O'Reilly reports record fourth quarter earnings

A continued focus on service and the addition of 56 new stores boosted O'Reilly Automotive, Inc.'s revenues and earnings for the fourth quarter and year ended Dec. 31, 2007. These results represent 15 consecutive years of record revenues and earnings and positive comparable store sales increases for O'Reilly since it became a public company in April 1993.

"We would like to thank every member of Team O'Reilly for their hard work and dedication in 2007. We generated an 11.3 percent increase in gross profit through our continued focus on providing unparalleled service to all of our customers," says the company's CEO and Co-President Greg Henslee. "In spite of a very challenging economic environment in 2007, we were able to increase net income by 8.9 percent. Our focus remains on customer service and gaining market share in new and existing markets. We look forward to all of the opportunities 2008 will present."

Sales for the fourth quarter ended Dec. 31, 2007, totaled $604 million, up 8.2 percent from $558 million for the same period a year ago. Gross profit for the fourth quarter ended Dec. 31, 2007, increased to $270 million (or 44.7 percent of sales) from $249 million (or 44.6 percent of sales) for the same period a year ago, representing an increase of 8.5 percent . Operating, selling, general and administrative (OSG&A) expenses for the fourth quarter of 2007 increased to $207 million (or 34.2 percent of sales) from $185 million (or 33.1 of sales) for the same period a year ago, representing an increase of 11.7 percent.

Net income for the fourth quarter ended Dec. 31, 2007, totaled $40.6 million, up 0.6 percent from $40.4 million for the same period in 2006. Diluted earnings per common share for the fourth quarter ended Dec. 31, 2007 were even at $0.35 on 116.3 million shares versus $0.35 a year ago on 115.4 million shares.

For the year ended Dec. 31, 2007, sales increased $239 million, or 10.5 percent, to $2.52 billion from $2.28 billion for the year ended Dec. 31, 2006. Gross profit for the year ended Dec. 31, 2007, increased to $1.12 billion (or 44.4 percent of sales) from $1.01 billion (or 44.1 percent of sales) for the year ended Dec. 31, 2006, representing an increase of 11.3 percent. OSG&A expenses for the year ended Dec. 31, 2007, increased to $815 million (or 32.3 percent of sales) from $724 million (or 31.7 percent of sales) for the year ended Dec. 31, 2006, representing an increase of 12.6 percent.

Net income for the year ended Dec. 31, 2007, totaled $194.0 million, up 8.9 percent from $178.1 million for the year ended Dec. 31, 2006. Diluted earnings per common share for the year ended Dec. 31, 2007, increased 7.7 percent to $1.67 on 116.1 million shares versus $1.55 a year ago on 115.1 million shares.

Comparable store sales for stores open at least one year increased 2.1 percent and 3.7 percent for the fourth quarter and year ended Dec. 31, 2007, respectively, representing 59 quarters of positive comparable store sales results since O'Reilly became a public company in April 1993.

"We added 56 new stores in the fourth quarter bringing us to a total of 190 for the year. We are very pleased with our marketing efforts during the year and will continue to build the O'Reilly brand through regional and local events during 2008." says Ted Wise, the company's COO and co-president. "Team O'Reilly is more focused than ever on providing outstanding service to both Do-It-Yourself and Do-It-For-Me customers, and we will expand the O’Reilly culture to every market we enter in 2008."

For more information about O'Reilly Automotive, Inc., visit the company's Web site.