O'Reilly Auto Parts 2013 Annual Report Download - page 46

FORM 10-K
40
to pass along these increased costs through higher retail prices for the affected products. As a result, we do not believe inflation has had
a material adverse effect on our operations.
To some extent, our business is seasonal primarily as a result of the impact of weather conditions on customer buying patterns. While
we have historically realized operating profits in each quarter of the year, our store sales and profits have historically been higher in the
second and third quarters (April through September) than in the first and fourth quarters (October through March) of the year.
QUARTERLY RESULTS
The following table sets forth certain quarterly unaudited operating data for fiscal 2013 and 2012. 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.
Fiscal 2013
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
(In thousands, except per share and comparable store sales data)
Comparable store sales 0.6% 6.5% 4.6% 5.4%
Sales $ 1,585,009 $ 1,714,969 $ 1,728,025 $ 1,621,234
Gross profit 798,663 871,875 879,163 819,300
Operating income 251,084 296,261 300,380 255,760
Net income 154,329 177,127 186,489 152,347
Earnings per share – basic (1) $ 1.38 $ 1.61 $ 1.72 $ 1.43
Earnings per share – assuming dilution (1) $ 1.36 $ 1.58 $ 1.69 $ 1.40
Fiscal 2012
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
(In thousands, except per share and comparable store sales data)
Comparable store sales 6.1% 2.5% 1.3% 4.2%
Sales $ 1,529,392 $ 1,562,849 $ 1,601,558 $ 1,488,385
Gross profit 761,680 779,861 805,493 750,384
Operating income 247,501 243,603 263,318 222,971
Net income 147,492 146,120 159,332 132,802
Earnings per share – basic (1) $ 1.16 $ 1.17 $ 1.34 $ 1.16
Earnings per share – assuming dilution (1) $ 1.14 $ 1.15 $ 1.32 $ 1.14
(1) Earnings per share amounts are computed independently for each quarter and annual period. The quarterly earnings per share amounts may not
sum to equal the full-year earnings per share.
RECENT ACCOUNTING PRONOUNCEMENTS
In July of 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss
Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (“ASU 2013-11”). Under ASU 2013-11, an entity is required
to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a
deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. If a net operating loss
carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should
be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU 2013-11 is effective
for fiscal years, and interim periods within those years, beginning after December 15, 2013. We will adopt this guidance beginning
with our first quarter ending March 31, 2014; the application of this guidance affects presentation only and, therefore, it is not expected
to have a material impact on our consolidated financial condition, results of operations or cash flows.