Despite soft economy, O'Reilly posts sales increases for first quarter 2008

O'Reilly Automotive, Inc. recently released its first quarter 2008 results, which showed sales increases of 5.4 percent over last year, as well as a 7.1 percent increase in gross profit. The company also reported that it opened 37 new stores during the past year, and is on track to hit its revised target of opening 140 to 150 new stores in 2008, says Ted Wise, the O'Reilly's COO and co-president.

"As we expand in 2008, our Team remains dedicated to the O'Reilly culture and values that have made us successful for over 50 years," Wise adds. "Our goal to be the dominant supplier in each of our markets continues to be our top priority, and we will continue to move toward that goal by 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 acquisition and beginning the integration process."

Sales for the three months ended March 31, 2008, totaled $646 million, up 5.4 percent from $613 million for the same period a year ago. Gross profit for the first quarter of 2008 increased to $288 million (or 44.6 percent of sales) from $269 million (or 43.9 percent of sales) for the first quarter of 2007, representing an increase of 7.1 percent . Selling, General and Administrative expenses increased to $214 million (or 33.2 percent of sales) for the first quarter of 2008 rom $192 million (or 31.3 percent of sales) for the first quarter of 2007, representing an increase of 11.6 percent .

Net income for the first quarter ended March 31, 2008, totaled $46.3 million, down 4.3 percent from $48.4 million for the same period in 2007. Diluted earnings per common share for the first quarter of 2008 decreased 4.8 percent to $0.40 on 116.3 million shares compared to $0.42 for the first quarter of 2007 on 115.5 million shares.

"With softer sales resulting from a very challenging macro environment, our first quarter results were short of our expectations. However, even in the midst of these obstacles, we were able to increase gross profit to 44.6 percent of sales," says Greg Henslee, the company's CEO and co-president. "Although customer demand in our markets during the first quarter was sluggish, we continue to see opportunity to expand our market share on both the DIY and DIFM sides of our business. We remain excited about our upcoming acquisition of CSK Auto Corporation and look forward to implementing our dual market strategy in CSK's markets. Team O'Reilly will remain focused on our core values of customer service and expense control as we move forward in 2008."

Comparable store sales for stores open at least one year decreased 0.4 percent for the first quarter of 2008 compared to a 6.8 percent increase in the first quarter of 2007.

Assuming no significant change in the macroeconomic environment, the company estimates that diluted earnings per share for the second quarter of 2008 will be approximately $0.47 to $0.51 with an expected comparable store sales increase of 3 percent to 5 percent. The company projects full-year earnings to range from $1.81 to $1.85 per share, which has been adjusted slightly downward from the original guidance provided on Feb. 20, 2008 of $1.84 to $1.88 per share, with an expected comparable store sales increase of 3 percent to 5 percent.

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