O’Reilly Automotive, Inc. (the “Company” or “O’Reilly”)
(
Nasdaq: ORLY), a leading retailer in the
automotive aftermarket industry, today announced record revenue and
earnings for its fourth quarter ended December 31, 2020.
The results represent 28 consecutive years of comparable store
sales growth and record revenue and operating income for O’Reilly
since becoming a public company in April of 1993.
4th
Quarter Financial ResultsGreg Johnson, O’Reilly’s
CEO and Co-President, commented, “We are extremely pleased to
report another record-breaking quarter to finish out 2020, with the
incredible performance by Team O’Reilly in the fourth quarter
capping the best full-year financial results in our Company’s
history. I would like to thank Team O’Reilly for the tremendous
dedication and hard work they demonstrated time and again over the
past year in one of the most difficult environments we have ever
faced as a Company. Our top priority continues to be the protection
of the health and safety of our Team Members and customers, and we
are extremely proud of our Team’s continued outstanding service
that has been so critical to our customers during the pandemic.
This commitment drove our fourth quarter comparable store sales
increase of 11.2% and full-year comparable store sales growth of
10.9%, which represents our highest full-year same store sales
increase in the last 25 years.”
Sales for the fourth quarter ended
December 31, 2020, increased $346 million, or 14%, to
$2.83 billion from $2.48 billion for the same period one year ago.
Gross profit for the fourth quarter increased 11% to $1.47 billion
(or 52.0% of sales) from $1.32 billion (or 53.3% of sales) for the
same period one year ago. Selling, general and administrative
expenses (“SG&A”) for the fourth quarter increased 6% to $938
million (or 33.2% of sales) from $883 million (or 35.6% of sales)
for the same period one year ago. Operating income for the fourth
quarter increased 21% to $534 million (or 18.9% of sales) from $442
million (or 17.8% of sales) for the same period one year ago.
Net income for the fourth quarter ended
December 31, 2020, increased $68 million, or 21%, to $393
million (or 13.9% of sales) from $325 million (or 13.1% of sales)
for the same period one year ago. Diluted earnings per common share
for the fourth quarter increased 27% to $5.40 on 73 million shares
versus $4.25 on 76 million shares for the same period one year
ago.
Full-Year Financial ResultsMr.
Johnson further commented, “The robust sales volumes, combined with
diligent expense control, drove another extremely profitable
quarter, highlighted by a 21% increase in operating profit and a
27% increase in diluted earnings per share for the fourth quarter.
For the full year, diluted earnings per share increased 32%, as
Team O’Reilly generated an outstanding operating margin of 20.8%,
which exceeded our previous record operating margin by over 100
basis points. The tireless efforts of our Team allowed us to
produce these strong results even in the face of unprecedented
challenges in 2020.”
Sales for the year ended
December 31, 2020, increased $1.45 billion, or 14%, to
$11.60 billion from $10.15 billion for the same period one year
ago. Gross profit for the year ended December 31, 2020,
increased 13% to $6.09 billion (or 52.4% of sales) from $5.39
billion (or 53.1% of sales) for the same period one year ago.
SG&A for the year ended December 31, 2020, increased
6% to $3.67 billion (or 31.6% of sales) from $3.47 billion (or
34.2% of sales) for the same period one year ago. Operating income
for the year ended December 31, 2020, increased 26% to
$2.42 billion (or 20.8% of sales) from $1.92 billion (or 18.9% of
sales) for the same period one year ago.
Net income for the year ended
December 31, 2020, increased $361 million, or 26%, to
$1.75 billion (or 15.1% of sales) from $1.39 billion (or 13.7% of
sales) for the same period one year ago. Diluted earnings per
common share for the year ended December 31, 2020,
increased 32% to $23.53 on 74 million shares versus $17.88 on 78
million shares for the same period one year ago.
“As we look forward to 2021,” Mr. Johnson
continued, “we remain optimistic about our prospects to generate
continued strong financial results. We have seen a strong start to
the year, with the continuation of robust sales volumes through the
month of January, but we remain cautious as we plan for the coming
year in light of the continued significant uncertainty related to
the ongoing impact of the pandemic and the difficult comparisons we
will face beginning in April, as we lap the surge of volume we
experienced in 2020. As a result, our expectation is that
comparable store sales will be in the range of down 2% to flat,
versus 2020, but well above our historical trends on a two-year
stack basis.”
4th
Quarter and Full-Year Comparable Store Sales
ResultsComparable store sales are calculated based on the
change in sales for U.S. stores open at least one year and exclude
sales of specialty machinery, sales to independent parts stores and
sales to Team Members, as well as sales from Leap Day for the year
ended December 31, 2020. Online sales, resulting from ship-to-home
orders and pick-up-in-store orders, for U.S. stores open at least
one year, are included in the comparable store sales calculation.
Comparable store sales increased 11.2% for the fourth quarter ended
December 31, 2020, on top of 4.4% for the same period one
year ago. Comparable store sales increased 10.9% for the year ended
December 31, 2020, on top of 4.0% for the same period one
year ago.
Share Repurchase ProgramDuring
the fourth quarter ended December 31, 2020, the Company
repurchased 2.2 million shares of its common stock, at an average
price per share of $451.90, for a total investment of $993 million.
During the year ended December 31, 2020, the Company repurchased
4.8 million shares of its common stock, at an average price per
share of $431.93, for a total investment of $2.09 billion.
Subsequent to the end of the fourth quarter and through the date of
this release, the Company repurchased an additional 0.7 million
shares of its common stock, at an average price per share of
$447.40, for a total investment of $298 million. The Company has
repurchased a total of 81.7 million shares of its common stock
under its share repurchase program since the inception of the
program in January of 2011 and through the date of this release, at
an average price of $178.33, for a total aggregate investment of
$14.57 billion.
Today, the Company also announced that its Board
of Directors (the “Board”) approved a resolution to increase the
authorization amount under its share repurchase program by an
additional $1.0 billion, raising the aggregate authorization under
the program to $15.75 billion. The additional $1.0 billion
authorization is effective for a three-year period, beginning on
February 10, 2021. Stock repurchases under the program may be made
from time to time, as the Company deems appropriate, solely through
open market repurchases effected through a broker dealer at
prevailing market prices, based on a variety of factors such as
price, corporate requirements and overall market conditions. There
can be no assurance as to the number of shares the Company will
purchase, if any. The share repurchase program may be increased or
otherwise modified, renewed, suspended or terminated by the Company
at any time, without prior notice. As of the date of this release,
the Company had approximately $1.18 billion remaining under its
current share repurchase authorizations.
Full-Year 2021 GuidanceThe
Company is reinstituting its practice of providing selected
full-year guidance for 2021. The Company still anticipates
potentially significant volatility in its results, driven by the
ongoing uncertainty related to the pandemic, and will update
full-year guidance during 2021, as appropriate. The table below
outlines the Company’s guidance for selected full-year 2021
financial data:
|
|
For the Year Ending |
|
|
December 31, 2021 |
Net, new store openings |
|
165 to 175 |
Comparable store sales |
|
-2% to 0% |
Total revenue |
|
$11.5 billion to $11.8 billion |
Gross profit as
a percentage of sales |
|
52.2% to 52.7% |
Operating income as
a percentage of sales |
|
19.0% to 19.5% |
Effective income tax rate |
|
23.0% |
Diluted earnings per share
(1) |
|
$22.70 to $22.90 |
Net cash provided by operating
activities |
|
$1.7 billion to $2.2 billion |
Capital expenditures |
|
$550 million to $650 million |
Free cash flow (2) |
|
$1.0 billion to $1.3 billion |
(1) Weighted-average shares outstanding,
assuming dilution, used in the denominator of this calculation,
includes share repurchases made by the Company through the date of
this release.
(2) Free cash flow is a non-GAAP financial
measure. The table below reconciles Free cash flow guidance to Net
cash provided by operating activities guidance, the most directly
comparable GAAP financial measure:
|
|
For the Year Ending |
(in millions) |
|
December 31, 2021 |
Net cash provided by operating activities |
|
$ |
1,735 |
|
to |
|
$ |
2,160 |
|
Less: |
Capital expenditures |
|
|
550 |
|
to |
|
|
650 |
|
|
Excess tax benefit from
share-based compensation payments |
|
|
5 |
|
to |
|
|
10 |
|
|
Investment in tax credit
equity investments |
|
|
180 |
|
to |
|
|
200 |
Free cash flow |
|
$ |
1,000 |
|
to |
|
$ |
1,300 |
|
|
|
|
|
|
|
|
|
Non-GAAP InformationThis
release contains certain financial information not derived in
accordance with United States generally accepted accounting
principles (“GAAP”). These items include adjusted debt to earnings
before interest, taxes, depreciation, amortization, share-based
compensation and rent (“EBITDAR”) and free cash flow. The Company
does not, nor does it suggest investors should, consider such
non-GAAP financial measures in isolation from, or as a substitute
for, GAAP financial information. The Company believes that the
presentation of adjusted debt to EBITDAR and free cash flow provide
meaningful supplemental information to both management and
investors that is indicative of the Company’s core operations. The
Company has included a reconciliation of this additional
information to the most comparable GAAP measure in the table above
and the selected financial information below.
Earnings Conference Call
InformationThe Company will host a conference call on
Thursday, February 11, 2021, at 10:00 a.m. Central Time to discuss
its results as well as future expectations. Investors may listen to
the conference call live on the Company’s website at
www.OReillyAuto.com by clicking on “Investor Relations” and
then “News Room.” Interested analysts are invited to join the call.
The dial-in number for the call is (703) 375-5524; the conference
call identification number is 4092338. A replay of the conference
call will be available on the Company’s website through Thursday,
February 10, 2022.
About O’Reilly Automotive,
Inc.O’Reilly Automotive, Inc. was founded in 1957 by the
O’Reilly family and is one of the largest specialty retailers of
automotive aftermarket parts, tools, supplies, equipment and
accessories in the United States, serving both the do-it-yourself
and professional service provider markets. Visit the Company’s
website at www.OReillyAuto.com for additional information
about O’Reilly, including access to online shopping and current
promotions, store locations, hours and services, employment
opportunities and other programs. As of
December 31, 2020, the Company operated 5,594 stores in
47 U.S. states and 22 stores in Mexico.
Forward-Looking StatementsThe
Company claims the protection of the safe-harbor for
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. You can identify these
statements by forward-looking words such as “estimate,” “may,”
“could,” “will,” “believe,” “expect,” “would,” “consider,”
“should,” “anticipate,” “project,” “plan,” “intend” or similar
words. In addition, statements contained within this press release
that are not historical facts are forward-looking statements, such
as statements discussing, among other things, expected growth,
store development, integration and expansion strategy, business
strategies, future revenues and future performance. These
forward-looking statements are based on estimates, projections,
beliefs and assumptions and are not guarantees of future events and
results. Such statements are subject to risks, uncertainties and
assumptions, including, but not limited to, the COVID-19 pandemic
or other public health crisis, the economy in general, inflation,
tariffs, product demand, the market for auto parts, competition,
weather, risks associated with the performance of acquired
businesses, our ability to hire and retain qualified employees,
consumer debt levels, our increased debt levels, credit ratings on
public debt, governmental regulations, information security and
cyber-attacks, terrorist activities, war and the threat of war.
Actual results may materially differ from anticipated results
described or implied in these forward-looking statements. Please
refer to the “Risk Factors” section of the annual report on Form
10-K for the year ended December 31, 2019, and subsequent
Securities and Exchange Commission filings for additional factors
that could materially affect the Company’s financial performance.
Forward-looking statements speak only as of the date they were made
and the Company undertakes no obligation to publicly update any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable
law.
For further information contact: |
Investor & Media Contacts |
|
Mark Merz (417) 829-5878 |
|
Eric Bird (417) 868-4259 |
O’REILLY AUTOMOTIVE, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In
thousands, except share data)
|
|
December 31, 2020 |
|
December 31, 2019 |
|
|
(Unaudited) |
|
(Note) |
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
465,640 |
|
|
$ |
40,406 |
|
Accounts receivable, net |
|
|
229,679 |
|
|
|
214,915 |
|
Amounts receivable from suppliers |
|
|
100,615 |
|
|
|
79,492 |
|
Inventory |
|
|
3,653,195 |
|
|
|
3,454,092 |
|
Other current assets |
|
|
50,658 |
|
|
|
44,757 |
|
Total current assets |
|
|
4,499,787 |
|
|
|
3,833,662 |
|
|
|
|
|
|
|
|
Property and equipment, at
cost |
|
|
6,559,911 |
|
|
|
6,191,427 |
|
Less: accumulated depreciation
and amortization |
|
|
2,464,993 |
|
|
|
2,243,224 |
|
Net property and equipment |
|
|
4,094,918 |
|
|
|
3,948,203 |
|
|
|
|
|
|
|
|
Operating lease, right-of-use
assets |
|
|
1,995,127 |
|
|
|
1,928,369 |
|
Goodwill |
|
|
881,030 |
|
|
|
936,814 |
|
Other assets, net |
|
|
125,780 |
|
|
|
70,112 |
|
Total assets |
|
$ |
11,596,642 |
|
|
$ |
10,717,160 |
|
|
|
|
|
|
|
|
Liabilities and
shareholders’ equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
4,184,662 |
|
|
$ |
3,604,722 |
|
Self-insurance reserves |
|
|
109,199 |
|
|
|
79,079 |
|
Accrued payroll |
|
|
88,875 |
|
|
|
100,816 |
|
Accrued benefits and withholdings |
|
|
242,724 |
|
|
|
98,539 |
|
Income taxes payable |
|
|
16,786 |
|
|
|
— |
|
Current portion of operating lease liabilities |
|
|
322,778 |
|
|
|
316,061 |
|
Other current liabilities |
|
|
297,393 |
|
|
|
270,210 |
|
Total current liabilities |
|
|
5,262,417 |
|
|
|
4,469,427 |
|
|
|
|
|
|
|
|
Long-term debt |
|
|
4,123,217 |
|
|
|
3,890,527 |
|
Operating lease liabilities,
less current portion |
|
|
1,718,691 |
|
|
|
1,655,297 |
|
Deferred income taxes |
|
|
155,899 |
|
|
|
133,280 |
|
Other liabilities |
|
|
196,160 |
|
|
|
171,289 |
|
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
Common stock, $0.01 par value: |
|
|
|
|
|
|
Authorized shares – 245,000,000 Issued and outstanding shares –
71,123,109 as of December 31, 2020, and 75,618,659 as of
December 31, 2019 |
|
|
711 |
|
|
|
756 |
|
Additional paid-in capital |
|
|
1,280,841 |
|
|
|
1,280,760 |
|
Retained deficit |
|
|
(1,139,139 |
) |
|
|
(889,066 |
) |
Accumulated other comprehensive (loss) income |
|
|
(2,155 |
) |
|
|
4,890 |
|
Total shareholders’
equity |
|
|
140,258 |
|
|
|
397,340 |
|
|
|
|
|
|
|
|
Total liabilities and
shareholders’ equity |
|
$ |
11,596,642 |
|
|
$ |
10,717,160 |
|
Note: The balance sheet at
December 31, 2019, has been derived from the audited
consolidated financial statements at that date but does not include
all of the information and footnotes required by United States
generally accepted accounting principles for complete financial
statements.
O’REILLY AUTOMOTIVE, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF INCOME(In
thousands, except per share data)
|
|
For the Three Months Ended |
|
For the Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Note) |
Sales |
|
$ |
2,828,773 |
|
|
$ |
2,482,975 |
|
|
$ |
11,604,493 |
|
|
$ |
10,149,985 |
|
Cost of goods sold, including
warehouse and distribution expenses |
|
|
1,356,635 |
|
|
|
1,158,391 |
|
|
|
5,518,801 |
|
|
|
4,755,294 |
|
Gross profit |
|
|
1,472,138 |
|
|
|
1,324,584 |
|
|
|
6,085,692 |
|
|
|
5,394,691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
|
937,866 |
|
|
|
883,081 |
|
|
|
3,666,356 |
|
|
|
3,473,965 |
|
Operating income |
|
|
534,272 |
|
|
|
441,503 |
|
|
|
2,419,336 |
|
|
|
1,920,726 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(38,349 |
) |
|
|
(35,288 |
) |
|
|
(161,126 |
) |
|
|
(139,975 |
) |
Interest income |
|
|
599 |
|
|
|
732 |
|
|
|
2,491 |
|
|
|
2,545 |
|
Other, net |
|
|
3,407 |
|
|
|
2,366 |
|
|
|
5,704 |
|
|
|
7,033 |
|
Total other expense |
|
|
(34,343 |
) |
|
|
(32,190 |
) |
|
|
(152,931 |
) |
|
|
(130,397 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
499,929 |
|
|
|
409,313 |
|
|
|
2,266,405 |
|
|
|
1,790,329 |
|
Provision for income
taxes |
|
|
106,984 |
|
|
|
84,397 |
|
|
|
514,103 |
|
|
|
399,287 |
|
Net income |
|
$ |
392,945 |
|
|
$ |
324,916 |
|
|
$ |
1,752,302 |
|
|
$ |
1,391,042 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share-basic: |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
$ |
5.45 |
|
|
$ |
4.29 |
|
|
$ |
23.74 |
|
|
$ |
18.07 |
|
Weighted-average common shares
outstanding – basic |
|
|
72,143 |
|
|
|
75,713 |
|
|
|
73,817 |
|
|
|
76,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share-assuming
dilution: |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
$ |
5.40 |
|
|
$ |
4.25 |
|
|
$ |
23.53 |
|
|
$ |
17.88 |
|
Weighted-average common shares
outstanding – assuming dilution |
|
|
72,771 |
|
|
|
76,495 |
|
|
|
74,462 |
|
|
|
77,788 |
|
Note: The income statement for the year ended
December 31, 2019, has been derived from the audited consolidated
financial statements at that date but does not include all of the
information and footnotes required by United States generally
accepted accounting principles for complete financial
statements.
O’REILLY AUTOMOTIVE, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (In thousands)
|
|
For the Year Ended |
|
|
December 31, |
|
|
2020 |
|
2019 |
|
|
(Unaudited) |
|
(Note) |
Operating
activities: |
|
|
|
|
|
|
Net income |
|
$ |
1,752,302 |
|
|
$ |
1,391,042 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
|
|
Depreciation and amortization of property, equipment and
intangibles |
|
|
314,635 |
|
|
|
270,875 |
|
Amortization of debt discount and issuance costs |
|
|
4,580 |
|
|
|
3,916 |
|
Deferred income taxes |
|
|
12,381 |
|
|
|
21,158 |
|
Share-based compensation programs |
|
|
22,747 |
|
|
|
21,921 |
|
Other |
|
|
4,686 |
|
|
|
7,529 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
(20,515 |
) |
|
|
(15,577 |
) |
Inventory |
|
|
(198,864 |
) |
|
|
(239,912 |
) |
Accounts payable |
|
|
580,608 |
|
|
|
213,423 |
|
Income taxes payable |
|
|
197,739 |
|
|
|
(20,139 |
) |
Other |
|
|
166,304 |
|
|
|
54,243 |
|
Net cash provided by operating activities |
|
|
2,836,603 |
|
|
|
1,708,479 |
|
|
|
|
|
|
|
|
Investing
activities: |
|
|
|
|
|
|
Purchases of property and
equipment |
|
|
(465,579 |
) |
|
|
(628,057 |
) |
Proceeds from sale of property
and equipment |
|
|
15,770 |
|
|
|
7,118 |
|
Investment in tax credit
equity investments |
|
|
(164,111 |
) |
|
|
(33,781 |
) |
Other |
|
|
(975 |
) |
|
|
(142,026 |
) |
Net cash used in investing activities |
|
|
(614,895 |
) |
|
|
(796,746 |
) |
|
|
|
|
|
|
|
Financing
activities: |
|
|
|
|
|
|
Proceeds from borrowings on
revolving credit facility |
|
|
1,162,000 |
|
|
|
2,708,000 |
|
Payments on revolving credit
facility |
|
|
(1,423,000 |
) |
|
|
(2,734,000 |
) |
Proceeds from the issuance of
long-term debt |
|
|
997,515 |
|
|
|
499,955 |
|
Repayment of long-term
debt |
|
|
(500,000 |
) |
|
|
— |
|
Payment of debt issuance
costs |
|
|
(7,929 |
) |
|
|
(3,990 |
) |
Repurchases of common
stock |
|
|
(2,087,194 |
) |
|
|
(1,432,791 |
) |
Net proceeds from issuance of
common stock |
|
|
62,284 |
|
|
|
60,206 |
|
Other |
|
|
(253 |
) |
|
|
(191 |
) |
Net cash used in financing activities |
|
|
(1,796,577 |
) |
|
|
(902,811 |
) |
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash |
|
|
103 |
|
|
|
169 |
|
Net increase in cash and cash
equivalents |
|
|
425,234 |
|
|
|
9,091 |
|
Cash and cash equivalents at
beginning of the year |
|
|
40,406 |
|
|
|
31,315 |
|
Cash and cash equivalents at
end of the year |
|
$ |
465,640 |
|
|
$ |
40,406 |
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information: |
|
|
|
|
|
|
Income taxes paid |
|
$ |
305,087 |
|
|
$ |
394,931 |
|
Interest paid, net of
capitalized interest |
|
|
159,717 |
|
|
|
134,634 |
|
Note: The cash flow statement for the year ended
December 31, 2019, has been derived from the audited consolidated
financial statements at that date but does not include all of the
information and footnotes required by United States generally
accepted accounting principles for complete financial
statements.
O’REILLY AUTOMOTIVE, INC. AND
SUBSIDIARIESSELECTED FINANCIAL INFORMATION (Unaudited)
|
|
For the Year Ended |
|
|
December 31, |
Adjusted
Debt to EBITDAR: |
|
2020 |
|
2019 |
(In thousands,
except adjusted debt to EBITDAR ratio) |
|
|
|
|
|
|
|
|
GAAP debt |
|
$ |
4,123,217 |
|
|
$ |
3,890,527 |
|
Add: |
Letters of credit |
|
|
66,427 |
|
|
|
38,870 |
|
|
Discount on senior notes |
|
|
5,071 |
|
|
|
3,515 |
|
|
Debt issuance costs |
|
|
21,712 |
|
|
|
16,958 |
|
|
Six-times rent expense |
|
|
2,125,896 |
|
|
|
2,032,182 |
|
Adjusted debt |
|
$ |
6,342,323 |
|
|
$ |
5,982,052 |
|
|
|
|
|
|
|
|
|
|
GAAP net
income |
|
$ |
1,752,302 |
|
|
$ |
1,391,042 |
|
Add: |
Interest expense |
|
|
161,126 |
|
|
|
139,975 |
|
|
Provision for income
taxes |
|
|
514,103 |
|
|
|
399,287 |
|
|
Depreciation and
amortization |
|
|
314,635 |
|
|
|
270,875 |
|
|
Share-based compensation
expense |
|
|
22,747 |
|
|
|
21,921 |
|
|
Rent expense (i) |
|
|
354,316 |
|
|
|
338,697 |
|
EBITDAR |
|
$ |
3,119,229 |
|
|
$ |
2,561,797 |
|
|
|
|
|
|
|
|
|
|
Adjusted debt to
EBITDAR |
|
|
2.03 |
|
|
|
2.34 |
|
(i) The table below outlines the
calculation of Rent expense and reconciles Rent expense to Total
lease cost, per ASC 842, the most directly comparable GAAP
financial measure, for the year ended December 31, 2020
and 2019 (in thousands):
Total lease cost, per ASC 842, for the year ended
December 31, 2020 |
|
$ |
420,365 |
|
|
Less: |
Variable non-contract operating lease components, related to
property taxes and insurance, for the year ended
December 31, 2020 |
|
|
66,049 |
|
Rent expense for the year ended December 31, 2020 |
|
$ |
354,316 |
|
|
|
|
|
|
|
|
Total lease cost, per ASC 842, for the year ended
December 31, 2019 |
|
$ |
398,294 |
|
|
Less: |
Variable non-contract operating
lease components, related to property taxes and insurance, for the
year ended December 31, 2019 |
|
|
59,597 |
|
Rent expense for the year ended December 31, 2019 |
|
$ |
338,697 |
|
|
|
|
|
|
|
|
December 31, |
|
|
2020 |
|
2019 |
Selected Balance Sheet Ratios: |
|
|
|
|
|
|
|
|
Inventory turnover (1) |
|
|
1.5 |
|
|
|
1.4 |
|
Average inventory per store
(in thousands) (2) |
|
$ |
650 |
|
|
$ |
633 |
|
Accounts payable to inventory
(3) |
|
|
114.5 |
% |
|
|
104.4 |
% |
|
|
|
For the Three Months Ended |
|
For the Year Ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Reconciliation of Free Cash Flow (in
thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities |
|
$ |
487,474 |
|
|
$ |
218,803 |
|
|
$ |
2,836,603 |
|
|
$ |
1,708,479 |
|
Less: |
Capital expenditures |
|
|
102,154 |
|
|
|
146,850 |
|
|
|
465,579 |
|
|
|
628,057 |
|
|
Excess tax benefit from
share-based compensation payments |
|
|
2,132 |
|
|
|
12,933 |
|
|
|
16,918 |
|
|
|
25,992 |
|
|
Investment in tax credit
equity investments |
|
|
68,819 |
|
|
|
15,793 |
|
|
|
164,111 |
|
|
|
33,781 |
|
Free cash
flow |
|
$ |
314,369 |
|
|
$ |
43,227 |
|
|
$ |
2,189,995 |
|
|
$ |
1,020,649 |
|
|
|
For the Three Months Ended |
|
For the Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Store
Count: |
|
|
|
|
|
|
|
|
|
|
Beginning store count |
|
|
5,592 |
|
|
|
5,420 |
|
|
|
5,439 |
|
|
|
5,219 |
|
New stores opened |
|
|
5 |
|
|
|
19 |
|
|
|
167 |
|
|
|
202 |
|
Bennett stores acquired, net
of stores merged (4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20 |
|
Stores closed |
|
|
(3 |
) |
|
|
— |
|
|
|
(12 |
) |
|
|
(2 |
) |
Ending domestic store
count |
|
|
5,594 |
|
|
|
5,439 |
|
|
|
5,594 |
|
|
|
5,439 |
|
|
|
|
|
|
|
|
|
|
|
|
Mexico stores (5) |
|
|
22 |
|
|
|
21 |
|
|
|
22 |
|
|
|
21 |
|
Ending total store count |
|
|
5,616 |
|
|
|
5,460 |
|
|
|
5,616 |
|
|
|
5,460 |
|
|
|
For the Three Months Ended |
|
For the Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Store and Team Member Information: (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total employment |
|
|
76,257 |
|
|
|
81,223 |
|
|
|
|
|
|
|
|
|
Square footage (in
thousands) |
|
|
41,668 |
|
|
|
40,227 |
|
|
|
|
|
|
|
|
|
Sales per weighted-average
square foot (7) |
|
$ |
66.70 |
|
|
$ |
61.15 |
|
|
$ |
276.96 |
|
|
$ |
254.81 |
|
Sales per weighted-average
store (in thousands) (8) |
|
$ |
497 |
|
|
$ |
452 |
|
|
$ |
2,057 |
|
|
$ |
1,881 |
|
(1) Calculated as cost of goods sold for
the last 12 months divided by average inventory. Average inventory
is calculated as the average of inventory for the trailing four
quarters used in determining the denominator.(2) Calculated as
inventory divided by store count at the end of the reported
period.(3) Calculated as accounts payable divided by
inventory.(4) O’Reilly acquired 33 Bennett Auto Supply, Inc.
(“Bennett”) stores after the close of business on December 31,
2018, which were not included in the December 31, 2018, store
count, as they were not operated by the Company for any portion of
2018. During the first quarter ended March 31, 2019, O’Reilly
merged eight of the acquired Bennett stores into existing O’Reilly
locations, and during the second quarter ended June 30, 2019,
O’Reilly merged an additional five acquired Bennett stores into
existing O’Reilly locations.(5) O’Reilly acquired Mayoreo de
Autopartes y Aceites, S.A. de C.V. (“Mayasa”), headquartered in
Guadalajara, Jalisco, Mexico, after the close of business on
November 29, 2019.(6) Represents O’Reilly’s U.S. operations
only.(7) Calculated as sales less jobber sales, divided by
weighted-average square footage. Weighted-average square footage is
determined by weighting store square footage based on the
approximate dates of store openings, acquisitions, expansions or
closures.(8) Calculated as sales less jobber sales, divided by
weighted-average stores. Weighted-average stores is determined by
weighting stores based on their approximate dates of openings,
acquisitions or closures.
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