FOR IMMEDIATE RELEASE
O’REILLY AUTOMOTIVE, INC. REPORTS FOURTH QUARTER AND
FULL-YEAR 2018 RESULTS
4th quarter comparable store sales increase of 3.3%, full-year increase of 3.8%
27% increase in full-year diluted EPS to $16.10
Full-Year net cash provided by operating activities increased 23%
Springfield, MO, February 6, 2019 – O’Reilly Automotive, Inc. (the “Company” or “O’Reilly”) (Nasdaq: ORLY), a leading retailer in the automotive aftermarket industry, today announced record revenues and earnings for its fourth quarter and full year ended December 31, 2018. The results represent 26 consecutive years of comparable store sales growth and record revenue and operating income for O’Reilly since becoming a public company in April of 1993.
4th Quarter Financial Results
Greg Johnson, O’Reilly’s CEO and Co-President, commented, “We are pleased to once again report another profitable quarter and a solid finish to 2018. Team O’Reilly’s commitment to excellent customer service drove a 3.3% increase in fourth quarter comparable store sales, which was above the mid-point of our guidance range. Our solid top-line performance, combined with our relentless focus on profitable growth, resulted in a 6% increase in operating profit dollars for the fourth quarter. As a reminder, our fourth quarter 2017 results included a one-time $0.62 benefit to diluted earnings per share from the revaluation of the Company’s deferred income tax liabilities due to the enactment of the U.S. Tax Cuts and Jobs Act in December of 2017, and we were still able to drive a 6% increase in diluted earnings per share in the fourth quarter of 2018, despite this difficult comparison. Our continued growth is the direct result of Team O’Reilly’s dedication to providing unsurpassed levels of service to our customers, and I would like to thank our over 78,000 Team Members for their hard work and commitment to our long-term success.”
Sales for the fourth quarter ended December 31, 2018, increased $124 million, or 6%, to $2.31 billion from $2.19 billion for the same period one year ago. Gross profit for the fourth quarter increased to $1.23 billion (or 53.3% of sales) from $1.16 billion (or 52.9% of sales) for the same period one year ago, representing an increase of 6%. Selling, general and administrative expenses (“SG&A”) for the fourth quarter increased to $806 million (or 34.8% of sales) from $756 million (or 34.5% of sales) for the same period one year ago, representing an increase of 7%. Operating income for the fourth quarter increased to $428 million (or 18.5% of sales) from $403 million (or 18.4% of sales) for the same period one year ago, representing an increase of 6%.
Net income for the fourth quarter ended December 31, 2018, decreased $2 million, or 1%, to $300 million (or 13.0% of sales) from $302 million (or 13.8% of sales) for the same period one year ago. Diluted earnings per common share for the fourth quarter increased 6% to $3.72 on 81 million shares versus $3.52 on 86 million shares for the same period one year ago. The U.S. Tax Cuts and Jobs Act, enacted in December 2017, significantly reduced the federal corporate income tax rate and required the Company to revalue its deferred income tax liabilities based on the lower enacted federal corporate income tax rate. The Company’s Net Income for the fourth quarter ended December 31, 2017, included a one-time $53 million benefit related to the initial revaluation of its deferred income tax liabilities, and the Company’s fourth quarter ended December 31, 2017, diluted earnings per common share of $3.52 included a $0.62 benefit from the revaluation.
The following information was filed by O Reilly Automotive Inc (ORLY) on Wednesday, February 6, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.