O'REILLY AUTOMOTIVE, INC. | ||
(Exact name of registrant as specified in its charter) | ||
Missouri | 000-21318 | 27-4358837 |
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |
233 South 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.) |
Exhibit Number | Description |
99.1 | Press Release dated April 22, 2015 |
Date: April 22, 2015 | O'REILLY AUTOMOTIVE, INC. |
By: /s/ Thomas McFall | |
Thomas McFall | |
Executive Vice President of Finance and Chief Financial Officer | |
(principal financial and accounting officer) |
Exhibit Number | Description |
99.1 | Press Release dated April 22, 2015 |
• | Comparable store sales increase of 7.2% |
• | 28% increase in diluted earnings per share to $2.06 |
• | Record first quarter operating margin of 18.4% |
For the Three Months Ending | For the Year Ending | |||
June 30, 2015 | December 31, 2015 | |||
Comparable store sales | 3.0% to 5.0% | 3.0% to 5.0% | ||
Total revenue | $7.6 billion to $7.8 billion | |||
Gross profit as a percentage of sales | 51.8% to 52.2% | |||
Operating income as a percentage of sales | 18.3% to 18.7% | |||
Diluted earnings per share (1) | $2.17 to $2.21 | $8.42 to $8.52 | ||
Capital expenditures | $400 million to $430 million | |||
Free cash flow (2) | $700 million to $750 million | |||
(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) | Calculated as net cash provided by operating activities less capital expenditures for the period. |
For further information contact: | Investor & Media Contact |
Mark Merz (417) 829-5878 |
March 31, 2015 | March 31, 2014 | December 31, 2014 | |||||||||
(Unaudited) | (Unaudited) | (Note) | |||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 473,646 | $ | 511,831 | $ | 250,560 | |||||
Accounts receivable, net | 162,020 | 142,703 | 143,900 | ||||||||
Amounts receivable from suppliers | 69,545 | 69,034 | 69,311 | ||||||||
Inventory | 2,527,982 | 2,397,042 | 2,554,789 | ||||||||
Other current assets | 40,928 | 40,663 | 48,418 | ||||||||
Total current assets | 3,274,121 | 3,161,273 | 3,066,978 | ||||||||
Property and equipment, at cost | 4,080,350 | 3,676,061 | 3,993,509 | ||||||||
Less: accumulated depreciation and amortization | 1,381,502 | 1,212,962 | 1,334,949 | ||||||||
Net property and equipment | 2,698,848 | 2,463,099 | 2,658,560 | ||||||||
Notes receivable, less current portion | 12,414 | 12,165 | 13,349 | ||||||||
Goodwill | 756,384 | 756,225 | 756,384 | ||||||||
Other assets, net | 43,943 | 37,011 | 45,030 | ||||||||
Total assets | $ | 6,785,710 | $ | 6,429,773 | $ | 6,540,301 | |||||
Liabilities and shareholders' equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 2,470,749 | $ | 2,160,897 | $ | 2,417,167 | |||||
Self-insurance reserves | 67,676 | 68,625 | 64,882 | ||||||||
Accrued payroll | 75,059 | 64,473 | 78,442 | ||||||||
Accrued benefits and withholdings | 42,413 | 42,405 | 62,946 | ||||||||
Deferred income taxes | 16,651 | 21,977 | 17,258 | ||||||||
Income taxes payable | 78,939 | 51,971 | — | ||||||||
Other current liabilities | 200,888 | 187,428 | 189,836 | ||||||||
Current portion of long-term debt | 6 | 74 | 25 | ||||||||
Total current liabilities | 2,952,381 | 2,597,850 | 2,830,556 | ||||||||
Long-term debt, less current portion | 1,396,741 | 1,396,242 | 1,396,615 | ||||||||
Deferred income taxes | 81,330 | 75,162 | 85,164 | ||||||||
Other liabilities | 211,758 | 197,295 | 209,548 | ||||||||
Shareholders' equity: | |||||||||||
Common stock, $0.01 par value: | |||||||||||
Authorized shares – 245,000,000 | |||||||||||
Issued and outstanding shares – | |||||||||||
101,347,744 as of March 31, 2015, | |||||||||||
106,303,884 as of March 31, 2014, and | |||||||||||
101,602,935 as of December 31, 2014 | 1,013 | 1,063 | 1,016 | ||||||||
Additional paid-in capital | 1,234,133 | 1,162,413 | 1,194,929 | ||||||||
Retained earnings | 908,354 | 999,748 | 822,473 | ||||||||
Total shareholders' equity | 2,143,500 | 2,163,224 | 2,018,418 | ||||||||
Total liabilities and shareholders' equity | $ | 6,785,710 | $ | 6,429,773 | $ | 6,540,301 |
For the Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Sales | $ | 1,901,903 | $ | 1,727,943 | |||
Cost of goods sold, including warehouse and distribution expenses | 914,944 | 850,227 | |||||
Gross profit | 986,959 | 877,716 | |||||
Selling, general and administrative expenses | 636,586 | 590,596 | |||||
Operating income | 350,373 | 287,120 | |||||
Other income (expense): | |||||||
Interest expense | (14,402 | ) | (13,409 | ) | |||
Interest income | 580 | 631 | |||||
Other, net | 1,113 | 618 | |||||
Total other expense | (12,709 | ) | (12,160 | ) | |||
Income before income taxes | 337,664 | 274,960 | |||||
Provision for income taxes | 124,800 | 101,100 | |||||
Net income | $ | 212,864 | $ | 173,860 | |||
Earnings per share-basic: | |||||||
Earnings per share | $ | 2.09 | $ | 1.64 | |||
Weighted-average common shares outstanding – basic | 101,612 | 106,191 | |||||
Earnings per share-assuming dilution: | |||||||
Earnings per share | $ | 2.06 | $ | 1.61 | |||
Weighted-average common shares outstanding – assuming dilution | 103,257 | 108,070 |
For the Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Operating activities: | |||||||
Net income | $ | 212,864 | $ | 173,860 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization of property, equipment and intangibles | 54,950 | 47,477 | |||||
Amortization of debt discount and issuance costs | 525 | 520 | |||||
Excess tax benefit from stock options exercised | (21,188 | ) | (17,850 | ) | |||
Deferred income taxes | (4,441 | ) | (3,796 | ) | |||
Share-based compensation programs | 5,890 | 5,096 | |||||
Other | 1,355 | 1,526 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (19,867 | ) | (13,016 | ) | |||
Inventory | 26,807 | (21,994 | ) | ||||
Accounts payable | 53,582 | 104,376 | |||||
Income taxes payable | 117,221 | 69,922 | |||||
Other | (21,673 | ) | (572 | ) | |||
Net cash provided by operating activities | 406,025 | 345,549 | |||||
Investing activities: | |||||||
Purchases of property and equipment | (91,140 | ) | (83,085 | ) | |||
Proceeds from sale of property and equipment | 658 | 287 | |||||
Payments received on notes receivable | 935 | 900 | |||||
Net cash used in investing activities | (89,547 | ) | (81,898 | ) | |||
Financing activities: | |||||||
Principal payments on capital leases | (19 | ) | (18 | ) | |||
Repurchases of common stock | (134,813 | ) | (22,067 | ) | |||
Excess tax benefit from stock options exercised | 21,188 | 17,850 | |||||
Net proceeds from issuance of common stock | 20,252 | 21,097 | |||||
Net cash (used in) provided by financing activities | (93,392 | ) | 16,862 | ||||
Net increase in cash and cash equivalents | 223,086 | 280,513 | |||||
Cash and cash equivalents at beginning of the period | 250,560 | 231,318 | |||||
Cash and cash equivalents at end of the period | $ | 473,646 | $ | 511,831 | |||
Supplemental disclosures of cash flow information: | |||||||
Income taxes paid | $ | 8,675 | $ | 33,331 | |||
Interest paid, net of capitalized interest | 23,435 | 22,419 |
For the Twelve Months Ended March 31, | ||||||||
Adjusted Debt to EBITDAR: | 2015 | 2014 | ||||||
(In thousands, except adjusted debt to EBITDAR ratio) | ||||||||
GAAP debt | $ | 1,396,747 | $ | 1,396,316 | ||||
Add: | Letters of credit | 50,506 | 54,701 | |||||
Discount on senior notes | 3,259 | 3,764 | ||||||
Six-times rent expense | 1,597,278 | 1,540,488 | ||||||
Adjusted debt | $ | 3,047,790 | $ | 2,995,269 | ||||
GAAP net income | $ | 817,186 | $ | 689,823 | ||||
Add: | Interest expense | 54,283 | 51,083 | |||||
Provision for income taxes | 467,700 | 403,450 | ||||||
Depreciation and amortization | 201,678 | 186,478 | ||||||
Share-based compensation expense | 23,889 | 21,221 | ||||||
Rent expense | 266,213 | 256,748 | ||||||
EBITDAR | $ | 1,830,949 | $ | 1,608,803 | ||||
Adjusted debt to EBITDAR | 1.66 | 1.86 |
March 31, | |||||||
2015 | 2014 | ||||||
Selected Balance Sheet Ratios: | |||||||
Inventory turnover (1) | 1.4 | 1.4 | |||||
Inventory turnover, net of payables (2) | 30.8 | 11.8 | |||||
Average inventory per store (in thousands) (3) | $ | 570 | $ | 569 | |||
Accounts payable to inventory (4) | 97.7 | % | 90.1 | % | |||
Return on equity (5) | 39.6 | % | 33.8 | % | |||
Return on assets (6) | 12.4 | % | 11.1 | % |
For the Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Selected Financial Information (in thousands): | |||||||
Capital expenditures | $ | 91,140 | $ | 83,085 | |||
Free cash flow (7) | 314,885 | 262,464 | |||||
Depreciation and amortization | 54,950 | 47,477 | |||||
Interest expense | 14,402 | 13,409 | |||||
Rent expense | $ | 67,938 | $ | 64,753 |
Store and Team Member Information: | |||||||||||
For the Three Months Ended March 31, | For the Twelve Months Ended March 31, | ||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||
Beginning store count | 4,366 | 4,166 | 4,216 | 4,041 | |||||||
New stores opened | 67 | 51 | 223 | 180 | |||||||
Stores closed | — | (1 | ) | (6 | ) | (5 | ) | ||||
Ending store count | 4,433 | 4,216 | 4,433 | 4,216 |
For the Three Months Ended March 31, | For the Twelve Months Ended March 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Total employment | 69,708 | 64,676 | |||||||||||||
Square footage (in thousands) | 32,101 | 30,454 | |||||||||||||
Sales per weighted-average square foot (8) | $ | 59.24 | $ | 56.47 | $ | 234.98 | $ | 226.10 | |||||||
Sales per weighted-average store (in thousands) (9) | $ | 429 | $ | 408 | $ | 1,699 | $ | 1,630 |
(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 cost of goods sold for the last 12 months divided by average net inventory. Average net inventory is calculated as the average of inventory less accounts payable for the trailing four quarters used in determining the denominator. |
(3) | Calculated as inventory divided by store count at the end of the reported period. |
(4) | Calculated as accounts payable divided by inventory. |
(5) | Calculated as net income for the last 12 months divided by average total shareholders' equity. Average total shareholders' equity is calculated as the average of total shareholders' equity for the trailing four quarters used in determining the denominator. |
(6) | Calculated as net income for the last 12 months divided by average total assets. Average total assets is calculated as the average of total assets for the trailing four quarters used in determining the denominator. |
(7) | Calculated as net cash provided by operating activities less capital expenditures for the period. |
(8) | 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 closings. |
(9) | Calculated as sales less jobber sales, divided by weighted-average stores. Weighted-average stores is determined by weighting stores based on their approximate opening, acquisition or closing dates. |
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