O'Reilly Auto Parts 2008 Annual Report Download - page 5

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We are excited by the addition of CSK’s outstanding
team and we will instill the O’Reilly Culture to team
members in each of our new stores, DCs and offices.
In addition to our growth through acquisitions,
we continue a robust new store growth program,
only partially scaled back in light of the major capital
commitments and management focus required to
successfully execute the integration of CSK. After
opening 190 stores in 2007, we have reduced our new
store openings in 2008 to 150 and expect to open
another 150 new stores in 2009. To support this new
store growth, we opened the Lubbock, Texas DC in
2008, which is also being leveraged to support acquired
CSK stores in El Paso and New Mexico, and we will
open the Greensboro, North Carolina DC in 2009 to
continue our expansion into the Mid-Atlantic states.
As we look forward to 2009, it appears the strong
economic headwinds we are currently experiencing
will not soon abate; however, we remain excited about
the potential to significantly enhance the performance
of the acquired CSK stores, and we remain confident
in our ability to continue to gain market share in our
existing markets by focusing on the core O’Reilly
values of customer service and expense control.
Sincerely,
CSK AQUISITION FACTORS
MARKET LEADING
AUTO PARTS
RETAILER
With very little overlap
in O’Reilly’s and CSK’s
geographical footprints,
this merger provides an
exceptional opportunity to
augment CSK’s strong retail
presence by incorporating
O’Reilly’s installer customer
expertise, while also
providing more tools for
CSK to emerge as a more
competitive retailer.
NATIONAL
PLATFORM
By joining two large industry
leaders, the combined
company will benet from
increased brand recognition
and increased advertising
synergies. Additionally,
many proven customer
programs will offer nation-
wide advantages to
both our DIY and DIFM
customer base.
ENHANCE CSK’S
OPERATIONS
O’Reilly’s proven operating
model of overnight
replenishment (multiple
daily deliveries metropolitan
hub and spoke stores) and
a strong performance-based
sales and operations model,
will create positive results
for our team members
and customers.
COST SAVINGS
OPPORTUNITY
In addition to leveraging
increased purchasing
power for automotive
parts, tools and equipment,
the combined company
will achieve substantial
savings through improved
administrative efficiencies.
1234
EXPERIENCED
MANAGEMENT TEAM
Our executive management team has more
than 190 years of combined experience
in the automotive aftermarket industry.
Their goal is to continue to strengthen the
power of the O’Reilly brand by building on
the proven results and business model we
started with our first store in 1957.
Seated: Greg Henslee, David O’Reilly, Ted Wise;
Standing: Jeff Shaw, Greg Johnson, Mike Swearengin,
Tom McFall
GREG HENSLEE
Chief Executive Ofcer
and Co-President
TED WISE
Chief Operating Ofcer
and Co-President
TOM MCFALL
Chief Financial Ofcer
and Executive Vice
President
ROAD TESTED. RESULTS DRIVEN.
O’REILLY AUTOMOTIVE 2008 ANNUAL REPORT PG.3