O'Reilly Auto Parts 2010 Annual Report Download - page 34

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PART II
Item 5. Market For Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity
Securities
The Company’s stock is traded on The NASDAQ Global Select Market (“Nasdaq”) under the symbol “ORLY”. As of February 21,
2011, O’Reilly Automotive, Inc. had approximately 86,000 shareholders based on the number of holders of record and an estimate of
individual participants represented by security position listings. The Company’s common stock began trading on April 22, 1993; no
cash dividends have been declared since that time, and we do not anticipate paying any cash dividends in the foreseeable future.
The prices in the following table represent the high and low sales price for O’Reilly Automotive, Inc. common stock as reported by
Nasdaq. During fiscal 2010, the Company made no purchases or repurchases of its common stock.
2010 2009
High Low High Low
First Quarter $ 43.00 $ 37.73 $ 35.63 $ 27.00
Second Quarter 51.40 41.61 38.85 35.08
Third Quarter 54.07 46.07 42.22 36.14
Fourth Quarter 63.04 52.84 40.26 33.68
For the Year 63.04 37.73 42.22 27.00
The graph below shows the cumulative total stockholder return assuming the investment of $100, on December 31, 2005, and the
reinvestment of dividends thereafter, in the Company’s common stock versus the Nasdaq Retail Trade Stocks Total Return Index,
Nasdaq United States Stock Market Total Returns Index and the Standard and Poor’s S&P 500 Index (“S&P 500”).
For the Years Ended December 31,
Company/Index 2005 2006 2007 2008 2009 2010
O'Reilly Automotive, Inc. $ 100 $ 100 $ 101 $ 96 $ 119 $ 189
Nasdaq Retail Trade Stocks 100 109 99 69 96 121
Nasdaq US 100 110 119 57 82 98
Standard and Poor's S&P 500 100 116 122 77 97 112
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Item 6. Selected Financial Data
The table below compares the Company’s selected financial data over a ten-year period. In 2001, 2005 and 2008, the Company
acquired Mid-State Automotive Distributors, Midwest Auto Parts Distributors and CSK Auto Corporation, respectively. The 2001
Mid-State acquisition added 82 stores, the 2005 Midwest acquisition added 72 stores and the 2008 CSK acquisition added 1,342 stores
to the O’Reilly store count. Financial results for these acquired companies have been included in the Company’s consolidated
financial statements from the dates of the acquisitions forward.
Years ended December 31, 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
(In thousands, except per
share data)
INCOME STATEMENT
DATA:
Sales $ 5,397,525 $ 4,847,062 $ 3,576,553 $ 2,522,319 $ 2,283,222 $ 2,045,318 $ 1,721,241 $ 1,511,816 $ 1,312,490 $ 1,092,112
Cost of goods sold, including
warehouse and distribution
expenses 2,776,533 2,520,534 1,948,627 1,401,859 1,276,511 1,152,815 978,076 873,481 759,090 624,294
Gross profit 2,620,992 2,326,528 1,627,926 1,120,460 1,006,711 892,503 743,165 638,335 553,400 467,818
Selling, general and
administrative expenses 1,887,316 1,788,909 1,292,309 815,309 724,396 639,979 552,707 473,060 415,099 353,987
Legacy CSK DOJ
investigation settlement 20,900 - - - - - - - - -
Operating income 712,776 537,619 335,617 305,151 282,315 252,524 190,458 165,275 138,301 113,831
Gain on settlement of note
receivable 11,639 - - - - - - - - -
Other income (expense), net (35,042) (40,721) (33,085) 2,337 (50) (1,455) (2,721) (5,233) (7,319) (7,104)
Total other income (expense) (23,403) (40,721) (33,085) 2,337 (50) (1,455) (2,721) (5,233) (7,319) (7,104)
Income before income taxes
and cumulative effect of
accounting change 689,373 496,898 302,532 307,488 282,265 251,069 187,737 160,042 130,982 106,727
Provision for income taxes 270,000 189,400 116,300 113,500 104,180 86,803 70,063 59,955 48,990 40,375
Income before cumulative
effect of accounting change 419,373 307,498 186,232 193,988 178,085 164,266 117,674 100,087 81,992 66,352
Cumulative effect of
accounting change, net of tax
(a) - - - - - - 21,892 - - -
Net income $ 419,373 $ 307,498 $ 186,232 $ 193,988 $ 178,085 $ 164,266 $ 139,566 $ 100,087 $ 81,992 $ 66,352
BASIC EARNINGS PER
COMMON SHARE:
Income before cumulative
effect of accounting change $ 3.02 $ 2.26 $ 1.50 $ 1.69 $ 1.57 $ 1.47 $ 1.07 $ 0.93 $ 0.77 $ 0.64
Cumulative effect of
accounting change (a) - - - - - - 0.20 - - -
Earnings per share – basic $ 3.02 $ 2.26 $ 1.50 $ 1.69 $ 1.57 $ 1.47 $ 1.27 $ 0.93 $ 0.77 $ 0.64
Weighted-average common
shares outstanding – basic 138,654 136,230 124,526 114,667 113,253 111,613 110,020 107,816 106,228 104,242
EARNINGS PER
COMMON SHARE-
ASSUMING DILUTION:
Income before cumulative
effect of accounting change $ 2.95 $ 2.23 $ 1.48 $ 1.67 $ 1.55 $ 1.45 $ 1.05 $ 0.92 $ 0.76 $ 0.63
Cumulative effect of
accounting change (a) - - - - - - 0.20 - - -
Earnings per share –
assuming dilution $ 2.95 $ 2.23 $ 1.48 $ 1.67 $ 1.55 $ 1.45 $ 1.25 $ 0.92 $ 0.76 $ 0.63
Weighted-average common
shares outstanding –
assuming dilution 141,992 137,882 125,413 116,080 115,119 113,385 111,423 109,060 107,384 105,572
PRO FORMA INCOME
STATEMENT DATA: (b)
Sales $ 1,511,816 $ 1,312,490 $ 1,092,112
Cost of goods sold, including
warehouse and distribution
expenses
872,658 754,844 618,217
Gross profit 639,158 557,646 473,895
Selling, general and
administrative expenses 473,060 415,099 353,987
Operating income 166,098 142,547 119,908
Other income (expense), net (5,233) (7,319) (7,104)
Income before income taxes 160,865 135,228 112,804
Provision for income taxes 60,266 50,595 42,672
Net income $ 100,599 $ 84,633 $ 70,132
Net income per share $ 0.93 $ 0.8 $ 0.67
Net income per share –
assuming dilution $ 0.92 $ 0.79 $ 0.66
(a) The cumulative change in accounting method, effective January 1, 2004, changed the method of applying last-in, first-out accounting policy for certain
inventory costs. Under the new method, included in the value of inventory are certain procurement, warehousing and distribution center costs. The previous
method was to recognize those costs as incurred, reported as a component of costs of goods sold.
(b) The pro forma income statement reflects the retroactive application of the cumulative effect of the accounting change to historical periods.
FORM 10-K