• O’Reilly Automotive, Inc. Reports Fourth Quarter and Full-Year 2024 Results

    المصدر: Nasdaq GlobeNewswire / 05 فبراير 2025 16:30:06   America/New_York

    • Fourth quarter comparable store sales growth of 4.4%, full-year increase of 2.9%
    • $3.0 billion net cash provided by operating activities in 2024

    SPRINGFIELD, Mo., Feb. 05, 2025 (GLOBE NEWSWIRE) -- O’Reilly Automotive, Inc. (the “Company” or “O’Reilly”) (Nasdaq: ORLY), a leading retailer in the automotive aftermarket industry, today announced record revenue for its fourth quarter and full-year ended December 31, 2024. The results represent 32 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 Results

    Brad Beckham, O’Reilly’s CEO, commented, “We are pleased to report a strong finish to 2024 in the fourth quarter, highlighted by 4.4% growth in comparable store sales, driven by solid growth in both professional and DIY. Our Team is relentlessly focused on executing our industry-leading model at a high level, which we believe continues to generate market share gains on both sides of our business. I would like to take this opportunity to commend Team O’Reilly on their performance in the fourth quarter and thank each of you for your hard work and continued commitment to providing excellent customer service.”

    Sales for the fourth quarter ended December 31, 2024, increased $264 million, or 7%, to $4.10 billion from $3.83 billion for the same period one year ago. Gross profit for the fourth quarter increased 7% to $2.10 billion (or 51.3% of sales) from $1.97 billion (or 51.3% of sales) for the same period one year ago. Selling, general and administrative expenses (“SG&A”) for the fourth quarter increased 9% to $1.36 billion (or 33.3% of sales) from $1.25 billion (or 32.6% of sales) for the same period one year ago. Operating income for the fourth quarter increased 3% to $739 million (or 18.0% of sales) from $719 million (or 18.8% of sales) for the same period one year ago.

    SG&A expenses for the fourth quarter included a charge of $35 million to adjust reserves relating to our self-insurance liabilities for historic auto liability claims. The adjustment relates to claims that occurred prior to 2024 and reflects adverse claim development experience and revised assumptions used to estimate future liabilities for these claim years.

    Net income for the fourth quarter ended December 31, 2024, decreased $1 million to $551 million (or 13.5% of sales) from $553 million (or 14.4% of sales) for the same period one year ago. Diluted earnings per common share for the fourth quarter increased 3% to $9.50 on 58 million shares versus $9.26 on 60 million shares for the same period one year ago. The self-insurance reserve adjustment, net of tax, impacted fourth quarter net income and diluted earnings per share by $27 million and $0.46, respectively.

    Full-Year Financial Results

    Mr. Beckham continued, “Our strong performance in the fourth quarter lifted our full-year comparable store sales growth to 2.9%, at the high end of our revised guidance range of 2% to 3%. While our 2024 results were below our expectations entering the year, we are pleased with our Team’s ability to deliver solid comparable store sales growth despite tough market conditions. 2024 represents our 32nd consecutive year of annual comparable store sales growth and record earnings, and I want to congratulate Team O’Reilly on their consistent performance and unwavering commitment to our customers. Our Team also delivered a strong finish to our expansion efforts in 2024, meeting our new store opening target with the successful opening of 198 net, new stores and completing our planned distribution expansion with the relocation of our Atlanta, Georgia distribution center to a larger, modern facility in the fourth quarter.”

    Sales for the year ended December 31, 2024, increased $896 million, or 6%, to $16.71 billion from $15.81 billion for the same period one year ago. Gross profit for the year ended December 31, 2024, increased 6% to $8.55 billion (or 51.2% of sales) from $8.10 billion (or 51.3% of sales) for the same period one year ago. SG&A for the year ended December 31, 2024, increased 8% to $5.30 billion (or 31.7% of sales) from $4.92 billion (or 31.1% of sales) for the same period one year ago. Operating income for the year ended December 31, 2024, increased 2% to $3.25 billion (or 19.5% of sales) from $3.19 billion (or 20.2% of sales) for the same period one year ago.

    Net income for the year ended December 31, 2024, increased $40 million, or 2%, to $2.39 billion (or 14.3% of sales) from $2.35 billion (or 14.8% of sales) for the same period one year ago. Diluted earnings per common share for the year ended December 31, 2024, increased 6% to $40.66 on 59 million shares versus $38.47 on 61 million shares for the same period one year ago.

    4th Quarter and Full-Year Comparable Store Sales Results

    Comparable 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, 2024. Online sales for 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 4.4% for the fourth quarter ended December 31, 2024, on top of 3.4% for the same period one year ago. Comparable store sales increased 2.9% for the year ended December 31, 2024, on top of 7.9% for the same period one year ago.

    Share Repurchase Program

    During the fourth quarter ended December 31, 2024, the Company repurchased 0.4 million shares of its common stock, at an average price per share of $1,207.43, for a total investment of $472 million. During the year ended December 31, 2024, the Company repurchased 1.9 million shares of its common stock, at an average price per share of $1,072.47, for a total investment of $2.08 billion. Excise tax on shares repurchased, assessed at one percent of the fair market value of shares repurchased, was $20.8 million for the year ended December 31, 2024. Subsequent to the end of the fourth quarter and through the date of this release, the Company repurchased an additional 0.1 million shares of its common stock, at an average price per share of $1,232.37, for a total investment of $181 million. The Company has repurchased a total of 96.2 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 $264.49, for a total aggregate investment of $25.44 billion. As of the date of this release, the Company had approximately $2.31 billion remaining under its current share repurchase authorizations.

    Full-Year 2025 Guidance

    The table below outlines the Company’s guidance for selected full-year 2025 financial data:

       
       For the Year Ending
      December 31, 2025
    Net, new store openings 200 to 210
    Comparable store sales 2.0% to 4.0%
    Total revenue $17.4 billion to $17.7 billion
    Gross profit as a percentage of sales 51.2% to 51.7%
    Operating income as a percentage of sales 19.2% to 19.7%
    Effective income tax rate 22.6%
    Diluted earnings per share (1) $42.60 to $43.10
    Net cash provided by operating activities $2.8 billion to $3.2 billion
    Capital expenditures $1.2 billion to $1.3 billion
    Free cash flow (2) $1.6 billion to $1.9 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, 2025
    Net cash provided by operating activities$2,810 to $3,220
     Less:Capital expenditures 1,200 to  1,300
      Excess tax benefit from share-based compensation payments 10 to  20
    Free cash flow$1,600 to $1,900
     

    Non-GAAP Information

    This 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 Information

    The Company will host a conference call on Thursday, February 06, 2025, 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 (888) 506-0062 and the conference call identification number is 186296. A replay of the conference call will be available on the Company’s website through Thursday, February 05, 2026.

    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, 2024, the Company operated 6,378 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada.

    Forward-Looking Statements

    The 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,” “guidance,” “target,” 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 economy in general; inflation; consumer debt levels; product demand; a public health crisis; the market for auto parts; competition; weather; tariffs; availability of key products and supply chain disruptions; business interruptions, including terrorist activities, war and the threat of war; failure to protect our brand and reputation; challenges in international markets; volatility of the market price of our common stock; our increased debt levels; credit ratings on public debt; damage, failure, or interruption of information technology systems, including information security and cyber-attacks; historical growth rate sustainability; our ability to hire and retain qualified employees; risks associated with the performance of acquired businesses; and governmental regulations. 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, 2023, 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 Relations Contacts
     Leslie Skorick (417) 874-7142
     Eric Bird (417) 868-4259
      
     Media Contact
     Sonya Cox (417) 829-5709
      

     


    O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands, except share data)
           
     December 31, 2024 December 31, 2023
     (Unaudited) (Note)
    Assets     
    Current assets:     
    Cash and cash equivalents$ 130,245  $279,132 
    Accounts receivable, net  356,839   375,049 
    Amounts receivable from suppliers  139,091   140,443 
    Inventory  5,095,804   4,658,367 
    Other current assets  117,916   105,311 
    Total current assets  5,839,895   5,558,302 
          
    Property and equipment, at cost  9,192,254   8,312,367 
    Less: accumulated depreciation and amortization  3,587,098   3,275,387 
    Net property and equipment  5,605,156   5,036,980 
          
    Operating lease, right-of-use assets  2,324,638   2,200,554 
    Goodwill  930,161   897,696 
    Other assets, net  193,891   179,463 
    Total assets$ 14,893,741  $13,872,995 
          
    Liabilities and shareholders’ deficit     
    Current liabilities:     
    Accounts payable$ 6,524,811  $6,091,700 
    Self-insurance reserves  149,387   128,548 
    Accrued payroll  107,495   138,122 
    Accrued benefits and withholdings  199,593   174,650 
    Income taxes payable  6,274   7,860 
    Current portion of operating lease liabilities  419,213   389,536 
    Other current liabilities  876,732   730,937 
    Total current liabilities  8,283,505   7,661,353 
          
    Long-term debt  5,520,932   5,570,125 
    Operating lease liabilities, less current portion  1,980,705   1,881,344 
    Deferred income taxes  247,599   295,471 
    Other liabilities  231,961   203,980 
          
    Shareholders’ equity (deficit):     
    Common stock, $0.01 par value:     
    Authorized shares – 245,000,000     
    Issued and outstanding shares –     
    57,482,184 as of December 31, 2024, and     
    59,072,792 as of December 31, 2023  575   591 
    Additional paid-in capital  1,462,565   1,352,275 
    Retained deficit  (2,791,288)  (3,131,532)
    Accumulated other comprehensive (loss) income  (42,813)  39,388 
    Total shareholders’ deficit  (1,370,961)  (1,739,278)
          
    Total liabilities and shareholders’ deficit$ 14,893,741  $13,872,995 
     
    Note: The balance sheet at December 31, 2023, 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 SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (In thousands, except per share data)
                 
     For the Three Months Ended  For the Year Ended
     December 31,  December 31, 
     2024  2023  2024  2023 
      (Unaudited)  (Unaudited)  (Unaudited)  (Note)
    Sales$4,095,601  $3,832,015  $16,708,479  $15,812,250 
    Cost of goods sold, including warehouse and distribution expenses 1,994,569   1,864,586   8,153,990   7,707,447 
    Gross profit 2,101,032   1,967,429   8,554,489   8,104,803 
                
    Selling, general and administrative expenses 1,362,382   1,248,693   5,303,332   4,918,427 
    Operating income 738,650   718,736   3,251,157   3,186,376 
                
    Other income (expense):           
    Interest expense (55,403)  (56,148)  (222,548)  (201,668)
    Interest income 2,056   1,980   7,295   4,900 
    Other, net  (106)  6,963    9,160   15,142 
    Total other expense  (53,453)  (47,205)   (206,093)  (181,626)
                
    Income before income taxes  685,197   671,531    3,045,064   3,004,750 
    Provision for income taxes  134,067   119,027    658,384   658,169 
    Net income$ 551,130  $552,504  $ 2,386,680  $2,346,581 
                
    Earnings per share-basic:           
    Earnings per share$9.56  $9.33  $40.91  $38.80 
    Weighted-average common shares outstanding – basic 57,673   59,200   58,339   60,475 
                
    Earnings per share-assuming dilution:           
    Earnings per share$ 9.50  $9.26  $ 40.66  $38.47 
    Weighted-average common shares outstanding – assuming dilution  57,997   59,673    58,705   60,998 
     
    Note: The income statement for the year ended December 31, 2023, 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 SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
     
     For the Year Ended
     December 31, 
     2024  2023 
     (Unaudited) (Note)
    Operating activities:     
    Net income$ 2,386,680  $2,346,581 
    Adjustments to reconcile net income to net cash provided by operating activities:     
    Depreciation and amortization of property, equipment and intangibles  461,892   409,061 
    Amortization of debt discount and issuance costs  6,613   4,954 
    Deferred income taxes  (50,238)  48,232 
    Share-based compensation programs  28,931   27,511 
    Other  6,360   2,116 
    Changes in operating assets and liabilities:     
    Accounts receivable  30,495   (35,539)
    Inventory  (403,886)  (288,323)
    Accounts payable  421,364   207,061 
    Income taxes payable  (8,690)  33,889 
    Other  170,055   278,541 
    Net cash provided by operating activities  3,049,576   3,034,084 
          
    Investing activities:     
    Purchases of property and equipment  (1,023,387)  (1,006,264)
    Proceeds from sale of property and equipment  16,350   17,689 
    Return of (investment in) tax credit equity investments  1,490   (4,150)
    Other, including acquisitions, net of cash acquired  (161,258)  (3,211)
    Net cash used in investing activities  (1,166,805)  (995,936)
          
    Financing activities:     
    Proceeds from borrowings on revolving credit facility  30,000   3,227,000 
    Payments on revolving credit facility  (30,000)  (3,227,000)
    Net (payments) proceeds of commercial paper  (547,604)  746,789 
    Proceeds from the issuance of long-term debt  498,910   749,655 
    Principal payments on long-term debt    (300,000)
    Payment of debt issuance costs  (4,076)  (4,989)
    Payment of excise tax on share repurchases  (28,830)   
    Repurchases of common stock  (2,076,529)  (3,151,155)
    Net proceeds from issuance of common stock  128,981   91,316 
    Other  (569)  (354)
    Net cash used in financing activities  (2,029,717)  (1,868,738)
          
    Effect of exchange rate changes on cash  (1,941)  1,139 
    Net (decrease) increase in cash and cash equivalents  (148,887)  170,549 
    Cash and cash equivalents at beginning of the period  279,132   108,583 
    Cash and cash equivalents at end of the period$ 130,245  $279,132 
          
    Supplemental disclosures of cash flow information:     
    Income taxes paid$ 640,426  $315,060 
    Interest paid, net of capitalized interest  209,094   189,611 
     
    Note: The cash flow statement for the year ended December 31, 2023, 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 SUBSIDIARIES
    SELECTED FINANCIAL INFORMATION
    (Unaudited)
     
     For the Year Ended
     December 31, 
    Adjusted Debt to EBITDAR:2024 2023
    (In thousands, except adjusted debt to EBITDAR ratio)      
    GAAP debt$ 5,520,932 $5,570,125 
    Add:Letters of credit  127,310  112,163 
     Unamortized discount and debt issuance costs  29,068  30,775 
     Six-times rent expense  2,715,174  2,548,890 
    Adjusted debt$ 8,392,484 $8,261,953 
           
    GAAP net income$ 2,386,680 $2,346,581 
    Add:Interest expense  222,548  201,668 
     Provision for income taxes  658,384  658,169 
     Depreciation and amortization  461,892  409,061 
     Share-based compensation expense  28,931  27,511 
     Rent expense (i)  452,529  424,815 
    EBITDAR$ 4,210,964 $4,067,805 
           
    Adjusted debt to EBITDAR  1.99  2.03 
     
    (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, 2024 and 2023 (in thousands):
     

          

      For the Year Ended
      December 31, 
      2024 2023
    Total lease cost, per ASC 842 $543,495 $503,151
    Less:Variable non-contract operating lease components, related to property taxes and insurance  90,966  78,336
    Rent expense $452,529 $424,815


     December 31, 
     2024 2023
    Selected Balance Sheet Ratios:       
    Inventory turnover (1)  1.7  1.7
    Average inventory per store (in thousands) (2)$ 799 $757
    Accounts payable to inventory (3)  128.0%  130.8%


       For the Three Months Ended  For the Year Ended
       December 31,  December 31, 
       2024  2023 2024  2023
    Reconciliation of Free Cash Flow (in thousands):            
    Net cash provided by operating activities $ 624,487  $516,429 $ 3,049,576  $3,034,084
    Less:Capital expenditures   290,471   252,306   1,023,387   1,006,264
     Excess tax benefit from share-based compensation payments   4,827   8,098   39,871   35,950
     (Return of) investment in tax credit equity investments   (1,490)     (1,490)  4,150
    Free cash flow $ 330,679  $256,025 $ 1,987,808  $1,987,720


      For the Three Months Ended  For the Year Ended
      December 31,  December 31, 
      2024 2023 2024 2023
    Revenue Disaggregation (in thousands):           
    Sales to do-it-yourself customers$ 2,092,414 $1,993,233 $ 8,459,084 $8,248,213
    Sales to professional service provider customers   1,894,666  1,765,535   7,796,486  7,245,747
    Other sales, sales adjustments, and sales from the acquired Vast Auto stores   108,521  73,247   452,909  318,290
    Total sales $ 4,095,601 $3,832,015 $ 16,708,479 $15,812,250


     For the Three Months Ended  For the Year Ended
     December 31,  December 31, 
     2024 2023  2024 2023 
    Store Count:       
    Beginning domestic store count 6,187 6,063   6,095 5,929 
    New stores opened 78 33   170 169 
    Stores closed (1)  (3)
    Ending domestic store count 6,265 6,095   6,265 6,095 
            
    Beginning Mexico store count 78 48   62 42 
    New stores opened 9 14   25 20 
    Ending Mexico store count 87 62   87 62 
            
    Beginning Canada store count 26     
    Stores acquired    23  
    New stores opened    3  
    Ending Canada store count 26    26  
            
    Total ending store count 6,378 6,157   6,378 6,157 


        
        
            
                
                
                
                
                
     
     
     
     
     
     
     
     
     For the Three Months Ended  For the Year Ended
        
        
            
                
                
                
                
                
     
     
     
     
     
     
     
     
     December 31,  December 31, 
        
        
            
                
                
                
                
                
     
     
     
     
     
     
     
     
     2024 2023 2024 2023
        
        
            
                
                
                
                
                
     
     
     
     
     
     
     
     
    Store and Team Member Information:           
        
        
            
                
                
                
                
                
     
     
     
     
     
     
     
     
    Total employment  93,176  90,189      
        
        
            
                
                
                
                
                
     
     
     
     
     
     
     
     
    Square footage (in thousands) (4)  48,809  46,681      
        
        
            
                
                
                
                
                
     
     
     
     
     
     
     
     
    Sales per weighted-average square foot (4)(5)$ 82.70 $81.06 $ 342.32 $340.23
        
        
            
                
                
                
                
                
     
     
     
     
     
     
     
     
    Sales per weighted-average store (in thousands) (4)(6)$ 642 $619 $ 2,642 $2,578
        
        
            
                
                
                
                
                
     
     
     
     
     
     
     
     
     
        
        
            
                
                
                
                
                
     
     
     
     
     
     
     
     
    (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) Represents O’Reilly’s U.S. and Puerto Rico operations only.
        
        
            
                
                
                
                
                
     
     
     
     
     
     
     
     
    (5) 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.
        
        
            
                
                
                
                
                
     
     
     
     
     
     
     
     
    (6) 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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