O’Reilly Automotive announced record revenues and earnings for the second quarter 2009. Sales for the three months ended June 30, 2009, totaled $1.25 billion, up 78 percent from $0.70 billion for the same period a year ago. Gross profit for the second quarter of 2009 increased to $604 million (or 48.2 percent of sales) from $317 million (or 45 percent of sales) for the second quarter of 2008, representing an increase of 90 percent.
Net income for the second quarter totaled $86 million, up 53 percent from $56 million for the same period in 2008. Diluted earnings per common share for the second quarter of 2009 increased 29 percent to $0.62 on 137.5 million shares compared to $0.48 for the second quarter of 2008 on 116.5 million shares.
Sales for the first six months of 2009 totaled $2.42 billion, up 79 percent from $1.35 billion for the same period a year ago. Gross profit for the first six months of 2009 increased to $1.15 billion (or 47.5% of sales)
from $0.61 billion (or 44.8% of sales) for the same period a year ago, representing an increase of 89%.
Commenting on the company’s quarterly results, Greg Henslee, CEO and co-President, stated, “We are pleased to report a solid consolidated comparable store sales increase of 4.8 percent for the quarter. Stores operating on the O’Reilly systems, including all of the Murray’s stores, which are in various conversion stages, as well as all fully-converted stores, generated a comparable store sales increase of 6.1 percent. This increase was comprised of a 7.8 percent increase at the “core O’Reilly” stores, a 3.4 percent decrease at the converted stores and an 11.9 percent decrease at the Murray’s stores.
“Stores operating on the legacy CSK systems achieved a third consecutive quarter of positive comparable store sales with a 2.1% increase. The converted and Murray’s stores comparable sales results include sales after the conversion to the O’Reilly systems and were negatively impacted by the change in systems, the disruption in business created by the closure of the stores during conversion and the ongoing remodeling once the stores were reopened. The converted stores have performed very well in the hard-part categories, which are the staple of the O’Reilly dual market strategy with the overall negative comps driven by non-core automotive sales made in the previous year. The layouts of many of the Murray's stores have been drastically changed to support our dual market strategy and their performance has been negatively impacted by the remodeling work that has been completed while the stores remained open.”
Ted Wise, COO and co-President, stated, “We opened 50 new stores during the second quarter, bringing our new store growth for 2009 through the end of June to 108 stores and keeping us on track to meet our goal of adding 150 new stores for the year. Our store conversion teams have been busy completing front room merchandise changeovers in the Murray’s locations, which we converted to the O’Reilly point-of sale system in April.
“In addition, our conversion teams converted 41 other CSK branded stores to the O’Reilly Brand during the quarter, completing the first phase of our store conversion plan. Our new distribution center in Greensboro, North Carolina, opened as scheduled on May 11, and I would like to thank all of the dedicated Team Members that made the opening possible.”
