O'Reilly Auto Parts 2011 Annual Report Download - page 14

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Forward-Looking Statements
We claim 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 ―expect,‖ ―believe,‖ ―anticipate,‖ ―should,‖
―plan,‖ ―intend,‖ ―estimate,‖ ―project,‖ ―will‖ or similar words. In addition, statements contained within this annual report 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, competition, product demand, the market
for auto parts, the economy in general, inflation, consumer debt levels, governmental regulations, our increased debt levels, credit
ratings on public debt, our ability to hire and retain qualified employees, risks associated with the performance of acquired businesses
such as CSK Auto Corporation, weather, 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 this annual
report on Form 10-K for the year ended December 31, 2011, for additional factors that could materially affect our financial
performance. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information,
future events or otherwise.
PART I
Item 1. Business
GENERAL INFORMATION
O'Reilly Automotive, Inc. and its subsidiaries, collectively ―we‖, ―O’Reilly‖ or the ―Company‖, is one of the largest specialty retailers
of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States, selling our products to both do-it-
yourself (―DIY‖) customers and professional service providers, our ―dual market strategy‖. O’Reilly Automotive, Inc. incorporated in
1957 as a corporation, was founded by Charles F. O'Reilly and his son, Charles H. ''Chub'' O'Reilly, Sr. and initially operated from a
single store in Springfield, Missouri. Our common stock has traded on The NASDAQ Global Select Market under the symbol
―ORLY‖ since April 22, 1993.
On December 29, 2010, we completed a corporate reorganization creating a holding company structure, which was implemented
through an agreement and plan of merger under Section 351.448 of The General Corporation Law of the State of Missouri, which did
not require a vote of the shareholders. As a result of this reorganization, the previous parent company and registrant, O’Reilly
Automotive, Inc., was renamed O’Reilly Automotive Stores, Inc. and is now a wholly-owned subsidiary of the new parent company
and registrant, which was renamed O’Reilly Automotive, Inc.
On July 11, 2008, we completed our most recent acquisition, CSK Auto Corporation (―CSK‖), which was one of the largest specialty
retailers of auto parts and accessories in the Western United States and one of the largest such retailers in the United States, based on
store count at the date of acquisition. At the date of the acquisition, CSK had 1,342 stores in 22 states, operating under four brand
names: Checker Auto Parts, Schuck’s Auto Supply, Kragen Auto Parts and Murray’s Discount Auto Parts. The results of CSK’s
operations have been included in our consolidated financial statements since the acquisition date.
At December 31, 2011, we operated 3,740 stores in 39 states. Our stores carry an extensive product line, including the products
identified below:
new and remanufactured automotive hard parts, such as alternators, starters, fuel pumps, water pumps, brake system components,
batteries, belts, hoses, temperature control, chassis parts and engine parts;
maintenance items, such as oil, antifreeze, fluids, filters, wiper blades, lighting, engine additives and appearance products; and
accessories, such as floor mats, seat covers and truck accessories.
Our stores offer many enhanced services and programs to our customers, such as those identified below:
used oil and battery recycling
battery diagnostic testing
electrical and module testing
loaner tool program
drum and rotor resurfacing
custom hydraulic hoses
professional paint shop mixing and related materials
machine shops
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FORM 10-K