O'Reilly Auto Parts 2005 Annual Report Download - page 13

throughout 2006 as we relocate or renovate stores based
upon our evaluation of market size, store location and
competition. We also will complete the changeovers of the
product lines in the Midwest stores which will allow us to
serve our customers with a better merchandise assortment.
We also are planning to roll out our new point of sale
computer system which will allow our team members to
more efficiently process customer transactions and speed up
team member training.
Our team excelled in meeting numerous challenges in
2005 by living the O’Reilly Culture, which serves as the
theme for this year’s Annual Report. This was never more
evident than in the response by Team O’Reilly to the
difficult circumstances created by the Gulf Coast hurricanes.
With our team beside us, we are excited about the prospects
for 2006. We continue to be encouraged by the fundamentals
and prospects for our industry and are confident in our
growth opportunities in existing and expansion markets.
As we continue to strive toward our goal of being the
dominant supplier of auto parts in our market areas, our
key advantage will be the culture that was established by
our founders almost 50 years ago. This culture has been
fostered ever since those beginnings and is at the heart
of everything we do as we “Live Green.”
expansion. Midwest’s operations have also proven to
be a complement to our business model. Midwest had
a track record of success in customer service to both the
professional installer and the do-it-yourselfer. This is
directly in line with our proven dual market strategy.
We have been exceptionally pleased with the high degree
of dedication and professionalism that characterize the
Midwest team members. We are extremely fortunate
to have added these team members to our ranks of
Professional Parts People.
In addition to the 72 stores added in the acquisition
of Midwest Auto Parts, we opened 149 new stores in 2005
primarily in the Southeast and Texas. We continued to
expand the most extensive distribution network in the
industry with the addition of Midwest’s distribution
centers in St. Paul, Minnesota and Billings, Montana and
the opening of our distribution center in Atlanta, Georgia.
Building upon our proven and industry-leading
growth model, we are planning continued aggressive
growth in 2006. We have established a goal to open 170 to
175 new stores in 2006 and will open our 14th distribution
center, a 405,000 square foot facility in Indianapolis,
Indiana. Our integration efforts with Midwest will continue
0
0.25
0.5
0.75
1.0
1.25
1.5
1.75
2.0
$ 2.25
95 96 97 98 99 00 01 02 03 04 05
11
O’REILLY AUTOMOTIVE 2005 ANNUAL REPORT
A mix of quality inventory and value pricing matched with our Professional
Parts People lets our customers trust in their local O'Reilly store for all of
their car care needs. This relationship created by our team members has
resulted in us reaching our long-time goal of $2 billion in sales for 2005.
product sales
(in billions)
In 2005, we added 221 net, new stores which includes 72 stores we
acquired through the acquisition of Midwest Auto Parts Distributors, Inc.,
which was headquartered in St. Paul, Minnesota.
total number of stores
95 96 97 98 99 00 01 02 03 04 05
1,500
1,350
1,200
1,050
900
750
600
450
150
0
300
David O’Reilly
Chairman of the Board
Greg Henslee
Chief Executive Officer and
Co-President
Ted Wise
Chief Operating Officer and
Co-President
Jim Batten
Executive Vice President
of Finance and Chief
Financial Officer