O'Reilly Auto Parts 2014 Annual Report Download - page 9

Download and view the complete annual report

Please find page 9 of the 2014 O'Reilly Auto Parts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 90

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90

FORM 10-K
Forward-Looking Statements
We claim the protection of the safe-harbor for forward-looking statements within the meaning of the Private Securities Litigation Reform
Act of 1995. You can identify these statements by forward-looking words such as "estimate," "may," "could," "will," "believe," "expect,"
"would," "consider," "should," "anticipate," "project," "plan," "intend" or similar words. In addition, statements contained within this
annual report that are not historical facts are forward-looking statements, such as statements discussing among other things, expected
growth, store development, integration and expansion strategy, business strategies, future revenues and future performance. These
forward-looking statements are based on estimates, projections, beliefs and assumptions and are not guarantees of future events and
results. Such statements are subject to risks, uncertainties and assumptions, including, but not limited to, the economy in general, inflation,
product demand, the market for auto parts, competition, weather, risks associated with the performance of acquired businesses, our ability
to hire and retain qualified employees, consumer debt levels, our increased debt levels, credit ratings on public debt, governmental
regulations, terrorist activities, war and the threat of war. Actual results may materially differ from anticipated results described or implied
in these forward-looking statements. Please refer to the "Risk Factors" section of this annual report on Form 10-K for the year ended
December 31, 2014, for additional factors that could materially affect our financial performance. Forward-looking statements speak only
as of the date they were made and we undertake no obligation to publicly update any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by applicable law.
PART I
Item 1. Business
GENERAL INFORMATION
O'Reilly Automotive, Inc. and its subsidiaries, collectively "we," "O'Reilly," or the "Company," is one of the largest specialty retailers
of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States, selling our products to both do-it-yourself
("DIY") and professional service provider customers, our "dual market strategy". The business was founded in 1957 by Charles F. O'Reilly
and his son, Charles H. ''Chub'' O'Reilly, Sr. and initially operated from a single store in Springfield, Missouri. Our common stock has
traded on The NASDAQ Global Select Market under the symbol "ORLY" since April 22, 1993.
At December 31, 2014, we operated 4,366 stores in 43 states. Our stores carry an extensive product line, including the products identified
below:
• new and remanufactured automotive hard parts, such as alternators, starters, fuel pumps, water pumps, brake system components,
batteries, belts, hoses, temperature control, chassis parts and engine parts;
• maintenance items, such as oil, antifreeze, fluids, filters, wiper blades, lighting, engine additives and appearance products; and
• accessories, such as floor mats, seat covers and truck accessories.
Our stores offer many enhanced services and programs to our customers, such as those identified below:
• used oil, oil filter and battery recycling
• battery, wiper and bulb replacement
• battery diagnostic testing
• electrical and module testing
• check engine light code extraction
• loaner tool program
• drum and rotor resurfacing
• custom hydraulic hoses
• professional paint shop mixing and related materials
• machine shops
See the "Risk Factors" section of Item 1A of this annual report on Form 10-K for a description of certain risks relevant to our business.
These risk factors include, among others, deteriorating economic conditions, competition in the automotive aftermarket business, our
sensitivity to regional economic and weather conditions, future growth assurance, our dependence upon key and other personnel, our
relationships with key suppliers and availability of key products, our acquisition strategies, complications in our distribution centers
("DCs"), failure to achieve high levels of services and products, unanticipated fluctuations in our quarterly results, the volatility of the
market price of our common stock, our increased debt levels, a downgrade in our credit ratings, data security, and environmental legislation
and other regulations.
2