O’Reilly Automotive, Inc. (the “Company” or “O’Reilly”)
(
Nasdaq: ORLY), a leading
retailer in the automotive aftermarket industry, today announced
record revenue and earnings for its second quarter ended
June 30, 2020.
2nd
Quarter Financial ResultsGreg Johnson,
O’Reilly’s CEO and Co-President, commented, “During the second
quarter and through the date of this release, the communities we
serve faced significant, ongoing challenges from the COVID-19
pandemic, and our top priority continues to be the protection of
the health and safety of our Team Members and customers.
After experiencing significant COVID-related sales headwinds in the
first two weeks of the quarter, we saw an immediate and dramatic
improvement in our business and sustained robust, record-setting
sales volumes throughout the remainder of our second quarter.
Our DIY business was extremely strong and the bigger contributor to
our 16.2% increase in comparable store sales for the quarter;
however, our professional business also improved significantly as
we progressed through the quarter, generating robust comparable
store sales above our expectations in May and June. It is
clear there were several positive macroeconomic factors that
supported the strong demand in our industry in the second quarter,
including, among others, the government stimulus and unemployment
benefits and the re-opening of consumer activity as stay-at-home
orders began lifting. As beneficial as the market conditions
were in the second quarter, we know our record-setting financial
performance would not have been possible without outstanding
execution by our dedicated, hard-working Team. We are
extremely proud of the outstanding job our Team has done to
implement safety measures while still providing the outstanding
service that has been so critical to our customers during this
pandemic.”
Mr. Johnson further commented, “Our Team’s
performance in the second quarter is even more impressive in light
of the cost control steps we executed to conserve cash and align
our business with the severe headwinds we were experiencing at the
beginning of the second quarter. We were very pleased to see
our business rebound, as our customers began to benefit under the
CARES Act in the middle of April, but we maintained a prudent,
cautious approach as we progressed through the second quarter,
taking into consideration the high level of uncertainty regarding
how our business would perform week to week. The combination
of strong sales and strong expense control resulted in an
incredible operating profit margin of 23.8% during the second
quarter, which exceeds our previous best single quarter performance
by well over 300 basis points. While we recognize this
remarkably strong leverage of SG&A expense is not sustainable
over the long term and expect our per-store dollar spend to
increase as we continually match service levels to the business
environment, our Team’s ability to deliver such an outstanding
quarter is an incredible accomplishment, and we want to offer our
sincere thanks to Team O’Reilly for their selfless dedication to
our customers.”
Sales for the second quarter ended
June 30, 2020, increased $502 million, or 19%, to $3.09
billion from $2.59 billion for the same period one year ago.
Gross profit for the second quarter increased 20% to $1.64 billion
(or 53.0% of sales) from $1.37 billion (or 52.8% of sales) for the
same period one year ago. Selling, general and administrative
expenses (“SG&A”) for the second quarter increased 4% to $901
million (or 29.1% of sales) from $870 million (or 33.6% of sales)
for the same period one year ago. Operating income for the
second quarter increased 48% to $736 million (or 23.8% of sales)
from $498 million (or 19.2% of sales) for the same period one year
ago.
Net income for the second quarter ended
June 30, 2020, increased $178 million, or 50%, to $532
million (or 17.2% of sales) from $354 million (or 13.7% of sales)
for the same period one year ago. Diluted earnings per common
share for the second quarter increased 57% to $7.10 on 75 million
shares versus $4.51 on 78 million shares for the same period one
year ago.
Year-to-Date Financial
ResultsSales for the first six months of 2020
increased $568 million, or 11%, to $5.57 billion from $5.00 billion
for the same period one year ago. Gross profit for the first
six months of 2020 increased 11% to $2.93 billion (or 52.7% of
sales) from $2.65 billion (or 52.9% of sales) for the same period
one year ago. SG&A for the first six months of 2020
increased 4% to $1.77 billion (or 31.8% of sales) from $1.70
billion (or 34.1% of sales) for the same period one year ago.
Operating income for the first six months of 2020 increased
23% to $1.16 billion (or 20.8% of sales) from $943 million (or
18.9% of sales) for the same period one year ago.
Net income for the first six months of 2020
increased $157 million, or 23%, to $832 million (or 14.9% of sales)
from $675 million (or 13.5% of sales) for the same period one year
ago. Diluted earnings per common share for the first six
months of 2020 increased 29% to $11.06 on 75 million shares versus
$8.56 on 79 million shares for the same period one year
ago.
2nd
Quarter Comparable Store Sales
ResultsComparable store sales are calculated
based on the change in sales for U.S. stores open at least one year
and exclude sales of specialty machinery, sales to independent
parts stores and sales to Team Members, as well as sales from Leap
Day in the six months ended June 30, 2020. Online sales,
resulting from ship-to-home orders and pick-up-in-store orders, for
U.S. stores open at least one year, are included in the comparable
store sales calculation. Comparable store sales increased
16.2% for the second quarter ended June 30, 2020, on top
of 3.4% for the same period one year ago. Comparable store
sales increased 7.5% for the six months ended
June 30, 2020, on top of 3.3% for the same period one
year ago.
Share Repurchase
ProgramIn order to conserve liquidity in response
to COVID-19, the Company suspended its share repurchase program on
March 16, 2020. The Company continued to evaluate business
conditions and its liquidity and, as a result of this evaluation,
resumed its share repurchase program on May 29, 2020. During
the second quarter ended June 30, 2020, the Company
repurchased 0.2 million shares of its common stock, at an average
price per share of $417.79, for a total investment of $77
million. During the first six months ended of 2020, the
Company repurchased 1.7 million shares of its common stock, at an
average price per share of $390.14, for a total investment of $651
million. Subsequent to the end of the second quarter and
through the date of this release, the Company repurchased an
additional 0.1 million shares of its common stock, at an average
price per share of $423.09, for a total investment of $36 million.
The Company has repurchased a total of 77.9 million shares of
its common stock under its share repurchase program since the
inception of the program in January of 2011 and through the date of
this release, at an average price of $165.10, for a total aggregate
investment of $12.87 billion. As of the date of this release,
the Company had approximately $882 million remaining under its
current share repurchase authorization.
Continued Suspension of 2020
GuidanceAs previously announced, the Company
withdrew all previously issued 2020 guidance, and given the ongoing
uncertainty related to COVID-19, the Company is not resuming 2020
guidance at this time.
Non-GAAP
InformationThis release contains certain
financial information not derived in accordance with United States
generally accepted accounting principles (“GAAP”). These
items include adjusted debt to earnings before interest, taxes,
depreciation, amortization, share-based compensation and rent
(“EBITDAR”) and free cash flow. The Company does not, nor
does it suggest investors should, consider such non-GAAP financial
measures in isolation from, or as a substitute for, GAAP financial
information. The Company believes that the presentation of
adjusted debt to EBITDAR and free cash flow provide meaningful
supplemental information to both management and investors that is
indicative of the Company’s core operations. The Company has
included a reconciliation of this additional information to the
most comparable GAAP measure in the selected financial information
below.
Earnings Conference Call
InformationThe Company will host a conference
call on Thursday, July 30, 2020, at 10:00 a.m. Central Time to
discuss its results as well as future expectations. Investors
may listen to the conference call live on the Company’s website at
www.OReillyAuto.com by clicking on “Investor Relations” and then
“News Room.” Interested analysts are invited to join the
call. The dial-in number for the call is (703) 375-5524; the
conference call identification number is 8265809. A replay of
the conference call will be available on the Company’s website
through Thursday, July 29, 2021.
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 the United States, serving both the
do-it-yourself and professional service provider markets.
Visit the Company’s website at www.OReillyAuto.com for additional
information about O’Reilly, including access to online shopping and
current promotions, store locations, hours and services, employment
opportunities and other programs. As of
June 30, 2020, the Company operated 5,562 stores in 47
U.S. states and 21 stores in Mexico.
Forward-Looking
StatementsThe 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 COVID-19 pandemic or other public health crisis,
the economy in general, inflation, tariffs, product demand, the
market for auto parts, competition, weather, risks associated with
the performance of acquired businesses, our ability to hire and
retain qualified employees, consumer debt levels, our increased
debt levels, credit ratings on public debt, governmental
regulations, information security and cyber-attacks, terrorist
activities, war and the threat of war. 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 December 31, 2019, and subsequent Securities and
Exchange Commission filings for additional factors that could
materially affect the Company’s financial performance.
Forward-looking statements speak only as of the date they were made
and the Company undertakes no obligation to publicly update any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable
law.
|
|
For further
information contact: |
Investor &
Media Contacts |
|
Mark Merz (417) 829-5878 |
|
Eric Bird (417) 868-4259 |
O’REILLY AUTOMOTIVE, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(In thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2020 |
|
June 30, 2019 |
|
December 31, 2019 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Note) |
Assets |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
872,423 |
|
|
$ |
55,809 |
|
|
$ |
40,406 |
|
Accounts receivable, net |
|
|
243,660 |
|
|
|
262,227 |
|
|
|
214,915 |
|
Amounts receivable from suppliers |
|
|
86,513 |
|
|
|
77,750 |
|
|
|
79,492 |
|
Inventory |
|
|
3,528,683 |
|
|
|
3,262,426 |
|
|
|
3,454,092 |
|
Other current assets |
|
|
53,206 |
|
|
|
42,361 |
|
|
|
44,757 |
|
Total current assets |
|
|
4,784,485 |
|
|
|
3,700,573 |
|
|
|
3,833,662 |
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, at
cost |
|
|
6,403,936 |
|
|
|
5,885,507 |
|
|
|
6,191,427 |
|
Less: accumulated
depreciation and amortization |
|
|
2,365,453 |
|
|
|
2,131,156 |
|
|
|
2,243,224 |
|
Net property and equipment |
|
|
4,038,483 |
|
|
|
3,754,351 |
|
|
|
3,948,203 |
|
|
|
|
|
|
|
|
|
|
|
Operating lease, right-of-use
assets |
|
|
1,926,270 |
|
|
|
1,895,099 |
|
|
|
1,928,369 |
|
Goodwill |
|
|
872,997 |
|
|
|
808,391 |
|
|
|
936,814 |
|
Other assets, net |
|
|
106,300 |
|
|
|
43,529 |
|
|
|
70,112 |
|
Total assets |
|
$ |
11,728,535 |
|
|
$ |
10,201,943 |
|
|
$ |
10,717,160 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and shareholders’ equity |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
3,936,400 |
|
|
$ |
3,516,150 |
|
|
$ |
3,604,722 |
|
Self-insurance reserves |
|
|
90,890 |
|
|
|
77,120 |
|
|
|
79,079 |
|
Accrued payroll |
|
|
107,116 |
|
|
|
87,531 |
|
|
|
100,816 |
|
Accrued benefits and withholdings |
|
|
140,446 |
|
|
|
75,119 |
|
|
|
98,539 |
|
Income taxes payable |
|
|
91,797 |
|
|
|
9,507 |
|
|
|
— |
|
Current portion of operating lease liabilities |
|
|
318,601 |
|
|
|
304,034 |
|
|
|
316,061 |
|
Other current liabilities |
|
|
336,886 |
|
|
|
290,931 |
|
|
|
270,210 |
|
Total current liabilities |
|
|
5,022,136 |
|
|
|
4,360,392 |
|
|
|
4,469,427 |
|
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
4,127,397 |
|
|
|
3,783,738 |
|
|
|
3,890,527 |
|
Operating lease liabilities,
less current portion |
|
|
1,652,284 |
|
|
|
1,631,719 |
|
|
|
1,655,297 |
|
Deferred income taxes |
|
|
155,530 |
|
|
|
113,533 |
|
|
|
133,280 |
|
Other liabilities |
|
|
182,088 |
|
|
|
167,879 |
|
|
|
171,289 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
|
|
|
Common stock, $0.01 par value: |
|
|
|
|
|
|
|
|
|
Authorized shares – 245,000,000 |
|
|
|
|
|
|
|
|
|
Issued and outstanding shares – |
|
|
|
|
|
|
|
|
|
74,097,706 as of June 30, 2020, |
|
|
|
|
|
|
|
|
|
76,690,215 as of June 30, 2019, and |
|
|
|
|
|
|
|
|
|
75,618,659 as of December 31, 2019 |
|
|
741 |
|
|
|
767 |
|
|
|
756 |
|
Additional paid-in capital |
|
|
1,289,976 |
|
|
|
1,258,930 |
|
|
|
1,280,760 |
|
Retained deficit |
|
|
(679,506 |
) |
|
|
(1,115,015 |
) |
|
|
(889,066 |
) |
Accumulated other comprehensive (loss) income |
|
|
(22,111 |
) |
|
|
— |
|
|
|
4,890 |
|
Total shareholders’
equity |
|
|
589,100 |
|
|
|
144,682 |
|
|
|
397,340 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders’ equity |
|
$ |
11,728,535 |
|
|
$ |
10,201,943 |
|
|
$ |
10,717,160 |
|
Note: The balance sheet at
December 31, 2019, has been derived from the audited
consolidated financial statements at that date but does not include
all of the information and footnotes required by United States
generally accepted accounting principles for complete financial
statements.
O’REILLY AUTOMOTIVE, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
INCOME(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended |
|
For the Six Months
Ended |
|
|
June 30, |
|
June 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Sales |
|
$ |
3,091,595 |
|
|
$ |
2,589,874 |
|
|
$ |
5,568,082 |
|
|
$ |
5,000,482 |
|
Cost of goods sold, including
warehouse and distribution expenses |
|
|
1,454,415 |
|
|
|
1,221,587 |
|
|
|
2,634,996 |
|
|
|
2,352,905 |
|
Gross profit |
|
|
1,637,180 |
|
|
|
1,368,287 |
|
|
|
2,933,086 |
|
|
|
2,647,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
|
900,690 |
|
|
|
870,213 |
|
|
|
1,773,035 |
|
|
|
1,704,717 |
|
Operating income |
|
|
736,490 |
|
|
|
498,074 |
|
|
|
1,160,051 |
|
|
|
942,860 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(41,723 |
) |
|
|
(34,538 |
) |
|
|
(81,109 |
) |
|
|
(68,829 |
) |
Interest income |
|
|
635 |
|
|
|
603 |
|
|
|
1,310 |
|
|
|
1,157 |
|
Other, net |
|
|
5,008 |
|
|
|
832 |
|
|
|
(182 |
) |
|
|
3,935 |
|
Total other expense |
|
|
(36,080 |
) |
|
|
(33,103 |
) |
|
|
(79,981 |
) |
|
|
(63,737 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
700,410 |
|
|
|
464,971 |
|
|
|
1,080,070 |
|
|
|
879,123 |
|
Provision for income
taxes |
|
|
168,743 |
|
|
|
111,290 |
|
|
|
247,965 |
|
|
|
204,290 |
|
Net income |
|
$ |
531,667 |
|
|
$ |
353,681 |
|
|
$ |
832,105 |
|
|
$ |
674,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share-basic: |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
$ |
7.16 |
|
|
$ |
4.56 |
|
|
$ |
11.15 |
|
|
$ |
8.65 |
|
Weighted-average common shares
outstanding – basic |
|
|
74,205 |
|
|
|
77,613 |
|
|
|
74,611 |
|
|
|
78,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share-assuming
dilution: |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
$ |
7.10 |
|
|
$ |
4.51 |
|
|
$ |
11.06 |
|
|
$ |
8.56 |
|
Weighted-average common shares
outstanding – assuming dilution |
|
|
74,833 |
|
|
|
78,412 |
|
|
|
75,246 |
|
|
|
78,854 |
|
O’REILLY AUTOMOTIVE, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (In thousands)
|
|
|
|
|
|
|
|
|
For the Six Months
Ended |
|
|
June 30, |
|
|
2020 |
|
|
2019 |
|
Operating
activities: |
|
|
|
|
|
|
Net income |
|
$ |
832,105 |
|
|
$ |
674,833 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
|
|
Depreciation and amortization of property, equipment and
intangibles |
|
|
151,873 |
|
|
|
132,275 |
|
Amortization of debt discount and issuance costs |
|
|
2,152 |
|
|
|
1,887 |
|
Deferred income taxes |
|
|
14,987 |
|
|
|
8,364 |
|
Share-based compensation programs |
|
|
11,480 |
|
|
|
11,015 |
|
Other |
|
|
1,906 |
|
|
|
4,277 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
(34,966 |
) |
|
|
(74,978 |
) |
Inventory |
|
|
(78,086 |
) |
|
|
(69,103 |
) |
Accounts payable |
|
|
334,503 |
|
|
|
138,522 |
|
Income taxes payable |
|
|
210,855 |
|
|
|
(833 |
) |
Other |
|
|
112,269 |
|
|
|
20,745 |
|
Net cash provided by operating activities |
|
|
1,559,078 |
|
|
|
847,004 |
|
|
|
|
|
|
|
|
Investing
activities: |
|
|
|
|
|
|
Purchases of property and
equipment |
|
|
(244,471 |
) |
|
|
(295,608 |
) |
Proceeds from sale of property
and equipment |
|
|
4,846 |
|
|
|
3,138 |
|
Investment in tax credit
equity investments |
|
|
(95,292 |
) |
|
|
(1,717 |
) |
Other (i) |
|
|
(311 |
) |
|
|
839 |
|
Net cash used in investing activities |
|
|
(335,228 |
) |
|
|
(293,348 |
) |
|
|
|
|
|
|
|
Financing
activities: |
|
|
|
|
|
|
Proceeds from borrowings on
revolving credit facility |
|
|
1,162,000 |
|
|
|
1,629,000 |
|
Payments on revolving credit
facility |
|
|
(1,423,000 |
) |
|
|
(1,760,000 |
) |
Proceeds from the issuance of
long-term debt |
|
|
499,795 |
|
|
|
499,955 |
|
Payment of debt issuance
costs |
|
|
(3,840 |
) |
|
|
(3,988 |
) |
Repurchases of common
stock |
|
|
(651,027 |
) |
|
|
(920,717 |
) |
Net proceeds from issuance of
common stock |
|
|
25,593 |
|
|
|
26,778 |
|
Other |
|
|
(253 |
) |
|
|
(190 |
) |
Net cash used in financing activities |
|
|
(390,732 |
) |
|
|
(529,162 |
) |
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash |
|
|
(1,101 |
) |
|
|
— |
|
Net increase in cash and cash
equivalents |
|
|
832,017 |
|
|
|
24,494 |
|
Cash and cash equivalents at
beginning of the period |
|
|
40,406 |
|
|
|
31,315 |
|
Cash and cash equivalents at
end of the period |
|
$ |
872,423 |
|
|
$ |
55,809 |
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information: |
|
|
|
|
|
|
Income taxes paid |
|
$ |
20,187 |
|
|
$ |
194,503 |
|
Interest paid, net of
capitalized interest |
|
|
73,091 |
|
|
|
64,201 |
|
(i) Prior period amount has been reclassified to
conform to current period presentation.
O’REILLY AUTOMOTIVE, INC. AND
SUBSIDIARIESSELECTED FINANCIAL
INFORMATION (Unaudited)
|
|
|
|
|
|
|
|
|
|
For the Twelve Months Ended |
|
|
June 30, |
Adjusted Debt to EBITDAR: |
|
2020 |
|
2019 |
(In thousands,
except adjusted debt to EBITDAR ratio) |
|
|
|
|
|
|
GAAP debt |
|
$ |
4,127,397 |
|
$ |
3,783,738 |
Add: |
Letters of credit |
|
|
51,551 |
|
|
39,109 |
|
Discount on senior notes |
|
|
3,295 |
|
|
3,930 |
|
Debt issuance costs |
|
|
19,308 |
|
|
18,332 |
|
Six-times rent expense |
|
|
2,073,180 |
|
|
1,971,174 |
Adjusted debt |
|
$ |
6,274,731 |
|
$ |
5,816,283 |
|
|
|
|
|
|
|
GAAP net
income |
|
$ |
1,548,314 |
|
$ |
1,341,341 |
Add: |
Interest expense |
|
|
152,255 |
|
|
131,879 |
|
Provision for income
taxes |
|
|
442,962 |
|
|
386,590 |
|
Depreciation and
amortization |
|
|
290,473 |
|
|
260,420 |
|
Share-based compensation
expense |
|
|
22,386 |
|
|
21,039 |
|
Rent expense (i) |
|
|
345,530 |
|
|
328,529 |
EBITDAR |
|
$ |
2,801,920 |
|
$ |
2,469,798 |
|
|
|
|
|
|
|
Adjusted debt to
EBITDAR |
|
|
2.24 |
|
|
2.35 |
(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
June 30, 2020 and for the six and twelve months ended
June 30, 2019 (in thousands):
Total lease cost, per ASC 842, for the twelve months ended
June 30, 2020 |
|
$ |
408,583 |
Less: |
Variable non-contract operating lease components, related to
property taxes and insurance, for the twelve months ended
June 30, 2020 |
|
|
63,053 |
Rent expense for the twelve months ended
June 30, 2020 |
|
$ |
345,530 |
|
|
|
|
|
Total lease cost, per ASC 842, for the six months ended
June 30, 2019 |
|
$ |
197,839 |
Less: |
Variable
non-contract operating lease components, related to property taxes
and insurance, for the six months ended
June 30, 2019 |
|
|
29,433 |
Rent expense for the six months ended June 30, 2019 |
|
|
168,406 |
Add: |
Rent expense
for the six months ended December 31, 2018, as previously
reported prior to the adoption of ASC 842 |
|
|
160,123 |
Rent expense for the twelve months ended
June 30, 2019 |
|
$ |
328,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
2020 |
|
2019 |
Selected Balance
Sheet Ratios: |
|
|
|
|
|
|
|
|
|
|
|
Inventory turnover (1) |
|
|
1.5 |
|
|
1.4 |
|
Average inventory per store
(in thousands) (2) |
|
$ |
632 |
|
$ |
610 |
|
Accounts payable to inventory
(3) |
|
|
111.6 |
% |
|
107.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended |
|
For the Six Months
Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Reconciliation of Free Cash Flow (in
thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities |
|
$ |
1,099,985 |
|
$ |
406,382 |
|
$ |
1,559,078 |
|
$ |
847,004 |
Less: |
Capital expenditures |
|
|
111,187 |
|
|
142,694 |
|
|
244,471 |
|
|
295,608 |
|
Excess tax benefit from
share-based compensation payments |
|
|
3,080 |
|
|
2,209 |
|
|
6,460 |
|
|
10,722 |
|
Investment in tax credit equity
investments |
|
|
33 |
|
|
1,717 |
|
|
95,292 |
|
|
1,717 |
Free cash flow |
|
$ |
985,685 |
|
$ |
259,762 |
|
$ |
1,212,855 |
|
$ |
538,957 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended |
|
For the Six Months
Ended |
|
For the Twelve Months Ended |
|
|
June 30, |
|
June 30, |
|
June 30, |
|
|
2020 |
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Store
Count: |
|
|
|
|
|
|
|
|
|
|
|
|
Beginning store count |
|
5,512 |
|
5,306 |
|
|
5,439 |
|
|
5,219 |
|
|
5,344 |
|
|
5,147 |
|
New stores opened |
|
50 |
|
43 |
|
|
126 |
|
|
107 |
|
|
221 |
|
|
181 |
|
Bennett stores acquired, net
of stores merged (4) |
|
— |
|
(5 |
) |
|
— |
|
|
20 |
|
|
— |
|
|
20 |
|
Stores closed |
|
— |
|
— |
|
|
(3 |
) |
|
(2 |
) |
|
(3 |
) |
|
(4 |
) |
Ending domestic store
count |
|
5,562 |
|
5,344 |
|
|
5,562 |
|
|
5,344 |
|
|
5,562 |
|
|
5,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mexico stores (5) |
|
21 |
|
— |
|
|
21 |
|
|
— |
|
|
21 |
|
|
— |
|
Ending total store count |
|
5,583 |
|
5,344 |
|
|
5,583 |
|
|
5,344 |
|
|
5,583 |
|
|
5,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended |
|
For the Twelve
Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Store and Team
Member Information: (6) |
|
|
|
|
|
|
|
|
|
|
|
|
Total employment |
|
|
72,877 |
|
|
81,949 |
|
|
|
|
|
|
Square footage (in
thousands) |
|
|
41,318 |
|
|
39,441 |
|
|
|
|
|
|
Sales per weighted-average
square foot (7) |
|
$ |
74.18 |
|
$ |
65.55 |
|
$ |
262.03 |
|
$ |
251.89 |
Sales per weighted-average
store (in thousands) (8) |
|
$ |
551 |
|
$ |
483 |
|
$ |
1,940 |
|
$ |
1,855 |
(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) O’Reilly acquired
33 Bennett Auto Supply, Inc. (“Bennett”) stores after the close of
business on December 31, 2018, which were not included in the
December 31, 2018, store count, as they were not operated by the
Company for any portion of 2018. During the first quarter
ended March 31, 2019, O’Reilly merged eight of the acquired Bennett
stores into existing O’Reilly locations, and during the second
quarter ended June 30, 2019, O’Reilly merged an additional five
acquired Bennett stores into existing O’Reilly
locations.(5) O’Reilly acquired Mayoreo de Autopartes y
Aceites, S.A. de C.V. (“Mayasa”), headquartered in Guadalajara,
Jalisco, Mexico, after the close of business on November 29,
2019.(6) Represents O’Reilly’s U.S. operations
only.(7) 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.(8) 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.
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