O Reilly Automotive (ORLY) has reported 4.59 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $278.49 million, or $2.90 a share in the quarter, compared with $266.27 million, or $2.64 a share for the same period last year. Revenue during the quarter grew 6.77 percent to $2,220.96 million from $2,080.20 million in the previous year period. Gross margin for the quarter expanded 32 basis points over the previous year period to 52.68 percent. Total expenses were 79.84 percent of quarterly revenues, down from 80.04 percent for the same period last year. This has led to an improvement of 20 basis points in operating margin to 20.16 percent.
Operating income for the quarter was $447.81 million, compared with $415.26 million in the previous year period.
OReillys president and chief executive officer, Greg Henslee commented, "We are proud to report another very profitable quarter, highlighted by a record 20.2% operating margin and a comparable store sales increase of 4.2%, which was on top of our very strong 7.9% comparable store sales results from our third quarter last year. Team OReillys relentless focus on providing consistent, excellent customer service drove our top-line performance, and our unwavering commitment to profitable growth translated this growth into third quarter diluted earnings per share of $2.90, which exceeded the top end of our guidance for the quarter. As a reminder, our third quarter 2015 diluted earnings per share results of $2.64 included a larger than typical tax benefit of approximately $0.11 from the resolution of certain historical tax positions. I would like to take this opportunity to thank each of our over 74,000 Team Members for their continued hard work and dedication to providing unsurpassed levels of service to our customers and for their many contributions to our ongoing success."
O Reilly Automotive expects revenue to be in the range of $8,500 million to $8,600 million for financial year 2016. The company projects diluted earnings per share to be in the range of $2.44 to $2.54 for the fourth-quarter. For financial year 2016, the company projects diluted earnings per share to be in the range of $10.58 to $10.68.
Operating cash flow improvesO Reilly Automotive has generated cash of $1,168.02 million from operating activities during the nine month period, up 9.91 percent or $105.30 million, when compared with the last year period. The company has spent $352.70 million cash to meet investing activities during the nine month period as against cash outgo of $291.25 million in the last year period. It has incurred net capital expenditure of $353.74 million on net basis during the nine month period, up 20.21 percent or $59.47 million from year ago period.
The company has spent $371.30 million cash to carry out financing activities during the nine month period as against cash outgo of $745.12 million in the last year period.
Cash and cash equivalents stood at $560.32 million as on Sep. 30, 2016, up 102.34 percent or $283.40 million from $276.92 million on Sep. 30, 2015.
Debt increases substantially
O Reilly Automotive has witnessed an increase in total debt over the last one year. It stood at $1,886.50 million as on Sep. 30, 2016, up 35.76 percent or $496.89 million from $1,389.61 million on Sep. 30, 2015. O Reilly Automotive has witnessed an increase in long-term debt over the last one year. Total debt was 25.08 percent of total assets as on Sep. 30, 2016, compared with 20.51 percent on Sep. 30, 2015. Debt to equity ratio was at 0.99 as on Sep. 30, 2016, up from 0.69 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 23.94 for the quarter from 29.05 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
