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O'Reilly Automotive Inc. Reports Operating Results (10-Q)

August 08, 2012 | About:
10qk

10qk

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O'Reilly Automotive Inc. (ORLY) filed Quarterly Report for the period ended 2012-06-30.

O'reilly Automotive Inc has a market cap of $10.81 billion; its shares were traded at around $86.638 with a P/E ratio of 19.8 and P/S ratio of 1.9. O'reilly Automotive Inc had an annual average earning growth of 19.1% over the past 10 years. GuruFocus rated O'reilly Automotive Inc the business predictability rank of 5-star.

Highlight of Business Operations:

Sales for the three months ended June 30, 2012, increased $84 million to $1.56 billion from $1.48 billion for the same period one year ago, representing an increase of 6%. Sales for the six months ended June 30, 2012, increased $230 million to $3.09 billion from $2.86 billion for the same period one year ago, representing an increase of 8.0%. Comparable store sales for stores open at least one year increased 2.5% and 4.4% for the three months ended June 30, 2012 and 2011, respectively. Comparable store sales for stores open at least one year increased 4.9% and 5.0% for the six months ended June 30, 2012 and 2011, respectively. Comparable store sales are calculated based on the change in sales of stores open at least one year and exclude sales of specialty machinery, sales to independent parts stores and sales to Team Members.

Selling, general and administrative expenses (“SG&A”) for the three months ended June 30, 2012, increased to $536 million (or 34.3% of sales) from $496 million (or 33.5% of sales) for the same period one year ago, representing an increase of 8%. SG&A for the six months ended June 30, 2012, increased to $1.05 billion (or 34.0% of sales) from $970 million (or 33.9% of sales) for the same period one year ago, representing an increase of 8%. The increases in total SG&A dollars were primarily the result of additional employees, facilities and vehicles to support our increased store count. The increases in SG&A as percentages of sales were primarily the result of deleverage on soft comparable store sales, higher store-level payroll and benefits as we increase our store staffing hours in our ongoing efforts to improve our customer service and the timing of our advertising spend.

As a result of the impacts discussed above, operating income for the three months ended June 30, 2012, increased to $244 million (or 15.6% of sales) from $222 million (or 15.0% of sales) for the same period one year ago, representing an increase of 10%. Operating income for the six months ended June 30, 2012, increased to $491 million (or 15.9% of sales) from $419 million (or 14.6% of sales) for the same period one year ago, representing an increase of 17%.

Total other expense for the three months ended June 30, 2012, increased to $9 million (or 0.5% of sales) from $5 million (or 0.4% of sales) for the same period one year ago, representing an increase of 58%. Total other expense for the six months ended June 30, 2012, decreased to $16 million (or 0.5% of sales) from $36 million (or 1.2% of sales) for the same period one year ago, representing a decrease of 54%. The increase in total other expense for the three months ended June 30, 2012, is the result of increased interest expense on higher average outstanding borrowings in the current period as compared to the same period one year ago. The decrease in total other expense for the six months ended June 30, 2012, was primarily due to one-time charges related to our financing transactions that were completed in January of 2011 (discussed in detail below), partially offset by increased interest expense on higher average outstanding borrowings in the current period as compared to the same period one year ago.

Our provision for income taxes for the three months ended June 30, 2012, increased to $89 million (or 5.7% of sales) from $83 million (or 5.6% of sales) for the same period one year ago, representing an increase of 7%. Our provision for income taxes for the six months ended June 30, 2012, increased to $181 million (or 5.9% of sales) from $147 million (or 5.1% of sales) for the same period one year ago, representing an increase of 23%. The increase in our provision for income taxes was due to the increase in our taxable income. Our effective tax rate for the three months ended June 30, 2012, was 37.8% of income before income taxes compared to 38.3% for the same period one year ago. Our effective tax rate for the six months ended June 30, 2012, was 38.2% of income before income taxes compared to 38.3% for the same period one year ago. The decrease in our effective tax rate was primarily due to the benefits of employment tax credits taken during the three months ended June 30, 2012.

Read the The complete Report

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