First quarter comparable store sales growth of 3.4%
11% increase in first quarter diluted earnings per share to $9.20
Completed the acquisition of Groupe Del Vasto in January
SPRINGFIELD, Mo., April 24, 2024 (GLOBE NEWSWIRE) -- O’Reilly Automotive, Inc. (the “Company” or “O’Reilly”) (Nasdaq: ORLY), a leading retailer in the automotive aftermarket industry, today announced record revenue and earnings for its first quarter ended March 31, 2024.
1st Quarter Financial Results
Brad Beckham, O’Reilly’s CEO, commented, “We are pleased to report a solid start to 2024, highlighted by a 3.4% comparable store sales increase, which was on top of the very strong 10.8% comparable store sales increase from the first quarter last year. Our comparable store sales increase was comprised of solid growth in both professional and DIY, which grew mid-single digit and low-single digit, respectively, in the quarter. Our team’s continued strong execution drove an 11% increase in diluted earnings per share, and is a clear demonstration of Team O’Reilly’s commitment to our culture values of hard work and excellent customer service. I would like to thank each of our over 90,000 Team Members for their ongoing dedication to O’Reilly’s success.”
Sales for the first quarter ended March 31, 2024, increased $268 million, or 7%, to $3.98 billion from $3.71 billion for the same period one year ago. Gross profit for the first quarter increased 8% to $2.03 billion (or 51.2% of sales) from $1.89 billion (or 51.0% of sales) for the same period one year ago. Selling, general and administrative expenses for the first quarter increased 9% to $1.28 billion (or 32.2% of sales) from $1.17 billion (or 31.7% of sales) for the same period one year ago. Operating income for the first quarter increased 5% to $752 million (or 18.9% of sales) from $717 million (or 19.3% of sales) for the same period one year ago.
Net income for the first quarter ended March 31, 2024, increased $30 million, or 6%, to $547 million (or 13.8% of sales) from $517 million (or 13.9% of sales) for the same period one year ago. Diluted earnings per common share for the first quarter increased 11% to $9.20 on 59 million shares versus $8.28 on 62 million shares for the same period one year ago.
Mr. Beckham concluded, “During the first quarter, we opened 37 stores across 20 U.S. states and Mexico and continue to be extremely pleased with the performance of our new stores. Additionally, we began operating 23 stores in Canada after closing on the acquisition of Vast Auto in January. With the talented and experienced Vast Auto team now officially a part of Team O’Reilly, we are very pleased with the early momentum we have generated in Canada. We remain excited about the future opportunities we have before us in the Canadian market and throughout North America and look forward to growing our market share in new and existing markets as the industry leader in excellent customer service.”
1st Quarter Comparable Store Sales Results
Comparable store sales are calculated based on the change in sales for U.S. stores open at least one year and exclude sales of specialty machinery, sales to independent parts stores, and sales to Team Members, as well as sales from Leap Day in the three months ended March 31, 2024. Online sales for ship-to-home orders and pick-up-in-store orders for U.S. stores open at least one year are included in the comparable store sales calculation. Comparable store sales increased 3.4% for the first quarter ended March 31, 2024, on top of 10.8% for the same period one year ago.
Share Repurchase Program
During the first quarter ended March 31, 2024, the Company repurchased 0.3 million shares of its common stock, at an average price per share of $1,029.24, for a total investment of $270 million. Excise tax on shares repurchased, assessed at one percent of the fair market value of shares repurchased, was $2.7 million for the three months ended March 31, 2024. Subsequent to the end of the first quarter and through the date of this release, the Company repurchased an additional 0.1 million shares of its common stock, at an average price per share of $1,102.00, for a total investment of $79 million. The Company has repurchased a total of 94.4 million shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through the date of this release, at an average price of $249.17, for a total aggregate investment of $23.53 billion. As of the date of this release, the Company had approximately $2.22 billion remaining under its current share repurchase authorizations.
Updated Full-Year 2024 Guidance
The table below outlines the Company’s updated guidance for selected full-year 2024 financial data:
For the Year Ending
December 31, 2024
Net, new store openings
190 to 200
Comparable store sales
3.0% to 5.0%
Total revenue
$16.8 billion to $17.1 billion
Gross profit as a percentage of sales
51.0% to 51.5%
Operating income as a percentage of sales
19.7% to 20.2%
Effective income tax rate
22.4%
Diluted earnings per share (1)
$41.35 to $41.85
Net cash provided by operating activities
$2.7 billion to $3.1 billion
Capital expenditures
$900 million to $1.0 billion
Free cash flow (2)
$1.8 billion to $2.1 billion
(1)
Weighted-average shares outstanding, assuming dilution, used in the denominator of this calculation, includes share repurchases made by the Company through the date of this release.
(2)
Free cash flow is a non-GAAP financial measure. The table below reconciles Free cash flow guidance to Net cash provided by operating activities guidance, the most directly comparable GAAP financial measure:
For the Year Ending
(in millions)
December 31, 2024
Net cash provided by operating activities
$
2,715
to
$
3,125
Less:
Capital expenditures
900
to
1,000
Excess tax benefit from share-based compensation payments
15
to
25
Free cash flow
$
1,800
to
$
2,100
Non-GAAP Information
This release contains certain financial information not derived in accordance with United States generally accepted accounting principles (“GAAP”). These items include adjusted debt to earnings before interest, taxes, depreciation, amortization, share-based compensation, and rent (“EBITDAR”) and free cash flow. The Company does not, nor does it suggest investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information. The Company believes that the presentation of adjusted debt to EBITDAR and free cash flow provide meaningful supplemental information to both management and investors that is indicative of the Company’s core operations. The Company has included a reconciliation of this additional information to the most comparable GAAP measure in the table above and the selected financial information below.
Earnings Conference Call Information
The Company will host a conference call on Thursday, April 25, 2024, at 10:00 a.m. Central Time to discuss its results as well as future expectations. Investors may listen to the conference call live on the Company’s website at www.OReillyAuto.com by clicking on “Investor Relations” and then “News Room.” Interested analysts are invited to join the call. The dial-in number for the call is (888) 506-0062 and the conference call identification number is 193896. A replay of the conference call will be available on the Company’s website through Thursday, April 24, 2025.
About O’Reilly Automotive, Inc.
O’Reilly Automotive, Inc. was founded in 1957 by the O’Reilly family and is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, serving both the do-it-yourself and professional service provider markets. Visit the Company’s website at www.OReillyAuto.com for additional information about O’Reilly, including access to online shopping and current promotions, store locations, hours and services, employment opportunities, and other programs. As of March 31, 2024, the Company operated 6,217 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada.
Forward-Looking Statements
The Company claims 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 press release 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; consumer debt levels; product demand; a public health crisis; the market for auto parts; competition; weather; tariffs; availability of key products and supply chain disruptions; business interruptions, including terrorist activities, war and the threat of war; failure to protect our brand and reputation; challenges in international markets; volatility of the market price of our common stock; our increased debt levels; credit ratings on public debt; damage, failure, or interruption of information technology systems, including information security and cyber-attacks; historical growth rate sustainability; our ability to hire and retain qualified employees; risks associated with the performance of acquired businesses; and governmental regulations. Actual results may materially differ from anticipated results described or implied in these forward-looking statements. Please refer to the “Risk Factors” section of the annual report on Form 10-K for the year ended December 31, 2023, and subsequent Securities and Exchange Commission filings, for additional factors that could materially affect the Company’s financial performance. Forward-looking statements speak only as of the date they were made, and the Company undertakes 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.
For further information contact:
Investor Relations Contacts
Mark Merz (417) 829-5878
Eric Bird (417) 868-4259
Media Contact
Sonya Cox (417) 829-5709
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
March 31, 2024
March 31, 2023
December 31, 2023
(Unaudited)
(Unaudited)
(Note)
Assets
Current assets:
Cash and cash equivalents
$
89,264
$
59,872
$
279,132
Accounts receivable, net
437,821
346,037
375,049
Amounts receivable from suppliers
139,267
128,758
140,443
Inventory
4,805,164
4,543,980
4,658,367
Other current assets
128,181
109,347
105,311
Total current assets
5,599,697
5,187,994
5,558,302
Property and equipment, at cost
8,555,556
7,649,066
8,312,367
Less: accumulated depreciation and amortization
3,360,351
3,090,010
3,275,387
Net property and equipment
5,195,205
4,559,056
5,036,980
Operating lease, right-of-use assets
2,227,783
2,166,646
2,200,554
Goodwill
1,009,857
892,094
897,696
Other assets, net
180,512
167,026
179,463
Total assets
$
14,213,054
$
12,972,816
$
13,872,995
Liabilities and shareholders’ deficit
Current liabilities:
Accounts payable
$
6,117,068
$
6,055,992
$
6,091,700
Self-insurance reserves
130,974
136,723
128,548
Accrued payroll
127,704
111,324
138,122
Accrued benefits and withholdings
174,125
132,022
174,650
Income taxes payable
147,645
117,790
7,860
Current portion of operating lease liabilities
399,245
375,451
389,536
Other current liabilities
791,633
427,006
730,937
Total current liabilities
7,888,394
7,356,308
7,661,353
Long-term debt
5,288,632
4,927,678
5,570,125
Operating lease liabilities, less current portion
1,900,200
1,854,533
1,881,344
Deferred income taxes
321,323
249,903
295,471
Other liabilities
205,703
209,411
203,980
Shareholders’ equity (deficit):
Common stock, $0.01 par value:
Authorized shares – 245,000,000
Issued and outstanding shares –
58,982,123 as of March 31, 2024, and
61,038,936 as of March 31, 2023, and
59,072,792 as of December 31, 2023
590
610
591
Additional paid-in capital
1,410,756
1,305,276
1,352,275
Retained deficit
(2,849,108
)
(2,952,797
)
(3,131,532
)
Accumulated other comprehensive income
46,564
21,894
39,388
Total shareholders’ deficit
(1,391,198
)
(1,625,017
)
(1,739,278
)
Total liabilities and shareholders’ deficit
$
14,213,054
$
12,972,816
$
13,872,995
Note: The balance sheet at December 31, 2023, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements.
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
For the Three Months Ended
March 31,
2024
2023
Sales
$
3,976,240
$
3,707,864
Cost of goods sold, including warehouse and distribution expenses
1,942,068
1,817,535
Gross profit
2,034,172
1,890,329
Selling, general and administrative expenses
1,281,691
1,173,684
Operating income
752,481
716,645
Other income (expense):
Interest expense
(57,148
)
(44,572
)
Interest income
1,656
868
Other, net
3,401
4,479
Total other expense
(52,091
)
(39,225
)
Income before income taxes
700,390
677,420
Provision for income taxes
153,152
160,535
Net income
$
547,238
$
516,885
Earnings per share-basic:
Earnings per share
$
9.27
$
8.36
Weighted-average common shares outstanding – basic
59,017
61,840
Earnings per share-assuming dilution:
Earnings per share
$
9.20
$
8.28
Weighted-average common shares outstanding – assuming dilution
59,454
62,398
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
For the Three Months Ended
March 31,
2024
2023
Operating activities:
Net income
$
547,238
$
516,885
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property, equipment and intangibles
109,648
93,747
Amortization of debt discount and issuance costs
1,593
1,215
Deferred income taxes
2,374
3,393
Share-based compensation programs
7,022
7,435
Other
2,997
29
Changes in operating assets and liabilities:
Accounts receivable
(36,954
)
(2,610
)
Inventory
(92,042
)
(179,481
)
Accounts payable
6,107
172,701
Income taxes payable
140,025
145,441
Other
16,207
(44,991
)
Net cash provided by operating activities
704,215
713,764
Investing activities:
Purchases of property and equipment
(249,240
)
(223,268
)
Proceeds from sale of property and equipment
3,853
2,704
Other, including acquisitions, net of cash acquired
(155,366
)
(956
)
Net cash used in investing activities
(400,753
)
(221,520
)
Financing activities:
Proceeds from borrowings on revolving credit facility
30,000
1,216,000
Payments on revolving credit facility
—
(661,000
)
Net payments of commercial paper
(310,805
)
—
Repurchases of common stock
(270,019
)
(1,111,461
)
Net proceeds from issuance of common stock
57,815
15,146
Other
(569
)
(354
)
Net cash used in financing activities
(493,578
)
(541,669
)
Effect of exchange rate changes on cash
248
714
Net decrease in cash and cash equivalents
(189,868
)
(48,711
)
Cash and cash equivalents at beginning of the period
279,132
108,583
Cash and cash equivalents at end of the period
$
89,264
$
59,872
Supplemental disclosures of cash flow information:
Income taxes paid
$
9,798
$
9,696
Interest paid, net of capitalized interest
34,671
26,531
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(Unaudited)
For the Twelve Months Ended
March 31,
Adjusted Debt to EBITDAR:
2024
2023
(In thousands, except adjusted debt to EBITDAR ratio)
GAAP debt
$
5,288,632
$
4,927,678
Add:
Letters of credit
137,848
116,688
Unamortized discount and debt issuance costs
28,368
27,322
Six-times rent expense
2,587,056
2,404,986
Adjusted debt
$
8,041,904
$
7,476,674
GAAP net income
$
2,376,934
$
2,207,655
Add:
Interest expense
214,244
167,451
Provision for income taxes
650,786
635,159
Depreciation and amortization
424,962
368,757
Share-based compensation expense
27,098
27,360
Rent expense (i)
431,176
400,831
EBITDAR
$
4,125,200
$
3,807,213
Adjusted debt to EBITDAR
1.95
1.96
(i)
The table below outlines the calculation of Rent expense and reconciles Rent expense to Total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the twelve months ended March 31, 2024 and 2023 (in thousands):
For the Twelve Months Ended
March 31,
2024
2023
Total lease cost, per ASC 842
$
510,208
$
476,439
Less:
Variable non-contract operating lease components, related to property taxes and insurance
79,032
75,608
Rent expense
$
431,176
$
400,831
March 31,
2024
2023
Selected Balance Sheet Ratios:
Inventory turnover (1)
1.7
1.7
Average inventory per store (in thousands) (2)
$
773
$
754
Accounts payable to inventory (3)
127.3
%
133.3
%
For the Three Months Ended
March 31,
2024
2023
Reconciliation of Free Cash Flow (in thousands):
Net cash provided by operating activities
$
704,215
$
713,764
Less:
Capital expenditures
249,240
223,268
Excess tax benefit from share-based compensation payments
16,120
4,378
Free cash flow
$
438,855
$
486,118
For the Three Months Ended
March 31,
2024
2023
Revenue Disaggregation (in thousands):
Sales to do-it-yourself customers
$
2,001,986
$
1,918,467
Sales to professional service provider customers
1,869,740
1,711,964
Other sales, sales adjustments, and sales from the acquired Vast Auto stores
104,514
77,433
Total sales
$
3,976,240
$
3,707,864
For the Three Months Ended
For the Twelve Months Ended
March 31,
March 31,
2024
2023
2024
2023
Store Count:
Beginning domestic store count
6,095
5,929
5,986
5,811
New stores opened
36
59
146
179
Stores closed
—
(2
)
(1
)
(4
)
Ending domestic store count
6,131
5,986
6,131
5,986
Beginning Mexico store count
62
42
43
27
New stores opened
1
1
20
16
Ending Mexico store count
63
43
63
43
Beginning Canada store count
—
—
—
—
Stores acquired
23
—
23
—
Ending Canada store count
23
—
23
—
Total ending store count
6,217
6,029
6,217
6,029
For the Three Months Ended
For the Twelve Months Ended
March 31,
March 31,
2024
2023
2024
2023
Store and Team Member Information:
Total employment
90,601
89,125
Square footage (in thousands) (4)
47,143
45,117
Sales per weighted-average square foot (4)(5)
$
82.59
$
81.09
$
341.62
$
328.29
Sales per weighted-average store (in thousands) (4)(6)
$
634
$
611
$
2,601
$
2,467
(1)
Calculated as cost of goods sold for the last 12 months divided by average inventory. Average inventory is calculated as the average of inventory for the trailing four quarters used in determining the denominator.
(2)
Calculated as inventory divided by store count at the end of the reported period.
(3)
Calculated as accounts payable divided by inventory.
(4)
Represents O’Reilly’s U.S. and Puerto Rico operations only.
(5)
Calculated as sales less jobber sales, divided by weighted-average square footage. Weighted-average square footage is determined by weighting store square footage based on the approximate dates of store openings, acquisitions, expansions, or closures.
(6)
Calculated as sales less jobber sales, divided by weighted-average stores. Weighted-average stores is determined by weighting stores based on their approximate dates of openings, acquisitions, or closures.
First quarter comparable store sales growth of 3.4% 11% increase in first quarter diluted earnings per share to $9.20 Completed the acquisition of Groupe Del Vasto in January SPRINGFIELD, Mo., April 24, 2024 (GLOBE NEWSWIRE) -- O’Reilly Automotive, Inc. (the “Company” or “O’Reilly”) (Nasdaq: ORLY), a leading retailer in the automotive aftermarket industry, today announced record revenue and earnings for its first quarter ended March 31, 2024. 1st Quarter Financial Results Brad Beckham, O’Reilly’s CEO, commented, “We are pleased to report a solid start to 2024, highlighted by a 3.4% comparable store sales increase, which was on top of the very strong 10.8% comparable store sales increase from the first quarter last year. Our comparable store sales increase was comprised of solid growth in both professional and DIY, which grew mid-single digit and low-single digit, respectively, in the quarter. Our team’s continued strong execution drove an 11% increase in diluted earnings per share, and is a clear demonstration of Team O’Reilly’s commitment to our culture values of hard work and excellent customer service. I would like to thank each of our over 90,000 Team Members for their ongoing dedication to O’Reilly’s success.” Sales for the first quarter ended March 31, 2024, increased $268 million, or 7%, to $3.98 billion from $3.71 billion for the same period one year ago. Gross profit for the first quarter increased 8% to $2.03 billion (or 51.2% of sales) from $1.89 billion (or 51.0% of sales) for the same period one year ago. Selling, general and administrative expenses for the first quarter increased 9% to $1.28 billion (or 32.2% of sales) from $1.17 billion (or 31.7% of sales) for the same period one year ago. Operating income for the first quarter increased 5% to $752 million (or 18.9% of sales) from $717 million (or 19.3% of sales) for the same period one year ago. Net income for the first quarter ended March 31, 2024, increased $30 million, or 6%, to $547 million (or 13.8% of sales) from $517 million (or 13.9% of sales) for the same period one year ago. Diluted earnings per common share for the first quarter increased 11% to $9.20 on 59 million shares versus $8.28 on 62 million shares for the same period one year ago. Mr. Beckham concluded, “During the first quarter, we opened 37 stores across 20 U.S. states and Mexico and continue to be extremely pleased with the performance of our new stores. Additionally, we began operating 23 stores in Canada after closing on the acquisition of Vast Auto in January. With the talented and experienced Vast Auto team now officially a part of Team O’Reilly, we are very pleased with the early momentum we have generated in Canada. We remain excited about the future opportunities we have before us in the Canadian market and throughout North America and look forward to growing our market share in new and existing markets as the industry leader in excellent customer service.” 1st Quarter Comparable Store Sales Results Comparable store sales are calculated based on the change in sales for U.S. stores open at least one year and exclude sales of specialty machinery, sales to independent parts stores, and sales to Team Members, as well as sales from Leap Day in the three months ended March 31, 2024. Online sales for ship-to-home orders and pick-up-in-store orders for U.S. stores open at least one year are included in the comparable store sales calculation. Comparable store sales increased 3.4% for the first quarter ended March 31, 2024, on top of 10.8% for the same period one year ago. Share Repurchase Program During the first quarter ended March 31, 2024, the Company repurchased 0.3 million shares of its common stock, at an average price per share of $1,029.24, for a total investment of $270 million. Excise tax on shares repurchased, assessed at one percent of the fair market value of shares repurchased, was $2.7 million for the three months ended March 31, 2024. Subsequent to the end of the first quarter and through the date of this release, the Company repurchased an additional 0.1 million shares of its common stock, at an average price per share of $1,102.00, for a total investment of $79 million. The Company has repurchased a total of 94.4 million shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through the date of this release, at an average price of $249.17, for a total aggregate investment of $23.53 billion. As of the date of this release, the Company had approximately $2.22 billion remaining under its current share repurchase authorizations. Updated Full-Year 2024 Guidance The table below outlines the Company’s updated guidance for selected full-year 2024 financial data: For the Year Ending December 31, 2024 Net, new store openings 190 to 200 Comparable store sales 3.0% to 5.0% Total revenue $16.8 billion to $17.1 billion Gross profit as a percentage of sales 51.0% to 51.5% Operating income as a percentage of sales 19.7% to 20.2% Effective income tax rate 22.4% Diluted earnings per share (1) $41.35 to $41.85 Net cash provided by operating activities $2.7 billion to $3.1 billion Capital expenditures $900 million to $1.0 billion Free cash flow (2) $1.8 billion to $2.1 billion (1) Weighted-average shares outstanding, assuming dilution, used in the denominator of this calculation, includes share repurchases made by the Company through the date of this release. (2) Free cash flow is a non-GAAP financial measure. The table below reconciles Free cash flow guidance to Net cash provided by operating activities guidance, the most directly comparable GAAP financial measure: For the Year Ending (in millions) December 31, 2024 Net cash provided by operating activities $ 2,715 to $ 3,125 Less: Capital expenditures 900 to 1,000 Excess tax benefit from share-based compensation payments 15 to 25 Free cash flow $ 1,800 to $ 2,100 Non-GAAP Information This release contains certain financial information not derived in accordance with United States generally accepted accounting principles (“GAAP”). These items include adjusted debt to earnings before interest, taxes, depreciation, amortization, share-based compensation, and rent (“EBITDAR”) and free cash flow. The Company does not, nor does it suggest investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information. The Company believes that the presentation of adjusted debt to EBITDAR and free cash flow provide meaningful supplemental information to both management and investors that is indicative of the Company’s core operations. The Company has included a reconciliation of this additional information to the most comparable GAAP measure in the table above and the selected financial information below. Earnings Conference Call Information The Company will host a conference call on Thursday, April 25, 2024, at 10:00 a.m. Central Time to discuss its results as well as future expectations. Investors may listen to the conference call live on the Company’s website at www.OReillyAuto.com by clicking on “Investor Relations” and then “News Room.” Interested analysts are invited to join the call. The dial-in number for the call is (888) 506-0062 and the conference call identification number is 193896. A replay of the conference call will be available on the Company’s website through Thursday, April 24, 2025. About O’Reilly Automotive, Inc. O’Reilly Automotive, Inc. was founded in 1957 by the O’Reilly family and is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, serving both the do-it-yourself and professional service provider markets. Visit the Company’s website at www.OReillyAuto.com for additional information about O’Reilly, including access to online shopping and current promotions, store locations, hours and services, employment opportunities, and other programs. As of March 31, 2024, the Company operated 6,217 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada. Forward-Looking Statements The Company claims 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 press release 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; consumer debt levels; product demand; a public health crisis; the market for auto parts; competition; weather; tariffs; availability of key products and supply chain disruptions; business interruptions, including terrorist activities, war and the threat of war; failure to protect our brand and reputation; challenges in international markets; volatility of the market price of our common stock; our increased debt levels; credit ratings on public debt; damage, failure, or interruption of information technology systems, including information security and cyber-attacks; historical growth rate sustainability; our ability to hire and retain qualified employees; risks associated with the performance of acquired businesses; and governmental regulations. Actual results may materially differ from anticipated results described or implied in these forward-looking statements. Please refer to the “Risk Factors” section of the annual report on Form 10-K for the year ended December 31, 2023, and subsequent Securities and Exchange Commission filings, for additional factors that could materially affect the Company’s financial performance. Forward-looking statements speak only as of the date they were made, and the Company undertakes 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. For further information contact: Investor Relations Contacts Mark Merz (417) 829-5878 Eric Bird (417) 868-4259 Media Contact Sonya Cox (417) 829-5709 O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) March 31, 2024 March 31, 2023 December 31, 2023 (Unaudited) (Unaudited) (Note) Assets Current assets: Cash and cash equivalents $ 89,264 $ 59,872 $ 279,132 Accounts receivable, net 437,821 346,037 375,049 Amounts receivable from suppliers 139,267 128,758 140,443 Inventory 4,805,164 4,543,980 4,658,367 Other current assets 128,181 109,347 105,311 Total current assets 5,599,697 5,187,994 5,558,302 Property and equipment, at cost 8,555,556 7,649,066 8,312,367 Less: accumulated depreciation and amortization 3,360,351 3,090,010 3,275,387 Net property and equipment 5,195,205 4,559,056 5,036,980 Operating lease, right-of-use assets 2,227,783 2,166,646 2,200,554 Goodwill 1,009,857 892,094 897,696 Other assets, net 180,512 167,026 179,463 Total assets $ 14,213,054 $ 12,972,816 $ 13,872,995 Liabilities and shareholders’ deficit Current liabilities: Accounts payable $ 6,117,068 $ 6,055,992 $ 6,091,700 Self-insurance reserves 130,974 136,723 128,548 Accrued payroll 127,704 111,324 138,122 Accrued benefits and withholdings 174,125 132,022 174,650 Income taxes payable 147,645 117,790 7,860 Current portion of operating lease liabilities 399,245 375,451 389,536 Other current liabilities 791,633 427,006 730,937 Total current liabilities 7,888,394 7,356,308 7,661,353 Long-term debt 5,288,632 4,927,678 5,570,125 Operating lease liabilities, less current portion 1,900,200 1,854,533 1,881,344 Deferred income taxes 321,323 249,903 295,471 Other liabilities 205,703 209,411 203,980 Shareholders’ equity (deficit): Common stock, $0.01 par value: Authorized shares – 245,000,000 Issued and outstanding shares – 58,982,123 as of March 31, 2024, and 61,038,936 as of March 31, 2023, and 59,072,792 as of December 31, 2023 590 610 591 Additional paid-in capital 1,410,756 1,305,276 1,352,275 Retained deficit (2,849,108 ) (2,952,797 ) (3,131,532 ) Accumulated other comprehensive income 46,564 21,894 39,388 Total shareholders’ deficit (1,391,198 ) (1,625,017 ) (1,739,278 ) Total liabilities and shareholders’ deficit $ 14,213,054 $ 12,972,816 $ 13,872,995 Note: The balance sheet at December 31, 2023, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements. O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) For the Three Months Ended March 31, 2024 2023 Sales $ 3,976,240 $ 3,707,864 Cost of goods sold, including warehouse and distribution expenses 1,942,068 1,817,535 Gross profit 2,034,172 1,890,329 Selling, general and administrative expenses 1,281,691 1,173,684 Operating income 752,481 716,645 Other income (expense): Interest expense (57,148 ) (44,572 ) Interest income 1,656 868 Other, net 3,401 4,479 Total other expense (52,091 ) (39,225 ) Income before income taxes 700,390 677,420 Provision for income taxes 153,152 160,535 Net income $ 547,238 $ 516,885 Earnings per share-basic: Earnings per share $ 9.27 $ 8.36 Weighted-average common shares outstanding – basic 59,017 61,840 Earnings per share-assuming dilution: Earnings per share $ 9.20 $ 8.28 Weighted-average common shares outstanding – assuming dilution 59,454 62,398 O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) For the Three Months Ended March 31, 2024 2023 Operating activities: Net income $ 547,238 $ 516,885 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of property, equipment and intangibles 109,648 93,747 Amortization of debt discount and issuance costs 1,593 1,215 Deferred income taxes 2,374 3,393 Share-based compensation programs 7,022 7,435 Other 2,997 29 Changes in operating assets and liabilities: Accounts receivable (36,954 ) (2,610 ) Inventory (92,042 ) (179,481 ) Accounts payable 6,107 172,701 Income taxes payable 140,025 145,441 Other 16,207 (44,991 ) Net cash provided by operating activities 704,215 713,764 Investing activities: Purchases of property and equipment (249,240 ) (223,268 ) Proceeds from sale of property and equipment 3,853 2,704 Other, including acquisitions, net of cash acquired (155,366 ) (956 ) Net cash used in investing activities (400,753 ) (221,520 ) Financing activities: Proceeds from borrowings on revolving credit facility 30,000 1,216,000 Payments on revolving credit facility — (661,000 ) Net payments of commercial paper (310,805 ) — Repurchases of common stock (270,019 ) (1,111,461 ) Net proceeds from issuance of common stock 57,815 15,146 Other (569 ) (354 ) Net cash used in financing activities (493,578 ) (541,669 ) Effect of exchange rate changes on cash 248 714 Net decrease in cash and cash equivalents (189,868 ) (48,711 ) Cash and cash equivalents at beginning of the period 279,132 108,583 Cash and cash equivalents at end of the period $ 89,264 $ 59,872 Supplemental disclosures of cash flow information: Income taxes paid $ 9,798 $ 9,696 Interest paid, net of capitalized interest 34,671 26,531 O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES SELECTED FINANCIAL INFORMATION (Unaudited) For the Twelve Months Ended March 31, Adjusted Debt to EBITDAR: 2024 2023 (In thousands, except adjusted debt to EBITDAR ratio) GAAP debt $ 5,288,632 $ 4,927,678 Add: Letters of credit 137,848 116,688 Unamortized discount and debt issuance costs 28,368 27,322 Six-times rent expense 2,587,056 2,404,986 Adjusted debt $ 8,041,904 $ 7,476,674 GAAP net income $ 2,376,934 $ 2,207,655 Add: Interest expense 214,244 167,451 Provision for income taxes 650,786 635,159 Depreciation and amortization 424,962 368,757 Share-based compensation expense 27,098 27,360 Rent expense (i) 431,176 400,831 EBITDAR $ 4,125,200 $ 3,807,213 Adjusted debt to EBITDAR 1.95 1.96 (i) The table below outlines the calculation of Rent expense and reconciles Rent expense to Total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the twelve months ended March 31, 2024 and 2023 (in thousands): For the Twelve Months Ended March 31, 2024 2023 Total lease cost, per ASC 842 $ 510,208 $ 476,439 Less: Variable non-contract operating lease components, related to property taxes and insurance 79,032 75,608 Rent expense $ 431,176 $ 400,831 March 31, 2024 2023 Selected Balance Sheet Ratios: Inventory turnover (1) 1.7 1.7 Average inventory per store (in thousands) (2) $ 773 $ 754 Accounts payable to inventory (3) 127.3 % 133.3 % For the Three Months Ended March 31, 2024 2023 Reconciliation of Free Cash Flow (in thousands): Net cash provided by operating activities $ 704,215 $ 713,764 Less: Capital expenditures 249,240 223,268 Excess tax benefit from share-based compensation payments 16,120 4,378 Free cash flow $ 438,855 $ 486,118 For the Three Months Ended March 31, 2024 2023 Revenue Disaggregation (in thousands): Sales to do-it-yourself customers $ 2,001,986 $ 1,918,467 Sales to professional service provider customers 1,869,740 1,711,964 Other sales, sales adjustments, and sales from the acquired Vast Auto stores 104,514 77,433 Total sales $ 3,976,240 $ 3,707,864 For the Three Months Ended For the Twelve Months Ended March 31, March 31, 2024 2023 2024 2023 Store Count: Beginning domestic store count 6,095 5,929 5,986 5,811 New stores opened 36 59 146 179 Stores closed — (2 ) (1 ) (4 ) Ending domestic store count 6,131 5,986 6,131 5,986 Beginning Mexico store count 62 42 43 27 New stores opened 1 1 20 16 Ending Mexico store count 63 43 63 43 Beginning Canada store count — — — — Stores acquired 23 — 23 — Ending Canada store count 23 — 23 — Total ending store count 6,217 6,029 6,217 6,029 For the Three Months Ended For the Twelve Months Ended March 31, March 31, 2024 2023 2024 2023 Store and Team Member Information: Total employment 90,601 89,125 Square footage (in thousands) (4) 47,143 45,117 Sales per weighted-average square foot (4)(5) $ 82.59 $ 81.09 $ 341.62 $ 328.29 Sales per weighted-average store (in thousands) (4)(6) $ 634 $ 611 $ 2,601 $ 2,467 (1) Calculated as cost of goods sold for the last 12 months divided by average inventory. Average inventory is calculated as the average of inventory for the trailing four quarters used in determining the denominator. (2) Calculated as inventory divided by store count at the end of the reported period. (3) Calculated as accounts payable divided by inventory. (4) Represents O’Reilly’s U.S. and Puerto Rico operations only. (5) Calculated as sales less jobber sales, divided by weighted-average square footage. Weighted-average square footage is determined by weighting store square footage based on the approximate dates of store openings, acquisitions, expansions, or closures. (6) Calculated as sales less jobber sales, divided by weighted-average stores. Weighted-average stores is determined by weighting stores based on their approximate dates of openings, acquisitions, or closures.