O'Reilly Auto Parts 2003 Annual Report Download - page 35

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management’s discussion and analysis
of financial condition and results of operations (continued)
contractual obligations
Our contractual obligations, including commitments for future payments under non-cancelable lease arrangements and short- and
long-term debt arrangements, are summarized below and are fully disclosed in Notes 5 and 6 to the consolidated financial statements.
payments due by period
less than 2-3 4-5 after 5
(In thousands) total1 year years years years
contractual obligations:
Notes payable $ 17 $ 12 $ 5 $ – $ –
Long-term debt 120,064 13 95,029 25,022 –
Capital lease obligations 1,821 900 921 – –
Operating leases 321,282 32,671 58,200 48,191 182,220
Total contractual cash obligations $443,184 $33,596 $154,155 $73,213 $182,220
We believe that our existing cash and cash equivalents, cash expected to be provided by operating activities, available bank credit
facilities and trade credit will be sufficient to fund both our short- and long-term capital needs for the foreseeable future.
inflation and seasonality
We succeeded, in many cases, in reducing the effects of merchandise cost increases principally by taking advantage of vendor incentive
programs, economies of scale resulting from increased volume of purchases and selective forward buying. As a result, we do not
believe that our operations have been materially affected by inflation.
Our business is somewhat seasonal, primarily as a result of the impact of weather conditions on store sales. Store sales and profits have
historically been higher in the second and third quarters (April through September) of each year than in the first and fourth quarters.
quarterly results
The following table sets forth certain quarterly unaudited operating data for fiscal 2003 and 2002. The unaudited quarterly information
includes all adjustments which management considers necessary for a fair presentation of the information shown.
The unaudited operating data presented below should be read in conjunction with our consolidated financial statements and related
notes included elsewhere in this annual report, and the other financial information included therein.
page 33