | |||||||
New stores opened | 1 | 1 | 20 | 16 | |||||||
Ending | 63 | 43 | 63 | 43 | |||||||
Beginning | — | — | — | — | |||||||
Stores acquired | 23 | — | 23 | — | |||||||
Ending | 23 | — | 23 | — | |||||||
Total ending store count | 6,217 | 6,029 | 6,217 | 6,029 |
For the Three Months Ended | For the Twelve Months Ended | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
Store and Team Member Information: | ||||||||||||
Total employment | 90,601 | 89,125 | ||||||||||
Square footage (in thousands) (4) | 47,143 | 45,117 | ||||||||||
Sales per weighted-average square foot (4)(5) | $ | 82.59 | $ | 81.09 | $ | 341.62 | $ | 328.29 | ||||
Sales per weighted-average store (in thousands) (4)(6) | $ | 634 | $ | 611 | $ | 2,601 | $ | 2,467 |
(1) | Calculated as cost of goods sold for the last 12 months divided by average inventory. Average inventory is calculated as the average of inventory for the trailing four quarters used in determining the denominator. |
(2) | Calculated as inventory divided by store count at the end of the reported period. |
(3) | Calculated as accounts payable divided by inventory. |
(4) | Represents O’Reilly’s |
(5) | Calculated as sales less jobber sales, divided by weighted-average square footage. Weighted-average square footage is determined by weighting store square footage based on the approximate dates of store openings, acquisitions, expansions, or closures. |
(6) | Calculated as sales less jobber sales, divided by weighted-average stores. Weighted-average stores is determined by weighting stores based on their approximate dates of openings, acquisitions, or closures. |
Source:
2024 GlobeNewswire, Inc., source