-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AntvD4EdkMBKYP9PGZIpxQ14m+SbBVy3ywy6DC5fuV6uIrAZ3dDVJXt1kGKGwXau HhrvYzQsLNJNJ/bVHwvsfA== 0000950131-96-002196.txt : 19960515 0000950131-96-002196.hdr.sgml : 19960515 ACCESSION NUMBER: 0000950131-96-002196 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960514 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: OREILLY AUTOMOTIVE INC CENTRAL INDEX KEY: 0000898173 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-AUTO & HOME SUPPLY STORES [5531] IRS NUMBER: 440618012 STATE OF INCORPORATION: MO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-21318 FILM NUMBER: 96562543 BUSINESS ADDRESS: STREET 1: 233 S PATTERSON CITY: SPRINGFIELD STATE: MO ZIP: 65801 BUSINESS PHONE: 4178626708 MAIL ADDRESS: STREET 1: 233 SOUTH PATTERSON CITY: SPRINGFIELD STATE: MO ZIP: 65802 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1996 OR [_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________________ to ____________________ Commission file number 0-21318 O'REILLY AUTOMOTIVE, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Missouri 44-0618012 - -------------------------------------------------------------------------------- (State or other jurisdiction (I.R.S. Employer Identification No.) of incorporation or organization) 233 South Patterson Springfield, Missouri 65801 - -------------------------------------------------------------------------------- (Address of principal executive offices, Zip code) (417) 862-6708 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) - -------------------------------------------------------------------------------- Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [_] ------- ------- Common stock, $0.01 par value - 10,428,062 shares outstanding as of March 31, 1996 O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES FORM 10-Q Quarter Ended March 31, 1996 TABLE OF CONTENTS PART I - FINANCIAL INFORMATION Page ---- ITEM 1 - FINANCIAL STATEMENTS (UNAUDITED) Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Income 4 Condensed Consolidated Statements of Cash Flows 5 Note to Condensed Consolidated Financial Statements 6 ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION 7 PART II - OTHER INFORMATION ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K 9 SIGNATURE PAGE 10 EXHIBIT INDEX 11 2 PART I FINANCIAL INFORMATION - ------------------------------ ITEM 1. FINANCIAL STATEMENTS - ----------------------------- O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31, 1996 1995 ------------------------------- (Unaudited) (Note) (In thousands, except share data) ASSETS Current assets: Cash and cash equivalents $ 2,812 $ 2,833 Short-term investments 20,756 23,410 Accounts receivable 10,816 9,460 Inventory 74,191 58,979 Other current assets 3,261 3,964 -------- -------- Total current assets 111,836 98,646 Property and equipment, at cost 75,124 68,391 Accumulated depreciation 17,046 16,440 -------- -------- 58,078 51,951 Other assets 3,147 3,007 -------- -------- Total assets $173,061 $153,604 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 25,893 $ 13,013 Income taxes payable 1,279 - Other current liabilities 4,371 4,931 Current portion of long-term debt 182 231 -------- -------- Total current liabilities 31,725 18,175 Long-term debt, less current portion 352 358 Other liabilities 1,256 1,201 Stockholders' equity: Common stock, $.01 par value: Authorized shares - 30,000,000 Issued and outstanding shares - 10,428,062 in 1996 and 10,362,170 in 1995 104 104 Additional paid-in capital 72,794 71,024 Retained earnings 66,830 62,742 -------- -------- Total stockholders' equity 139,728 133,870 -------- -------- Total liabilities and stockholders' equity $173,061 $153,604 ======== ========
NOTE: The balance sheet at December 31, 1995 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. See note to condensed consolidated financial statements. 3 O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended March 31, --------------------------------- 1996 1995 ------- ------- (In thousands, except per share data) Product sales $55,321 $42,766 Cost of goods sold, including warehouse and distribution expenses 32,912 25,210 Operating, selling, general and administrative expenses 16,255 12,994 ------- ------- 49,167 38,204 ------- ------- Operating income 6,154 4,562 Other income, net 319 99 ------- ------- Income before income taxes 6,473 4,661 Provision for income taxes 2,385 1,748 ------- ------- Net income $ 4,088 $ 2,913 ======= ======= Net income per share $0.39 $0.34 ======= ======= Weighted average common shares outstanding 10,380 8,692 ======= =======
See note to condensed consolidated financial statements. 4 O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Ended March 31, ---------------------------- 1996 1995 ------- ------- (In thousands) Net cash provided by operating activities $ 3,761 $ 1,025 Investing activities: Purchases of property and equipment (7,528) (4,828) Proceeds from sale of property and equipment 137 12 Purchases of short-term investments (6,456) - Proceeds from sale of short-term investments 9,110 1,075 Payments received on notes receivable 9 - ------- ------- Net cash used in investing activities (4,728) (3,741) Financing activities: Borrowings on note payable to bank - 1,000 Borrowings on long-term note - 108 Payments on long-term debt (55) (69) Proceeds from issuance of common stock 1,001 342 ------- ------- Net cash provided by financing activities 946 1,381 ------- ------- Net decrease in cash (21) (1,335) Cash at beginning of period 2,833 3,364 ------- ------- Cash at end of period $ 2,812 $ 2,029 ======= =======
See note to condensed consolidated financial statements. 5 O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES NOTE TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) March 31, 1996 1. Basis of Presentation --------------------- The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 1996 are not necessarily indicative of the results that may be expected for the year ended December 31, 1996. For further information, refer to the consolidated financial statements and footnotes thereto included in the O'Reilly Automotive, Inc. and Subsidiaries' annual report on Form 10-K for the year ended December 31, 1995. 6 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF ------------------------------------------------ RESULTS OF OPERATIONS AND FINANCIAL CONDITION --------------------------------------------- RESULTS OF OPERATIONS Product sales for the first quarter of 1996 increased by $12.6 million, or 29.4%, over product sales for the first quarter of 1995 due to a 18.4% increase in comparable store product sales for the quarter, the opening of 20 new O'Reilly stores during the last three quarters of 1995 and the opening of 3 new stores during the first quarter of 1996. Management believes that the consumer acceptance experienced by these new O'Reilly stores and the increased product sales achieved by the existing O'Reilly stores is the result of the continuation of media advertising during the first three months of 1996 at the levels set in 1995, an increase in the broad selection of SKU's available at the newer O'Reilly stores and the increasing penetration of the general geographic markets in which the Company operates. Gross profit increased 27.6% from $17.6 million (or 41.1% of product sales) in the first quarter of 1995 to $22.4 million (or 40.5% of product sales) in the first quarter of 1996. The increased dollar amount of gross profit resulted primarily from increased sales volume. The decrease in the gross profit margin for the first quarter of 1996 was primarily due to start-up costs associated with the opening of the Company's new Oklahoma City, Oklahoma distribution center and changes in product sales mix during the first quarter of 1996. Operating, selling, general and administrative expenses (OSG&A expenses) increased $3.3 from $13.0 million (or 30.4% of product sales) in the first quarter of 1995 to $16.3 million (or 29.4% of product sales) in the first quarter of 1996. The increased dollar amount of OSG&A expenses resulted primarily from the new stores opened during the last three quarters of 1995 and the first quarter of 1996 as well as additions to administrative staff in order to support increased operations. The decrease in OSG&A expenses as a percentage of product sales was primarily attributable to increased product sales. The Company's estimated provision for income taxes decreased from 37.5% of income before income taxes in the first quarter of 1995 to 36.8% in the first quarter of 1996. The decrease in the estimated effective income tax rate was primarily due to more of the Company's sales occurring in states with lower income tax rates. Net income increased from $2.9 million or 6.8% of product sales in the first quarter of 1995 to $4.1 million or 7.4% of product sales in the first quarter of 1996, due primarily to the factors discussed above. LIQUIDITY AND CAPITAL RESOURCES Net cash provided by operating activities increased from $1.0 million for the first three months of 1995 to $3.8 million for the first three months of 1996 principally as a result of increases in net income, depreciation and accounts payable offset by increases in accounts receivable and inventory. Net cash used in investing activities has increased from $3.7 million in 1995 to $4.7 million in 1996 primarily as a result of a $2.7 million increase in purchases of property and equipment, most of which 7 relates to the opening of the Oklahoma City distribution center, offset by an increase in net proceeds from sales of short-term investments. Cash provided by financing activities has decreased from $1.4 million in the first three months of 1995 to $0.9 million in the first three months of 1996. The decrease was primarily due to no borrowings under the Company's credit facilities during the first three months of 1996. The Company has available a short-term unsecured line of credit with Boatmen's Bank of Southwest Missouri. Under the terms thereof, the Company may borrow up to $17.0 million until May 1996. Borrowings outstanding under the line of credit bear interest at LIBOR plus 1% (6.4687% as of March 31, 1996). At March 31, 1996, no amounts were outstanding under the line of credit. Terms of this agreement, originally expiring May 1, 1996, will be extended to June 1, 1996. The Company expects that this line of credit will be renewed with substantially the same terms commencing on June 1, 1996. The Company also has available a long-term unsecured revolving credit facility with Commerce Bank, N.A. of Springfield, Missouri. Under terms of this agreement, the Company may borrow up to $15 million upon compliance with various minimum financial ratios. This credit facility bears interest at LIBOR plus 1.25% (6.7187% at March 31, 1996). At March 31, 1996, there were no borrowings outstanding under this credit facility. The Company plans to open an additional 27 stores in 1996 (for a total of 30). A portion of the funds required for such planned expansions will come from the cash provided by operating activities, short-term investments and existing bank credit facilities. Management believes that the cash expected to be provided by operating activities, existing cash and short-term investments, existing bank credit facilities and trade credit will be sufficient to fund both the short and long term capital and liquidity needs of the Company for the foreseeable future. 8 PART II - OTHER INFORMATION Item 1. Legal Proceedings - ------- ----------------- Not applicable Item 2. Changes in Securities - ------- --------------------- Not applicable Item 3. Defaults Upon Senior Securities - ------- ------------------------------- Not applicable Item 4. Submission of Matters to a Vote of Security Holders - ------- --------------------------------------------------- Not applicable Item 5. Other information - ------- ----------------- Not applicable Item 6. Exhibits and Reports on Form 8-K - ------- -------------------------------- (a) Exhibits: See Exhibit Index on page 11 hereof (b) Reports on Form 8-K: No reports on Form 8-K were filed by the Registrant during the three months ended March 31, 1996. 9 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. May 9, 1996 David E. O'Reilly - ---------------- ------------------------------------------------ Date David E. O'Reilly, President and Chief Executive Officer May 9, 1996 James R. Batten - ---------------- ------------------------------------------------- Date James R. Batten, Chief Financial Officer (Principal Financial and Accounting Officer) 10 EXHIBIT INDEX Number Description Page - ------ ----------- ---- 11.1 Computation of Earnings Per Share, filed herewith 12 27.1 Financial Data Schedule, filed herewith 13 11 O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES Exhibit 11.1 - Computation of Earnings Per Share Three Months Ended March 31, --------------------------------------- 1996 1995 ------- ------ (In thousands, except per share data) PRIMARY: Weighted average shares outstanding 10,380 8,692 ====== ====== Net income $4,088 $2,913 ====== ====== Per share amount $ 0.39 $ 0.34 ====== ====== FULLY DILUTED: Not applicable 12 EX-27 2 FINANCIAL DATA SCHEDULE
5 This schedule contains summary financial information extracted from the Condensed Consolidated Balance Sheet at March 31, 1996 (Unaudited) and the Condensed Consolidated Statement of Income for the Three Months Ended March 31, 1996 (Unaudited) and is qualified in its entirety by reference to such financial statements. 1,000 3-MOS DEC-31-1996 JAN-01-1996 MAR-31-1996 2,812 20,756 11,202 386 74,191 111,836 75,124 17,046 173,061 31,725 0 104 0 0 139,624 173,061 55,321 55,640 32,912 16,255 0 159 7 6,473 2,385 4,088 0 0 0 4,088 0.39 0.39
-----END PRIVACY-ENHANCED MESSAGE-----