O'Reilly Automotive, Inc., Reports Fourth Quarter and Annual Earnings; 13th Consecutive Year of Record Revenues and Earnings; 7.5% Increase in Comparable Store Product Sales.

Publication: Business Wire

Bookmark this article Print this article Link to this article Email this article Digg It! Add to del.icio.us RSS

COPYRIGHT 2006 Business Wire

SPRINGFIELD, Mo. -- O'Reilly Automotive, Inc. ("O'Reilly" or "the Company") (Nasdaq: ORLY) today announced record revenues and earnings for the fourth quarter and year ended December 31, 2005, representing 13 consecutive years of record revenues and earnings and positive comparable store product sales increases for O'Reilly since becoming a public company in April 1993.

Income before the cumulative effect of accounting change for the year ended December 31, 2005, totaled $164.3 million, up 39.6% from $117.7 million for the same period a year ago. Diluted earnings per common share, before the cumulative effect of accounting change, for the year ended December 31, 2005, increased 38.1% to $1.45 on 113.4 million shares versus $1.05 a year ago on 111.4 million shares. This improvement includes a benefit of $0.05 per share from the favorable resolution of prior tax uncertainties in the third quarter of 2005 and an adverse impact of $0.01 per share for the fourth quarter 2005 charge for the acceleration of stock options. Diluted earnings per common share in 2004 included an adverse impact of $0.04 per share for lease accounting corrections related to prior years. On an adjusted basis excluding the third quarter 2005 tax resolution benefit, the fourth quarter 2005 stock option acceleration charge and the fourth quarter 2004 lease accounting correction, diluted earnings per common share, before the cumulative effect of accounting change, increased 29.4% from $1.09 for the year ended December 31, 2004 to $1.41 for the year ended December 31, 2005.

Product sales for the year ended December 31, 2005, totaled $2.05 billion, up 18.8% from $1.72 billion for the year ended December 31, 2004. Gross profit for the year ended December 31, 2005, increased to $892.5 million (or 43.6% of product sales) from $743.2 million (or 43.2% of product sales) for the year ended December 31, 2004, representing an increase of 20.1%. Operating, selling, general and administrative ("OSG&A") expenses for the year ended December 31, 2005, increased to $640.0 million (or 31.3% of product sales) from $552.7 million (or 32.1% of product sales) for the year ended December 31, 2004, representing an increase of 15.8%. The reduction in the effective tax rate from 37.3% for the year ended December 31, 2004 to 34.6% for the year ended December 31, 2005, reflects a one-time benefit of $6.1 million from the favorable resolution of prior tax uncertainties in the third quarter of 2005.

Net income for the fourth quarter ended December 31, 2005, totaled $39.5...

Read the full article for free courtesy of your local library.