U.S. auto parts wholesale/retail chain O’Reilly Automotive, Inc. announced record revenues and earnings for the first quarter ended March 31, 2010.
Sales for the first quarter ended March 31, 2010, totaled US$1.28 billion, up 10% from US$1.16 billion for the same period a year ago. Gross profit for the first quarter ended March 31, 2010, increased to US$618 million (or 48.3% of sales) from US$543 million (or 46.6% of sales) for the same period a year ago, representing an increase of 14%. Selling, General and Administrative expenses for the first quarter ended March 31, 2010, increased to US$450 million (or 35.1% of sales) from US$429 million (or 36.9% of sales) for the same period a year ago, representing an increase of 5%.
Net income for the first quarter ended March 31, 2010, totaled US$97 million, up 55% from US$63 million for the same period in 2009.
Diluted earnings per common share for the first quarter ended March 31, 2010, increased 52% to US$0.70 on 139.6 million shares versus US$0.46 a year ago on 136.2 million shares.
“We are pleased to report an outstanding quarter, highlighted by comparable store sales growth of 6.9% and an increase in diluted earnings per share of 52%, representing the 5th consecutive quarter of positive double digit earnings growth following our acquisition of CSK”, Greg Henslee, CEO and co-president stated. “Our team members remain focused on the fundamentals of our business which include executing our proven dual market strategy, offering unsurpassed parts availability and unsurpassed levels of customer service. The CSK integration continues to progress on schedule, and we are very pleased with the performance of our converted stores. Our focus on closely managing costs generated a 350 bp improvement in operating margins and has allowed us to drive earnings performance ahead of our revenue growth.”
Comparable store sales are calculated based on the change in sales for stores open at least one year and exclude sales of specialty machinery, sales to independent parts stores, sales to team members and sales during the one to two week period certain CSK branded stores were closed for conversion.
Consolidated comparable store sales for stores open at least one year increased 6.9% for the quarter ended March 31, 2010. Consolidated comparable store sales increased 5.7% for the quarter ended March 31, 2009.
“With the opening of 49 new stores during the quarter, we are well on our way to meeting our goal of 150 new store openings for 2010,” Ted Wise, COO and co-president stated. “In January we opened our distribution centre (DC) in Moreno Valley, California, and in March we opened our DC in Denver, Colorado. Following the DC openings, our teams converted 358 CSK stores to the O’Reilly systems. We are on schedule to open our DC in Salt Lake City, Utah, in May and we will convert 86 CSK stores to the O’Reilly systems following the opening.
As we expand in 2010, our Team remains dedicated to the O’Reilly culture and values and we will continue to focus on our commitment to providing industry leading customer service and parts availability. This will be a historical year for O’Reilly, as we look forward to completing the CSK integration process.”
The company estimates diluted earnings per share for the second quarter of 2010 to range from US$0.70 to US$0.74 and estimates diluted earnings per share for the year ended December 31, 2010, to range from US$2.65 to US$2.75. The company estimates consolidated comparable store sales for the second quarter of 2010 to range from 4.0% to 6.0%. The company estimates consolidated comparable store sales for the year ended December 31, 2010, to range from 4.0% to 6.0%.
Henslee added, “I would like to thank all members of Team O’Reilly for their hard work and dedication, and for their consistent execution in our historic stores and on our CSK integration plan. Their outstanding efforts continue to drive our strong performance. 2010 is shaping up to be a very promising year for O’Reilly, and we are excited for the opportunities ahead of us.”