Item 6. Selected Financial Data

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Item 6. Selected Financial Data

The table below compares O’Reilly Automotive, Inc.’s (the “Company”) selected financial data over a ten-year period.

Years ended December 31,2017201620152014201320122011201020092008
(In thousands, except per share, Team Members, stores and ratio data)
INCOME STATEMENT DATA:
Sales ($)8,977,7268,593,0967,966,6747,216,0816,649,2376,182,1845,788,8165,397,5254,847,0623,576,553
Cost of goods sold, including warehouse and distribution expenses4,257,0434,084,0853,804,0313,507,1803,280,2363,084,7662,951,4672,776,5332,520,5341,948,627
Gross profit4,720,6834,509,0114,162,6433,708,9013,369,0013,097,4182,837,3492,620,9922,326,5281,627,926
Selling, general and administrative expenses2,995,2832,809,8052,648,6222,438,5272,265,5162,120,0251,973,3811,887,3161,788,9091,292,309
Former CSK officer clawback——————(2,798)———
Legacy CSK Department of Justice investigation charge———————20,900——
Operating income1,725,4001,699,2061,514,0211,270,3741,103,485977,393866,766712,776537,619335,617
Write-off of asset-based revolving credit agreement debt issuance costs——————(21,626)———
Termination of interest rate swap agreements——————(4,237)———
Gain on settlement of note receivable———————11,639——
Other income (expense), net(87,596)(62,015)(53,655)(48,192)(44,543)(35,872)(25,130)(35,042)(40,721)(33,085)
Total other income (expense)(87,596)(62,015)(53,655)(48,192)(44,543)(35,872)(50,993)(23,403)(40,721)(33,085)
Income before income taxes1,637,8041,637,1911,460,3661,222,1821,058,942941,521815,773689,373496,898302,532
Provision for income taxes (a)(b)504,000599,500529,150444,000388,650355,775308,100270,000189,400116,300
Net income ($) (a)(b)1,133,8041,037,691931,216778,182670,292585,746507,673419,373307,498186,232
Basic earnings per common share:
Earnings per share – basic ($)12.8210.879.327.466.144.833.773.022.261.50
Weighted-average common shares outstanding – basic88,42695,44799,965104,262109,244121,182134,667138,654136,230124,526
Earnings per common share -assuming dilution: (a)(b)
Earnings per share – assuming dilution ($)12.6710.739.177.346.034.753.712.952.231.48
Weighted-average common shares outstanding – assuming dilution89,50296,720101,514106,041111,101123,314136,983141,992137,882125,413
SELECTED OPERATING DATA:
Number of Team Members at year end75,55274,58071,62167,56961,90953,06349,32446,85844,88040,735
Number of stores at year end (c)5,0194,8294,5714,3664,1663,9763,7403,5703,4213,285
Total store square footage at year end (d)36,68535,12333,14831,59130,07728,62826,53025,31524,20023,205
Sales per weighted-average store (e)($)1,8071,8261,7691,6781,6141,5901,5661,5271,4241,379
Sales per weighted-average square foot (d)(f)($)248251244232224224221216202201
Percentage increase in comparable store sales (g)(h)1.4%4.8%7.5%6.0%4.6%3.5%4.6%8.8%4.8%1.3%
Years ended December 31,2017201620152014201320122011201020092008
(In thousands, except per share, Team Members, stores and ratio data)
SELECT BALANCE SHEET AND CASH FLOW DATA:
Working capital (i)($)(249,694)(142,674)(36,372)252,082430,832478,0931,028,3301,029,861900,857749,276
Total assets (i)($)7,571,8857,404,1896,676,6846,532,0836,057,8955,741,2415,494,1745,031,9504,695,5364,551,586
Inventory turnover (j)1.41.51.51.41.41.41.51.41.41.6
Accounts payable to inventory (k)106.0%105.7%99.1%94.6%86.6%84.7%64.4%44.3%42.8%46.9%
Current portion of long-term debt and short-term debt ($)———25672226621,431106,7088,131
Long-term debt, less current portion (i)($)2,978,3901,887,0191,390,0181,388,3971,386,8281,087,789790,585357,273684,040724,564
Shareholders’ equity ($) (a)653,0461,627,1361,961,3142,018,4181,966,3212,108,3072,844,8513,209,6852,685,8652,282,218
Capital expenditures ($)465,940476,344414,020429,987395,881300,719328,319365,419414,779341,679
Free cash flow (l)(m)($)889,059978,375868,390760,443512,145950,836790,672338,268(129,579)(43,137)
(a)During the year ended December 31, 2017, the Company adopted a new accounting standard that requires excess tax benefits related to share-based compensation payments to be recorded through the income statement. In compliance with the standard, the Company did not restate prior period amounts to conform to current period presentation. The Company recorded a cumulative effect adjustment to opening retained earnings, due to the adoption of the new accounting standard. See Note 1 “Summary of Significant Accounting Policies” to the Consolidated Financial Statements of this annual report on Form 10-K for more information.
(b)Following the enactment of the U.S. Tax Cuts and Jobs Act in December of 2017, the Company revalued its deferred income tax liabilities, which resulted in a one-time benefit to the Company’s Consolidated Statement of Income for the year ended December 31, 2017. See Note 12 “Income Taxes” to the Consolidated Financial Statements of this annual report on Form 10-K for more information.
(c)In 2008, 2012, and 2016, the Company acquired CSK Auto Corporation (“CSK”), and materially all assets of VIP Parts, Tires & Service (“VIP”) and Bond Auto Parts (“Bond”), respectively. The 2008 CSK acquisition added 1,342 stores, the 2012 VIP acquisition added 56 stores, and the 2016 Bond acquisition added 48 stores to the O’Reilly store count. Financial results for these acquired companies have been included in the Company’s consolidated financial statements from the dates of the acquisitions forward.
(d)Total square footage includes normal selling, office, stockroom and receiving space.
(e)Sales per weighted-average store are weighted to consider the approximate dates of store openings, acquisitions or closures.
(f)Sales per weighted-average square foot are weighted to consider the approximate dates of store openings, acquisitions, expansions or closures.
(g)Comparable store sales are calculated based on the change in sales of stores open at least one year and excludes sales of specialty machinery, sales to independent parts stores, sales to Team Members, sales from Leap Day during the years ended December 31, 2016, 2012 and 2008, and sales during the one to two week period certain CSK branded stores were closed for conversion.
(h)Comparable store sales for 2008 include sales for stores acquired in the CSK acquisition. Comparable store sales for stores operating on O’Reilly systems open at least one year increased 2.4% for the year ended December 31, 2008. Comparable store sales for stores operating on the legacy CSK system open at least one year decreased 1.7% for the portion of CSK’s sales in 2008 since the July 11, 2008, acquisition.
(i)Certain prior period amounts have been reclassified to conform to current period presentation, due to the Company’s adoption of new accounting standards during the fourth quarter ended December 31, 2015. See Note 1 “Summary of Significant Accounting Policies” to the Consolidated Financial Statements of the annual report on Form 10-K for the year ended December 31, 2015.
(j)Inventory turnover is 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.
(k)Accounts payable to inventory is calculated as accounts payable divided by inventory.
(l)Free cash flow is calculated as net cash provided by operating activities less capital expenditures and excess tax benefit from share-based compensation payments for the period.
(m)Certain prior period amounts have been reclassified to conform to current period presentation, due to the Company's adoption of new accounting standard during the first quarter ended March 31, 2017. See Note 1 “Summary of Significant Accounting Policies” to the Consolidated Financial Statements of this annual report on Form 10-K for more information.

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