O'Reilly Auto Parts 2011 Annual Report Download - page 38

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(the ―ABL Credit Facility‖), pay fees and expenses related to the offering and for general corporate purposes. Concurrent
with the issuance of the 4.875% Senior Notes due 2021, we entered into a 5-year credit agreement for a $750 million
unsecured revolving credit facility (the ―Revolving Credit Facility‖) arranged by Bank of America (―BA‖) and Barclays
Capital to provide additional financial flexibility. All remaining debt issuance costs related to our previous ABL Credit
Facility, totaling $22 million were written off, and all interest rate swap agreements related to notional amounts under the
ABL Credit Facility, with a carrying value of $4 million, were terminated and charged to earnings as one-time, non-recurring
items upon the repayment and retirement of the ABL Credit Facility in January of 2011, which is included in ―Other income
(expense)‖ on the accompanying Consolidated Statements of Income.
On September 9, 2011, we amended our Revolving Credit Facility with BA, which decreased the facility to $660 million and
reduced the fees and interest rate margins for borrowings under our Revolving Credit Facility. The amendment also extended
the maturity of our Revolving Credit Facility to September of 2016. In conjunction with the amendment to our Revolving
Credit Facility, we recognized a one-time charge related to the modification to the credit facility in the amount of $0.3
million, which is included in ―Other income (expense)‖ on the accompanying Consolidated Statements of Income.
On September 19, 2011, we issued $300 million aggregate principal amount of unsecured 4.625% Senior Notes due 2021
(―4.625% Senior Notes due 2021‖) in the public market with UMB as trustee, which were guaranteed by the Subsidiary
Guarantors. The 4.625% Senior Notes due 2021 were issued at 99.826% of their face value and will mature on September
15, 2021. The proceeds from the issuance of the 4.625% Senior Notes due 2021 were used to pay fees and expenses related
to the offering, with the remainder for general corporate purposes, including share repurchases.
RESULTS OF OPERATIONS
The following table includes income statement data as a percentage of sales for the years ended December 31, 2011, 2010 and 2009:
Sales 100.0 % 100.0 % 100.0 %
Cost of goods sold, including warehouse and distribution expenses 51.0 51.4 52.0
Gross profit 49.0 48.6 48.0
Selling, general and administrative expenses 34.1 35.0 36.9
Former CSK officer clawback (0.1) - -
Legacy CSK DOJ investigation charge - 0.4 -
Operating income 15.0 13.2 11.1
Interest expense (0.5) (0.7) (0.9)
Interest income 0.1 - -
Write-off of asset-based revolving credit facility debt issuance costs (0.4) - -
Termination of interest rate swap agreements (0.1) - -
Gain on settlement of note receivable - 0.2 -
Other income, net - 0.1 0.1
Income before income taxes 14.1 12.8 10.3
Provision for income taxes 5.3 5.0 4.0
Net income 8.8 % 7.8 % 6.3 %
2011
2010
2009
2011 Compared to 2010
Sales:
Sales for the year ended December 31, 2011, increased $391 million to $5.79 billion from $5.40 billion for the same period one year
ago, representing an increase of 7.2%. Comparable store sales for stores open at least one year increased 4.6% and 8.8% for the years
ended December 31, 2011 and 2010, respectively. Comparable store sales are calculated based on the change in sales of stores open at
least one year and exclude sales of specialty machinery, sales to independent parts stores and sales to Team Members.
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FORM 10-K