O'Reilly Auto Parts 2000 Annual Report Download - page 5

2000 AR
3
allows more specific inventory customization
focusing on improving turnover and return
on investment for our shareholders. Con-
sequently, the list of improvements completed
in 2000 and those rolling out in 2001 is
extensive, but one improvement that is very
significant is the establishment of a Company
Intranet. This will have a huge impact on our
productivity, allowing our stores to operate
nearly paperless by utilizing various electronic
forms and reports. Immediate access to a
wealth of information through the Intranet
will allow the stores to carry out their
responsibilities much more efficiently, thereby
allowing our managers and team members
to focus more on customer service.
With product sales of $890 million in
2000, we are anxiously pursuing our goal
of over $1 billion in revenue in 2001. Our
commitment to our shareholders is focused
more than ever on operating efficiently
and, therefore, at better operating margins.
We are very proud of achieving an operating
margin in excess of 10% in 2000, and
have set our goal at 11% for 2001. This is
aggressive but attainable if we collectively
execute our plan. With over 11,000 O’Reilly
team members, we have placed a priority on
developing them, knowing that to function
at our highest level, we must acknowledge
the tremendous value that each and every
individual brings to our effort. We truly
embrace the philosophy that a “happy
team” will make for satisfied customers.
Our plans for 2001 include continued
growth, combining approximately 120 new
store installations with existing progress
toward increased same-store sales growth
in the mid single-digit level. With these two
concepts, we hope to grow our top-line
revenues by 18% or more and our operating
profits by more than that with increased
efficiencies in our operations. No additional
DCs will be needed in 2001 to accomplish
these objectives; therefore, we fully plan
to leverage our existing investment in
distribution throughout the upcoming year.
Many new enhancements to our store
displays and merchandising plans will
continue to make O’Reilly a leading-edge
shopping experience. We will, as always,
focus our efforts on the commercial or
professional service technician segment,
which requires a very experienced and
informed staff in our stores. Our plan is to
stay tuned to our “dual market strategy,”
with approximately 50% of our sales to
the professional installer and 50% to the
do-it-yourself (“DIY”) or retail trade. We
feel this combination of business is right
for O’Reilly and allows us to differentiate
ourselves in product offering, professional
service to our customers and knowledgeable
team members who are DRIVEN to succeed.
In conclusion, we believe 2001 will be an
excellent year with many challenges.
We are very prepared to meet the high
expectations our shareholders have grown
to expect from Team O’Reilly.
Charlie O’Reilly
Vice Chairman
of the Board
David O’Reilly
Chief Operating
Officer &
Co-Chairman
of the Board
Larry O’Reilly
Chief Operating
Officer &
Co-Chairman
of the Board
Rosalie O’Reilly-Wooten
Executive Vice
President
Ted F. Wise
Co-President
Greg Henslee
Co-President
Second O’Reilly Auto
Parts store opened.
1965
Sales: $2.2 million.
1967
Charles H. “Charlie” O’Reilly, Jr.
joins the Company.
1963