O'Reilly Automotive Reports Record Earnings And Expansion
By Anna Rose Welch, Editorial & Community Director, Advancing RNA
Strong fiscal year-to-date results keep company on track with expansion goals
O’Reilly Automotive has announced record revenues for its third quarter ending September 30th. The company saw an 8 percent ($126 million) increase in sales to $1.73 billion. This is up from Q3’12, when company sales amounted to $1.6 billion. Net income increased $27 million, or 17 percent, to $186 million.
Year-to-date financial results also reveal positive growth, with sales increasing 7 percent — $334 million — to $5.03 billion, up from $4.69 billion in the first nine months of 2012. The company earned a net income of $518 million for the first nine months, an increase of $65 million (14 percent) from $453 million in 2012.
Comparable store sales increased in both Q3 and year-to-date results. Q3 saw an increase of 4.6 percent versus 1.3 percent for Q3’12, while comparable stores sales for the first nine months rose 3.9 percent, a slight increase from 3.7 percent in 2012.
Expansion Through Acquisition And New Markets
In the past year, the company made several key expansions, which drove the company’s profit growth. In January, O’Reilly began its aggressive expansion into Florida by opening its 4,000th store. Company spokesman, Mark Merz, had high expectations that Florida would provide O’Reilly with significant growth opportunities. The state has a large population with a large number of cars, making the state an important market for the company. The company is initially testing the waters in Florida with 25 new stores, but plans to add up to 350 new stores in the Sunshine State.
In addition to a burgeoning market in Florida, the company entered the New England region through its acquisition of Maine-based VIP Parts, Tires & Service at the end of December 2012. Through this acquisition, O’Reilly’s added 56 retail stores in Maine, New Hampshire, and Massachusetts, along with several distribution centers that will enable the company to expand farther into New England and other northeastern markets, such as New York State.
The company doesn’t plan to stop there, however. CEO and president, Greg Henslee, says the company is well on its way to opening 190 net, new stores in 2013, and plans to continue expanding in 2014 with the addition of 200 additional stores. The company will also be relocating one of its distribution centers from Lewiston, ME to Devens, MA in the second half of 2014. This distribution center will service 280 stores and support existing businesses as well as the company’s growth in New England. Previously announced distribution centers in Florida and Chicago will be opening in 2014 as well, helping streamline business as the company continues growing.
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