O'Reilly Auto Parts 2012 Annual Report Download - page 7

TO OUR SHAREHOLDERS:
On behalf of Team O’Reilly, it is a privilege to present outstanding
results for 2012, our fourth straight year of 25% or greater
adjusted earnings per share growth and our 20th consecutive
year of positive comparable store sales performance and record
operating income results since becoming a public company in
1993. Once again, our growth and success is the direct result
of our hard-working and dedicated Team Members who are
committed to providing unsurpassed levels of service to our
customers every day. Without their relentless focus on taking
care of every customer who calls or walks into our stores, we
could not have achieved our record-breaking results, and we
would like to thank each of our 53,000 Team Members for their
contributions to our continued success.
We began 2012, as we do every year, with our annual Managers’
Conference, where we had the opportunity to gather over
5,000 of our operations and sales team leaders together in one
place for three days of training, planning and Culture building
activities. Our conference theme was “O’Reilly Pride Is Alive
at 55” and that pride was on display during this forum where
we recognized our Company’s top performers, expressed our
appreciation to our managers for their ongoing commitment to
our success, provided training focused on providing even better
customer service and received feedback from our managers
on ways to continually improve upon our proven Dual Market
Strategy (our process of focusing equally on building and
maintaining relationships with both the do-it-yourself retail and
the do-it-for-me professional service provider customers). Most
importantly, our annual Managers’ Conference is an opportunity
to reinforce our fundamental Culture Values, which have been
the backbone of our success since the Company was formed in
1957. The high-energy conference was a tremendous success,
and our management team left fired up to execute our growth
plan and profitably grow market share.
Growing Market Share
The engine that will continue to drive our profitable growth,
and our number one priority as a Company, is our consistent,
unsurpassed customer service to both do-it-yourself and
professional service provider customers. Our relentless focus
on executing our proven Dual Market Strategy during 2012
generated a 3.8% increase in comparable store sales, which
was on top of a strong 4.6% increase in comparable store sales
during 2011 and a very robust 8.8% increase in comparable
store sales during 2010. Our top-line growth, delivered year after
year, is a testament to the strength of our team and a reflection
of our focus on customer service. We refuse to rest on our past
accomplishments and continually evaluate our competitive
position on a store-by-store basis, aggressively looking for ways
to enhance our customer service. Key initiatives we implemented
during 2012, aimed at improving upon our high levels of
customer service, included:
• The investment of over $150 million in inventory, all
positioned closest to our customers in our stores, improving
our already outstanding in-stock positions;
• The rollout of our proprietary, enhanced electronic catalog
to all our stores, allowing our parts professionals to more
quickly and easily respond to customer needs;
• An increase in the number of HUB stores in our service
network, augmenting our already robust distribution network
of 24 regional distribution centers and over 200 existing HUB
stores; and
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O’REILLY AUTOMOTIVE 2012 ANNUAL REPORT
O’Reilly is dedicated to serving the needs of both DIY and
professional service provider customers. Our proven Dual
Market Strategy continues to set us apart from our competitors
and is key to our ongoing success. Our stores are staffed
with well-trained and technically proficient Team Members
dedicated to providing unsurpassed levels of customer service.
Our professional sales team of regional and territory sales
managers enhance the service provided by our experienced
in-store sales specialists and are responsible for establishing
and maintaining strong business partnerships with profes-
sional service provider customers to ensure O’Reilly is their
First Call for all auto parts needs.
Proven Dual Market Strategy
12 Our 12 Culture Values include: Commitment,
Dedication, Enthusiasm, Excellent Customer
Service, Expense Control, Hard Work, Honesty,
Professionalism, Respect, Safety, Teamwork
and Win-Win Attitude.