O'Reilly Auto Parts 2002 Annual Report Download - page 9

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2002 Annual Report 7
LETTER TO OUR SHAREHOLDERS
DAVID O’REILLY
CHIEF EXECUTIVE
OFFICER
& CO-CHAIRMAN
OF THE BOARD
LARRY O’REILLY
CHIEF OPERATING
OFFICER
& CO-CHAIRMAN
OF THE BOARD
TED F. WISE
CO-PRESIDENT
GREG HENSLEE
CO-PRESIDENT
In 1957 C.F. and Chub O’Reilly opened the first O’Reilly Auto Parts store in
Springfield, Mo. With the help of 10 original team members, first year sales were
$700,000. Now, 45 years later, O’Reilly Auto Parts has nearly 1,000 stores in 16
states, over 14,000 team members and overnight service on over 100,000 inventory
items from nine distribution centers. Over the years much has changed, but the
O’Reilly Culture remains the same. Excellent customer service from our professional
parts people, our dual market strategy, broad inventory coverage and strategic
distribution systems are the key components to our competitive advantage.
We have worked very hard this year to reach our goals. We opened 106
new stores, increasing our store count to 981 in 16 contiguous states. We broke
ground on our 10th distribution center in Saraland, Alabama, which is scheduled to open
in mid-2003. This facility will allow expansion in the former Mid-State market areas.
Financial performance remained strong in 2002 with product sales of $1.31
billion, a 20.2% increase, a 10.6% operating margin and net income growth of
23.6%. After reaching our goal of $1 billion in sales a year ahead of schedule in
2001, we now have our sights set on $2 billion. “Two Four Your Future” (2-4 Your
Future) is our slogan for reaching $2 billion in sales within the next four years.
Achieving this goal will provide further growth and opportunity for our team
members and shareholders. This goal is challenging, yet attainable with a strong
commitment and focus from Team O’Reilly.
We look forward to 2003 with enthusiasm. We will continue to run our
business with integrity and honesty as we have since 1957. The values of the
O’Reilly Culture will guide us through the coming years. Thanks to all of our customers,
shareholders and team members for your continued confidence and support.